11. 1989 Proposed Budget t � �
CITYOF
., CHANHASSEN
, , I. i i
j 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
I (612) 937-1900
MEMORANDUM
ITO: Mayor and City Council Note: Please bring your
copy of the proposed
I FROM: Don Ashworth, City Manager 1989 Budget to the
meeting.
DATE: October 10 , 1988
ISUBJ: 1989 Budget
As stated during our budget worksession, the 1989 Budget is
I $57,000 out of balance. The Council asked staff to look at
various alternatives in an effort to correct the $57,000 short-
fall. The following represents this office' s recommendation as
to items which can be added/deleted in an effort to achieve the
Ibalanced budget:
Account Proposed
ICode Description Change
Revenue
I101-3001 Property Tax (Adjust proposed $42,000
taxes to current 26 . 67 mill levy
level)
I101-3011 Delinquent Property Tax (reduce $ 6 ,000
to current 4% level)
IExpenditures
101-113-4703 Office Equipment (move to building ( $ 2 ,000 . 00)
Iaccount)
101-121-4705 Other Equipment (move to City Hall ($ 2 ,000 . 00)
Iexpansion account)
101-126-4240 Uniforms and Clothing (reduce to ( $ 1,500 .00 )
I $1500)
101-131-4703 Office Equipment (reduce to $1,000) ( $ 1 ,000 .00 )
I 101-152-4340 Printing and Publishing (move Comp ( $ 2 ,500 .00 )
Plan to Administrative Trust)
ITotal $57,000 . 00
1
Mayor and City Council
October 10 , 1988
Page 2
The above modifications were, for the most part, discussed during
our worksession. Other questions raised by the Council regarding
expenditures in the 1989 budget represent errors in the commen-
tary
rather than errors in the detail expenditure. Therefore,
except for changing the commentaries, no change is proposed. The
one item I have circled, but not addressed above, is the cost of
physicals for firemen. I am attaching a copy of the proposal
from Waconia Hospital to establish baseline standards for each of
our firemen and thus insure that the City can initiate a program
of setting physical fitness standards while not creating a poten-
tial
liability for having demanded a standard which could create
physical harm to an individual fireman. The physical fitness
program, in combination with the new facilities being built,
could establish a unique means of combining fiscal facilities,
standards , and training.
I am also attaching a copy of the actuarial report for the pro- '
posed modification to fire relief benefits . As noted during our
worksession, the request from the Fire Relief Association is one
of providing increased benefits while still staying within
existing budgetary limits . Should the Council act to approve the
1989 Budget, which includes the proposed increase, the by-laws
for the Department will be modified and returned to the City
Council for final action.
At the end of the worksession, the Council discussed the poten-
tial of reducing the police contract from 24 hours to 21 . This
would have the effect of saving approximately $36,000 . This
office questions whether such is an option in light of the fact
that the contract requires any community in excess of 8,000 popu-
lation to have 24 hours of coverage. The most prudent means by
which this alternative could be explored is to adopt the budget
as recommended above. This recommendation provides the greatest
flexibility to the City, i .e. if the City is successful in
gaining approval of the County Board for a reduction in hours to
21, the Council could consider the addition of a fulltime CSO at
that point in time. By contrast, if we were to not approve the
changes noted above, the City could be in a position of being
$12,000 short if the County denied the request or if we decided
that 24 hour coverage was more effective than a CSO position.
Approval of the 1989 budget with the •correction shown above is
recommended.
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