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HomeMy WebLinkAbout09.27.10 Work Session Packet City of Farmington 430 Third Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promisingfuture. AGENDA CITY COUNCIL WORKSHOP September 27, 2010 5:30 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 2. APPROVE AGENDA 3. 2011 BUDGET DISCUSSION 4. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session, all discussions shall be consideredfact-finding, hypothetical and unofficial critical thinking exercises, which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of aforlmll City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as a forlmll expression of the City's position on any given ImItter. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn~us TO: Mayor, Councilmembers FROM: Teresa Walters, Finance Director Peter Herlofsky, City Administrator SUBJECT: Budget Questions DATE: September 27,2010 REQUESTED INFORMATION: At the August 2010 Council meeting, Julie May had the following Budget comments/questions: 1. Julie May's Comment: Permits - We should budget for the same number as last year. If we have additional revenue it can go into the fund balance. Answer: We anticipate 2011 will be very similar if not better than 2010 as the economy continues to improve and building projects increase. We know there will be two CDA building projects in Farmington during 2011 (Twin ponds and senior housing). Our estimate for twin ponds is $28,000. We are working on an estimate for the senior building. Our 2011 projection was based on the numbers below. 2008 2009 2010 2010 2011 Actual Actual YTD Estimate Budget Building Permits 265,754 298,227 254,036 338,715 340,000 2. Julie May's Comment: Fines - This number is overstated. Answer: Fines are difficult to predict. $70,000 was budgeted based on a conservative average of the past two years. 2008 2009 2010 2011 Actual Actual YTD Estimate Budget Fines 75,522 67,155 44,030 60,000 70,000 c:\users\pherlofsky\documents\memo - budget questions 9-27-10.doc 3. Julie May's Comment: Charges for Services - Why did we reduce this line item in the budget? Answer: This line item includes the School Liaison, finger prints, reports, police service for special events, Pre-plat administration fees, GIS fees, fire protection contract with the townships, etc. The budgets were reduced to reflect actual past revenue and current YTD revenue. Charges for 2008 2009 2010 2010 2011 Services Actual Actual Budget YTD Budget Pre-Plat Admin 1,370 3,324 10,000 1,550 5,000 Police Services 189,796 152,291 235,000 94,323 200,000 4. Julie May's Comment: Investment Interest - This is too high and should be reduced. Answer: This line item was prepared in late June when we negotiated a rate of over 2% with our local bank. At this time we also had long-term investments earning around 3- 4%. Since then, interest rates have rapidly declined. Long-term investments have matured or were called and put into much lower rates. It is not easy to predict interest rates. 5. Julie May's Comment: What is the plan to eliminate the deficit in the Rambling River Center and Senior Center Funds? Answer: The combined deficit in these funds is currently ($265,421). The RRC has an inter-fund loan for $100,000 which will be paid by the General Fund over the next five years. I plan to move this loan into the GF - reducing the liability and the Fund balance by $100,000. Deficit Room Naming Rights (over 4 years) Inter-fund Loan (Paid by the General Fund) Donations (over 4 years) Total (265,421 ) 27,000 100,000 24,000 (114,421) 6. Julie May's Comment: What is the plan to eliminate the deficit in the Arena Fund? Answer: The current Arena Fund deficit is ($256,686). We plan to reduce the deficit over time. The deficit started when the transfer from the GF ended in 2008. 7. Julie May's Comment: Street Light Utility Revenue - Not predictable. Look at why the billing varies. Answer: Street light utility revenue is very predictable. The City is split into three areas or groups. The City sends Utility Bills every 3 months. You do not see any revenue in January or February because we did not send the first bill until March. At the end of March, a bill was sent to Group 1 for January - March. This Group was billed again in June for April - June. You will see consistency in the revenue if you compare the March revenue to the June, and September Revenue (Group 1) or April and July (Group 2), or May and August (Group 3). In January Group 1 will owe for November, December, and January. The November and December revenue will go into December. This will be approximately $9,288 or 2/3 of the average bills. In February Group 2 will owe for December, January, and February. December's revenue will also go into December 2010. This will be approximately $3,493 or 1/3 of the average bills for Group 2. GROUP 1 March 2010 June 2010 Se t 2010 Dec 2010 Billin Dates GROUP 2 A ril2010 Jul 2010 Oct 2010 Jan 2010 GROUP 3 Ma 2010 Au 2010 Nov 2010 Feb 2010 The total revenue added at the end of the year is anticipated to be $12,781. However, we are also one month behind on expenditures. Average monthly expenditures are $13,500. This should also be consistent unless we have repairs or costs other than utilities. After a closer review of this fund, we will end up with a deficit at the end of the year. J~CL City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: FROM: Mayor and Council Members Peter Herlofsky, City Administrator Teresa Walters, Finance Director SUBJECT: 2011 Preliminary Budget DATE: September 2, 2010 STATE REQUIREMENTS Pursuant to State law, the Mayor and City Council are required to establish a 2011 preliminary property tax levy by September 15, 2010. Enclosed is the resolution to set the 2011 preliminary tax levy and adopt the 2011 preliminary governmental budget. Also enclosed is a summary budget showing the 2011 Department requests, the $400,000 reduction in property taxes (proposed by council), and the 2011 revised AdminlAtrator budget. The proposed preliminary levy increase is 3.73%. When the Council adopts the final levy on December 6, 2010, the final levy cannot be higher than the preliminlll'Y levy, but it can be lower. There will be a public hearing at this meeting, allowing the public to comment on the final budget proposed. PROPOSED BUDGET The 2011 proposed General Fund expenditures (without transfers) are $8,884,855, a 2.6% decrease from 2010 expenditures. A summary of the budget changes include: $254,052 or 4.46% decrease in the General Fund Levy $562,072 or 27.52% increase in the Debt Service Levies $65,051 increase in the Market Value Homestead Credit Levy $64,409 decrease in the Fire Relief Levy 3% increase in Police Salaries $32,271 decrease in investment income $115,000 increase in Building Permit Revenue $233,973 increase in Fiscal Disparity Revenue 119 In 2011 the City will receive $233,973 in additional Fiscal Disparity Revenue. This has allowed us to reduce the levy for the 2006A Debt Service bond. In 2010 the Council authorized the issuance of $2,455,000 in Street Reconstruction bonds, and $1,145,000 in an Arena Equipment Certificate. The 2011 levy includes enough to make the interest payments. The first principal payment on these bonds will be due in February 2012. A breakdown of the levy increase is shown below: Levy Use General Fund MVC - State Levy Fire Relief Levy General Levy Total / G.O. Improvement - 2003A G.O. Improvement - 2005B G.O. Improvement - 2006A Equipment Certificate - 2005D Wastewater Treatment - 1995 Public Pl'oject Revenue - 200lA Public Pl'oject Revenue - 2010A G.O. Capital Improvement - 2005C G.O. Capital Improvement - 2007A Public Safety Revenue Bonds -2007 (DCC) Street Reconstruction - 2010C Ice Arena Equipment Certificate - 2010D Total Levies Above the General Levy Grand Total Levies 2010 Levy 2011 Levy $ 5,694,448 350,000 195,584 $ 5,440,396 415,051 131,175 $ 6,240,032 $ 5,986,622 Levies Allowed Above Le~lative Limits $ 249,918 $ 249,918 200,000 200,000 77,200 509,572 167,900 162,600 60,000 60,000 350,000 144,120 733,700 59,450 390,000 144,120 733,700 59,450 75,000 20,000 $ 2,042,288 $ 2,604,360 $ 8,282,320 $ 8,590,982 120 Difference $ (254,052) 65,051 (64,409) $ (253,410) $ 432,372 (5,300) (350,000) 390,000 75,000 20,000 $ 562,072 $ 308,662 .4.46% 18.59% -32.93% -4.06% 0.00% 0.00% 560.07% .3.16% 0.00% -100.00% 100.00% 0.00% 0.00% 0.00% 100.00% 100.00% 27.52% 3.73% BUDGET BREAKDOWN BY DEPARTMENT The chart below shows the 2011 Requested budget Engineering 10.14% Administration 12.03% MunIcipal Services 8.76% Human Resources 2.81% Finance 5.22% Pollee 41.72% The Chart below shows the allocation of expenditures after the Council requested $400,000 reduction. Parks & recreation 11.31% Human Resources 2.80"10 Municipal Services 8.89% Finance 4.76% Engineering 9.94% Fire 7.16% Pollee 43.14% From the two charts, you can see that the allocation to the Police Department shifted from 41.72% of the budget to 43.14% of the budget. We reduced Municipal services by one part- time position; however, due to higher reductions in other areas, this area also had an increase. All other areas of the City showed reductions. 121 REVENUE BREAKDOWN: The chart below shows that property taxes continue to be our largest source of' revenue. Prior to the $400,000 Council requested reduction, property taxes were 77.9% ofthe budget. Charges for services 6.19% Transfers in 3.78% General property Taxes 76.79% BUDGET IMPACT Our tax capacity information is provided by Dakota County. The information projects a decrease in tax capacity from the previous year, resulting in an increase in the total tax rate. The 2010 rate was approximately 49.24% and the 2011 rate is estimated at 56.22%. This tax rate is used in the calculation of the property tax impact for each residential, commercial, and industrial property; therefore, the tax payer is impacted not only by the tax levy itself, but also by the decrease in tax capacity. Another factor included in the calculation is the decline in home values. A decline in home values will reduce the impact of the increased levy and tax capacity. OTHER FACTORS The City of Farmington is faced with a 3.9% Levy Limit for 2011, the last year of mandated levy limits. The Department of Revenue has calculated our levy limit for 2011 as $5,428,675. This does not include any of our special levies: Market Value Credit State 122 Levy, Fire Relief Levy, Debt Levies, and the special levy for Police and Fire Salaries. We are well within the levy limits when you include all special levies. In 2010 the State cut our Market Value Homestead Credit (MVC) by $350,000. In 2011 we will see a reduction of $415,051. We are required to levy for the MVC; however, we will not see any of this revenue and therefore cannot count on it within our budget. COUNCIL REQUESTED BUDGET REDUCTIONS: Council asked staff to bring back a budget that shows a $400,000 reduction and a $500,000 reduction. As mentioned previously, the budget can be reduced but not increased. The budget reductions do not include reorganization of the management staff or the elimination of the Economic Development Specialist position. Further reductions will be brought to Council at a later date. The Preliminary budget includes the $400,000 reduction. Details of the 2011 Levy reduction and the impact are provided on the next six (6) pages. ACTION REQUIRED Staff recommends approval of the 2011 Preliminary Budget with a Preliminary tax levy increase of 3.73%. Staff also recommends approval of setting the public hearing (previously the Truth-in- Taxation hearing) for adoption of the final budget on December 6, 2010 at 7:00 PM, our regularly scheduled Council meeting date. 123 2011 Budget Reductions Budget Account Reduction Dept Number Item Impact (Increase) Administration / Finance Leolslatlve 1005.6460 Dues & Subscriptions Metro CIties Dues 6,340 Administration 1010.6210 Office Supplies Reduce Office Supplies 10,000 1010.6220 Equipment Supplies Reduce Equipment Supplies 500 1010.6403 Legal Use Attomev less 4,750 1010.6450 Outside Printing No outside forms 1,000 1010.6460 Dues & Subscriptions Newspapers 500 1010.6485 Mlleaoe Reimbursement Reduce travel 100 1010.6405 Equipment Repair service Reduce use of coolers 5,000 1010.6555 EquIpment Rental Reduce copies/ no color 5,000 Historical Preservation 1006.6401 Professional Services Reduce Consultant Activity 400 Communications 1014.6401 Professional ServIces Misc Publications 1,000 1014.6445 Postaoe Reduce postage 2,500 City Hall 1015.6240 BUilding supplies New building, less to fix 1,500 1015.6421 Municipal services No charges to the CIty 2,500 1015.6422 Electric Turn off lights/lower air condition 1,250 1015.6423 Gas Winter" lower thermostat 1,250 1015.6505 Equipment repair service New bUlldlmJ, less to fix 1,140 Finance 1021.6412 Cell phone 120 Community Development 1035.6401 Professional Services Less help 2,300 1035.6460 Dues & SubscriptIons LImIted support 385 1035.6470 Training limited tralnlna 300 Total Administration/Finance $ 47,835 Human Resources 1011.6401 Professional Services Mandated employee training 3,300 1101.6401 Professional Services Labor attomev 1,500 1101.6401 Professional Services EAP 2,000 1011.6450 Outside printing 500 1011.6494 Advertising Limit employment advertising 4,000 TOTAL Human Resources $ 11,300 Information Technology 6112 Overtime No after hours support 4,493 6152 FICA 343 6270 Fuel No Impact" not used 400 6210 Office Supplies 1,500 6401 Professional Services SecuritY Training 750 6402 Data processing Limits help on server build & repair 4,800 6505 Equipment Maintenance Cut Mtnce aareements on IT equip 2,950 Reductions allocated to other funds (6,459) Total Information Technoloav $ 8,777 124 2011 Budget Reductions Budget Account Reduction Dept Number Item Impact (Increase) Police Admin Wages Services/suoolles 1050.6401 Professional Services Animal Control 10,000 Police Patrol 1051.6250 Suoplles ShootIng supplies 2,000 1051.6290 Uniforms New OffIcer uniform setuo 4,000 1051.6220 Eauloment Tasers, handguns, etc. 4,000 1051.6470 Tralnina Officer tralnlna 7,000 Total Police $ 27,000 Fire Dept 1060.6120 Part-time Reduce active members from 52-47 8,170 1060.6152 FICA 625 1060.6470 TrainIng 5,695 1060.6290 Turnout gear 8,500 1060.6290 UnIforms 3,000 Total Fire DeDt $ 25,990 Enaineerlng Services 1070.6105 FT Salaries (10,000) If budget Is reached and there Is a need for this item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1070.6210 Office Supplies year. 350 If budget Is reached and there is a need for this Item a decision will have to be made as to whether to go over budget ar wait on whatever needs to be done until the following 1070.6230 Vehicle Supplies year. 250 If budget Is reached and there is a need for this Item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6272 Fuel year. 1,750 Items that cannot be completed by 1070.6401 Professional Services staff will walt. 30.000 If budget is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1070.6403 Legal year. 2,500 If budget Is reached and there Is a need for this Item a declslol') will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1070.6450 Outside Prlntlna year. 100 125 2011 Budget Reductions Budget Account Reduction Dept Number Item Impact (Increase) If budget Is reached and there is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following Engineering (Continued) 1070.6455 Mileage Reimbursement Ivear. 200 Total Englneerin" Services $ 25,160 Items that cannot be completed by PlannIng & Zonlna 1030.6401 Professional Services staff will walt. 17,200 If budget is reached and there is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1030.6403 Legal year. 3,000 if budget Is reached and there is a need for this Item a decIsion will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1030.6455 LegalPubllcatlon year. 600 If bUdget is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1030.6455 Mileage Reimbursement year. 250 Total Planning & Zoning $ 21,060 If budget is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following Natural Resources 1076.6220 Equipment Supplies year. 500 If budget Is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6230 Vehicle Supplies year. 250 if budget Is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076,6250 Other Supplies Ivear. 1,100 126 2011 Budget ReductIons Budget Account Reduction Dept Number Item Impact (Increase) If budget Is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever Natural Res (continued) needs to be done until the following 1076.6272 Fuel year. 1,500 If budget Is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6401 Professional Services year. 3,150 If budget Is reached and there is a need for this Item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the followIng 1076.6450 Outside Printing year. 100 If budget fs reached and there Is a need for thIs Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6460 Dues and Subscriptions vear. 150 If budget Is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6470 Tralnlna and SubsIstence Iyear. 300 If budget Is reached and there Is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6485 Mileage Reimbursement Ivear. 150 If budget Is reached and there Is a need fOf this Item a decision w\ll have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6505 Equipment Repair servlce~ year. 500 If budget Is reached and there Is a need for this Item a decIsion will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6510 Vehicle MaIntenance year. 500 If budget Is reached and there is a need for this Item a decision will have to be made as to whether to go over budget or walt on whatever needs to be done until the following 1076.6555 Equipment Rental year. 500 Total Natural Resources $ 8.700 127 2011 Budget Reductions Budget Account Reduction DeDt Number Item Impact (Increase) PT helps with blacktop, paint hydrants, and other misc. We have Municipal Services - street not filled this In the last 3 years due Maintenance 1072.6120 Part-time Employee to budget constraints. 14,993 1072.6152 FICA 1,147 1072.6154 PERA 1,087 1072.6158 WORK COMP 1,104 1072.6230 Vehicle Supplies Emergency Vehicle supplies 2,000 1072.6254 Signs and Striplna Limit slans and StripIng 1,000 Total Municipal Services $ 21,331 Paint for foul lines, agllme used for bali fields, grass seed, protective netting, wood fiber for protective playground surface, fertilizer and Park Maintenance 1090.6250 Other Supplies herbicide, decrease quality of turf. 12,491 Less mowing, repairs, warming house not open for season, slower response time In removing graffitI, 1090.6120 Part-time Salaries maintenance of right of way reduced 13,638 Terminate skldster lease - reduce snow removal of rinks, sidewalks, 1090.6555 Equipment Rental trails, and parking lots 5.100 Total Park Maintenance $ 31,229 Eliminate puppet wagon program, tots & likes program. This will also Recreation Program 1095.6120 Part-time reduce revenue. 1,367 Program revenue reduction (tots 1000.4662 REVENUE &tlkes) (1,325) 1095.6401 Professional Services Reduce orograms and revenues. 1095.6570 Proaram expense Use existing eaulpment next vear 3,552 Total Recreation Program $ 3,694 Reduce color paper for flyers & brochures. Reduce other office Recreation Admin 1096.6210 OffIce SUDDlies supplies. 500 1096.6230 Vehicle Supplies Reduce scraoers, air fresheners, etc 200 1096.6250 Other Supplies Reduce mise supplies & plaaues 200 1093.6272 Fuels reduce visits to City parks 1.000 No clothing purchases to Identify 1096.6290 Uniforms staff 100 1096.6412 Cell phones 1,680 1096.6422 Electric No IIghtlna of the P&R Info sign 250 1096.6450 Outside prlntlna Reduce proaram brochure from 3-2 6,026 1096.6460 Dues & Subscriptions No NRPA membership and MRPA 788 reduce training - results In lost 1096.6470 Training certifications 1,000 1096.6485 Mileage reImbursement reduce visits to City parks 600 No advertisement In Farmington Independent community guide and 1096,6492 Advertising community expo handout 500 Total Recreation Admin $ 12,844 128 2011 Budget Reductions Budget Account Reduction Dept Number Item Impact (Increase) Rambllna River Center 2410.6250 Office Supplies No office supplies 450 will have to rely on donations of Kleenex, toilet paper, and hand 2410.6240 Building Supplies soap 600 2410-6421 Municipal Services Reduce water consumption & trash 1,000 Reduce electricity by making computer lab available 3 days per week, heat building less, cool 2410.6422 Electrlcltv building less 1,000 2410.6423 Natural Gas Heat building less 200 Reduce River newsletter from 12x 2410.6445 Postage per year to 6x per year 500 2410.6460 Dues & Subscriptions Eliminate one newspaper subscriptlo 150 2410.6515 Building maintenance Defer maintenance of building 1,000 Total Rambling River Center (Reduction of GF transfer) $ 4,900 Revenue Increase (decrease) 1001.4305 Bulld!na Permits CDA, $ 20,000 (ncrease duties for other staff Two Staff Positions General Fund Confldent!al members $ 130,300 TOTAL COUNCIL REQUESTED REDUCTIONS $ 400,000 129 RESOLUTION NO. R_ -10 APPROVING PROPOSED 2010 TAX LEVY COLLECTIBLE IN 2011 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota was held at the Farmington City Hall on the ih day of September 2010 at 7:00 P.M. Members Present: Members Absent: Member introduced and Member seconded the following: WHEREAS, Minnesota Statutes currently in force require certification of the proposed tax levy to the Dakota County Auditor on or before September 15,2010; and WHEREAS, the City Council of the City of Farmington, Minnesota, is in receipt of the proposed 2011 revenue and expenditure budget. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Farmington, that the following sums of money be levied in 2010, collectible in 2011, upon the taxable property in said City of Farmington for the following purposes: General Fund Special Levy (recover MVHC) Special Levy (police Salaries) Debt Service (see attached schedule) Fire Levy Gross Levy Less: Fiscal Disparities Net Levy $4,991,144 415,051 1,987,228 2,604,360 131,175 10,128,958 (1,537,976) $8,590,982 This resolution adopted by recorded vote of the Farmington City Council in open session on the 7th day of September 2010. Mayor Attested to the day of September 2010. City Administrator SEAL 130 2011 BUDGET Summary of Debt Service Levy to be Attached and Become part of Resolution Number R_-I0 Total $60,000 249,918 200,000 144,120 509,572 733,700 59,450 390,000 75,000 20,000 162,600 $2,604,360 Wastewater Treatment bonds of 1995 Improvement Bonds of 2003A Improvement Bonds of 2005B Capital Improvement Plan Bonds 2005C Improvement Bonds of 2006A Capital Improvement Plan Bonds 2007 A Public Safety Revenue Bonds 2007 Public Project Revenue Bonds 2010A Street Reconstruction bonds 201 OC Equipment Certificate 201 OD Certificates of Indebtedness 2005D 131 CITY OF FARMINGTON, MN ANNUAL BUDGET GENERAL FUND FUND SUMMARY REVENUES General Property Taxes 6,689,874 6,747,049 7,194,035 7,194,035 7,509,547 (400,000) 7,109,547 (84,488) -1.2% Licenses & permits 360,068 376,183 316,005 371,805 411,456 20,000 431,455 115,450 36,5% Fines & Forfeitures 75,522 67,155 100,000 72, 150 70,000 70,000 (30,000) -30.0% Interest 218,602 288,555 282,271 282,271 260,000 260,000 (32,271) -11.4% Intergovernmental 596,056 423,939 407,140 403,590 405,590 405,590 (1,550) -004% Charges for services 679,067 684,932 600,600 669,250 674,626 (1,326) 673,301 (27,199) -4.5% Miscellaneous 63 266 108663 66 000 67 500 69 000 69000 4000 6.2% Total OperatJng Revenue 8 662 444 8 596 466 6 954 951 8 960 601 9290218 8 908 893 58 058 -0.6% Transfers In: EDA 48,000 0.0% Liquor OperatJons 61,000 66,300 66,300 70,007 70,007 3,707 6.6% Sewer 61,000 68,300 66,300 70,007 70,007 3,707 5.6% Storm Water 61,000 68,300 66,300 70,007 70,007 3,707 5,6% Refuse 61,000 66,300 66,300 70,007 70,007 3,707 5.6% Water 61 000 319980 68300 66 300 70 007 70 007 3707 5.6% Total Transfers In 353 000 319980 331 500 331 500 350 035 350 035 18535 5.6% Total Revenue 8,935,444 8,916,446 9,296,451 9,292,101 9,840,253 (381,325) 9,258,928 (37,523) -0.4% EXPENDITURES AdmlnlstratJon 915,194 1,033,871 1,130,445 1,130,445 1,131,837 (48,341) 1,083,496 (46,949) Human Resources 243,521 250,883 262,540 262,540 284,084 (11,513) 252,571 (9,969) FInance 601,006 538,794 469,103 492,668 490,593 (60,935) 429,668 (29,445) Police 3,437,186 3,602,620 3,762,227 3,762,227 3,924,612 (30,624) 3,893,68S 131,461 FIre ITS,870 677,986 Soo,109 800,109 672,690 (26,676) 646,014 (154,095) Engineering 895,799 838,662 926,269 926,269 953,640 (56,IT4) 896,686 (29,403) Municipal Services 904,469 647,668 797,095 805,708 823,683 (21,331) 802,352 5,267 Parks & remaUon 1 203 254 864 400 983 e63 983 663 1 000241 120031 880 10 103 453 Total expenditures 6 879 303 6 664 864 9 121 451 9 163527 Transfers out: RecraeUon operaUng 100,000 141,216 176,000 175,000 145,000 140,100 -19.9% Arene Debt service 233 973 233 973 100.0% Total transfers out 100 000 141215 176 000 175000 378 973 374073 113.8% Total expenditures 8 979 303 8 796 079 9 296 461 9 338 527 9 640 263 9258 928 -0.4% Excess(Deflclency) of Revenues and other financIng sources over Expenditures (43,859) 120,367 (46,426) 0 0 0 0.0% Fund Balance begInning of year 2139686 2 095827 2 096 827 095 627 2 095 827 0.0% Fund Balance end of year 2 095 827 2 16194 2 095 827 095 827 2 095 827 0 0.0% 132 CITY OF FARMINGTON, MN ANNUAL BUDGET GENERAL FUND DETAIL OF REVENUES BY SOURCE TAXES 4011 Ad Valorem Taxes 5,705,189 5,482,474 5,694,448 5,840,396 (400,000) 5.440.396 -4.5% 4011 Fire Levy 70,200 70,200 195.584 131,175 131,175 -32.9% 4018 Fiscal Disparities 914485 1194375 1 304 003 1 537 976 1 537 976 17.9% Total Taxes 6,689,874 6,747,049 7,194.035 7.509,547 (400,000) 7,109.547 -1.2% LICENSES 4205 LIquor LIcense 11,550 15,100 16,500 16,000 16,000 -3,0% 4207 Beer LIcense 2,175 2,000 2,000 2,000 0,0".4 4209 Club License 900 300 900 900 900 0.0% 4220 Animal LIcense 10.285 1,265 9.755 9,755 9,755 0.0% 4211 Arcade LIcense 350 350 -100.0% 4213 Massage License 1,100 1,550 1.000 1,000 1,000 0.0% 4215 Gambling L1cense/permlt 1.110 786 1,000 1,000 1,000 0.0% 4217 other License 1650 875 1500 1600 1500 0.0% Total LIcenses 29.020 19,876 33,005 32.155 32,155 -2.6% PERMITS 4306 Building Permits 285.754 298,227 225.000 320,000 20,000 340,000 51.1% 4310 Relnspectlon Fees 379 665 300 300 100.0% 4315 PlumbIng & Heating Permits 33.006 34,976 35,000 35,000 35.000 0.0% 4326 Sewer Permits 5.787 6,225 10.000 10,000 10,000 0.0% 4350 Utility Permits 3,435 4,800 2,000 3,000 3,000 50.0% 4355 Street Breaking Permits 210 70 0.0% 4350 Billboard Permits 1,130 610 1,000 1,000 1,000 0.0% 4355 Burning Permits 5,380 4,965 5,000 5,000 5,000 0.0% 4370 Other Permits 15967 5970 5000 5000 5000 0.0".4 Total Permits 331.048 356,308 283,000 379,300 20,000 399,300 41.1% TOTAL LICENSES & PERMITS 360.068 376,183 316,005 411,455 20,000 431,455 36.5% FINES & FORFEITURES 4901 FInes 75 522 67155 100000 70 000 70 000 -30.0% Total Fines & Forfeitures 75.522 67,155 100.000 70,000 70,000 -30.0% INTERGOVERNMENTAL REVENUES 4404 Federal Grants 4426 State AId - Maintenance 143.141 162,071 163,140 163,140 163,140 0.0% 4430 Stale Aid - Police 154,6n 155,277 153,000 154,000 154,000 '0.7% 4432 State Aid - POST training 9,212 10,357 8,000 9,000 9,000 12.5% 4434 State Aid - Fire 85,603 72,269 73,000 73,000 73,000 0.0% 4444 Stale Grant - Other 175,240 6,972 0.0% 4460 other Dakota County 12,163 4,959 10,000 5,250 5,250 -47.5% 4480 Other Inter-govt 16020 12034 1200 1200 100.0% Total Intergovernmental 596,056 423,939 407,140 405,590 405,590 -0.4% 133 CITY OF FARMINGTON, MN ANNUAL BUDGET GENERAL FUND DETAIL OF REVENUES BY SOURCE CHARGES FOR SERVICES 4512 Customer Service Fees 847 1,372 1,000 1,000 1,000 0.0% 4514 Zoning & SubdivisIon Fees 3,350 24,530 3,000 3,000 3,000 0.0% 4516 Pre-Plat Administration Fees 1,370 3,324 10,000 5,000 5,000 -50,0% 4552 Fire Proto Contract-Townships 182,531 205,946 160,000 170,000 170,000 6.3% 4553 Police Services ISO 1921lason 189,796 152,291 235,000 200,000 200,000 -14,9% 4612 Erosion & Sediment Control 6,600 16,000 7,000 12,000 12,000 71.4% 4614 G.I.S. Fees 1,117 5,000 2,000 2,000 -60.0% 4662 RecreatIon Program Fees 104,454 103,684 104,500 105,000 (1,325) 103,675 -0.8% 5010 Sale of Assets 14,002 2,785 1,626 1,626 100.0% 5095 Franchise Fee 75 000 75 000 75000 75 000 75 000 0.0% Total Charges for services 579,067 584,932 600,500 574,626 (1,325) 573,301 -4.5% MISCELLANEOUS REVENUES 4955 Investment Income 218,602 268,555 282,271 250,000 250,000 -11.4% 5355 Donations 4,700 0.0% 4975 Rentals 3,790 12,466 5,000 7,000 7,000 40.0% 5350 Miscellaneous Revenues 59 465 91 465 60 000 62 000 62 000 3.3% Total miscellaneous revenues 281,857 397,208 347,271 319,000 319,000 -8.1% TRANSFERS EDA 48,000 LIquor Operations 61,000 66,300 70,007 70,007 5.6% Sewer 61,000 66,300 70,007 70,007 5.6% Storm Water 61,000 66,300 70,007 70,007 5,6% Refuse 61,000 66,300 70,007 70,007 5,6% Water 61 000 319980 66 300 70 007 70 007 5.6% Total Trensfers In 353 000 319960 331 500 350 035 350 035 5.6% TOTAL GENERAL FUND REVEN 8 935 444 8,916446 9 296 451 9 640 253 9,258 928 -0.4% 134 CITY OF FARMINGTON, MN FUNCTION: All FUND: ANNUAL BUDGET DEPT. & 01\ BUSINESS UNIT General All All SUMMARY OF EXPENDITURES $ PERSONAL SERVICES 6110 Salaries-full time 4,030,381 4,181,027 4,327,227 4,493,847 (123,327) 4,370,520 1.0% 6112 Overtlme-full time 191,517 127,126 133,927 139,424 2,000 141,424 5.6% 6120 Salaries-part time 292,536 279,963 297,499 295,250 (23,168) 272,082 -8.5% 6152 FICAlMedlcare 225,853 225,312 240,708 259,485 (5,870) 253,615 6.4% 6154 PERA 396,349 434,892 457.961 486,126 (4,971) 481,154 5.1% 6158 Fire pension aId 155,803 70,269 269,000 131,175 131,175 -51.2% 6158 Employee benefits 729 773 848475 839,638 906,653 896.558 6.8% Total Personal ServIces 6 021,212 6167,064 6 565,960 6.711,959 6,546.528 -0.3% SUPPLIES 6210 Office supplies 27,081 20,287 40,150 39,550 (10,850) 28,700 -28.5% 6220 Equipment supplies 44,660 38,842 42,968 42,573 (5,000) 37.573 -12.6% 6230 Vehicle supplies 60,039 44,705 44,350 44,350 (2,700) 41,650 -6.1% 6232 Vehicle tires 8,649 0.0% 6234 VehIcle licenses 672 114 1,795 1,795 1,795 0.0% 6240 BuildIng supplies 15.501 8,234 7,250 7,250 (1.500) 5,750 -20.7% 6242 Cleaning supplies 3,253 188 2,500 2,500 2,500 0.0% 6250 Other supplies 69,344 50,110 78,200 76,700 (15.791) 60,909 -22.1% 6253 Street materials 141,249 92,835 122,500 122,500 122,500 0.0% 6254 SIgns & striping materials 4,075 5,668 7,500 7,500 (1,000) 6,500 -13.3% 6255 LandscapIng materials 2,795 2,832 4,685 4,685 4,685 0.0% 6260 Chemicals 4,272 1,117 2,950 2,950 2,950 0.0% 6272 Fuel 139,112 90,709 145,250 145,250 141,000 -2.9% 6290 Uniforms 43,847 41,631 62,950 60,700 45100 -28.4% Total Su lies 554,549 397,272 563,048 558 303 501 612 -10.9% OTHER SERVICES & CHARGES 6401 Professional services 311,124 302,454 321,028 306,078 (67,850) 238,228 -25.8% 6402 Data ProcessIng 129,146 135,878 141,275 141,275 141,275 0.0% 6403 Legal 142,083 134,099 144,680 144,680 (10,250) 134,430 -7.1% 6404 IT services 174,400 166,776 166,800 174,343 (8,777) 165.566 -0,7% 6411 Telephone 44,604 2,585 2,900 2,900 2,900 0.0% 6412 Cellular Phone 28,436 30,778 31.018 31,718 (1,800) 29,918 -3.5% 6421 Municipal Services 17,694 22,318 17,000 18,000 (2,500) 15,500 -8.8% 6422 Electric 208,610 247,436 76,250 79,250 (1,500) 77,750 2.0% 6423 Gas 66,949 60,152 70,600 75,100 (1,250) 73,850 4.6% 6426 Insurance Premiums 135,996 131,004 127,115 127,115 127,115 0.0% 6445 Postage 16,469 16,095 18,900 16,900 (2,500) 14,400 -23.8% 6450 Outside printing 20,677 18,613 24,485 23,550 (7,726) 15,824 -35.4% 6455 Legal notices publication 4,203 2,813 4,900 4,300 (600) 3,700 -24.5% 6460 Dues & subscriptions 43,279 44,402 49,310 49,040 (8,163) 40,877 -17.1% 6470 TraIning & subslstance 67,720 41,536 78,182 78,929 (14,295) 64,634 -17.3% 6485 Mileage reimbursement 10,407 7,865 12,260 11,960 (1,300) 10,660 -13.1% 6492 Advertising 585 1.004 1,000 1.000 (500) 500 -50.0% 6494 Employment advertlslng 5,114 1.473 5,000 5,000 (4,000) 1,000 -80.0% 6505 Equipment malnt. service 51,940 47,583 56,515 56,515 (6,640) 49,875 -11.7% 6510 Vehicle maintenance 171,235 160,241 163,650 163,650 (500) 163,150 -0.3% 6515 Building maintenance 4.543 21.668 2,650 2.650 2,650 0.0% 6535 Other repaIr 3.526 4,540 4,000 4,000 4,000 0.0% 6555 Equipment rental 50,309 55,643 63.200 63,200 (10,600) 52,600 -16.8% 6560 Contracted ServIces 265,908 353,255 318.575 318,575 318,575 0.0% 6570 Program expense 37,713 24,658 35.000 35,000 (3,552) 31,448 -10.1% 7420 Miscellaneous 1710 1,982 2150 2,290 2290 6.5% Tolal Olher ServIces & charges 2,014,380 2.036,851 1,938.443 1,937,018 (164,303) 1.782,715 -8.0% 135 CITY OF FARMINGTON MN FUNCTION: FUND: ANNUAL BUDGET DEPT. & 01\ BUSINESS UNIT All General All All SUMMARY OF EXPENDITURES CAPITAL OUTLAY 6940 Vehicles 171,696 52,681 54,000 54,000 54,000 0.0% 6950 MachlnelY & Equipment 117466 996 0.0% Total Capital Outlay 289,162 53,677 54,000 54,000 54,000 0.0% Total Expenditures w/out transfers 8 879 303 8 654 864 9 121 451 9261 280 8 884 655 -2.6% TRANSFERS 7310 Recreatlon 100,000 120,367 175,000 145,000 140,100 -19.9% Debt ServIce 233 973 233 973 100.0% Total Transfers Out 100 000 120 367 175,000 378 973 374,073 113.8% Total 8 979 303 8775231 9 296 451 9 640 253 9 258 928 -0.4% 136 /:?b City of Farmington 430 Third Street ..armington, Minnesota 651.280_6800. Fax 651.280.6899 www.ci.larm;ngU)11.n11l.u.-. TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: 2011 Budget Additional Reductions DATE: September 7, 2010 INTRODUCTION / DISCUSSION As part of the agenda for the September 7,2010, Council meeting, the Council has received a copy of reports from myself and the Finance Director detailing the reductions requested by the City Council. The total dollar amount in phase 1 was $400,000. This was accomplished through reductions in a variety of line items and the predicted reductions in City staff that do not require any terminations. The Council also requested items that would possibly reduce the budget for another $100,000 for a total of $500,000. Some ofthe items the Council has suggested are as follows: - Eliminate Economic Development Specialist position - Management Re-organization - Furlough - Change weekly hours worked by City employees to 36 hours (4, 9-hour days with City Hall being open 4 days a week These are some of the items we have discussed. All of them have dollar values that can be adjusted close to another $100,000. Another issue we need to be aware of is that positions within the AFSCME union that are eliminated can result in bumping of other positions; bumping personnel from positions where the original reduction results in a variety of employee changes. Also employees that are dismissed are eligible for unemployment which is paid by the City directly. The other item we are still in the process of developing is the budget and staffmg for the Deputy Registrar office. This will be discussed in the second meeting in September. Attached for your information is an Organizational Chart of the City staff. It has been a short time since the Council directed us to make changes in the budget. The largest amount of effort that took place over the last week was to adjust to $400,000 in areas we felt could be managed. CmullerlHerlofsky/Council memosl2011 Add Reductions 9-7 -1 0 137 They are still going to cause efforts throughout the year to prioritize activities in order to make sure the appropriate items are dealt with. The additional items noted in this memorandum have not received the same degree of attention based on time issues more than anything else. I would hope that the ability to adopt a resolution with the $400,000 reduction in the general fund will be sufficient to take action on September 7, 2010, and we can schedule a future time to discuss some of these additional items. Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator 138 ~ . . . r::: ~ r::: .~ III U. '5 i;' () Iu III ill III jli l) a ~J II !li III II! III II! III III III III III HI III ~ 00 II in Iii it ili II Iii ill II " ~i II _ UI II Ullllll It I II ~i ~i II 'I it 16 hn ~ It HI I! U 11 II II ill !fI' H ~ Iii !II III III d~ Jijl .!~ l!J II IA!j Ii II Jj 11 !! Jf il 61 I II 31 ~I a~ 31 U II II HI ,5 U P I~ ~ J! II ~l il II III 111 )8 8 & MS M i If h II II Ii II 139 ~ lj II It I ~ Ii !I I ~ il I; 9 ~ 1 I) I