HomeMy WebLinkAbout19990706_specialMINUTES
OF THE SPECIAL MEETING OF THE
EDINA CITY COUNCIL
HELD AT CITY HALL
JULY 6,1999 -- 5:OO P.M.
ROLLCALL Answering rollcall were Members Faust, Hovland, Kelly, and Mayor pro tem
Maetzold.
2000 PROPOSED BUDGET ASSUMPTIONS AND ADTUSTMENTS PRESENTED Manager
Hughes presented a memorandum outlining proposed budget assumptions and adjusbnents for
2000. He noted that the State has imposed levy limits for another year which severely limits the
City’s ability to make changes to its service levels and/or add additional programs. The 2000
property tax levy may increase by only 2.2% which is calculated by adjusting the 1999 tax levy by
inflation and adding a growth factor based on household growth and commercial and industrial
growth. The current levy represents approximately 71% of the revenue base for the City annual
budget.
Manager Hughes noted that other legislative trends possibly affecting cities are: reverse
referendum legislation; further restrictions on the use of tax increment financing; changes in
Medicare Funding affecting Edina’s Ambulance revenue; and ”Last Best Offer” arbitration.
Manager Hughes reminded that there has been no General .Fund support for a Capital
Improvement Plan for several years. He outlined the following infrastructure needs that will
happen within the next four years:
0 City Hall/Police $7,000,000
0 800 MHz Radio System $1,500,000
0 Fire Station Improvement $500,000
0 Park Improvements $1,600,000
0 Public Safety Training Center $1,600,000
0 Sidewalks - City Portion $60,000
Manager Hughes said that possible sources of funds for the above mentioned improvements were:
internal funds (interest earnings and working capital); Bond issue - City Hall/ Police; and internal
charges to Enterprise Funds.
The status of the Enterprise funds was reviewed. It was noted that some Enterprises annually have
shortfalls while others make profits. The Liquor Stores for example have been profitable and those
profits have been used to subsidize the General Fund, the Art Center, Edinborough and Centennial
Lakes. Other profitable enterprises such as the Swimming Pool, Golf Course and Golf Dome have
been using their profits to repay operational losses from prior years as well as expansion costs. The
water and sewer fund and cable fund are breakeven enterprises that are just self sufficient.
Manager Hughes outlined expected Year 2000 Budget Expenditures and Revenues as follows:
Year 2000 Budget - Expenditures
Major Expenditure Categories
Expenditure Proposed Adjustment Rationale:
Wage Adjustment 3% Settlements
Contractual Services 2% ’ CPI
Commodities 2% CPI
Central Service 2.25 % PERA/FICA/Insurance
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MinutesEdina City CounciVTulv 6,1999
Equipment 2% ’
0 Other Required Changes:
0 Reduction in Public Safety PERA
General Election
0 Health Insurance $lO/month (+2.7%)
0 Prior year program reduction
0 Other Required Departmental Changes
Total Required Changes
Total Expenditure Increase $618,000 or 3.34% 0
CPI
($100,000)
80,000
24,000
(30,000)
141,000
$115,000
Year 2000 Budget - Revenues
Mjor Revenue Categories
Revenue Proposed Adjustment Rationale:
Taxes 2.2% Levy Limit Set by State
Fees & Charges 2% Based on Review of Activity
Court Fines/Fund Transfers 2% Higher Court Fees/Lower
Volume, other needs for liquor
funds
Intergovernmental Aid 2% HACA
Year 2000 Budget - Revenues
0 Other Revenue Adjustments:
On Sale Liquor Licenses $ 90,000
Reduction in Tax Abatements/Shortfall 50,000
0 Loss of Fairview Medical Director Subsidy (17,000)
Total Revenue Adjustments $123,000
0 Total Revenue Increase $523,000 or Revenue Shortfall of $95,000
Departmental Requests (Required Item Bold & Italic):
0 Fire Department:
0 Additional Paramedic/Firefighter $ 50,000
0 Additional Inspector/Firefighter 50,000
Total Request for 2000 $100,000
0 Public Works:
Career Development Program Budget Reallocation
Automated Truck Wash $75,000-25,000
0 Health Department:
Fund mileage shortjall $ 2,600
Noise Monitoring Equipment 5,000
Total Request for 2000 $ 7,600
Data Processing - MDT Contract $ 15,000
Semice Contracts - MDT Project 15,000
0 Equipment Replacement - LaptopsmT Project 33,000
P.O.S.T. License Fees 1,500
New Investigative Position 65,000
New Asst. Support Services Manager 55,000
0 Police Department:
Additional Inspection Expenses 7,000
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MinutesEdina City Council/Tuly 6,1999
0 Increased Overtime
Continuing Education
General Supplies
Uniforms
Crisis Negotiation Throw Phone
0 Total Request for 2000
0 New Building Software
0
0 Uniforms
0 Total Requests
0 Additional Maintenance $ due to new facilities
0 Career Development program
0 Reinstatement of Park Maintenance Position
0 Paths & Hard Surface budget
0 Goose Control Program
0 Total Requests
Building Department:
I
Convert part time support position to full time
0 Park Department:
15,000
20,000
7,000
4,000
5,000
$242,500
$ 15,000
20,000
1,800
$36,800
$ 18,000
24,000
45,000
30,000
5,000
$122,000
0 Assessing:
0 Additional Digital Camera $ 1,100
0 Additional Vehicle 16,000
0 Software Changes - CAMA System, County Connection ?
0 Part Time Summer Help 3,500
0 New Filing System 12,000-50,000
0 Consulting - Tax Court Case 1,000-15,000
0 Technology Changes:
0 Payrol pinancia1 HR Software Upgrade $10,000
0 Citywide GIS/Mapping Implementation 20,000
COUNCIL DISCUSSION
The Council discussed the budget presentation. They noted that decisions would need to be made
whether to transfer any shortfall from reserves, to cut services, to hold an excess levy referendum,
to increase the contribution from enterprises, or to increase fees. Issues raised included whether
the Council should become more involved in lobbying the legislation (over levy limits); whether
any funds had been set aside to fund City Hall/Police; the impact of future TIF restrictions, how to
improve the performance of the various enterprises; suggested that departments look at potential
areas to reduce requests, and options available to fund the shortfall. Consensus was that Council
would continue looking at budget assumptions July 20,1999 with a detailed budget available for
hearing in mid-September. It was noted that the maximum levy must be adopted by the Council
September 7,1999, but that a final budget would not be adopted until after Truth In Taxation
hearings in December.
There being no further business, the meeting adjourned at 6:30 p.m. with no formal action taken.
City Clerk
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