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MINUTES
OF THE SPECIBL HEETIHG OF THE
EDIt?A CITY COUNCIL HELD AT CrrP EUIL I JULY 6, 1992 - 5:OO P.B.
ROI.T.,CAI.T.. Answering rollcall were Members Kelly, Paulus, Rice and Mayor Richards.
Member Smith entered the meeting at 5:55 P.M.
1993 BUDGET ASmIONS PRESENTED Manager Rosland stated that the purpose of
this special meeting was to consider a proposed 1993 Budget for the City of Edina
which must be certified to Hennepin County by September 15, 1992. For 1993 staff
has proposed 14 budget assumptions, $228,000 of which is for programs mandated by
the State. In addition, staff estimated that $225,000 of taxes levied (and
budgeted for 1993) will not actually be collecte+due to property appraisal
abatements and consequences of the recession. It is also expected that $30,000
in interest income will be lost due to lower interest rates and the lower level
of operating reserves.
because overdue parking tickets are unenforceable and courts are sentencing
people who commit large offenses to community service rather than levying fines.
These items combined total $503,000 which is a 3.64% increase over 1992.
Finally, the City will not receive $20,000 in court fines
The following expenditure assumptions were presented:
1.
elections.
Elections - The City will spend about $61,000 less than in 1992 because of no
2. Sales Tax - A sales tax of 6.5% was imposed upon local governments by the
1992 Legislature.
$170,000 in 1993 based upon 1991 actual expenditures that would have been subject
to this new tax if in effect then.
3.
IMC/AMM $27,000 will be saved.
It is estimated that the City will spend an additional
IMC/AMM Membership - If the Council decides to discontinue memberships in the
4. Fire Overtime - It is expected that in 1992 the Fire Department will spend
$100,000 more for overtime than has been budgeted. Staff would recommend that
$110,000 be budgeted so that extra overtime will not be spent as an unbudgeted
expense as in the past.
5.
for the Police Department.
Police Overtime - Staff recommends that $35,000 be budgeted in extra overtime
6.
officers undergo additional training which will cost $30,000 in 1993.
Police Training (State Mandated) - The State has mandated that police
7.
undergo additional training which will cost $18,000 in 1993.
8.
dispose of hazardous materials because of dumping fees and costs associated with
illegally dumped materials and highway chemical spills.
Fire Training (State Mandated) - The State has mandated that firefighters
Hazardous Waste Disposal - During 1993 the City will spend $10,000 more to
9.
staff reduction (one street maintenance position, one engineering position, one
police position, two park maintenance positions and a number of parttime street
and park department positions). $175,000 would restore all positions; $87,500
would restore half of them.
Replacement of Staff Reductions - In 1992 the Council approved a temporary
10. Rebuild Reserve Operating Capital - During the last five years the City has
7/6/92 ' 163
eroded its operating reserve.
short-term loans to pay obligations before tax receipts are received. This
financing is estimated to cost $30,000 per year and lost interest income adds
another $30,000 cost. ,In addition, bond rating companies will be more likely to
maintain the City's excellent bond rating if reserves are adequate.
Restoring reserves to a level of $1 Million by allocating $500,000 would provide
a prudent: cushion.
general fund in 1991 to acquire land near Braemar for recycling storage.
If not replenished, the City will have to secure
Allocating $320,000 would off-set the amount taken from the I
11. Flex Increase - Increasing City's contribution to the flexible benefits
program by $10 per year per fulltime permanent employee would cost $23,040.
12. Recycling Utility - If recycling costs were passed along to users total
general fund savings would be $159.,000.
12B. Recycling Curbside - If recyclables were collected curbside savings could
reach $87,000.
14. SHeRPA/Human Relations - Human Relations Commission and the South Hennepin
Regional Planning Agency recommend an increase of $3,200 to cover operations
costs, each agency to receive about half.
The Council. then discussed and debated the following issues: tax abatements,
percent of salary increase, philosophy of memberships in LMC/AMM, police/fire
overtime, mandated training programs, replacement of staff, reserve rebuild,
establishment of a recycling utility, and curbside pickup of recyclables.
The Council also requested further information on potential tax collection,
contractual services, mandatory training programs for police/fire and the
recycling budget.
It was the consensus of the Council that staff should prepare a preliminary 1993
Budget based on salary increase of 2.0%, tax increase of 2.07% and expenditures
increase of 4.10%.
The meeting was adjourned at 6:25 p.m. with no formal action taken.