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10.2. SR 09-05-2017City of Elk - River Request for Action To Item Number Mayor and City Council 10.2 Agenda Section Meeting Date Prepared by Worksession September 5, 2017 Lori Ziemer, Finance Director Item Description Reviewed by 2018 Budget Cal Portner, City Administrator Reviewed by Action Requested 2018 budget discussion. Background/Discussion Over the past couple of months staff has presented budget requests and related goals for each department. Staff will provide an overview of the General Fund budget and an update on the preliminary levy. On September 18, the Council must approve a maximum levy to be certified to Sherburne County by September 29, 2017. Currently, with the adjustments that have been made, the levy change is 6.9% for 2018. We are awaiting the 2018 preliminary tax values from Sherburne County, but early estimates were projecting about a 6% increase. Staff is seeking Council direction regarding the tax levy and potential adjustments. Also, during the Mayor & Council budget review there was mention of hosting an event for city volunteers not serving on a board or commission. Staff has provided an estimate of the costs to host such an event and would like direction whether this should be included in the budget. Financial Impact N/A Attachments ■ General Fund summary ■ Personnel summary ■ Capital outlay summary ■ Tax levy ■ Volunteer Event Estimate The Elk River Vision A avelcoming community avith revolutionary and spirited resourcefulness, exceptional p o w E A E u e r service, and community engagement that encourages and inspires prosperity ,� g /� General Fund Revenues: Property taxes Othertaxes Licenses & Permits Intergovernmental Revenues Charges for Services Fines Other Revenues Transfers In Total General Revenues General Fund Expenditures General Government: Mayor & Council Communications Administrative Services Human Resources Elections Finance Information Technology Legal Community Development Planning Building Maintenance Energy City Contingency - 49'ers Union Total General Government Public Safety: Police Fire Code Enforcement Building Safety Environmental Total Public Safety Public Works: Street Maintenance Snow Removal Equipment Services Engineering Total Public Works Culture & Recreation: Parks Maintenance Recreation Sr. Citizen Programs Total Culture & Recreation Total General Fund Expenditures CITY OF ELK RIVER GENERAL FUND PRELIMINARY BUDGET 2017 2018 % of % Budget Preliminary Budget Change $9,969,250 $10,725,800 69.6% 7.69/o 140,000 150,000 1.0% 7.1% 714,950 877,900 5.7% 22.8% 293,500 294,500 1.99/0 0.3% 891,400 931,500 6.0% 4.5% 155,000 151,000 1.0% -2.6% 217,500 226,500 1.5% 4.1% 1,996,800 2,063,950 13.4% 3.4% 14,378,400 L 15,421,150 1 100.0% 7.3% 148,800 152,800 1.0% 2.7% 111,300 306,900 2.0% 175.7% 594,450 521,900 3.4% -12.2% 234,450 250,550 1.6% 6.9% 6,600 42,250 0.3% 540.2% 572,200 586,250 3.8% 2.5% 385,100 434,600 2.8% 12.9% 220,000 230,000 1.5% 4.5% 223,400 150,050 1.0% -32.8% 297,450 407,800 2.6% 37.1% 638,850 668,250 4.3% 4.6% 33,800 33,000 0.2% -2.4% - 53,450 0.3% - 3,466,400 3,837,800 24.9% 10.7% 5,142,250 5,526,050 35.8% 7.5% 908,550 1,074,300 7.0% 18.2% 93,650 98,750 0.6% 5.4% 665,300 678,450 4.4% 2.0% 47,000 48,400 0.3% 3.0% 6,856,750 7,425,950 48.2% 8.3% 1,304,800 1,336,750 8.7% 2.4% 305,950 298,700 1.9% -2.4% 196,050 205,650 1.3% 4.9% 218,500 234,200 1.5% 7.2% 2,025,300 2,075,300 13.5% 2.5% 1,047,950 1,103,800 7.2% 5.3% 732,400 726,800 4.7% -0.8% 249,600 251,500 1.6% 0.8% 2,029,950 2,082,100 13.5% 2.6% 14,378,400 1 15,421,150 1 100.0% 7.3% CITY OF ELK RIVER 2018 BUDGET GENERAL FUND REVENUE Interaovernmental Revenue MV Credit 2017 2018 10,0% REVENUES: BUDGET PRELIMINARY % Change Taxes 239,500 240,000 0.2% Property Taxes $9,969,250 $10,725,800 7.6% Gravel Tax 140,000 150,000 7.1% TOTAL Taxes 10,109,250 10,875,800 7.6% Licenses & Permits 8,000 9,000 12.5% Liquor License 67,500 70,000 3.7% Amusement License 1,050 - -100.0% Cigarette License 3,100 2,800 -9.7% Rental License 45,000 65,000 44.4% Mining License 23,000 23,000 0.0% Garbage Hauler License 1,800 1,600 -11.1% Other Business License/Permit 13,000 13,000 OA% NPDES Permit 12,000 12,000 OA% Building Permit 415,000 480,000 15.7% Plumbing/Heating Permit 118,000 195,000 65.3% Permit Surcharge 1,500 1,000 -33.3% Animal License 6,000 5,500 -8.3% Other Non -Business Lic/Permit 8,000 9,000 12.5% TOTAL Licenses & Permits 714,950 877,900 22.8% Interaovernmental Revenue MV Credit 5,000 5,500 10,0% PERA Aid 14,000 14,000 0.0% Police 2%Aid 239,500 240,000 0.2% Police Training Reimb 10,000 10,000 0.0% State Crime Prevention Grant 25,000 25,000 0.0% TOTAL Intergovernmental Revenue 293,500 294,500 0.3% Charges for Services Planning & Zoning Fees 30,000 32,000 6.7% Plan Check Fee 145,000 200,000 37.9% Special Assessment Search 500 800 60.0% Copies 1,700 2,500 47.1% Other General Govt Services 5,000 5,000 0.0% Lockout Fees 7,000 6,500 -7.1% Police Services 8,000 9,000 12.5% School Liaison 123,600 123,600 0.0% Animal Impound Fee 3,000 4,000 33.3% Fire Contracts 234,000 255,000 9.0% Fire Services 2,000 2,000 0.0% Fire Inspections 5,000 - -100.0% Maintenance Facility Rent 13,800 - -100.0% Street Services 25,000 20,000 -20.0% Engineering Services Reimb 125,000 125,000 0.0% Recreation Fees 96,000 75,000 -21.9% Sr Center Activities 30,000 35,000 16.7% Park Use Fee 24,400 24,000 -1.6% Building Rent 2,400 2,400 0.0% REVENUES: Sewer Inspection Fee Contractor License Check TOTAL Charges for Services Fines & Forfeits Court Fines Parking Fines TOTAL Fines & Forfeits Other Revenue Interest Income Refunds & Reimbursements Contributions Miscellaneous Revenue TOTAL Other Revenue Transfers In Transfer -Landfill Transfer -Capital Outlay Resery Transfer-NSP/RDF Reserve Transfer -Development Transfer-WWT5 Transfer -Liquor Transfer -Garbage Transfer -Utilities Transfer-Stormwater Transfer -EDA Transfer -HRA TOTAL Transfers In TOTAL GENERAL FUND REVENUE Fines, Charges for Servi $931,500 Intergovtl Reven $294,500 Licenses/Permit $877,900 Other Taxes, $1S0,000 2017 2018 BUDGET PRELIMINARY %Change 9,000 9,000 0.0% 1,000 700 -30.0% 891,400 931,500 4.5% 145,000 145,000 0.0% 10,000 6,000 -40.0% 155,000 151,000 -2.6% 90,000 90,000 0.0% 101,000 110,000 8.9% 20,000 20,000 0.0% 6,500 6,500 0.0% 217,500 226,500 4.1% 56,000 56,000 0.0% 113,250 13,600 -88.0% 45,000 45,000 0.0% 14,000 14,000 0.0% 130,000 150,000 15.4% 482,850 492,000 19% 46,150 46,750 1.3% 1,035,000 1,165, 000 12.6% 15,000 15,000 0.0% 34,800 36,600 5.2% 24,750 30,000 21.2% 1,996,800 2,063,950 3.4% $14,378,400 $15,421,150 7.3% General Fund Revenues by Category Other Revenues, Transfers in, $226,500 $2,063,950 operty Taxes, >10,725,800 CITY OF ELK RIVER 2018 BUDGET GENERAL FUND EXPENDITURES General Fund Expenditures by Category Capital Outlay Services & Charges $108,500 Supplies $1,144,90 181 Services ,671,000 2017 2018 EXPENDITURES: BUDGET PRELIMINARY %Change Personal Services FULL TIME SALARIES $7,542,950 $8,062,900 6.9% OVERTIME 202,100 200,000 -1.0% PART TIME SALARIES 689,600 742,800 7.7% PERA 880,100 935,950 6.3% FICA 327,150 341,950 4.5% OTHER RETIREMENT CONTRIBUTIONS 30,000 30,000 0.0% MEDICARE 119,550 129,350 8.2% INSURANCE 986,750 1,002,350 1.6% WORKERS COMPENSATION 189,000 225,700 19.4% TOTAL PERSONAL SERVICES 10,967,200 11,671,000 6.4% SaoAlies OFFICE SUPPLIES 43,300 57,650 33.11A FUELS&LUBES 176,800 217,100 22.8% UNIFORM ALLOWANCE 76,800 68,400 -10.9% OPERATING SUPPLIES 602,950 652,950 8.3% EQUIPMENT PARTS 116,700 117,800 0.9% STREET SIGNS 31,500 31,000 -1.6% TOTAL SUPPLIES 1,048,050 1,144,900 9.2% Other Services & Charges AUDIT FEES 20,000 19,250 d.8% LEGAL FEES 220,000 230,000 4.5% PROFESSIONAL SERVICES 118,700 128,300 8.1% TELEPHONE 90,450 87,050 -3.8% POSTAGE 20,000 18,700 -6.5% TRAVEL/CONFERENCES/SCHOOLS 178,300 186,300 4.5% CAR ALLOWANCE 4,800 4,800 0.0% ADVERTISING/MARKETING 33,200 13,200 -60.2% PUBLISHING 15,600 18,800 20.5% PROPERTY/LIABILITY INSURANCE 157,600 150,300 1.7% UTILITIES 384,400 394,650 2.7% BLDG REPAIR/MAINT SERVICES 132,100 150,900 14.2% EQUIP REPAIR/MAINT SERVICES 374,750 437,400 16.7% CONTRACTUAL SERVICES 198,800 207,000 4.1% BUILDING RENT 1,650 1,900 15.2% EQUIPMENT RENTAL 25,200 27,000 7,1% UNIFORM RENTAL 7,950 900 -88.7% DUES & SUBSCRIPTIONS 51,250 55,050 7.4% TAXES & LICENSES 350 700 100.0% CREDIT CARD FEES 9,400 10,600 12.8% MISCELLANEOUS 29,200 33,950 16.3% EQUIPMENT REPLACEMENT CHARGE 289,450 310,000 7.1% TOTAL OTHER SERVICES & CHARGES 21363,150 2,496,750 5.7% CAPITAL OUTLAY - 108,500 - TOTAL GENERAL FUND EXPENDITURES $14,378,400 $15,421,150 7.3% General Fund Expenditures by Category Capital Outlay Services & Charges $108,500 Supplies $1,144,90 181 Services ,671,000 2018 BUDGET REQUESTED POSITIONS Department: Communications 101-1120 Sr. Comm. Coord. Planning 101-1510 Temp. Scanner Police - Patrol 101-2120 Patrol Officer #1 Police - Patrol 101-2120 Patrol Officer #2 Fire 101-2310 Captain - Safety Training GENERAL FUND TOTAL 4101 Regular Pay This is a newly 40,000 39,000 39,000 This is a newly 500 4102 Overtime Pay created position 100 100 created position 4103 Part -Time Pay and will be 9,350 - 11,900 and will be $ 58,500 1 4104 PERA evaluated 95,600 6,300 6,300 evaluated $ 117,800 4105 FICA 600 511 Start Date 1 311 Start Date 4107 Medicare 150 550 550 4108 Insurance 5,800 5,800 4109 Workers Comp 1,100 1,100 Total Personal Services 9 Additional Costs: Uniform Allowance Vehicle Phone/office furniture Train inglLicense Other Total Additional Costs $ Total New Position Requests $ Revenue/Expenditure Offsets: Recreation - adv/mktg Liquor - adv/mktg Net Cost $ 700 1 $ 10,100 1 $ 52,750 1 $ 52,750 I $ 7 (20,000) NOTE: THESE POSITIONS ARE REFLECTED IN THE GENERAL FUND BUDGET 11 900 900 650 53,500 Shared with #1 40,000 9,500 500 500 200 2,400 100 100 2,400 3,500 3,500 - 11,900 $ - $ 58,500 1 $ 5,000 is 43,250 95,600 $ 10,100 $ 111,250 $ 57,750 $ 117,800 511 Start Date 1 511 Start Date 1 311 Start Date (20,000) NOTE: THESE POSITIONS ARE REFLECTED IN THE GENERAL FUND BUDGET 11 2018 CAPITAL OUTLAY Funding Source Requested General Capital Outlay Gov't Department Item Amount Fund Reserve Bldg Fund Administration Election equipment - City contribution 15,600 15,600 Building Maintenance Facility Condition Assessment Software 32,000 32,000 32,000 Police Canine replacement 15,000 15,000 Vehicle- additional officers 53,500 53,500 Floor scrubber/sweeper (114 share of $61,000) 15,250 15,250 83,750 68,500 - 15,250 Information Technology Storage area network Cybersecurity countermeasures 25,000 25,000 Firewall upgrades 10,000 10,000 Laserfiche upgrade 10,000 10,000 Hardware/E=nterprise switch/UPS 96,000 x,990 Fiber network enhancements 10,000 10,000 Server/storage replacement 95,00- Mobile management system 46 Virtual desktop X999 75,000- 55,000 _ _ 55,000 Building Safety Permit/Plan Review/inspection Software x$99 X5,999 Streets Floor scrubber/sweeper (114 share of $61,000) 15,250 15,250 Fire Floor scrubber/sweeper (1/4 share of $61,000) 15,250 15,250 Vehicle - Captain 40,000 40,000 Turnout gear extractor 10,000 10,000 Turnout gear drying 10,000 10,000 75,250 40,000 35,250 General Fund Departments 276,850 108,500 70,600 97,750 08/14/2017 09/05/2017 City of Elk River Levied Preliminary Maximum Tax Levy Pay 2017 Pay 2018 Pay 2018 General Fund $9,969,250 $10,873,200 $10,725,800 Library 53,650 54,000 54,000 10,022,900 10,927,200 10,779,800 General Property Tax Levy Special Levies: 2010 GO CIP Bonds 368,030 369,500 369,500 Economic Development Tax Abatement 172,840 142,530 142,530 10,563,770 11,439,230 11,291,830 Total Levy General Fund Change from 2017 $903,950 756,550 Percentage Change from 2017 9.1% 7.6% Total Dollar Change from 2017 875,460 728,060 8.3% 6.9% Change Note: This will be adjusted as we go thru the budget process and do updates. 9/5/17 Adjustments: Revenues: Licenses & permits Transfers in Expenditures: Police - supplies/utilities Police - new patrol officers start 5/1 Fire - Captain position start 3/1 Fire - supplies IT- Microsoft Office 365 reduction Parks - fertilizer early purchase out of 2017 Recreation - advertising/marketing 101-0000-3214 (5,000) 101-0000-39XX (21,400) Revenue Additions (26,400) 101-2110/2190 (14,000) 101-2120-41XX (44,700) 101-2310-41XX (13,300) 101-2320-4219 (6,000) 101-1350-4404 (13,000) 101-5110-4219 (10,000) 101-5210-4349 (20,000) Expenditure Reductions (121,000) Tax Levy Reduction (147,400) Planning/Costs a Volunteer Event 287 volunteers. These numbers are based on 150 (or '/2) showing un Location Tangibles Costs Capacity Rockwoods Dinner $4,700 330 Name Badges 2 cakes Certificates 85 Appetizers $2,000 4 appetizers ■ 150 meatballs ■ 120 cheese/crackers • 90 egg rolls ■ 90 pinwheels Serrano Bros. Catering ■ Rolls $1,800 • Corporate drop off • Salad • City staff setup, serve, and cleanup ■ 1 meat ■ 2 choices of a potato, pasta, or ve we Lisa's Catering 1 Meat $2 000 ■ Unknown delivery fee 2 Sides • Staff setup, serve, and cleanup Coborn's 1 Meat $1,900 ■ Delivery would be from Zimmerman or Ramsey 2 Sides location ■ Staff setup, serve, cleanu Issue: Finding a location in Elk River that could meet capacity. Could host at a park, but weather a concern. Chow capacity is 80. Other Costs Entertainment $2,000 Invitations 60 Envelopes 110 Postage 145 Name Badges 100 Certificates 85 Total Cost Breakdown No cost induded far location rental fees. Food -$2,000 Entertainment -$2,000 Supplies -$500 TOTAL $4,500 THIS IS NOT REFLECTED IN THE BUDGET — WOULD COUNCIL LIKE TO HAVE IT ADDED?