HomeMy WebLinkAbout1986-09-08_BUDGET MEETING` M E M O R A N D U M
TO: Mayor Courtney & Council Members
FROM: Kenneth E. Rosland, City Manager.��F,_
SUBJECT: 1987 BUDGET
DATE: September 8, 1986
I am pleased to submit to you for consideration the proposed 1987 City
of Edina Budget. The preparation of this budget has proved to be a
valuable learning.experience for our staff. We now particularly
appreciate our past Finance Director's talents regarding budget pre -.
paration and financial management. However, the recent transition in
the Finance Department has caused some timely and beneficial changes
to our budgetary process -- changes which allow a better understanding
of the budget by our department heads as well-as the City Council.
This results in more informed decision - making by you and more effective
management by the staff.
Budget Format
I have advised you on past occasions of our plans to prepare a revised
format for this year's budget. Our goals for this new format were to:
- Provide a more understandable budget document for the Council,
staff and public
- Develop a linkage between service levels and expenditures
- Utilize the budget document as an expense manual for accounting
purposes so as to provide a more direct interface between our
financial reporting system and the budget
- Retain continuity with past budgets
Although the new format will be fine -tuned in future years, we hope you will
agree that the new budget format goes a long way toward accomplishing these
goals. ;.
The major changes in the budget format are as follows:
- In the past, two expenditure summaries were provided for each program.
We have combined these summary sheets into one schedule for this year's
budget.
- A summary of services has been provided for each program which identifies
the staff complement, describes the services provided by the program,
and explains significant changes in expenditures or changes due to the
September 8, 1986
Mayor Courtney and Council Members
Page Two
new format. Please note that the personnel complement is located here
rather than as line items in the expenditure summaries. Please refer
to the Personnel Compensation Rates in the Budget's appendix to determine
precise rates of pay.
- The equipment replacement schedule has been incorporated by reference
and appears under the equipment budget of each department. Any
additional equipment is specifically identified by department.
- All insurance costs have been consolidated in Central Services - General
which is then allocated to all departments based on use.
- The budget's contribution to the capital improvement plan has been
consolidated rather than spread among several departments.
- Certain maintenance programs have been shifted between Park maintenance
and Public Works.
- Some account codes have changed to allow better use of the budget as
an expense manual.
1987 BUDGET
Expenditures
The proposed 1987 Budget represents a $780,656 or 7.36% increase from the
1986 Budget. The principal components of this increase are as follows:
- Wages and Salaries. We propose a 3% adjustment of wages and salaries
for 1986. This results in an increase of approximately $243,000.
- Insurance. We propose to increase our insurance budget by approximately
$193,000, which reflects our anticipated increase in next year's insurance
costs as well as unanticipated losses incurred this year. We have
taken a conservative approach to budgeting for insurance recognizing,
however, that the City will likely continue to purchase insurance on a
retrospective basis which may ultimately lessen our cost due to refunded
premiums.
- Equipment Replacement. The equipment replacement schedule represents
a $114,000 increase or 19% compared to the 1986 expenditure for this item.
- Speed Control Program. A speed control program costing $58,000 is
proposed to be added in the Police Department. We anticipate, however,
that the cost of this program will be totally offset by increase revenues
resulting from this program.
- Centennial. $25,000 has been budgeted for this celebration.
- Recycling. We propose expanding the door -to -door recycling program
to all homes east of T.H. 100. Total expenditures of $77,332 are
principally offset by increased revenues, thus resulting in a net
cost of $22,375.
- Sidewalk Snow Removal. We recommend upgrading our snow removal efforts
through purchase of additional equipment costing $45,000.
- Increased Seal Coating. We recommend increasing seal coating mileage
from 15 to 17 miles annually at an increased cost of $15,000.
September 8, 1986
Mayor Courtney and Council Members
Page Three
REVENUES
Non -Tax Revenues
We reported to you during our budget planning sessions that a decrease
in non -tax revenues was anticipated in 1987. After re- evaluating our
revenues, we believe that our 1987 non -tax revenues will be approximately
the same as 1986. Principal increases are attributable to the speed
control revenues, recycling revenues, and increased billings for staff
services to the HRA.
Tax Revenues
The proposed 1987 Budget will require an increase in tax revenues of
$776,592. Based upon our increase in assessed valuation, we would expect
an adjustment in our mill rate from 11.303 mills to 12.192 mills.
Tax Impact on Property Owners
The resulting increased City mill rate would add approximately 8/10 of 1%
to the tax bills of commercial properties. Because of legislative changes
in calculating assessed value of higher valued residences, a reduction in
taxes of approximately 2% on the average Edina home will occur next year
even with the proposed mill rate increase.
NO MILL RATE INCREASE SCENARIO
The Council requested staff to prepare a fourth scenario based upon no
increase in the present City mill rate. This scenario is attached.
KER /sw
Attachment
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Scenario 4 assumes no increase in the 1986 City mill rate of 11.303 mills.
If the mill rate were held constant, a reduction in expenditures of $599,244
would be required. The following lists potential budget cuts for consider-
ation. If the Council wishes to pursue this scenario, we, of course, suggest
more detailed study prior to recommending final reductions.
ITEM
Reduce salary adjustment to 2z%
Eliminate Council salary increase
Maintain 1986 equipment replacement funding
Eliminate C.I.P. funding
Eliminate LMC, MLC, AMM
No door -to -door recycling
Eliminate parking ramp maintenence budget
Eliminate Human Relations budget
Eliminate South Hennepin budget
Reduction in personnel
AMOUNT OF REDUCTION
40,500
10,000
114,000
180,000
36,000
18,000
47,180
61,900
14,256
77,408
$599,244
H.O.M.E.
Services include:
Maintenance:
• Painting interior /exterior — also wallpapering
• Fix leaky faucets, drain cleaning
• Trouble shoot electrical problems, replace
switches /receptacles
• Carpentry: door, window and trim repair
• Install safety rails, extension telephones
• Major appliance repair
• Concrete repair; gutter and roof repair
• Shrub trimming, sodding and landscaping
• Call for services not'listed
Homemaking:
• General housecleaning
• Laundry
• Grocery shopping
• Meal preparation
Seasonal Work:
• Snow removal
• Lawn mowing
• Leaf raking
• Window washing
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Serving Bloomington, Eden Prairie, Edina and Richfield
I
is a non - profit service that provides elderly
residents with an affordable means to maintain
their homes:
• serves Bloomington, Eden Prairie, Edina and Richfield
• serves residents 60 years old and over; residents under 60 who are
disabled may also be eligible
• charges are determined by a flexible fee scale based on ability to pay
• services are provided by trained and qualified staff; the work is
guaranteed
r
REQUEST FOR SUBSIDIZED DAY CARE
FROM GREATER MINNEAPOLIS DAY CARE ASSOCIATION
RESULTS OF FACT - FINDING BY THE EDINA HUMAN RELATIONS COMMISSION
September 12, 1986
1. The need exists among low- income families, especially
single-parent families, for financial assi stance with the cost of
day care. Evidence of the need is that two families are now
l
receiving day care subsidies from the county and four more
are on a waiting list for assistance. GMDCA believes that most
families in Edina qualifying for the subsidy would be in
transition because of divorce or death of the primary wage
earner.
2. The GMDCA asks the City of Edina to place $15,000 in a drawing
account, available to pay subsidies for day care as the services
are used by eligible families. City funds would be used only
after county and state funds ran out.
Families have freedom of choice in selecting their day care
provider. They contribute a percentage of gross monthly income
according to a sliding scale developed by the state.
3. The expected benefit from subsidizing day care is to allow
low- income parents to attend school or training programs, thereby
developing marketable skills or qualifying for higher - paying
jobs. The eligibility period is limited to four years, allowing
someone with no higher education to obtain a bachelor's
degree. Experience in Ramsay County is that "for $1,000 spent on
parent subsidies and administrative costs, the benefits were
$1,627 from taxes withheld from parent earnings plus AFDC money
saved."
4. GMDCA limits the total of subsidy plus family contribution to
125 percent of the average day care rate in the Twin Cities area
thus exercising some control over the rates charged. (The day
care provider must charge the same rate to subsidized families
are to non- subsidized families.)
The agency would bill the city as invoices from day care
providers came in, adding a 9 percent administration fee.
Several other suburbs have subsidized day care using Community
Development Block Grant funds. We contacted city employees in
four of those communities. All indicated satisfaction with the
program and with GMDCA's administration of the funds.
5. There is no comparable service (subsidies) being provided by
the city, school district or community education. However, the
director of the schools' latch -key program has endorsed the
subsidy plan.
The Edina Schools' task force on the changed and changing
learner noted "a growing financial gap between single- parent
families and the more affluent traditional Edina families - -which
has both economic and social implications for children."
Subsidized day care, allowing parents to upgrade their job
skills, would help to narrow this gap.
b. It is possible that more families would seek day care
services, public and private.
7. The GMDCA's proposal included no endorsements from other
community organizations. In fact, only one Edina day care
provider is a member of the GMDCA.
S. This request was ranked second of four by the Human Relations
Commission at its August 29 meeting.
1986 -'87 funding levels
1 - Brooklyn Park - 25,000
2 - Crystal - 10,000
3 - Eden Prairie - 5,400
4 - Golden Valley - 10,000
5 - Maple Grove - 6,000
6 - New Hope - 10,000
7 - Plymouth - 20,000
8 - Richfield - 13,400
9 - Robbinsdale - 5,440
10 - St. Louis Park- 15,000
11 - Wayzata - 3,000
Minneapolis 683,908*
* Portion of this to sliding
fee portion to direct grants
to centers and support services
Grace Norris
Community Organizer for
Child Care in the Suburbs
GN /aml
C�neater Minneapolis Day Care Association
Dale Anderson, Executive Director a Lehmann Center a 1008 West Lake a Minneapolis, Minnesota a 812 - 823 -7243
Cooperating Fund Drive
Member OrgenlaMion
SH HSC
August 5, 1986
City of Edina
4801 West 50th Street
Edina, MN. 55424
HENNEPIN HUMAN SERVICES COUNCIL
Bloomington • Eden Prairie • Edina • Richfield
Attention: Ceil Smith, Assistant City Manager
Dear Ceil:
Enclosed is a copy of South Hennepin's 1987 Community Planning Proposal.
Please note in particular our 1987 Goals & Objectives as well as the
total proposed budget for South Hennepin at the end of the proposal.
In addition, attached to this letter is South Hennepin's 1987 request
for support to each of the four cities of South Hennepin with a com-
parison to 1986. (see attachment I)
The requested increase to each of the four „cities -is based on .a 4 %,.6oif
of living In, addition, _Edina's request >in 1987 ;i= ncludes the: in kind
cost -sof .the audit', and a X5,000- _increase An. general :f.unds,, for t)ie H.0.M.E.
program.
In the past we have requested funds for H.O.M.E. only under Community
Development Block Grant (CDBG). In 1987 we are requesting monies from
general fund as well in order to meet the increased demand for this
program. (see attachment II)
We appreciate Edina's support of South Hennepin Human Services Council
and its programs. Please call me if you need more information about the
proposal.
Sincerely,
Larry Op Id
Executive Director
LO:fr
Enclosures
9801 Penn Avenue South • Room 106 • Bloomington, Minnesota 55431 • (612) 888 -5530
1987 Municipalities' Proposed Contributions to SHHSC Programs
% of General Total % of Total Per capita
Cif. Population Total Funds CDBG In Kind Request $ Requested Support
Bloomington 84,195 .44 $14,032 $15,000 $36,307 $65,339 .50 $ ,78
Eden Prairie. 24,052 .12 6,824 1,800 8,624 .07 .36
Edina 47,482 .25 t7f% Off 8,000 1,846. 24,102 .19 .51
Richfield 36,910 .19 17 032 5,500 8,446 309978. .24 ,84
T9-2 ,639 52, 44 30,300 46,599 $T29,043
Pls note the following:..l. Population statistics are based on Hennepin County's Census Bulletin Population Projection
except for Eden Prairie which is based "n actual census figures conducted in 1985. 2. In the category of General
Funds, the amount requested from Richfield includes $10,000 for the H.O.M.E. Program and the amount requested from
Edina includes $5,000 for the H.O.M.E. Program. 3. The Shared Transportation Program (STP) is requesting for 1987
in the category of General Revenue the following: $5,000 from Bloomington, $92 from Edina in the form of inkind for
the audit, $1,000 from Eden Prairie and $1,000 from Richfield plus $83 payroll inkind.
Pls. note how the In Kind category is calculated:
Edina: Audit $1,846
Richfield: Payroll $1,664 plus 6 782 for Charaka = $8.,446
Bloomington: Office Space ($15,189 ) Drop In Center space $14,336 plus $6,782 for Charaka m $36,307
1986 Municipalities' Contributions to SHHSC Proqrams
v
% of
General
Total
% of Total
Per capita
City
Population
Total.
Funds
CDBG
In Kind
Request
$ Requested
Support
Bloomington
84,195
.44
$ 8,685
$15,000
$30032,
$54,317
.55
$ .65
Eden Prairie
24,052
.12
5,600
2,70Q
8,300
.09
.35
Edina
47,482
.25
81900
8,000
16,900
.17
.36:
Richfield
�36 91�0
1929639
.19
59800.
8,985
7 200
$32,900
5,731
37,463
18,731
98,348
.19
•.51
v
RATIONALE FOR FUNDING H.O.M.E. THROUGH GENERAL FUNDS
For the past seven years, H.O.M.E. has been providing Edina
with a maintenance /homemaker program for its low and moderate
income elderly. Each year the program has grown in size.
Requests for service continue to increase. In the past twelve
months, July 1, 1985 to June 30, 1986, H.O.M.E. provided 3,723
hours of direct service to 126 Edina households. Traditionally,
Edina's support of the program has come through the Community
Development Block Grant Program.
Based on Edina's CDBG grant support of $9,600, the city provided
$2.58 for every unit of service provided. The total per unit
cost was $17.26. ell-
The majority of funding for H.O.M.E. services was provided by
other funding sources including the County, Council of Churches,
Metro Council, and client fees. In 1985, less than 20 of the
119 households served by H.O.M.E. in Edina were supported by
CDBG.
In 1987, funding from these sources does not appear adequate
to meet increased caseloads of the H.O.M.E. program. The county
is allowing no increase in its grant request. The Metro Council
grant for 1986 -87 was decreased $2,000.00. CDBG funds from Edina
will decrease from $9,600 to $8,000 for 1986 -87. Total cost
per unit in 1987 is projected at $17.90.
H.O.M.E. has been the main supportive service to elderly in
Edina. The program is run efficiently on the local level with
relatively low administrative costs. In 1987 we plan to meet
Edina's increasing need for elderly services. As a result, we
are formally requesting a $5,000 appropriation from general
funds in addition to an expected CDBG allocation of $8,000.
PILOT PROJECT AREA — ROUTE MAP
Collection will be once a month on WEDNESDAYS.
To determine your collection dates, find your location on the map below.
1986 Collection Dates
May June July Aug. Sep. Oct. N
Nov. Dec.
1st Wednesday route 7 4 2 6 3 1 5
5 3
2nd Wednesday route 14 11 9 13 10 8 1
12 10
3rd Wednesday route 21 18 16 20 17 15 1
19 17
4th Wednesday route 28 25 23 27 24 22 2
26 2
7Tuesday
4th S t 'NOTE: Route boundaries go down the center of the streets. 54th S t
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' • C[NTCa UNION ij 11C� TO
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Crosstown Highway _= - --
The Edina Recycling Program is sponsored by Hennepin County and the City of Edina.
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CITY OF
EDI NA
RECYCLING
GLASS Rinse food from jars
9' °�•e r�� Remove lids, caps & metal rings
A Avoid breaking
Clear Separate by color into paper bags
Green clear
Brown CANNOT BE RECYCLED
window glass
oven -proof glass
Put paper in grocery bags
PAPER j. or cardboard cartons
Newspapers
CANNOT BE RECYCLED
Letters telephone books, catalogs
Plain envelopes magazines, glossy paper
no windows, clasps or tape
METAL
Pop & beer cans
Aluminum foil & trays
"Tin" food cans
such as soup cans
-L irL
CAAS
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V
1(vp
Rinse food from cans & trays
Cans may be flattened
Sort & put into paper bags
CANNOT BE RECYCLED
aerosol spray cans
PUT RECYCLABLES BESIDE YOUR HOUSE OR GARAGE BY 8:AM ON COLLECTION DAY.
No alley pick -up.
KEEP GARBAGE AND RECYCLABLES SEPARATE.
Some garbage haulers also have Wednesday pick -up.
MISSED COLLECTION- -
If recyclables are not picked up by the end of the collection day, call the Edina
Recycling Office, 927 -8861, ext 236, the following morning.
SEVERE WEATHER- -
Watch Edina Community Bulletin Board on cable TV channel 12 for announcements.
Make -up collection would usually be made on Friday following a cancellation.
Recycling Pilot Pr®ject
Participation Rates
RCGt�C I t n
1937
Z. 35D
ColleGLtom
Pro poso -1
Homes
(3.lt*D- Pilot probed.
3 ZSD - rtew route arC&S
CITY OVEDINA