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Home My WebLink AboutSP August 26, 2002 \ . 1685 CROSSTOWN BOULEVARD N.W... ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CLANDOVERMN.US SPECIAL CITY COUNCIL MEETING 2003 BUDGET WORKSHOP Conference Room A August 26,2002 -7:00 p.m. AGENDA 1. Call to Order 2. Approve Agenda : 3. 2003 Proposed Budget Presentation (Multi-Media) 4. Fiscal Analysis of Proposed 2003 Tax Levy 5. 2003 Proposed Budget Message Highlights 6. Council Review and Discussion 7. Other Business 8. AdjoUrn ., GJ - - m ro ~ ~ M ~ ,.... m ("") 'I:t ,.... ~S ~ 0 00 M 00 ("") N lo~~~ ri ~ ri ri ci ~ ENmm~ ~ ~ g ~ ~ ~ ~iG'I-g.> ,..: - - cO N ai a an c.. 0 or- <r- or- ~ ~ ~ ~ [l. e e "tIMCl) ~ J!!O_l)Q) <oQ" fl:IO.D":'::::::I lO N .s ~ ~ ; C; m- g -..::; (Q CU ~ > ..... N .'!! Q. .... ......- >. - ~ .. [l. ~ 0 CIl ::l Lt><OLON.....M C'Ili N ..... 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("II N ____-~~~EI) .g c. l3 l3 l3 iii '" ~~~~~~ c m _~ 0 _~ ~ ~ <l: U ~ ~ ~ I- I- MINNESOTA' REVENUE J Payable 2003 Overall Levy Limitation Notice August 16, 2002 ANDOVER CITY OF CLERK-TREASURER CITY HALL 1685 CROSSTOWN BLVD NW ANDOVER, MN 55304 The payable 2003 overall levy limitation for your city is: S 5,256,831 The following is a listing of the factors used in detennining your city's payable 2003 overall1evy limitation. See the enclosed letter for an explanation of these factors and for additional infonnation concerning your city's overall levy limitation. 1. Adjusted Levy Limit Base for Payable 2002: $ 5,118,470 2. City Share of Payable 2001 Tree Growth Tax Receipts: S; 3. . City share of Payable 2001 Manufactured Home HACA: $ 95 4. Beginning Levy Limit Base for Payable 2003 (I + 2 + 3): $ 5,118,565 5. Implicit Price Deflator Adjustment (March 2002/March 2001): 1.007618 J 6. Household Growth Adjustment a. 2000 Households: 8,107 b. 2001 Households: 8,439 c. Ratio of2000 to 2001 Households (b/a, but not less than 1.000): 1.040952 7. Adjustment for Pay' 2002 Market Value of New CIl Construction a. Payable 2001 Total Taxable Market Value: $ 1,331,052,500 b. Payable 2002 Market Value of New C/I Construction: $ 3,917,927 c. 50% of Line b (7b x 0.5): $ 1,958,964 d. Adjustment (1 + Ratio one to 7a): 1.001472 8. Adjusted Levy Limit Base for Payable 2003 ( 4 x 5 x 6c x 7d): $ 5,376,673 9. New Net Tax Capacity-Based Referendum Levies: $ 10. 2003 Property Tax Aids a. 2003 Local Government Aid (LGA): $ 119,842 b. 2003 Estimated Taconite Aids: $ c. 2003 Existing Low Income Housing Aid: $ d. 2003 New Construction Low Income Housing Aid: $ e. 2003 Transit Property Tax Replacement Aid: $ f. Total (a + b + C + d + e): $ 119,842 II. Adjustment for 2003 Local Tax Rate Excess Tax Increment Taxes: $ 0 12. Payable 2003 Overall Levy Limitation (8 + 9 - 1 Of - 11): $ 5,256,831 Property Ta:x Division Tel.' 651-296-3394 Mail Station 3340 Fax: 651-297-2166 St. Paul, MN 55146-3340 ITY: Call 711 for Minnesota Relay A n equal opportunity employer CITY OF ANDOVER, MINNESOTA 8/23/2002 Proposed Property Tax Levy Analysis 2003 Portion Portion Levy Outside Levy Within Levy Amount Limits Limits General Fund Levy $ 4,505,780 $ 190,310 $ 4,315,470 Debt Service Funds Levy 1999 G.O. Equip Cert. 301,980 301,980 - 2001 G.O. Equip Cert. 274,404 274,404 - 2003 G.O. Equip Cert. 200,000 200,000 - Total Debt Levy 776,384 776,384 - Other Levies Fire Relief 43,750 - 43,750 Capital Projects Capital EquipmenUProjects 203,200 - 203,200 Parks Projects 50,800 - 50,800 Road & Bridge 619,611 - 619,611 Lower Rum River Watershed 24,000 - 24,000 Total Other Levies 941,361 - 941,361 Gross City Levy $ 6,223,525 $ 966,694 $ 5,256,831 Less 2003 Levy Limit 5,256,831 Unused 2003 Levy Limit $ - City of Andover, Minnesota 8/23/2002 Property Tax Levy Certified Certified Certified Proposed 2000 2001 2002 2003 General Fund Levy $ 3,819,433 $ 4,476,451 $ 4,157,891 $ 4,505,780 Debt Service Funds Levy 1991 Fire Bond 299,363 261,450 - - 1999 G.O. Equip Cert. 270,000 274,877 291,703 301,980 2001 G.O. Equip Cert. - - 259,978 274,404 2003 G.O. Equip Cert. - - - 200,000 Total Debt Service" 569,363 536,327 551,681 776,384 Other Levies Fire Levy - - 43,750 43,750 Capital Projects Levy Capital Equipment/Project - - 200,000 203,200 Parks Projects - - 50,000 50,800 Road & Bridge - - 597,396 619,611 Lower Rum River Watershed 21 ,430 25,759 25,759 24,000 Gross City Levy 4,410,226 5,038,537 5,626,477 6,223,525 Less HACA 490,143 489,896 - - Net City Levy 3,920,083 4,548,641 5,626,477 6,223,525 Less Fiscal Disparities Distribution 598,176 674,693 856,322 831,586 Local Tax Rate Levy $ 3,321,907 $ 3,873,948 $ 4,770,155 $ 5,391,939 Adjusted Tax Capacity Value"" $ 14,722,272 $17,198,249 $ 14,337,532 $ 16,513,844 (1) Tax Capacity Rate""" 22.564% 22.525% 33.270% 32.651% Tax Capacity Rate WIO LRRWSD 22.452% 22.396% 33.125% Tax Capacity Rate With LRRWSD 22.735% 22.736% 33.509% " 2003 Debt Service Levy is based on City's Debt Management Study "" Adjusted Value determined by adjusting for Fiscal Disparities and Tax Increment estimates. """ Blended rate due to the City of Andover levying for Lower Rum River Watershed District (1) Adjusted Tax Capacity Value is subject to change. 33.270% 1.016 (a) 33.803% (b) $ 16,513,844 (a"b) $ 5,582,130 Dill $ 190,191 City of Andover 8/23/2002 General Fund 2003 Budget Gap Analysis Adopted Proposed 2002 2003 Revenue Estimates $ 6,987,351 $ 7,321,193 Base Budget: Adjusted Base Budget 6,977,261 6,834,961 * Available for Adjustments $ 10,090 486,232 Adjustments to Base Budget Personal Services (including COLA & Market Rate Adjustments) 277,525 Services & Supplies 123,207 Capital Outlay 85,500 Total Adjustments to Base Budget 486,232 Budget Gap $ - Use of Fund Balance - General Fund Capital Outlay $ 85,500 Xfer from Capital Equipment Reserve 25,000 Use of Fund Balance - General Fund 170,343 $ 280,843 * 2002 Base Budget less any capital outlay. Capital Outlay is new each year: no base or carryforward is considered. 2002 capital outlay was $142,300. City of Andover 8/23/2002 General Fund 2003 Fund Balance Analysis 34.95% December 31, 2001 $ 2,773,096 2002 Estimated Fund Balance Increase 192,454 Projected December 31,2002 2,965,550 Less: Employee Benefit Program Designation (50,000) Less: Legal Defense Designation (100,000) Less: Working Cash Flow Designation (2,558,757) Estimated Balance Available for Adjustments: $ 256,793 2002 Working Cash Flow Designation Calculation: 2003 Requested Expenditures: $ 7,321,193 % of 2003 General Fund Expenditures 34.95% $ 2,558,757 8/23/2002 CITY OF ANDOVER General Fund Revenue & Expense Summary Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 REVENUES Property Taxes $ 3,571,186 $ 3,982,173 $ 4,271,900 $ 4,248,730 $ 4,585,830 7.35% License and Permits 623,662 720,711 910,640 654,935 661,825 -27.32% Intergovernmental Revenues 969,318 1,095,726 632,299 649,349 525,854 -16.83% Charges for Current Services 900,236 722,689 442,590 715,460 724,705 63.74% Fines and Forfeits 82,443 73,699 78,000 78,000 83,000 6.41% Interest Income 104,657 128,702 185,000 100,000 100,000 -45.95% Miscellaneous Revenue 201,420 201,223 224,500 207,636 219,136 -2.39% Transfers 85,121 90,000 242,422 217,437 420,843 73.60% 4.78% EXPENDITURES General Government 1,839,658 1,931,931 2,380,808 2,193,766 2,478,216 4.09% , Public Safety 1,968,766 2,087,924 2,380,547 2,362,021 2,558,813 7.49% / Public Works 2,320,804 2,112,723 2,169,817 2,083,913 2,196,608 1.23% Other 503,378 145,068 46,089 39,393 87,556 89.97% 4.93% [=~~~E~~(6~~~E~UD~~':~:$ "(94,563)=$~'""'737:278=:r~~~10,09(r::~$~~~'192)154~=~$~ . ,." .";;] -100.00% CITY OF ANDOVER Expenditure Budget Summary Totals - By Department Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 GENERAL GOVERNMENT Mayor and Council $ 71,640 $ 74,555 $ 67,748 $ 68,823 $ 94,069 38.85% Newsletter 18,723 24,668 28,350 37,500 40,700 43.56% City Clerk 1 02,407 109,814 126,606 127,941 131,567 3.92% Elections 25,807 11,632 43,813 43,813 11,773 -73.13% Administration 86,399 94,633 120,301 118,151 130,223 8.25% Human Resources - 23,809 161,379 5,878 195,353 0.00% Financial Administration 225,345 237,564 263,712 263,212 279,174 5.86% Assessing 83,784 92,037 102,000 101,200 110,000 7.84% Attorney 116,966 127,403 133,200 133,200 137,196 3.00% Planning and Zoning 215,039 216,119 258,584 254,679 305,394 18.10% Information Systems 98,105 125,762 131,414 131,081 148,476 12.98% Facilities Management 433,229 448,658 566,378 560,238 525,562 -7.21% Engineering 362,214 345,277 377,323 348,050 368,729 -2.28% r"'"''''~'''r'''''''''''''''''~7'''''''''''''='''>XT'''''''''f1''C-<~''C'7'''''7 1,1l39,eSll ''W''''wo 2,4711,2161 iTotal General Government 1,931,93' 2,3110,11011 2,193,766 4.09% ""= "'''"''''<,^''''*;;;"","'''''.<<,,;;.,;;,:;;';';'~"''',;;;,,;,,;;,~,~=;;i~," ,""""0'" "'''''',," f>"<' w._ow PUBLIC SAFETY Police Protection 1,062,430 1,103,016 1,203,496 1,201,896 1,326,204 10.20% Fire Protection 550,686 595,795 748,276 740,514 777,247 3.87% Protective Inspection 329,534 370,246 398,437 395,637 432,498 8.55% Civil Defense 13,342 10,513 16,558 16,294 13,934 -15.85% Animal Control 12,774 8,354 13,780 7,680 8,930 -35.20% :>""""~""'='''''^'''''''=''"o/,'''''/Y'=''-'''''',~,''''"^'> o",.=p"=",~",,,,,,,,,,,., WM' M"'''''''''' '",,,',,,", '.'.'.''''= 2,55M1.31 k:;e!:L~~~M:..~~r~~",,","",~"~M'" . ',9611,766 2,0117,924 2,3110,547 2,362,021 7.49% "'''~^' ^~,""'" """"'" PUBLIC WORKS Streets and Highways 870,349 650,544 393,932 366,882 376,324 -4.47% Snow and Ice Removal 442,583 363,172 533,473 510,873 547,995 2.72% Storm Sewer 64,403 95,612 126,299 126,228 120,379 -4.69% Street Lighting 23,961 33,479 36,400 29,781 30,400 -16.48% Street Signs 111,837 95,742 118,161 123,711 131,626 11.40% Traffic Signals 13,366 13,975 30,000 10,877 17,000 -43.33% Street Lights. Billed 129,041 127,579 141,150 122,543 139,150 -1.42% Tree Preservation 20,229 20,376 23,830 23,680 24,378 2.30% Weed Control 15,441 19,201 20,674 19,374 19,685 -4.78% Parks and Recreation 538,522 584,653 627,967 629,133 670,798 6.82% Recycling 91,071 108,390 117,931 120,831 118,873 0.80% 1lTOtal'p(;1)ITcWofk1i''T'''===' ,.,,""-C "''=^' 2,19$,60111 2,320.803 2,112,723 2,169,1117 2,083,913 1.23% c."..~....M.,",........M"""'''',",,, ...M.M. ='-"" o,m",'" 0''''''''''' OTHER 503,378 145,068 46,089 39,393 87,556 89.97% 89.97% r=r.*.-"'.".....-......""-..C'"."".-~7'T~-~""""""""~..==..=4"..,...........~'~~=...,.'".""'T..,,~..=..,,..~.."7.""...,'T=..,.p"..'1 4.93% 1.... . . .'. GRAND TOTAL.. .... .F' ...$.6.632,605. ........... $.6,277,646... .$..6,977.261 ....$ ...6,679.093..... $..7.321.193 ~"'""";.;;_''''''''''^'''',,''''~=&'"'cc,;''','''''''"~''m'"O;>'''''' ro"',""" ~"'"";., ~,o,,~" =~ I CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 .. Mavor and Council- Department# 41110 Personal Services $ 37,410 $ 39,233 $ 38,943 $ 38,943 $ 44,719 Supplies and Materials 246 362 500 650 600 Purchased Services 15,738 17,350 7,480 8,530 8,603 Other Services and Charges 18246 17.610 7n R7<; 20.700 40,147 Totat~!Y.eIlllld . h'" ....11":64tFf .......~:f.. .' '67:748.f, .t::>IlR?'.l f.. f'""" "I,.L Newsletter - Department# 41140 Supplies and Materials - 149 - - - Purchased Services 18,723 24,519 28,100 37,500 40,700 Other Services and Charges - - 250 - - "" Total .........". f'f'" 18;7231' '.' "..<?ll '.l"n ,. 37~.f AO.700 City Clerk - Department # 41400 Personal Services 85,547 89,500 96,114 99,364 100,216 Supplies and Materials 917 1,052 1,200 1,200 1,200 Purchased Services 14,784 16,675 21,177 20,127 22,036 Other Services and Charges 1,160 754 8,115 7,250 8,115 Capital Outlay - 1,833 - - - ..... .. ..' ......"To.tal~itY ~lerl(f,.. ....f..1n")An"\f. '1 .....17RRnR " ",127.941 "13".567 I Elections - Department # 41410 Personal Services 14,934 1,632 23,488 28,488 1,748 Supplies and Materials 369 - 4,600 4,600 - Purchased Services ~ - 5,725 725 25 Capital Outlay 10 10.000 10.000 10.000 10.000 ...,.. Total ",. ."f.f' '.7'25:807 '.f.f.11,632..' ...... .'.f43.813' ..... ...., f"". . 43:813'"f f' ".11:773' Administration - Department # 41430 Personal Services 68,932 69,493 94,325 94,325 104,685 Supplies and Materials 1,444 2,801 2,600 2,400 2,150 Purchased Services 11 ,487 19,200 17,676 16,676 17,338 Other Services 4,534 3,139 5,700 4,750 6,050 "'.............h,,7TotaiAdri\iolStra'Uori"'D'IT::7'T"'..T'86is991'.",;;",'",'94:633'1'" '",'"120,30F"7,,."'i'Hs;fsT'.;;;T fsoi22'3i Page 1 of 4 I I CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 " Human Resources - Department #41431 Personal Services - 23,019 841 - 5,822 Supplies and Materials - 180 700 700 900 Purchased Services " 411 83,764 3,250 83,900 Other Services - 199 76,OIi 1,928 104,731 Total i'i"i" /,..,'.',~./,' /23,809, /i>>161,379\ , , >i'S,878 /' Financial A.dministration - Department # 41530 Personal Services 199,873 212,589 232,893 232,893 242,645 Supplies and Materials 2,759 2,376 4,300 3,950 4,300 Purchased Services 16,461 16,696 19,419 20,738 25,729 Other Services and Charges 4,153 3,238 5,600 4,131 5,600 Capital Outlay 2,100 2,665 1,500 1,500 900 ..'ZTOt'iFFino1riciai';r(dnilhistratioi'l ""0?>225;345"i?'F'iF237:564~ TFr263,7f2~r'"TT?''''263;212' '279;174 T".'.......,.."'......=..,-"'.w.".._..,.''''~., , , .', , ", " ~ ~. ,,,., ,., ". ..^..,.,"',.,"~."...".<, ", ,.., ...,.^....~.'^ . ....~".^'+j".. .>...., "',. "",,',",""" Assessino - Depa,rtment # 41550 JProfessional Services 83,784 92,037 102,000 101,200 110,000 Total Assessments , .. "'i ,."", '83,784 ....' 92,037 '" . ",' 102,000 ,,', .,,101,200...1.10,000 'r'..'.."'''....,.''''..,.....,.~'''''~~...., ' ",.. , ,,' " "" , ,,,,,'." , , ",. ' ".". " ... '" "", .."" I Attornev - Obiect # 304 Professional Services 116,966 127,403 133.200 133,200 137,196 '. i ',IOUlI \;"i>,.,'\"'i ,>>,,'116,966"i/,' '>1 i!f,'lU.3 . i '133~":\' .131;'196' I Plannino and Zonino - Department # 41910 Personal Services 196,362 192,489 234,110 225,515 253,753 Supplies and Materials 2,495 5,180 4,000 2,400 4,000 Purchased Services 11,595 11,385 11 ,431 18,583 38,548 Other Services and Charges 4,588 4,669 9,042 5,891 9,093 Capital Outlay - 2,396 - 2.290 - - ICltal, ""..,',~~~'l:I..n,a, inn ' /,/215,039 '" 216,119, ~[~""'~9" .3 I I Page 2 of4 I I CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 Information Systems - Department # 41920 Personal Services 26,635 61,262 65,904 65,904 71,926 Supplies and Materials 53,885 6,199 10,250 9,150 9,000 Purchased Services 15,821 14,950 17,380 16,700 Other Services and Charges 20,920 30,910 30,947 36,550 Capital Outlay 17.586 21.560 9.400 7.700 J4,300 total Data. r ,,' "'98,1UI:5' 1:.!o.fl:5:.! > "1"31.414 ,131:081 i). "" '"'','+/''' , City Hall Buildin!:! - Department # 41940 Supplies and Materials 5,500 10,378 6,750 7,050 6,550 Purchased Services 40,168 43,150 46,201 46,949 48,260 Other Services and Charges 16,735 19,169 22,425 23,125 21,250 Capital Outlay - 958 - - - "... Total.'CityHalt " '" "..' t:5:.!,4U~)' ',73:655. 75.376 " · 1.7,124),'))" Fire Station - Department # 41950 Supplies and Materials 1,297 2,202 5,500 4,450 5,300 Purchased Services 35,182 39,665 51,344 47,925 52,985 Other Services and Charges 10,205 10,799 11,800 16,200 17,500 Capital Outlay - - - - - ,.'Total Ji rf),St"'tinn.,".. ....... .4R RR,L,," "'> 'RR R.4.4" .l:itl,OfO JO.ftlO I Public Works Buildinll - Department # 41960 Supplies and Materials 9,529 11,009 12,500 10,000 10,000 Purchased Services 57,895 61,207 74,737 81,590 82,092 Other Services and Charges 17,220 24,513 23,500 24,500 24,000 Capital Outlay 11,904 798 - - 6,800 Transfers 173,165 181,355 183,660 183,660 190,310 ~'~i~"""""'~""""'~"""'~''''''''''''''~''~''''-'''''''~'~'''''''''''''''''''f'7in'''Y''''''~~''o~o~'''~~~'''''err'h~"}''s~!~"",,,,,,,,,~,,,~,o,~~,-0",''0 """i''''''''''/'''~'"''',' -"",~"'C-,--",":':'''('''''''~''''",~0"''','_~:e_'''',,,,,~-,Y''"'P'1""fIW~""'"-""""~""'~'~~'7 ....,..Tota.l. PubJIc:Works 1'./>....,.".1'1'..269,713..1'.'>278,882).' 294,397,1')/".299,750.)./)313,202 T""'''''''''''.....,.."."......,.~......~..~--..r .... ... . ... ... ...... ....".. ... I Senior Center - Department # 41970 Supplies and Materials 915 67 700 600 600 Purchased Services 7,319 8,697 9,123 8,836 9,234 Other Services and Charges 2,603 3.495 4,600 4,200 4,300 Capital Outlay - 1.388 65.000 57.000 - Total' :"'vu..... 1',,), ,.,.....1 U,B3Ti' 13.647 79.423.) 70,636 /i"i'14;1~.. / Page 3 of4 I I I CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 - Eauipment Buildina - Department # 41980 Supplies and Materials - 50 1,000 - 800 Purchased Services 11,254 1,781 10,533 8,719 9,050 Other Services and Charges - - 1 ,400 3,000 1,150 Capital Outlay - - - - 3,000 TTotal "',""" :'11~( ,'" i1.831" 12.933 :, ',(11,719 14.000' :" City Hall Garaae - Department # 41990 Supplies and Materials 12 28 350 350 350 Purchased Services 528 188 1,985 1,481 1,714 Totai,CitYHlllI~u"ul:l" 't.. :'. 540 :", /:,,' 216 "",,', '" ", .2,335 ((1,831, .,/./2,064. T Sunshine Park - Department #41995 Supplies and Materials 7,308 3,954 7,550 6,350 6,650 Purchased Services 17,027 12,272 15,220 12,402 13,167 Other Services and Charges 7,463 11 ,535 10,500 11,850 10,500 /Total , ~ark,i ... "'<;.'31~rji""'-'"" 27,761 ../33.:tfUii ,/~n Rn?/ <.:".30.317 / Enaineerina - Department # 42000 Personal Services 323,307 307,358 321,319 301,000 323,182 Supplies and Materials 8,696 8,039 18,000 13,000 15,500 Purchased Services 7,580 6.317 11,744 11.700 8,162 Other Services and Charges 15,726 17.996 23.910 20.000 21,885 Capital Outlay 6,904 5.567 2.350 2.350 - '.'" /,:,Total .,i',(.'(:' /362,213/ ,'.. 345.277.i ".."', 377.323 ,/.'..368,729 ""T..'TofAiJ"GENERAi.::"GOVj'T'...";;"$?7f;s'39;659iT$"'. ",1;931;931T"'S<7i,3S0;aOa.C$T..i;193;766..'......$...."2,47ST2T6'" ;;""",b"'''''''''''0.''''''''''",::"''''-'::0'':'''':._.4=.''''',':'''0'''"''8~.''''~.,,''''''''.;;'-'h~ ""'''''-''" , Personal Services 952,999 996,575 1,107.938 1 ,086,432 1.148,696 Supplies and Materials 95,371 54,026 80,500 66.850 67,900 Purchased Services 466,995 514,774 665,809 597,512 725,439 Other Services and Charges 1 02,633 138,036 254.651 178,472 310,871 Capital Outlay 48,494 47,165 88.250 80.840 35,000 Transfers 173,165 181,355 183.660 183.660 190,310 1.839,659 1.931,931 2.380.808 2.193.766 2,478.216 / Page 4 of 4 I I I CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 Streets & HiQhwavs - Department # 43100 Personal Services $ 230,133 $ 296,260 $ 172.744 $ 172,744 $ 181,050 Supplies and Materials 26.579 28,680 31,700 32,000 32,100 Purchased Services 16,772 17.301 21,807 22.207 21,843 Other Services and Charges 595,762 308,303 167,681 139.931 141.331 Capital Outlay 1,103 - - - - .. ..... Otal vo. ~ >> > .... ,/(AX '~.JF'>o':i' . .... .",' .JT"J I I Snow and Ice Removal. Department # 43125 Personal Services 200,509 192,238 269,447 269.447 290,867 Supplies and Materials 160,569 79,405 160.900 139,900 149,900 Purchased Services 2.262 2,630 3,828 2,928 3,147 Other Services and Charges 79,243 88.899 99,298 98,598 104,081 Capital Outlay - - - - - I'J;clotal Snow and Ice J"f'U? .;ih'.. .>363.172>' .."...... 510.873'> '..... Mf.995 I I I I Storm Sewer. Department # 43150 Personal Services 43,018 44.104 60,054 60,054 67,872 Supplies and Materials 8,344 7,261 7,400 7,400 7,000 Purchased Services 203 228 403 333 314 Other Services and Charges 12,838 44,019 58,441 58,441 45,193 Capital Outlay - - - - - '" "'J~. ".126.228 :J'120.37!f ....Total..Storm Sewer....,. b4.4U';s J' Street LiQhtinQ . Department # 43160 Purchased Services 22.481 24,149 28,000 21,381 30,000 Other Services & Charges - 75 400 400 400 Capital Outlay 1,480 9,255 8,000 8,000 - ~ 'TTTTotafStfeeU:'19f1tlnrmi'" . . ""'23;961 . ~ .,'.. 33;479 ,..,. 36;400.,,'...... 29;781 . "'30;400 ....r=.........'''.~~~....~r . . ..... .. ...." .... ... . . .. .... ..... ... .. I Street SiQns . Department # 43170 Personal Services 65,006 62.714 74,114 74,114 81,977 Supplies and Materials 34,247 23,665 30,200 37.700 37.600 Purchased Services 141 285 435 435 445 Other Services and Charges 7.123 8.229 13,412 11,462 11,604 Capital Outlay 5,320 849 - - - 1,,7i'7'fotaISfreefSignsY"',J'7" .'T11'.837'....7 ......95:142.;..J. 'f1a.isf ...... "'123,7r1~" "'13'1;626' Page 1 of 3 I I I CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 Traffic Sionals - Department # 43180 Purchased Services 13,366 13,258 30,000 10,877 17,000 Capital Outlay - 717 - - - ...... rotal..."".". "~>> 'l;;,\lfo '. . ...'36:000. .10,877 ....>.1i~ I Street Liohts - Billed - Department # 43190 Supplies and Materials - - 150 150 150 Purchased Services 116,830 120,951 125,500 106,893 130,500 Other Services and Charges 12,211 6,628 15,500 15,500 8,500 Capital Outlay - - - - - I>" 'Total '."7--",',,,,' .'''. 1\~ 139,150' ....,.> .' C/' / > 141,lbO.> I I Tree Preservation - Department # 46102 Personal Services 4,761 4,971 5,600 5,600 5,690 Supplies and Materials 500 1,625 2,900 3,500 4,000 Purchased Services 13,185 474 10,636 10,086 10,092 Other Services and Charges 1,783 13,306 4,695 4,495 4,596 Capital Outlay - - - - - .> JOtal , !auv,,>'= .1Q,~29.>> . '::U,"IC , . 23,tl;;0 /G3,680>T'24.37~ I I I I Weed Control - Department # 46103 Personal Services 7,628 8,197 8,825 8,825 9,069 Supplies and Materials 200 4,803 3,375 3,375 3,375 Purchased Services 603 480 1,671 1,121 1,131 Other Services and Charges 2,Q10 5,721 6,803 ~,053 6,110 rotalweed.... 10,441>', 19,201.:'> 20:674' > ".19,374> 'l9':685 I Parks - Department # 45200 Personal Services 313,742 340,428 387,989 387,989 426,486 Supplies and Materials 51,136 49,860 50,000 56,000 57,000 Purchased Services 23,296 27,898 32,308 29,474 31,737 Other Services and Charges 98,367 109,237 108,208 106,208 106,113 Capital Outlay 31,103 40,855 40,000 40,000 40,000 Debt Service Assessments 20,879 16,375 9,462 9,462 9,462 .... :.'; CltlIl f>llfks., ">,/ >/ .'~i\'" ...... ...58@c.......' ....tiGf,litif. ...... ti~li,133>0{U,I"'O Recvclino - De/.1artment # 46140 Personal Services 50,177 59,112 65,208 65,208 66,224 Supplies and Materials 5,122 7,019 11,050 11,050 7,550 Purchased Services 2,678 3,225 7,550 5,050 4,550 Other Services and Charges 33,094 39,034 34,123 39,523 40,549 Capital Outlay - - - - - . " lotall ... ""li1,071 .......1b8;39'0. ./117.931. .. /118,873 I I I I , I , Page 2 of 3 I I CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 70rolAtpueLIQWPRKS. .' '2;'320,804 ','2,H2;72:f $:2;169;817' $ 2;01l3;913I:$2,196;601l' ""<"""""=",=~""""",""=WX;;'=M,""".~';;""",~,,,==,,,,,",,,,,,,,^,,",,,,;;,.,..., ,"" " , Personal Services 914,974 1,008,024 1,043,980 1,043,980 1,129,235 Supplies and Materials 286,697 202,318 297,675 291,075 298,675 Purchased Services 211,817 210,879 262,138 210,785 250,759 Other Services and Charges 847,431 623,451 508,561 480,611 468,477 Capital Outlay 39,006 51,676 48,000 48,000 40,000 Debt Service Assessments 20,879 16,375 9,462 9,462 9,462 2,320,804 2,112,723 2,169,817 2,083,913 2,196,608 Page 3 of 3 - I I I CITY OF ANDOVER Expenditure Budget Summary Totals I Budget Year 2003 1 Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 Police Protection - Department # 42100 I Supplies and Materials $ - $ - $ - $ - $ - I Purchased Services 1,062,430 1,103,016 1,203,496 1,201,896 1,326,204 Other Services and Charges - - - - - /' 1,.(),tlI1 t'ollce "<1 <1. R 1?n~ .4<::lR "'1,20~;....t1,. Fire Protection - Department # 42200 I Personal Services 394,610 427,696 519,187 510,919 538,289 'Supplies and Materials 23,734 20,002 50,700 47,700 48,200 I Purchased Services 16,094 16,931 21,320 20,895 21,966 Other Services and Charges 113,852 131,166 151,819 155,750 158,292 Capital Outlay 2,396 - 5,250 5,250 10,500 1,"/' ..... 'v..... ""'~ .".. .... '/ ...... 0"0, { ";5"]"',,,::748:276' /'~r", J f /,G47 Protective Inspection - Department # 42400 I i Personal Services 300,740 337,776 357,741 357,741 393,715 'Supplies and Materials 4,692 5,775 10,100 9,200 9,300 I Purchased Services 5,863 5,619 8,089 7,289 8,378 lather Services and Charges 18,239 17,892 21,707 20,607 21,105 ,Capital Outlay - 3,184 800 800 - '7fQtarjSrotectlyeJrlsp~~tloil7'<n::"",'329:534'n'/","T370;2467'::'.:,398.,437."....'7..,395:637;;:'T',:.,'432;498' I .......,..._...........,..''''..~.'".~.."''..~'''~r.............c.'...........,.,......... .....,....... .cc..".. .... .. ........ .... .... .c.....,. ,....,. ,....... ................. ..c.c."'c,, '. , Civil Defense - Department # 42500 I Personal Services 3,314 3,444 3,535 3,535 3,813 : Supplies and Materials 8,284 1,346 6,900 6,900 5,150 Purchased Services 1,204 1,264 1,623 1.359 1,471 Other Services and Charges 540 4,459 4,500 4,500 3,500 Capital Outlay - - - - - ,.iL ..rotaIClyil .,......13.342....'1 U,513 """16':b58'. .. ..1ti.Gl:I4......... .......13.l:I34 I I Animal Control - Department # 42700 , Supplies and Materials 68 185 205 180 205 Purchased Services 12206 8,169 13.575 7,500 8.725 1,'....IOtal AnIrn"l ;.:.':;:; ",," ,,12,774 ." .' ..8:354..,..13,780....".....~, ..tl,liJU I i",,"'fOfA(.7POSCrC]3Atltty7.}',J'"$'71;96S;76ifh"2;081;924,.1"$"'*2;3s0;547.L$'F2;362702'f'~$":;2;558:~13" l..c"......,....'c..".....................~........~......T ''1'" "r T r Page 1 of 1 - CITY OF ANDOVER Expenditure Budget Summary Totals Budget Year 2003 ; Actual Actual Budget Estimate Proposed 2000 2001 2002 2002 2003 Other Financial Uses Unallocated $ 112,090 $ 118,891 $ 46,089 $ 39,393 $ 87,556 Other Uses 391,289 26,177 - - - 1..0"'nTlIl ..'.(jSE;< '79:< i< << ..,< <iii.Q7 r:r:...: .....~......,. ....., .~~t100\L~:mf!\N!i!it::(!1!!dr$"i6;6327.08.!C,$'i'!if,2T1';...*f:'[6~'I7:...1~'fi\:~;6t.;oi';/;;r,,'7;32jiflj3j 0~T'..'..'0~.0.00".~_0.0"._._.,=,.~"_,."~'~..""r'. . ... . .... "I" '. , .. '. 0"T' .. . .. . "''1'" ,. . ""r. ..... '.. . ...." I I Page 1 of 1 CD CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: Mayor, City Council Members and Residents of Andover FROM: John F. Erar, City Administrator SUBJECT: Proposed 2003 City Budget DATE: August 26, 2002 INTRODUCTION City ordinance 216, Section 2. Major Areas of Accountability requires the City Administrator to submit an annual budget to Council, which accurately reflects the financial needs of the City organization. Additionally, state law requires that Council approve a preliminary budget and certify a proposed levy to the Anoka County Property Records and Taxation Division by / September 16: 2002. In response to these requirements, the City Administrator's proposed budget will be presented to Council on August 26, 2002 in advance of this deadline. Council held a budget planning workshop on June 18, 2002 to discuss priorities and will need to adopt the proposed 2003 Budget and preliminary 2003 City Levy on September 3, 2002. Due to changes in legislative requirements, Council will need to schedule a Truth and Taxation hearing with dates to be provided at the September 3, 2002 Council meeting. Final action adopting the 2003 City Budget and 2003 Levy is scheduled to occur on December 17, 2002, but must be adopted no later than December 28, 2002. The official adoption of the 2003 Budget and City Levy must be submitted to Anoka County and the Minnesota Department of Revenue on or before December 30, 2002. This budget document should be viewed as more than just a collection of financial data, but as the financial plan in which the organization will implement and accomplish Council policies, as well as meet the articulated needs of the community and residents. In addition to the financial data contained within, this document includes information on the City organization, describes programs and services, and provides statistical values measuring activity performance and workloads. Most importantly, this budget is a reflection of the City's plans, policies, procedures and objectives regarding the services to be provided in 2003. As part of the budget development process, City staff, including department supervisors, performed a comprehensive review of their specific service needs, prioritized spending requests to achieve the most effective operational delivery of services, and then balanced the allocation of the City's human and financial resources against those needs. It has been our goal to accomplish Mayor, Councilmembers, Residents , 2003 Proposed City Budget Page 2 this in a fair, impartial and balanced manner that meets with the approval of Council and the residents we serve. Some of the key policy factors that guided the preparation of this budget were: 1) A commitment to restrain any increase in the local tax capacity rate to a percentage level no greater than the annual increase in the consumer price index for the previous calendar year (2001 CPI= 1.6%), while providing for the cost-effective delivery of public services to a rapidly growing residential population.! 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 30% of planned 2003 General Fund expenditures. 3) A commitment to maintain the 2003 debt levy at no more than 25% of the total levy. 4) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. 5) A team approach that encourages strategic planning to meet immediate and long-term operational, staffing, infrastructure and facility needs. 6) A management philosophy that actively supports the implementation of Council policies and goals, and recognizes the need to be responsive to changing community conditions/concerns. It should be noted that the Proposed 2003 Budget meets or exceeds Council policy goals in all categories. SIGNIFICANT EVENTS OF THE CURRENT YEAR The pace of residential development in the City continued at a slower rate or growth in comparison to 2001. As of July 1, 2002, the City issued 103 new single-family building permits with a total valuation of $15,978,000. The City also issued building permits for 26 new multi- family dwelling units with a total valuation of $2,998,000. Some additional noteworthy events/activities which have occurred year-to-date in 2002 include: I Due to legislative restrictions on the City's ability to exceed State levy limits, the City was unable to raise the City's tax rate by 1.6% that would have equaled the 200 I CPI. This resulted in a loss of $190,191 in tax revenue the City would have been able to raise to help fund essential services to the City's rapidly expanding residential population. In reality, due to State Levy Limitations the City's proposed tax rate was reduced by 1.9% or a net reduction of .62 , to 32.65%. From a practical perspective, State levy limits prevented the City from capturing the full tax capacity value of the growth in the City's expanding tax base. Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 3 1. The City Council gave final approval to the City's 2020 Comprehensive Plan providing a blueprint for the long-term growth and development ofthe City. This approval also initiated a major staff effort to designate a minimum of 1,000 acres of Rural Reserve for future areas where urbanization is most likely to occur in compliance with Metropolitan Council planning requirements. 2. The City Council received the Final Report from the Sports Complex Task Force regarding the need for a new 110,000 sq. ft. City Community Center that includes a field house/gymnasium, indoor ice arena, aquatics center, aerobics area and meeting facilities. The Council is currently reviewing the report and is expected to make a decision in the later part of2002. This effort symbolizes the impact that citizen participation has on the future growth ofthe community in terms of needed public facilities and services. 3. The Economic Development Authority approved the final purchase of property by United Properties in Andover Station marking a turning point for the redevelopment ofthis valuable land resource. A new 50,000 sq. ft. grocery store, adjacent 16,200 sq. ft retail tenant space and a stand-alone 12,500 sq. ft. retail space is scheduled to be completed by October, 2002. 4. The City Council authorized and adopted a number of new measures and planning initiatives to promote and maintain high quality development practices that included the acceptance of a Neighborhood Business District Study, approval of new Development Contract language controlling private development procedures, and approval of updating ofthe City's Lawn Establishment and Accessory Building Structures ordinances. 5. The City Council authorized the preparation of a City-wide Transportation Plan that will serve as a planning tool for the future transportation needs ofthe community. 6. The City Council authorized the construction of a 6 million gallon a day (mgd) Water Treatment Plant and 1.5 mgd underground water storage reservoir that is scheduled to be completed in late spring of2003. 7. The City Council authorized the construction of new Municipal Well #8, which has been designed and is under construction to address current and future community water service needs. 8. Upon recommendation by the Parks and Recreation Commission, and approved by the City Council, City staff has completed the design and construction of over $600,000 in park and trail improvements. 9. The City Council authorized the development of a Sanitary Sewer Plan for land areas that may potentially be designated as Rural Reserve. This plan will identify how sanitary sewer services could be provided to areas beyond the City's 2020 MUSA boundaries. 10. Achievement of a Standards & Poor's bond rating upgrade from an "A" rating to an "A+" rating. This rating upgrade is a true achievement of the entire Management Team as the rating report references the strong management at the City of Andover. Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 4 11. The 2001 Audit of City Finances was reported with an "unqualified" audit opinion for the second year in a row and with no reportable conditions. 12. Submission of the 2002 City of Andover Annual Operating Budget to the Government Finance Officers Association GFOA) as part ofthe Distinguished Budget Presentation A ward Program. 13. The City Council approved the restructuring of the Finance Department leading to the creation of a new Assistant Finance Director to effectively address changing demands and requirements associated with managing the City's fiscal affairs. 14. The introduction ofa new Customer Service Satisfaction Program to measure the level of customer satisfaction with City services and programs. 15. The renovation of the City's Senior Center by Public Works Division staff underwritten through a combination of City and Community Development Block Grant funding sources. 16. A full time Fire Marshal was hired in April of2002 to oversee Fire Code inspections. The Fire Marshal will also review new building and development plans. 17. The Andover Fire Department and Anoka County Sheriffs staff organized and conducted a successful Kid's Safety Camp during the third week of June. Over 90 children from Andover and surrounding communities attended the two-day camp that included a variety of personal and home safety instruction. 18. The Fire Department took delivery and put into service a new 2,500 gallon water tanker near the end of July. The new water tanker will help provide fire suppression services to all rural areas of the community, which do not have City water service. 19. During the first six months of2002, the Fire Department has conducted public fire education and fire safety for over 1,000 residents and students. 20. City officials, the Anoka County Sheriffs Office and the Andover Fire Department participated in National Night Out activities in a number of neighborhoods to promote community public safety relationships. 21. The Fire and Building Inspections Department conducted inspections and appropriate testing of new fire sprinkler and fire alarm systems for several new facilities constructed in Andover. A representation of some of these facilities included the Rum River Elementary school, the Andover High School, and the Andover Station Commercial center. 22. The updating and restructuring of the City of Andover Emergency Operations Plan by City departments under the leadership of the Fire Department will help ensure appropriate emergency response in the event of a community emergency. The plan is intended to assist City officials and emergency organizations to carry out their responsibilities for the protection of life and property under a wide range of emergency situations. 23. To date, the Community Development Department Code Enforcement Office has processed over 730 code enforcement complaints to maintain quality oflife factors within the community. Mayor, Councilmembers, Residents I 2003 Proposed City Budget Page 5 24. In areas of environmental protection and preservation, staff aggressively implemented the 2002 Oak Wilt Suppression Program, coordinated the Lund's Evergreen Estates Pine Thinning Project Grant, and developed educational literature on healthy tree preservation. practices. OVERVIEW The Proposed 2003 budget anticipates General Fund revenues in the amount of $7,321,193 to meet anticipated budgeted expenditures in the same amount of$7,321,193. General fund balance reserves are projected to increase to 34.95% in 2003 as compared to 33.3% in 2002. The proposed 2003 General Fund Budget represents an increase in operating funds of $343,932 over last year. Designated capital operating levies of $873,611 represent an increase of $26,215 over 2002. The Proposed 2003 Budget also contemplates the issuance of a $400,000 Equipment Certificate Note that would be privately placed to undenvrite the cost of public safety capital outlay and other capital equipment. The issuance of new debt falls outside state levy limits and maintains the City debt ratio to gross City levy at 12.5%. The increase in General Fund expenditures, in part, is supported by a net increase in property tax J revenues associated with the City's expanding tax base and an increase in Charges of Current Services mainly associated with new development activities. General fund expenditure increases over last year are primarily associated with capital outlay requirements, public safety contractual services, health insurance premiums. and inflationary increases in general operating costs associated with a rapidly growing service population. The 2003 Proposed Budget provides for a tax capacity rate of 32.6%, which compares to 33.3% for 2002 - a 1.9% reduction. Due to state levy limits, the 2003 tax capacity rate does not reflect a Consumer Price Index (CPI) increase of 1.6% as authorized under Council Budget Policies. As a result, the City was unable to capture an inflationary increase in collected tax levies that would have resulted in the collection of additional property tax levies of $190, 191. General Fund trends since 1995 are as follows: Expenditures Percent Change Before Transfers Over Prior Year 1995 Actual Expenditures $ 3,146,260 8.34 1996 Actual Expenditures 4,062,026 29.11 1997 Actual Expenditures 4,458,792 9.77 1998 Actual Expenditures 4,799,979 7.65 1999 Actual Expenditures 5,769,609 20.2 / 2000 Actual Expenditures 6,263,534 8.56 Mayor, Councilmembers, Residents , , 2003 Proposed City Budget Page 6 2001 Actual Expenditures 6,096,283 (2.7) 2002 Adopted Budget 6,977 ,261 14.45 2003 Proposed Budget 7,321,193 4.9 Some highlights ofthe Proposed 2003 Budget are as follows: Capital Proiects Levy - The 2003 Budget proposes to specifically designate $873,611 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($203,200), Road and Bridge ($619,611) and Park Projects ($50,800). Specific designation of the tax levy to anticipated City needs and priorities for transportation maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases, with Capital Outlay and Park Levies increased according to the 2001 CPI established by the Federal Bureau of Labor Statistics at 1.6%. . Road and Bridge - Under the Capital Projects Levy, a total of$619,611 is proposed for transportation programming related to maintaining City streets, roadways and pedestrian trails. This will be the first year that a portion of the Road & Bridge fund ($18,588) will be dedicated to pedestrian trail maintenance representing approximately 3% of the levy. $288,491 is designated to the City's seal-coating and crack sealing programs, with the remaining $312,532 dedicated to street overlays pursuant to previous Council direction of designating a one percent tax levy and capturing one percent of new tax capacity growth to transportation infrastructure needs. As a percentage, this funding commitment represents approximately 9.95% of the Gross Tax Levy. . Park Improvements - Under the Capital Projects Levy, $50,800 is designated to capital projects for park related projects. This level of funding is proposed as an annual appropriation to be used to underwrite a wide range of park improvement projects as recommended by the Park and Recreation Commission and approved by the City Council. This funding is proposed as a long-term supplemental source of capital funding for park projects that would be separately identified in the City's Five-Year Capital Improvement Plan. . Capital EQuipmentJProiects - Under the Capital Projects Levy, $203,200 is designated to underwrite a wide range of capital improvement/equipment project expenditures. Through this designation, the City, over time, will be able to build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending environment. A portion of this designated levy ($118,910) is proposed to address a wide-range of facility maintenance and equipment needs. Facility maintenance activities include exterior block sealing applications, City-wide phone system replacement, garage door replacements and new equipment and vehicle purchases. Sheriffs Police Contract Services - The 2003 Budget contains an additional $122,708 for increased contract staffing and inflationary driven overhead costs. Ofthe total increase, $101,472 Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 7 is proposed for one additional eight (8) hours of patrol coverage that includes 1.68 FTE staffing increase and one addition patrol vehicle. It is proposed that this additional coverage commence on July I, 2003. Sheriff's representatives did attend and participate in the 2003 Budget process and concur with the proposed staffing increase in the service contract. Play Structure lJpgrades and Maintenance - The 2003 Budget proposes $40,000 III appropriations to upgrade existing playground equipment and structures at City parks and the upgrade of the Crooked Lake School Hockey Rink. Technology - The 2003 Budget proposes $14,300 for new computers and peripherals to replace outdated workstations in several City departments. Computerization allows staff to become more productive and efficient in managing high volumes of City data, responding to citizen requests and analyzing trends associated with City activities. Civil Defense - The 2003 Budget proposes $30,000 to replace two (2) outdoor warning sirens with battery backup systems. This continues the seven-year program that was approved in 2002 for the replacement of outdoor warning sirens that are nearing the end of their effective life-cycle. Existing sirens without battery backup are subject to power outages that could result in failure to emit outdoor warning tones during severe weather. Community Education Program Funding - Anoka-Hennepin Community Education programming funding is proposed at $73,200 for the 2003 school year. This represents a nominal increase of approximately $386 over 2002. The school district and City share the cost of a full- time coordinator, 2 full-time programmers and 1 part-time programmer at existing school facilities. The Council met with School District representatives earlier this year to gain a better appreciation ofthe services provided by the District. Zoning Ordinance lJpdate - With the final adoption of the City's 2020 Comprehensive Plan, the budget provides $20,000 to update the City Zoning Ordinances to ensure consistency and support of Comprehensive Plan goals and objectives. This will be two-year project effort over 2003 and 2004. Postage Increases - Due to continuing increases in postal service rates and increased mailing of City information and correspondence, budgeted expenditures will increase by more than 20% from $40,070 to $45,850. Anoka County Assessing - Due to the City's expanding residential and commercial tax base, the number of properties to be appraised by Anoka County has increased significantly. Current assessing review schedules require that one-quarter of all properties be evaluated on a four year rotation. As a result, assessing costs for 2003 will increase by $8,000 to $110,000 annually to underwrite these additional service costs. ORGANIZATIONAL MANAGEMENT Staffing - Staffing is proposed to increase from 58 to 60 full-time staff with the Parks Department adding a full-time Parks Maintenance Worker to address growing trail and park infrastructure maintenance needs. The Proposed 2003 Budget also includes a contingent staffing position for a Community Services Director should Council approve the construction of a new Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 8 Community Center. This position would participate in the design and construction of the new facility, ultimately overseeing the operations of the facility, and include the realignment of the Parks Maintenance Department within a new Community Services Department. In addition, the 2003 Budget proposes to restructure an existing, but unfilled Engineering Department technical position to a Natural Resources Technician to address a wide range of environmental quality issues including NPDES requirements, forestry, soil and erosion, lawn establishment and rights- of-way management issues. This position was restructured using existing 2002 Budget appropriations and will actually result in a savings to the department, as the existing forestry internship duties will be incorporated within the full-time position. Cost-of-Living Adiustments - Compensation adjustments representing inflationary increases for all bargaining and non-bargaining employees are proposed at a standard three (3) percent. This adjustment represents approximately $81,158 for all City departments, and is line with other local government jurisdictions plans for baseline wage adjustment increases. Health Insurance Costs - Premiums for health insurance continue to increase significantly due to a variety of market and group experience factors associated with diminished competition, increased spending on medical services and rising drug prescription costs. Employer health care contribution increases are factored to maintain an employer ratio of 76% of the low cost family , " coverage premium costs representing a budgeted increase of $85,050. In addition, the budget proposes to migrate the City health plan to a modified cafeteria plan at a projected first year expense of $50,000 in true accounting liabilities. As it stands, City budgeting costs for health care are based on a standing employee count of family and single coverage for budgetary purposes, while the City is already committed, from an accounting liability position, to providing maximum monthly contributions for family-based coverage. A cafeteria plan would allow all employees to more fully utilize the employer's health care contribution regardless of personal coverage levels. Staff Performance. Retention and Recognition - In keeping with Council direction to ensure the retention and attraction of high quality, professionally trained staff, a market study was conducted in 2002 to ensure that compensation levels for key City staff positions are competitively positioned. In recognition of growth management factors associated with increasing service population, additional staff responsibilities and workloads, and the diversity and complexity of municipal operations, the City is attempting to be cognizant and sensitive to changing compensation dynamics. . The budget provides for $15,000 in market adjustments to existing non-union positions that may have deficient compensation relationships to the external market. It is anticipated that any needed adjustments will be spread over a 2-3 year period, with the goal of conducting additional studies every two to three years. . Funding is programmed for employee appreciation activities ($3,000) and a Pay-for- , Performance Program ($3,500) to recognize outstanding employee performance - Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 9 . Funding for a new Fire Department Longevity Recognition Program acknowledging both firefighter tenure and training certification achievements associated with EMT certification is proposed at $7,000 in 2003. This new program will recognize firefighter tenure at certain longevity milestones, and also includes raising probationary wages for beginning firefighters. Non-Discretionary Personnel Expenses - Pursuant to existing collective bargaining agreement requirements and personnel policies associated with step program and longevity increases, $79,961 is budgeted for non-discretionary salary costs in 2003. In addition, employer payroll costs associated with PERA and social security costs will increase by $32,861. CITY GROWTH The City continued to grow at a rate, which continues to create both immediate short-term and pressing long-term planning and service related needs. In 2002, the City is reviewing plats for a number of new developments including Foxburgh Crossing, Constance Comers, Shady Oak Grove, Maple Hollow, Woodland Estates 3rd and 4th Additions, Aztec Estates and North Lake Ridge. Private development approved this year include Silver Meadows and Andover '\ Marketplace. Private development activities in a number of subdivisions such as Nature's Run, , I Townhomes of Woodland Creek, Woodland Oaks, Chesterton Commons North and related Additions and Devonshire Estates will require City technical oversight in a variety of different areas. Commercial growth also received strong attention this year with the on-going construction of a new shopping center, restaurant and office buildings in Andover Station, with plans for additional commercial development in the adjacent Andover Station North area. According to City Building Inspection and Permitting Department reports, the City issued 103 new single-family building permits with a total valuation of $15,978,000 as of July 1, 2002 compared to 123 new single family building permits with a total valuation of $19,644,000 as of July 1, 2001. The City also issued building permits for 26 new multi-family dwelling units with a total valuation of $2,998,000. This compares to 8 new multi-family dwelling units with a total valuation of $844,000 for the same period of time.These numbers continue to reflect a strong demand for single-family housing and growing demand for high-quality multi-family housing units in the community. Residential development continues to drive the City's customer base, with a mid-year population conservatively estimated at approximately 28,908. The growth within the last few years continues to produce a profound increase in demand for City services and has significantly added to the City's infrastructure and staffing needs. Consequently, this change will result in significant future operational and maintenance costs. The chart below illustrates the significant growth that has occurred since 1995. Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 10 Growth Factors 1995 Mid-2002 % Change Estimate Population 20,497 28,908 41 Housing Units 6,300 8,870 40.8 Streets (miles) 150 173.9 15.9 Cul-de-sacs 155 309 99.4 Storm Sewer (miles) 18 28.6 58.8 Water Main (miles) 35 52.9 51.1 Sanitary Sewer (miles) 53 76.4 44.2 Parks (Number) 54 59 9.3 Developed Park Acreage 512.73 541.6 5.6 Trails (miles) 0 22.8 100 Developed Residential (acres) 7,750 13,360 72.4 Undeveloped Residential (acres) 14,616 9,006 (38.4) Accidents* 255 300 17.6 Crimes Reported* 6,622 9,856 48.8 Calls for Service* 7,981 11,274 41.3 Fire~edicaIRuns* 625 968 54.8 * Assumes the last six months will follow the statistical trends of the first six months. Note: Crimes Reported in 1995 included emergency medical calls; 2002 statistics include only crimes reported. CAPITAL OUTLAY Requests for capital outlay in the Proposed 2003 Budget are funded through a variety of sources including the general fund levy, capital equipment/project levies, special revenue and enterprise funds and through the issuance of an Equipment Certificate Note. Planned capital equipment and improvements in the Proposed 2003 Budget for all City operations amount to $263,700. Of that total amount, approximately $85,500 will be funded through general fund sources, $96,900 would be funded through other funding sources and $81,300 would be underwritten through the proposed Equipment Certificate Note. In addition, $118,910 is budgeted through the Capital Projects Fund for a variety of capital improvement planning. , Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 11 Notable proposed capital outlay expenditures include: Parks Department - $40,000 is programmed for improvements to City parks that includes updating the play structure, improvements to the ball field and parking area, and upgrading the Crooked Lake School Hockey Rink. City Clerks Office - $10,000 is programmed for the City's final payment to Anoka County for new voting machines acquired by the City. Public Works Facilitv - $17,000 is programmed for improvements to the air handling system in the mechanics bay to provide for appropriate ventilation of air exhaust. Public Works Operations - $105,000 is programmed for the purchase ofa new Street Sweeper to replace an existing unit that has become obsolete and subject to extensive repairs. This purchase is contemplated under the issuance of the 2003 Equipment Certificate Note. Fire Service - $100,000 is programmed for the replacement of self-contained breathing apparatus as a result of OSHA replacement requirements of air packs that will exceed their expiration / dates. This purchase is contemplated under the issuance ofthe 2003 Equipment Certificate Note. Information Technology - $10,800 is programmed for four (4) new computers and printer devices to replace existing hardware that is beyond its useful life and incapable of operating newer software. Older equipment is either redistributed or sold at auction. City Hall Facilitv - $11,000 is programmed for the replacement of two rooftop HV AC units that are no longer functioning properly and need replacement. LONG-TERM FISCAL OBJECTIVES The City Council and staff are committed to expending public resources in the most cost- effective and economical manner possible to insure the stability of the City's property tax rate. By keeping City spending under control, goals to enhance the local business climate, reduce the tax burden on residential property owners and, in general, ensure that tax dollars are expended in the most cost-effective and efficient manner possible provide are in keeping with the key fiscal management principles. Fiscal strategies that the City will pursue to achieve this desired outcome include: . Employing a strategy aimed at reducing the City's reliance on the property tax levy to fund basic City services through "sustainable" revenue sources such as franchise fees, special revenues, user fees and fee-for-service transactions. Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 12 ./' The City tax rate will decrease in 2003 due to previously described legislative changes mainly associated with State Levy Limits. City services will continue to be evaluated in terms of identifying all relevant funding sources to underwrite specific service expenditure, promoting alternatives to traditional funding methodologies and . encouraging public-private partnerships in service delivery systems. . The development and use of an appropriate cost accounting structure that will lead to the creation of individual cost centers for all City department activities to accurately reflect the true cost of providing specific services. ./' The City employs a cost accounting system that is department specific that attempts to accurately reflect service delivery costs at the department and division levels. By including all supplemental services as they relate to personnel. charges and services, supplies and capital outlay will further distinguish the total costs of the service provided. The City has the ability to analyze these costs at the sub-category detail levels in support of overall policy goals. . The development of work performance goals for each Department to ascertain and measure how each operating division contributes to the City's overall public service mission. ./' Each department is responsible for identifying relevant performance data to allow for an independent analysis of specific service outcomes. Data is reviewed to provide the Council and general public with a better understanding of the operational demands, resource inputs and performance outcomes associated with a specific service delivery system. . The development of a long-term financial model (Performa) that identifies anticipated trends in community growth and financial resources, designates appropriate capital resources to future City needs, tracks per capita spending growth, and establishes a link between fiscal targets and budgetary expenditure goals. ./' The City is in the process of developing a financial model to determine the long-term impacts of present day expenditure and financing decisions. Fiscal assumptions will be based upon a complex set of financial data including growth factors, tax capacity valuations, per capita spending and debt ratios. Once developed, the performa will become an integral part of the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. The City will continually update the Performa to ensure that long-term fiscal outcomes remain consistent with Council budgetary policies. . The aggressive and appropriate investment of idle City funds to maximize the generation of interest income, while ensuring adequate cash flow requirements. ./' Investment of City funds is controlled by state statute and managed by the Finance Department. Idle funds are invested in a variety of financial instruments such as certificates of deposit, municipal bonds, federal and corporate paper and are designed to maximize municipal investment income. Average annual investment yields are as follows: 1997 - 5.64%; 1998 - 6.45%; 1999 - 5.7%; 2000 - 6.7%; 2001 - 5.4% Long-term , investing is designed to achieve the best yield in the current market. following a strategy Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 13 that secures semi-annual income streams at a higher rate of return for a longer period of time. . Greater reliance on technology to enhance employee productivity in all areas of City operations and improve customer communications. ./ The City has made significant capital investments in new computer technology that has allowed staff to become more efficient and productive. Citizens will have the opportunity to access a range of City publications, documents and have the ability to communicate electronically with Council and staff. The City is in the process of codifying ordinances and then will be electronically converting the City Code for on-line access in late 2003. . The adoption of a financial philosophy that seeks to spread the cost of significant capital outlay expenditures over an extended period of time to ensure that current and future taxpayers share equally in underwriting the cost of significant public expenditures. ./ The City continues to capitalize the cost of significant capital expenditures over several years to ensure that both existing and future taxpayers share equally in the cost. In addition, the City has established a separate capital projects levy to underwrite the cost of selected capital projects and equipment and avoid a fiscal environment based on reactive tax and spend policies. . Involving all employees in the process of re-engineering the work environment by encouraging cross-training opportunities, reducing and eliminating bureaucratic barriers, streamlining public process requirements, and adopting private sector business values in City operations. ./ City staff are encouraged to identify work practice issues that are inefficient or overly bureaucratic. A Customer Service Response Team will be created to review customer services responses, identify problematic work-related issues and generate new ideas on how the City can more effectively and efficiently provide services. The management team is committed to involving their employees and fostering an environment that challenges the status quo of City operations. . Continuously reviewing opportunities to form partnerships with neighboring communities to share services and equipment, jointly purchase equipment and develop strategies to deal with local issues using a regional approach. ./ The City has established several equipment and service delivery sharing arrangements with neighboring communities and has several joint powers agreements in place on a variety of local and regional issues in the area of public safety, telecommunications, public access television and wastewater service initiatives. EXECUTIVE SUMMARY The budget as presented reflects Council's direction and staff commitment to achieve a cost- effective, efficient and high-quality service delivery model. Essentially, the proposed budget is a reflection of the City's commitment to live within its means, and ensure that tax dollars are Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 14 wisely managed and expended in as prudent a manner possible to achieve high-quality service outcomes. Guiding the City budget process were Council policy guidelines that were described earlier in this message. The Budget process was approached by employing strategies associated with extending the useful life of existing equipment; the implementation of cost center accounting that allows for a better understanding of specific service expenditures; actively seeking equipment sharing opportunities with both private and public entities; spreading the cost of significant capital expenditures over several years; purchasing new equipment and introducing new technologies that allow staff to work more efficiently. In addition, the prudent management of existing capital, financial and human resources by City staff, along with organizational practices that promote employee involvement, innovation and interdepartmental communications will generate substantial efficiencies in City operations. The budget process included the opportunity for all department heads and supervisors to actively participate in a team process. Decisions concerning the operational and maintenance needs of the organization were made by the management team after a thorough review and prioritization of budgetary requests. The integrity of the budget process relies upon all departments to work within the same framework in developing a budget that accurately identifies operational needs, , promotes informed team review of budgetary requirements, and meets the core service needs of the requesting department. Special Budgetary Issues One aspect of the City's budget that again bears special scrutiny is the funding methodology associated with the financing of storm sewer maintenance operations exclusively through the general tax levy. The General Fund budget currently underwrites the total costs of maintaining the City's storm sewer infrastructure of approximately $120,379 as proposed in 2003. This issue was raised during the 2002 Council Goal-Setting Session with direction to explore other sources of revenue such as user fees to help offset the costs of maintaining this important public infrastructure. In 2003, additional service demands will be placed on the City with respect to federal National Pollutant Discharge Elimination System (NPDES) mandates associated with managing storm water runoff through permitting and the implementation of a storm water pollution prevention program. The long-term fiscal implications of underwriting these costs solely through general tax levy revenue sources should be thoroughly examined by Council as these costs will continue to increase and shrink discretionary spending opportunities. Another item of interest deals with the cost of maintaining the City's expanding pedestrian trail network, in terms of maintenance, repair and staffing. With respect to maintenance, staff is proposing that 3% of the Road and Bridge Levy be dedicated to maintenance and repair activities of existing pedestrian trail segments. In light of recent School District transportation policy Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 15 changes, the City's pedestrian trail system will become a more critical piece of the City's overall bi-modal transportation plan. In terms of staffing, the City's capacity to respond to changing community demands will depend in great measure on the level of human resources committed to maintaining all-season access to the trail system. Health insurance premium increases continue to challenge the City's ability to provide affordable health care coverage to its employees and their family members. With premium increases anticipated at approximately 30% more than last year, the City will need to explore opportunities either legislatively or through consortium-based purchasing strategies to stabilize rate increases and maintain current coverage levels. Unfortunately, there does not appear to be a good solution in the current health care environment to control employer paid health care costs other than for the employer to shift more costs to the employee. Contrary to conventional thinking, City management continues to maintain the outlook that the employer-employee ratio of 76% be maintained as a critical employee benefit recruitment and retention incentive. The incremental introduction of a modified cafeteria plan will also move the City to a true financial accounting of health care liabilities and allow employees greater choices in selecting health care benefit levels, with an opt out provision. Legislative Challenges Pursuant to State Levy Limits, the 2003 Proposed Tax Levy has been established for the maximum allowable under law. Notwithstanding, the 2003 Tax Rate declines to 32.6% compared to 33.3% in 2002. Consequently, the proposed City tax levy imposes no additional burdens on existing properties to the extent that market values remained unchanged. As the additional tax levy generated comes from the growth in the City's tax base, the City's budgetary expenditures contains no effective tax increase on existing taxable properties subject to market value increases. Market value increases are determined by the Anoka County Assessor's Office and are not under the control ofthe City of Andover. Council Budget Policies provided that the City Tax Rate could be adjusted to match the 2001 Consumer Price Index of 1.6%. Absent State Levy Limits, local property tax levies could have raised an additional $190,191 to address the inflationary loss of financial purchasing power in 2003. To supplement City expenditure needs, the proposed 2003 Budget designates $170,343 from fund balance for working capital needs and commits $85,500 to capital outlay requirements without any substantial effect on fund balance reserve percentages. Notwithstanding these contributions to working capital reserves and capital outlay, the general fund balance increases to 34.95% in 2003 up slightly from 33.8% in 2002. City management remains strongly committed to maintaining a fiscally conservative fund balance reserve to provide for appropriate cash flow needs for the first six months of 2003 operations, yet sensitive Mayor, Councilmembers, Residents 2003 Proposed City Budget Page 16 to any public perceptions that the City is carrying too large a fund balance over and above cash flow requirements. While legislative activity in 2002 was relatively mild in terms of its effects on local government financing formulas, the City did not realize any material financial gains in Local Government Aid. The City Finance Department anticipates that Local Government Aid will increase by only $15.00 over last year, suggesting that the State ofMN will continue to retain or redistribute aids to cities with less affluent tax capacity values. Should State budget problems persist, the City remains fiscally capable to meet these challenges should further state aid reductions occur. The City continues to experience the effects of tax classification compression legislation that reduced the overall tax capacity values on commercial and high-end residential properties. While the City's Pay 2003 Tax Capacity Value increased by 14.40% over last year, the City's tax capacity value remains approximately $1,000,000 less than what it was in 2001. Consequently, the importance of preserving and growing the City's tax base will be critical to funding the community's future public service needs. Legislative inaction on eliminating the state sales tax on municipal purchases continues to misrepresent City spending patterns and erroneously inflate local budgetary expenditures. Estimates from the League of MN Cities project that cities across the state are paying in excess of$120 million a year in sales tax, which is then passed on to the State of Minnesota. Essentially, the City continues to serve as a collection arm for state government while paying millions of dollars in state sales tax on revenue derived from the property tax. For example, capital outlay alone in the proposed 2003 Budget will result in the City paying approximately $16,094 in state sales tax. This figure does not include sales tax on supplies and services the City must also pay in the normal course of business. Overall, City spending continues to be very conservative in the face of significant growth and service-related demands underscoring the City Council's policy of fiscal conservatism, service value and budgetary restraint. This point is emphasized by the fact that the City's tax rate declined by 1.9% over last year, while the adjusted tax capacity value remains less than what it was in 2001. Notwithstanding the reduction in the City tax rate, there is a 13% growth in the City's net tax levy over the last fiscal year when compared to an overall 5.94% increase in general fund revenues. This financial trend suggests a continuing shift in how local government services are to be funded after last year's legislative takeover of school funding and reformulation of state aid distributions to metropolitan cities. After fiscal disparities is deducted, greater reliance on the tax levy is a product of several factors associated with growth in the City's taxable market value, the complete loss of Homestead Agricultural Credit Aids (HACA) in 2002 and a financially obscure increase in Local Government Aid. '\ Mayor, Councilmembers, Residents , , 2003 Proposed City Budget Page 17 ill order to meet these growing challenges, the City must continually evaluate new ways and methods of conducting business in a more 'economical, competitive and cost-effective manner, while still keeping the quality of City services high and meeting the reasonable service expectations of the community. The Budget process incorporates a management vision supported through: . increased utilization, understanding and promotion of technology in the delivery of public servIces; . emphasis on long-tenn strategic planning to appropriately identify, allocate and effectively utilize resources to meet future service needs; . greater participation, accountability and flexibility in the work force that will allow for the development of innovative responses to the increased demand for cost-effective services; . the need to focus on developing an alternate framework of special revenues, user and franchise fees as alternate funding mechanisms to gradually reduce the City's reliance on tax levies by recovering service costs from the appropriate users ofthe service; . the recognition that the City should work to assist the community in meeting challenges as a partner and not as the sole provider; and . a stronger voice in the legislature to ensure that City issues are clearly understood and fairly addressed. Cities must take a unified approach in dealing with legislative initiatives that may negatively affect local governance to mIllImIze misunderstandings and encourage communication to facilitate common ground issues that build confidence in local government services and inspires a partnership of collaboration and innovation across all levels of government. The proposed budget is the product of the collective efforts of the management team and their respective staffs. They have worked diligently to ensure that the residents of Andover receive the highest level of service for their tax dollars. Special recognition is appropriate with respect to the involvement of Jim Dickinson, Director of Finance, Lee Brezinka, Assistant Finance Director and their staff in generating reliable financial data in which a sound and valid budget document was produced. ill addition, the entire management team should be recognized for their diligent efforts in preparing a budget that meets the needs of this growing community, yet recognizes the limited nature of financial resources. Accordingly, respective staff are to be commended for their hard work and cooperation in the process. I am appreciative of the commitment, good judgment and expertise that each member of the management team and their respective staffhave contributed to the budget process. Mayor, Councilmembers, Residents 2003 Proposed City Budget , Page 18 llJU:COO' J hn F. Erar ity Administrator \ League QI Minnesota Cities ities lIe tin Cities promoting cxceHence Number 24 August 21, 2002 Levy limit notices distributed Gary Car/son Late last week, the Dept. of Revenue mation from the Bureau of Economic years. For cities that have not needed sent levy limit notices to cities over Analysis indicates that the factor has their entire levy limit in preceding 2,500 population. For taxes levied this actually been adjusted even further years, this provision will provide some fall, there are 211 cities now covered downward since the Dept. of Revenue additional levy capacity over and by levy limits, up by three cities due received the statistic earlier this summer. above the three annual levy limit to population growth in Isanti and However, the Dept. of Revenue will adjustments described above. Pine Island and by the consolidation not make any further changes to the The levy limits do not cover the of the cities of Pleasant Lake, levy limits due to updates to the IPD entire city property tax levy. State law Rockville, and Rockville Township statistic. exempts certain "special" levies from into the new city ofRockville.With In addition to growth for inflation, the overal1levy limits. Special levies new populations of more than 2,500 cities are permitted to increase the include levies for bonded indebted- each, these cities will now be subject property tax levy limit based on two ness, certificates of indebtedness, to levy limits for the first time. other factors: one-half of the growth principal and interest on armory As expected, the levy limits will in market value of new construction bonds, payments for bonds of another be extremely tight for many cities this of commercial and industrial property local unit of government, levies to year. The main factor contributing to measured as a percent of the city's prepare for or respond to a natural the tight levy limits is the remarkably total market value, and the annual disaster, levies for economic develop- low inflation adjustment. Inflation in percentage growth in households as men! tax abatements, levies to repay a the levy limit formula is measured by estimated by the state demographer state or federal loan for a transporta- the implicit price deflator for govern- and the Metropolitan Council. These tion project, or other capital project ment consumption expenditures (IPD), two factors are intended to provide and levies to pay for the recent increase a statistic generated by the federal each city with some additional levy in the employer costs for Public Bureau of Economic Analysis. State authority increase based on growth in Employees Retirement Association statutes require that the IPD be the service demands caused by an (PERA) pension contributions (equal measured for the one-year period expanding tax base. to 0.35 percent of PERA-covered ending March 31, which for 2002 Again for levy limits imposed this payroll) . yields an inflation measure of 0.7618 year, each city's limit is based on the If you have any questions on your percent. preceding year's levy limit and not on city's levy limit, please feel free to The IPD is constantly being the actual property taxes levied by the contact Gary Carlson or Eric revised based on updated economic city. This structure allows a city to retain Willette at the League at (651) 281- information. The most recent infor- unused levy authority from preceding 1200 or (800) 925-1122. t' Mark your calendar for upcoming LMC conferences: . Clerks' Orientation Conference,August 27-29, St. Paul . 2002 Regional Meetings, Sept.-Nov., 12 locations throughout the state (see page 14 for details) For more infonnation or to register online anytime, visit www.lmnc.org