8.2. SR 11-13-2001MEMORANDUM
Item 8.2.
TO:
FROM:
DATE:
SUBJECT:
Mayor and Council ~--/(J~x~
Pat Klaers, City Admi ~,~-
NoYember 13,2001
Status of 2002 Budget Proposal
The purpose of this agenda item and memo is to provide the City Council with a brief
update of the current status of the proposed 2002 general fund budget. The balancing of the
2002 budget has not yet been completed but we are getting closer. Council input on "where
we are at and how we got there" would be appreciated. December is the traditional budget
approval timeframe and the 2002 budget is scheduled for Council consideration at its
December 10, 2001, meeting.
At our last City Council budget discussion on September 4, 2001, the general fund was
$111,600 away from being balanced. Attached for your information, is the September 4,
2001, summary page from the finance director, which showed how we moved from the
July 2 deficit to the September 4 deficit. Also attached are the proposed maximum tax levy
resolution approved by the Council on September 4 and an update of the capital outlay
(equipment) list.
Recently the city received information from the county regarding new property values for
2002. Finance Director Lori Johnson has distributed this information to the Council. This
material included an update on the status of the city's proposed tax rate. The city rate is
increasing from 30.596 to 43.544. Please note that this is only an estimate based on the
information provided by the county. A city tax rate in the mid-40's is expected to be
commonplace for municipalities in 2002.
Regarding our current $111,600 budget problem, please see the attached two pages of
possible adjustments. Once again, the problem got slighdy worse before it got better due to
some budget omissions and necessary changes. After all the changes, this information shows
that the city sdll has a $18,600 budget problem in the general fund and it should be noted
that additional budget adjustments are going to be hard to identify. Staff is very reluctant to
increase any budget revenues, especially building and construction related revenues, due to a
potential downturn in the economy. Some of the budget program additions for 2002 include:
hiring another police officer to participate on the drug taskforce, taking over some
prosecuting attorney services from the county, and establishing the city recreation program.
Two of the budget changes listed in the attachment relate to computers and technology
expenses. This issue is generating a great deal of discussion at the staff level. There is some
frustration in not being able to adequately plan for computer/technology expenses that are
out of their control, or in the case of the police department, which are dictated to them by
the State. (We have also used the Council contingency for some of these expenses over the
past few years.) We currently have a part-time information technology employee, whom we
share with the city of Andover, and Andover and Elk River are nearing the time when both
will need full dme employees. In Elk River this will most likely mean another program
budget with funding being allocated for some of these unknown types of repairs and
upgrades.
The City Council should briefly discuss the Todd Besser situation. This police officer got
called into active reserves duty and will be gone for at least one year and potentially longer. If
the city decides to add another officer to address our police manpower needs, and if Todd
comes back in November 2002, then we will have to decide whether or not to retain the
other (replacement) officer. If we keep this replacement officer and Todd comes back in
November then the budget is short. Wages for this additional officer for the last two months
of the year amounts to approximately $8,000 and this is currendy not in the budget. It
should be noted that in February we are scheduled to hire the drug task force officer and the
replacement officer to address our manpower needs due to Todd leaving for active duty.
Each officer, each month equates to $4,000 in expenses.
One item not included in the budget at this point, but which is a revenue and expenditure
"push", is the underground utilities facility inspector and program. This new 2001 program
helps the city deal with construction activities in the public right-of-way. Some type of
program is expected to continue in 2002, but it may differ greatly from the 2001 program
and more review of 2001 activities is needed before projections can be made for 2002. Some
funding and expenditures for this program will be incorporated into the final budget figures
that will be presented to the Council on December 10, 2001.
The final attachment to this memo is the table of contents from the 2001 budget. Regarding
the supplemental budget information section, it should be noted that:
· The Council is considering the enterprise budgets on November 13, 2001.
· The EDA (and business incubator) and HRA budgets and tax levies have already
been considered by the Council.
· The library and ice arena budgets were presented to the Council on July 2.
· The surface water management, special assessment, and equipment certificate
amounts are in the tax levy resolution.
· The capital outlay page includes the equipment reserve expenditures.
· The landfill and safety budgets have yet to be presented.
Please note that neither the landfill or safety budgets impact the tax levy. Funding o£ the
landfill budget coming from the landfill waste abatement reserves and the safety
expenditures come out o£ the insurance reserves. Last year the safety budget was $15,000.
Attachments
· 9/4/01 Budget Summary
· 9/4/01 Tax Levy Resolution
· 9/4/01 Capital Outlay Page
· 11/13/01 Budget Update (2 pages)
· 2001 Budget Table of Contents
s/council/budgetRevicw
Beginning Balance
2002 GENERA' -'JND BUDGET
Septem, 4, 2001
Revenues Expenditures Balance
$ 7,051,700 $ 7,434,000 $ (382,300)
Comments
July 2 Council Adjustments
Delete Optical Imaging
Delete Fire Dept. Floor
Change to City Recreation
Add Drug Task Force Officer
Add Police Prosecution
Add Fine Revenue
Adjusted Balance
State Aid Adjustments (New Tax Law)
Add Low Income Housing Aid
Adjust LGA & HACA
Adjusted Balance
Levy Limit Adjustments
To Balance to Levy Limit
PERA Special Levy
Tax Abatement Special Levy
Capital Outlay Equip Cert. Eligible
Patrol Vehicles (2)
Investigator Car
Street Dept. Truck
Tandem Axel Dump Truck
Asphalt Hot Patch Trailer
Athletic Field Groomer
Adjusted Balance
Recommended Adjustments
Delete CSO
Ending General Fund Budget Balance
25,000
115,000
(52,500)
(22,500)
52,100
46,500
150,000
7,191,700 7,607,600 (415,900)
9,900
107,600
7,309,200 7,607,600 (298,400)
(137,700)
8,855
6,160
(50,000)
(24,000)
(20,500)
(15o,ooo)
(16,ooo)
(13,000)
7,186,515 7,334,100 (147,585)
(36,000)
$ 7,186,515 $ 7,298,100 $ (111,585)
Fund with Reserves (East ER admin fee.)
Fund with FEMA reimbursement
Financed through Equipment Certificates
(273,500)
8/31/01
RESOLUTION 01 - _59
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING THE PROPOSED PROPERTY TAX LEVY
FOR COLLECTION IN 2002
WHEREAS, the Elk River City Council has review the City's anticipated
expenditures for all funds in 2002; and,
WHEREAS, the Elk River City Council has considered projected revenues for
all funds in 2002; and,
WHEREAS,
revenues from sources other than property taxes are not sufficient
to meet anticipated expenditures of all funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that
the following amounts are the maximum to be levied as property taxes
payable in 2002:
General Fund
Street Replacement
Library
Dam Loan
Surface Water Management
City Special Assessments
1994 Storm Sewer Bonds
2002 Certificate of Indebtedness
2000 Certificate of Indebtedness
1999 Certificate of Indebtedness
1998 Certificate of Indebtedness
PERA Employer Rate Increase
Economic Development Tax Abatement
TOTAL
Lew
$4,148,144
150,000
67,200
23,000
200,000
26,5O7
113,952
273,500
43,349
36,741
20,880
8,855
6,160
$5,118,288
Passed and adopted by the City Council of the City of Elk River this 4th
day of September, 2001.
AT,pT: ,,~
~Sandra A. Peine, City Clerk
Steph~nie Klinzing, Mayo~_.,) /
Department
Mayor & Council
Cable TV
Administration
Finance
Elections
Planning
Govt. Building
Police
Police Reserve
Fire
r;mergency Prep.
,~uilding & Environ.
Streets
Snow Removal
Parks
Recreation
Subtotal
2002 CAPITAL OUTLAY
Fundin~l Source
General Equipment Equipment Department
Item Fund Certificate Reserve Total
Optical Imaging System
Copy Machine Lease 13,250 13,250
Special Assessment Software 4,000 4,000
Copy Machine Lease
Patrol Vehicles (marked) - 2
Squad Video Cameras - 3
Mobile Digital Computers - 5
Investigator Car
Voice Playall System
7,200
10,800
23,OO0
3,300
50,000
24,000
118,300
Repair Fire Station Floor
Pumper (1997) 43,000 43,000
Siren 13,600 13,600
Truck 22,000
Office furniture for new employee 6,000 28,000
Pickup 20,500
Dump Box 5,200
Tandem Axel Dump Truck 150,000
Asphalt Hot Patch Trailer 16,000 191,700
Athletic Field Groomer 13,000 13,000
$ 94,750 $ 273,500 $ 56,600 $ 424,850
One Time
Revenue
52,500 Admin. Project Fees
22,500 FEMA Funds
$ 75,000
11/7/01
Capitalo:02 Cap Outlay
2002 BUDGET
Results o£ September 4, 2001 Council Meeting:
Revenues $7,186,500
Expenditures $7,289,100
Deficit $ 111,600
Additional Issues Since 9-4-01:
$ 9,000
$ 4,000
$ 2,000
$ 9,000
Total: $24,000
Police Union Insurance Settlement
Computer Repairs in Police Department (Omitted from Budget Request)
B/Z Permit Works Software Update (Omitted from Budget Request)
Police 2% Aid Revenue Decrease Based on Most Recent Actuals
Updated Budget Short Fall... $135,600
ProposM to Address 2002 Budget Shortage:
$35,000
$ 7,300
$17,200
$ 4,000
$ 4,000
$ 5,500
$ 2,000
$1,ooo
$ 5,000
$ 5,000
$28,000
$3,000
Eliminate B/Z Employee (Environmental Assistant Request)
Eliminate B/Z New Employee FF & E
Miscellaneous Reductions (see attachment)
Start New Police Officer in February
Start New Police Officer in February (Todd B. replacement)
Reduce Police Supplies as vehicle setup expenses are funded within Equipment
Certificates
Reduce Elections Personnel Services (part-time judges)
Reduce Recreation Personnel Services (within the youth recreation program)
Reduce Council Contingency
Reduce Street Maintenance Program (Change 2002 Budget to $95,000...2001
Budget at $90,000)
Revenue Addition...Landfill Money for Waste Abatement Purposes to offset
Street/Park time and equipment dedicated to the Recycling Program (Leaves)
Revenue Addition...United Way Contribution to the School Juvenile Program
(project alert)
Total: $117,000
$18,600 Still Short
Amount
$ 3OO
$ 400
$ 300
$ 500
$ 600
$ 300
$ 400
$ 500
$ 500
$1,000
I~IISCELLANEOUS DEPARTMENTAL CUTS
Pro.ram Number
4201
4201
4331
4415
4301
4331
4319
4404
4219
4331
$ 400 4217
$ 5OO 4219
$ 7OO 4331
$2,OOO 4212
$ 500 4401
$ 500 4219
$ 5O0 4331
$1,000 4415
$ 200 4331
$2,000 4212
$ 500 4219
$ 500 4219
$ 300 4219
$1,000 4389
$ 500 4219
$ 300 4212
$1,000 4409
Total: $17,200
Department/Description
Cable TV Promotions
Administration - General Office Supplies
Administration...No State Conference for PK
Elections - Polling Location Rental Fees
Finance - Audit
Energy City- General
Planning- Professional Services
Government Buildings - Equipment R/M
Government Building - General
B/Z - Mainly Due to No Environmental
Assistant Being Hired
Police CSO Uniforms
Police - General
Police General
Police - Fuel
Fire - General - Bldg R/M
Fire - General
Fire - General
Streets - Equipment Rental
Streets - General
Streets - Fuel
Equipment Services - General
Snow- General
Shade Tree - General
Parks (Utilities)
Parks - General
Parks - Fuel
Recreation - Youth Initiatives Program
(Contractual Services)
4212 = Fuel- Total: Minus $4,300
4219 - Operating Supplies - Total: Minus $4,000
4331 = Conferences/Schools- Total: Minus $3,000
TABLE OF CONTENTS
BUDGET MESSAGE ..................................................................................................................................... I
SOURCE OF FUNDS ................................................................................................................................... III
APPROPRIATION SUMMARY ................................................................................................................. IV
BUDGET DETAIL: REVENUES
REVENUES NARRATIVE ............................................................................................................................ 2
REVENUE SUMMARY ................................................................................................................................. 4
BUDGET DETAIL: EXPENDITURES
MAYOR AND COUNCIL ..............................................................................................................................
CABLE TV .................................................................................................................................................... 10
ADMINISTRATION ..................................................................................................................................... 12
ELECTIONS ................................................................................................................................................. 14
FINANCE ...................................................................................................................................................... 16
ECONOMIC DEVELOPMENT .................................................................................................................... 1
LEGAL .......................................................................................................................................................... 20
ENERGY CITY ............................................................................................................................................. 22
PLANNING .................................................................................................................................................. 24
PLANNING COMMISSION ........................................................................................................................ 26
GOVERNMENT BUILDINGS ..................................................................................................................... 28
CONTINGENCY .......................................................................................................................................... 30
BUILDING AND ENVIRONMENTAL ....................................................................................................... 32
POLICE ......................................................................................................................................................... 34
POLICE RESERVE ....................................................................................................................................... 36
FIRE .............................................................................................................................................................. 38
EMERGENCY PREPAREDNESS ............................................................................................................... 40
STREETS ...................................................................................................................................................... 42
EQUIPMENT SERVICES ............................................................................................................................ 44
SNOW REMOVAL ....................................................................................................................................... 46
ENGINEERING ............................................................................................................................................ 48
SHADE TREE ............................................................................................................................................... 50
PARKS .......................................................................................................................................................... 52
RECREATION .............................................................................................................................................. 54
SENIOR CITIZEN PROGRAMS .................................................................................................................. 56
TRANSFERS ................................................................................................................................................. 58
SUPPLEMENTAL BUDGET INFORMATION
LIBRARY ...................................................................................................................................................... 62
SURFACE WATER MANAGEMENT ......................................................................................................... 64
CITY SPECIAL ASSESSMENTS ................................................................................................................ 66
ICE ARENA .................................................................................................................................................. 67
EQUIPMENT CERTIFICATES - CAPITAL OUTLAY .............................................................................. 70
EQUIPMENT RESERVE ............................................................................................................................. 72
SANITARY LANDFILL ............................................................................................................................... 74
SAFETY ........................................................................................................................................................ 76
ECONOMIC DEVELOPMENT AUTHORITY ........................................................................................... 78
BUSINESS INCUBATOR ............................................................................................................................ 80
HOUSING AND REDEVELOPMENT AUTHORITY ................................................................................ 82
GARBAGE COLLECTION PROGRAM ...................................................................................................... 84
LIQUOR STORE .......................................................................................................................................... 86
WASTE WATER TREATMENT SYSTEM ................................................................................................ 88
COMPENSATION PLAN RESOLUTION ................................................................................................... 90
CITY TAX LEVY RESOLUTION ............................................................................................................... 95