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HomeMy WebLinkAbout2010 05-24 City Council Manager Workshop PacketAGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:15 P.M. Monday, May 24, 2010 Council Chambers, City Hall A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS 1. Review of 2011 Budget and 2011 -2015 CIP Process E. NEW BUSINESS 1. Dedication of Veterans Plaque — 6:30 p.m. F. ADJOURNMENT THIS PAGE IS INTENTIONALLY LEFT BLAND Work Session Agenda Item D1 TO: City Manager, Jim Antonen FROM: Charles Ahl, Assistant City Manager /Public Works Director SUBJECT: Review of 2011 Budget and 2011 — 2015 CIP Process DATE: May 19, 2010 Introduction This item is placed on the Work Session agenda to begin the process of Council review and input into the 2011 Budget and the 2011 — 2015 Capital Improvement Plan. The staff intent is to provide the City Council with various items for consideration over the next 6 weeks and at the end of the 6 weeks, have the Council provide direction on their priorities. Background A number of general assumptions are made when preparing the budget and capital improvement plan. We will continue to refine and update these assumptions: 1. In relation to debt levels, the City Council established a goal as part of the 2010 -2014 Capital Improvement Plan to maintain debt levels at 2% of overall City taxable market value. Because the City's overall market value is stable or slightly declining, the level of debt for projects will be stable and thus the number of projects that need to be deferred to an unfunded list are substantial. A summary of the various projects being proposed and deferred will be provided to the Council in early June. 2. There are no, or very limited, reserves available to provide funding for operations at the end of 2010. Because of extensive cuts in state funding in 2008 -2009, these reserves were used to transition from 2009 into 2010. A current review of 2010 indicates that various revenue estimates were too aggressive and that revenues will likely be at $450,000 below budget levels. The City Manager has directed reductions of approximately 2% through various departments. Attached is a spreadsheet showing the reductions by department as implemented during May 2010 for the remainder of this year. It should also be noted that revenues at the MCC in 2009 and projected for 2010 are at 92 -93% of budget. The MCC staff have proposed an 8% cut in their expenditures for 2010. All of these cuts will be explained by Department Heads during work sessions in June. 3. In April, during a review of budget issues, the City Manager recommended that the City Council consider up to a 5% increase in the operating levy. The basis of this increase was: Packet Page Number 3 of 10 Work Session Agenda Item D1 a. At least 2% levy increase to cover the Market Value Homestead Credit that was lost to the debt service fund over the past 2 years. This is lost funding, not new project funding. During this time, the reserves of the Debt Service Fund have been used to cover this shortfall. It is not recommended that this practice continue. b. Up to 1% of the levy increase to be dedicated to operations and expenses for the Economic Development Authority [EDA]. c. Up to 2% of the levy increase to be dedicated to operation expenses. d. Note: a 1 % levy increase provides approximately $160,000. KIII&3TCC•m Based on Item 3C above, the funds available for new expenses in 2011 is up to a 2% levy increase which amounts to $320,000. In addition the City Manager will be directing the Department Heads to prepare their 2011 Budget requests at a 97 -99% level. The decision on which departments are at 97 %, 98% or 99% will be based upon the trends over the past 6 years, along with overall City Manager goals. The intent of this exercise is to generate an additional $325,000 of funds for the City Council to consider as part of Department requests. Obviously, adding the two values amounts to $645,000 [$320,000 + $325,000] in new items or directions for the Council to give on the overall plan for proceeding into 2011 with both budget operations and capital planning. OVERVIEW: New funds available in 2011: Less contract items: Payroll step increases by contract 5% Health Care Cost increase allocation: Total available for Council to prioritize: Options for Council: 1. Reduce tax levy increase from 5% to 3% 2. Restore 97 -99% cuts to Department Budgets 3. Provide employees with 1% COLA Increase 4. Allocation for 1 % inflation of expenses 5. Allocation for Health Care Cost increase of 20% 6. Contribute to Fire Truck Replacement Fund $320,000 $325,000 $ 75,000 $ 50,000 $240,000 $100,000 Packet Page Number 4 of 10 Work Session Agenda Item D1 7. Increase allocation for MCC Fund 8. Capital costs at City Hall [CIP Fund] 9. Contribution to Fleet Replacement Fund 10. Park Development Fund 11. Redevelopment Fund 12. Expanded Infrastructure Replacement 13. Expanded IT Fund Process ]40,0 As noted previously, each department head will be presenting to the City Council during June and July on the various aspects of the above proposal. The Department Heads will be expected to address the following items: 1. Review the impacts of the 2010 cuts 2. What new initiatives and changes are forthcoming in their area of expertise. 3. What are the impacts of a 97 -99% budget. 4. Impacts of the Capital Improvement Plan revisions proposed to meet the financial limitations. 5. The Department plan and story for 2010 and 2011. 6. The schedule for presentations are: a. Capital Improvement Plan Review - June 7 b. IT; Admin /Exec and Finance - June 14 c. Fire, Police, Citizen Services - June 28 d. Comm Dev; Public Works; Parks & Rec; MCC - July 7 [special meeting] 7. Other date of note: June 28 will be the presentation by the City's Auditor on the Comprehensive Annual Financial Report [CAFR]. 8. Also on June 28 the Capital Improvement Plan will be presented to the City Council for consideration of adoption. 9. During July, the City Council will provide directions on the above options. Packet Page Number 5 of 10 Work Session Agenda Item D1 10. August 13 — City Council will receive the draft budget. 11. August 30 — City Council reviews final budget options. 12. September 13 — City Council must set maximum levy amount. 13. October — staff reviews various budget options. 14. November — City Council debate on budget options. 15. December 6 th — Budget Public Hearing and adoption of final levy. RECOMMENDATION There is no action required on this item by the City Council. Input on the process and schedule is requested if there are concerns or question. Attachments: 1. Summary of 2% - 2010 Reductions 2. 2005 — 2010 Budget Change /Trends — 2 documents Packet Page Number 6 of 10 Attachment 1 Summary of 21- 2010 Reductions Department Goal Proposed Reduction Amount Recommended Action Public Works $52,306 Cut FT Engineer Tech — open $52,306 Approved position from engineering. Police $127,185 -2 vacant positions through 6/01 $58,333 Approved --3 vacant — Gang Task Force $70,000 Approved Fire $91,629 Delay Fire Truck Purchase $50,000 Approved 101-404-4730 Vehicle $10,000 Approved 101-404-4730 Bldg. Impr. $10,000 Approved Exec/Leg $38,555 Claims — Y2Yr. Reduce $200k to $50,000 Approved $100K Community $65,333 601 Park Admin — Delayed Hiring $41,800 Approved Development Office Specialist, Rec Program Asst. to 7/01. 701 Comm, D ev. -Temp. Wages $1,000 Approved 701, 702, 703, 707 Comm. Dev. $22,500 Approved Fees Cut. Recreation $31,267 Delay Hiring Rec. Program Asst. $26,057 Approved Program 0.5FTE IT Fund $14,844 4480 — Webscen e Web Blocking $5,000 Approved 4165 — Network Equipment $10,000 Approved Replacement Citizen $31,411 Delay Re-codification to 2011 $30,000 Approved Services Savings in election supplies $ 3,000 Approved MCC Fund $165,303 Theater $ 3,950 Approved Fitness/Operations $ 18,600 Approved Building Repair and Maintenance $128,367 Approved Aquatics Programs $ 7,250 Approved Packet Page Number 7 of 10 2005 — 2010 Budget Change Attachment 1 Packet Page Number 8 of 10 q O tw as M V A .Q T N J X H O 06 O 4 N O to m N m Ln M N r~ 06 Ln r-I t!} O ca Ln VS tft O Ln d' d' ttT Ln ,-i t!} O rr m 0 c-i r t!} O Itt d' M d cry rH tt} V) W x F- 0 h Packet Page Number 9 of 10 N N N d" Ln in O O O bA 0 m rLn = M N l0 Lr Lf 00 Cn lD O to O O m M to dt u1 r- Ln U ri 00 rH N •Vt- dt N Vt N in t/f 1-4 th O l0 r i ri h r- Ln N N a N 10 N M N W 10 00 ri ri m M V} C0 M in Ol o0 O ev r I d GQ M � LA O ` 0 M 't 0 0 0 0 0 0 0 0 0 0 0') d U1 N N dt to CF) O I�t r- dt r 00 Itt tarn t0 m a rn r-1 O o Lf) vi M r-i r-i O m N c i --I N Ln to O M M N N 00 r 06 N r1 r 06 r� -4 Ln 0) C 0 0 0 0 LCt V) N M rH N to r i M N Ln dt r-q 4 -0 .qt o M M r- Ln Ln M M 00 r` N o6 01 Ln Lo w O O a m N O N 0 0 0 0 0 0 0 0 0 00 O dt N to l0 Co N 1-0 N r-I W O h a r+ O C}1 OCt 00 l0 C71 r1 O a m N N W 1-0 M 00 N d' 40 M m 00 a 00 -H M rq to w Lo -1 O a M N -� N 0 0 0 0 0 0 0 0 0 O w rl O r-t dt rl t0 O oo rn is W r` O M M M Ln O o O M ok.0 O N cH r-I ri N CU U C n 4. E C M E d W O CL O Y U > (V N to i Q' iA 0 U UJ M (.� i- N i X tU U O C .N '= N 0 L 3 W +.+ V CU N H \ .� i . E ^� Cll L S� a v� U d Q. U q O tw as M V A .Q T N J X H O 06 O 4 N O to m N m Ln M N r~ 06 Ln r-I t!} O ca Ln VS tft O Ln d' d' ttT Ln ,-i t!} O rr m 0 c-i r t!} O Itt d' M d cry rH tt} V) W x F- 0 h Packet Page Number 9 of 10 Work Session Agenda Item E1 AGENDA REPORT TO: City Manager, Jim Antonen FROM: Charles Ahl, Assistant City Manager /Public Works Director SUBJECT: Dedication of Maplewood Veterans Plaque — 6:30 pm DATE: May 18, 2010 INTRODUCTION /SUMMARY A new plaque has been installed in the foyer of Maplewood City Hall in memory and consideration of the veterans within our area that have served our country. Members of recent wars and conflicts, as well as veterans of World War 11, the Korean War and of the Vietnam War have been invited to participate in a short ceremony dedicating the plaque. The Commander of the local VFW is anticipated to be present to assist with the ceremony that will begin at 6:30 pm. Action Required No action is required by the City Council. Packet Page Number 10 of 10