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HomeMy WebLinkAbout19960617_specialI I MINUTES OF THE SPECIAL MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL JUNE 17,1996 - 5:OO P.M. ROLLCALL Answering rollcall were Members Kelly, Paulus, Smith and Mayor Richards. Mayor Richards stated the purpose of the special meeting was to consider proposed 1997 Budget assumptions. 1997 PROPOSED BUDGET ASSUMPTIONS AND ADJUSTMENTS PRESENTED Manager Rosland presented the following budget assumptions and adjustments as proposed by staff: REVENUE ADJUSTMENTS: I. PRE-SCHOOL PROGRAM REVENUE - If the Council approves a preschool recreation program, $1,200 in program fees are anticipated. 2. CABLE EARNINGS - The CATV trust fund totals approximately $800,000. It is proposed to transfer earnings from this fund to support the budget. Estimated earnings are $40,000 annually. 3. INVESTMENT EARNINGS - Earnings from the City’s Working Capital Fund are proposed to be transferred to the General Fund to support capital improvements proposed to the 1997 Budget. EXPENDITURE ADJUSTMENTS: 1. 2. 3. 4. 5. 6. 7. 8. GENERAL ELECTIONS - A $70,000 decrease is provided because 1997 is not an election year. RESERVE REBUILD - The City has been successful in rebuilding its reserves to 10% of the general fund budget. No allocation for reserve rebuild is needed this year. CAPITAL PROGRAM - Funding for the capital program has been removed as a line item in the budget. It should be noted, however, that capital funding for City Hall and other improvements is included later is these assumptions. COUNCIL SALARIES - It has been many years since elected official’s salaries were increased. Therefore, $5,000 is provided for this purpose. ADJUSTMENT OF FLEXIBLE BENEFITS - $23,500 ($10 per month per employee) has been provided for the City’s contribution to City provided benefits. VOTING MACHINES - The City has been advised that its voting machines must be replaced in four years. It is recommended that $37,500 be provided annually for the next four years for this purpose. EQUIPMENT REPLACEMENT - $13,500 has been added to the equipment replacement budget to provide for the replacement of computer equipment at five year intervals rather than seven year intervals. PC SUPPORT - The Council authorized hiring a part-time computer support person earlier this year. This part-time positions now must be included in the budget. PARKS 9. PRE-SCHOOL PROGRAM - A recreation program serving pre-school aged children is suggested 10. TUBE SLIDING - This program would improve a portion of Braemar Park for winter tube sliding. 11. SENIOR CENTER - The staff has conducted several meetings with Southdale YMCA concerning incorporating the Edina Senior Center into the Y’s proposed expansion and renovation project. The capital cost associated with the Senior Center portion is estimated to be $1.3 million. An annual expenditure of $100,000 is proposed to amortize this debt over a 20 year period. which would add $5,750 to the budget. This would be partially offset by program fees. MlNUTESlEDlNA CITY COUNClLlJUNE 17.1997 SPECIAL MEETING PUBLIC WORKS 12. UPGRADE GAS SYSTEM - The City is under federal mandate to upgrade its fuel handling and storage system at the Public Works Garage. $42,000 has been provided for this purpose. POLICE 13. UPGRADE DISPATCHERS TO FULL TIME - Presently, dispatching has been handled by six full time and two part-time employees(32 hours per week each). It has become extremely difficult to recruit qualified part-time dispatchers for a variety of reasons. 14. PSLO - $62,000 has been provided for an additional police school liaison officer. 15. RECORDS RETENTION - State law regulates the retention period of records generated by the Police Department. Due to storage constraints, an expenditure of $5,000 is proposed to manage these records through microfilming or computer imaging. 16. TRAFFIC TRAILER - $14,000 is requested to purchase a portable device that displays the speed of traffic on a reader board. This device increases driver's awareness of excessive speeds, especially on neighborhood streets. 17. SQUAD CARS - The City has again been advised that squad cars will substantially increase in price next year. $1 6,000 has been provided to cover this increase. 18.DATA PROCESSING UPGRADE - $50,000 has been provided to increase the capacity and speed of the Police Departments computer system. I 19. INTERVIEW ROOM VIDEO - $5,000 is needed to install a video system to record interviews 20.MOBlLE DATA TERMINAL UPGRADE - $90,000 is requested to upgrade the computer related to the commission of a crime. equipment which is placed in each squad car. 21.800 MHZ RADIO SYSTEM - The Metropolitan Radio Board is proceeding with the implementation of the 800 MHZ system authorized by State law. Edina's estimated cost to be part this system is approximately $240,000. Final cost estimates are not as yet available. 22.SECOND FIRE STATION - The City has issued a contact and work has begun on the York Avenue Paramedic Station. Our financial consultant estimates an annual debt service of $85,000 for this station. 23. CONTRACT ITEMS - $5,000 is recommended to cover miscellaneous items in the Fire Department labor agreement that are not now adequately funded. 24.OVERTIME - The Fire Department continues to exceed its overtime budget due to the ever- increasing number of calls. A $25,000 increase in this budget is suggested. 25. CONFINED SPACE RESCUE EQUIPMENT - $10,000 is recommended to purchase specialized equipment to rescue accident victims who are trapped in confined spaces. 26. DEFIBRILLATOR - $15,000 is requested to add a defibrillator to the third ambulance. 27. PRE-EMPTION SYSTEM - $20,000 is requested to add to the pre-emption system which permits emergency vehicles to trigger traffic signals during emergency runs. This system has been partially installed during past years. Page 2 MlNUTESlEDlNA CITY COUNClLlJUNE 17.1997 SPECIAL MEETING HEALTH 28. PUBLIC HEALTH CONTRACT CONSULTANT - The City has contracted for many years with Bloomington Public Health Services to provide community health services in Edina. Questions have been raised by the Council in the past as to the effectiveness of this service. The Health Department proposes to spend $25,000 to study this program and recommend changes for future years. BUILDING INSPECTIONS 29. RECORDS RETENTION - As with the Police Department, the Building Department is required to store large volumes of records and plans. $10,000 is requested to manage this storage through microfilm or computer imaging. 30. MILEAGE - A $2,500 increase in the Department‘s mileage allowance is required. 31. DATA PROCESSING SYSTEM - $17,500 is requested to replace the Department‘s building permit management system. The current system is several years old and can no longer be supported by outside contractor. COMMISSIONS AND SPECIAL PROJECTS 32. HUMAN RELATIONS - A $2,000 expenditure is planned for the Human Relations Commission’s support of several programs. 33. SHERPA - $4,100 is requested to support SHERPA. CENTRAL SERVICES 34.TECHNOLOGY TRAINING AND SUPPORT - A training and support budget of $40,000 is recommended to train and support employees with respect to new software and other technology upgrades. 35. SOFTWARE UPGRADE - The City’s technology plan will recommend converting all computer users to a standard software. A budget of $20,000 is needed for this upgrade. 36. TECHNOLOGY RELATED EQUIPMENT REPLACEMENT- A $36,000 increase in the equipment replacement budget is required to cover the annual replacement needs of the upgraded computer equipment, particularly that associated with a City-wide network. 37. CITY-WIDE NETWORK - The technology plan will recommend the installation of a City-wide network which links all PCS together. The estimated cost of this network is $1 80,000. 38. TELEPHONE SYSTEM - The City’s telephone system is over 15 years old and requires replacement. It is estimated a new system will cost approximately $1 25,000. Approximately $80,000 is available in the equipment replacement fund leaving a shortfall of $45,000 to be made up by the budget. EQUIPMENT. TECHNOLOGY & CAPITAL IMPROVEMENTS 39. EQUIPMENTRECHNOLOGY FIVE YEAR DEBT SERVICE - As mentioned earlier, scenarios 2 and 3 analyze the effects of purchasing equipment and undertaking certain capital improvements through the use of capital equipment notes and other debt financing instruments. Those items propo.sed for purchase in this way are highlighted in bold type within the scenarios. Although dollar amounts area listed for these items in scenarios 2&3, the impact on the 1997 budget is estimated in the line entitled “EQUIP/TECH-5 YEAR DEBT SERVICE.” Le. the estimated annual cost of debt service for the next five years to purchase the items highlighted in bold print will approximate $1 50,000 to $200,000 per year. 40. CITY HALL AND PUBLIC WORKS CAPITAL IMPROVEMENTS - In our opinion, the City must begin to set funds aside for remodeling/renovation of City Hall and the Public Works Garage. We Page 3 MlNUTESlEDlNA CITY COUNClLlJUNE 17.1997 SPECIAL MEETING recommend that $200,000 be ear-marked for City Hall and $25,000 for the Public Works Garage. The Council should anticipate that this will be an on-going annual expense either in the form of annual debt service or a reserve. Proposed 1997 Budget Scenarios: Three budget scenarios were presented for proposed 1997 Budget adjustments as follows: Scenario #I Total Revenues* $1 8,590,429 Total Expenditures 18,340,429 Property Tax Dollars 13,790,794 Referenda Tax Dollars-estimate 730,000 Percent Increase Tax Dollar 13.24% Percent Increase In Expenditures 11.13% Impact on Total Tax Bill 1.72% Percent Increase in Tax Dollar with Referenda 5.99% Percent Total Tax Increase with Referenda 19.23% Impact on Total Tax Bill with Referenda 2.50% "Includes loss due to abatements of $250,000 Proposed Expenditures (using Scenario 3): Salaries & Step Prog. (3.0%) Contractual Services (3.0%) Commodities (2.5%) Central Services (2.5%) Equipment (2.5%) Budget Adjustments (2.5%) Total Proposed Expenditures Percent Increase in Expenditures Proposed Revenues: Taxes Fees, Licenses & Permits Court Fines/Fund Transfers/Etc. Intergovernmental Aid Revenue Adjustments Total Proposed Revenues Proposed Revenue Adjustments: Pre-school Program Revenue Cable Earnings Investments Earnings Total Proposed Revenue Adjustments Proposed Expenditures Adjustments: Non Election Year Reserve Rebuild Capital Program General Government: Elected Official Salaries Employee Flex Program $1 O/month Voting Machines-4 yrs replace - mandate Equipment - Computer 5 year replacement PC Coordinator - % General Fund Interim Computer Policy: 13,035,744 1,977,085 1,297,250 1,424,100 91.200 17,825,379 1,200 40,000 50.000 91,200 (70,000) (84,000) (5 0 , 0 0 0) 5,000 23,520 37,500 13,500 20,000 Page 4 Scenario #2 $18,043,929 17,793,929 13,244,294 730,000 8.75% 7.81% I .14% 5.99% 14.75% I .92% 13,035,744 1,977,085 1,297,250 I ,424, I 00 91.200 17,825,379 1,200 40,000 50,000 91,200 (70,000) (84,000) (50,000) 5,000 23,520 37,500 13,500 20,000 Scenario #3 $17,824,179 17,574,179 13,025,744 730,000 6.96% 6.48% 0.90% 5.99% 12.95% I .68% 9,316,993 2,086,227 839,389 3,593,322 1,176,128 562.1 20 17,574,179 6.48% 13,035,744 1,977,085 1,297,250 I ,424,100 90.000 17,824,179 40,000 50.000 90,000 (70,000) (84,000) (50,000) 5,000 23,520 37,500 13,500 20,000 MINUTESIEDINA CITY COUNCILIJUNE 17.1997 SPECIAL MEETING Parks: Pre-School Program-Rev ($1,200) Tube Sliding Hill Senior Center 20 Yr.. Debt Service EquipmenVTechnology: Update Gas System-Federal Mandate** Upgrade 2 Dispatchers - FT PSLO Records Retention-State Mandate Traffic Trailer Squad Cost Increase EquipmenVTechnology: Data Processing Upgrade** interview Room Video** Mobile Data Terminal Upgrade** 800 MHZ Radio System** Second Fire Station - Debt Service Partially Funded Contract Items Overtime Confined Space Rescue Equipment Equipment Technology: Defibrillator** Pre-emption System** Public Health Contract Consultant Records Retention-State Mandate Mileage EquipmentlTechnology: Data Processing System** Commissions & Special Projects: Human Relations SHERPA Family Resource Center Training & Support - Technology Office Productivity Software Upgrade Equipment Replacement - Tech Plan EquipmenVTechnology: Citywide network** Phone System Replacement** Equipment/Tech - 5 Year Debt Service City Hall Capital Improvements** Public Works Capital Improvements Total Budget Adjustments Public Works: Police: Fire: Health: Building: Central Services: 5,750 5,000 100,000 42,000 34,000 62,000 5,000 14,000 16,000 50,000 5,000 90,000 240,000 85,000 5,000 25,000 10,000 15,000 20,000 25,000 10,000 2,500 17,500 2,000 1,100 0 40,000 20,000 36,000 180,000 45,000 200,000 25,000 1,328,370 5,750 5,000 100,000 42,000 34,000 20,000 5,000 14,000 16,000 50,000 5,000 90,000 240,000 85,000 5,000 25,000 10,000 15,000 20,000 25,000 10,000 2,500 17,500 2,000 1,100 0 40,000 20,000 36,000 180,000 45,000 200,000 200,000 25,000 781,870 42,000 34,000 5,000 16,000 50,000 5,000 90,000 240,000 85,000 5,000 25,000 10,000 15,000 20,000 10,000 2,500 17,500 2,000 1,100 0 40,000 20,000 36,000 180,000 45,000 150,000 200,000 25.000 562,120 **Items in bold face are included in the totals of budget scenario I, but are for illustration only in scenario 2 & 3. See note 39 for a complete explanation of these items. Manager Rosland concluded staff worked hard on the proposed 1997 budget with the goal of maintaining services levels while being reflective of the community's desires. Page 5 MlNUTESlEDlNA CITY COUNClLlJUNE 17.1997 SPECIAL MEETING Council Discussion Council briefly discussed the proposed budget assumptions and raised questions concerning: possibility of a philanthropic organization perhaps funding a portion of the defibrillator, rationale for some of the technology/equipment purchases, further explanation of mandated item, additional information regarding voting machines and dispatchers, financing alternatives for City Hall and potential percentage increases for 97 budget. There being no further business on the Council Agenda, Mayor Richards declared the meeting adjourned at 6:05 P.M. City Clerk Page 6