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Home My WebLink AboutCC 08-24-1992 . . . MINUTES OF THE ARDEN HILLS COUNCIL BUDGET WORKSESSION MONDAY, AUGUST 24, 1992, 4:00 P.M. - CITY HALL CALL TO ORDER Pursuant to due call and notice thereof, Mayor Sather called the meeting to order at 4:10 p.m. ROLL CALL The roll being called the following members were present: Mayor Thomas Sather, Councilmembers Paul Malone, Thomas Mahowald, JoAnn Growe and Dale Hicks. Also present: Accountant Terrance Post, Program Supervisor Cynthia Severtson, Park Director John Buckley, Public Works Superintendent Dan Winkel and Acting Clerk Administrator Catherine Iago. ADOPT AGENDA Mahowald moved, seconded by Hicks, to adopt the Agenda as submitted. Motion carried unanimously. (5-0) DISCUSSION: 1993 PROPOSED BUDGET Council and staff discussion of the 1993 proposed budget resulted in several revisions to the document. SEE ATTACHED MEMORANDUM FROM CITY ACCOUNTANT POST, DATED 8-28-92, OUTLINING COMMENTS, REVISIONS AND COUNCIL DIRECTION. Councilmember Hicks left the meeting at 6:45 p.m. SCHEDULE PERFORMANCE EVALUATION FOR ACTING CLERK ADMINISTRATOR Malone moved, seconded by Mahowald, to schedule an annual performance evaluation for Acting Clerk Administrator Catherine Iago on Monday, 8-31-92, at 6:30 p.m. Motion carried unanimously. (4-0) Council requested Iago provide salary history information with the agenda packet. Public Works Superintendent Winkel left the meeting at 7:55 p.m. ~ -- . . . Minutes of the Arden Hills Budget Worksession, 8-24-92 Page 2 MISCELLANEOUS Mayor Sather reminded Council and Staff of the meeting with Congressman Vento to discuss the TCAAP property. He advised Architect Probst would be compiling information for this meeting. There was discussion relating to the Podlasek court case; it was suggested photographs be taken to provide documentation. Council discussed the proposed City Hall/Public Works facilities and the possibility of a referendum. ADJOURN Mahowald moved, seconded by Growe, that the meeting be adjourned at 8:45 p.m. Thomas R. Sather Mayor Catherine J. Iago Acting Clerk Administrator . ATTACHMENT TO OFFICIAL COPY OF AUGUST 24, 1992 BUDGET WORKSESSION MINUTES (SIX PAGES) CITY OF ARDEN HILLS ~ DATE: 1\ugUSt 28, 1992 TO: Mayor and city CoW'lCil Catherine J. Iago, Acting Clerk 1\dministrator John Buckley, Parks & Recreation Director Dan winkel, Public Works superintendent ~:@ SUIlJ'EX:r : Terry Post, City 1lcooUntant Revisions Resulting fran 8/24/92 Budget Worksession #2 BACKGROUND: After incorporating revisions fram Budget Work:session #1 on 8/19/92 and subsequent data received (i.e.; MWCC 1993 charges), the General Fund was in the following situation prior to the agenda items of Budget Work:session #2: . CATEl30RY 101 Revenue 101 Expend. SOURCE REI! 082492 REI! 082092 1992 Bm:x:;Er EST $1,855,688 $1,913,880 1.824,441 2,001.864 $ 31.247 $ < 87.948> PROPOSED 1993 $1,867,578 1,909,702 SUrplus <Daficit> $< 42.124> IDRKSESSION NO. 2 AGENDA ITEMS - exM-iENTS. REIlISIONS. & OJUNCIL DIRECI'ION: A. . DIRECIOR PARKS & RECREATION AREA OF RESPONSIBILITY 1. SUmmer Plavm-ound revenue and program costs essentially static. 2 . Skatincr rinks - estilnate:i rental costs for portable toilets substantially less than 1992 budget. 3. Park Maintenance - 1993 proposed temporary eJ.Tg?loyees (seasonal Park Maintenance workers) shows a 69 percent increase over 1992 estilnate (not budgete:i in 1992). '!he 1992 estilnate includes subsidized Ramsey Colmty work program eJ.Tg?loyee. '!he 1993 proposed assumes city not being able to participate in subsidized work program. Approx:i1nate $3, 000 rudget ~ct. If city had been unable to participate in the program in 1992, and assuming the same number of manweeks for another worker at an unsubsidized cost, the 1992 estilnate would be close to $13,000. A 3 percent increase on this base would be about $13,400. Council direction was to reduce cost bv $2,500 in 1993 from $16,720 to $14,000. . P1lGE TWO REVISICNl FRaI: 8/24/92 WClRKSESSlOO #2 The allocation of Park salaries to this deparbnent continues to increase (fram 69% in 1991; to 73% in 1992; to 75% in 1993) as salary cost is phased out of the Park Fund. Substantial in=ease to $29,600 in Miscellaneous Capital Equipnent represents the planned purchase of a Toro Groundsmaster mower for $16, 000. 4. Shade Tree Disease Control - Council direction to staff was to :i1mne::liatelv in=ease pricinC! by 50% for the removal of diseased trees from private prooertv. Anticipated i.npact was to reduce amount of operating subsidy from the General Fund in 1993. HCMever, i.npact of pricing change will be more evident for the 1994 Budget. This is because most of the 1993 trees are already marked and lCMer prices quoted. The 1992 hldget deficit is funded by a 1993 General Fund operating transfer expenditure. 5. . 6. Proqram Fund - Council gave direction to the Program Supervisor to manaqe the fund to a worst case $42.600 subsidy level \'/hile also evaluating revenue in=eases \'/here feasible and appropriate. Park Fund - state omitted a planned 1993 expenditure of $1,100 for Gateway FlCMer Gardens. The Park & Recreation Director also expressed an interest in redirecting some capital hldget resources in 1993. The net i.npact was to reduce the Capital Expenditures by $1,250 from $57,930 to $56,680. B. PUBLIC WJRKS SUPERlNI'ENDENI' AREAS OF RESPONSIBILITY: . \ 1. Government roildincrs - I:w salary reduction driven by allocation change. See comments in storm sewer section - Council requested the Public Works SUperintendent to remove the city's underground fuel tank in 1992. 2. Streets - 1993 I:w salaries are in excess of the 3 percent guideline. staff to adjust accordingly. Council direction to sell the existing street sweeper and utilize contract sweeping services in 1993. Council direction to reduce 1993 Pavement Manaqement Plan expenditures by $10.000 in 1993. '!he 1992 estimate costs of $210,000 include $20,000 per Keithson Drive reh1ild/repair. - ... ..... P1\GE THREE REV'ISICHl FRGI: 8/24/92 lQlKSESSICl'l #2 3 . storm Sewer 4. 1993 Public Works salaries should shON a higher than 3% increase because of a change in salary all=ation. Previously 3% of Public Works went to storm Sewers and 7% to government wildings. Beginning in 1993, 5% will go to storm Sewers and 5% to Government Buildings. Presently, 1992 non-assessable est:i1natei costs of $75,000 for the Keithson Pond and Arden Place project are reflected in this department. TIle expenditures of this entire department may leave the General Fund if a storm water utility furrl is established. In this ease, the 1992 Keithson and Arden Place project costs maybe funded out of the PIR Fund in 1992 only to be repaid in future years from storm water utility billings. Water utility - TIle 1993 increase in Public Works salaries exceed the 3% guideline. staff will revise accordingly. . 1992 Accounting and Audit fees should be $6915 instead of $3500. 'Ihis increase over the $2800 wdget reflects audit fees of $3100 and contract Accounting Services of $3815. Pro Forma of water utility furrl cash balance Balance of 12/31/91 145,620 Est:i1nate 1992 ne;j'ati ve cash. flON <19.678> EStimate Balance 12/31/92 125,942 Est:i1nate 1993 positive cash flON from operations without $125,000 water tower interior maintenance inprovement Less operating transfer to 501 to fund water tONer inprovement (5 years equal installments @5% interest) ESt:i1nate 12/31/93 cash balance 32,470 < 31. 250> $127.162 5. Sanitary Sewer utility - TIle 1993 increase in Public Works salaries exceed the 3% guideline, staff will revise acc:ordinJly. '. Accounting & Audit fees comment similar to that made in the Water utility section. Pro Forma of Sewer utility furrl cash balance Balance of 12/31/91 304,721 Est:i1nate 1992 negative cash flow < 139.925> ."ll . P1\GE FOUR REVISlOOS F.Rt:J.I 8/24/82 lQUtSESSION #2 Fst:i1nate 12/31/92 balance Fst:i1nate 1993 positive cash flow fram operations Fst:i1nate 12/31/93 cash balance 161,796 40.143 201. 939 6. Recvclincr Fund - 1993 Waste Recycling Forecast to increase 4% on a tonnage basis ove: est:i1nate 1992. Individual billings fram Property Tax Service fees forecast to remain even with 1992 bldget level. Pro Forma of Recycling utility Fund Cash Balance Balance 12/31/91 -0- (New in 1993) Fst:i1nate 1992 positive cash flow Fstimate 12/31/92 balance Est:i1nate 1993 positive cash flow Fst:i1nate 12/31/93 balance 7245 7245 3110 10355 . Cash balance objective = Monthly Waste Recycling Fees ($2528) * 6 months (delay until May property Tax settlement) = $15,168. BUIX;Er OVERlAYS C. (b) Cable TV Fund (c) Re:iuction of PIR - (d) Sale of Existing site 1. New Public Works Facilitv - Council direction to obtain Tax levy Impact for City in total and for an ave:aged price home ($125,000) eve: a range of bond issues fram $2,000,000 to $3,000,000 in $100,000 increments. city A=untant to obtain this data l::efore budget worksession #3 on 8/31/92. / City A=urrtant to research if bond refe:endum inpact must l::e included in preliminary certified levy subnitted on 9/15/92 for T.tuth in Taxation purposes. 2. New City Hall Facilitv - Council made it clear that this project was not linked to successful passage of Public Works Facility Bond Refe:endum. Funding sources include: (a) Fund 315 (Refund Bonds) $600,000 ($250K '93 & '94 receipts) 75, 000 (Dedicated to 1993 & 1994 AV F4tllp) $0 - $350,000 (Assume Public Works Site Absorbs Acx;tuisition Costs) $500,000 (If no SWap to Obtain Site) :i I ! , , . . . '. P1loGE FIVE REVISIONS FRQol 8/24/92 w::RKSESSIOO #2 For budget p1.!r[XJSeS, assume no occupancy and attendant operating costs in 1993. 3. Headcount Additions - Council directed staff to be prepared with work flow timing, task descriptions, job descriptions and d=umented need analysis before Council would be comfortable considering full-t:i1ne headcount additions. 4 . In-House Data ProcessinC! - Council gave prel:iJninary approval to proceed with this overlay. Of total capital costs of $21,000, approximately 2/3 would be fW1ded from the Water and Sewer utility Funds. 1993 inpact on the General Fund would be as follows: croSE 1992 LELGERS IN PPI a) 1/3 Hardware Costs b) 1/3 Software Costs (YE ADJUSTING ENTRIES) $3,300 3.200 $6,500 c) Reduce plarmed PPI costs from $7400 to $2400 < 5,000 > (still a requirement to complete processing 1992 transactions into 1993) ------- d) Net OVerlay IrrqJact < $1. 500 > 5. storm Water utility - Council generally agreed to inplementation of such a utility charge. If inplemented for 1st quarter 1993, and existing storm Water utility Maintenance Budget moved into a new Enterprise Fund, a possible $24,000 W1dersperxling in the General Fund. Subject needs additional research, refund revenue estimates and a public hearing process if instituted. 6. Restore General Fund Balance - Given the tightness of the Expenditures Budget and the unpredictability of collecting increasingly higher HACA Aid, the best strategy may be to be very conservative on revenue estimates. 7. FrinC!e Benefit Review - Council generally agreed that the area should be reviewed. Councilmernber Mahowald volunteered to work with staff to explore the topic. D. REVISIONS :FRCt>1 BUDGEr IDRKSESSION #2 'Ihe follCMing changes directed by Council from W=ksession #2 were incorporated into the rodget: 1. Public W=ks salaries were adjusted to reflect a guideline 3% increase. . . . '. . . . . l'1\GE SIX RE.VISICN3 FRrn 8/24/92 waucsESSION #2 2. Reduce seasonal Park Maintenance employee cost fram $16,720 to $14,000. 3. Administrative Office Capital Expenditures were reduced fram $3500 to $1500 for computer El:juipment & Software. 4 . Pavement Management Program costs in the street Maintenance Department were reduced from $115,000 to $105,000. The effect of these revisions was to leave the General FUnd in a $1244 deficit position for 1993. The accepte:i overlay of adding in-house computer capability for 1993 was then adde:i, which created a General FUnd Deficit of $2744 ($6500 additional costs offset by a $5000 reduction in PPI costs) . 'Ihis remaining General FUnd Deficit was eliminated by the following expenditure reductions: 1. Building & Grounds Maintenance was reduced fram $8500 to $7000. 2. Contract Sweeping in the street Department was reduced from $15,000 to $14,000. 3. Dog Ordinance expenses were reduced fram $3650 to $3400. These actions resulted in the General FUnd being in an In Balance =nclition. Additional Items to Note: 1. $75.000 was transferre:i fram the stann Se.ver 1992 Estimate and put in PIR (FUnd #501) Contractor Expenditures . I 'I ~ i j 1 , 2. A $36.717 invoice from Ramsey County for the city's share of the Lexington Avenue CUrb & Gutter Project is now reflected in the 1992 Estimate of the Iexington Avenue 90-1 Fund (#409). 3. $25,000 was shifted fram 1992 Estimated Miscellaneous Revenue into 1993 to reflect the planne:i sale of the JD Tractor in that year. ~ i ~ , i! i I ... TRP/rk ~ ~