CC_Minutes_2008_0811 - Laserfiche WebLink

Home

To achieve compliance with these policies, structural changes must be made with regard to how the City budgets for its core functions. Under the current model, 100% of incoming revenues are spent in the current budget year. The new budget model must either; 1) allow for an increase in the property tax levy that is above and beyond what is needed in the current budget year, 2) reduce programs or services while maintaining current funding levels, or 3) a combination of the two. It is recommended that the City recognize that compliance with the newly adopted policies over a 5-year period may not now be realistic, given the property tax levy limitations. Instead, the emphasis should be to not deplete the fund balances during the three years of levy increase limits. This will delay the additional $250,000 (plus adjustments for inflation) that had been identified as necessary each year for the next 5 years. The monies that would have been directed to the City's General and Parks & Recreation Funds (which are below recommended levels) will instead be needed to fund operations. Sustainable Asset Replacement Funding Mechanisms As discussed during the 2008 budget adoption process, the City has not been setting aside sufficient funds to replace City assets at the end of their useful lives. As a result, replacement of some of the City's assets has been delayed. Ultimately this will result in higher maintenance costs, and can lead to unsafe facilities, vehicles, and equipment. For the 2009 budget year, we will create a technology asset replacement funding mechanism that will provide replacement of computers and related equipment/software on a regular basis. The appropriate level of funding will not be achieved in this initial year, due to the constraints of the levy limit. We will be able to achieve a 50% funding level. In addition, the revised comprehensive asset replacement plan put forward last year will not be achievable in the 5 year timeframe that we had hoped for, because the total funding was required to increase from $3.3 million to nearly $4.0 million. We had expected that with such increases, that beginning in 2013, the Plan would only require inflationary-type increases, with the exception of the amount for General city facilities, which may require additional funding. Safety-Related and OSHA-Required Equipment Purchases In 2008, the City Council approved approximately $50,000 to purchase replacement equipment items that have been identified in the most recent OSHA audit, and/or presented unacceptable safety risks. Funding for these items was incorporated into the 2008 budget. While an important aspect of ensuring a safe work environment, there is limited dedicated safety related expenditures recommended in the 2009 budget. Preserving Current Programs and Service Levels As you know, municipal governments including the City of Roseville are not immune to the effects of inflation and other economic impacts. In addition, the City must compete with other governments as well as the private sector for quality, high-performing employees; which requires a competitive compensation and benefit package. 2