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HomeMy WebLinkAboutBM August 24, 1992 CITY OF ANDOVER \, .~ REQUEST FOR COUNCIL ACTION August 24, 1992 DATE AGENDA SECTION NO. ORIGINATING DEPARTMENT Finance ITEM NO. Budget Discussion Howard D. Koolick BY: Finance Director REQUEST The Andover City Council is requested to review, discuss and amend the 1993 budget for the General Fund, Lower Rum River Fund and the Drainage and Mapping Fund. please note that the budgets for the Debt Service Funds and the Water and Sewer Fund will be presented to the City Council at a future date. BACKGROUND / Based on the discussion at the August 11th budget meeting, the following changes were made to the General Fund: A. Mayor and Council Salaries were decreased by $500 each. Net decrease in budget of $2,803. , B. Fire Chief and Public Works Secretary removed from the budget and the fire de~artment secretary was reduced to one-quarter time from half time. Net decrease in budget of $37,155. C. New cars for the planning department and the building department were deleted and will not be purchased in 1993. Net decrease in budget of $37,600. D. Computer hardware and software for special assessment accounting and GIS were deleted and will not be purchased in 1993. Net decrease in budget of $17,000. COUNCIL ACTION MOTION BY TO SECOND BY ',- I ,~ E. The following fire station and fire department equipment was deleted and will not be purchased in 1993: Two file Cabinets Zodiac Life Boat One Data Terminal New Rescue Vehicle Net decrease in budget of $48,332. F. The following fire station and fire department equipment was deleted from the General Fund Budget and will need to be discussed as part of the 1993 capital purchases. Equipment to test One Data Terminal new recruits Training Site Construction Extension of Parking Meeting Room at Station #2 Lot at Station #2 Defibulator Barcode Inventory Equipment Net decrease in budget of $20,525 plus the unknown cost for the improvements to Station #2. G. Exhaust Fans, lighting and other improvements were deleted from the Public Works Building and the Equipment Building and will not be done in 1993. Net decrease in budget of $13,600. , , J H. The Motor Grader and Tree Spade were deleted from the budget and will not be purchased in 1993. Net decrease in budget of $189,000. I. The following Public Works equipment was deleted from the budget and will need to be discussed as part of the 1993 capital purchases: 4-Wheel Drive Tractor Asphalt Paving Machine 1-Ton Truck with Boom Toro 2-Ton Asphalt Roller Two 4 x 4 Pick-ups Tree Chipper Net decrease in budget of $178,300. J. Sealcoating and Cracksealing amount was decreased to $50,000. Net savings in budget of $150,000. K. Tax Levy was increased 5% from 1992 levy. Net increase in revenue budget of $110,299 including 13,466 of 1992 debt service levies which can be applied to the 1993 General Fund. L. Tax Levy was increased for the effect of sales tax. The budget shows $474,658 of taxable purchases. Net increase in revenue budget of $30,853. J j After making the changes listed above, the following summarizes the budget. Revenue General Property Taxes Business Licenses/Permits Non-Business Lic./Permits Intergovernmental Revenue Charges for Services Fines Special Assessments Miscellaneous Revenue Transfers $1,254,366 17,025 258,785 603,792 101,200 37,000 3,000 78,000 97,498 $2,450,666 Total Revenue Expenditures General Government $ Public Safety Public Works Park and Recreation Recycling Economic Development Unallocated Other Financing Uses Contingency 625,888 899,678 579,059 244,357 32,381 19,059 28,950 52,783 69,360 Total Expend. $2,551,515 AS you can see, the 1993 budget is still unbalanced by $100,849. The following are several options for balancing the budget. 1. Increase amount of State Aid Maintenance Money that is credited to General Fund. The budget currently includes $100,000. The City's 1993 allotment should be around $140,000. The unbudgeted portion was to be credited to the State Aid Project Fund and used to pay for the reconstruction of county Road 58 and the traffic signals at Round Lake and Bunker Lake Boulevards. The State Aid Project Fund, as of July 31, 1992, has a cash balance of $299,281. / '\ \._~ 2. Increase Building Permit Revenue.' The budget currently is based on 300 new homes. The 1992 budget is based on 303 homes and the budget has been met as of July 31, 1992. The protective inspection budget includes an additional $10,000 for a contract inspector without recognizing any additional revenue. This appears to be an inconsistency in logic. 3. Increase taxes. The budget as it currently stands results in the tax levy increasing $127,686 or 6.59%. Each additional one percent increase in the tax levy will generate $19,366. . , '- ) 4. Eliminate from the Fire Department budget the capital currently included which is either mandated by law or required to replace worn-out equipment. The budget includes the following capital items totaling $16,760. , i '~ Five breathing air bottles $ Breathing air quality tester to test air bottles per N.F.P.A. requirements $ Six turnout gear to replace existing sets $ Two Drager SCBA units $ Six ranger fire boots to replace existing boots $ Six Personal Alarm Safety Systems $ Six radios to replace old units $ 3,000 1,000 4,500 4,000 510 750 3,000 5. Eliminate some or all of the contingency amount. The contingency amount in the budget is currently $69,360. It is made up of the following: 4% Salary Increase for all Staff Salary Plan Increases PERA, FICA and Medicare on Above Unanticipated Items $34,560 5,000 4,800 25,000 6. Eliminate $3,000 transfer to establish severance fund. The severance fund is designed to accumulate, over a number of years, the funds necessary to pay severance benefits as employees leave the City. This method results in more level General Fund operations since the General Fund is not required to absorb a large severance amount in one year. . '\ '--~ 7. Eliminate the Fire Department Secretary. This new position was left in at the request of the Fire Chief. The position is one-quarter time at a total cost including benefits of $4,494. 8. Eliminate the contract inspector with the stipulation that if 1993 is a busy year, the building permit revenue will exceed budget to the extent that the position could be hired at that time. Total savings of $25,000. 9. Decrease the budget for park improvements. Currently the budget contains $28,475 for park improvements excluding Kelsey Park. The 1992 budget had approximately $11,000 excluding Kelsey Park. 10. Other revenue increases or expenditure decreases as City Council deems necessary. See Exhibits A and B for a detailed description of the changes in between the 1992 amended budget and the 1993 budget. '\ , ~ '\ ,) , \ '-J . '\ 'J CAPITAL EQUIPMENT REQUESTS The department requests contained a large number of equipment requests. The changes made by City Council listed above, combined with decisions from department heads, resulted in the following equipment being totally deleted from consideration as part of the 1993 budget: Planning and zoning Vehicle for inspection Fire Station Building Two file cabinets One data terminals to receive data from central communications Public Works Building New lighting Exhaust Fan Replace sidewalk & garage door approaches Fence around trash container Equipment Building Cement floor Finish walls and ceiling Automatic garage door opener Exhaust fan Fire Protection Zodiac 14' life boat, motor and trailer for ice and water rescues Rescue Rescue vehicle to replace current vehicle Protective Inspection 8-10 Blazer with radio for inspections Public Works Split between a number of departments New grader to replace old grader Tree spade Total Deleted Equipment $ 17,600 $ $ $ $ $ $ $ $ $ $ 1,400 2,750 3,500 1,500 1,500 2,000 2,000 1,500 600 1,000 $ 6,682 $ 33,000 $ 20,000 $180,000 $ 9,000 $284,032 The equipment listed below was deleted from the General Fund budget in order to balance this budget. The department heads are still interested in purchasing this equipment. The City Council will need to decide which, if any, will be purchased and how it will be funded. If Equipment Certificates are sold in mid-1993, the City will not need to levy for them until 1994. ~) These requests, listed by department, are as follows: ~J Administration Computer and special assessment software to help the City better manage and track special assessments Fire Station Building Equipment to test new recruits One data terminals to receive data from central communications Training site construction Extend parking lot at station *2 Finish meeting room at station *2 to make up for lost meeting room in station *3 Engineering GIS Information system software and any necessary hardware to run the software Fire Protection Bar code inventory software and readers to do automated inventory Rescue Defibulator Public Works Split between a number of departments Four-wheel drive tractor Two-ton asphalt roller Asphalt paving machine 4 x 4 Pickup truck One-ton truck with utility box and boom Tree chipper Hot Box for patching streets Replacement Toro Total Equipment Acquisition Requested $ 7,000 $ 3,000 $ 2,750 $ 5,000 $ ?? $ ?? $ 10,000 $ 5,000 $ 5,275 $ 30,000 $ 17,000 $ 30,000 $ 19,000 $ 35,000 $ 18,200 $ 32,000 $ 14,000 $233,225 This equipment can be funded by Equipment Certificates or the PIR Fund. The estimated cash balance in the PIR Fund as of December 31, 1992 is approximately $66,000. There will be no old certificates dropping off the tax levy in 1994. The City Council will need to discuss the how and if they wish to purchase any or all of the above equipment. , -, ) ~ ) LOWER RUM RIVER WATERSHED FUND The Lower Rum River Watershed Fund will be budgeted for the first time in 1993. This fund will be used to account for the tax revenue received from those individuals in the Lower Rum River taxing district and the expenditures incurred by the city for the watershed's activity. The proposed budget for 1993 is as follows: Revenue Current Property Taxes and State Aids Interest Earnings Total Revenue $15,697 1,000 $16,697 Expenditures Engineering Salaries and Benefits City's share of LRRWMO expenditures Contingency Total Expenditures $10,237 5,460 1,000 $16,697 ~~ The expenditures include 16 hours per month of the City Engineer's and the Assistant Engineer's time plus benefits. Per the Engineer, this is an accurate estimate of the time he and the Assistant Engineer spend on watershed business. The City's share of the LRRWMO expenditures was accounted for in the General Fund in prior years. The amount shown above is the City Engineer's estimate and is $460 higher than 1992's budget and $1,153 higher than the 1992 actual expenditure. The main source of revenue is the tax levy for the residents within the taxing district. The proposed tax levy is slightly more than three times the 1992 levy, which was $5,000. The large increase is caused by the allocation of the Engineer's and Assistant Engineer's time. previously all taxpayers, whether they were in the Lower Rum River Taxing District or not, paid for these costs. The effect of levying for the costs attributable to the watershed is to increase the City taxes for these residents benefitting from the watershed and decrease the taxes of the residents within the Coon Creek Watershed District who levies their own taxes. In 1992, a resident within the taxing district owning a $100,000 house paid $13.31 in property taxes to fund the Lower Rum River Watershed Organization. In 1993, assuming all factors are the same as 1992 except this levy, the same resident would pay $21.63, an $8.32 increase. , ~ ) ) DRAINAGE AND MAPPING FUND This fund is also being budgeted for the first time in 1993. This fund accounts for the revenues and expenditures relating to the updating of the City's maps and drainage plan. The following is the proposed 1993 budget: Revenue Interest Earnings Transfers from Other Funds Total Revenue $ 3,400 8,000 $ 11,400 Expenditures Engineering Charges Contribution to Coon Creek watershed Grant Total Expenditures $ 7,900 3,500 $ 11,400 The transfers from other funds represent the amounts assessed for mapping when new developments are done. The Engineering charges are an estimate of the amounts that TKDA will spend updating the City's maps. The last item represents the City's contribution to a grant the Coon Creek hopes to get that will produce data regarding the quality of water as well as maps of soil quality. ) ) J PROPERTY TAXES In 1992, the City levied property taxes as follows: General Operations Lower Rum River Taxing District 1991 Fire Station Bonds Certificates of Indebtedness: 1990 1989 1987 Total $1,423,203 5,000 415,407 28,766 27,466 36,807 $1,936,649 Each one percent increase in taxes levied for 1993 will generate an additional $19,366 of revenue. However, do not make the mistake of thinking that this percentage increase will be uniform across all properties. Due to changes is class rates, homestead and agricultural credit aid and fiscal disparities calculations, a property could see a higher or lower increase than the percentage of the increased total levy. '0 ,~ The following is a summary of the scheduled debt levies for 1993: 402,281 1991 Fire Station Bonds Certificates of Indebtedness: 1992 1990 1989 1977 Improv. Bonds 36,000 (Estimated) 25,677 (Assuming Sewer Fund continues to pay $37,360 for Sewer Jet) 26,022 24,449 (This levy will be cancelled since the City has adequate funds on hand) Adding in the General Levy and Lower Rum River Taxing District Levy as they are currently figured, results in a total 1993 tax levy of $2,064,335, or an increase of 6.59% over the 1992 levy. Please remember that the percentage increases relate to the tax levy and not individual properties. Changes in homestead and agricultural credit aid, fiscal disparities amounts and class rates will effect each property resulting in a different percentage. , " , I Exhibit A Page 1 of 4 , ) GENERAL FUND BUDGETED REVENUE 1992 1993 Revised Proposed Budget Budget Difference General Property Taxes $1,113,714 $1,254,366 $140,652 Business Licenses/Permits 20,325 17,025 (3,300) Non-Business Licenses/Permits 253,973 258,785 4,812 Intergovernmental Revenue 644,326 603,792 (40,534) Charges for Services 80,200 101,200 21,000 Fines 40,000 37,000 (3,000) Special Assessments 1,000 3,000 2,000 Miscellaneous Revenue 90,124 78,000 (12,124) Transfers 93,300 97,498 4,198 Total Revenue $2,336,962 $2,450,666 $113,704 ) General property Taxes Current Ad Valorem Taxes 1992 Budget $1,074,214 1993 Budget Difference $1,215,366 $141,152 The 1993 increase of $141,152 includes the following components: Five Percent Increase Increase for Sales Tax 1992 Debt Levy Freed Up for General Operations Lower Rum River District Levy $96,833 30,853 18,466 (5,000) Business Licenses/Permits Liquor-Intoxicating $4,100 $300 ($3,800) The 1992 budget included one on-sale license for Richard Reischel at the Downtown Center. The proposed restuarant was not built and hence, the 1993 budget does not include the license fee of $3,500. Non-Business Licenses/Permits Building Permits $193,863 $191,850 ($2,013) , '\ ,~ ./ The 1993 budget is based on 300 homes as estimated by the Building Official. The 1992 budget is based on approximately 303 homes. Exhibit A Page 2 of 4 . \ "~ Heating Permits 1992 Budget $11,000 1993 Budget $13,000 Difference $2,000 The fee for heating permits was increased from $15 to $25 in 1992. The 1993 budget is based on approximately the same number of permits as 1991 at the higher rate. Plumbing Permits $33,000 $35,000 $2,000 The fee for plumbing permits was increased for 1992 from four dollars per opening to seven dollars. The 1993 amount is based on the 1992 actual through June slightly deflated in case building in 1993 is not as prolific as 1992. Burning Permits $600 $1,800 $1,200 The fee for burning permits was increased during 1992 from three dollars to ten dollars. Since the change was made after the budget was adopted, the 1993 budget is significantly higher than the 1992 budget. ~_) Intergovernmental Revenue Comm. Dev. Block Grant $47,723 $29,783 ($17,940) The 1992 budget included the major share of the senior center remodeling ($20,000). This project will be complete before 1993 resulting in the City being eligible for a lesser amount of grant funds. other Grants $84,352 $58,012 ($26,340) The 1992 budget included $20,000 from the LAWCON grant for Kelsey Park. The terms of the grant require these monies to be accounted for in a separate fund. Therefore, a LAWCON grant fund has been created and the revenue and associated expenditures have been budgeted in that fund. The estimated recycling funding is less than the 1992 budget due to decreasing needs as the recycling program is now in place. '\ \, /' ,J , " o , , ,--) Exhibit A Page 3 of 4 1992 Budget 1993 Budget Difference Charges for Services Street Light User Fees $55,000 $72,000 $17,000 The rapid growth during 1992 has resulted in a large number of new street light accounts. The year-to-date for 1992 is projecting approximately $64,000 with several large subdivisions not yet being billed. Assessment Searches $4,800 $6,500 $1,700 The fee was increased for 1992 from five dollars to twelve dollars. The 1993 budget includes a modest increase over the 1992 budget with a slight decrease over the projected 1992 actual. Fines Court Fines $40,000 $37,000 ($3,000) The 1993 budget is based on the collections for the first five months of 1992, which have been averaging $3,027. Historically, collections increase slightly in fall. Special Assessments Special Assessments $1,000 $3,000 $2,000 The City certifies delinquent street light charges to the County for collection. When the 1992 budget was prepared, the amount of certified charges was not known. The 1993 budget includes approximately half of the 1991 certified amount since it is expected that the amount certified in 1992 (collected in 1993) will be smaller than previous years. :) / ... ......,j , \ ,~ Exhibit A Page 4 of 4 1992 Budget 1993 Budget Difference Miscellaneous Revenue Interest Earnings $54,600 $44,000 ($10,600) The 1993 budget is presented lower due to the continued drop in interest rates combined with a cash flow that almost reaches zero prior to tax collections. Refunds/Reimbursements $26,224 $31,000 $4,776 The 1993 budget is a conservative estimate based on the actual amounts from 1989 through 1991. The largest refund received each year is the insurance premium refund from the League of Minnesota Cities Insurance Trust. This refund has been in the range of $16,000 to $24,000 in each of the last three years. Sale of Equipment $6,200 $-0- ($6,200) The 1992 budget was revised to include the sale of fire department breathing apparatus. The 1993 budget does not include the planned sale of any equipment. Transfers Transfer from Admin Trust $63,300 $67,498 $4,198 The large number of new plats in 1992 results in a slight increase in this transfer. Exhibit B Page 1 of 10 GENERAL FUND , BUDGETED EXPENDITURES '-~ 1992 Revised 1993 Budget Budget Difference City Council $ 34,297 $ 32,149 $ (2,148) Newsletter 4,771 5,292 521 Mayor 4,521 3,984 (537) Elections 13,900 -0- (13,900) Adminstration 126,872 130,567 3,695 Financial Administration 96,717 103,465 6,748 Auditing 10,000 10,750 750 Assessing 38,289 47,192 8,903 Attorney 50,800 52,560 1,760 Planning and Zoning 54,166 54,516 350 Data Processing 21,248 19,537 (1,711 ) City Hall Building 45,375 43,902 (1,473) Fire Station Building 31,564 33,086 1,522 Public Works Building 17,388 19,805 2,417 Senior Citizen Center 8,075 8,982 907 Equipment Building 2,975 2,980 5 Engineering 65,847 57,121 (8,726) Police Protection 411,737 425,004 13,267 ~) Fire Protection 267,435 267,247 (188 ) Rescue Service 32,280 35,183 2,803 Protective Inspection 145,703 159,029 13,326 Civil Defense 2,647 2,960 313 Animal Control 10,235 10,255 20 Streets and Highways 192,533 232,430 39,897 Snow and Ice Removal 119,112 164,406 45,294 Storm Sewers 22,688 23,474 786 Street Lighting 14,450 18,750 4,300 Street Signs 31,508 37,967 6,459 Traffic Signals 10,680 9,840 (840) Street Lights-Billed 42,264 65,174 22,910 Park and Recreation 233,903 244,357 10,454 Trees and Weed Control 9,715 27,018 17,303 Recycling 37,398 32,381 (5,017) Economic Development 18,307 19,059 752 Unallocated 24,950 28,950 4,000 Other Financing Uses 52,723 52,783 60 Contingency 29,789 69,360 39,571 $2,336,962 $2,551,515 $908,868 \ '-- ~ , , ,~ ~J , " 'o..J Exhibit B Page 2 of 10 City Council 1992 Budget $34,203 ($2,148) 1993 Budget $32,149 Difference Council salaries decreased by $500 per Councilmember. Newsletter $4,771 $5,292 $521 Salaries and Benefits $701 $1,222 $521 Increase based on longer time needed to put together newsletter since the change to Express Advertising. Previously, we typed and the school district did typesetting and copying. Now the City must make the newsletter copy ready before it is printed. Amount of increase is based on 1991 actual and 1992 year-to-date. Mayor $4,521 ($537) $3,984 Mayor's salary decreased $500. Elections $13,900 $-0- ($13,900) No elections scheduled for 1993 resulting in no budget being requested. Adminstration $126,872 $130,567 $3,695 Salaries and Benefits $100,687 $103,857 $3,170 In 1992, ten percent of the City Clerk's salary was allocated to elections to cover her time spent on this function. with no elections scheduled in 1993, the ten percent was added back to administration. other Charges $26,185 $26,710 $525 The budget for 1993 includes a 5% increase in insurance premiums ($935). This increase is offset by a $1,000 decrease in the budget for dues and registrations. The remainder of the increase is made up of a number of small increases and decreases, all of which are under $200. . \ ,~ '\ '-J '\ '-~ Exhibit B Page 3 of 10 Financial Administration 1992 Budget $96,717 $6,748 1993 Budget $103,465 Difference Salaries and Benefits $ 90,989 $96,475 $5,485 The 1992 budget includes a miscalculation of the city's contribution for health insurance. The 1993 budget for this item is properly calculated. Office Supplies $1,200 $2,700 $1,500 The 1993 budget includes ordering cash receipts, regular and payroll checks. The 1992 budget did not include these items since it has been a couple years since these supplies were needed. The estimated cost of these special forms is $1,300. Auditing $10,000 $10,750 $750 contract for 1993 includes a $500 increase. In addition, expenses for photocopying and have been running higher than budget in 1991 and 1992. Assessing $38,269 $47,192 $8,903 The contract with the assessor's office includes a 17.6% increase in the rate per parcel. In addition, the number of parcels is up resulting in an overall increase of $20.86% Attorney $50,800 $52,560 $1,760 The 1993 budget increases the amount budgeted for prosecutions and meetings by by $1,000 and $600 respectively. These increases are based on the 1991 actual expenditures and the 1992 year-to-date expenditures. Planning and Zoning $54,166 $54,516 $350 No major changes from prior year. \ ~ \ 'J \ ~) Exhibit B Page 4 of 10 Data Processing 1992 Budget $21,248 ($1,711) 1993 Budget $19,537 Difference The 1992 budget included $998 for the final three payments for the rental of one copier which the city subsequently purchased. Therefore, the 1993 budget is decreased by $998 since no rental payments need to be made. In addition, the budget for supplies is decreased slightly based on previous years activity. City Hall Building $45,375 $43,902 ($1,473) The majority of the decrease is from a drop in salaries and benefits due to an estimated decrease in the time spent by public works personnel maintaining City Hall. Additional minor increases are offset by a decrease in the schedule contract for deed payments due to the Laputas. Fire Station Building $31,564 $33,086 $1,522 other Charges $25,680 $27,160 $1,480 The 1993 budget includes an additional $1,100 for telephone service relating to the installation of dedicated lines for data terminals. In addition, the 1993 budget includes $400 for water and sewer service at station #1. The 1992 budget did not include this item. Public Works Building $17,388 $19,805 $2,417 SUPhli~s $3,000 T e lncrease is composed of three each of which was increased based expenditures. $3,875 $875 different line items, on past years actual other Charges $13,243 $14,403 $1,160 The increase is composed of a variety of items that were increased based on past expenditures. Senior Citizen Center $8,075 $8,982 $907 The major change is the budgeted increase in insurance ($501). The remainder is small increases relating to the imposition of sales tax by the state. Equipment Building $2,975 $2,980 $5 No major changes from prior year. Exhibit B Page 5 of 10 . \ '-) 1992 Budget 1993 Budget Difference Engineering $65,847 $57,121 ($8,726) Salaries and Benefits $57,484 $48,191 ($9,293) The decrease in the 1993 budget is due to the reallocation of 16 hours per month of the Engineer's and Assistant Engineer's time to the Lower Rum River Fund to account for the time they spend working on projects for the watershed district. Police Protection $411,737 $425,004 $13,367 The vast majority of the increase ($13,190) is from the 3% increase in the contract with Anoka County. Fire Protection $267,435 $267,247 ($188) , \ '. ) '-~ Salaries and Benefits $172,648 $168,790 ($3,858) The decrease is a combination of the request to add a quarter-time secretary $4,174 plus benefits less $9,475 in the estimate of point pay for 1993. Supplies and Other Charges A decrease of $11,500 for offset by minor increases estimates to prior year's $87,363 $81,197 ($6,166) vehicle repairs is partially caused by sales tax and adjusting actually activity. Capital Outlay $7,424 $17,260 The 1993 requests for equipment are as follows: $9,836 r '0 \ \. ) Five breathing air bottles to be used as spares $3,000 Breathing air quality test unit so the City can test our own equipment $1,000 Six sets of turnout gear to replace existing gear $4,500 Two SCBA units to increase the total number of units to seventeen $4,000 Six ranger fire boots to replace worn out boots $510 Six personal alarm safety systems to meet requirement of having one for each entry person $750 Six Motorola radios to replace 16 year old units $3,000 .) .' ) ,"'---', , " \. ) Exhibit B Page 6 of 10 Rescue Service 1992 Budget $32,280 $2,803 1993 Budget $35,183 Difference Salaries and Benefits $16,300 $20,454 $4,154 The increase in salaries for the volunteers is based on the actual amounts paid in 1990, 1991 and the first half of 1992 and the associated benefits. Protective Inspection $145,703 $159,029 $13,326 Other Charges $18,631 $29,675 $11,044 The 1993 budget includes a contract inspector budgeted at $25,000. The 1992 budget was $15,000. The building department requested either the contractor or the hiring of an additional inspector, with the costs of each being equal. Capital Outlay $-0- $600 The 1993 requests for equipment are as follows: Office furniture for the new inspector $600 $600 Civil Defense $2,647 $2,960 $313 No major changes from 1992. Animal Control $10,235 $10,255 $20 The 1993 budget includes $305 for the biennial dog clinic the City has. This amount is offset by a decrease in the budget for the animal control contract based on previous years costs. Exhibit B Page 7 of 10 ') 1992 Budget 1993 Budget Difference Streets and Highways $192,533 $562,235 $369,702 Salaries and Benefits $109,643 $92,332 ($17,311) The net decrease is a combination of the reallocation of Ray Sowada's time from this department to Trees and Weed Control, the reallocation of LuAnn Darveaux's time to a number of public works departments. Supplies and Other Charges $65,390 $80,098 $14,708 A number of items have been increased to more closely match the 1993 budget with 1991 actual amounts and an estimation of 1992 actual amounts based year-to-date information. The following are the larger line item increases: :- ) Operating Supplies $2,500 $4,260 $1,760 Repair/Maint Supplies Vehicle $6,000 $10,000 $4,000 Repair/Maint Labor Streets $2,000 $4,000 $2,000 Repair/Maint Labor Vehicle $6,000 $8,000 $2,000 Rentals-Streetsweep. $20,800 $23,500 $2,700 Capital Outlaa $17,500 $60,000 $42,500 The 1993 bu get includes $50,000 for cracksealing and sealcoating. The 1992 budget included $8,500 for cracksealing. The City Council in 1992 decided, due to budget constraints to assess seal coating when it was requested. The Public Works Superintendent and City Administrator have put this back into the budget in order for the City Council to reconsider this decision. Snow and Ice Removal $119,112 $164,406 $45,294 Salaries and Benefits $65,063 $83,651 $18,588 The increase in the 1993 budget results from allocating 20% of LuAnn Darveaux's time to this department plus the addition of two new public works employees each of which has 20% of their time allocated to this department. Supplies and Other Charges $54,049 $80,755 $26,706 A number of items have been increased to more closely match the 1993 budget with 1991 actual amounts and an estimation of 1992 actual amounts based year-to-date information. The following are the larger line item increases: Repair/Maint Supplies Vehicle $10,000 $15,500 $5,500 "- Repair/Maint Labor , I streets (Sand-Salt) $22,250 $37,300 $15,050 --_/ Repair/Maint Labor Vehicle $6,000 $10,000 $4,000 ,) ~J , , ) / Exhibit B Page 8 of 10 Storm Sewers 1992 Budget $22,688 $786 1993 Budget $23,474 Difference Salaries and Benefits The increase in the 1993 of LuAnn Darveaux's time $17,232 $17,458 $288 budget results from allocating 5% to this department. Street Lighting $14,450 $18,750 $4,300 The increase in this department results from the addition of anticipated addition of 13 new street lights in 1992 plus 10 new lights in 1993. Also causing the increase is the imposition of sales tax on electric bills from AEC. In addition, the budget includes $2,000 for installation costs associated with street lights installed at intersections involving County roads. Street Signs $31,508 $37,967 $6,459 Salaries and Benefits The increase in the 1993 of LuAnn Darveaux's time $17,924 $21,563 $3,639 budget results from allocating 13% to this department. Supplies and Other Charges $13,584 $16,404 $2,820 The majority of the increase ($2,650) relates the purchase of signs to replace wornout and damaged signs. The increase is based on past years trends plus the increasing numbers of signs within the City. Traffic Signals $10,680 $9,840 ($840) No major changes within this department. Street Lights-Billed $42,264 $65,174 $22,910 The increase in this department relates to the new street lights installed in the new developments being constructed in 1992 and 1993. Revenue from street light billings has been increased accordingly to account for these new customers. Park and Recreation $233,903 $244,357 $10,454 Salaries and Benefits $79,411 $95,744 $16,333 The increase in the 1993 budget results from allocating 4% of LuAnn Darveaux's time to this department plus a new public works employee with 80% of their time allocated to this department. \ " j ) , '\ ) " _/ Exhibit B Page 9 of 10 1992 Budget 1993 Budget Difference Supplies and Other Charges $42,783 $50,915 $8,132 A number of items have been increased to more closely match the 1993 budget with 1991 actual amounts and an estimation of 1992 actual amounts based year-to-date information. The following are the larger line item increases: Repair/Maint Supplies Vehicle $6,000 Repair/Maint Labor Vehicle $1,500 $8,000 $4,000 $2,000 $2,500 Capital outlaB $50,673 $28,475 ($22,198) The amount udgeted for park improvements has decreased $22,198. Of this decrease, $20,000 is caused by the requirement to budget the Kelsey Park grant in a separate fund. Therefore, the budgeted $20,000 alohg with the grant proceeds and expenditures are shown in the LAWCON Grant Fund. Miscellaneous $61,036 69,223 $8,187 The increase in this are relates to the 6.2% increase in the community and summer school program run by Anoka- Hennepin school district ($3,534) and an increase in the budget for assessments on City park property based on actual amounts paid in previous years. Trees and Weed Control $9,715 $27,018 $17,303 Salaries and Benefits $4,785 $11,546 $6,761 The increase in the 1993 budget results from allocating 18% of Ray Sowada's time to this department. Other Charges This increase relates contract for services $4,930 to the addi tion required by the $15,472 $10,542 of $10,000 to tree commission. Recycling $37,398 $32,381 The major changes in this department are caused by estimating the 1993 budget based on previous years ($5,017) better activity. Economic Development $18,307 $19,059 $752 No major changes in this department. " , ) ') ,~-~/ / " ,~ / Exhibit B Page 10 of 10 1992 Budget 1993 Budget Difference Unallocated $24,950 $28,950 $4,000 The increase relates to estimating our 1993 workers compensation premiums. The 1991 premium was $23,828 while the 1992 estimate is $26,804. other Financing Uses $52,723 $52,783 $60 This Department accounts for Transfers to Other Funds, CDBG expenditures and the expenditure for the city's contribution to the Lower Rum River Watershed District. Each of these items is discussed below: Transfers to other funds did not have a 1992 budget. The 1993 budget of $23,000 is composed of a $20,000 to the LAWCON Grant Fund to finance the City's share of the project. The remaining $3,000 is to open the Severance Fund to begin funding the City's severance liability. CDBG expenditures are budgeted to be down $17,940 since the 1992 budget included remodeling the Senior Center at a cost of $20,000. The City's share to the Lower Rum River Watershed District has been budgeted in a separate fund for 1993, resulting in a $5,000 decrease from the 1992 budget. Contingency $29,789 $69,360 $39,571 The contingency line in 1992 totaled $56,072 before reallocations were made for salary increases. The 1993 contingency is composed of the following: Anticipated salary increases Increases caused by implementation of a salary plan Benefits on the above Unanticipated events $35,560 5,000 4,500 25,000