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HomeMy WebLinkAbout2009 11-07 City Council Manager Workshop PacketAGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:30 P.M. Monday, November 9, 2009 Council Chambers, City Hall A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS 1. 2010 Budget a. Presentation Of 2010 Budget Document b. Discussion On Budget Revisions E. NEW BUSINESS F. ADJOURNMENT Work Session Agenda Item D1 AGENDA REPORT TO: City Manager, Jim Antonen FROM: Robert Mittet, Finance Director Charles Ahl, Assistant City Manager SUBJECT: City Council — Manager Work Session Meeting Topic: 2010 Budget — a) Presentations of 2010 Budget Document b) Discussion on Budget Revisions DATE: October 21, 2009 INTRODUCTION /BACKGROUND The 2010 Budget discussion will continue on Monday, November 9 th at 5:30 pm. The purpose of this meeting is for Finance Director Bob Mittet to present the various programs within the entire budget document and summarize the proposed budget. It is requested that the City Council review the final document for consideration and discussion. A copy of the draft budget is attached. During the past six weeks, the City Council has received presentations from the various department heads on the highlights of the proposed programs within their various departments. Within the various programs are detailed program expenditures with the following categories: 2010 Guideline: under this scenario, each Department Head was required to submit a budget at 98% of the 2009 allocation for that department, less reductions in personnel for vacant positions. In some circumstances, programs were decreased more than 98% of the 2009 budget, while the Department Head did have discretion to increase a program while decreasing a separate program by the corresponding amount, such that the overall department allocation was held at or less than 98% of the 2009 budget. This approach was used to develop the zero levy option and expenses under this category would be consistent if there is a zero levy increase. 2010 Dept Request: under this scenario, each Department Head was asked to prepare a budget request for needs within the various programs, but was given instructions that no increase could exceed 105% of the 2009 Budget. 2010 MGR Recommend: this is the final budget allocation recommended by the City Manager based upon the Council's selected maximum levy increase of 5.0 %. The City Manager, working with the Department Heads, increased a number of programs based upon the list of Unmet Needs that were provided to the Council during the discussion of the maximum levy. The highlights from the various programs are: Police: It is proposed to keep the department at full force of 55 sworn officers. The 2010 Guideline would have resulted in two vacancies not being filled, along with the reductions in animal control services. With the 2010 MGR Recommended budget, these two positions are filled and the animal control services continue as provided in 2009. The Police Department operations should remain consistent with 2009, except the replacement of squad cars in 2010, which will be limited to three vehicles, while the overall need is 4 -6 replacements. The Police Department budget is proposed to be increased by 2.8% or $212,910. Fire: It is proposed to expand the department by two firefighter /paramedic officers. This should assist with the continued growing demand within the ambulance and fire services provided within the department. This is an expansion of service compared to 2009. The FireDepartment budget is proposed to increase by 1.0% or $41,380. Packet Page Number 2 of 4 2010 BUDGET PAGE TWO • Public Works: The Public Works budget is proposed to be reduced by 1.6% in 2010. Three vacant positions within Park Maintenance, Street Maintenance and Building Maintenance will remain vacant during 2010. A fourth vacancy will be filled in street maintenance. Additional capital replacement funding of $60,000 has been provided for park equipment and park infrastructure. The reduction in Public Works funding is $163,940. • Community Development — Parks: The Community Development — Parks Department is proposed to be reduced by 0.3% or $7,030. The original guideline budget for this department was significantly reduced due to some high profile position personnel retiring at the end of 2009. These positions would have remained vacant under the guideline budget where there was no increase, however, the Manager Recommended budget provided the replacement of a Park Manager position and administrative staff dedicated to the management of parks. Additional discussions will occur in 2010 about the possible creation of a Parks and Recreation Department that is separate from the Community Development Department. • Administration 1 Executive: These programs are proposed to be reduced by 1.7% or $17,800. All of the reductions in this area involve reduced expenses being budgeted for judgments and claims. • Legislative: These programs are proposed to be reduced by 2.8% or $5,512. All the reductions in these programs are due to reduced funding for Charitable Gambling. • Information Technology Department: This program is proposed to be reduced by 2.9% or $22,080. The savings in this program is due to the delay in hiring of a 3 !4 time technician to assist with technology issues and system updates. • Finance: This program is proposed to be reduced by 1.1% or $8,150. The reduction is mainly within the proposed level of overtime pay. • Citizen Services: These programs are proposed to be reduced by 0.8% or $34,930. The major reductions are due to personnel costs being saved with the retirement of a senior administrator and the position being reallocated to the park administration program. Community Center expenditures are proposed to be increased by 2.3% with a corresponding increase in MCC revenue. A tax subsidy of $220,000 is proposed for MCC and $265,000 of tax subsidy is proposed for Recreation Programs. A revision of one or both of these programs into a Park and Recreation Department will be explored in 2010. BUDGET SUMMARY Mr. Mittet will be presenting a powerpoint presentation on the overall budget. He will touch very briefly on the non -tax supported funds, such as Sanitary Sewer, Environmental Utility, Ambulance and Recycling Funds, which will be addressed as rates are proposed to be set during the regular Council Meeting. A majority of Mr. Mittet's presentation will be a summary of the 2009 and 2010 General Fund, which accounts for a majority of the property tax receipts. Some points about the budget that will be highlighted: The final impacts of revisions to 2009 General Fund expenditures in the re- estimate: o Revenue in 2009 was $1,356,950 below the budget adopted by the City Council in December 2008. This is a 7.34% reduction. The biggest areas where revenues in 2009 did not meet budget were: • Market Value Homestead Credit: $402,950 • Building Permit Fees: $314,000 • Planning Review Fees: $151,000 • Interest on Investments: $150,000 • Miscellaneous areas: $350,000 Packet Page Number 3 of 4 2010 BUDGET PAGE THREE Continued summary of 2009 Re- estimate: o In response to the reduced revenue, revisions were implemented during 2009 that resulted in savings as follows: • Department Expenses Reduction: $744,484 • One -time savings to Debt Service: $661,125 • Delay Fire Truck Purchase: $ 76,000 * - This reduced transfer is due to project cost savings with good bids. The result of the revisions to the 2009 Budget in the General Fund was that the overall balance of funds within the General Fund will end 2009 with a positive increase of $90,484. A summary of the proposed 2010 Budget within the General Fund as represented by the presentations from each of the departments, assumed that a levy increase of 5.0% remains: • Revenues for 2010 compared to the adopted 2009 budget will increase by 0.3 %, or $47,825 out of a total revenue budget of $18,536,105. The biggest revisions are: • Tax collections up by 5.0 %: $673,435 • Intergovernmental down by 32.1%: $415,930 • Permit revenue down by 17.9 %: $224,460 • Expenditures for 2010 are proposed to increase by 0.4% or $69,420 with the biggest revisions as: • Police Department up by 2.8 %: $212,910 • Public Works down by 2.5 %: $ 98,490 • Note: the highlights of the expenditures by departments is included within this memorandum earlier as highlights of presentations by each of the Department Heads. • After all necessary transfers and adjustments, the proposed 2010 General Fund budget will see a reduction at the end of 2010 by $188,645. This will result in a General Fund balance of 36.6% of expenditures, which is within the past year's budget ranges of 36 -40 %. This balance is available for cash flow and can be considered reserves for emergency expenditures. NEXT STEPS It is proposed that the City Council review this draft budget document. Any revisions to the budget document should be discussed and provided to the staff for inclusion in the final document to be provided for public review and comment. Staff is proposing that the actual action by the City Council to adopt a final budget document occur at the next regular Council meeting on November 23f This would allow for the publication of the budget for public review and comment. The budget document adopted on November 23` would be used for the Budget Hearing that is scheduled for 7:00 pm on Monday, December 7, 2009. Input from the Public would be received on December 7 th and the City Council would adopt the final budget for 2010 at their regular meeting on December 14 RECOMMENDATION No action is required on this item unless the Council desires revisions to the final document. Attachments: 1. Draft 2010 Proposed Budget Packet Page Number 4 of 4