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Home My WebLink About2002-08-26 CC Worksession r ,- COUNCIL WORKSESSION MONDAY, AUGUST 26, 2002 6:30 P.M. L CALL TO ORDER 1. Roll Call 1L APPROVAL OF AGENDA ill AWARDSIPRESENTATIONS/APPEARANCES lV. PUBUC HEARINGS V. COUNCIL BUSINESS 1. Budget (Revenue & Other Expenses) VL CONSENT AGENDA V1L APPROVAL OF COUNCIL MINUTES vm ANNOUNCEMENTSIUPDATES IX. ADJOURNMENT J. (i . ~~~ Cory . . ,'i-tervi{[e },. 'Esta6{ished 1857 City of Centerville Proposed 2003 Budget Third Draft August 26, 2002 . c. City of CentervilIe Proposed 2003 Budget Third Draft August 26, 2002 Table of Contents ~ Narrative and Proposed Summary Budget · Estimated Property Tax Implications · Proposed Capital Expenditures & Annual Requirements · Fund Reserve Analysis · Payroll · Miscellaneous · Budget Detail 1.- It, I I NARRATIVE AND PROPOSED SUMMARY BUDGET f City of Centerville Narrative for 2003 Proposed Budget Third Draft August 26, 2002 Attached is the third draft of the budget for the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds for the City of Centerville. This report is intended to describe any significant changes to the second draft of the budget. Capital Outlay expenditures were difficult to compute without a current capital improvement plan. Therefore, much discussion and work should be focused in that direction. However, we have done some preliminary work in this area as shown in the attached worksheets. The following changes were made to the second draft budget: Tax Levy Due to varying opinions of council members, the tax levy is being proposed at the levy limit of$1,562,680. Due to increased tax capacity, Centerville taxes will be reduced by approximately 9.8% for taxes payable in 2003, even with the maximum levy (see attached tax calculation worksheet). Staff is recommending the maximum levy due to extensive capital needs. In addition, General Fund reserves are below the recommended amount. Preliminary estimates of annual capital frmding requirements are attached. Requested budget cuts and changes have been made. Any additional levy capacity up to the maximum limit has been added to the street replacement account. If council desires to decrease the levy, the street account can be adjusted. Staff At the request of council, the part-time park intern was eliminated from the Parks Program budget. This resulted in a savings of approximately $15,000. Salaries & Benefits C.O.L.A. was reduced to I %. A flat amount of $620/month (the equivalent of the union insurance contribution) was budgeted for all employees for the cafeteria plan. The two union employees were given a 4% step, in addition to the 3% C.O.L.A. required under the contract. Budgeted overtime for the Public Works Director was cut in half. Revised payroll calculation worksheets are attached. Council should adopt the salary schedule before year-end. State Aids There is a great deal of uncertainty about the Local Government Aid. Since LGA does not represent a significant percentage of the City's total revenue projection, I would not be greatly concemed over a reduction in LGA. See the attached letter from the League of Minnesota Cities for further guidance. Miscellaneous Minor cuts were made in areas in which little or no history of expenditures occurred. This is an attempt to reduce unnecessary line it<;lns. Changes were made, as shown on the attached budget adjustment worksheets. Capital Improvements A rough estimate (attached) of the city's annual capital requirements is proj ected at over $600,000. The proposed capital outlay budget for 2003 is set at $470,424. I would recommend that a street and water study be completed by the city engineer in an effort to plan more efficiently. A street plan and a water management plan would greatly aid in the development of a new five-year capital improvement plan. The amount of$15,000 for each study was included in the proposed 2003 budget in the Street Account and Water Fund, respectively. Enterprise Minor changes in this area, but more discussion is needed. The Water and Sewer Funds include proposed budgets for capital projects, (i.e., replacement of water tower, new well, pond work, etc.) These numbers will be adjusted as council further prioritizes projects and determines the amount of fund balance to be utilized. A fund balance analysis is being prepared for the benefit of the council in making these decisions. Respectfully Submitted: Approved By; Finance Director Administrator City of Centerville 2003 Proposed Budget and Tax Levy -- H (With PriorYear Comparison) - -- 2002 Budget and Tax Levy Expenditures Revenues Fund Balance Tax Levy General Fund 1,797,613 316,990 -r---- 0 1,480,623 -- Debt Service 0 0 -- ,- 0 0 Capital Projects 0 0 0 0 Enterprise 0 0 0 0 Special Revenue 0 -0 0 0 1,797,613 316,990 0 1,480,623 - 1--- -- , -. r=-:-- 2003 Proposed Budget and Tax Levy - +---cc-- Expenditures Revenues Fund Balance Tax Levy - General Fund 1,981,526 10.2% 418,846 32.1% -- 0 0.0% 1,562,680 5.5% Debt Service 470,424 185,436 -284,988 0 Capital Projects 204,505 42,950 c----- ----=161,555 0 -- - Enterprise 1,252,464 638,000 -614,464 0 -- f---- Special Revenue 9,791 15,200 5,409 0 3,918,710 1,300,432 -1,055,598 1,562,680 8/21/2002 3:45 PM Budget and Tax Levy Comparison City of Centerville 2003 Budget Summary I I I Date of Presentation: August 26, 2002 Budget Draft: Third Budget Proposed Variance %Incr. 2002 2003 +(-) (Deer.) General Fund Revenues: Taxes 1,480,623.00 1,562,680.00 82,057.00 5.54% Licenses & Permits 200,500.00 217,400.00 16,900.00 8.43% Fines & Forfeits 25,000.00 20,000.00 (5,000.00) -20.00% Intergovernmental 15,000.00 115,346.00 100,346.00 668.97% Charges for Service 500.00 1,600.00 1,100.00 220.00% Interest 40,000.00 20,000.00 (20,000.00) -50.00% Miscellaneous Revenue 31,940.00 33,000.00 1,060.00 ~~ Refunds & Reimbursements 4,050.00 11,500.00 7,450.00 183.95% Total Revenues r-' 1,981,526.00 - . 1,797,613.00 183,913.00 10.23% Expenditures: _.- Current General Government Mayor and Council 16,530.00 17,550.00 1,020.00 6.17% --- Elections 3,085.00 0.00 (3,085.00) -100.00% Planning & Zoning 6,780.00 5,850.00 (930.00) -13.72% Economic Development 6,280.00 6,000.00 (280.00) -4.46% - Administration 310,730.00 338,970.00 28,240.00 9.09% Financial Administration 15,000.00 8,000.00 (7,000.00) -46.67% Assessing 17,500.00 17,500.00 0.00 0.00% Legal 62,000.00 74,000.00 I 12,000.00 19.35% Engineering Services 14,250.00 15,000.00 750.00 5.26% Insurance 0.00 0.00 0.00 - Building 28,100.00 21,600.00 (6,500.00) -23.13% Total General Government 480,255.00 504,470.00 24,215.00 5.04% Public Safety Police Protection 430,000.00 484,549.00 54,549.00 12.69% Fire Protection 76,000.00 91,621.00 15,621.00 20.55% Building Inspection 97,128.09 92,393.00 (4,735.09) -4.88% Electrical Inspection 4,000.00 6,000.00 2,000.00 50.00% Civil Defense 1,300.00 1,100.00 (200.00) -15.38% Animal Control 350.00 500.00 150.00 42.86% Total Public Safety 608,778.09 676,163.00 67,384.91 11.07% I 8/21/2002 3:34 PM budget summary . Budget T Proposed Variance %Incr. 2002 I 2003 +(-) (Deer.) Public Works I Public Works 197,941.46 148,884.00 (49,057.46) -24.78% Streets 55,000.00 15,000.00 (40,000.00) -72.73% Street Lighting 32,000.00 25,000.00 . (7,000.00) -21.88% Total Public Works 284,941.46 188,884.00 (96,057.46) .33.71% I Culture and Recreation Park/Rec. Committee 1,780.00 2,080.00 300.00 16.85% Park/Rec. Programs 41,523.82 13,750.00 (27,773.82) -66.89% Park Maintenance 74,551.47 54,663.00 (19,888.47) -26.68% Total Culture and Recreation 117,855.29 70,493.00 (47,362.29) -40.19% Miscellaneous Miscellaneous 0.00 0.00 0.00 City Festival 10,000.00 10,000.00 0.00 0.00% Total Miscellaneous 10,000.00 10,000.00 0.00 0.00% T Total Current Expenditures 1,501,829.84 1,450,010.00 (51,819.84) -3.45% I - Capital Outlay General Government 25,000.00 29,000.00 4,000.00 16.00% Public Safety 0.00 0.00 0.00 Streets and Highwavs 121,500.00 442,280.00 320,780.00 264.02% 1-. Culture and Recreation 23,500,00 0.00 (23,500.00) -100.0~ - Total Capital Outlay 170,000.00 471,280.00 301,280.00 177.22% Total Expenditures 1,671,829.84 1,921,290.00 249,460.16 14.92% Excess (Deficit) of Revenues 125,783.16 60,236.00 (65,547.16) -52.11% Over Expenditures I ,- Other Financing Sources (Uses) Operating Transfer In 0.00 0.00 Operating Transfer Out (125,783.16) -..-.., --- (60,236.00) 65,547.16 -52.11% Total other Financing (125,783.16) (60,236.00) 65,547.16 -52.11% . Sources (Uses) I Excess (Deficiency) of 0.00 0.00 (0.00) Revenue and Other Financing Sources Over Expenditures and Other Financing Uses 8/21/2002 3:34 PM budget summary City of Centerville 2003 Budget Summary I I I Date of Presentation: August 26, 2002 Budget Draft: Third Budget Proposed Variance %Incr. 2002 2003 +(-) (Deer.) Debt Service Funds Revenues: Taxes 0.00 5,000.00 5,000.00 #DIV/O! Special Assessments 0.00 107,000.00 107,000.00 #DIV/O! Intergovernmental 0.00 0.00 0.00 #DIV!O! Charges for Service 0.00 0.00 0.00 #DIV/O! Interest 0.00 13,200.00 13,200.00 #DIV/O! Miscellaneous Revenue 0.00 0.00 0.00 #DIV/OI. Refunds & Reimbursements 0.00 0.00 0.00 #DIV!O! Total Revenues 0.00 125,200.00 125,200.00 #DIV/O! I Expenditures: Debt Service Principal 0.00 377,238.00 377,238.00 #DIV/O! Interest 0.00 91,981.00 91,981.00 #DIV/O! Fiscal Agent Fees 0.00 1,205.00 1,205.00 #DIVlO! Total Debt Service 0.00 470,424.00 470,424.00 #DIV/O! Miscellaneous Miscellaneous 0.00 0.00 0.00 #DIV!O! Total Miscellaneous 0.00 0.00 0.00 #D1V/O! I Total Expenditures 0.00 470,424.00 470,424.00 #DIV/O! I T Excess (Deficit) of Revenues 0.00 /345,224.00) 1345.224.00) #DIV/O! Over Expenditures I . Other Financing Sources (Uses) Operating Transfer In 0.00 60,236.00 60,236.00 #DIV/O! Operating Transfer Out 0.00 0.00 0.00 #DIV/O! Total Other Financing 0.00 60,236.00 60.236.00 #DIV/O! Sources (Uses) Excess (Deficiency) of 0.00 (284,988.00) (284.988.00) #DIV/OI Revenue and Other Financing Sources Over Expenditures and Other Financina Uses 8/21/2002 12:24 PM budget summary ds City of Centerville 2003 Budget Summary I I I Date of Presentation: August 26, 2002 Budget Draft: Third Budget Proposed Variance % In cr. 2002 2003 +(-) (Deer.) Capital Projects I Revenues: Taxes 0.00 0.00 0.00 #DIV/O! Special Assessments 0.00 0.00 0.00 #DIV/OI Intergovernmental 0.00 0.00 0.00 #DIV/O! . Charges for Service 0.00 20,000.00 20,000.00 #D!V/O! Interest 0.00 5,950.00 5,950.00 #DIV/O! Miscellaneous Rellenue 0.00 17,000.00 17,000.00 #DIV/OI Refunds & Reimbursements 0.00 0.00 0.00 #DIV/O! Total Revenues 0.00 42,950.00 42,950.00 #DIV/O! I . Expenditures: Economic Development 0.00 50,000.00 50,000.00 #DIV/OI Capital Projects 0.00 130,000.00 130,000.00 #DIV/O! Storm Water Operations 0.00 14,005.00 14,005.00 #D!V/O! Park Capital Projects 0.00 ~.. 10,500.00 10,500.00 #DIV/O! Total Expenditures 0.00 204,505.00 204,505.00 #DIV/O'-- .. Excess (Deficit) of Revenues .. 0.00 (161,555.00) (161,555.00) #D1V/O! Over Expenditures Other Financing Sources (Uses) ... Operating Transfer In 0.00 0.00 0.00 #DIV/O! Operating Transfer Out 0.00 I 0.00 0.00 #DIV/O! Total Other Financing 0.00 0.00 0.00 #D1V/O! . Sources (Uses) I Excess (Deficiency) of 0.00 (161,555.00) (161,555.00) Revenue and Other Financing Sources Over Expenditures and Other Financi"ci Uses 8/21/2002 3:36 PM budget summary cap proj City of Centerville 2003 Budget Summary I I I Date of Presentation: August 26, 2002 Budget Draft: Third Budget Proposed Variance % Incr. 2002 2003 +(-) (Deer.) Enterprise Funds Revenues: Special Assessments 0.00 90,000.00 90,000.00 #DIV/OI Interaavemmental 0.00 0.00 0.00 #DIV!O! Charges far Service 0.00 499,000.00 499,000.00 #DIV/O! Interest 0.00 48,000.00 48,000.00 #DIV/O! Miscellaneous Revenue 0.00 0.00 0.00 #DIV/OI Refunds & Reimbursements 0.00 1,000.00 1,000.00 #DIV!OI Total Revenues 0.00 638,000.00 638,000.00 #DIV/O! -- Expenditures: Debt Service Principal 0.00 65,000.00 65,000.00 #DIV/O! I Interest . 0.00 23,180.00 . 23,180.00 #DIV/O! Total Debt Service 0.00 88,180.00 88,180.00 #DIV/OI I Enterprise Water Utilities 0.00 220,492.00 220,492.00 #DIV/O! Sewer & Sanitation 0.00 190,792.00 190,792.00 #DIV/O! Capital Expenditures 0.00 723,000.00 723,000.00 #DIV/O! Total Enterprise 0.00 1,134,284.00 1,134,284.00 #DIV/O! I Total Expenditures 0.00 1,222,464,00 1,222,464.00 #DIV/O! Excess (Deficit) of Revenues --.- . (584,464.00) (584,464.00) 0.00 #D1V/OI .-. Over Expenditures I Other Financing Sources (Uses) Operating Transfer In 0.00 0.00 0.00 Operating Transfer Out 0.00 (30,000.00) (30,000.00) #DIV/OI Total Other Financing 0.00 (30,000.00) (30,000.00) #DIV/O! Sources (Uses) I Excess (Deficiency) of 0.00 (614,464.00) (614,464.00) Revenue and Other Financing Sources Over Expenditures and Other Financing Uses 8/21/2002 3:43 PM budget summary enterprise City of Centerville 2003 Budget Summary I I Date of Presentation: August 26, 2002 Budget Draft: Third Budget Proposed Variance %Incr. - 2002 +(-) 2003 (Deer.) Special Revenue Funds Revenues: Intergovernmental 0.00 7,500.00 7,500.00 #DIV/O! Charges for Service 0_00 0.00 0.00 #DIV/O! Interest 0.00 500.00 500.00 #DIV/O! Miscellaneous Revenue 0.00 7,200.00 7,200.00 #DIV/OI -. Refunds & Reimbursements 0.00 0.00 0.00 #DIV/O! Total Revenues 0.00 15,200.00 15,200.00 #DIV/O! Expenditures: Current Cable TV 0.00 2,291.00 2,291.00 #DIV/O! Recycling 0.00 7,500.00 7,500.00 #DIV/O! Total Current Expenditures 0.00 9,791.00 9,791.00 #DIV/O! I Capital Outlay I Culture and Recreation 0.00 0.00 0.00 #DIV/O! Total Capital Outlay 0.00 0.00 0.00 #DIV/O! I Total Expenditures 0.00 9,791.00 9,791.00 #DIV/O! I . Excess (Deficit) of Revenues 0.00 5,409.00 5,409.00 #DIV/O! Over Expenditures I Other Financing Sources (Uses) Operating Transfer In 0.00 0.00 I 0.00 #DIV/O! Operating Transfer Out 0.00 0.00 0.00 #DiV/O! . Total Other Financing 0.00 0.00 0.00 #DIV/O! Sources (Uses) Excess (Deficiency) of 0.00 5,409.00 5,409.00 Revenue and Other Financing Sources Over Expenditures and Other Financing Uses 8/21/2002 12:29 PM budget summary spec rev City of Centervil/e Summary of Budget Adjustments Since First Draft B.Y. 2003 . Adjustments to Revenues DR CR Net AUQust 13, 2002 44,419 6,7461 37,673 AUQust 20,2002 0 83,657 (83,657 Adjustments to Expenditures . -- DR CR Net AU(:lust 13, 2002 37,214 74,887 (37,673\ August 20, 2002 143,644 59,987 83,657 Total 225,277 225,277 I 0 8/22/2002 3:37 PM Summary of Budget Adjustments City of Centerville Pror)osed Budget Adjustments B.Y.2003 Adjustments entered 08/13/02 -I GENERAL FUND DR CR Entered Revenues 101.31000 Prooerty Taxes 44,419 08/13/02 101.33400 PERA Aid (1.333) 08113/02 101.33401 Local Government Aid 14,413 08113/02 101.35101 Police State Aid (1,000) 08/13/02 Adjustments to Revenue 44.419 (6,746) 37,673 I Ext'lAnditures I Building Inspection 101.42400.240 Small Tools (50) 08/13/02 101.42400.404 ReoairfMaint 500 08/13/02 101.42400.550 Motor Vehicles (3,500) 08/13/02 101.42400.580 Other Equipment (2.000 08/13/02 500 (5,550) Public Works 101.43000.100 Wages (21,233) 08113/02 101.43000.121 PERA 11,174) 08/13/02 101.43000.122 FICA (1,624) 08/13/02 101.43000.130 Insurance (3,657) 08/13/02 101.43000.133 Dental 1(81) 08/13/02 101.43000.240 Small Tools (6,000) 08/13/02 101.43000.580 Other Equipment 11.000) 08/13/02 135,069 Park Proarams .!.Q.:1,,45201.100 Wages (12.854) 08/13/02 101.45201.121 PERA (711) 08/13/02 101.45201.122 FICA (984) 08113/02 101.45201.130 Insurance 16.000 08/13/02 101.45201.133 Dental (720) 08/13/02 101.45201.322 Postaae (50) 08/13102 101.45201.331 Travel (50) 08/13/02 101.45201.340 Advertisina (500 08113/02 (21,B69) Park Maintenance 101.45202.100 Wages (4.808) 08113/02 101.45202.121 PERA (266) 08113/02 101-45202.122 FICA J:J68) - OB/13102 101-45202.130 Insurance (1,863) 08/13/02 101-45202.133 Dental (194 08/13/02 101.45202.210 OperatinQ Supplies (1,000 08113/02 101.45202.212 Motor Fuels (500) 08113/02 101.45202.240 Small Tools (300) 08/13/02 101.45202.258 Maps (100) 08/13/02 101.45202.404 Reoair/Maint. Mach. 13.000 08/13/02 112,399) Capital Improvement 101.49970.235 Streets 36,714 08/13102 36,714 Adjustments to Expenditures 37,214 {74,887 (37,673 -I TOTAL ADJUSTMENTS B1,633 (81,633) 0 -I 8121/2002 3:32 PM Proposed Budget Revisions . OTHER FUNDS I Exnenditures I STORMWATER DRAINAGE FUND DR CR 415.43150.100 Waoes (1,202 08113102 415.43150.121 PERA (66) 08113102 415.43150.122 FICA (92) 08/13/02 415.43150.130 Insurance (621) 08113/02 415.43150.133 Dental (65) 08/13/02 0 (2,046 WATER FUND 601.49400.100 Wa9es (6,410 08/13/02 601.49400.121 PERA 13M) 08113102 601.49400.122 FICA (490) 08/13/02 601.49400.130 Insurance (69) 08/13/02 601.49400.133 Dental (7) 08113102 0 (7,330) SANITARY SEWER FUND 602.43200.100 Wages (6.410) 08/13/02 602.43200.121 PERA (354) 08113102 602.43200.122 FICA (490 08113/02 602.43200.130 Insurance (690 08/13/02 602.43200.133 Dental (72) 08113/02 0 (8,016) ~TALADJUSTMENTS 0 (9,448) (9,448) I GRAND TOTAL ADJUSTMENTS 81,633 (91,081 (9,448) 08/13/02 I 8121/2002 3:32 PM Proposed Budget Revisions City of Centerville Proposed Budget Adjustments B.Y.2003 Adjustments entered 08/20/02 I GENERAL FUND OR CR Entered Revenues 101.33405 Fire Aid (1.600) 08120102 101.31000 Property Tax (82,057) 08120/02 Adjustments to Revenue 0 (83,657 (83,657) I Exnenditures I Administration 101.41400.100 Wages (3.833) 08120102 101.41400.121 PERA (213) 08120102 101.41400.122 FICA (293) 08120/02 101.41400.130 Insurance 16,848 08120/02 101.41400.133 Dental (1,008) 08120/02 101.41400.194 Deferred Income . (5.683) 08/20102 101.41400.200 Office Supplies (1,000) 08120102 101.41400.300 Professional SelVices 2,000 08120/02 18,848 (12,030) 6,818 CilyHall 101.422BO.220 Repair Ma\nt Supplies (1,000) OBI20/02 0 11,000) (1,000) Fire Protection 1Q1.422B5.300 Professional SelVices 1.621 OBI20102 1,621 0 1,621 . Building Inspection 101.42400.100 Wages (2,412) 08/20/02 101.42400.121 PERA (133 08/20102 101.42400.122 FICA (184 08120102 101.42400.130 Insurance 3,694 08120/02 101.42400.133 Dental (720) 08/20102 101.42400.194 Deferred Income (768) 08/20102 101.42400.300 Professional Services (500) 08/20102 JCJ.1.42400.304 Legal Fees (500 08120102 3,694 (S,217 (1,S23) Public WOT~ Lee I 101.43000.100 Wages --^.---- 334 08120102 101.43000.121 PERA 19 08/20/02 101.43000.122 FICA 25 08120102 . 101.43000.130 Insurance 2,504 08120/02 101.43000.133 Dental (764) 08120102 101.43000.194 Deferred"lncome 12.304) 08120/02 2,882 (3,0681 (186 Park/Recreation Programs 101.45201.100 Wages (12,8S4) 08120/02 101.45201.121 PERA 711) 08120102 101.45201.122 FICA 983) 08/20102 101.45201 :21 0 Operating Supplies 900) 08/20102 101.45201.340 Advertising 400) 08120102 0 115,848) (15,848) 8122/2002 8:22 AM Proposed Budget Revisions Park Maintenance 101.45202.100 Waoes (70 08/20/02 101.45202.121 PERA (4 08/20/02 101.45202.122 FICA (5) 08/20/02 101.45202.130 Insurance 84 08/20/02 101.45202.133 Dental (245 08120102 101.45202.225 Land Materials (1,000 08/20/02 10"1.45202.404 Repair Maint Machinery (500 08/20/02 84 (1,824 (1,740) Capital Improvement 101.49970.550 Vehicles (10,000 08/20102 101.49970,570 Office Equipment (1,000) 08/20/02 101.49970,630 Park Equipment (10,000) 08/20/02 101.49970.235 Streets 116,515 08/20102 116,515 (21,000) 95,515 Adjustments to Expenditures 143,644 (59,987) 83,657 I TOTAL ADJUSTMENTS 143,644 143,644 0 I OTHER FUNDS T Ex;:;enditures DR CR PARK CAPITAL FUND 402.46000.300 10,500 08/20102 402.49390,720 (10,500) 08/20/02 10,500 (10,500) 0 - STORMWATER DRAINAGE FUND "' 415.43150,100 Waaes (131) 08/2010Z- 415-43150-121 PERA (7) 08/20/02 415-43150-122 FICA (11) 08/20/02 415.43150,130 Insurance 354 08/20/02 415.43150.133 Dental (43) 08/20/02 354 (192) 162 WATER FUND 601.49400,100 Wages (169) 08/20/02 601.49400,121 PERA (9) 08/20/02 601-49400.122 FICA (14) 08/20102 601.49400.130 Insurance 1,621 08/20/02 601.49400.133 Dental (446) 08120/02 601.49400,194 Deferred Income J. (153) 08/20/02 1,621 1791) 830 SEWER FUND 08120/02- . 602.49400,100 Wages (169 602.49400.121 PERA (9 08/20/02 602-49400-122 FICA (13 08/20/02 602.49400,130 Insurance 1,621 08/20/02 602.49400,133 Dental (446) 08/20/02 602.49400,194 Deferred Income (154) 08120102 1,621 (791 830 CABLE TV FUND 614.49840,100 Waoes (25) 08/20/02 614.49840,121 PERA (2) 06/20/02 614.49840,122 FICA (3) 08/20/02 614.49840,130 Insurance 372 08/20/02 614.49840,194 Deferred Income (154) 08/20/02 372 (184) 188 8/22/2002 8:22 AM Proposed Budget Revisions RECYCLING FUND 617.45350.100 Waoes (40) 08120/02 617.45350.121 PERA (2) 06/20/02 617.45350.122 FICA (3) 08/20/02 617.45350.130 Insurance 72 08120/02 617.45350.331 Travel 115) 08/20/02 617.45350.430 Mise (12) 08/20/02 72 (72) 0 TOTAL ADJUSTMENTS 14,540 (12,530) 2,010 I GRAND TOTAL ADJUSTMENTS 158,184 156,174 2,010 8/22/2002 8:22 AM Proposed Budget Revisions ESTIMATED PROPERTY TAX RATE City of Centerville Estimated Tax Decrease Proposed 2003 Budget Payable 2002 Final Tax Rate Payable 2003 Est. Tax Rate Tax Capacity TIF Captured Value AW Contribution Net Tax Capacity 1,875,844 (8,614) (85,180) 1,782,050 2,223.735 (8,614) (89,844) 2,125,277 Certified Levy Area-Wide Contribution Local Levy 1,480,623 (levy limit) (242,713) 1,237,910 1,562,680 (levy limit) (231,329) 1,331,351 Local Levy Net Tax Capacity 1,237,910 1,782,050 I 69.4655%1 1,331,351 2,125,277 I 62.6436%1 CAPITAL OUTLAY City of Centerville ~ Annual Requirement for Capital Needs General Fund Budget 2003 Useful Annual Units Unit Cost Total Cost Ufe Yrs Cost Buildings City Hall & Fire Hall 1 1,750,000 1,750,000 SO 21,S75 - - Public Works 1 750,000 750,000 80 9,375 Warminq House -- 1 50,000 50,000 40 1,250 I 2,550,000 32,500 Machinery - -... Plow Trucks 2 100,000 200,000 20 10,000 -. Pick-~ Trucks wi Plows 2 ~Q_,OOO SO,OOO 5 16,000 Pick-uQ Trucks 2 25,000 50,000 5 10,000 - --~-- Tractor 1 60,000 60,000 10 6,000 Bobcat 1 32,000 32,000 7 4,571 __d Lawn Tractor 1 4,000 4,000 5 800 .~- Snowblower 1 1,500 1,500 5 300 427,500 47,671 -- Furniture & Equipment - Acorn Park 1 100,000 100,000 I 25 4,000 McBride Park 1 55,000 55,000 25 2,200 Eaqle Park 1 55,000 55,000 25 2,200 LaMotte Park 1 250,000 250,000 25 10,000 Roval Meadows 1 30,000 30,000 25 1,200 Tools 1 50,000 50,000 7 7,143 CO.QY Machines 2 25,000 50,000 5 10,000 ---.- Computers 9 3,000 27,000 3 9,000 8/22/2002 3:24 PM annual capital requirements Useful Annual Units Unit Cost Total Cost Life Yrs Cost Furniture & Equipment (cont.) Furniture - City Hall 5 5,000 25,000 15 1,667 Furniture - Public Works 5 2,500 12,500 15 833 File Cabinets 10 300 3,000 15 200 657,500 48,443 Streets Street Replacement (ft.) 84,480 150 12,672,000 25 506,880 12,672,000 506,880 Total Capital Costs I I 16,307,000 635,494 8/22/2002 3:24 PM annual capital requirements - City of Centerville Proposed Capital Expenditures Budget Year 2003 Department Accl. Item Cost Budllet Water Sewer Storm Bond/Asmt Park Fund Office Machines & Equipment Administration 41400 Scanner 1,500 1,500 41400 Filing Cabinets 2,500 2,500 Park/Recreation Programs 45201 Playground Equipment 10,QQQ Total Office Machines and Equipment 4,000 4,000 0 0 0 0 10,000 ~achinery Total Machinery 0 ------= 0 0 0 0 0 0 Land 0 0 Total Land 0 0 0 0 0 0 0 Buildings Public Works 43000 ADA Entrance 15,000 15,000 -~ City Hall . 42280 Sprinklers 10,000 10,000 -- -- Total Buildings 25,000 25,000 0 0 0 0 0 Infrastructure 21st Avenue Road Construction 180,000 120,000 60,000 Dupre Watermain & Storm Sewer 153,000 5~. 50,000 50,000 Peltier Lake Drive Watermain and Road 1,392,000 1,392,000 Center Street West Watermain and Road 1,188,000 1,188,000 Water to Public Works & Flammable Waste Separator 30,000 10,000 20,000 . Storm Pond Work 80,000 80,000 -- New Water Tower 900,000 450,000 450,000 New Well - ---- 400,000 200,000 200,000 Downtown Redeveiopment & Streets 1,500,000 312,280 1,187,720 Total Infrastructure 5,823,000 442,280 723,000 0 130,000 4,527,720 0 Total Capital 5,852,000 471,280 723,000 0 130,000 4,527,720 8/22/2002 1:04PM capital outlay . -l Streets water only water/street footage per unit cost total Priority ranking Center Street, Tourville, Pheasant >>> 3,070 $250.00 $767,500.00 2 Dupre Road >>> 670 $150.00 $100,500.00 1 LaMotte & Hertitage >>> 1800 $250.00 $450,000.00 3 Mill Road >>> 800 $100.00 $80,000.00 3 Center Street,Sumac,lvory Cl. >>> 2800 $150.00 $420,000.00 3 Peltier Lake (CVR to Main) >>> 1200 $250.00 $300,000.00 2 >>> 2600 $250.00 $650,000.00 2 Peltier Lake (Mill to Lakeland) >>> 2970 $250.00 $742,500.00 3 Royal Meadows >>> 2000 $150.00 $300,000.00 3 LaValle Drive >>> 700 $100.00 $70,000.00 3 Mound Trail >>> 3100 $100.00 $310,000.00 3 Shad Avenue >>> 1250 $250.00 $312,500.00 3 Downtown >>> 6000 $250.00 $1,500.000.00 3 LaValle Drive Area >>> 800 $75.00 $60,000.00 3 TOTALS 29,760 $6,0511.000.00 (5.5 miles) (358 loll $16,902/1ot) Temporary access, driveway repair and sod repair $2,500.00/lot Total Lot Cost $19.402.00 $6,945,916.00 $233/ft Total assessable per lot $2,500 for streets, $5,500 for water and $1,500.00 for storm: $9,500.00 each City's portion $3,544,916.00 Current Costs for Water, Storm Sewer and Streets: Pheasant Marsh First Pheasant Marsh Second $20,022.00/lot $17,688.00/\ot County Road #14 Watermain extension (no street or storm work) $12,050.00/lot 21st Ave. Street and Storm Work Estimate $36,963.00/lot FUND RESERVE ANALYSIS City of Centerville Fund Balance/Cash Flow August 23, 2002 Cash Recommended Balance Balance Variance General Fund 609.345.01 990,763.00 -381,417.99 Debt Service 1.038.345.50 1.038.345.50 0.00 Capital Projects 608,002.91 608.002.91 0.00 Enterprise 3.121.915.17 1.252,464.00 1.869.451.17 Special Revenue 47.658.79 9,791.00 37.867.79 5,425,267.38 3,899,366.41 1,525,900.97 8/23/2002 11:14AM fund balance analysis - City of Centerville "- 2003 Pay Equity Schedule Hourlv, Montlii", Annual COLA-1% Step-4% DRAFT Grade Step 1 Steo2 Steo3 SleD 4 SleD 5 SIep6 SleD 7 SleD 8 Slen 9 SleD 10 1 10"66 n09 11"53 11"99 12A7 12"97 13A9 14m 14"59 15"17 1,847n 1,921"64 1,99651 2,078A5 2,16L59 2,24605 2,337"97 2,431 A9 2,528" 75 2,629"90 22,172"80 23,059"71 23,982"10 24,94U8 25,939N 26,976"60 28,055"67 29,177"89 30,345m 31,558"81 2 lU3 1220 12"69 n19 nn 14,27 H84 15A4 16"05 16"70 - 2,033"20 2,114"53 2,199"11 2,287"07 2,37856 2,473,70 2,5n65 2,675"55 2,78257 2,893"88 24,398AO 25,3R34 26,389"31 27,444"88 28,542"68 29,684"38 30,87U6 32,10M3 33,390"90 34,72653 I 3 12"89 13Al 13"94 14"50 15"08 15"68 16"31 16"96 17"64 18"35 , 2,234"27 2,323"64 2,41658 2,51325 2,6n 78 2,718"33 2,8n06 2,940" 14 f- +- 3,057"75 - ---A18O"06 26,81120 27,883"65 28 998B9 30,158"95 31,365"31 32,619"92 33,924J2 35,28ui' 36,692"98 38,160"70 I I 4 14"18 14"75 15"34 15"95 16"59 1725 17"94 lM6 19A1 20"18 , 2,457"87 2,556" 18 2,658A3 2,784.77 2,87536 2,990"37 3,109"99 3,234"38 3,363.76 3,498"31 29,494AO 30,6R18 31 90U4 33,17719 34,504"28 35,884A5 37,3m83 38,812"62 40,365" 12 41,979"73 5 15"60 1622 lM7 17,55 18.25 1698 19.74 20"53 2U5 22"20 ~" 2,704"00 2,812"16 2,924"65 3,04U3 3,163"30 3,289"83 3,421 A2 3,55828 3,700"61 3,848"64 32,448"00 33,745"92 35,095"76 36,49959 37,959"57 39,477"95 41,057m 42,699"35 44,407"33 46,183"62 6 17"15 17"84 18"55 19"29 20"06 20"87 ----c 2nD 2257 23A7 24Al , 2,9n67 3,21524 3,343"85 3,47760 ---3,6'f6" 70 ---. 3,911"83 4,068"30 4,23U3 3.09157 3,761"37 35,6noo 37,098"88 38,582"84 40,126" 15 41,73U9 43,400A4 45,136A6 46,941"92 48,819"60 50,772"38 7 18"52 19"26 20m 20"83 n67 22,53 23"43 24"37 25"35 26"36 3,210"13 3,33B"54 3,472.08 3,6m96 3,755AO 3,905"62 4,06LB4 4,224"32 4,393"29 4,56R02 38,52UO 40,062A6 41,664"96 43,331"56 45,064"82 46,867"42 48,742" 11 50,691 "BO 52,719A7 54,82825 8 20"00 20"80 21"63 I 22"50 23AO 24"33 I" 2531 26"32 , "" u 27"37 I - 28A7 ---- 4,38644 - - ----_.. -- - 3,466"67 3,605.33 3,749.55 3,899"53 4,055"51 4,217" 73 4,561 "90 4,744"37 4,934"15 41,600"00 43,264"00 44,994"56 46,7904 48,666" 12 50,612"76 52,63727 54,742"76 56,932A7 59,209.77 9 21"59 22A5 23"35 2429 2526 2627 n32 28Al 29"55 30"73 3,742B 3,891.96 4,047.64 4,209"54 4,37792 4,553"04 4,735"16 4,924"57 5,12155 5,326A 1 44,90720 46,703A9 4B,57L63 50,514A9 52,535"07 S4,636AB 56,B21 B3 59,094"81 61,458"60 63,916"95 10 23"33 2426 2523 2624 2729 28"38 29"52 30"70 1---: 31 "93 3321 4,043"B7 4,205"62 4,3n85 4,548"80 4,730.75 4,919,98 5,116"78 5,321 A5 5,534"31 5,755"68 48,526AO 50,467A6 52,486"15 54,585"60 56,76R02 59,039"79 61,40U8 63,857A3 66,41U3 69,06820 812012002 11:58AM pay equity schedule 2003-2 City of Centerville 2003 Salary Schedule Employee Position/ Pay Equity End 2002 End 2002 End 2002 COLA Step Adj End 2003 End 2003 End 2003 Name Title Grade step Hourly Wage 1% 4% Wage Hourly Step Kim Moore-Sykes City Administrator 10 9+ 31.85 66,253.95 662.54 2,676.66 69,593.15 33.46 10+ . Paul Paizer Public Works Director 9 9 29.26 60,860.80 608.61 2,458.78 63,928.18 30.73 10 Ellen Paulseth Finance Director 8 8+ 26.44 55,000.00 550.00 2,222.00 57,772.00 27.78 9+ Teresa Bender . City Clerk 6 4 19.11 39,748.80 397.49 1,605.85 41,752.14 20.07 5 Ken Cook Building Inspector 5 7 19.55 40,664.00 406.64 1,642.83 42,713.47 20.54 8 Kristin Sweeney Account Clerk II 3 3 13.80 28,704.00 287.04 1,159.64 30,150.68 14.50 4 T edd Peterson PW Maintenance 3 8+ 17.00 35,360.00 1,060.80 1.456.83 37,877.63 18.21 9+ Joel McPherson PW Maintenance 3 8+ 17.00 35,360.00 1,060.80 1.456.83 ,=" 18.21 9+ 37,877.63 Kim Stephan Ace!. Clerk/Receptionist 2 2 12.07 25,105.60 251.06 1,014.27 26,370.92 12.68 3 Temporary Rink Attendant 1 -1 8.00 16,640.00 166.40 672.26 17,478.66 8.40 -1 -- DRAFT 8/20/2002 12:02 PM salary schedule 2003-2 . - City of Cenlerville Estimated Salary Calculation Budget 2003 Regular Wages Hourlv j@Monthl 1/110SIep Hourly @Monlhly Slep Date Total Total Reg Overtime On-Call Total Emn\ovee Steo- Date Rate Months Rate Date Rate Months Rate to Dee 31 Months Wages Wages Wages Wages Kim Moore-Sykes 22-0cl 32.18 9.65 5,577.87 53,826.41 33.47 2.35 5,801.47 13,633.45 12.00 67,459.86 0.00 0.00 67,459.86 Paul Palzer 25-Apr 29.55 3.30 5,122.00 16,902.60 30.73 8.7 5,326.53 46,340.84 12.00 63,243.44 3,162.17 0.00 66,405.61 Ellen Paulselh 24-Aor 26.70 3.30 4,628.00 15,272.40 27.78 8.7 4,815.20 41,892.24 12.00 57,164.64 0.00 0.00 57,164.64 Teresa Bender 21-Dec 19.30 11.30 3,345.33 37,802.27 20.07 0.7 3,478.80 2,435.16 12.00 40,237.43 289.50 0.00 40,526.93 Ken Cook 8-Jul 19.75 6.20 3,423.33 21,224.67 20.54 5.8 3,560.27 20,649.55 12.00 41,874.21 0.00 0.00 41,874.21 Kristin Sweeney 17-Jul 13.94 6.50 2,416.27 15,705.73 14.50 5.5 2,513.33 13,823.33 12.00 29,529.07 209.10 0.00 29,738.17 T edd Peterson 15-Nov 18.21 12.00 3,156.40 37,876.80 0 0.00 0.00 12.00 37,876.80 3,787.68 3,654.00 45,318.48 Joel McPherson 5-Feb 18.21 12.00 3,156.40 37,876.80 0 0.00 0.00 12.00 37,876.80 3,787.68 3,654.00 45,318.48 Kim Stephan 13-Dec 12.19 11.50 2,112.93 24,298.73 12.68 0.5 2,197.87 1,098.93 12.00 25,397.67 1,097.10 0.00 26,494.77 Rink Attendant temp 8.08 8.00 1,400.53 11,204.27 0.00 0.00 8.00 11,204.27 0.00 0.00 11,204.27 271,990.68 139,873.50 411,864.18 12,333.23 7,308.00 424,197.41 Overtime Calculation On.Call Calculation Emplovee Hours Rate OT Waae Employee Reaular Weekend HOliday Total I 115X$13X26 I (2X$32X26 (6X$50\ Paul Palzer 5% 3,162.17 T edd Peterson 1,690.00 1.664.00 300.00 3,654.00 Teresa Bender 10 28.95 289.50 Joer McPherson 1,690.00 1,664.00 300.00 3,654.00 Kristen Sweeney 10 20.91 209.10 j - T edd Peterson 10% 3,787.68 Total On-Call 3,380.00 3,328.00 600.00 7,308.00 Joel McPherson 10% 3,787.68 Kim Stephan 60 18.29 1,097.10 Cable -- Total Overtime 12,333.23 8/20/2002 1:29PM salary budgel 2003 calc-2 .-- I .. , , - City of Centerville Salary Step Calculation Budget Year 2003 End 2002 Beg 2003 Step Date End 2003 Kim Moore-Sykes 31.86 32.18 22-0ct 33.47 2,548.23 2,574.29 2,729.60 66,253.95 66,931 .49 69,608.75 Paul Palzer 29.26 29.55 25-Apr 30.73 2,340.80 2,364.21 2,507.46 60,860.80 61,469.41 - 63,928.18 Ellen Paulseth 26.44 26.70 24-Apr 27.77 2,115.38 2,136.35 2,266.00 .. 55,000.00 55,545.15 57,766.96 Teresa Bender 19.11 19.30 21-Dec 20.07 1,528.80 1,544.09 1,605.85 39,748.80 40,146.29 41,752.14 19.55 . Ken Cook 19.75 8.Jul .~~ 1,564.00 1,579.64 1,642.83 40,664.00 41,070.64 42,713.47 Kristin Sweeney 13.80 13.94 17-Jul 14.50 ~--- 1,104.00 1,115.04 1,159.64 28,704.00 28,991.04 30,150.68 Tedd Peterson 17.00 18.21 15-Nov 18.21 (labor contract) 1,360.00 1,456.80 1,456.80 35,360.00 37,876.80 37,876.80 Joel McPherson 17.00 18.21 5-Feb 18.21 (labor contract) 1,360.00 1,456.80 -- 1,456.80 35,360.00 37,876.80 37,876.80 Kim Stephan 12.07 12.19 13-Dec 12.68 965.60 975.26 1,014.27 25,105.60 25,356.66 26,370.92 Rink Attendant 8.00 8.08 8.40 640.00 646.40 672.26 16,640.00 16,806.40 17,478.66 8/20/2002 1:26 PM salary step calc-2 City of Centerville Labor and Benefit Distribution BUdget Year 2003 I Labor Distribution: Ern 10 ee Wa as AdministratIon Sanita Sewer Water PUblic Works Bid .Ins Park Pro rams Park Malnt Stormwater Ree clio Cable Waaes and Overtime Kim MOOre-S " 67459.86 100% 67,459.86 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 PaulPalzer 66,405.61 0% 0.00 10% 6,640.56 10% 6,640.56 30% 19,921.68 35% 23,241.96 0% 0.00 10% 6,640.56 5% 3,320.28 0% 0.00 0% 0.00 El1enPaulselh 57,164.64 90% 51,448.18 5% 2,858.23 5% 2,858.23 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 Teresa Bender 40,526.93 95% 38,500.58 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 5% 2,026.35 0% 0.00 Ken Cook 41,674.21 0% 0.00 0% 0.00 0% 0.00 0% 0.00 100% 41,874.21 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 Kristin Sweene 29,738.17 50% 14,869.09 25% 7,434.54 25% 7,434.54 0% 0.00 0% 0.00 0% 0.00 0% 0.00 Do;., 0.00 0% 0.00 0% 0.00 Tedd Peterson 41,664.48 0% 0.00 16% 6,666.32 16% 6,666.32 53% 22,082.17 0% 0.00 0% 0.00 12% 4,999.74 3% 1,249.93 0% 0.00 0% 0.00 JOel McPherson 41,664.46 0% 0.00 16% 6,666.32 16% 6,666.32 53% 22,082.17 0% 0.00 0% 0.00 12% 4,999.74- 3% 1,249.93 0% 0.00 0% 0.00 KimSte han 26,494.77 85% 22,520.55 5% 1,324.74 5% 1,324.74 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 5% 1,324.74 Rink Attendanl 11,883.73 0% 0.00 0% 0.00 0% 0.00 0% O.QO 0% o.op 100% 11,883.73 0% 0.00 0% 0.00 0% 0.00 0% 0.00 Total LabOl 424,876.88 194,798.26- 31,590.71 31,590.71 64,086.03 65.116.17 1188.3.73 16640.04- 5820.15 2,026.35 1,324.74 On-CalJWaaes Tedd Peterson 3,654.00 0% 0.00 40% 1,461.60 40% 1,461.60 20% 730.80 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 Joel McPherson 3,654.00 0% 0.00 40% 1,461.60 40% 1,461.60 20% 730.60 0% 0.00 oo/~ 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 Total On-Call Wa (15 7,308.00 0.00 2,92320 2923.20 1,461.60 0.00 0.00 0.00 0.00 0.00 0.00 TotalWa eDistribution 432,184.88 194798.26 34513.91 34,513.91 65,547.63 65,116,17 11.883.73 16,640.04 5,820.15 2,026.35 1,324.74 I 8/20/2002 2:06 PM tabor and benefit dist3 Benefit Distribution: I T Em 10 ee Benefit AdmJnisfration Sewer Wafer Public Works Bid . Ins Park Pro ,.ms Park Maint Stormwater Rec clin Cable Retirement FICA 6.2% 26,795.46 12,077.49 2,139.86 2,139.86 4,063.95 - 4,037.20 736.79 1,031.68 360.85 125.63 82.13 Medicare 1.45% 6,266.68 2,824.57 500.45 500.45 950.44 944.18 172.31 241.28 84.39 29.38 19.21 PERA 5.53% 23,899.82 10,772.34 1,908.62 1,908.62 3,624.78 3,600.92 657.17 920.19 321.85 112.06 73.26 56,961.97 25,674.41 4,548.93 4,548.93 8,639.18 8,582.31 1,566.28 2,193.16 767.10 267.07 174.60 Cafeteria Plan Kim Moore-$ os 7,440.00 100% 7,440.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 PaulPalzer 7,440.00 0% 0.00 10% 744.00 10% 744.00 30% 2,232.00 35% 2,604.00 0% 0.00 10% 744.00 5% 372.00 0% 0.00 0% 0.00 EllenPaulseth 7,440.00 90% 6,696.00 5% 372.00 5% 372.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 T erasa Bender 7,440.00 95% T,06S.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 5% 372.00 0% 0.00 Ken Cook 7,440.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 100% 7,440.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 Kristen Sweene 7,440.00 50% 3,720.00 25% 1,860.00 25% 1,860.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 - 0% 0.00 0% 0.00 0% 0.00 Tedd Peterson 7,440.00 0% 0.00 16% 1,190AO 16% 1,190.40 53% 3,943.20 0% 0.00 0% - 0.00 12% 892.80 3% 223.20 0% 0.00 0% 0.00 Joel McPherson 7,440.00 0% 0.00 16% 1,190.40 16% 1,190.40 53% 3,943.20 0% 0.00 0% 0.00 12% 892.80 3% 223.20 0% 0.00 0% 0.00 KimSte han 7,440.00 85% 6,324.00 5% 372.00 5% 372.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 0% 0.00 5% 372.00 66,960.00 3j,248.00 5728.80 5,728.80 10118.40 10,044.00 0.00 2,529.60 818.40 -- 372.00 372.00 Clothin Allowance - - Kim Moore-Sykes - 50.00 50.00 PaulPalzer 50.00 50.00 --- Ellen Paulseth 50.00 50.00 Teresa Bender 50.00 50.00 - Ken Cook 50.00 - 50.00 -- Kristin Sweene 50.00 50.00 T edd Peterson 765.00 -- 765.00 Joel McPherson 765:00 765.00 -- KimSleohan 50.00 50.00 Rink Attendant 50.00 - 50.00 1,930.00 250.00 0.00 0.00 -1,580.00 50.00 50.00 0.00 0.00 0.00 0.00 - Total Benefit 125851.97 57172.41 10,277.73 1D,277.73 20,337.58 18,676.31 1,616.28 4,722.76 1,585.50 639.D7 546.60 I Total Labor & Benefit 558,036.85 251,970.67 44,791.64 I 44,791.64 85,885.21 83,792.49 13,500.01 21,362.79 7,405.64 2,665.42 1,811.34 8120/2002 2:08PM labor and benefit dist3 . , I . AUG 2 I 20021 LMC 145 University A venue West, St. Paul, MN 55103-2044 Phone: ((/51) 281-1200. (800) 925-1122 TDD (651) 281-1290 LMC Fax: (651) 281-1299 LMCIT Fax: (651) 281-1298 Web Site: http://www.Imnc.org League of Minnesota CineS Giies promoting ~!knCtl MEMORANDUM To: Mayors, City Managers, Administrators, and Clerks From: Jim Miller, Executive Director Re: 2003 City Budgets Date: Friday, August 16, 2002 Volatility in the state's budget over the past year is now translating into uncertainty for local budgets. Although the magnitude of the state budget deficit will not be officially revised until late November or early December, the Commissioner of Finance has recently suggested that the deficit could be as high as $2.7 billion for the 2004-2005 biennium. With the additional pessimistic economic news that has been released over the past several weeks, this fall's budget forecast could even exceed the Commissioner's gloomy figures. In recent weeks, the League has received numerous inquiries from member cities seeking advice on how to prepare for the uncertain state budget situation and the potential for state aid reductions. The situation for larger cities is further complicated by levy limits, which will be significantly more stringent due to a remarkably low inflation adjustment (0.76%) for 2003 levies. For many cities, levy limits will trim the list of policy alternatives available to address possible 2003 state aid cuts. To make matters more difficult, your city is undoubtedly facing other budget pressures such as rising employee health insurance costs, potential volunteer relief association contribution . increases, lower investment earnings, and possible additional security costs in light of the September terrorist attacks. The purpose of this memo is to provide you with insights into this uncertainty based upon conversations we have had with key state decision-makers and information available to us at this time. The state budget situation is fluid and will undoubtedly change before the Legislature convenes in January. Although the League will be working with legislators to reduce the size of any proposed state aid or credit reimbursement reductions, it is important for your city to begin preparing now for the possible effects of a cut in state aids. . , I .. State Deficit: How we got here Last fall, the state announced a $2 billion budget deficit for the remainder of the 2002-2003 biennium. In February, the deficit estimate was increased to nearly $2.5 billion. The 2002 legislative actions to address this deficit arguably tapped most of the easy solutions, including the use of state reserves and the elimination of automatic inflation assumptions for many state programs. The budget solution also included the elimination of the TIP grant pool, delays in school aid payments, and some cuts in state agency budgets. Now, the state is facing an additional deficit for the 2004-2005 biennium. Given that many of the easy solutions have been employed, the problem confronting the 2003 Legislature will almost certainly be more difficult to address. State agencies are already being asked to prepare preliminary budget proposals at a 90 percent funding level. This 10 percent planning reduction reflects the approximate across-the-board cut necessary in state spending to address a deficit in the $2.7 billion range. IT a 10 percent cut is extended to general city aid programs, cities would collectively lose approximately $59 million of local government aid (LOA) and approximately $10 to $15 million of market value homestead credit (MVHC) reimbursement. Remember, even if your city does not receive LOA, the state effectively pays a portion of your property tax levy through the MVHC reimbursement. The State could reduce this payment to the city, thereby reducing the amount of property tax levy you expected when the levy was originally certified. IT the Legislature ultimately decides to make cuts in state aid and credit programs, it will have to decide how to distribute the impact to cities and counties. IT potential future cuts are computed in a manner similar to past state aid reductions, every city would likely lose a similar percentage of their revenue base (defined as the city's certified levy plus its certified LGA). A cut on this basis could be between 4 percent and 5 percent of each city's revenue base. Again, that cut could conceivably come fromLGA, theMVHC, or both. There are other state aid and revenue sharing programs that could potentially be cut, such as police and fire aids, certain transportation aid programs including the Municipal State Aid (MSA) program, and police training reimbursement aid. Likewise, further cuts in state agency budgets could have a trickle-down impact on city budgets-either through higher agency fees and assessments or through reduced services that must be picked up in local budgets. Of course, there is no way to determine the size of the state deficit before the forecast is updated in November, nor is there any way to predict how the Legislature might implement appropriation reductions. Given that city aid programs were largely spared from the 2002-2003 budget cuts, we suspect there may be political pressure to "share" the state's 2004-2005 budget woes with cities. This uncertainty clearly makes financial planning for 2003 extremely difficult. We should know more in late November or early December when the next state budget forecast is released. However, you are already preparing your 2003 budget and you must set your preliminary property tax levies long before the state budget forecast will be announced. . , I . Other Factors Cuts yet this year? Although most of the current focus on the state budget is on the 2004-05 biennium, there is still an outside chance that the 2002 December distributions of LGA and the MVHC reimbursement could occur IF the November 2002 state budget forecast shows a state deficit by the end of the current biennium that exceeds the current $300 million state rainy day fund and IF the governor decides to address the deficit through unallotment. Through "unallotment," the governor effectively has the power to reduce legislative appropriations to address a state deficit that exceeds its reserves. Given that the state's biennium ends on June 30, 2003, the December 2002 LGA and MVHC payments would be the last distributions to cities this biennium. LOA reform. Reform of the LGA system may be a topic of legislative focus during the upcoming session. The current formula uses statistical data from the decennial U.S. Census that has now been compiled and released. The Department of Revenue initially used one updated statistic from the 2000 Census to compute the 2003 LGA distribution. The use of that statistic produced large, unexpected variations in the distribution of state aids and, upon review, the Census data appeared to have unexplainable results. Essentially, the department will use the existing 1990 data for one more year. At a minimum, the Legislature will likely have to address this piece of the LGA formula during the 2003 legislative session. We also know that some legislators have indicated an interest in a total review of the formula and the funding level---especially given the State's current fiscal predicament. This could lead to an extensive effort to reform the system. However, unlike possible cuts to balance the state's budget, which could be implemented irmnediately, any reform of the system would not likely be effective until 2004. Other property tax pressures Many school districts across the state are struggling to address their own financial needs. The state takeover of the majority of school funding coupled with the state's financial troubles means that schools will not likely find sufficient new state resources. Many school districts have already announced they are "going to the voters" to approve new or expanded operating referendum levies. This will place pressure on taxpayers and may result in less acceptance of city tax increases. Likewise, the state could tap its property tax as a potential way to address its budget problem. Although the nearly $600 million state property tax levy is automatically indexed for inflation each year, the state could decide to raise its levy even further to balance the budget. Again, this could place pressure on commercial, industrial, and cabin taxpayers and make city tax increases more difficult. Additionally, the state could expand the base of the state property tax to include homesteads and other additional types of property. < ,. , I . Strategies for Cities For city officials who remember previous state budget shortfalls and subsequent city aid cuts, much of this situation and the strategies that follow may sound familiar. Below are several considerations that may help you weigh the pros and cons of revenue enhancements, expenditure reductions, and use of reserves as you consider setting a budget for 2003. Ultimately, you will have to make decisions that best reflect the needs of your community. 1. Consider increasing your property tax levy to cover or at least partially offset potential state aid reductions. If aid reductions do not materialize, you can adjust your 2004 property tax levy accordingly. A.) For cities over 2,500 population, levy limits are in place for taxes payable in 2003. Due to an extremely low inflation adjustment for this year's levy limits, cities affected by levy limits might not have sufficient levy authority to cover even normal budgetary pressures. Levy limits are due to expire, but they could certainly be extended by the 2003 legislature. E.) Increasing your property tax levy could potentially result in a larger state aid reduction. Last January, the Governor unveiled a new proposal that based a portion of each city's aid reduction on the size of each city's increase in property tax levy plus state aids. In other words, the larger the city's revenue, the greater the reduction in state aids. Although the Governor's concept was not adopted by the Legislature, this proposal could always resurface in the 2003 legislative session. C.) Although property tax increases could be implemented to offset potential budget cuts, the property tax increases of cities could be viewed as municipal preparation for state aid cuts and legislators could rationalize cuts because cities are financially "prepared" for the reducti on. D.) Increasing property taxes to cover a speculative state aid cut could be criticized or misunderstood by your citizens and business owners. You may want to consider enhanced discussions with your citizens, businesses, and legislators about the difficulties facing the city and setting a 2003 budget. E.) Consider the implications of tax reform on any tax increment financing (TIP) districts within your city. Past tax reform efforts, including the major changes enacted in 2001, may have severely impacted the revenue stream of TIP districts and the city may already be committed to property tax increases to cover TIP obligations. F.) Given the magnitude of the state budget deficit, other local units of government may also be considering increases in their property tax. With the new state property tax, legislators might be considering their own property tax increase to address the shortfall. You might want to consider the combined impact of these potential increases for your taxpayers. A , , . II. Consider other revenue enhancements where appropriate. A.) Do you have fees that are set substantially lower than the cost of the service provided? Now may be a good time to adjust fees to more closely relate to the cost of the service, thereby reducing the current subsidy from other revenue sources. Also, there may be certain property tax supported services for which fees could instead be charged. B.) If your city makes significant capital or maintenance expenditures for storm water control, you may wish to consider creating a storm water utility and removing these costs from the general fund. /11. Consider developing a plan to reduce appropriations or delay future financial obligations as a strategy to cover the potential loss of state aid payments. If aid reductions do not materialize, you could make later adjustments in your budget. A.) Any state aid or credit cuts might not be enacted into law until the session ends, which will likely be in late May. The cuts would likely be applied to the July and December 2003 LGA distributions and to the October and December 2003 MVHC reimbursement payments. Cities will already be nearly five full months into the fiscal year, which means that spending reductions would have to be applied to the remaining seven months of expenditures. B.) You may want to consider budgeting for one-time expenditures that replace long-term ongoing costs, such as technology investments that might replace a staff position or consultant contract. C.) Consider delaying any hiring decisions until the Legislature crafts its budget during the 2003 session. D.) Consider delaying major purchases, as well as delaying new or expanded program initiatives. IV. Consider drawing down reserves to cover the loss of state aid. A.) Carefully consider the periodic cash flow needs of the city before deciding to draw down reserves. City fund balances are generally measured on December 31 of each year. This is a "high water mark" for city budgets given the structure of state aid payments and property tax distributions. An analysis of necessary reserves on a daily or weekly basis would provide a more accurate picture of the city's cash flow needs. B.) State aid and credit cuts could be permanent and, ultimately, the city would have to increase taxes or reduce spending to avoid a long-term city deficit. C.) Drawing down reserves could potentially affect your city's credit rating and possibly increase the cost of future borrowing for the city. r" . r . . For Ulore uuonnation The 2003 budget year promises to be a wild ride. Keep your eye on the Cities Bulletin and visit the lMC web site (www.lmnc.org) for the latest information about developments with city aids and the state budget. If you have any questions, please contact Gary Carlson, Eric Willette or Jenn O'Rourke at (651) 281-1200. ~ ... ~ ... BUDGET DETAIL (Available upon request)