HomeMy WebLinkAbout07.05.11 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 RETREAT
July 5, 2011
3:30 P.M.
2012 BUDGET WORK SESSION
1. CALL TO ORDER
2. APPROVE AGENDA
3. DISCUSS CITY AND EDA BUDGETS
4. ADJOURN
PUBLIC INFORMATION STATEMENT
Council workshops are conducted as an informal work session. all discussions shall be consideredfact-jinding, 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 aformal City policy
position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as aformal expression of
the City's position on any given matter.
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO: Mayor, Councilmembers
FROM: Kevin Schorzman, Interim City Administrator
Teresa Walters, Finance Director
SUBJECT: Budget Work Session
DATE: July 5,2011
Bude:et Priorities Worksheet
Enclosed on page 5 of this document, is a list of the items discussed during the Department
Council meetings held from April-June 2011. The list will be viewed as an Excel document on
the computer at the workshop. It is set up so that you can view the impact of your decisions on
the tax rate and the amount the average homeowner would pay based on the calculated tax rate.
You have the ability to change all yellow hi-lighted cells.
When you receive the file, it will show all items with "No" in Column D. With all items at
"NO", you will still see a $255,563 increase in the levy (at the bottom of the page). This is the
amount of the debt .service and operations levy increase for all essential items. A list (by
department) of the increases is provided for you on pages 7-9 of this document. A summary of
the overall levy uses and the distribution to the various debt service funds is shown on page 10.
The following is an explanation of the worksheet (sent as a hard copy on page 5 and as an
excel spreadsheet):
Column A is a description ofthe item requested. These are all broken out into categories to help
you better determine priorities.
Column B is the amount we recommend to begin funding the various items listed in Column A.
This number can be changed to reflect the amount you feel should be funded.
Column C is here to help you rank your priorities.
Column D determines whether or not you would like to include this in the budget. If you click
on the cell, you will see a drop-down menu. You can choose "Yes" or "No". If you choose
"Yes", Column E will automatically fill in with the amount added to the budget. If you choose
"No", it will populate the cell with "0". Column E is locked. If you would like to change the
amount, please change it in column B.
When you go down to the bottom of the sheet, you can see the impact on the average homeowner
with a home valued at approximately $200,000. You can also see the percentage tax rate
increase.
The following is an explanation of some of the items listed:
Maintenance and Replaootttent of Equipment and Infrastructure:
1. Create an Equipment Replacement Fund: In 2011, the final payment in the f:Ullount of
$162,600 will be made for an Equipment Certificate Bond, The Council has expressed an
interest in setting up an Equipment Replacement fund that will allow us to do long-term
planning for equipment replacement expenditures.
2. Funds to Trail Maintenanoe: As discussed at the Parks and Recreation workshop, this
money would begin to fund a long-term trail maintenance plan.
3. Funds to Cover Park Redevelopment: Planning for replacement of existing park features
was. discussed at the Parks and Recreation workshop. A long-term plan for replacement
and repair of existing items such as shelters, courts, and playground equipment would be
created and funded with this money.
4. Funds to Cover Seal Coating: As discussed previously, this funding would be used to
continue the City's Annual Seal Coating Program.
5. Funds to Cover Street Rehabilitation: This funding, along with funding from other
sources, would be used to cover expenses associated with the City's long-term street
rehabilitation and reconstruction program.
6. Funds to Cover Computer Equipment: As discussed at the HRJIT workshop, this money
would be used to fund the long-term plan for replacement of the City's technology
equipment (computers, servers, switches, etc.)
7. Funds to cover Fire.EquipmentReplacement: The Equipment Replacement Fund will
include all vehicles including Fire trucks. Equipment would be replaced by the fire
department accordingto along-tel'1n. plan created based on the funding level. Some of
these items would include air tanks, turnout gear, etc.
8. Funds to eovel' Building Maintenance: This funding would be used to cover expenditures
related to City Buildings. A long-term plan would be created to address:lUture needs for
which no funding is currently set aside. Some of these expenditures include roof repair
and replacement, garage door replacement and repair, paint, flooring, etc,)
Additional Staffmg
1. Part Time Staff Finance: This funding would provide for a part-time staff person in the
Finance Department per direction received at the Finance workshop. The full amount is
requested since the reduction was already taken in the budget submitted to you).
2. Administrative Support Staff: As discussed at the Administration workshop, this funding
would provide for 1 full-time or 2 part-time administrative supportstaft' positions.
2
Deficit ReductionlFut\1re Op.eration:
Funds to Eliminate Pool and RRC Deficit: This funding would eliminate the current deficit in
these funds. The amount indicated wouIdelitninate the deficit in 2012.lhe option does exist to
reduce this deficit over time (example: $51,167 per year for 3 years, 01'$31,000 per year for S
years)
Other - Council Requests
This area is for you to add your own additional items that may not be listed by staff.
Other - funded by additional Fiscal Disparities
As mentioned in the spreadsheet, this has no impact on the levy. It will not change the bottom
line number. This is to determine what percent of the additional fiscal disparity revenue (if any)
you would like to add to distribute to Park Improvement and to the EDA.
General Fund SummarY
A summary ofthe General Fund Budget is provided for you on page 6. The summary shows a
breakdown of each of the department expenditures (towards the middle of the page) as well as
the total increase (See "Increasel(Decrease)" Column) which ties to the detail shown on pages 7-
9.
Revenues are shown at the top of the page. The increase in General Property taxes includes the
increase in Ad valorem taxes, Fire Levy, and Fiscal Disparities. If Council wishes to reduce any
revenue line item, it should be included in your spreadsheet (uhdel'nOther Council Requests) as
an increase in the tax levy. If Council chooses to increase any revenue line item, please include
it on the spreadsheet as a reduction to the levy. The $3,300 increase in "Miscellaneous" revenue
is for the Fanners Market. This has been moved from the EDA to the General Fund Community
Development Department. This revenue is used to offset some of the expenditures which were
also moved.
The $8,500 reduction in the 2012 Admin Adjustment column is for Tm'11out gear in the fire
department. If the Council does not approve funding the Fire Equipment replacement plan by at
least $8,500, we will not have the funds to purchase turnout gear.
The summary also shows revenue in excess of expenditures in the amount of $233,973. This is
the amount of additional Fiscal disparity revenue anticipated to be received in 2011. The amount
remains in the budget to be distributed to the EDA and Park Improvement fund (or any other
source the council chooses) in 2012. We will not know if or how much additional fiscal
disparity revenue we will receive for the 2012 budget until August 2011. Since we do not know
if we will receive this revenue, it has been entered in the budget as a place-holder and cannot be
used as General Fund operating revenue.
3
ReeentCost Saving Initiatives.. Budflet Reductions and 2011 EXDenses not E:merienced in
2012
The budget as shown includes the following reductions from last year:
Savine:s:
Debt Service Payment for Equipment 162,600
Certificate 2005D
Savings from Combined NewsletterJPark and 10,000
Rec Brochure
Savings from New Cleaning Contract 33,000
Two months of the Accountant's position 14,136
(Salary and Benefits)
Total 219.736
In 2011 Council reduced the budget by approximately $471,000. This included the following
positions:
Staff Reductions:
Administrative Services Director Position 108,820
Administrative AssistantPosition 72,900
Reorganization of the Maintenance Staff 86,382
Accountant Position 68,541
Total 336,643
4
Include in Total
2012 Budget? Additions
Create Equipment Replacement Fund $
Funds to Cover Trail Maintenance $
Funds to Cover Park Redevelopment $
Funds to Cover Seal Coating $
Funds to Cover Street Rehabilitation $
Funds to Cover Computer Equipment $
Funds to Cover Fire Equipment Replacement (air tanks, turnout
gear, etc.) $
Funds to Cover Building Maintenance (Roof, garage door,
flooring, paint) $
Costs for Additional Plans, Programs, and Personnel
Maintenance and Replacement of Equipment and Infrastructure:
$ 162,000
$ 25,000
$ 25,000
$ 350,000
$ 600,000
$ 20,000
$ 30,000
$ 20,000
No
No
No
No
No
No
No
No
Additional Staffing:
I ~
Part-time staff (Finance)
1 Full-time or 2 Part-time Admin. Staff
$
$
25,000
50,000
BI~~
Deficit Reduction/Future Operation:
IINo
I $
Funds to Eliminate Pool and RRC Deficit
1$ 155,000 I
Improvements to Buildings and Parks
Funds for Fuel Station and Salt Storage
I INo
l $
I $ 250,000 I I
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
No
No
No
No
No
No
No
No
$
$
$
$
$
$
$
$
Other - funded by additional Fiscal Disparities (This
has no impact on the Levy)
Funds Dedicated to Park Improvement
Funds to Eliminate EDA Deficit
IOther
50%
50%
0%
0%
~~
Total Additions to 2012 Budget:
Approximate Annual Tax Impact to Average ($199,800) Home:
Tax Rate Increase
0%
0%
0%
0%
255,563
31.23
2.98%
---'
CITY OF FARMINGTON, MN ANNUAL BUDGET
GENERAL FUND
FUND SUMMARY
.1......:,. ;': ..j. 2!)1112012
ENT 2lJ12RJ:Vi$Eb, f'~CeNT
.ADM BuDGET ' CHANGE
$
Rl:M$NUES
General Property TaXes 6,741,049 7,2$9,7~$ 7,(l84,647 7,084,647 7,~6,068 7,346,056 261,509 3,7%
UoenseB &~rmlts 376,163 454,7$9 431,466 431,46!l 431.46!l 431 ;455 0.0%
rlnes& Forfeitures 67,155 64,779 70,000 70,000 70,000 70,000 0.0%
Interest 266,556 165,124 200,000 200,000 200,000 200,000 0.0%
Intergovemmenlal 423,939 4fi6,622 405,590 405,590 405,590 405,690 0.0%
Charges for services 684,932 563,090 67&,676 576,676 578,676 678,678 0.0%
Miscellaneous 108663 5.5648 69 0 74000 2300 7 300 3300 4.8%
TOlal Operetlng Revenue 8 596 466 8 844 270 9 04 07 3.0011
Transfers In:
EOA 0.0%
Uquor Operations 63,996 66,300 70,007 70,007 70,007 0.0010
Sewer 63,996 66,300 70,007 70,007 70,007 0.0%
Storm Water 63,996 66,300 70,007 10,007 70,007 0,0%
Refuse 63,996 6'6,300 70,007 70,007 70,007 0,0%
Water 63 996 66300 70 007 0007 70 007 0.0%
Total Transfers In 319.960 331 0 350 035 50 036 350 03 0,0%
Tolal RevenuEl 8,916,446 9,381,290 9,189,305 9,194,305 9,454,114 9,464,114 264,a09 2,9%
EXPENDITURES
AdminIstration 1,033,871 1,091,660 932,197 932,197 957,965 957,965 25,166 2.11%
Human Resources 250,883 259,274 238,159 236,159 248,894 248,894 10,735 4,6%
Flnlance 638,794 478,490 42S,658 429,688 429,098 429,096 (662) .0.1%
Pollee 3,602,620 3,.738,693 3,866,994 3,1l68,994 3,960,199 3,960,199 \11,205 2.4%
Fire 617,.986 897,243 714,085 770,623 809,762 (8,500) 801,262 87,177 12.2%
Engineering 838,652 767.654 896,866 696.866 933,549 933,549 35,683 4,1%
MunIc1pal Services 847,656 846,'699 802M2 802,362 81.8,733 ~16,733 14,381 1.8%
Parka & recreation 884 00 931 7 886 481 886481 93 743 931 743 45 62 5.10/.
ToIal EXpenditures 9 009 620 8768792 8 825 330 650.0 9079441
Transfers out.:
Recreatlonoparatlng 176,000 140,700 140,700 140,700 140,700
Arena
Debtservtce 136 708
TOlallrans(ers oul 31070 140700 40 700
Tolal EXpendltut8$ 9320328 9143A65 9 200 003 9 220 141 76 676
Excess(OellcIency) of
Revenues and other llnancfng
sources over Expenditures 120,367 80,962 45,840 (5,698) 225,473 8,500 233,973 188,133 O;.Oo/~
Contingency (45,840)
Fund Balance beginning
ofyesr 2037513 21 880 2218842 2218 2 2218842 2 218 642 0.0%
Fund Balance end of year 2213 144 2444315 2452 615 18.8133 8.5%
6
1013
1010
1015
1014
1035
Budget Increases
Elections
Administration
Salary & Benefits
Dues
Training
Benefits
City Hall
Salary & Benefits
Equipment Supplies
Bunding Supplles
Cleaning Supplies
Other supplies
Prof svcs (Cleaning)
Municipal Services
Electricity
Natural Gas
Equipment Maintenance
Building Maintenance
Total City Hall
Communications
Community Development
Dues
Training
Program Expense
Total Com Dev
TOTAL ADMIN
1011 Human Resources
Salary & Benefits
Professional Services
Amount
Explanation
$
19,798 Election year
$
1,372
(900) Admin Svc Director
(510) Admin Svc Director
(38)
3A65
950
650
(1,000)
500
(24,445)
3,800
12,250
2,250
(10)
1,000
(590)
200
$
$
$
500 Chamber directory
490
3,300 Moved Farmers Market
4,290
$
23,660;
Information Technology
Capital
1021 Finance
Salaries and Benefits
Promote Existing Staff
Overtime
Dues
Training
Mlsc
Training
1022 Risk Management
Insurance Premiums
TOTALPINANOE
35,700
$ 35,700
(14,136)
6.139
(2.000)
25
700
(100)
$ (9,372)
$ 7,885
$
(1,487)
7
1030 Planning
GIS Fees
Dues
Training
Total Planning
Inadverdantly left out of
17,200 last year's budget
125
500
$ 17,825
1070 Engineering
Salaries & Benefits
6,833
Survey - Engineering Supplies
Total Engineering $
Concrete and
Aggregate Testing
Equipment as
4,300 discussed at workshop
11,133
1031 BuIlding Inspections
Salaries & Benefits
$ (4,688)
.1076 Natural Resources
Salaries & Benefits
Vehicle Maintenance
Training
92
800
200
Professional Services
Total Natural Resources $
Tree and Stump
5.000 removal, Tree planting
6,092
TOTAl.... eNGINEERING
$
30,362
8
1090 Park Maintenance
Salaries and Benefits
Equipment Supplies
Vehicle SuppJies
BUilding Supplies
Other supplies
Landscape Materials
Chemicals
Fuel
Uniforms
Prof svcs (Cleaning)
Cell phones
Electric
Dues and Subscriptions
Training
Mileage Reimbursement
Equipment Maintenance
Equipment Rental
Total Park Maintenance $
1094 Recreation Admin
Other supplies
Legal fees
Duesl Subscriptions
Training
Mileage Reimbursement
Total RecAdmin $
1095 Recreation
. Salaries & Benefits
Other supplies
Program Expense
Total Recreation $
TOTAL PARKS 84 RECREATiON
Total Budget Changes
IT Changes (Capital)
Total General Fund Budget Changes
11,614
(330)
2,550
600
4,253
(1 ,625)
2,950
2,000
(550)
11,389
(55)
1 ,400
(170)
(860)
600
2,200
3,600
39,568
900 Fuel
(500)
118
400
(600)
318
610
400
52
1,062
$
40,946
$
$
280,123
30,526
310,849
9
Levy Use
2010 Levy 2012 Levy Difference
General Fund $ 5,415,396 $ 5,628,080 $ 212,684 3.93%
MVC " State Levy 415,051 415,051 0.00%
Fire Relief Levy 131,175 180,000 48,825 37.22%
General Levy Total $ 5,961,622 $ 6.223,131 $ 261,509 4.39%
G.O. Improvement" 2003A $
G.O. Improvement" 2005A
G.O. Improvement" 2005B
G.O. Improvement - 2006A
Equipment Certificate. 20050
G.O. Improvement" 2008A
Wastewater Treatment" 1995
Public Project Revenue" 2010A
G.O. Capital Improvement. 200SC
G.O. Capital Improvement -2007A
Public Safety Revenue Bonds -2007 (DC(
Street Reconstl'Uction - 2010C
Ice Arena Equipment Certificate" 201 OD
Levies Allowed Above
Legislative Limits
249,918 $ 320,000
196,450
127,500
350,000
200,000
509,572
162,600
60,000
390,000
144,120
733,700
59,450
75,000
20,000
40,000
60,000
395,000
166,471
731,037
60,000
Total Levies Above the General Levy
151,956
$ 2,604,360 $ 2,598,414
$ 8,565,982 $ 8,821,545
Grand Total Levies
$ 70,082 28.04%
$ 196,450 100.00%
(72,500) -36.25%
(159,572) -31.31%
(162,600) -100.00%
40,000 100.00%
0.00%
5,000 1.28%
22,351 15.51 %
(2,663) -0.36%
550 0.93%
(75,000) -100.00%
131,956 659.78%
$ (5,946) -0.23%
$ 255,563 2.98%
10