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Home My WebLink About3C, 2012 Budget Parameters� EN HILLS Request for Council Review � Prepared By: Sue Iversan , Director of Finance and work Session Date: 5/16/201 I Administrative Services 2012 Budget Parameters Discussion Topic: Disc�ss and give staff direction on the 20 i 2 Operating Budget and 2012-201 b CIP. SuAportin�_Documents; 1. Memorandum dated May I6, 20I 1 from Sue I�ersan. 2. Attachment A: CIP Prajects by Category. 3. Attachment C: Equip�nent CIP. � EN HILLS MEMORANDUM DATE: May 16, 2011 TQ: FROM: SUBJECT: Honorable Mayor and City Council Patrick HIaers, City Administrator Sue Iverson, F�auauce Direcfor/Treasurer 2012 Prelimi�ary Budget Discussion BACKGROUND: The City stafF will begin the process of developing a Prelimi�ary 2012 Budget. As we progress forward and talce the necessary steps, staff needs general directio� and guidance from �he Council with regards to changes for the coming year. As af this ti�ne, we are under �evy limits �ar 2012. The Implicit price deflator (IPD) cannot be below zero. C�rrent estamates are at 2.532%. The Minnesoia Department of Revenue s�ts this in early July, so we do not have the actual number yet. We did not le�y io our full maximum lasi year vvhen we take inta account special levies. Selow is a sutnmary of Iast year's levy limit and actual levy adopted by the City Council. Pay 2f�1�. Le�y ��era�l Le�y Limit Specia) Le�ies Total Levy Limi� City Adapted Levy Unused Le�y $2,058,602 1,227,632 $3,286,23�[ $3,OS8,964 $ 197,27Q Memo 2012 Budget Memo z DISCUSSION: Preliminarily, sta��has identiiied a number of factors that will influence the 2D12 Budget. Some are identified as follows: • Taa� Levy — what is the Council's comfort level? Last year it was a 0.81 % increase. A 1% l�vy increase translates to approximately $30,000. • Overall budget change� — preferences/limits? • Persor�nel — Staff does not see a change in personnel under current conditions, however, if the Vikings �tadium proposal would pickup and witi� the website ar�d communications needs that have been identified through the Council goal setting sessions, there could be additianal needs in the Community Development department and/or the Administration department. • Salaries and Benefiis. The Council did a market study and updated our pay scales in December of 2007. We did �ot have a COLA increase in 2010 for non-union employees and the Council has given a 1% increase so far in 2011. The union employees did have a COLA increase of 3% for 2010 and the current contracfi has a 0% increase for 2011 and 2D 12. The council has requested staff to do some research ir� camparing Arden Hills to other cammunities which will be presented to the City Council in 3une or July. Would the Council like staff to rlui various alierr�atives dwrzng the budget proc�ss this year? • Increase in employee benefits costs {health and dental}. We do not have preliminary nurnbers for these costs yet, but will be getting these in the next few months. O�r insurance pool went out for bids and rates in 2009 for 2010 and we received a 1% increase in 2009 and a 13% decrease in 2010 so our insurance costs renr�ained flat in 2011. We did go aut for various bids with other �'irms in 2009 and we did not experience favorable rates. Sta.ff recammends staying with the current insurance provider at this tim�. Until we get the actual numbers, a 1 S% increase wzXl be used. The current City car�tribution towards health and dental is $fi80.21 per rrzanth which was no change from 2010. Over the past few years, the Council had approved budgeting for SO% of the increase in prernium. In other words, ihe City equally shared the xate increase with �Iie ezx�p�oyees. Would this be an appropriate formula to continue to use for budget pur�oses? • Update the fz�e year CIP. Attached is the current 2011-2015 CIP. Staff is current�y in the process o�updating this to disc�zss with the City Council a� the June worksession. Does the City Counczl have any feedback or direction they would like to provide sta�� with respect to the CIP? • An area where staff sees a neec� is ir� park funding. Pa�ric dedication fees are generally limited to capiial irr�provements nat general repair and maintenance items ar�d there is not a steady stream of income. In looking ai the fina�ncial plan, staff se�s a need to set up a reserve for pa�rk izxxpravements. This fund would then be a funding source for itenns which are incl�ded in the CI�. • As a step in creating a quality budgei documeni, perfozxz�an.ce measut'eslservice indicators need to be established for each department. Some o� these rnay come about as a resuit of tl�e cor�rnunity survey (if one is done) as areas that the Couzacil would lik� to improve. Goals and objectives also need to be established for each department. These would need to be established in 2012, then in subsequent years actual performance can be tracked to Memo 2012 Budge� Memo show progress against these goals. This would pravide Council and the public another tool to evaluate city services. Staff wauld appreciate input from the Council on this matter. RECOMMENDED ACTION: Staff is seeking directian frozn the Council as it continues wiih the 2012 Budgeting process. Attach ment A CIP Projects by Category City of Arden Hills, Minnesota Capital Improvement Plan 2011 thru 2015 PROJECTS BY CATEGORY Category Project# Prior'rty 20ll 2012 2013 2014 2015 Total Economic De�l Improvement Gateway Signs 11-EDA-001 nla 15,UOD 15,fl00 t5,000 � D 45,000 Economic Devl Improvement Total 15,fl00 15,fl00 15,000 0 4 45,000 Eqaipment• Of�ce Springbrook SofN�rare Upgratle 10-Teo-00ti nla 21>638 2f,63& TechnologyandOfficeEquipment �1-Tec-0D1 n1a 13,000 13,Ofl0 13,000 13,060 13,000 65,OQ0 Audio Visual Equipmeni t9-Teo-002 Na 20,000 0 0 0 0 20,OQ0 Equipment: Ok'fice Total 5b,638 13,U00 13,000 'E3,aoo 13,000 f08,838 �_._. Park Capi�al Improvements Valenfine Park Improvements 1D-Park-005 nla 2$0,000 260,000 Park Bench Implementation 1�-Park-033 nla 5,000 5,000 5,060 5,000 20,000 Mourtds View HS Trail Connection 11-Park-009 n!a 105,000 105,000 Hazelnui Park Land Purc�ase 11-Park-002 n!a 36q,000 360,000 Playgmund Structure Replacement 11-park-xyz nla 50,000 50,000 Par�Ameni6es 11-park-zzz n!a 5,06a 5,Oa0 5,004 5,000 5,040 25,000 WestRountll.ake'�raif 13-Park-OD1 Na 120,UOa i20,00D Couniy Road E Trail 13-Park-010 n!a 348,900 348,i00 Coun€y Road E Sidewalk lmprovements (Bridge) 13-Pa�c-011 nla 2,500,000 2,500,000 S�elling Avenue Regional Trail 14-Par€c-008 nla 2,284,149 2,284,149 Park Ca�ital Iinpro�ements Total 68Q,OOD 10,00� 2,63�,000 2,399,149 353,16U 6,072,749 Park Maintenance � W�--� - � Baske4balf-Tennis Court & Trail RehaBilitation 09-Park-01U n!a 15,000 15,000 15,000 95,D00 60,�00 Park Maintenance TqtaI i5,0�0 15,000 15,000 15,OOQ 60,000 Public Safety Lake Johanna Fire Dept Equipment 09-Pu6-OD1 nla 95,378 192,211 16q720 123,106 6,594 578,OOi Public Safety Total 95,37fi 192,217 160,720 121,10D 6,594 576,00? Streets: Cracksealing & Seaicoat 2011 Crackseal and Sealcoat 10-Str5-464 nla 115,060 i15,000 Produced Usrng the Plan-It Cupital PlQnni�ag Sofl�vnre Friday, Muy 13, 2f)11 Category Project# Priority 2i�ll 2012 2013 20f4 2015 Total 2012 Crackseal and Sealcnat 12-StrS-061 nla 10U,OOfl 100,Oa0 2014 Crackseal and Sealcoat 14-StrS-063 n!a 135,Oa0 135,000 Streets: Cracksealing & Sealcoat TotaI 175,000 100,OU0 135,004 350,000 5treets: Mill & Overlay f(atie Lane h�€€[ & Overfay {2010} 1fl-StrM-058 n!a 6,000 8,000 2013 PMP Mill and Overlay 13-5frM-062 nla 50,fl00 1,162,50U 62,50U 1,215,000 Streets: Mill & Overlay Totai 6,000 50,0�0 1,162,5U� 62,50Q 4,281,aao Streets: Reconstrvction Vaientine Avenue Neighborhood PMP (2010) 10-5tr-037 n1a 47,000 47,000 Nursery HillfWyncrestlArden View PMP (2011) 11-Sfr-025 Na 1,551,000 81,500 1,632,500 Highway 96 (Old Highway 8 to US Highway 10) 11-Str-055 nla 335,000 335,000 Co Rd E Impr between Hwy 51 & LexingEon Ave 12-Str-060 Na 270,000 2,2Q0,000 2,47'0, 000 Ridgewoo� Asbury PMP (2014j 14-SV-064 nla 55,Ofl0 1,573,500 85,500 i,7i4,0a0 West Round Lake Raad PMP (2015) 15-Sir-042 n!a 56,000 1,082,000 ?, i32,00d Indian Oa[cs PMP [2016j 16-Str-065 nla 75,000 75,000 Streets: Reconstruction Total 2,203,000 2,281,500 55,Ofl0 1,623,586 1,242,500 7,405,500 rtreets:Misc Regulaiory Street Sign Replaceme�t 11-51r-001 Streets:Misc Total Unassigned Forestry Implementation Plan 11-park-yyy Ur�assigned Total �UtiGty lmprove�nents Reconstruct L9ft Stations t 1 and 43 10-Sew-0�3 Sanitary Sewer Pipe & Access Road at LS #7 11-5ew-0Ot Water Meter U pg rades 11-W-003 Install SCADA System 12-Sew-0D4 Reconstrucf Lift 5tations t and 12 14Sew-064 Utility Im�rovements `I'otal Utiliiy Maintenance � � Sanitary Sewer (I&I} Mifigation 09-Sew-OU� Sewer LininglRehabilitation 09-Sew-002 Sform Pond Maintenance 09-Storm-0fl1 RepaidRepaintSout� WaferTower 09-W-002 5urface Water Management Plan Updaie 10-Stnrm-Ofl1 nla 5,000 1D,004 5,000 5,000 5,000 30,000 5,000 44,004 5,U00 5,000 5,000 30,000 nla 3D,OOQ 10,OOD 10,000 10,aao 10,000 i0,00Q 30,OOD 40,00� 1D,000 10,OQ0 16,000 70,000 nla 385,006 385,OQ0 nla 156,004 150, 000 nla 60,000 115,000 145,000 t15,000 405,000 nla 20Q,OOQ 200,000 nla A10,000 4�0,000 445,000 465,004 'E15,4D0 525,000 9,550,U00 nla nla nla nla nla 106,104 1pQ,ODa so,00a 55,144 104,00a 140,104 125,OOQ 5a,oao t00,100 t25,U0D 50,U00 �oo,noa 1p0,100 160,100 50,000 50,000 500, 500 350,000 250,000 555,i40 100,0�0 Produced Usirrg I{te Plan-li Caprtal Planning Sofhvare Friday, May 13, 2011 Category Project# Priority 2011 2012 2013 20I4 2015 Total Utility Maintenance Total 405,24� 275,1fl0 775,100 150,100 150,100 l,755,640 GR.AND TOTAL 4,069,254 3,436,811 4,958,320 5,D59,349 1,780,294 19,302,028 Produced U.sing the Plan-It Capital Planning Snfhvare Friday, May 13, 2011 Attachment B Equipment CIP City of Arden Hills, Minnesota Capital Imp�ovement Plan 2011 thru 2015 Category PROJECTS SY CATEGORY � m�-- e � � � Project# Priority 2011 2012 2013 2Q14 2015 Total Equip�nent: Public Warks � Skitl 5teer Loatler-Snow Blower 1 t-Eqp-045 5600T Toolcat Wor� Machine SummerAocessories 1 �-�qp-xxx Brush Chipper 12-Eqp-0Ut Toro Gmundsmaster wlBroom 12-Eqp-0�2 Replace 1997 Toro Workman wl5p�ayer 12-£qp-004 Replace J Type Tamper 12-Eqp-005 Replace 1996 Rol�er 12-Eqp-006 fteplace 1993 7oro 7urf Aerator 13-Eqp-001 Replace 2DU2 GroundsmasEer with Snow Blower 13-Eqp-003 Replace 1997 Shreet 5weeper 13-Eqp-pD4 Replace 2000 Backhoe 15-Eqp-003 Equipment: Pablic Works Total Vehicles Replaoe Jetter and Vactor Truck with Combo Nfachine 11-EqpV-p04 Replaoe 9997 Dump Trvck wlPlowlWing PIowlSander 12-EqpV-002 Replace F250 Pidcup Tnsck with Plow 12-EqpV-OD3 F-350 One Tan Tnrck W!€�ump & Plow 12-EqpV-009 Replace 1998 �ur�ptruckwlPfowfWinglSander 13-�qpV-001 Replace 2001 F450 One Ton �umplPfowlSander 13-EqpV-002 Replace Trailer 13-EqpV-fl10 Replace 2a42 F450 One-Ton wlDumplPiowlSantler 1G-�qpV-001 Replace Turf Sweeper 94-EqpV-005 Replace Pick up Truck #201 14-EqpV-010 Vehicles Tatal GRAND TOTAL n1a 50,fl00 50,000 n!a 11,000 11,000 Na 50,000 50, 000 n!a 38,fl00 38, 000 nla 28,fl00 28, OOQ n!a 5,400 5, �00 nla 10,U00 10, 000 n!a 10,flfl0 10,000 nla 39,000 39, 000 nla 130,600 130,000 nla 85,�00 85,000 81,OU0 131,000 169,Q00 95,U00 45&,OQO n!a 300,000 3�0,400 n!a 150,000 150,000 n!a 35,Ofl0 35,OOd nla 35,040 95,000 nIa 150,000 150,000 nIa 80,000 80,000 n!a 10,OD0 i0,000 n!a 60,000 60, OQO nla 18,000 ?8,000 nla 35,fl00 35, OQO 3a0,OQ0 220,U40 70,000 113,400 150,aao &53,00� 361,000 351,060 239,004 113,000 245,400 f,309,�00 Produced U.ring the Plah-It Capitrrl Planhnzg Snfi�vare Friday, May 13> 1011