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1. Continuation of Truth in Taxation Hearing -Adoption of 1998 Budget.1 �- CITY OF L 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 MEMORANDUM TO: Mayor and City Council FRONT: Don Ashworth, City Manager DATE: November 25, 1997 SUBJ: Truth in Taxation Hearing, 1998 Budget Tuesday evening is the official Truth in Taxation hearing date. The official notice will be published in the Villager this week and individual Truth in Taxation notices have been received by each property owner. With your permission, I would like to start the meeting stating that the Truth in Taxation notices are deceiving in that those numbers include the city's park referendum and that that represent" over 50 of the increase, with an additional 20% of the increase being attributable to reductions in state aid. These facts can be attested to by the fact that the balanced budget submitted to the city council two weeks ago represented an increase in propery taxes/. expenditures of approximately 6 %. To get to that level of controlled expense, many difficult cuts were made, i.e: • The street maintenance employee who was scheduled to come on line this year was dropped. He /she was scheduled to take on our 8` snowplowing route which has become necessary as a result of new growth. With our inability to fund that position, we will see an approximate 15% reduction in our snow plowing efficiency; and The improvement to the road at Lake Amu Park was eliminated. This may force all or part of that roadway into becoming gravel; and • We were also forced to eliminate. three other positions, warning sirens, equipment for the Recreation Center, and many other warranted expenses. After reviewing the manager's proposed 1998 budget, the city council acted to return the budget to city staff with instructions that the budget be cut further, hopefully, getting to the same expenditure level that occurred in 1997. Mayor and City Council November 26, 1997 Page 2 In an attempt to meet the city council's goal, city staff has identified an additional $115,500 in reductions by department (see attached listings): Public Safety $ 24,440 Public Works $ 21,300 Planning Dept. $ 22,500 Park & Recreation $ 34,560 Major items included in the proposed cuts is the elimination of the lifeguard program at Lake Ann; reducing our salt mixture from 5:1 to 7:1; elimination of the goose removal program; and. reduction of a half of 1% from proposed 1998 salaries. Two of the reduction items represent. "shifts " -- the Comprehensive Plan update (to Environmental Protection) and two copiers (to Vehicle /Equipment Replacement fund). I feel that the Comprehensive Plan shift is reasonable in that it does represent a one time work effort which had produced a spike in general fiend spending for 1998. However, as our Planning Director noted, planning typically carries out various studies. If Kate looks to completing any type of study in 1999, it will look as though she is requesting a huge increase. The net effect of the proposed reductions is S 115,000, which produces a spending level for 1998 approximately 3% higher than 1997. I am concerned that the proposed cuts have placed every department and virtually every line item at its lowest level. It is dangerous in that things happen. For example, we just lost the engine on the Pirsch pumper and its replacement cost is anticipated to be 58,000. I am comfortable that 1997 expenses will be kept less than the 1997 budget. However, I sincerely question whether that same statement can be made one year from today if the 1998 budget stays at 3% over 1997. I am sure the council will note that the proposed changes do not include reductions to programs such as our sealcoating program. An easy solution to drive the budget even lower would be to drop S 100,000 out of that program, which will virtually eliminate street maintenance for 1998. Worse is the fact that we will now have placed that program in jeopardy for 1999, 2000, etc. Before I would give up that program, I would have to strongly consider any one of the following cuts which staff in no way endorses making: • Cut electricity to rinks /tennis courts ($3,100) • Shut off residential street lights ($15,000) • Snowplow 7 a.m. to 4 p.m. weekdays only ($ 12,000). It should be noted that over 50% of the snowplowing crew takes compensatory time instead of overtime, tints reducing the full costs of overtime associated with snowplowing. • Snowplow 7 a.m. to 4 p.m. weekdays and weekends (58,000). At the conclusion of the Truth in Taxation hearing, a decision should be made as to whether agreement can be achieved as to the 1998 budget or whether a continued hearing is required. , 1 .J� l� CITY OE CHANHASSEN 1998 BUDGET ALLFUNDS ACCOUNT DESCRIPTION GENERAL FUND INTERNAL SERVICE FUND SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS ENTRPRS FUNDS HIST PRES TRUST FUND TAX INCR DISTRICT FUNDS G.O. DEBT SERVICE FUNDS 1998 TOTAL FUNDS GENERAL PROPERTY TAX 3001 Property Tax (Cert) 3,260,796 430,000 120,000 367,566 4,178,362 3002 Allowance for Delinquents (97,824) - (97,824) 3011 Delinquent Property Tax 114,128 114.128 3012 Tax Increment Receipts - 6,380,000 6,380,000 3041 Homestead Credit 841,286 841,286 70,000 3080 Franchise Fees 70,000 2,000 3090 Other Property Taxes GENERAL PROPERTY TAX 2,000 4,120,386 430,000 190,000 6,380,000 367,566 11,487,952 LICENSES 54,300 - - - 54,300 PERMITS 637,800 400,000 7,000 1,044,800 FINES & PENALTIES 31,500 - - 31,500 INTERGOVERNMENTAL REVENUE 41,800 77,000 - 118,800 CHARGES FOR CURRENT SERVICES 480,300 2,000 380,000 2,603,500 100 - 3,465,900 OTHER REVENUE 117,800 23,000 34,000 75,500 440,500 244,000 110,000 19,022 1,063,822 TOTAL REVENUE 5,483,886 453,000 303,000 855,500 3,051,000 244,100 6,490,000 386,588 17,267,074 PERSONAL SERVICES 3,199,633 - 110,000 244,200 634,200 201,000 175,800 - 4,564,833 MATERIALS & SUPPLIES 504,567 16,100 13,559 123,800 18,500 1,600 678,126 CONTRACTUAL SERVICES 2,043,798 - 169,130 94,588 2,104,900 56,800 166,010 4,635,226 CAPITAL OUTLAY 19,000 470,600 10,000 412,490 180,000 6,000 49,708 1,147,798 MISCELLANEOUS (405,911) - - 30,000 - 155,995 - (219,916) DEBT SERVICE - - - 300,723 - 1,661,300 427,980 2,390,003 TOTAL EXPENDITURES 5,361,087 470,600 305,230 794,837 3,343,623 438,295 2,054,418 427,980 13,196,070 REVENUE OVER /(UNDER) EXPENSE 122,799 (17,600) (2,230) 60,663 (292,623) (194,195) 4,435,582 (41,392) 4,071,004 FUND BALANCE FORWARD 1,840,764 472,510 884,792 863,505 3,575,833 2,054,935 99,815 431,269 10,223,423 BOND PROCEEDS - - - TRANSFER IN /(OUT) 65,000 (65,000) - (100,000) - (4,909,597) - (5,009,597) LESS REQUIRED RESERVE 1,963,563 519,910 817,562 796,936 3,183,210 1,860,740 (374,200) 389,877 9,157,598 TOTAL RESOURCES OVER /(UNDER) LIAR 127,232 - - - 127,232 CITY OF CHANHASSEN 1998 BUDGET REVENUE SUMMARY 101 General Fund 1997 1997 1998 ACCOUNT DESCRIPTION BUDGET RE- ESTIMATE BUDGET GENERAL PROPERTY TAX - )4,ODU 04,.5uu PERMITS 3001 Property Tax (Cert) 2,759,123 2,759,123 3,260,796 3002 Allowance for Delinquents (90,750) (90,750) (97,824) 3011 Delinquent Property Tax 100,700 100,700 114,128 3041 Homestead Credit 928,083 928,083 841,286 3090 Other Property Taxes 1,100 2,000 2,000 ' TOTAL GENERAL PROPERTY TAX 3,698,256 3,699,156 4,120,386 LICENSES 54,ZUU - )4,ODU 04,.5uu PERMITS 740,900 623,300 637,800 FINES & PENALTIES 28,000 34,000 31,500 INTERGOVERNMENTAL REVENUE 51,800 51,800 41,800 CHARGES FOR CURRENT SERVICES 527,600 499,900 480,300 OTHER REVENUE 118,000 165,400 117,800 ** TOTAL GENERAL FUND REVENUE 5,218,756 5,127,856 5,483,886 Revenues by Type InterGov't Fines &Othr Chrg Svc 1% Prmt &Lcns 3% 9% HACA 15° o 59% GENERAL GOVERNMENT PUBLIC SAFETY PUBLC WORKS PARKS & RECREATION COMMUNITY DEVELOPMENT *' TOTAL GENERAL FUND 3,199,633 504,567 2,043,798 Expenditures by Department 19,000 (405,911) 5,361,087 Corn Dev Gen Govt Park &Rec 4% 18% 20% _ t a k Pub Works Pub Safety 25% 33% Expenditures by Type Capital Contractual 0% 33% % ,x .��.tj 5, r��x �� k � � � f�j1rC �� ✓� Personal 52% Materials 8% Misc 7% CITY OF CHANHASSEN 1998 BUDGET GENERALFUND Personal Materials & Contractual Capital Services Supplies Services Outlay Misc. Total 407,000 54,269 596,973 1,500 (98,392) 961,350 1,119,000 83,687 669,409 13,000 (61,944) 1,823,152 797,700 223,400 494,650 4,500 (199,295) 1,320,955 664,933 140,561 261,366 - - 1,066,860 211,000 2,650 21,400 - (46,280) 188,770 *' TOTAL GENERAL FUND 3,199,633 504,567 2,043,798 Expenditures by Department 19,000 (405,911) 5,361,087 Corn Dev Gen Govt Park &Rec 4% 18% 20% _ t a k Pub Works Pub Safety 25% 33% Expenditures by Type Capital Contractual 0% 33% % ,x .��.tj 5, r��x �� k � � � f�j1rC �� ✓� Personal 52% Materials 8% Misc 7% CITY OF CHANHASSEN 1998 BUDGET GENERAL GOVERNMENT 111 Legislative 112 Administration 113 Finance 114 Legal 115 Property Assessment 116 M.I.S. 117 City Hall 118 Elections 148,324 TOTAL PUBLIC SAFETY 121 Police Administration 122 Fire Prevention Administration 123 Public Safety Commission 125 Code Enforcement 126 Animal Control TOTAL PUBLIC WORKS 131 Engineering 132 Street Maintenance 135 Street Lighting & Signals 137 City Garage 145 TOTAL PARKS & RECREATION 141 Park & Rec Commission 142 Park & Rec Administration 143 Recreation Center 144 Senior Center Operation 145 Recreation Programs 146 Self- Supporting Programs 147 Lake Ann Park Operations 148 Park Maintenance 148,324 TOTAL COMMUNITY DEVELOPMENT 151 Planning Commission 152 Planning Administration 153 Senior Facility Commission TOTAL Personal Materials & Contractual Services Supplies Services Capital Outlay Misc. Total 27,400 1,045 124,285 - - 152,730 198,900 24,800 54,130 1,000 (61,286) 217,544 128,300 5,330 51,800 - (37,106) 148,324 - - 85,500 - - 85,500 22,300 3,075 64,300 - - 64,300 30,800 5,444 2,908 - - 39,152 - 14,650 197,550 500 - 212,700 21,600 3,000 16,500 - - 41,100 407,000 54,269 596,973 1,500 (98,392) 961,350 235,900 10,590 535,744 1,000 (45,501) 737,733 163,000 38,644 90,970 5,500 (16,443) 281,671 - 700 1,775 2,475 651,100 21,888 26,370 5,500 - 704,858 69,000 11,865 14,550 1,000 - 96,415 1,119,000 83,687 669,409 13,000 (61,944) 1,823,152 99,800 7,200 12,600 485,100 203,250 210,150 - 2,200 227,100 212,800 10,750 44,800 797,700 223,400 494,650 - 275 1,700 64,500 2,100 5,550 188,700 14,500 68,000 22,300 3,075 4,000 86,958 16,290 59,265 25,100 11,926 23,656 9,575 10,395 17,195 267,800 82,000 82,000 664,933 140,561 261,366 - 200 5,300 191,900 2,150 14,500 19,100 300 1,600 211,000 2,650 21,400 500 (43,300) 76,800 3,500 (121,600) 780,400 - (34,395) 194,905 500 - 268,850 4,500 (199,295) 1,320,955 1,975 72,150 271,200 - 29,375 - 162,513 - - 60,682 - - 37,165 - 431,800 - - 1,066,860 5,500 (46,280) 162,270 _ - 21,000 (46,280) 188,770 ** TOTAL GENERAL FUND 3,199,633 504,567 2,043,798 19,000 (405,911) 5,361,087 CITY OF CHANHASSEN 1997 BUDGET ALL FUNDS re- estimate ACCOUNT DESCRIPTION GENERAL FUND INTERNAL SERVICE FUND SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS ENTRPRS FUNDS HIST PRES TRUST FUND TAX INCR DISTRICT FUNDS G.O. DEBT SERVICE FUNDS 1997 TOTAL FUNDS GENERAL PROPERTY TAX 3001 Property Tax (Cert) 2,759,123 420,000 120,000 343,300 3,642,423 3002 Allowance for Delinquents (90,750) - - - (90,750) 3011 Delinquent Property Tax 100,700 - 100,700 3012 Tax Increment Receipts - 6,680,000 6,680,000 3041 Homestead Credit 928,083 - - 928,083 3080 Franchise Fees - 65,000 65,000 3090 Other Property Taxes 2,000 - - - 2,000 ' GENERAL PROPERTY TAX 3,699,156 420,000 185,000 6,680,000 343,300 11,327,456 LICENSES 54,300 - - - - 54,300 PERMITS 623,300 450,000 7,000 1,080,300 FINES & PENALTIES 34,000 - - 34,000 INTERGOVERNMENTAL REVENUE 51,800 74,000 - 125,800 CHARGES FOR CURRENT SERVICES 499,900 4,500 380,000 2,525,000 100 - - 3,409,500 OTHER REVENUE 165,400 23,000 30,300 36,000 438,000 318,000 110,000 20,695 1,141,395 TOTAL REVENUE 5,127,856 443,000 293,800 866,000 2,970,000 318,100 6,790,000 363,995 17,172,751 PERSONAL SERVICES 3,051,703 - 80,500 194,100 570,600 186,300 199,500 - 4,282,703 MATERIALS & SUPPLIES 482,648 9,505 126,100 20,500 1,600 640,353 CONTRACTUAL SERVICES 1,988,282 - 133,050 177,600 2,049,800 36,050 192,251 4,577,033 CAPITAL OUTLAY 77,243 493,000 20,000 273,000 300,300 13,767 50,768 1,228,078 MISCELLANEOUS (416,225) - - 90,000 - 168,890 - (157,335) DEBT SERVICE - - - - 176,650 - 2,061,353 409,450 2,647,453 " TOTAL EXPENDITURES 5,183,651 493,000 243,055 734,700 3,223,450 425,507 2,505,472 409,450 13,218,285 REVENUE OVER /(UNDER) EXPENSE (55,795) (50,000) 50,745 131,300 (253,450) (107,407) 4,284,528 (45,455) 3,954,466 FUND BALANCE FORWARD 1,976,075 462,510 834,047 957,205 3,924,283 2,162,342 823,733 476,723 11,616,918 BOND PROCEEDS - - - - - - - TRANSFER IN /(OUT) - 60,000 - - (95,000) - (5,008,446) - (5,043,446) LESS REQUIRED RESERVE 1,920,280 472,510 884,792 673,573 3,575,833 2,054,935 99,815 431,268 10,113,006 TOTAL RESOURCES OVER /(UNDER) LIAB - - - 414,932 - - - - 414,932 Expenditures by Department CITY OF CHANHASSEN 1997 BUDGET GENERAL FUND re- estimate Personal Materials & Contractual Capital Services Supplies Services Outlay Misc. Total GENERAL GOVERNMENT 401,330 45,456 553,432 14,434 (101,782) 912,870 PUBLIC SAFETY 1,063,432 81,760 660,895 20,409 (53,303) 1,773,193 PUBLC WORKS 762,200 221,650 491,610 24,100 (212,940) 1,286,620 PARKS & RECREATION 613,741 131,007 253,595 17,300 - 1,015,643 COMMUNITY DEVELOPMENT 211,000 2,775 28,750 1,000 (48,200) 195,325 *' TOTAL GENERAL FUND 482,648 1,988,282 (416,225) 3,051,703 77,243 5,183,651 Expenditures by Department GENERAL GOVERNMENT 111 Legislative 112 Administration 113 Finance 114 Legal 115 Property Assessment 116 M.I.S. 117 City Hall 118 Elections Contractual TOTAL PUBLIC SAFETY 121 Police Administration 122 Fire Prevention Administration 123 Public Safety Commission 125 Code Enforcement 126 Animal Control 146 TOTAL PUBLC WORKS 131 Engineering 132 Street Maintenance 135 Street Lighting & Signals 137 City Garage 145 TOTAL PARKS & RECREATION 141 Park & Rec Commission 142 Park & Rec Administration 143 Recreation Center 144 Senior Center Operation 145 Recreation Programs 146 Self- Supporting Programs 147 Lake Ann Park Operations 148 Park Maintenance Contractual TOTAL COMMUNITY DEVELOPMENT 151 Planning Commission 152 Planning Administration 153 Senior Facility Commission TOTAL - 100 CITY OF CHANHASSEN 192,000 2,350 23,200 19,000 325 1,400 1997 BUDGET 28,750 re- estimate Personal Materials & Contractual Capital Services Supplies Services Outlay Misc. Total 27,400 1,020 121,135 - - 149,555 217,300 24,106 53,730 7,134 (61,556) 240,714 119,300 5,330 49,500 6,800 (40,226) 140,704 - - 83,000 - - 83,000 - - 58,000 - - 58,000 31,930 - - - - 31,930 - 14,300 186,567 500 - 201,367 5,400 700 1,500 - - 7,600 401,330 45,456 553,432 14,434 (101,782) 912,870 201,700 10,042 519,352 1,000 (37,614) 694,480 158,092 39,500 88,600 12,409 (15,689) 282,912 - 700 1,675 - - 2,375 613,940 19,850 27,300 5,000 - 666,090 89,700 11,668 23,968 2,000 - 127,336 1,063,432 81,760 660,895 20,409 (53,303) 1,773,193 147,500 7,050 12,300 5,500 (44,050) 128,300 437,600 201,750 219,000 9,400 (126,030) 741,720 - 2,200 217,100 - (42,860) 176,440 177,100 10,650 43,210 9,200 - 240,160 762,200 221,650 491,610 24,100 (212,940) 1,286,620 - 250 1,717 - - 1,967 59,400 2,030 8,756 - - 70,186 176,200 21 ,584 59,716 - - 257,500 30,100 2,710 3,336 - - 36,146 84,474 12,842 51,336 - - 148,652 22,467 5,932 12,150 - - 40,549 14,500 10,159 38,734 - - 63,393 226,600 75,500 77,850 17,300 - 397,250 613,741 131,007 253,595 17,300 - 1,015,643 - 100 4,150 192,000 2,350 23,200 19,000 325 1,400 211,000 2,775 28,750 1,000 1,000 4,250 (48,200) 170,350 20,725 (48,200) 195,325 TOTAL GENERAL FUND 3,051,703 482,648 1,988,282 77,243 (416,225) 5,183,651