4. 1997 Budget.CITY OF q
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: November 1, 1996
SUBJ: 1997 Budget
Pam and I spent a good portion of the past two weeks meeting with department heads to see what
could be cut from the 1997 Budget as well as to review revenue sources. I wish to sincerely
thank them for their cooperation. Cuts that we agreed to are shown in the enclosures. As the city
council will note, approximately $800,000 was cut, but we're still short approximately $150,000
to reach a balanced budget. Pam and I believe we have identified approximately $75,000, with
the final $75,000 or more assuredly being found prior to the Truth in Taxation hearing
(December 4). I know that some would like to see the budget cut even more, but that will
assuredly mean that programs /functions /activities carried out in 1996 will no longer be
accomplished in 1997. The following represents policy decisions as to services to potentially
eliminate in 1997:
• Subscriptions and Memberships: Approximately half of the total for subscriptions and
memberships ($34,000) is included in the council's budget, i.e. League of Minnesota Cities —
LMC ($7,000), AMM ($1,000), National League of Cities —NLC ($800), etc. The LMC is
the carrier for our workers compensation. They were nearly $5,000 less than other insurers.
Cutting the $7,000 appears illogical in that we will turn around and pay an additional $5,000
for insurance and at the same time lose the two groups (AMM being the other) to protect
Chanhassen against further cuts in state aid, Orfield legislation, etc. Dropping the NLC does
imply that travel would also be cut (an approximate $10,000 item). The NLC conference in
1997 will be held in Philadelphia.
Legal: Approximately $10,000 could be saved by not having the city attorney attend city
council meetings.
• Code Enforcement: As revenues currently exceed expense, further cuts in this area only
places us in jeopardy in regards to state law, i.e. permit and license fees can only produce
dollars needed to pay for the regulated activity.
Mayor and City Council
November 1, 1996
Page 2
• Public Works: Cutting or reducing items such as snowplowing does not provide the types of
cost savings needed. For 1997, we now have 14 snowplow routes. To cover all of those
routes, park employees are moved to the street department and public works is counting on
the additional man currently included in the budget. No employee has been added since 1994
and with the 20% to 25% increase in street mileage (property valuation doubles that figure
recognizing that for every 100 feet of street distance you are plowing snow for 2 houses). In
1997, we should have put two men on and, accordingly, we will be doing less plowing,
sanding, crack sealing, than we did in 1994, or we will spend more for overtime.
• Street Lighting and Signals: $10,000 could be saved by turning off the 520 residential
street lights around the community. I sincerely believe that the city council will get
significant feedback if this option is chosen.
As stated above, additional cuts at this point mean deleting a function, i.e. deleting the senior
center operation saves $27,000. In looking at further cuts, we need to take into account the
revenue side of that item. Hopefully we can discuss these further Monday evening.
gAmgr \budgetcuts.e
1997
GENERAL FUND
BUDGET REQUESTS
November 4, 1996
CITY OF CHANHASSEN
1997 BUDGET
PUBLIC SAFETY
121
Police Administration
Personal
Materials &
Contractual
Capital
(37,614)
695,674
122
Fire Prevention Administration
Services
Supplies
Services
Outlay
Misc.
Total
GENERAL GOVERNMENT
Public Safety Commission
0
700
1,675
137 City Garage
0
111
Legislative
28,500
900
120,975
26,420
0
150,375
112
Administration
218,400
23,350
54,230
5,800
(61,556)
240,224
113
Finance
132,400
5,330
56,600
6,800
(40,226)
160,904
114
Legal
Lake Ann Park Operations
19,900
83,000
39,885
83,000
115
Property Assessment
Park Maintenance
227,700
76,050
90,850
17,300
76,050
116
M.I.S.
26,800
632,575
0
279,610
17,300
26,800
117
City Hall
12,900
182,950
500
0
196,350
118
Elections
5,400
700
1,650
0
0
7,750
152
TOTAL
411,500
43,180
575,455
13,100
(101,782)
941,453
PUBLIC SAFETY
121
Police Administration
202,900
9,900
519,488
1,000
(37,614)
695,674
122
Fire Prevention Administration
160,025
39,140
88,250
12,409
(15,689)
284,135
123
Public Safety Commission
0
700
1,675
137 City Garage
0
2,375
125
Code Enforcement
626,980
19,850
26,420
5,000
0
678,250
126
Animal Control
89,700
11,400
20,450
2,000
0
123,550
146
TOTAL
1,079,605
80,990
656,283
20,409
(53,303)
1,783,984
PUBLIC WORKS
131 Engineering
195,400
7,050
12,300
5,500
(44,050)
176,200
132 Street Maintenance
436,000
179,750
205,450
9,400
(126,030)
704,570
135 Street Lighting & Signals
72,150
2,200
212,100
185,200
(42,860)
171,440
137 City Garage
176,900
9,650
43,200
9,200
0
238,950
TOTAL
808,300
198,650
473,050
24,100
(212,940)
1,291,160
PARKS & RECREATION
141
Park & Rec Commission
275
1,800
0
2,075
142
Park & Rec Administration
59,500
2,200
10,450
0
0
72,150
143
Recreation Center
185,200
14,500
57,800
0
0
257,500
144
Senior Center Operation
20,100
3,075
4,125
0
27,300
145
Recreation Programs
92,275
17,005
59,200
0
168,480
146
Self- Supporting Programs
27,900
13,010
15,500
0
56,410
147
Lake Ann Park Operations
19,900
11,020
39,885
0
70,805
148
Park Maintenance
227,700
73,000
90,850
17,300
0
408,850
TOTAL
632,575
134,085
279,610
17,300
0
1,063,570
COMMUNITY DEVELOPMENT
151
Planning Commission
200
5,550
5,750
152
Planning Administration
201,600
2,400
36,000
1,000
(48,200)
192,800
153
Senior Facility Commission
19,000
1,050
2,200
0
22,250
TOTAL
220,600
3,650
43,750
1,000
(48,200)
220,800
'"'
TOTAL GENERAL FUND
3,152,580
460,555
2,028,148
75,909
(416,225)
5,300,967
CITY OF CHANHASSEN
1996 BUDGET
REVENUE SUMMARY
101 General Fund
1996 1996 1997
ACCOUNT DESCRIPTION BUDGET RE- ESTIMATE BUDGET
GENERAL
PROPERTY TAX
0
824,900
763,900
3001
Property Tax (Cert)
2,363,150
2,363,150
2,702,811
3002
Allowance for Delinquents
(80,347)
(80,347)
(90,750)
3011
Delinquent Property Tax
89,800
89,800
100,700
3041
Homestead Credit
939,443
939,443
928,083
3090
Other Property Taxes
1,100
1,100
1,100
*
TOTAL rPMPRAI PPOPFRTY TAX
3.313.146
3.313.146
3,641,944
LICENSES
PERMITS
FINES & PENALTIES
INTERGOVERNMENTAL REVENUE
CHARGES FOR CURRENT SERVICES
OTHER REVENUE
41,WU
54,4uv
0
824,900
763,900
740,900
14,500
27,500
28,000
51,000
51,800
41,800
532,100
517,600
527,600
116,500
118,500
118,000
** TOTAL GENERAL FUND REVENUE 4,894,946 4,846,646 5,152,444
'J
r
1997 GENERAL FUND
PROPOSED BUDGET CUTS /REDISTRIBUTION
10/21/96 Revenues vs. Expenses (975,767)
Outdoor Warning Sirens 150,000
Overlay of Pleasant View Road 125,000
1
Road & parking lot reconstruction
150,000
@ Lake Ann Community Park
Redistribute excess revenue from
109,971
Debt Service funds
GIS Revenue
10,000
Additional Attributable Distribution
89,993
Workers' Compensation Insurance Rate
12,000
Adjustment
Administration Intern moved to 460
6,000
1/2 of MIS Coordinator moved to 460
26,800
111.4360
1,000
111.4370
1,000
116.4300
50,000
118.4020
2,500
118.4030
400
118.4300
4,000
121.4300
15,000
121.4130
500
122.4240
2,000
122.4370
7,970
122.4705
4,000
125.4110
250
125.4120
600
125.4705
1,000
126.4110
100
126.4130
100
126.4240
250
126.4340
100
132.4120
5,000
151.4360 500
Additional cuts by Park & Recreation 51,210
Detail to be submitted
827,244 (975,767)
11/04/96 Revenues vs. Expenses (148,523)