5.3. SR 06-11-2007
ITEM # 5.3
MEMORANDUM
TO:
Mayor & City Council
FROM:
Lori Johnson, City Administrator
DATE:
June 11, 2007
SUBJECT:
Budget Discussions
We will start very general budger discussions on Monday with the public works departments,
including streers, snow plowing, equipment services, engineering, and building maintenance.
These budget worksessions with department heads and division managers are an opportunity
for them to explain their staff and capital outlay requests and to present their 2008 goals to
the Council. It is also an opportunity for the Council to ask questions, give staff their goals
and program requests for the upcoming year, and to discuss other items of interest with each
department head. We will not be discussing each department's budget in detail; budget
detail will follow in August and September after the Council's preliminary comments are
incorporated.
First, we will be discussing the public works budgets, focusing mainly on staff additions,
capital outlay, and program changes. Phil Hals, Street Superintendent, has several items he
wants to discuss including policy changes for snowplowing and mailbox replacement. We
also want to formalize a sidewalk and trail maintenance policy addressing the sidewalks and
trails that the city will plow and the ones that are the responsibility of the adjacent property
owner.
Second, I would like some input from the Council on your target tax rate for 2008. For the
past several years, the Council's goal has been to keep the tax rate constant; that goal has
been met and the tax rate even dropped slightly for taxes payable 2007. We've seen
increases in net tax capacity from 12-15 percent over the last few years that have allowed the
city to increase the tax levy without increasing the tax rate. Obviously, the amount of new
development, particularly housing, has slowed considerably and the value of existing
property is not rising as quickly as in the past; therefore, we do not expect the net tax
capacity to increase as much this year as in the past. In fact, the increase may be
substantially less. The net tax capacity for taxes payable 2008 is based on the property value
as of January 1,2007, which includes new construction started or completed in 2006. That,
plus the addition of the YMCA debt, will affect the tax rate which ultimately determines how
much tax revenue is available for other non-debt funds including the library and general
funds. Before putting together projected budget numbers for presentation to the Council, I'd
like to get a feel from the Council on where your target tax rate falls for 2008.
Finally, here is a brief overview of the budget timeline that I will discuss in more detail at the
meeting. The proposed budget and maximum levy need to be approved by the City Council
for certification to the County by September 15. We are cunently compiling all the budgets
that have been submitted by the division managers and department heads. One of the last
pieces of information that we wait for before fmalizing the tax levy is the estimated net tax
capacity; we typically receive it around the beginning of September from the County
Assessor. We anticipate that schedule to be the same this year and would look for final
approval of the maximum tax levy from the Council on September 10. The Council will
have had an opportunity to review the entire budget prior to that time. Again at the July and
August worksessions, department heads will be present to present in general their staff
additions, capital outla.y, goals, and program changes. With the Council's input from these
worksessions, we will put together a budget for presentation in detail later in August that will
align the goals the department heads have developed and programmed into their respective
budgets with the Council's goals.
2
REQUEST FOR ACTION
To
Ma or & Ci Council
Agenda Section
Consent
Item Description
Public Works Expansion and Associated Issues
Meeting Date
une 11, 2007
Item Number
5.3.A.
Prepared by
Phil Hals, Street Su erintendent
Reviewed by
Reviewed by
Action Reauested
Request to proceed with the purchase of two temporary office trailers. One for the Park Foreman's
office and Park Department meeting room and one for the Street Superintendent and Assistant Street
Superintendent's office.
Backaround/Discussion
In 2006, the City Council approved hiring Oertel Architects to provide a public works site master plan
and to determine if the present location for the Street and Park Department will still be able to function
efficiently in 20 or 30 years. The conclusion was that this site will work, but would not function as
efficiently as a newly designed facility on an open piece of property.
The price tag for Phase I was estimated at 6.5 million dollars. Using typical finance methods, Staff feels
that it will be several years before construction could begin. Once started, construction will take about 12
months to complete.
In the mean time, we need to address some pressing needs for the Street and Park Department. The
most critical need is for offices and a meeting area for the Park Maintenance Department. Staff
recommends the purchase of two temporary office trailers. One trailer to be used as the park
maintenance office and meeting room, and the second trailer as offices for the Street Superintendent and
Assistant Street Superintendent.
Financiallmoact
In 2006, the City Council approved spending up to $25,000 for temporary offices for the Street and Park
Department.
Attachments
None
Action
Motion by_
Second by _
Vote
Follow Up
C:\Documents and Settings\ljohnson.ELKRIVERPD\Local Settings\ Temporary Internet Files\OLK45\6-6-07 Me memo Public Works
Expansion.doc
ITEM 5.3.A.
MEMORANDUM
TO:
Mayor and City Council
FROM:
Phil Hals, Street Superintendent
DATE:
June 6, 2007
SUBJECT:
Information on Sherburne County Funding of Composting
Activities
In March, the Sherburne County Municipal Recycling Board (Cities of Becker, Big Lake, Elk
River and Zimmerman) applied for a SCORE grant of $50,000 through the Sherburne
County Solid Waste Conunittee to fund the out of pocket expenses involved with grinding
brush, composting leaves and grass clippings. The SCORE Conunittee recommends
$48,000 for 2007 and a reduction to $40,000 in 2008. The volunteer conunittee feels that
the money is better spent for educational opportunities. What this means for Elk River and
the other three cities is that we will need to fund a portion of the grinding costs, as well as
the labor and equipment costs that we now bear.
It is the intention of the SCORE Conunittee to reduce funding by 15% each year until the
cities are totally funding their own programs, therefore we must explore other funding
options. One option is to charge a dumping fee and that would include installing control
gates, a card access system and a video surveillance system at each compost facility. A small
fee could be attached to a card system for residents and a more appropriate fee for
conttactors that use this facility. The fees would help offset the reduction in grant funding.
This type of controlled access could be impacted by the street garage building expansion at
our compost drop site Another option would be for Sherburne County to fund the
composting operations, since it is such a popular program through out the county.
To offset the reduction in SCORE grant funding, the Street Department budget for 2008
contains a request for $2,000.
6-6-07 M&C county funding on composting.doc
REQUEST FOR ACTION
To
Ma or & Ci Council
Agenda Section
Worksession
Item Description
Discussion on Snow Plowing Policy
Meeting Date
une 11, 2007
Item Number
5.3.A.
Prepared by
Phil Hats, Street Su erintendent
Reviewed by
Reviewed by
Action Reauested
Staff requests direction for revisions to the snow plowing policy.
Backaround/Dlscussion
After the heavy snowfall last February and March, it became apparent that we need to make some
adjustments to our snow plowing policy. Since the explanation for some these items is rather lengthy, I
will list the issues in the memo and plan to do the explanations during the discussion time at Monday's
council meeting. I will then incorporate the Council's comments into a revised snow plowing policy that
will then be presented for the City Council to adopt at a future workshop meeting. The issues for
discussion are as follows:
Mailboxes
. Set standards for new developments and reconstruction projects regarding mailbox specifications
and installations
· Discuss criteria for mailbox repair
. Establish a repair or reimbursement policy
Cul-de-sacs
. Discuss plowing concerns
· Changes in plowing procedure
. Center islands for snow storage
Sidewalks
· Define which sidewalks are plowed with City equipment and establish a policy to deal with future
sidewalks
· Define which streets, where sidewalks abut the back of curb will have snow hauled away and
when.
Miscellaneous
· How to deal with residents that plow their snow across City streets
Financiallmoact
Attachments
None
Action Motion by _
Second by _
Vote_
Follow Up
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ITEM 5. 3.B,
2008 CAPITAL OUTLAY
Department
11em
Raquesled
Amounl
General
Fund
Fundi"!:! Source
EquIpment Copllal Outlay
Certificate Reserve
0""
Fund
Department
T<''''
Information Tech Phone System Upgrade at Fire Station 1
Microsoft licensing
HP Storage Area Network
BarracuDa S amMrus Firewall Re laeeman!
60,000
10,000
30,000
15,000
5,000
City Hall/Building Maintenance New vehicle with plow
2 water heaters
32,000
8,500
40,500
Building
Scanning Equipment
55,000
55,000
Police
3-Mobile video cameras
Squad Cars (3)
Upgrades to 800 MHZ radio
Mobile Squad computers (3)
Police software - LETG repayment
eso Vehicle
19,000
99,000
10,000
18,000
57,600
30,000
233,600
Emergency Mgmt
Siren Mississi i Rd and Rawlins St NW
Streets
Front End Loacier (replaces 305)
BackHoe
Steel Roller
Skid Loader Trailer
Crack Router
1 Single Axle with Plow (replaces 223)
Skid Loader Trade
4x4 telescopic lift
Roof re air - Street
Engineering 10,000
10,000
5,000
25,000
Sr. Citizens 10,500
20,990
31,490
Park Maintenance
49,000
7,500
23000
" 79,500
""
'"'0' 993,940
Linner 16,000
16,000
Boat Dock 3,800
Electronic checkout 18,000
Floor Scrubber 5,400
27,200
Electric Resurfacer 106,000
Replace battery in Electric Resurfacer 9,500
Li~hl fixtures in the Olvmpic rink 55,000
170,500
Wastewater Safety grates for wetwelis 35,000
New control panel - lift 15,000
Inew confined space entry tn-pod/lifeline 5,000
55,000
Liquor
Total $1,262,640 $0 $0 $0 $0 $0
61712007