HomeMy WebLinkAbout11.28.11 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 WORKSHOP
NOVEMBER 28, 2011
7:30 P.M. (Approximately)
1. CALL TO ORDER
2. APPROVE AGENDA
3. 2012 BUDGET
4. CITY ADMINISTRATOR UPDATE
5. 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 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 and City Council
FROM: David 1. McKnight, City Administrator
SUBJECT: Proposed Reductions to the 2012 Budget
DATE: November 28,2011
At your November 22,2011 2012 budget work session the City Council directed me to reduce
the 2012 draft budget by $175,000. After reviewing the budget I am proposing the following
reductions to the draft budget.
The reductions are based on a number of factors including review of the 2011 budget through
October of this year, eliminating new positions and promotions for 2012 and other factors while
trying to keep a realistic budget in place for city operations for 2012.
It should be noted that near the bottom of the list are various human resources reductions
reducing the 2012 budget to levels discussed with the City Council for all non-union and union
staff members. Any increases from these anticipated levels after this point would require
additional reductions to the budget.
City Council
Administration
Human Resources
Communications
1005-6403
Reduce Legal
10 10-611 0
1010-6220
1010-6403
1010-6455
1010-6460
1010-6470
1010-6485
1010-6505
1010-7420
1010-7420
Eliminate Administrator Increase
Reduce Equipment/Supplies
Reduce Legal
Reduce Legal Publications
Reduce Dues/Subscriptions
Reduce Training
Reduce Mileage
Reduce Equipment Repair
Reduce Contingency
Reduce Miscellaneous
Total
1011-6485
1011-6494
1011-7420
Reduce Mileage
Reduce Emp. Advertising
Reduce Miscellaneous
Total
1014-6470
Reduce Training
$3,000
$4,914
$500
$250
$500
$355
$650
$900
$2,420
$18,418
$2,000
$30,907
$300
$150
$1.050
$1,500
$50
City Hall 1015-6422 Reduce Electric $3,000
1015-6423 Reduce Natural Gas $3,422
10 15-6505 Reduce Equipment Repair $350
Total $6,722
Finance 1021-6110 Eliminate Proposed Position $25,000
1021-6110 Eliminate Proposed Promotion $6,565
1021-6485 Reduce Mileage $100
1021-6470 Reduce Training $200
1021-7420 Reduce Miscellaneous $140
Total $32,005
Risk Management 1022-6426 Reduce Insurance Premium $7,500
Planning 1030-6403 Reduce Legal $3,000
1030-6485 Reduce Mileage ru.
Total $3,025
Building Inspections 1031-6112 Reduce Overtime $575
1031-6250 Reduce Other Supplies $600
1031-6272 Reduce Fuel $200
1031-6470 Reduce Training $100
Total $1,475
Community Dev. 1035-6401 Reduce Professional Services $700
1035-6470 Reduce Training $290
1035-6485 Reduce Mileage $200
Total $1,190
Police Admin. 1050-6423 Reduce Natural Gas $6,000
1050-6460 Reduce Dues/Subscriptions $400
1050-6485 Reduce Mileage $100
Total $6,500
Police Patrol 1051-6112 Reduce Overtime $3,837
1051-6210 Reduce Other Supplies $500
1051-6272 Reduce Fuel $2,000
1051-6510 Reduce Vehicle Maintenance $1 ,650
Total $7,987
Police Investigations 1052-6450 Reduce Outside Printing $1,000
Fire 1060-6250 Reduce Other Supplies $1,000
1060-6412 Reduce Cell Phones $500
1060-6423 Reduce Natural Gas $2,200
1060-6485 Reduce Mileage $100
1060-6510 Reduce Building Maintenance $250
Total $4,050
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Rescue 1061-6470 Reduce Training $500
Engineering 1070-611 0 Eliminate Intern Position $14,294
1070-6403 Reduce Legal $1,500
1070-6510 Reduce Vehicle Maintenance $750
Total $16,544
Streets 1072-6250 Reduce Other Supplies $300
1072-6272 Reduce Fuel $300
1072-6422 Reduce Electric $1,000
1072-6253 Reduce Street Materials $2,000
1072-6510 Reduce Vehicle Maintenance $1,000
1072-6515 Reduce Building Maintenance $300
Total $4,900
Natural Resources 1076-6112 Reduce Overtime $345
1076-6250 Reduce Other Supplies $200
1076-6272 Reduce Fuel $500
1076-6401 Reduce Professional Services $1,000
1076-6510 Reduce Vehicle Maintenance $800
Total $2,845
Park Maintenance 1090-6112 Reduce Overtime $1,095
1090-6220 Reduce Equipment/Supplies $1,100
1090-6422 Reduce Electric $250
1090-6423 Reduce Natural Gas $1,000
1090-6505 Reduce Equipment Repair $1.000
Total $4,445
Parks Administration 1094-6112 Reduce Overtime $575
1094-6250 Reduce Other Supplies $200
1094-6470 Reduce Training $400
Total $1,175
Parks Programs 1095-6112 Reduce Overtime $573
IT Eliminate Wi Fi Cameras $12,707
Various Adjust Mgmt. Team Increase $7,677
Various HR Adjustments $16,723
TOTAL $175,000
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At the work session a larger potential reduction number in the $300,000+ range was also
discussed. If additional cuts were required to reach that number we would need to cut two plus
additional city staff positions depending on the actual number directed by Council. This is
determined looking at 2012 wages and benefits while also budgeting for unemployment costs the
city would be responsible for.
ADDITIONAL ISSUES
City staff needs to clarify one issue from your November 22, 2011 work session. You are
considering spending $170,000 of fiscal disparities dollars that was previously committed to
eliminate the EDA debt that currently exists. We need to clarify that the amount of fiscal
disparities dollars that was to be used on the EDA debt is $175,000. Any decision you make on
the use of these dollars should be consistent with the $175,000 amount previously discussed.
TAX LEVY STATUS
At the end of your November 22,2011 work session the City Council was looking at a number
of different options for the tax levy. Below are three options that were being discussed during
the meeting and their impact on the properties that were used on the tax levy impact spreadsheet
presented at the meeting.
Option One-Includes sealcoating, fire equipment, trail maintenance and building maintenance
and uses no fiscal disparities dollars to buy down the tax levy.
Tax Levy Increase 2.49%
Pro e 1m act
$114,500 Market Value and
$87,567 Taxable Value
Homestead Pro e
$176,100 Market Value and
$154,709 Taxable Value
Homestead Pro ert
$193,000 Market Value and
$173,130 Taxable Value
Homestead Pro e
$201,000 Taxable Value Non-
Homestead Pro e
$570,200 Taxable Value
Commercial Property
$746,900 Taxable Value
Commercial Pro ert
Tax Chan e
-$22.62
$57.89
5.80%
$72.82
6.51%
$252.77
19.48%
$574.48
15.91 %
$765.31
15.92%
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Option Two-Includes sealcoating, fire equipment, trail maintenance and building maintenance
and uses $376,258 in fiscal disparities dollars to buy down the tax levy.
Tax Levy Decrease -1.79%
Pro e 1m act
$114,500 Market Value and
$87,567 Taxable Value
Homestead Pro erty
$176,100 Market Value and
$154,709 Taxable Value
Homestead Property
$193,000 Market Value and
$173,130 Taxable Value
Homestead Property
$201,000 Taxable Value Non-
Homestead Pro e
$570,200 Taxable Value
Commercial Pro ert
$746,900 Taxable Value
Commercial Pro erty
Tax Chan e
-$46.27
$16.10
1.68%
$26.06
2.43%
$198.48
15.96%
$399.45
11.07%
$532.22
11.07%
Option Three-Includes sealcoating, fire equipment, trail maintenance and building maintenance
and uses $537,258 of fiscal disparities dollars to buy down the tax levy.
Tax Levy Decrease -3.78%
Pro e 1m act
$114,500 Market Value and
$87,567 Taxable Value
Homestead Prope
$176,100 Market Value and
$154,709 Taxable Value
Homestead Property
$193,000 Market Value and
$173,130 Taxable Value
Homestead Property
$201,000 Taxable Value Non-
Homestead Propert
$570,200 Taxable Value
Commercial Pro erty
$746,900 Taxable Value
Commercial Pro ert
Tax Chan e
-$57.22
-$3.24
-0.35%
$4.42
0.42%
$173.35
14.23%
$318.43
8.82%
$424.32
8.83%
These are three examples that you discussed at the meeting last week. They all incorporate the
$175,000 you asked staff to cut from the budget. You have the option of selecting any of these
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three, somewhere in between options one and three, or going beyond option three to a further
level of reductions.
FISCAL DISPARITIES DOLLARS
You are all aware of the availability of fiscal disparities dollars that the city has for 2012. At
your November 22,2012 work session you started to contemplate the use of these likely one
time dollars to buy down the tax levy increase for 2012. At the work session you discussed
using either/both $367,258 and $170,000 for this purpose. While I think the concern for the tax
increase is noble and very important, the use of one time dollars for a tax levy buy down is a
dangerous practice. Any use of these dollars for this purpose will result in the 2013 budget
process starting in a negative status. Any use of substantial fiscal disparities dollars will result in
organizational restructuring since most of our budget is made up of personnel costs. This means
that the potential reductions in 2013 to equal the use of fiscal disparities dollars in 2012 will
mean fewer employees and/or departments. This would begin almost immediately since
significant change will need to occur.
With this in mind I realize the final decision on the recommended reductions I place in front of
you and the use of fiscal disparities dollars is yours to make and city staff will carry out these
decisions.
If you have any questions on this information please let me know. Thank you for your time on
this important matter.
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