HomeMy WebLinkAbout2012 07-09 City Council Workshop Packet
AGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
5:15 P.M. Monday, July 09, 2012
Council Chambers, City Hall
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
E. NEW BUSINESS
1. Declaration of Intent to Close Meeting
a. Review of Flood Litigation
2. Discussion on Listening Forum Process
3. Review of 2013 Budget Process
F. ADJOURNMENT
THIS PAGE IS INTENTIONALLY LEFT BLANK
Work Session Agenda Item E1
AGENDA REPORT
TO: James Antonen, City Manager
FROM: Charles Ahl, Assistant City Manager
SUBJECT: Discussion on Flood Litigation
Declaration of Intent to Close Meeting
DATE: July 2, 2012
INTRODUCTION
The City Council will discuss strategy for addressing litigation that is a result of the July 2011
flooding. A discussion on strategy and settlement options will be considered.
Because of the confidential nature of this litigation, the staff and City Attorney will be
recommending that the City Council close this session as allowed by state statute.
Recommended Action
The City Council should discuss the litigation. No action is recommended, although it is
anticipated that the Council will provide direction to the staff and City Attorney on settlement
options.
Workshop Packet Page Number 1 of 8
Work Session Agenda Item E2
AGENDA REPORT
TO: James Antonen, City Manager
FROM: Charles Ahl, Assistant City Manager
SUBJECT: Discussion on Listening Forum
DATE: July 2, 2012
INTRODUCTION
At the May 14th Council Meeting, as part of Council Presentations, the City Council directed staff
to place an item on a future Work Session for the Council to continue the discussion on the
format of the Listening Forum.
Time on the Work Session has been allocated for that discussion.
Recommended Action
No action is recommended by staff.
Workshop Packet Page Number 2 of 8
Work Session Agenda Item E3
AGENDA REPORT
TO: James Antonen, City Manager
FROM: Charles Ahl, Assistant City Manager
SUBJECT: Discussion of 2013 Budget Assumption and Evaluation Process
DATE: July 2, 2012
INTRODUCTION
This agenda item is the start of the 2013 Budget process along with information for the City
Council. The staff intends to review the process that we propose for the Council to provide input
prior to considering settling the maximum levy for 2013 in September 2012, and adopting the
final budget in December 2012. The staff has begun the process of estimating the needs and
necessary budget reductions to meet the overall budget directions given by the Manager’s office.
The expectation is that the City Council will provide input into the process at this time, so that
July and August presentations provide the Council with their desired level of involvement into the
budget process prior to the necessary decision dates.
Background Information
During the past months, the City Manager’s budget team has worked with the Council to
established goals through the Council – Staff Retreat Process and developed the following
assumptions to be shared with the City Council about the 2013 Budget:
1. A levy increase of 3 – 4% = $525,000 - $700,000.
2. An increase in funding of about 1.0% for Police Department Expansion = $125,000
3. A stabilization of funding for the MCC Fund. [from the Audit Report]
4. A stabilization of funding for the Ambulance Fund. [from the Audit Report]
5. A small increase of funding for the Debt Service Fund. [from 2012 Bonds]
6. A small increase in funding for Park Development.
7. A continued reduction in the street renewal program.
8. An expansion of funding for Economic Development.
During 2011, the City Council directed that an increase to the fund balance to 40.0%. The fund
balance is set at that amount for 2012. That assumption allows for excess funds for above
normal revenues or decreased expenses during 2012, to be used for one-time expenditures and
capital project expenditures.
The levy for 2012 was distributed as follows:
General Fund $12,265,420
Recreation Program Fund $ 175,000
Maplewood Community Center Fund $ 460,000
Debt Service Fund $ 4,313,530
Capital Improvement Projects Fund $ 145,000
Fire Truck Replacement Fund $ 50,000
Public Safety Expansion Fund $ 200,000
Park Development Fund $ 0
Ambulance Fund $ 350,000
Total 2012 Levy $17,853,523
Workshop Packet Page Number 3 of 8
2013 BUDGET PROCESS
PAGE TWO
Each of the Department Heads has prepared budget requests based upon their needs for 2013.
In addition, the Capital Improvement Plan was adopted on March 26, 2012 that included
financing assumptions for various projects and improvements. Following is a summary of the
requests and needs for 2013 based upon those requests and the CIP:
Summary of Initial Budget Requests
Operating Expenses increase over 2012: $ 594,570
New Economic Development Authority Levy: $ 89,270
Funding for Maplewood Community Center Capital Projects: $ 100,000
Reduced Ambulance Fund Debt Charge: $ 100,000
Add levy to Park Development Fund: $ 100,000
Increase funding for Recreation Program Fund: $ 35,000
Increase funding for Debt Service for 2012 Bonding: $ 105,000
Increase Capital Improvement Fund for Fire Training Facility $ 35,000
Increase Public Safety Fund for Police Department Expansion $ 125,000
Increase Housing Redevelopment Fund $ 40,000
Total New Requests $1,303,840
In addition to requests for additional budget authority, the Department Heads have worked with
the Finance staff to estimate 2013 non-tax levy charges and revenues. Following is a summary
of the changes to revenue assumptions for 2013 that could impact the levy:
Summary of 2013 Revenue Revisions
Increase in building and planning fees: +$ 300,000
Reduced Admin Charge in Ambulance Fund -$ 100,000
Reduced Engineering Charges due to reduced Street projects -$ 228,000
Reduced Passport Fees -$ 20,000
Reduced Revenue from Landfall Contracts -$ 133,250
Total Revenue Impacts for 2013 -$ 181,250
Based upon these initial requests and revenue trends, the impact to the 2013 Levy can be
determined, if the first assumption is that all these requests are funded and that it is all covered
by an increase in the 2013 levy:
Summary of Impact on 2013 Levy
2013 New Requests $1,303,840
2013 Revenue Impacts $ 181,250
2013 Needed Levy Increase to fund all Requests $1,485,090
• The 2012 levy was $17,853,523, thus % impact: +8.32%
Workshop Packet Page Number 4 of 8
2013 BUDGET PROCESS
PAGE THREE
Notes: The Management Team does not recommend an 8.32% levy increase.
Recommendations to Reduce Levy Increase
As noted, a levy increase of 8.32% is neither within the City Council’s sustainability goals nor
within the range that the City Management Team is comfortable recommending. Following are
the steps in reducing the levy to a sustainable level of comfort that the Management Team can
recommend to the Council:
1. Reductions to Operating Requests $ 250,000
2. Reduce the new EDA Levy $ 50,000
3. Reduce the Redevelopment Levy to 2012 level $ 20,000
4. Increase Revenue with Engineering Division $ 100,000
5. Cut Capital Expenditures [possible fund with 2012 funds]
a. Maplewood Community Center $ 100,000
b. Ambulance Fund Debt support $ 100,000
c. Park Development Fund $ 100,000
d. Recreation Program Fund $ 35,000
e. Capital Improvements Project Fund $ 35,000
6. Reduce Contribution to Public Safety Expansion Fund $ 70,000
Total Recommended Reductions: $ 860,000
Revised Summary of Impact on 2013 Levy
2013 New Requests $1,303,840
2013 Revenue Impacts $ 181,250
2013 Needed Levy Increase to fund all Requests $1,485,090
Recommended Reductions: -$ 860,000
Recommended 2013 Levy $ 625,090
• The 2012 levy was $17,853,523, thus % impact: +3.50%
Notes on Assumption for 2013 Levy
The following have been assumed as issues/impacts for 2013:
1. Employee wage and benefit expenses will be increased by 2.0%.
2. Tax levy collections will continue at a similar rate to 2011-12.
3. Ambulance Fund collections will continue to grow at a slower rate [1-3%] than expenses
[3-5%] due to the increased number of responses covered by Medicare, which does not
cover costs.
4. Maplewood Community Center revenues will increase slightly [2-5%]; while expenditures
will decrease slightly [1-2%], closing the gap on a 5-year sustainability plan.
5. Inflationary impacts will be minimal, including fuel expenses. The only exception is a
large increase in dispatch costs for public safety.
Workshop Packet Page Number 5 of 8
2013 BUDGET PROCESS
PAGE FOUR
Budget Review Process
The assumptions and information presented in this report will be reviewed in detail with the City
Council during Work Session over the next 6 – 8 weeks as follows:
1. July 23 Work Session
a. Finance Department;
b. IT Department;
c. Citizen Services Department [includes Taste of Maplewood Funding]
2. August 6th Work Session
a. Parks Department [Maplewood Community Center and Recreation Funds]
b. Community Development Department
c. Administrative and Executive Departments
d. Public Works Department
3. August 13th Work Session
a. Fire Department [includes Ambulance Fund]
b. Police Department
4. August 27th Work Session
a. Discussion / priority on Capital Funding
b. Budget in draft format available for public viewing
5. September 10th Regular Meeting
a. Council sets maximum levy and sets Public Hearing for December 2012
Budget Review Process
As summarized above, the preliminary analysis is proposing to increase the levy by $625,090 or
3.50%. That amount can increase or decrease depending upon the Council’s judgment and
acceptance of reductions or revenue increases.
The recommended process will be processed using the following format:
Discussion Item Staff Recommendation Council Direction
Recreation Program Cut $35,000; no increase from 2012 [completed in August]
Possible fund with excess 2012 dollars
Maplewood Comm Ctr Cut $100,000; no increase from 2012
Delay to some Improvements
Possible fund with excess 2012 dollars
Debt Service Add $105,000 to levy
Reduce Streets Program
Workshop Packet Page Number 6 of 8
2013 BUDGET PROCESS
PAGE FIVE
Discussion Item Staff Recommendation Council Direction
Economic Dev Auth Fund Start new levy at $39,270 instead
of $89,270
Cap Improv Proj Fund Cut $35,000;
Possible fund with excess 2012 dollars
Park Development $0 to levy
Possible fund with excess 2012 dollars
Fire Truck Replacement Continue levy at $50,000/yr; No change
No delay in vehicle replacement
Ambulance Fund Add $100,000 to levy
Cut $100,000 charge for Admin Charges
Public Safety Fund Add $55,000 to levy instead of $125,000
Fund some improvements internally
General Fund Cut $250,000 from Department Proposals
Assume 2.0% employee cost increase
[further information at department meetings]
Summary of Proposed Levy Increase
The staff is proposing a maximum levy increase for 2013 of 3.5% or $625,090. This can be
broken into parts as follows:
1. Operating cost increases: $295,820 1.7%
2. Ambulance Fund increases: $100,000 0.6%
3. Debt Service increases: $105,000 0.6%
4. Public Safety Bonding: $ 55,000 0.3%
5. New EDA Levy: $ 39,270 0.2%
6. Park Development Fund Levy $ 30,000 0.1%
TOTAL $625,090 3.5%
Recommended Action
It is recommended that the City Council review the preliminary assumptions for the 2013 Budget
and provide input on the process for evaluation.
Workshop Packet Page Number 7 of 8
THIS PAGE IS INTENTIONALLY LEFT BLANK
Workshop Packet Page Number 8 of 8