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:
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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.
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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
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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
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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.
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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
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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.
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