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HomeMy WebLinkAbout2. Budget DiscussionCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: JULY 31, 2001 AGENDA ITEM: 2002 Proposed Budget AGENDA SECTION: DISCUSSION PREPARED BY: Thomas D. Burt, City Administrator AGENDA NO. ATTACHMENTS: BUDGET, MEMOe APPROVED BY: /� At this evenings meeting I would recommend the following order of discussion. 1. Additional staffing needs for 2002 (yellow pages). 2. Wage increases for 2002 3. Fire Fighters pension changes. 4. Budget expenditure line item changes. The revenue and CIP will be discussed at the August work session. RECOMMENDED ACTION: COUNCIL ACTION: MEMORANDUM DATE: July 31, 2001 TO: Mayor & City Council FROM: Thomas D. Burt, City Administrator SUBJECT: 2002 Proposed Budget City Council identified a performance goal for 2001 at a zero percent increase as well as to the 2002 budget. As staff prepared their budgets this was the goal, however, to continue with. existing service levels the draft budget as presented reflects budget needs which results in an increase. Line item increases have been made where appropriate to maintain the existing level of service. The greatest increase in the general fund budget is as a result of increases to benefits and wages that attribute approximately $617,000 of the proposed $808,500 increase. In addition, four full - time and one part-time positions are being recommended. They are as follows: Maintenance Worker: This position is being added and the time will be split between parks maintenance and street maintenance. This position is needed to maintain sidewalks as a result of the failed school referendum. Building Inspector: To keep up with development pressures and to assure quality inspections an additional inspector is being requested (see attached memo). The pressures of Evermoor and Bloomfield have increased the workload, originally Evermoor projected a 7 to 10 year build out and their new projection is a 5 to 7 year. Police Officer: To keep up with population growth, an additional officer is being recommended. The position would be filled in July. Building Inspector: To keep up with growth and to maintain quality building inspections a position is being recommended (see attached memo). Part-time Police Receptionist: The volume of work is growing with the population and this position will help in providing better customer service as well as assisting in data entry. Accounting Payable Clerk: Seven years ago Finance had 4 -1/2 people. Even with the addition of a half time person in 2000, the department still has not returned to this level; currently the department has 4 people. These staff numbers have begun to task the department especially when we consider the increased reporting requirements as a result of GASB 34, increased number of accounts payable checks being process, and an increased number of employees on the payroll. In addition, to keep up with growth an additional position is being recommended so that proactive policies and practices can be developed (see attached memo). What makes this year's budget process difficult is we will not be able to finalize revenues until the State provides what the levy limits will be. This information is expected by September I and the preliminary levy must be certified by September 15` ". The following explains why each line item has increased or decreased from 2001. As you review the budget if you have questions please call or if you would like to meet to discuss any part of the budget, please let me know. EXPENDITURES: Council 101 41110 01 103 +$300 Changes to PERA. 101 41110 01 433 +$2,300 League of Minnesota dues increase. 101 41110 01 437 +$500 Increased to closer reflect history and increased cost of conferences. Total Department budget has increased by $3,100 or 3.6 %. Administration 101 41320 01 101 +34,700 Adjusted for salary and insurance increases. 101 41320 01 102 - $1,000 Reduced to reflect history. 101 41320 01 353 +$500 Increased cost of codification services. 101 41320 01 433 +$100 Increase in cost of dues. 101 41320 01 437 +$200 The Advance Clerks school for the City Clerk was added to this line item. Total Department budget has increased by $35,400 or 12.43 %. Elections This is an election year so the budget will increase. In addition, two new precincts will be created to handle population growth. As a result two new voting machines will be acquired, a portion of the cost of the machines will be encumbered in 2001. Total Department budget has increased by $13,000 or 130 %. Finance 101 41520 01 101 +$52,000 101 41520 01 319 +$4,000 101 41520 01 319 Adjusted for salary and insurance increases, in addition a full time position was added as a result of GASB 34 which requires cities to now depreciate all infrastructure and to increase all of it's reporting requirements. Added professional services to assist in GAS1334. 2 +$9,000 Added additional computer network support time to cover increased demand. Total Department budget has increased by $65,200 or 34.90% General Government 101 41810 01 202 +2,000 Increase cost of file storage and closer reflects history. 101 41810 01 203 +400 Increase in copy paper to closer reflects history. 101 41810 01 204 +400 Increase in cost of envelopes. 101 41810 01 301 +10,000 Increase audit cost as a result of GASB34 and the cost of Truth in Taxation process has been budgeted. 101 41810 01 319 - $25,800 $28,000 was transferred into the Fire Department budget, however, $2,000 was added to cover continuing disclosure costs. 101 41810 01 321 +10,600 Increased cost of telephones. 101 41810 01 329 +2,600 The City shares in the cost of a Cable Coordinator who represents the Cities of Apple Valley, Farmington and Rosemount. This increase reflects a cost of our commitment to the Joint Powers Agreement. It is anticipated that Council and Commission meetings will begin broadcasting in 2002. 101 41810 01 580 +600 Increased to closer reflect copy machine leases. Total Department budget has increased by $800 or .27% Community Development 101 41910 01 101 +101,000 Adjusted for salary and insurance increases, in addition a Building inspector has been added. 101 41910 01 103 +4,900 101 41910 01 201 -100 101 41910 01 203 -300 101 41910 01 205 -100 101 41910 01 219 +200 101 41910 01 241 -$100 Adjusted for salary increase and increased hours of part-time secretary. Reflects needs. Reflects needs. Reflects needs. If a new inspector is hired initial supplies are needed. Reflects needs. 3 101 41910 01 433 +200 Increase reflects dues for new inspector to professional organization. 101 41910 01 435 -300 Reflects needs 101 41910 01 437 +600 Increase reflects training for new inspector. 101 41910 01 439 -$100 Reflects needs. Total Department budget has increased by $105,400 or 18.44% Police 101 42110 01 101 +$168,700 Adjusted for salary and insurance increases, in addition a part time receptionist and a Police Officer has been added beginning in mid 2002. In addition, this budget is typically over budget as a result of required training, therefore an additional 40 hours was added to cover this cost. 101 42110 01 102 +3,000 Increased to closer reflect history. 101 42110 01 103 +$10,700 Adjusted for salary increase. 101 42110 01 203 +500 The increase is based on history. The department has standardized forms and has increased use in some areas. 101 42110 01 319 +$3,500 Increases are a result of contract increase for dispatch services with Eagan, a radio repeater line added on the eastside water tower. 101 42110 01 321 -8,500 LOGIS T1 line is now a minimal cost due to the State of Minnesota upgrades to the criminal justice data network and paying the majority of the T1 cost. Cell phone costs have increased due to the additional officer. 101 42110 01 331 +$1,000 Based on history and expected costs in 2002. 101 42110 01 396 +9,000 Increase in LOGIS costs. 101 42110 01 433 +400 City now pays for POST licenses. 101 42110 01 437 +2,000 Added training for new officer. The new gun range at the University now charges to use the facility. Total Department budget has increased by $190,300 or 12.73% 4 Fire 101 42210 01 103 +S53,400 Staff is proposing a new pension/pay system that would now pay the firefighters a per call stipend and their pension would be increased over the next ten years to max the firefighters out on the amount they would receive as pension. Rosemount's current system allows a firefighter to receive a pension of $2,800 per year for each year of service with vesting at 10 years. The proposal would be to bring the firefighters to the maximum of $5,500 and remain at the max as the system is increased in lieu of salary. The rational for this change is if the retirement benefits are increased the hope is the average firefighter will stay with the department longer. The true increase to the overall budget for this benefit is $24,600 since 28,000 was removed from general government. 101 42210 01 208 +$1,100 The increase is to purchase a new digital camera, a drafting table and handheld computer for hazmat information. 101 42210 01 211 +$100 Reflects department needs for 2002. 101 42210 01 219 +$200 Reflects department needs for 2002. 101 42210 01 229 -2,200 Reflects department needs for 2002. 101 42210 01 305 +$800 Reflects department needs for 2002 for annual medical testing. 101 42210 01 306 -$500 Four firefighters will be recruited in 2002. 101 42210 01 308 +$2,500 Reflects department training needs for 2002. 101 42210 01 310 -$200 This line item fluctuates from year to year based on the equipment needing testing. In 2002 three pumpers need to be tested. 101 42210 01 319 +400 The increase is to cover increased fire prevention education. 101 42210 01 331 +2,300 As a result of additional training needs in 2002 the cost of travel to the conferences has also been increased. Total Department budget has increased by $26,200 or 9.14% Public Works Government Buildings 101 41940 01 101 +$1,700 Adjusted for salary and insurance increases. 101 41940 01 381 +$6,000 Increased due to increased rates and the addition to City Hall. 5 101 41940 01 383 +16,000 101 41940 01 401 +$2,000 Increased due to increased rates and the addition to City Hall. Increases are to further repair the MnDot building. Total Department Division budget has increased by $26,200 or 9.14% Fleet Maintenance 101 43100 01 101 +$6,600 Adjusted for salary and insurance increases 1014-3 100 01 102 +$1,000 Increased to reflect history. 101 43100 01 212 +$15,000 Increase in gas price. 101 43100 01 215 +10,000 Increase reflects history of spending needs. 101 43100 01 221 +$5,000 Budget reflects history of spending needs. Total Department Division budget has increased by $37,600or 10.51% Street Maintenance 101 43121 01 101 +$48,100 A maintenance worker was added to the budget to maintain sidewalks for the increased number of children walking to school as a result of the failed school referendum. A portion of the salary also comes from parks. The remaining is adjusted for salary and insurance increases. 101 43121 01 102 +3,000 101 43121 01 103 +1,000 101 43121 01 231 +$10,000 101 43121 01 233 +$2,000 101 43121 01 234 +$3,000 101 43121 01 242 +$1,300 101 43121 01 303 - $10,000 101 43121 01 321 +$800 Increased to reflect history. Increased to reflect history and budget needs. As the city adds roads the amount budgeted for bituminous patching will increase proportionately. Increased cost in dust control materials. Increased cost in materials. Increased safety equipment requirements. Traffic study was removed. Increased needs. 6 101 43121 01 381 Adjusted for salary and insurance increases plus part of a full time +$15,000 Increase in electric rates. 101 43121 01 391 +$2,000 Software support for pavement management program. 101 43121 01 402 maintenance in addition it has been budget closer to what has historically +$30,00 The city has added 3 miles of road annually and has not increased the 101 45202 01 221 amount of seal coating for a number of years. This increase is a start of +$3,000 budgeting what is needed to maintain the streets. On the average every street should be seal coated on a seven years cycle. Staff « continue to recommend that this number increase in the years to come. In addition this includes $? For overlaying the community center parking lot. 101 43121 01407 - $20,000 Street seal coating is budgeted in the CIP using the Safety Kleen money. The new amount budgeted is for sidewalk overlays. This was a priority of the City Council and approximately l .Smiles of trails will be overplayed with these funds. This amount will increase in the future as the City increases the amount of trails. 101 43121 01 408 +$10 Similar to above the city has not kept up with crack filling. If cracks are not repaired in pavement, water gets under the pavement and will cause increased damage. 101 43121 01 409 +$5,000 Increase reflects history and more boulevard trees have been planted over the past few years, which will require maintenance. 101 43121 01 411 +6,000 Increased to reflect history. 101 43121 01 570 - $3,000 Reflects budget needs. Total Department Division budget has increased by $103,900 or 13.16% Parks Maintenance 101 45202 01 101 +37,000 Adjusted for salary and insurance increases plus part of a full time maintenance worker is allocated to this budget. 101 45202 01 216 +$5,000 Because additional parks have been added more chemicals are need for maintenance in addition it has been budget closer to what has historically been spent. 101 45202 01 221 +$3,000 As the park shelters get older additional maintenance is required in addition this increase closer reflects the history of what the cost of maintenance are. 7 101 45202 01 223 +$2,000 Similar to above this item has increased. 101 45202 01 229 +$1,000 Increased to reflect history and needs. 101 45202 01 241 +$500 Increased to reflect history and needs. 101 45202 01 381 +$2,000 Increase due to increases in electrical cost. 101 45202 01 383 +3,000 In error this was not budgeted last year. The cost reflects history and increases in natural gas prices. 101 45202 01 416 +$2,000 Mower leases were renewed and increased. Total Department Division budget has increased by $55,500 or 15.10% Park & Recreation 101 45100 01 101 +$66,700 Adjusted for salary and insurance increases. 101 45100 01 103 +$12,300 Adjusted for salary increases. 101 45100 01 211 +$1,000 Increase to reflect history. 101 45100 01 312 +$1,100 Increase in contract amount for contract cleaning. 101 45100 01 315 +$3,400 Increase in supply costs for special programs. Added events as a result of the band shell. 101 45100 01 321 +$1,500 The department will be adding additional phones. 101 45100 01 331 +$300 As a result of increase training there will be added travel cost. 101 45100 01 381 +$6,000 Increased as a result of higher utility rates. 101 45100 01 383 +$15,600 Increased as a result of higher utility rates. 101 45100 01 415 +$2,700 As a result of the increased number of parks more portable toilets need to be rented. 101 45100 01 437 +$1,500 Increased need for staff training. Total Department budget has increased by $114,200 or 15.43% 8 REVENUE As a result of changes at the State, they have now made cities even more dependant on property tax. In the last session they eliminated Homestead & Agriculture Credit Aid (HACA), which resulted in a $577,707 reduction in State aid. The State did role this amount into the City's property tax base however; it will appear as a large increase. With minor increases to other revenues the 2002 budget becomes what the City Council is comfortable as an increase. The budget before you represents staffs request to continue and maintain quality services to the residents. The estimate from the state is the reduction of local school property tax will be approximately $3,000,000. With this reduction most residents will see a reduction on the tax statements regardless of what all other agencies do.