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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.
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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
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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
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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.
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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
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