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PHONE (612)423-4411 2875-145th Street West,Rosemount,Minnesota MAYOR
FAX (612)423-5203 � Mailing Address: Edward B.MCMenomy
P.O.Box 510,Rosemount,Minnesota 55068-05t0 COUNCILMEMBERS
Sheila Klassen
TO: Mayor E.B. MCM2ri0ITty �ames(Red)Staats
Councilmembers: Klassen, Staats, Willcox, Wipperma��arryWillcox
n is Wipparmann
ADMINISTRATOR
FROM: Ron Wasmund, Interim City Administrator StephanJilk
DATE: November 5, 1993
RE: 1994 Budget Discussion
On Monday, November S, 1993 at 6.30 p.m. we will resume our
discussions of the 1994 Budget. We have included with this
packet a copy of the budget that was used for establishment of
the preliminary levy. It is our intent to have discussion on the
Capital Improvement (CIP) Budget also. We have provided a list
of 1994 items which have been ranked by Department Heads and
staff. Please bring with you the thick packet of CIP description
sheets .
We are faced with a very tight time schedule to complete the
budget for adoption. The public hearing for comment on the
budget is scheduled for December 2, 1993 at 8 :00 p.m. We have
two meetings set now for November 8th and November 18th. It is
our goal to have the budget ready for adoption in time to present
to you in a packet November 24, 1993 for the December 2, 1993
hearing. If we need to have an additional meeting it will have
to be scheduled during Thanksgiving week. If we do schedule a
meeting on November 22, 23 or 24 it will delay packet delivery
until November 29 .
The packet for the December 2 hearing will include the budgets
for the Utility Commission, Port Authority, and Community Center.
Jim Topitzhofer, Community Center Ma.nager has identified a
revenue shortage which won' t allow the Community Center Budget to
balance. His budget as currently prepared has included $70; 000
transferred from the General Fund for administration of indoor
recreational activities the : fir�t year. In August you authorized
an additional $26, 000 to be tr�nsferred to help balance the first
year start up costs. Jim will be making .a ,presentation on Monday
to request an additional $27,200 to be transferred in an effort
to operate the Community Center Budget with balanced revenues and
expenses. With start up costs and a lack of revenue producing
history for the center Jim has been very conservative with r
estima.tes of income. Next year' s Community Center Budget may be �
easier to prepare because of a one year history of income and
expenses. However we do know that debt payments will be higher
in 1995 . We will not occupy or take ownership for a full year in
1994 so debt paymen�s are prorated.
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1994 Budget Discussion
November 5, 1993
It is reasonable to expect that there will be some need to
support the "Community" Center next year also. Whether these
funds come from general revenues, CIP funds or reserves is the
needed determination. The need to support the Community Center
has an unanticipated effect on the General Operating or CIP funds
if determined to come from there in 1994.
Jeff May, Finance Director will also provide discussion of the
affect of the Preliminary Levy on the city's share of property
taxes based on home values. In this packet, a page titled
"Worksheet for Estima.ting Property Taxes (ISD #196 Figures) " .
this sheet demonstrates the estimated affect on a $68, 000 home to
be a $16 .00 tax increase; $110, 000 home will see a $36 .00
increase; $150, 000 home equals a $54.00 increase; and a $250, 000
home will see a $103 . 00 increase. This effect I've cited is the �
city share of a property tax. These are very modera�e increases.
The CIP Budget is being presented for discussion of your ranking
or prioritization. The total budget as prepared and discussed to
this date provides approximately $219, 633 for CIP items. The
Capital Improvement Project list identifies $1, 723 ,248 worth of
needs. There is obviously not enough money available to fund the
entire needs list.
Department Heads have done a couple of exercises in ranking CIP
items. First, we ranked our own items based upon need. We then
independently ranked the total list comparing individual
department needs to each other, devising the list which is
included in this packet. It provides a good perception of how we
all feel the projects rank in importance. Approximately the top
ten items can be funded. The only identified method of expanding
the fundable list is to consider Equipment Certificates for
certain items .
The general budget as presented has included an assumption of
issuing $220, 000 worth of certificates. This assumption requires
a $50, 000 payment on those certificates. this budget identifies
an ability to handle that debt. If certificates are not used � �
then the $50, 000 marked for payment can be added to the $219, 633
far funding of the CIP list.
In previous discussions with you it has been may perception that
certificates are not a favored option. I would like to review
this further to see if any portion of the equipment such as the �,,,
four squad cars can be considered for certificate issue. '
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1994 Budget Discussion
November 5, 1993
There are two items which are listed in the CIP that can not be
funded by the amount available in 1994 even if only one or the
other were listed as top priority. They were eliminated form the
ranking for that reason and need to be discussed separately. the
two items are:
1. Aerial Fire Truck
2 . 145th Street Reconstruction
We would like to review our rankings with you and get your
concurrence. -
The Operating Budgets have previously been discussed with you in
great detail . There is some fine tuning ,to be done in each
department' s general operating based upon tentative settlement
with all bargaining units . Each will show a slight reduction.
Our true objective is to get your approval of the adjusted
amounts or a consensus of the amount to work within.
Going through each operation budget line by line does not seem to
be the most appropriate use of time in a public meeting. If you
have suggestions for changes I would hope you can identify them
to us from the documents �ou have had for approximately two
months .
In summary, we have a very limited amount of time to make
revisions and complete a budget document to present at the
December 2nd Public Hearing. We feel that the budget we've
presented you contains no frills and requires these funding
levels to provide the level of service to the community
consistent with their desires. We are hopeful you concur or can
provide the direction necessary to complete this budget in an
orderly and expeditious manner.
We look forward to your discussion on Monday night. -
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