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2009 Budget2009 Annual Budget City of Chanhassen, MN Adopted December 8, 2008 Thomas A. Furlong, Mayor Council Members Bryan Litsey Bethany Tjornhom Jerry McDonald Vicki Ernst Todd Gerhardt, City Manager Greg Sticha, Finance Director CITY OF CHANHASSEN 2009 BUDGET Table of Contents Authorizing Resolution..................................................................................... 1 Tax Levy Chart ........ ............. ......................... ......... ........ .... ....... .... ..... .............2 General Fund Expenditures.............................................................................3 General Fund Revenues.................................................................................. 4 General Government Legislative............................................................................................ .6 Administration...................................................................................... .8 Finance............................................................................................... 1 0 Legal................................................................................................... 12 Property Assessment.......................................................................... 14 Management Information Services (MIS) ................. ...........................16 City Hall............................................................................................... 18 Elections ............................................................................................. 20 Library............... ."................................................................................ .22 Public Safety Police Administration......................................................................... ..24 Fire Prevention and Administration................................................... .. 26 Code Enforcement ............................................................................. .28 Community Service............................................................................ .30 Public Works Engineering......................................................................................... 32 Street Maintenance............................................................................ .34 Street Lighting................................................................................... ..36 City Garage......................................................................................... 38 Community Development Planning Commission........................................................................ .40 Planning Administration......................................................................42 Senior Facility Commission................................................................. 44 Parks & Recreation Parks & Recreation Commission....................... ............ .............. ........46 Parks & Recreation Administration................. ... .......... ...................... ..48 Recreation Center............................................................................... 50 Lake Ann Park Operations.................................................................. 52 Park Maintenance ...... ......................... .............. .......... ..... ....... ........... .54 Senior Citizens Center...................... ................................................. . 56 Recreation Programs......................................................................... .58 Self-Supporting Programs................................................................... 60 CITY OF CHANHASSEN 2009 BUDGET Table of Contents (Continued) Special Revenue Funds.... .......... .... .............. ............. .......... ........ ............. .....63 100/0 Fund............................................................................................ 64 Cable TV Fund................................................................................... . 66 Enterprise Funds..................................................................................... ......69 Water Utility Fund..................... ............... .... ........................................ 70 Sewer Utility Fund............................................................................... 74 Surface Water Management Fund...................................................... 78 Appendix Public Expenditure Policy............................................................................. .87 Purchasing Policy.......................................................................................... 91 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE:December 8. 2008 RESOLUTION NO:2008-69 MOTION BY:McDonald SECONDED BY:Tiornhom A RESOLUTION ADOPTING THE 2009 BUDGET AND ESTABLISHING TAX LEVIES FOR 2008, COLLECTIBLE IN 2009 WHEREAS, the City Council has examined the budgetary and tax levy needs for Chanhassen for the calendar year 2009 through detailed public budget meetings; and WHEREAS, the Truth in Taxation meeting was held to receive public input into the budget and tax levy for 2009; NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Chanhassen that the 2009 Budget for the City of Chanhassen is adopted with revenue and expenditure amounts for the General Fund of $9,859,100, Special Revenue Funds of $17,500, and $95,700 respectively which are detailed in the 2009 Budget which is made part of this motion by reference; and BE IT FURTHER RESOLVED that the City Council of the City of Chanhassen adopts a tax levy of $824,000 for the purpose of equipment upgrades and purchases for 2009; and BE IT FURTHER RESOLVED that the City Coun~il of the City of Chanhassen determines that certain bonded indebtedness levies are hereby adopted to meet statutory requirements and bond covenants and that the County Auditor is hereby authorized to spread the adopted bonded debt levies as shown on the attached Tax Levy Certification document; and BE IT FURTHER RESOLVED that the City of Chanhassen authorizes the County Auditor to levy the amounts shown on the attached Tax Levy Certification document upon taxable property in the City of Chanhassen in 2008 for collection in 2009, as set forth in the attached Tax Levy Certification document. Passed and adopted by the Chanhassen City Council this 8th day of December, 2008. JJA At YES NO ABSENT Furlong Litsey McDonald Tjornhom Ernst None 1 CITY OF CHANHASSEN (DECEMBER) TAX LEVY 2009 Budget General Fund Capital Replacement Fund (for equipment) Pavement Mgmt Fund (Sealcoating) GeneralObligation.Debt General Obligation Debt (212 Bonds) Local Street Improvements Debt of Other Agencies (EDA) TOTAL TAX CAPACITY BASED TAX LEVIES 2008 2009 Percent Levy Levy Increase 6,833,900 $7,173,500 4.97% 824,000 824,000 0.00% 267,875 267,875 0.00% 484,873 297,900 -38.56% 285,000 285,000 0.00% 100,000 0 0.00% 122,703 122,603 -0.08% 8,918,351 8,970,878 0.59% TAX CAPACITY BASED TAX LEVY MARKET VALUE TAX LEVY Park Referendum Library Referendum TOTAL MARKET VALUE TAX LEVY 695,900 490,700 1,186,600 269,986) 972,700 491 ,300 1,464,000 360,313) 39.78% 0.12% 23.38% Use of cash reserves to buy down debt & street levy TOTAL TAX LEVY 9,834,965 10,074,565 239,600 2.44% Dollar Increase 2 GENERAL GOVERNMENT 1110 Legislative 1120 Administration 1130 Finance 1140 Legal 1150 Assessing 1160 MIS 1170 City Hall 1180 Elections 1190 Library Building TOTAL LAW ENFORCEMENT 1210 Law Enforcement 1220 Fire 1250 Building Inspection 1260 CSO TOTAL PUBLIC WORKS 1310 Engineering 1320 Street Maintenance 1350 Street Lighting 1370 Vehicle Maintenance TOTAL COMMUNITY DEVELOPMENT 1410 Planning Commission 1420 Planning Administration 1430 Senior Commission TOTAL PARKS & RECREATION 1510 Park & Rec. Commission 1520 Park Administration 1530 Recreation Center 1540 Lake Ann 1550 Park Maintenance 1560 Senior Center 1600 Recreation Programs 1700 Self-Supporting Programs TOTAL Total Operational Expenditures Transfer for Roads TOTAL GENERAL FUND CITY OF CHANHASSEN 2009 BUDGET Expenditures Personal Materials & Contractual Capital 2009 2008 % Services Supplies Services Outlay Total Total Change 34,200 200 88,500 - 122,900 134,900 -8.90% 396,600 500 65,000 - 462,100 434,900 6.25% 225,500 200 64,700 200 290,600 302,600 -3.97% 168,000 - 168,000 168,000 0.00% 110,000 - 110,000 101,600 8.27% 171,700 2,400 125,100 - 299,200 285,300 4.87% 70,500 48,300 301,300 - 420,100 392,800 6.95% 21,500 - 6,400 - 27,900 27,900 0.00% 3,000 134,200 - 137,200 110,200 24.50% 920,000 54,600 1,063,200 200 2,038,000 1,958,200 4.08% 78,200 - 1,546,900 - 1,625,100 1,502,100 8.19% 512,100 47,100 116,000 - 675,200 673,600 0.24% 681,100 6,100 33,900 - 721,100 690,900 4.37% 56,000 5,000 13,700 - 74,700 73,000 2.33% 1 ,327,400 58,200 1,710,500 - 3,096,100 2,939,600 5.32% 530,100 1,300 31,800 300 563,500 537,600 4.82% 633,800 131,600 34,400 1,300 801,100 767,500 4.38% 5,000 323,400 - 328,400 319,900 2.66% 255,100 220,400 53,000 6,000 534,500 444,600 20.22% 1,419,000 358,300 442,600 7,600 2,22/,500 2,069,600 7.63% 200 4,000 - 4,200 4,200 0.00% 388,700 700 14,100 - 403,500 382,600 5.46% 22,100 - 15,700 - 37,800 35,300 7.08% 410,800 900 33,800 - 445,500 422,100 5.54% 200 2,000 - 2,200 2,200 0.00% 124,000 1,000 10,600 - 135,600 129,100 5.03% 227,100 11,500 77 ,000 - 315,600 301,200 4.78% 13,400 9,500 57,400 - 80,300 74,300 8.08% 701,100 81,300 94,500 4,000 880,900 834,800 5.52% 44,200 4,500 20,600 - 69,300 60,700 14.17% 177,600 19,100 93,800 - 290,500 276,400 5.10% 28,600 7,700 49,300 - 85,600 100,100 -14.49% 1,316,000 134,800 405,200 4,000 1,860,000 1,778,800 4.56% 5,393,200 606,800 3,655,300 11,800 9,667,100 9,168,300 5.44% 192,000 150,000 9,859,100 9,318,300 5.80% 3 CITY OF CHANHASSEN 2009 BUDGET REVENUE 101 General Fund 2007 2008 2008 2009 Inc Over ACCOUNT DESCRIPTION ACTUAL BUDGET PROJECTED BUDGET PY Budget GENERAL PROPERTY TAX 3010 Current Property Tax 6,284,318 6,833,900 6,833,900 7,173,500 5.0% 3002 Allowance for Delinquent Taxes (320,000) (270,000) (270,000) 3011 Delinquent Property Tax 101,113 50,000 100,000 100,000 3041 MVHC 162,052 120,000 3090 Other Property Taxes 3500 Local Government Aid TOTAL GENERAL PROPERTY TAX 6,547,483 6,563,900 6,783,900 7,003,500 6.7% LICENSES 3203 Dog Kennel 897 500 500 800 3205 Dog or Cat 6,598 5,000 5,000 6,000 3213 Solicitor 375 500 500 500 3226 Liquor On and Off Sale 84,930 84,000 84,000 84,000 3230 Rental Housing Licenses 34,100 15,000 15,000 30,000 3284 Rubbish 5,100 3,000 3,000 5,000 TOTAL LICENSES 132,000 108,000 108,000 126,300 16.9% PERMITS 3301 Building 734,822 725,000 725,000 725,000 3302 Plan Check 408,063 330,000 330,000 330,000 3305 Heating & AlC 202,748 120,000 120,000 120,000 3306 Plumbing 139,729 95,000 95,000 95,000 3307 Trenching 26,126 35,000 35,000 30,000 3308 Gun 660 1,000 1,000 1,000 3309 Sprinkler 19,718 14,000 14,000 14,000 3311 Sign 8,850 7,500 7,500 7,500 3320 Stable 190 300 300 300 3330 Elec Permit App Forms 36 3331 Firework's Application Fee 400 3390 Misc. Permits 1,865 2,000 2,000 2,000 TOTAL PERMITS 1,543,207 1,329,800 1,329,800 1,324,800 -0.4% FINES & PENALTIES 3401 Traffic & Ordinance Violation 133,391 150,000 150,000 150,000 3402 Vehicle Lockouts 2,100 2,500 2,500 2,500 3404 Dog/Cat Impound 6,080 5,000 5,000 6,000 3405 Other Fines and Penalties 4,111 TOTAL FINES & PENALTIES 145,682 157,500 157,500 158,500 0.6% INTERGOVERNMENTAL REVENUE 3503 Reimbursement from School District 25,000 3509 Other Shared Taxes 155,661 175,000 175,000 160,000 3510 Grants-State 85,970 50,000 50,000 80,000 TOTAL INTERGOVERNMENTAL REV 241,630 225,000 225,000 265,000 17.8% 4 CITY OF CHANHASSEN 2009 BUDGET REVENUE 101 General Fund 2007 2008 2008 2009 Inc Over ACCOUNT DESCRIPTION ACTUAL BUDGET PROJECTED BUDGET PY Budget CHARGES FOR CURRENT SERVICES 3601 Sale of Documents 744 1,000 1,000 1,000 3602 Use & Variance Permits 22,715 40,000 40,000 22,000 3603 Rezoning Fees 2,000 2,000 2,000 3604 Assessment Searches 855 500 500 500 3605 Plat Recording Fees 5,225 7,000 7,000 7,000 3607 Election Filing Fees 3613 Misc.-General Government 4,909 10,000 10,000 5,000 3614 Admin. Charge-2% Constr. 21,110 50,000 50,000 25,000 3615 Admin. Charge-5% Street Re-Constr. 32,000 32,000 24,000 3617 Engineering General 15 1,000 1,000 3619 Investment Management Fee 75,000 75,000 75,000 75,000 3629 Misc.-Public Safety 6,129 5,000 5,000 6,000 3630 Recreation Program Fees 30,807 38,100 38,100 40,000 3631 Recreation Center 129,830 180,000 180,000 196,000 3633 Park Equipment Rental 97 200 200 200 3634 Park Facility Usage Fee 9,578 12,000 12,000 14,000 3635 Watercraft Rental 3,446 4,000 4,000 4,000 3636 Self-Supporting Programs 153,615 114,000 114,000 105,000 3637 Senior Programs 28,862 30,000 30,000 28,000 3638 Food Concessions 13,715 12,000 12,000 12,000 3639 Misc.-Park & Rec. 900 800 800 800 3641 Youth Sport Donation 3649 Misc.-Public Works 2,700 5,000 5,000 5,000 3651 Merchandise Sales 953 1,500 1,500 1,500 3670 Internment Fee 150 TOTAL CURRENT SERVICES 511,355 621,100 621,100 574,000 -7.6% OTHER REVENUE 3801 Interest Earnings 250,462 125,000 125,000 200,000 3802 Equipment Rental & Sale 134,152 125,000 125,000 135,000 3803 Building Rental 4,64.3 4,000 3804 Land Sale 4,600 3807 Donations 22,761 20,000 20,000 20,500 3808 Ins. Recoveries & Reimburse 5,000 5,000 5,000 3812 Contractor Verification 5 3816 SAC Retainer 160,546 5,000 5,000 5,000 3818 Sur-Tax Retainer 1,137 1,500 1,500 1,000 3820 Misc. Other Revenue 180 1,000 1,000 1,000 3829 Interest/Penalties-Other 500 500 500 3903 Refunds/Reimbursements 39,248 30,000 30,000 35,000 3910 Misc. Revenue 583 3980 Cash Short/Over 3 TOTAL OTHER REVENUE 618,320 313,000 313,000 407,000 30.0% TOTAL GENERAL FUND REVENUE 9,739,678 9,318,300 9,538,300 9,859,100 5.8%. TOTAL GENERAL FUND EXPENDITURES 9,859,100 NET LEVY REMAINING (Use of Gen Fund Reserves) 5 CITY OF CHANHA55EN 2009 BUDGET Commentary General Government - Legislative Mission and Current Services The City Council, comprised of the mayor and four at-large Council representatives, is the legislative body of city government. Chanhassen is a statutory Plan B city, which is a Council/Manager form of government. The Council is responsible for formulating City policy, enacting legislation, and oversight of City administration. The Council also has authority over the financial affairs of the City, including appropriating money through the annual adoption of the City budget and property tax levy. The City Council appoints members to various boards and commissions such as the Economic Development Authority, Planning Commission, Park and Recreation Commission, and other advisory groups. Budget Highlights The 2009 budget reflects a decrease of $12,000 (8.9%). Decreases were achieved largely through the elimination of the quarterly publication, the Maple Leaf. The biannual Citizen Survey was also postponed to achieve cost savings. Future Trends The Council continues to pursue excellence in building community and enhancing citizen participation through neighborhood meetings, public forums, and other methods. Outcomes The legislative budget is mainly comprised of four major expenses: Salaries, reimbursements, travel, and training for the City Council Printing and distribution of the Chanhassen Connection Membership in the League of Minnesota Cities (LMNC), which provides research, advocacy, and access to the Workers Compensation Insurance Pool Publication of ordinances and agenda 6 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1110 Legislative 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4020 Salaries & Wages-Temp 30,550 31,600 31,600 0.0% 4030 Contributions-Retirement 2,170 2,500 2,500 0.0% 4050 Workers Compensation 86 100 100 0.0% TOTAL PERSONAL SERVICES 32,807 34,200 34,200 0.0% 4210 Books & Periodicals 200 200 0.0% TOTAL MATERIALS & SUPPLIES 200 200 0.0% 4300 Fees, Services 16,069 8,000 4,000 (50.0%) 4330 Postage 5,984 6,500 6,500 0.0% 4340 Printing & Publishing 46,079 47,000 38,000 (19.1%) 4360 Subscriptions & Memberships 27,174 29,000 30,000 3.4% 4370 Travel & Training 8,608 8,000 8,000 0.0% 4375 Promotional Expense 3,980 2,000 2,000 0.0% TOTAL CONTRACTUAL SERVICES 107,893 100,500 88,500 (11.9%) TOTAL LEGISLATIVE 140,700 134,900 122,900 (8.9%) 7 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - Administration Mission and Current Services The City Manager is the chief administrative officer of the City and directs the administration of City affairs. It is the City Manager's responsibility to enforce the city code and resolutions adopted by the City Council. The City Manager's office provides general administrative services for the City to ensure that Council policies and directives are fulfilled. Duties also include keeping the Council fully advised of the financial condition and the needs of the City, preparing and submitting the annual budget, and recommending measures to the Council deemed necessary and/or desirable for the welfare of the community and the efficient administration of the City's affairs. The City Manager's office also provides liaison between the Council, advisory boards and commissions, staff, other governmental entities, the media, and the public. The Administration Department oversees progress toward meeting City goals in the areas of responsive government, safe community, lifelong learning, housing, business, and community connections in collaboration with the school districts, chamber of commerce, and other community organizations. Budget Highlights The 2009 budget reflects an increase of $27,200 (6.3%) from the 2008 budget. Increases are related to salaries and benefits. Future Trends Administration will continue to supervise the implementation of the City's strategic plan and monitor progress toward its goals. Outcomes The majority of expenses in the Administration Department are for personnel costs. The Administration budget includes the City Manager, Assistant City Manager, Office Manager and two (2) Receptionists. Staff specifically provides support for the City Council and City Manager by producing the Chanhassen Connection, overseeing licensing and City Council and Commission packets. Other significant expenses within Administration include postage and equipment rental. 8 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1120 Administration 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INCUDEC) 4010 Salaries & Wages-Reg 288,189 294,000 309,500 5.3% 4020 Salaries & Wages-Temp 35 6,000 6,000 0.0% 4030 Contributions-Retirement 37,977 37,800 44,600 18.0% 4040 Contributions-Insurance 37,137 35,500 35,200 (0.8%) 4050 Workers Compensation 1,182 1,200 1,300 8.3% TOTAL PERSONAL SERVICES 364,521 374,500 396,600 5.9% 4120 Supplies-Equipment 132 200 200 0.0% 4130 Supplies-Program 100 100 0.0% 4210 Books & Periodicals 184 200 200 0.0% TOTAL MATERIALS & SUPPLIES 316 500 500 0.0% 4300 Fees, Services 23,716 2,000 7,000 250.0% 4310 Telephone 2,746 2,400 2,900 20.8% 4330 Postage 10,478 16,000 16,000 0.0% 4340 Printing & Publishing 280 1,500 1,000 (33.3%) 4360 Subscriptions & Memberships 3,832 4,000 4,000 0.0% 4370 Travel & Training 8,322 8,000 8,000 0.0% 4380 Mileage 5,225 7,200 7,200 0.0% 4410 Rental-Equipment 19,043 18,500 18,500 0.0% 4530 Repair & Maintenance-Equip 300 300 0.0% 4807 Property Tax Expense 20 100 100.0% TOTAL CONTRACTUAL SERVICES 73,661 59,900 65,000 8.5% 4703 Office Equipment 0.0% TOTAL CAPITAL OUTLAY 0.0% TOTAL ADMINISTRATION 438,499 434,900 462,100 6.3% 9 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - Finance Mission and Current Services The Finance Department is responsible for accounting, revenue collection, invoice payment, budget monitoring, payroll preparation, and utility billing. The department is comprised of the Finance Director, an Accountant II, and two accounting clerks one of which is shared with the Fire Department. Budget Highlights The 2009 budget reflects a decrease of $12,000 (4.0%) due to a continuing effort of the finance staff to perform more accounting/auditing services in house rather than have our audit firm prepare the information. Future Trends The Finance Department acquired new software in 2005. The new software was used to implement Utility Billing online payments (a convenience feature for our residents to pay their bills online with the use of a credit card). The department also plans on implementing an online payroll/timekeeping processing system in the next couple years. Significant annual projects include the audit, Capital Improvements Program (CIP), and financial trend monitoring. Outcomes The major costs in the finance department, aside from personnel costs, are providing services to the City as follows: 1. Audit: The audit process is an extensive review of our financial records and internal controls in place to assure that all City assets are properly accounted for. The Finance Department spends between $45,000-$50,000 annually to perform the audit and other related accounting reviews. The City has received the award for financial reporting excellence from the Government Finance Officers Association (GFOA), since 1992. Less than 10% of all Minnesota municipalities receive this award. 2. Memberships: All employees of the Finance Department are members of the Minnesota GFOA. This membership allows for access to ideas and thoughts on finance-related topics from other member cities, allows for training provided by professionals in the government finance profession, and for networking opportunities with other members from across the state and country. The cost for the entire department to be members is about $400. 10 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1130 Finance 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET 4010 Salaries & Wages-Reg 183,268 168,000 176,200 4.9% 4011 Overtime 904 200 200 0.0% 4030 Contributions-Retirement 23,281 24,000 25,400 5.8% 4040 Contributions-Insurance 20,952 17,400 22,900 31.6% 4050 Workers Compensation 723 1,000 800 (20.0%) TOTAL PERSONAL SERVICES 229,129 210,600 225,500 7.1% 4120 Supplies-Equipment 51 200 100 (50.0%) 4210 Books & Periodicals 100 100 0.0% TOTAL MATERIALS & SUPPLIES 51 300 200 (33.3%) 4300 Fees, Services 14,392 55,000 30,000 (45.5%) 4301 Fees, Financial/Audit 23,409 25,000 25,000 0.0% 4310 Telephone and Communications 383 300 400 33.3% 4330 Postage 200 200 0.0% 4340 Printing & Publishing 1,155 1,500 1,500 0.0% 4360 Subscriptions & Memberships 375 400 400 0.0% 4370 Travel & Training 5,120 9,000 7,100 (21.1%) 4530 Repair & Maintenance-Equip 100 100 0.0% 4901 Refunds/Reimbursements 1 0.0% TOTAL CONTRACTUAL SERVICES 44,834 91,500 64,700 (29.3%) 4703 Office Equipment 1,003 200 200 0.0% TOTAL CAPITAL OUTLAY 1,003 200 200 0.0% TOTAL FINANCE 275,017 302,600 290,600 (4.0%) 11 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - Legal Mission and Current Services This fund pays for attorney services that advise the City on questions of law, reviews all ordinances, resolutions, contracts, and other legal documents of the City, and represents the City in court actions including the prosecution of cases in District Court. The City has contracted with Campbell Knutson Professional Association to handle civil and criminal matters, as well as the City's prosecution duties. The City also periodically uses separate law firms for various specialized legal matters (personnelllabor, bond counsel, EDA). The City uses consultative attorney services with general service costs paid on a fixed fee basis. Budget Highlights There was no increase in the legal services budget from 2008 to 2009. Future Trends The City will continue to use legal services to ensure that the City's interests are fairly represented in all matters. Outcomes The contract for legal services ensures that the City has representation in legal matters, access to legal advice, and the City Attorney attends all City Council meetings. 12 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1140 Legal 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/CDEC) 4302 Fees, Legal 142,105 168,000 168,000 0.0% TOTAL CONTRACTUAL SERVICES 142,105 168,000 168,000 0.0% TOTAL LEGAL 142,105 168,000 168,000 0.0% 13 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - Property Assessment Mission and Current Services This fund pays for the valuation of residential, commercial and industrial real estate parcels and personal property by the Carver County Assessor's Office. The taxable value estimates are used by the City, School Districts, Carver County, and special taxing jurisdictions for the purpose of equitably distributing the property tax on all taxable properties. Budget Highlights The 2009 budget shows an increase of $8,400 (8.3%) due to an increase in fees charged by Carver County, as well as an increase in the number of parcels needing to be assessed. Future Trends The City plans to continue using the Carver County Assessor to assess the value of all parcels within the City of Chanhassen. The City has contracted with Carver County for service in 2009. In 2007, the City also commenced a three-year contract with Carver County to handle assessment appeals through the Open Book process. Outcomes Accurate and consistent property valuation is essential to a fair taxation system. The City has examined the cost of in-house property assessment and found contracting with the County to be more cost-effective. 14 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1150 Property Assessment 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INCUDECl 4300 Fees, Services 101,496 101,500 109,900 8.3% 4340 Printing & Publishing 100 100 0.0% TOTAL CONTRACTUAL SERVICES 101,496 101,600 110,000 8.3% TOTAL PROPERTY ASSESSMENT 101,496 101,600 110,000 8.3% 15 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - Management Information Systems (MIS) Mission and Current Services The MIS Department provides and maintains computer, network, and telecommunication resources to all City users with a goal of assuring that staff has the appropriate technology to efficiently perform their job functions. The MIS staff also provides direct support of both desktop and server-hosted software applications and manages vendor support for all other City software. In addition, the department provides basic software training and manages external software training for all other City departments. Budget Highlights The 2009 MIS department budget reflects a 5% increase which is due primarily with increased staff salaries and benefits, the addition of software maintenance for the Storage Area Network deployed in 2008 and increases in software maintenance fees for existing software applications. MIS staff will continue concentrating on reducing the number of physical city network servers through the use of VMWare virtualization software. Desktop computers, workstations, printers, and network equipment will be replaced as per the established schedule. Some equipment will be recycled for use in less demanding roles. Surplus equipment will continue to be sold via the city's online auction site. Future Trends Existing network servers will be integrated into fewer physical servers utilizing a VMWare Virtual Server platform. This reduces the number of physical servers needed and allows for more efficient use of their computing power. We will begin scanning the large format building drawings into the City's document imaging system in 2009. Only one set of paper documents exist for most of the buildings in the building drawing library. The process will be completed over the course of three years. The digital images will be linked to the city's mapping applications. A large format scanner has been included in the capital budget to help facilitate the process and ensure future documents can be converted when they are received. Outcomes The major areas of expenditures within the MIS department budget, aside from personnel costs, are software support agreements for all City software applications and telephone systems. The major software agreements include all financial applications, permitting, document imaging, and various network support utilities. MIS staff will be replacing roughly one quarter of the City's desktop computers as part of an established equipment replacement program. 16 17 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - City Hall Mission and Current Services This fund exists to provide for improvements to City owned buildings and structures other than park and recreation facilities. Improvement projects are very diverse and range from replacement of elements that have reached the end of their service life expectancy, such as roofs and HVAC equipment, to improvements made to meet current building codes. Budget Highlights Expenditures increased by $27,300 (7%) over the 2008 budget. Increases were related to salaries/benefits, office supplies, building repair and maintenance costs and utilities. Future Trends Staff will continue to monitor City facilities and focus on preventative maintenance to avoid, or delay, large expenditures for major equipment and facility repairs. Outcomes The City Hall budget includes salary for one Building Maintenance staff person. This staff person is responsible for maintenance and repairs at all City owned buildings. In addition, the City Hall budget includes office supplies for all departments. The largest single item within the City Hall budget is General Liability Insurance ($170,000). This item includes property insurance, auto insurance, various risk coverages, and terrorism insurance. Another significant expense is the cost of utilities for City Hall and the Library. 18 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1170 City Hall 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC} 4010 Salaries & Wages-Reg 49,957 50,300 51,500 2.4% 4011 Overtime-Reg 3,516 3,500 3,500 0.0% 4030 Contributions-Retirement 7,338 7,100 7,500 5.6% 4040 Contributions-Insurance 6,462 5,900 6,200 5.1% 4050 Workers Compensation 1,730 1,600 1,800 12.5% TOTAL PERSONAL SERVICES 69,002 68,400 70,500 3.1% 4110 Supplies-Office 42,555 37,000 43,000 16.2% 4120 Supplies-Equipment 659 1,000 1,000 0.0% 4140 Supplies-Vehicles 146 1,000 1,000 0.0% 4150 Maintenance Materials 3,428 3,000 3,000 0.0% 4260 Small Tools & Equipment 34 300 300 0.0% TOTAL MATERIALS & SUPPLIES 46,823 42,300 48,300 14.2% 4300 Fees, Services 6,619 6,000 7,000 16.7% 4310 Telephone 11,052 16,000 16,000 0.0% 4320 Utilities 52,396 54,600 60,000 9.9% 4330 Postage 536 0.0% 4350 Cleaning & Waste Removal 32,643 35,000 35,700 2.0% 4410 Equipment Rental 987 0.0% 4440 License & Registration 100 100 0.0% 4483 Insurance-General Liability 166,026 163,000 170,000 4.3% 4510 Repair & Maintenance-Building 11 ,354 5,000 10,000 100.0% 4520 Repair & Maintenance-Vehicles 400 400 0.0% 4530 Repair & Maintenance-Equip 2,978 2,000 2,000 0.0% 4933 Sales Tax 103 100 100.0% TOTAL CONTRACTUAL SERVICES 284,696 282,100 301,300 6.8% TOTAL CITY HALL 400,521 392,800 420,100 7.0% 19 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - Elections Mission and Current Services The City Manager's office is responsible for the administration of the City's elections and official records. The office is responsible for voter registration, redistricting, and conducting local, state, and national elections. State and federal laws governing elections and data practices require many of the functions that are performed by the election staff. Our mission is to provide these mandated services efficiently and accurately and to act as an effective communications link between government and citizens by providing public access to government information, records, and processes. We feel that excellent customer service is key to satisfaction with government and can increase positive interaction with connections within our community. Budget Highlights Since 2005, the City's policy has been to budget one-half of each election cycle every year to avoid fluctuations from year to year. This budget is being held static ($0, 0% increase over 2008). 2009 is an off-cycle year and no regular or special elections are scheduled. Future Trends New voting equipment will be needed as programmed in the Capital Improvement Plan. Outcomes Funds programmed in 2009 will be used to assist with the 2010 election, which will include the Governor's race. 20 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1180 Elections 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4020 Salaries & Wages-Temp 20,500 20,500 0.0% 4030 Contributions-Retirement 1,000 1,000 0.0% 4060 Unemployment 13 0.0% TOTAL PERSONAL SERVICES 13 21,500 21,500 0.0% 4110 Office Supplies 200 200 0.0% 4300 Fees, Services 3,000 3,000 0.0% 4340 Printing & Publishing 2,000 2,000 0.0% 4370 Travel & Training 1,200 1,200 0.0% TOTAL CONTRACTUAL SERVICES 6,400 6,400 0.0% TOTAL ELECTIONS 13 27,900 27,900 0.0% 21 CITY OF CHANHASSEN 2009 BUDGET Commentary General Government - Library Building Mission and Current Services While the day-to-day staffing operations of the library are run and funded by Carver County, the City is responsible for the maintenance and upkeep of the building. This includes the cost of utilities, building and some equipment maintenance, cleaning, and telephone service. Budget Highlights An increase of $27,000 (24.5%) is proposed, largely attributable to increased utility costs and building maintenance costs. The fees for service category includes annual window cleaning. Future Trends The Library building celebrated its 5-year anniversary in 2008. Outcomes In 2006, the Chanhassen Library became the only library in the Carver County system to be open on Sundays, and has enjoyed tremendous success in terms of visitors and circulation. 22 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1190 Library Building 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET 4150 Maintenance Materials 1,900 3,000 3,000 0.0% 4260 Small Tools & Equipment 563 0.0% TOTAL MATERIALS & SUPPLIES 2,463 3,000 3,000 0.0% 4300 Fees, Services 7,346 1,000 4,000 300.0% 4310 Telephone 1,466 2,200 2,200 0.0% 4320 Utilities 71,935 67,000 80,000 19.4% 4350 Cleaning & Waste Removal 30,308 33,000 34,000 3.0% 4510 Repair & Maintenance-Building 6,717 2,000 7,000 250.0% 4530 Repair & Maintenance-Equip 6,824 2,000 7,000 250.0% 4933 Sales Tax 277 0.0% TOTAL CONTRACTUAL SERVICES 124,871 107,200 134,200 25.2% TOTAL LIBRARY 127,334 110,200 137,200 24.5% 23 CITY OF CHANHASSEN 2009 BUDGET Commentary Public Safety - Police Administration Mission and Current Services This department serves mainly as a fund to pay for the contract with the Carver County Sheriff's Department for law enforcement services. Also included is funding for the Carver County Sergeant permanently assigned to the City of Chanhassen, as well as a Crime Prevention Specialist who works with residents and the business community to prevent, prepare for, and recover from crimes. Budget Highlights The 2009 budget reflects an increase of $123,000 (8.2%) due to increased staffing levels and inflationary increases for cars, fuel and benefits. The 2009 contract includes a Liaison Lt. replacing the Liaison Sg1. ($5,000 cost differential) and the addition of a School Resource Officer in September to be assigned to Chanhassen High School. The City also participates in the Southwest Metro Drug Task Force. Future Trends The City will continue to be dedicated to the safety of its residents and will work closely with the Carver County Sheriff's Department to maintain the high level of satisfaction with our law enforcement services. In 2007, the City and Sheriff's office devised a 3 year staffing plan for 2008-2010. Staff will continue to monitor needs and will also participate in discussions with the Carver County Sheriff's Department about future staffing levels. Outcomes On average, the City of Chanhassen receives 59 hours of deputy patrol per day. The City also receives investigative and other services from the County. 24 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1210 Police Administration 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET 4010 Salaries & Wages-Reg 58,454 60,200 62,400 3.7% 4030 Contributions-Retirement 8,079 8,500 9,000 5.9% 4040 Contributions-Insurance 6,564 5,900 6,300 6.8% 4050 Workers Compensation 446 500 500 0.0% TOTAL PERSONAL SERVICES 73,543 75,100 78,200 4.1% 4130 Program Supplies 5,098 5,000 5,000 0.0% 4300 Fees, Services 1,275,822 1,417 ,500 1,536,900 8.4% 4370 Travel & Training 95 500 100.0% 4375 Promotional Expense 50 4,500 4,500 0.0% TOTAL CONTRACTUAL SERVICES 1,281,065 1,427,000 1,546,900 8.4% TOTAL POLICE ADMINISTRATION 1,354,608 1,502,100 1,625,100 8.2% 25 CITY OF CHANHASSEN 2009 BUDGET Commentary Public Safety - Fire Prevention and Administration Mission and Current Services This budget funds both Fire Prevention and Fire Department Administration. The Fire Department currently employs 45 firefighters operating out of two stations with a primary purpose of providing fire protection services for city residents and business owners. In addition, the department assists neighboring departments when requested and receives the same support in return. The Fire Prevention division is staffed by a Fire Marshal and a Deputy Fire Marshal who office out of City Hall. This division is responsible for enforcing the state fire code in new and existing construction. It is also responsible for the investigation of all fires within the city borders. Budget Highlights There are no significant increases in the 2009 budget from last year. Staffing levels remain relatively static. Future Trends Commercial and residential development occurring in the southern portion of the city will increase the need for expanded fire protection in that area. A third satellite fire station is planned to meet that need. Some existing firefighters would be assigned to that station, however additional staff will need to be added to fully staff all stations. Outcomes Both the Fire Department and Fire Prevention departments are heavily involved with fire prevention awareness throughout the city. Programs such as Safety Camp and Fire Prevention Week for children grades 1 through 3 continue to be a great success. The Fire Department Open House held annually in October offers fire education for all ages and consistently draws increasing crowds. Firefighters also volunteer in numerous city outreach programs such as block parties, station tours and special fire education programs for local community groups to ensure a high visibility within the community. 26 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1220 Fire Prevention Administration 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET 4010 Salaries & Wages-Reg 136,284 132,000 134,500 1.9% 4011 Overtime 567 1,000 1,000 0.0% 4020 Salaries & Wages-Temp 153,070 160,000 160,000 0.0% 4030 Contributions-Retirement 174,245 187,000 180,000 (3.7%) 4040 Contributions-Insurance 18,877 16,100 22,100 37.3% 4050 Workers Compensation 13,600 14,500 14,500 0.0% 4060 Unemployment 22 0.0% TOTAL PERSONAL SERVICES 496,665 510,600 512,100 0.3% 4120 Supplies-Equipment 14,446 11,000 11,000 0.0% 4130 Supplies-Program 1,777 5,000 2,000 (60.0%) 4140 Supplies-Vehicles 12,120 7,000 12,000 71.4% 4150 Maintenance Materials 496 1,000 500 (50.0%) 4170 Motor Fuels and Lubrication 139 0.0% 4210 Books & Periodicals 527 1,000 600 (40.0%) 4240 Uniforms & Clothing 9,437 13,500 10,000 (25.9%) 4260 Small Tools & Equipment 5,191 5,000 6,000 20.0% 4290 Misc. Materials & Supplies 4,620 3,500 5,000 42.9% TOTAL MATERIALS & SUPPLIES 48,755 47,000 47,100 0.2% 4300 Fees, Services 9,451 16,500 10,000 (39.4%) 4310 Telephone 5,335 6,000 6,000 0.0% 4320 Utilities 22,469 23,000 28,500 23.9% 4330 Postage 281 0.0% 4340 Printing & Publishing 33 0.0% 4350 Cleaning & Waste Removal 5,460 7,000 6,000 (14.3%) 4360 Subscriptions & Memberships 1,575 3,000 2,000 (33.3% ) 4370 Travel & Training 4,417 10,000 10,000 0.0% 4375 Promotional Expense 8,837 9,000 9,000 0.0% 4483 Insurance-General Liability 905 1,000 1,000 0.0% 4510 Repair & Maintenance-Building 5,983 7,000 7,000 0.0% 4520 Repair & Maintenance-Vehicles 8,265 7,000 8,000 14.3% 4530 Repair & Maintenance-Equip 12,294 5,000 11,000 120.0% 4531 Repair & Maintenance-Radios 3,774 9,000 5,000 (44.4%) 4901 Refunds/Reimbursements 401 0.0% Contribution for Performance 12,500 12,500 0.0% 4933 Sales Tax 614 0.0% TOTAL CONTRACTUAL SERVICES 90,093 116,000 116,000 0.0% TOTAL FIRE PREVENTION ADMIN 635,513 673,600 675,200 0.2% 27 CITY OF CHANHASSEN 2009 BUDGET Commentary Community Development - Code Enforcement Mission and Current Services To provide for the health, safety, and welfare of the City through the administration of building and fire codes. The employees are responsible for the plan review, permit issuance, and inspections of buildings, plumbing, and mechanical systems, fire sprinkler and alarm systems, and individual sewage treatment systems. Division staff is also responsible for inspections of existing buildings for fire code violations, administration of the rental licensing program, septic tank and RPZ maintenance programs, processing handgun and solicitors permits and providing assistance to the City's law enforcement staff. Budget Highlights This budget reflects an increase of 4.4% due to cost of living increases. Future Trends The high school as well as office/ industrial developments are some of the larger construction projects. Outcomes The budget provides the wages and salary for the Building Official, 2 Building Inspectors, 2 Mechanical Inspectors, 2 support staff and an intern/seasonal help. The budget also provides for Continuing Education for the Inspectors' licensing. 28 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1250 Code Enforcement 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC} 4010 Salaries & Wages-Reg 470,923 484,400 503,200 3.9% 4011 Overtime-Reg 8,653 4,000 4,000 0.0% 4020 Salaries & Wages-Temp 6,789 30,000 30,000 0.0% 4030 Contributions-Retirement 65,765 72,900 72,500 (0.5% ) 4040 Contributions-Insurance 73,358 64,100 67,900 5.9% 4050 Workers Compensation 3,346 3,400 3,500 2.9% TOTAL PERSONAL SERVICES 628,834 658,800 681,100 3.4% 4120 Supplies-Equipment 178 1,000 500 (50.0%) 4130 Supplies-Program 280 800 500 (37.5% ) 4140 Supplies-Vehicles 1,657 1,500 1,700 13.3% 4210 Books & Periodicals 2,373 3,500 2,500 (28.6% ) 4240 Uniforms & Clothing 182 1,500 500 (66.7% ) 4260 Small Tools & Equipment 71 400 400 0.0% TOTAL MATERIALS & SUPPLIES 4,740 8,700 6,100 (29.9% ) 4300 Fees, Services 1,000 11,000 1000.0% 4310 Telephone 3,304 4,000 4,000 0.0% 4340 Printing & Publishing 3,016 2,000 3,000 50.0% 4360 Subscriptions & Memberships 662 1,000 1,000 0.0% 4370 Travel & Training 2,776 11,000 11,000 0.0% 4375 Promotional Expense 200 200 0.0% 4440 License & Registration 200 200 0.0% 4520 Repair & Maintenance-Vehicles 466 1,500 500 (66.7% ) 4530 Repair & Maintenance-Equip 1,857 2,500 2,000 (20.0%) 4901 Refunds/Reimbursements 926 1,000 100.0% 4933 Sales Tax 20 0.0% TOTAL CONTRACTUAL SERVICES 13,027 23,400 33,900 44.9% TOTAL CODE ENFORCEMENT 646,601 690,900 721,100 4.4% 29 CITY OF CHANHASSEN 2009 BUDGET Commentary Public Safety - Community Service Mission and Current Services This fund provides animal control and protection service for the City, as well as support to emergency responses and assists with code enforcement, deliveries, and general public safety support. Budget Highlights The 2009 budget reflects an increase of $1,700 (2.3%). This increase reflects an increase in program and vehicle supplies. Two part-time Community Service Officers (CSO's) will continue to be used for animal control and code enforcement duties. Future Trends The City will continue to use community service officers to assist with animal control issues, code enforcement, as well as assisting with emergency responses as needed. Outcomes The Community Service Officer program is used to supplement the services received from the Carver County's Sheriff's office. CSO's respond to a range of situations, including wild and domestic animals, vehicle lockouts, assist with traffic direction and medical calls, and code enforcement duties. The CSO program maintains a website to reunite lost pets with their owners or find the pets new homes. The CSO's also participate in community programs and assist community organizations with education as called upon. 30 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1260 Community Service 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4020 Salaries & Wages-Temp 44,183 47,000 47,000 0.0% 4021 Overtime-Temp 1,314 1,400 1 ,400 0.0% 4030 Contributions-Retirement 6,402 5,500 6,000 9.1% 4040 Contributions-Insurance 590 600 600 0.0% 4050 Workers Compensation 1,034 800 1,000 25.0% TOTAL PERSONAL SERVICES 53,523 55,300 56,000 1.3% 4120 Supplies-Equipment 2,158 1,000 1,500 50.0% 4130 Supplies-Program 702 500 700 40.0% 4140 Supplies-Vehicles 1,133 700 1,000 42.9% 4210 Books & Periodicals 32 200 200 0.0% 4240 Uniforms & Clothing 781 1,600 1,600 0.0% TOTAL MATERIALS & SUPPLIES 4,805 4,000 5,000 25.0% 4300 Fees, Services 12,485 9,600 9,600 0.0% 4310 Telephone 658 1,000 1,000 0.0% 4340 Printing & Publishing 1,394 500 500 0.0% 4360 Subscriptions & Memberships 84 300 300 0.0% 4370 Travel & Training 389 700 700 0.0% 4520 Repair & Maintenance-Vehicles 339 1,000 1,000 0.0% 4530 Repair & Maintenance-Equip 300 300 0.0% 4531 Repair & Maintenance-Radios 377 300 300 0.0% 4901 Refunds/Reimbursements 50 0.0% 4933 Sales Tax 27 0.0% TOTAL CONTRACTUAL SERVICES 15,804 13,700 13,700 0.0% TOTAL COMMUNITY SERVICE 74,132 73,000 74,700 2.3% 31 CITY OF CHANHASSEN 2009 BUDGET Commentary Public Works - Engineering Mission and Current Services The Engineering Department provides engineering services related to the following programs: Public Improvement Projects (streets, wells, water treatment, sanitary sewer, storm sewer and water extension, etc.) Community Development o Plan review and construction monitoring for all developer-installed public improvements o Review building permits to ensure compliance with the City Council-approved grading plan and conditions of development approval o Attend Planning Commission Meetings o Review Vacation Requests o Draft Encroachment Agreements Pavement Management o Administration of the Pavement Management System o Initiation and implementation of annual street improvement and seal coat projects Other Miscellaneous Duties include: Coordination with County and State Agencies regarding transportation and storm water issues Issue permits for: o Street closures for block parties o Temporary lifting of No Parking Zone regulations o Daily watering of new sod or seed o Grading, ROW, Driveways, Private Utility Permit Review Repair drainage problems Respond to customer complaints, requests, and concerns relating to the City's streets, water, sanitary sewer, and drainage. Obtain traffic/speed count data and draft speed and traffic count studies Outcomes The major costs in the Engineering Department, aside from personnel, that provide services to the City are as follows: 1. Fees for Services - The amount budgeted for in 2009 is $18,000. This amount pays for the required annual bridge inspections and certification, annual street survey & data collection, annual membership for the Suburban Rate Authority and surveying work as needed. 2. Repair and Maintenance of Equipment - The amount budgeted for in 2009 is $3,000. This amount is used to pay for the Engineering copier's supplies and maintenance agreements. 32 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1310 Engineering 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4010 Salaries & Wages-Reg 402,695 395,800 410,600 3.7% 4011 Overtime-Reg 435 1,500 1,500 0.0% 4020 Salaries & Wages-Temp 11,541 12,000 15,000 25.0% 4030 Contributions-Retirement 55,185 56,900 59,200 4.0% 4040 Contributions-Insurance 40,930 37,700 40,900 8.5% 4050 Workers Compensation 2,806 2,600 2,900 11.5% 4060 Unemployment 3,410 0.0% TOTAL PERSONAL SERVICES 517,001 506,500 530,100 4.7% 4110 Office Supplies 24 0.0% 4120 Supplies-Equipment 4 200 500 150.0% 4140 Supplies-Vehicles 751 300 500 66.7% 4210 Books & Periodicals 281 400 300 (25.0%) TOTAL MATERIALS & SUPPLIES 1,060 900 1,300 44.4% 4300 Fees. Services 18,008 18,000 18,000 0.0% 4303 Engineering Consulting 2,808 0.0% 4310 Telephone 1,801 2,000 2,100 5.0% 4330 Postage 400 400 0.0% 4340 Printing & Publishing 1,077 1,100 1,200 9.1% 4350 Cleaning & Waste Removal 158 0.0% 4360 Subscriptions & Memberships 835 1,200 1,200 0.0% 4370 Travel & Training 3,280 3,000 4,500 50.0% 4380 Mileage 12 300 500 66.7% 4440 License & Registration 15 300 300 0.0% 4520 Repair & Maintenance-Vehicles 500 500 0.0% 4530 Repair & Maintenance-Equip 1,907 3,000 3,000 0.0% 4531 Repair & Maintenance-Radios 100 100 0.0% 4933 Sales Tax 109 0.0% TOTAL CONTRACTUAL SERVICES 30,010 29,900 31,800 6.4% 4705 Other Equipment 300 300 0.0% TOTAL CAPITAL OUTLAY 300 300 0.0% TOTAL ENGINEERING 548,071 537,600 563,500 4.8% 33 CITY OF CHANHASSEN 2009 BUDGET Commentary Public Works - Street Maintenance Mission and Current Services This budget provides for the maintenance arm of the following programs: Pavement Management o Snow removal and ice control o Crack sealing o Pothole patching and small patch overlays o Tree trimming and mowing activities o Traffic sign installation and maintenance o Pavement marking Storm Water Management o Street sweeping o Storm sewer cleaning o Storm pond cleaning Street Sign, Street light and Signal maintenance In addition, this department responds to customer complaints and emergency situations related to streets, street lights, traffic signals, and ponds including cleanup following major storms and vehicle accidents. Outcomes The major costs in the Public Works department, aside from personnel, that provide services to the City are as follows: 1. Supplies and Equipment: The amount budgeted for in 2009 is $44,000. This budget amount is necessary for the operation of the Public Works department. The costs include heavy equipment parts (brakes, tires, batteries and other parts), chain saw parts, mower parts, paint, seeding material and many other supplies needed for day-to-day operations. 2. Supplies Vehicles: This budget amount is for regular maintenance of Public Works vehicles. 3. Maintenance Materials: The amount budgeted for in 2009 is $55,000 for sand and salt material used for snow and ice control. This budget amount will vary depending on the amount of snow and ice received over the winter months. 34 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1320 Street Maintenance 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET 4010 Salaries & Wages-Reg 433,032 446,000 463,700 4.0% 4011 Overtime-Reg 10,376 5,500 8,000 45.5% 4020 Salaries & Wages-Temp 7,895 10,000 10,000 0.0% 4030 Contributions-Retirement 62,046 63,100 66,800 5.9% 4040 Contributions-Insurance 62,059 55,000 62,800 14.2% 4050 Workers Compensation 20,521 20,100 22,500 11.9% TOTAL PERSONAL SERVICES 595,928 599,700 633,800 5.7% 4120 Supplies-Equipment 34,274 44,000 44,000 0.0% 4140 Supplies-Vehicles 15,421 28,000 25,000 (10.7%) 4150 Maintenance Materials 52,749 55,000 55,000 0.0% 4170 Motor Fuels & Lubricants 2,189 0.0% 4210 Books & Periodicals 100 100 0.0% 4240 Uniforms & Clothing 4,637 3,700 4,800 29.7% 4260 Small Tools & Equipment 1,668 2,700 2,700 0.0% TOTAL MATERIALS & SUPPLIES 110,939 133,500 131,600 (1.4%) 4300 Fees, Services 323 1,000 1,000 0.0% 4310 TeJephone 3,339 3,500 3,800 8.6% 4340 Printing & Publishing 59 300 300 0.0% 4350 Cleaning & Waste Removal 300 300 0.0% 4360 Subscriptions & Memberships 27 100 1,200 1100.0% 4370 Travel & Training 1,359 1,500 1,500 0.0% 4410 Rental-Equipment 6,248 1,500 1,500 0.0% 4440 License & Registration 90 600 600 0.0% 4510 Repair & Maintenance-Building 500 500 0.0% 4520 Repair & Maintenance-Vehicles 2,725 3,500 3,500 0.0% 4530 Repair & Maintenance~Equip 3,799 5,500 5,500 0.0% 4531 Repair & Maintenance-Radios 500 500 0.0% 4540 Repair & Maintenance-Streets (195) 500 500 0.0% 4560 Repair & Maintenance-Signs 10,622 13,700 13,700 0.0% 4933 Sales Tax 1,788 0.0% TOTAL CONTRACTUAL SERVICES 30,182 33,000 34,400 4.2% 4703 Office Equipment 300 300 0.0% 4705 Other Equipment 1,000 1,000 0.0% TOTAL CAPITAL OUTLAY 1,300 1,300 0.0% TOTAL STREET MAINTENANCE 737,048 767,500 801,100 4.4% 35 CITY OF CHANHASSEN 2009 BUDGET Commentary Public Works - Street Lighting & Signals Mission and Current Services This budget provides for the utility costs and repair and maintenance of street lighting and intersection signalization to provide safe mobility for the traveling public and pedestrians. Outcomes The major costs in the Street Lighting & Signals budget are as follows: 1. Utilities: The amount budgeted is $295,000. This budget amount is to pay for power to light the street lights and signals. 2. Repair and Maintenance: Lights & Signals - This budget amount is $25,000 which is to pay for bulbs and ballasts and also repair and maintenance of the signal systems. 36 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1350 Street Lighting & Signals 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4120 Supplies-Equipment 3,009 4,500 5,000 11.1% TOTAL MATERIALS & SUPPLIES 3,009 4,500 5,000 11.1% 4300 Fees, Services 300 300 0.0% 4310 Telephone 407 600 600 0.0% 4320 Utilities 273,650 295,000 295,000 0.0% 4530 Repair & Maintenance-Equip 2,500 2,500 0.0% 4565 Repair & Maintenance-Lights&Signals 13,628 17,000 25,000 47.1% TOTAL CONTRACTUAL SERVICES 287,685 315,400 323,400 2.5% TOTAL STREET LIGHT & SIGNALS 290,694 319,900 328,400 2.7% 37 CITY OF CHANHA55EN 2009 BUDGET Commentary Public Works - City Garage Mission and Current Services To keep in good condition over $8 million worth of vehicles and equipment. Keep the fleet operational with minimal down time and strive to minimize major repairs. Outcomes The major costs in the City Garage, aside from personnel, that provide services to the City are as follows: 1. Motor Fuels & Lubricants: The amount budgeted is $210,000. The main expenditure is for diesel and unleaded fuels for the City's fleet which includes all departments. This budget amount also includes the purchase of grease and hydraulic fluids. 2. Utilities: The amount budgeted is $29,000. This expenditure includes the utility costs gas, electric) to heat and power the Public Works building. 38 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1370 City Garage 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4010 Salaries & Wages-Reg 172,864 177,700 186,100 4.7% 4011 Overtime-Reg 2,838 6,500 6,500 0.0% 4030 Contributions-Retirement 23,192 25,100 26,800 6.8% 4040 Contributions-I nsurance 30,725 26,600 29,100 9.4% 4050 Workers Compensation 6,099 5,800 6,600 13.8% TOTAL PERSONAL SERVICES 235,718 241,700 255,100 5.5% 4120 Supplies-Equipment 1,498 3,300 3,300 0.0% 4140 Supplies-Vehicles 261 500 500 0.0% 4150 Maintenance Materials 2,829 1,000 1,000 0.0% 4170 Motor Fuels & Lubricants 132,287 140,000 210,000 50.0% 4240 Uniforms & Clothing 1,007 1,200 1,200 0.0% 4260 Small Tools & Equipment 2,317 4,400 4,400 0.0% TOTAL MATERIALS & SUPPLIES 140,198 150,400 220,400 46.5% 4300 Fees, Services 574 1,300 1,300 0.0% 4310 Telephone 2,613 3,800 4,000 5.3% 4320 Utilities 21,535 23,000 29,000 26.1% 4330 Postage 9 0.0% 4340 Printing & Publishing 59 100 100 0.0% 4350 Cleaning & Waste Removal 6,446 7,400 7,600 2.7% 4360 Subscriptions & Memberships 35 200 200 0.0% 4370 Travel & Training 401 1,500 1,500 0.0% 4410 Rental-Equipment 500 500 0.0% 4440 License & Registration 40 500 500 0.0% 4510 Repair & Maintenance-Building 8,219 4,000 4,000 0.0% 4520 Repair & Maintenance-Vehicles 300 300 0.0% 4530 Repair & Maintenance-Equip 2,167 3,800 3,900 2.6% 4531 Repair & Maintenance-Radios 100 100 0.0% 4933 Sales Tax 316 0.0% TOTAL CONTRACTUAL SERVICES 42,414 46,500 53,000 14.0% 4703 Office Equipment 10 500 500 0.0% 4705 Other Equipment 4,011 5,500 5,500 0.0% TOTAL CAPITAL OUTLAY 4,021 6,000 6,000 0.0% TOTAL CITY GARAGE 422,351 444,600 534,500 20.2% 39 CITY OF CHANHASSEN 2009 BUDGET Commentary Community Development - Planning Commission Mission and Current Services The Planning Commission prepares and maintains the Comprehensive Plan for the City and advises the City Council on matters regarding implementation of the plan. The Commission reviews rezoning requests, variances, conditional and special use permits, and other planning- related matters. The Commission is comprised of seven members appointed by the City Council for staggered three-year terms. Budget Highlights There are no changes in this budget from 2008 to 2009. Future Trends The Commission will continue to work on code amendments for the implementation of the comprehensive plan. Outcomes The budget covers the expenses associated with the function of the Planning Commission: Expenses for publishing the agenda and public hearing notices The budget also includes travel and training including seminar and Planning Commission Journal subscriptions 40 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1410 Planning Commission 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4210 Books & Periodicals 200 200 0.0% TOTAL MATERIALS & SUPPLIES 200 200 0.0% 4340 Printing & Publishing 4,629 3,000 3,000 0.0% 4360 Subscriptions & Memberships 120 200 200 0.0% 4370 Travel & Training 275 800 800 0.0% TOTAL CONTRACTUAL SERVICES 5,024 4,000 4,000 0.0% TOTAL PLANNING COMMISSION 5,024 4,200 4,200 0.0% 41 CITY OF CHANHASSEN 2009 BUDGET Commentary Community Development - Planning Administration Mission and Current Services The Planning Department identifies community needs and goals to guide modifications to the Comprehensive Plan. The department also reviews development plans for compliance with existing ordinances and state laws. Budget Highlights Total expenditures have increased by 5.5% due to cost of living increases. Future Trends The planning staff will be managing the implementation of the 2030 Comprehensive Plan as well as the City code updates. Outcomes The planning staff (2 Senior Planners, Planner I, and Community Development Director) The planning staff provides staff support to the Planning Commission Update the City Code to meet the goals and policies of the 2030 Comprehensive Plan Review land use plan for consistency with City plans and land use regulations Administer the Zoning Ordinance Maintain City Demographics Code Enforcement 42 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1420 Planning Administration 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4010 Salaries & Wages-Reg 278,139 289,700 305,300 5.4% 4030 Contributions-Retirement 37,362 41,000 44,000 7.3% 4040 Contributions-Insurance 40,827 35,900 38,100 6.1% 4050 Workers Compensation 1,147 1,200 1,300 8.3% TOTAL PERSONAL SERVICES 357,475 367,800 388,700 5.7% 4120 Supplies-Equipment 191 300 300 0.0% 4130 Supplies-Program 100 100 0.0% 4140 Supplies-Vehicles 190 100 100 0.0% 4210 Books & Periodicals 200 200 0.0% TOTAL MATERIALS & SUPPLIES 381 700 700 0.0% 4300 Fees, Services 36,641 5,000 5,000 0.0% 4310 Telephone 74 200 200 0.0% 4340 Printing & Publishing 200 200 0.0% 4360 Subscriptions & Memberships 899 1,500 1,500 0.0% 4370 Travel & Training 4,281 6,400 6,400 0.0% 4440 License & Registration 600 600 0.0% 4520 Repair & Maintenance-Vehicles 119 200 200 0.0% 4901 Refunds/Reimbursements 10 0.0% TOTAL CONTRACTUAL SERVICES 42,024 14,100 14,100 0.0% TOTAL PLANNING ADMINISTRATION 399,880 382,600 403,500 5.5% 43 CITY OF CHANHASSEN 2009 BUDGET Commentary Community Development - Senior Commission Mission and Current Services This budget provides oversight for the congregate dining program and advises the City Council with regard to the program needs for community senior citizens. Budget Highlights The total budget reflects maintenance of existing services, but shows an increase of 7.1 % due to the staffing of the congregate dining services. Future Trends Continue to educate the senior population on available senior services and identify changing senior needs. Outcomes This budget funds the salary of the Congregate Dining Coordinator including Meals-on- Wheels This budget also funds a portion of the Senior Planner that is the staff to the Senior Commission 44 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1430 Senior Commission 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/CDEC) 4010 Salaries & Wages-Reg 15,892 16,200 17,800 9.9% 4030 Contributions-Retirement 2,186 2,300 2,600 13.0% 4040 Contributions-Insurance 1,640 1,500 1,600 6.7% 4050 Workers Compensation 66 100 100 0.0% TOTAL PERSONAL SERVICES 19,783 20,100 22,100 10.0% 4300 Fees, Services 8,460 14,500 15,000 3.4% 4370 Travel & Training 100 200 200 0.0% 4375 Promotional Expense 503 500 500 0.0% TOTAL CONTRACTUAL SERVICES 9,063 15,200 15,700 3.3% TOTAL SENIOR COMMISSION 28,846 35,300 37,800 7.1% 45 CITY OF CHANHASSEN 2009 BUDGET Commentary Parks and Recreation - Park and Recreation Commission Mission and Current Services The Park and Recreation Commission provides recommendations and advice to the City Council regarding parks, recreation and leisure services. The Commission is comprised of seven members appointed by the City Council for staggered three-year terms. Budget Highlights Printing and Publishing: Publication of Commission agendas Subscriptions and Memberships: Membership in the Minnesota Recreation and Park Association and the National Park and Recreation Association Travel and Training: Workshops, special training, and conferences Future Trends The Commission will focus future efforts on an update of the comprehensive plan, operations at the recreation center and the amendment or addition of local partnerships as a means of advancing recreation programs. Outcomes The Commission considers matters pertaining to parks and public recreation programs as referred to the Commission by the Council, or as the members of the Commission themselves deem proper. Preparation of a comprehensive plan for the future development of the City park and recreation system, to be submitted to the City Council for implementation, and to maintain said plan, and recommend amendments of the plan to the City Council, as may become necessary or desirable. To act in an advisory capacity to the Council in all matters relating to park and recreation in the City. 46 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1510 Park & Rec Commission 200Bto 2007 200B 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4130 Supplies-Program 100 100 0.0% 4210 Books & Periodicals 100 100 0.0% TOTAL MATERIALS & SUPPLIES 200 200 0.0% 4340 Printing & Publishing 1,322 900 900 0.0% 4360 Subscriptions & Memberships 700 700 0.0% 4370 Travel & Training 445 400 400 0.0% TOTAL CONTRACTUAL SERVICES 1,767 2,000 2,000 0.0% TOTAL PARK & REC COMMISSION 1,767 2,200 2,200 0.0% 47 CITY OF CHANHASSEN 2009 BUDGET Commentary Parks and Recreation - Parks and Recreation Administration Mission and Current Services The Parks and Recreation Administration budget exists to plan, develop, and administer leisure- time activities in the community. This function physically plans and develops parks, open space, trails and indoor recreation facilities. Staff also coordinates programs with the school districts, Chanhassen Athletic Association, and other organizations. Budget Highlight Salaries and Wages: Park and Recreation Director Subscriptions and Memberships: Professional memberships in state and national professional associations Travel and Training: Attendance at continuing education workshops and conferences Future Trends Parks, trails, park programs and open space are being increasingly recognized for performing three important functions: meeting physical and psychological needs, enhancing and protecting the resource base and property values, and providing a positive impact on economic development. Outcomes The park and recreation administrator works to ensure that local recreational facilities and open space areas reasonably meet the outdoor recreation needs of the community's residents and preserve and protect environmentally-sensitive areas and varied topography. This goal shall be accomplished by: Providing park and open space facilities that emphasize accessibility and use by Chanhassen residents. Coordinating the expenditure of local funds for recreational open space in concert with the provision and development of other municipal services. Updating the recreation section of the comprehensive plan every five years. Conducting an annual assessment of capital improvement program needs. Providing open space areas which assist in the conservation and protection of ecologically sensitive areas. Developing a park and open space plan which is consistent with and complements the overall land use plan for Chanhassen. Encouraging citizen participation in planning for and development of park and open space facilities. Developing a comprehensive interconnected trail/sidewalk system throughout the community. Facilitating cooperative efforts between local school systems and the City in acquisition, development and usage of recreational lands and facilities. Seeking assistance from community groups in the planning for and development of park and open space facilities. 48 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1520 Park & Rec Administration 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DECl 4010 Salaries & Wages-Reg 93,735 95,200 99,100 4.1% 4030 Contributions-Retirement 12,411 13,400 14,300 6.7% 4040 Contributions-Insurance 10,616 9,500 10,100 6.3% 4050 Workers Compensation 381 400 500 25.0% TOTAL PERSONAL SERVICES 117,143 118,500 124,000 4.6% 4120 Supplies-Equipment 90 500 500 0.0% 4130 Supplies-Program 13 200 200 0.0% 4140 Supplies-Vehicles 319 0.0% 4210 Books & Periodicals 100 100 0.0% 4240 Uniforms & Clothing 200 200 0.0% TOTAL MATERIALS & SUPPLIES 422 1,000 1,000 0.0% 4300 Fees, Services 1,100 1,100 0.0% 4310 Telephone 1,132 900 900 0.0% 4330 Postage 400 400 0.0%4340 Printing & Publishing 424 1,500 1,500 0.0%4360 Subscriptions & Memberships 1,055 1,600 1,600 0.0%4370 Travel & Training 5,157 3,800 4,800 26.3%4380 Mileage 178 300 300 0.0%4440 License & Registration 30 0.0%TOTAL CONTRACTUAL SERVICES 7,976 9,600 10,600 10.4% TOTAL PARK & REC ADMINISTRATION 125,541 129,100 135,600 5.0% 49 CITY OF CHANHASSEN 2009 BUDGET Commentary Parks and Recreation - Recreation Center Mission and Current Services: The Recreation Center budget exists to provide fitness and recreational opportunities for the community. The Center also provides community space for programs and rentals. The Recreation Center provides year-round indoor and outdoor recreational programs. This facility is shared with Independent School District 112 and Bluff Creek Elementary School. Budget Highlights: The expense budget for the Recreation Center remains stable for 2009.- Salary and wages: Recreation Center Manager, Facility Supervisors, Dance Coordinator, Dance Instructors, and Aerobic Instructors (22 total staff) Supplies - Equipment: $8,000 fitness, aerobic equipment, gym supplies and facility rental equipment requirements Supplies - Programs: $4,000 supplies needed for Dance for Fun program, and additional in-house program supply needs at the Recreation Center Fees for Service: $29,700 program management fees to provide recreational opportunities to the community Utilities: $37,500 Recreation Center is responsible for 24% of facility heating, air conditioning, and electrical service Repair and Maintenance-Building: $3,000 facility repair and maintenance requirements Future Trends As the health and fitness industry grows and changes, the Recreation Center will introduce new fitness formats, offer additional youth programs and multi-generational activities, and enhance recreational opportunities for youth, families and seniors. Outcomes The Recreation Center Manager will ensure quality programs and opportunities are offered for the community. Offer fitness and recreational services at an affordable price. Provide a friendly atmosphere for participants of all ages to feel welcome. Provide a variety of programs to meet community needs. Encourage increased participation in community fitness. Offer rental facilities at affordable rates. 50 51 CITY OF CHANHASSEN 2009 BUDGET Commentary Parks and Recreation - lake Ann Park Operations Mission and Current Services This department provides for the operations at Lake Ann Park. Revenues, which offset some of the expenses, include facility rental, watercraft and equipment rental, and concession fees. Budget Highlights The total budget reflects maintenance of existing services. Future Trends As Chanhassen continues to develop our park system, Lake Ann's presence will be more important. Enhancing and maintaining our existing facilities at Lake Ann will provide our residents with a "go to" place to fill their recreational needs. Outcomes Administration staff works daily with park maintenance staff to maintain a high level of service at our most popular community park Provide leadership in coordinating all components of the Lake Ann ConcessionlW atercraft rental operation. Continue to work with Minnetonka Community Education and Services in building upon a longstanding relationship while providing a safe environment with lifeguards at Lake Ann beach. Coordinate all facility rentals/reservations in order for our customers to have a quality experience. 52 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1540 Lake Ann Park Operations 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET %INC/DEC 4020 Salaries & Wages-Temp 7,029 12,200 12,200 0.0% 4021 Overtime-Temp 6 500 400 (20.0%) 4030 Contributions-Retirement 538 800 600 (25.0%) 4050 Workers Compensation 160 300 200 (33.3% ) TOTAL PERSONAL SERVICES 7,734 13,800 13,400 (2.9%) 4120 Supplies-Equipment 3,364 0.0% 4130 Supplies-Program 9,017 8,600 9,000 4.7% 4240 Uniforms & Clothing 500 500 500 0.0% TOTAL MATERIALS & SUPPLIES 12,881 9,100 9,500 4.4% 4300 Fees, Services 29,018 31,800 34,000 6.9% 4310 Telephone 2,469 3,600 2,400 (33.3%) 4320 Utilities 10,297 15,000 20,000 33.3% 4340 Printing & Publishing 1,000 1,000 0.0% TOTAL CONTRACTUAL SERVICES 41,784 51,400 57,400 11.7% TOTAL LAKE ANN PARK OPERATIONS 62,399 74,300 80,300 8.1% 53 CITY OF CHANHA55EN 2009 BUDGET Commentary Parks and Recreation - Park Maintenance Mission and Current Services This department maintains the City's park sites, play equipment, athletic facilities, and trails. This department is also responsible for the maintenance of the downtown business district including lighting, mowing, banners and other items. Budget Highlights Minor increases are seen in fees for services and rental for land and buildings. The increase use of City parks is requiring additional satellites and cleaning services. Also, outside services are needed to help with weed and thistle control. Salaries: 7 full time employees (Park Superintendent, 4 Park Maintenance, and 2 Downtown Maintenance). Seasonal Employees: 14 Seasonal Park Maintenance employees. Supplies: Reflects all miscellaneous supplies and materials needed to maintain all existing parks and play structures. Maintenance Material: o $10,000 - fertilizer for all parks with high athletic use o $5,000 - sand for beaches, gravel, rock, and fill o $3,000 - weed spray for parks o $1,500 - small black top repairs to trails Irrigation Supplies: Supplies for irrigation system in parks, Bluff Creek Elementary, City Hall, Library, Fire Stations. Fees and Services o $7,000 - snowplowing City owned parking lots, downtown o $7,500 - fertilizer and 'Need control for downtown buildings, City Hall, Library, and Fire Stations o $2,000 - spray thistle on City property Cleaning and Waste Removal: Services for rubbish removal throughout the year at all City parks. Rental Land and Buildings: Rental of 41 portable toilets used in City parks. Other Equipment: o $4,000 - portable Hydro Seeder Future Trends The park system will continue to grow with additional trails being added during the construction of the 312 highway. New parks will be added with the development of the southern part of Chanhassen. Outcomes This budget reflects maintenance needs for 37 parks, 55 miles of trails, 26 ball fields, 22 soccer fields, 17 tennis courts, the skate park, the downtown boulevard, 2 fire stations, city hall and the library. 54 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1550 Park Maintenance 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4010 Salaries & Wages-Reg 426,681 435,400 448,500 3.0% 4011 Overtime-Reg 17,032 8,000 15,000 87.5% 4020 Salaries & Wages-Temp 85,216 82,000 90,000 9.8% 4021 Overtime-Temp 2,416 3,000 4,000 33.3% 4030 Contributions-Retirement 66,154 61,700 67,000 8.6% 4040 Contributions-Insurance 67,269 59,700 64,100 7.4% 4050 Workers Compensation 11,843 11,500 12,500 8.7% TOTAL PERSONAL SERVICES 676,612 661,300 701,100 6.0% 4120 Supplies-Equipment 43,759 32,000 32,000 0.0% 4140 Supplies-Vehicles 3,647 8,000 8,000 0.0% 4150 Maintenance Materials 34,152 33,000 33,000 0.0% 4151 Irrigation Materials 3,735 3,000 3,000 0.0% 4240 Uniforms & Clothing 2,317 2,800 2,800 0.0% 4260 Small Tools & Equipment 1,588 2,500 2,500 0.0% TOTAL MATERIALS & SUPPLIES 89,199 81,300 81,300 0.0% 4300 Fees, Services 28,798 22,000 22,000 0.0% 4310 Telephone 3,692 3,700 3,700 0.0% 4320 Utilities 9,037 6,000 7,500 25.0% 4340 Printing & Publishing 59 400 200 (50.0%) 4350 Cleaning & Waste Removal 6,685 6,000 8,000 33.3% 4360 Subscriptions & Memberships 105 400 400 0.0% 4370 Travel & Training 498 2,000 2,000 0.0% 4400 Rental-Land & Buildings 22,948 28,500 31,500 10.5% 4410 Rental-Equipment 55 2,000 2,000 0.0% 4440 License & Registration 10 700 700 0.0% 4510 Repair & Maintenance-Building 7,460 3,000 3,000 0.0% 4520 Repair & Maintenance-Vehicles 1,657 2,500 2,500 0.0% 4530 Repair & Maintenance-Equip 6,449 6,500 6,500 0.0% 4531 Repair & Maintenance-Radios 500 500 0.0% 4541 Repair & Maintenance-Trails 81 0.0% 4560 Repair & Maintenance-Signs 2,962 4,000 4,000 0.0% 4933 Sales Tax 161 0.0% TOTAL CONTRACTUAL SERVICES 90,657 88,200 94,500 7.1% 4705 Other Equipment 4,938 4,000 4,000 0.0% TOTAL CAPITAL OUTLAY 4,938 4,000 4,000 0.0% TOTAL PARK MAINTENANCE 861,407 834,800 880,900 5.5% 55 CITY OF CHANHASSEN 2009 BUDGET Commentary Parks and Recreation - Senior Citizens Center Mission and Current Services The Senior Center budget exists to plan and implement a variety of year-round programs, special events, monthly one-day tours and health and wellness activities for older adults. The Senior Center provides a setting which is welcoming and looks to improve the quality of life and use of leisure time. Senior Center programs and activities are funded by a combination of affordable fees and community sponsorship programs. Budget Highlights The budget reflects an overall 14.2% increase. The majority of this increase is related to a market adjustment for the part time Senior Center Coordinator. The remainder of the increase is tied to higher supply costs, fuel costs and surcharges for trips, programs and activities. 4,200 Program/Supplies - This covers all costs and needed supplies associated with in- house activities and events. 19,600 Fees/Services - This covers contractual service fees for entertainment, transportation, and related trip and outside program costs. Future Trends As the senior population grows and changes, the Senior Center will keep current on new trends and programs to introduce to meet these changing needs. Over the past few years, we have seen older adults relocating to Chanhassen to be closer to their adult children. They look to the Senior Center for a social and recreation network to interact with other seniors. The Senior Center will continue to offer quality programs and activities to our residents and be a place where older adults can embrace positive aging and feel part of the community. Outcomes Chanhassen has a strong and respected reputation for providing quality programming and activities for its senior population. The Senior Center Coordinator will work to ensure that this continues by: Providing quality programs, activities and classes that are relevant and affordable to all participants while also looking to attract new participants. Providing a friendly and inviting environment for all older adults to feel welcome and comfortable in use of their leisure time. Facilitating, exploring and networking with local agencies, service providers and businesses to provide joint programming and secure financial sponsorship for program development and implementation. 56 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1560 Senior Citizens Center 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4010 Salaries & Wages-Reg 27,594 32,200 38,400 19.3% 4030 Contributions-Retirement 3,834 4,500 5,600 24.4% 4040 Contributions-Insurance 0.0% 4050 Workers Compensation 114 200 200 0.0% TOTAL PERSONAL SERVICES 31,542 36,900 44,200 19.8% 4120 Supplies-Equipment 484 300 300 0.0% 4130 Supplies-Program 4,478 4,000 4,200 5.0% TOTAL MATERIALS & SUPPLIES 4,962 4,300 4,500 4.7% 4300 Fees, Services 16,873 18,500 19,600 5.9% 4340 Printing & Publishing 21 100 100 0.0% 4350 Cleaning & Waste Removal 79 200 200 0.0% 4360 Subscriptions & Memberships 77 100 100 0.0% 4370 Travel & Training 110 300 300 0.0% 4375 Promotional Expense 230 200 200 0.0% 4380 Mileage 56 100 100 0.0% TOTAL CONTRACTUAL SERVICES 17,445 19,500 20,600 5.6% TOTAL SENIOR CITIZENS CENTER 53,949 60,700 69,300 14.2% 57 CITY OF CHANHASSEN 2009 BUDGET Commentary Parks and Recreation - Recreation Programs Mission and Current Services To provide a year-round recreational program that reflects a variety of interests in the community and that develops a social, physical, cultural, and aesthetic quality for our citizens. These programs are funded by a combination of affordable fees, property tax levy and a community sponsorship program. Budget Highlights The Recreation Programs budget provides our department the ability to plan and utilize resources to provide a wide variety of special events and recreation opportunities to our residents. Future Trends The function of this budget is to provide our residents with opportunities to grow as a family and to embrace being part of our community. Community events are held in high regard to our residents and our department will continue to grow our recreational opportunities. Outcomes Chanhassen has a deep tradition of planning and hosting special events and recreational opportunities for our residents. This budget gives the financial tools to provide this service. Provide first-class events for our residents. Continue summer concert music series. Seasonal wages and equipment needed for playground program, warming houses, recreation intern and skate park attendants. 58 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1600 Recreation Programs 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4010 Salaries & Wages-Reg 80,967 85,200 89,100 4.6% 4020 Salaries & Wages-Temp 50,911 57,100 62,500 9.5% 4021 Overtime-Temp 1,102. 400 1,100 175.0% 4030 Contributions-Retirement 15,181 12,500 15,500 24.0% 4040 Contributions-Insurance 10,020 9,400 8,000 (14.9%) 4050 Workers Compensation 1,325 1,200 1 ,400 16.7% TOTAL PERSONAL SERVICES 159,507 165,800 177,600 7.1% 4120 Supplies-Equipment 1,947 2,000 2,000 0.0% 4130 Supplies-Program 14,336 13,600 15,600 14.7% 4240 Uniforms & Clothing 708 1,500 1,500 0.0% TOTAL MATERIALS & SUPPLIES 16,991 17,100 19,100 11.7% 4300 Fees, Services 47,761 57,200 54,100 (5.4%) 4310 Telephone 1,182 3,200 3,200 0.0% 4320 Utilities 2,385 2,800 3,700 32.1% 4330 Postage 200 200 0.0% 4340 Printing & Publishing 4,128 4,400 6,400 45.5% 4360 Subscriptions & Memberships 105 0.0% 4370 Travel & Training 11 500 400 (20.0%) 4380 Mileage 500 600 20.0% 4400 Rental-Land & Buildings 6,178 6,500 7,000 7.7% 4410 Rental-Equipment 21,531 18,200 18,200 0.0% 4530 Repair & Maintenance-Equip 111 0.0% 4933 Sales Tax 74 0.0% TOTAL CONTRACTUAL SERVICES 83,466 93,500 93,800 0.3% TOTAL RECREATION PROGRAMS 259,964 276,400 290,500 5.1% 59 CITY OF CHANHASSEN 2009 BUDGET Commentary Parks and Recreation - Self-Supporting Programs Mission and Current Services This department generally funds adult programs and craft and instructional classes that are designed to cover all costs from fee revenue. New programs may be started from this budget even though they may not recover all costs in the first year. Activities are expected to become self-sufficient in following years and are evaluated annually. Budget Highlights This budget provides our residents many recreational opportunities while allowing our department to offset expenditures through program revenues. Future Trends Continue to look for the next big program that will provide our residents with quality opportunities and also assist our department with revenue generation. We will continue to look for our next niche" programs that will fill the needs for smaller groups or individuals. Outcomes It is staff's mandate that this budget's expenses are offset by the revenue collected from various programs. Offer first-class adult sporting leagues while promoting social and physical activity. Assist other departments in City hall with quality programs. Safety Camp is an annual program that our department helps coordinate. Children's enrichment programs are offered to help develop their social and physical needs. Offer many varieties of sporting lessons and camps for our active residents. 60 CITY OF CHANHASSEN 2009 BUDGET 101 General Fund 1700 Self-Supporting Programs 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) 4010 Salaries & Wages-Reg 20,242 21,300 22,300 4.7% 4020 Salaries & Wages-Temp 3,733 900 100.0% 4030 Contributions-Retirement 3,171 3,100 3,300 6.5% 4040 Contributions-Insurance 2,505 2,400 2,000 (16.7%) 4050 Workers Compensation 140 100 100 0.0% TOTAL PERSONAL SERVICES 29,791 26,900 28,600 6.3% 4120 Supplies-Equipment 189 400 600 50.0% 4130 Supplies-Program 6,333 4,800 7,100 47.9% TOTAL MATERIALS & SUPPLIES 6,522 5,200 7,700 48.1% 4300 Fees, Services 91 ,833 68,000 49,300 (27.5%) 4933 Sales Tax 14 0.0% TOTAL CONTRACTUAL SERVICES 91,847 68,000 49,300 (27.5%) TOTAL SELF-SUPPORTING PROGRAMS 128,160 100,100 85,600 (14.5%) 61 This page intentionally left blank. 62 SPECIAL REVENUE FUNDS Special Revenue Funds are established to account for taxes and other revenues designated for a particular purpose by legislation or by the payer of the funds. 10% Fund - Under the term of the charitable gambling license agreement with the American Legion, the City is to receive 10% of the net revenues derived from pull-tab operations. These monies are restricted to use in programs that benefit youth in the community, public safety capital needs excluding pensions, and public safety training. CATV Fund - Under the term of the franchise agreement with cable television operators, the City is to receive 5% of the revenues derived from cable television sales within the City. These monies are dedicated to improving public communications, broadcasting of public meetings, and necessary related expenditures. 63 CITY OF CHANHASSEN 2009 BUDGET Commentary Special Revenue Fund - 10%-201 Mission and Current Services Under the term of the charitable gambling license agreement with the American Legion, the City is to receive 10% of the net revenues derived from pull-tab operations. These monies are restricted to use in programs that benefit youth in the community, public safety capital needs excluding pensions, and public safety training. Budget Highlights The proposed 2009 budget includes $17,500 for training opportunities for the fire department. Outcomes In 2008 the entire budget for training of $17,500 was spent on various firefighter training sessions, allowing for training opportunities that would not have been available with just the amounts budgeted for in the City's general fund for firefighter training. The amount for capital purchases has not been designated or spent at the time this budget was published. 64 CITY OF CHANHASSEN 2009 BUDGET SPECIAL REVENUE FUNDS 201 10% Fund 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) REVENUE GENERAL PROPERTY TAX 3801 Interest Earnings 2,341 1,500 1,500 0.0% 3807 Donations 12,167 18,000 12,000 (33.3%) TOTAL GENERAL PROPERTY TAX 14,508 19,500 13,500 (30.8%) TOTAL REVENUE 14,508 19,500 13,500 (30.8%) EXPENDITURES CONTRACTUAL SERVICES 4370 Travel & Training 17,500 17,500 17 ,500 0.0% TOTAL CONTRACTUAL SERVICES 17,500 17,500 17 ,500 0.0% CAPITAL OUTLAY 4703 Office Equipment 2,000 (100.0%) TOTAL CAP ITAL OUTLAY 2,000 (100.0%) TOTAL EXPENDITURES 17,500 19,500 17,500 (10.3%) REVENUE OVER/(UNDER) EXPENDITURES (2,992) (4,000) 65 CITY OF CHANHASSEN 2009 BUDGET Commentary Special Revenue Fund - CATV-210 Mission and Current Services Under the terms of our franchise agreement with Mediacom, the City receives 5% of the revenues derived from cable television sales within the City. These funds are dedicated to improving communication with the public through broadcasting public meetings, studio improvements, and other improvements to the systems. The City utilizes the public access capabilities provided through these franchise fees by re-broadcasting City Council and Commission meetings, as well as providing other programs that serve a public or civic purpose. Budget Highlights The 2009 budget reflects a decrease in expenditures of $10,500 (9.9%). In 2008, the City completed the installation of upgraded AN equipment used for the broadcast of City meetings. This completion results in a reduction of fees for service expenditures in 2009. The CATV budget includes one personnel, the City Recorder. The City Recorder provides verbatim minutes for City meetings, including City Council, Planning Commission, and Park & Recreation Commission. Future Trends As our capabilities become more sophisticated, it is anticipated that more programming will be shown, as well as providing the public with the opportunity to use the facilities for their own public access programs. 66 CITY OF CHANHASSEN 2009 BUDGET SPECIAL REVENUE FUNDS 210 Cable TV Fund 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET REVENUE GENERAL PROPERTY TAX 3080 Franchise Fees 183,542 150,000 150,000 0.0% TOTAL GENERAL PROPERTY TAX 183,542 150,000 150,000 0.0% OTHER REVENUE 3801 Interest Earnings 21,438 8,000 10,000 25.0% TOTAL OTHER REVENUE 21 ,438 8,000 10,000 25.0% TOTAL REVENUE 204,980 158,000 160,000 1.3% EXPENDITURES PERSONAL SERVICES 4010 Salaries & Wages-Reg 64,048 65,300 70,000 7.2% 4030 Contributions-Retirement 8,528 9,300 10,100 8.6% 4040 Contributions-Insurance 8,129 8,300 8,700 4.8% 4050 Workers Compensation 263 300 300 0.0% TOTAL PERSONAL SERVICES 80,968 83,200 89,100 7.1% MATERIALS & SUPPLIES 4120 Supplies-Equipment 5 500 500 0.0% TOTAL MATERIALS & SUPPLIES 5 500 500 0.0% CONTRACTUAL SERVICES 4300 Fees, Services 780 15,000 2,000 (86.7%) 4340 Printing & Publishing 500 500 0.0% 4370 Travel & Training 100 100 0.0% 4483 Liability Insurance 1,500 1,400 1,500 7.1% TOTAL CONTRACTUAL SERVICES 2,280 17,000 4,100 (75.9%) CAPITAL OUTLAY 4705 Other Equipment 4,954 5,500 2,000 (63.6% ) TOTAL CAPITAL OUTLAY 4,954 5,500 2,000 (63.6% ) TOTAL EXPENDITURES 88,207 106,200 95,700 (9.9%) REVENUE OVER/(UNDER) EXPENDITURES 116,773 51,800 64,300 67 This page intentionally left blank. 68 ENTERPRISE FUNDS Enterprise Funds account for the operation of the sewer and water utilities and surface water management district. These funds use the accrual method of accounting, because they are run like independent businesses. Taxes and their revenues are designated for a particular purpose by legislation or by the payer of the funds. Water Utility Fund - This fund accounts for the operation of the City-owned water system. It includes the operation of wells and water towers around town. Sewer Utility Fund - This fund accounts for the operation of the City-owned sewer system. It includes the operation of lift stations and payments to the Metropolitan Council Environmental Services division for treating the raw sewage from our City. Surface Water Manaqement Fund - This fund accounts for operations of the City's surface water management district. Those responsibilities include diverting storm water runoff, controlling ponds, managing discharges and other drainage issues. 69 CITY OF CHANHASSEN 2009 BUDGET Commentary Enterprise Fund - Water Utility Fund-700 Mission and Current Services This budget is funded through user fees in the form of utility billings and provides for the operations necessary for the following programs: Provide a safe and reliable drinking water supply and distribution system Operate and maintain ten (10) municipal water wells and approximately 70 miles of watermain Operate and maintain three (3) water storage facilities Repair watermain breaks CE>nfirms that water meets Department of Health requirements. Coordinate between 1,300 and 1 ,400 water tests per year Maintain hydrants and perform annual flushing Outcomes The major costs in the City Water Utility department, aside from personnel, that provides services to the City are as follows: Chemicals: The amount budgeted is $110,000. This item pays for the chlorine and fluoride required for potable water. Also, this item will pay for other chemicals necessary to run the east water treatment plant. Utilities: The amount budgeted is $250,000. This item pays for the power necessary to run the wells and the water treatment plant. Repair and Maintenance of Water: The amount budgeted is $50,000. This item pays for some of the watermain break expenditures. 70 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS 700 Water Enterprise Fund Operations 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INCUDECl REVENUE CHARGES FOR CURRENT SERVICES 3601 Sale of Documents 423 0.0% 3617 Engineering General 0.0% 3661 Water Usage 2,325,562 2,000,000 2,400,000 20.0% 3662 Utility Penalties 67,901 30,000 65,000 116.7% 3664 Sale of Meters & Parts 67,742 55,000 55,000 0.0% 3806 Hook Up Fees 1,924,938 1,000,000 1,000,000 0.0% TOTAL CURRENT SERVICES 4,386,565 3,085,000 3,520,000 14.1% OTHER REVENUE 3801 Interest Earnings 365,065 450,000 300,000 (33.3% ) 3903 Refunds/Reimbursements 100,002 20,000 50,000 150.0% TOTAL OTHER REVENUE 465,066 470,000 350,000 (25.5% ) TOTAL REVENUE 4,851, 631 3,555,000 3,870,000 8.9% REVENUE OVER/(UNDER) EXPENDITURES 3,481, 321 2,209,200 2,470,300 71 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS Water Operations 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/{DEC) 4010 Salaries & Wages-Reg 350,471 310,500 360,000 15.9% 4011 Overtime-Reg 25,795 20,000 20,000 0.0% 4012 Stand-By Pay 6,118 7,000 7,000 0.0% 4020 Salaries & Wages-Temp 11 ,297 13,000 15,000 15.4% 4030 Contributions-Retirement 51,837 44,000 55,000 25.0% 4040 Contributions-Insurance 49,056 45,900 52,000 13.3% 4050 Workers Compensation 8,410 7,000 9,000 28.6% TOTAL PERSONAL SERVICES 502,984 447,400 518,000 15.8% 4120 Supplies-Equipment 15,267 6,800 6,800 0.0% 4130 Supplies-Program 407 500 500 0.0% 4140 Supplies-Vehicles 5,751 6,000 6,000 0.0% 4150 Maintenance Materials 22,695 25,000 25,000 0.0% 4160 Chemicals 100,606 110,000 110,000 0.0% 4170 Motor Fuels & Lubricants 15,563 6,500 17,000 161.5% 4210 Books & Periodicals 40 300 300 0.0% 4240 Uniforms & Clothing 1,145 1,800 1,800 0.0% 4250 Merchandise for Resale 59,354 105,000 95,000 (9.5%) 4260 Small Tools & Equipment 3,456 2,500 2,500 0.0% TOTAL MATERIALS & SUPPLIES 224,285 264,400 264,900 0.2% 4300 Fees, Services 74,302 35,000 35,000 0.0% 4301 Auditing 6,000 6,000 6,000 0.0% 4310 Telephone 12,233 10,000 11,000 10.0% 4320 Utilities 234,900 250,000 250,000 0.0% 4330 Postage 7,175 8,000 8,000 0.0% 4340 Printing & Publishing 7,486 8,500 8,500 0.0% 4350 Cleaning & Waste Removal 99 500 500 0.0% 4360 Subscriptions & Memberships 321 400 400 0.0% 4370 Travel & Training 3,246 4,500 6,000 33.3% 4410 Rental-Equipment 856 1,500 1,500 0.0% 4440 License & Registration 273 300 100.0% 4483 Insurance-General Liability 13,000 13,000 13,000 0.0% 4509 Remit to Other Agencies 60,420 80,000 70,000 (12.5%) 4510 Repair & Maintenance-Building 2,302 5,000 5,000 0.0% 4520 Repair & Maintenance-Vehicles 136 1,600 1,600 0.0% 4530 Repair & Maintenance-Equip 29,320 35,000 40,000 14.3% 4550 Repair & Maintenance-Water 34,216 65,000 50,000 (23.1%) 4552 Emergency Repairs-Water 156,756 110,000 110,000 0.0% TOTAL CONTRACTUAL SERVICES 643,041 634,000 616,800 (2.7%) TOTAL WATER OPERATIONS 1,370,310 1,345,800 1,399,700 72 This page intentionally left blank. 73 CITY OF CHANHASSEN 2009 BUDGET Commentary Enterprise Fund - Sewer Utility Fund-701 Mission and Current Services This budget is funded through user fees in the form of utility billings and provides for the operations necessary for the following programs: Operate and maintain a reliable sanitary sewer collection system Operate and maintain thirty-one (31) sanitary lift stations and approximately 70 miles of sanitary sewer main The City contracts with MCES (Metropolitan Council Environmental Services) for treatment of the waste and does not have a wastewater treatment plant Sanitary sewer televising Repair emergency sewer main breaks Inflow and infiltration Outcomes The major costs in the City Sewer Utility Department, aside from personnel, that provides services to the City are as follows: Remit to other agencies: The amount budgeted is $1,300,000. This item is the payment to the MCES for treatment of the sanitary sewer flows. Utilities: The amount budgeted is $90,000. This item pays for the power to run the lift stations within the City. Repair and Maintenance of Sewers: The amount budged is $70,000. This item paysforthemaintenanceandupkeepofthesewersystemandliftstations. 74 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS 701 Sewer Enterprise Fund Operations 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET REVENUE CHARGES FOR CURRENT SERVICES 3617 Engineering General 0.0% 3660 Sewer Customers 2,102,799 2,000,000 2,200,000 10.0% 3662 Utility Penalties 48,948 40,000 45,000 12.5% 3806 Hook-up Fees 284,624 300,000 225,000 (25.0% ) 3811 Sewer Surcharge 34,875 20,000 25,000 25.0% TOTAL CURRENT SERVICES 2,471,245 2,360,000 2,495,000 5.7% OTHER REVENUE 3801 Interest Earnings 96,035 75,000 75,000 0.0% 3903 Refunds/Reimbursements 17,226 1,000 1,000 0.0% TOTAL OTHER REVENUE 113,261 76,000 76,000 0.0% TOTAL REVENUE 2,584,506 2,436,000 2,571,000 5.5% REVENUE OVER/(UNDER) EXPENDITURES 625,886 542,500 608,900 75 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS Sewer Operations 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INCIlDEC} 4010 Salaries & Wages-Reg 212,698 258,000 220,000 (14.7%) 4011 Overtime-Reg 9,366 8,000 10,000 25.0% 4012 Stand-By Pay 6,118 6,500 6,500 0.0% 4020 Salaries & Wages-Temp 12,798 10,000 16,000 60.0% 4030 Contributions-Retirement 31,384 36,500 32,500 (11.0%) 4040 Contributions-Insurance 28,757 35,200 30,000 (14.8%) 4050 Workers Compensation 6,765 5,700 7,200 26.3% TOTAL PERSONAL SERVICES 307,885 359,900 322,200 (10.5%) 4120 Supplies-Equipment 6,123 6,800 6,800 0.0% 4140 Supplies-Vehicles 5,956 6,000 6,000 0.0% 4150 Maintenance Materials 938 10,000 10,000 0.0% 4160 Chemicals 779 1,500 1,000 (33.3%) 4170 Motor Fuels & Lubricants 15,623 6,500 20,000 207.7% 4210 Books & Periodicals 250 100 (60.0%) 4240 Uniforms & Clothing 2,299 1,800 1,800 0.0% 4260 Small Tools & Equipment 409 2,500 2,000 (20.0%) TOTAL MATERIALS & SUPPLIES 32,126 35,350 47,700 34.9% 4300 Fees, Services 84,601 30,000 30,000 0.0% 4301 Auditing 6,000 6,000 6,000 0.0% 4310 Telephone 5,578 10,000 7,000 (30.0%) 4320 Utilities 42,521 85,000 90,000 5.9% 4330 Postage 5,170 8,000 7,000 (12.5%) 4340 Printing & Publishing 1,926 8,500 3,000 (64.7%) 4350 Cleaning & Waste Removal 170 500 500 0.0% 4360 Subscriptions & Memberships 377 400 400 0.0% 4370 Travel & Training 3,306 4,500 8,000 77.8% 4410 Rental-Equipment 1,259 1,500 1,500 0.0% 4440 License & Registration 23 250 100 (60.0%) 4483 Insurance-General Liability 13,000 13,000 13,000 0.0% 4509 Remit to Other Agencies 1,380,304 1,200,000 1,300,000 8.3% 4510 Repair & Maintenance-Building 245 1,700 1,700 0.0% 4520 Repair & Maintenance-Vehicles 524 1,800 2,000 11.1% 4530 Repair & Maintenance-Equip 6,963 12,000 12,000 0.0% 4531 Repair & Maintenance-Radios 100 (100.0%) 4551 Repair & Maintenance-Sewer 40,041 75,000 70,000 (6.7%) 4553 Emergency Sewer Repairs 26,600 40,000 40,000 0.0% TOTAL CONTRACTUAL SERVICES 1,618,'608 1,498,250 1,592,200 6.3% TOTAL SEWER OPERATIONS 1,958,620 1,893,500 1,962,100 76 This page intentionally left blank. 77 CITY OF CHANHASSEN 2009 BUDGET Commentary Enterprise Fund - Surface Water Management Fund-720 Mission and Current Services This fund serves as the financing mechanism for the construction and maintenance of storm water infrastructure, including storm sewers, storm water ponds and other storm water improvement projects. The improvements that occur with regard to storm water runoff, water retention and other water issues will improve the quality of the City's lakes, streams, and ponds. Budget Highlights Budgeted expenditures are proposed to decrease by 47.8% from the previous year. The funds decreased were transferred into capital improvement projects, rather than shown as operating costs. Future Trends As a part of the update of the Surface Water Management Plan, the City has identified high- priority areas. These priorities are reflected in the capital improvement projects. Additional priorities have been established to comply with section 1030 of the Clear Water Act including NPDES and non-degradation requirements. Outcomes The budget provides the salary and wages for three (3) full-time positions including the Water Resources Coordinator, Environmental Resources Coordinator, and Natural Resources Technician. Activities include all those related to Forestry, Natural Resources and Water Resources. These activities include: Staff to the Environmental Commission Recycling Forestry Arbor Day Community Gardens Stormwater Management including drainage complaints Wetland Permitting Erosion and sediment control inspection and enforcement NPDES/MS4 Compliance TMDL Requirements 78 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS 720 Surface Water Management Fund 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) REVENUE PERMITS 3328 Wetland Alteration 855 1,000 1,000 0.0% TOTAL PERMITS 855 1,000 1,000 0.0% CHARGES FOR CURRENT SERVICES 3533 Other Grants 0.0% 3660 Sewer Customers 443,673 410,000 450,000 9.8% 3662 Utility Penalties 8,475 7,000 8,000 14.3% 3806 Connection Charges 260,401 350,000 200,000 (42.9%) TOTAL CURRENT SERVICES 712,549 767,000 658,000 (14.2%) OTHER REVENUE 3801 Interest Earnings 211,032 150,000 150,000 0.0% 3903 Refunds and Reimbursements 0.0% TOTAL OTHER REVENUE 211,032 150,000 150,000 0.0% TOTAL REVENUE 924,436 918,000 809,000 (11.9%) REVENUE OVER/(UNDER) EXPENDITURES 442,900 345,400 397,875 79 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS Surface Water Management Fund 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INCI DEC) 4010 Salaries & Wages-Reg 109,962 128,500 126,000 (1.9%) 4020 Salaries & Wages-Temp 5,000 10,000 100.0% 4030 Contributions-Retirement 14,604 18,200 18,200 0.0% 4040 Contributions-Insurance 16,342 16,100 19,000 18.0% 4050 Workers Compensation 729 800 900 12.5% TOTAL PERSONAL SERVICES 141,637 168,600 174,100 3.3% 4120 Supplies-Equipment 141 500 5,000 900.0% 4130 Supplies-Program 10,239 1,500 7,500 400.0% 4150 Maintenance Materials 97 20,000 25,000 25.0% 4210 Books and Periodicals 100 200 200 0.0% 4240 Uniforms & Clothing 300 100 (66.7%) TOTAL MATERIALS & SUPPLIES 10,577 22,500 37,800 68.0% 4300 Fees, Services 316,912 350,000 175,000 (50.0%) 4301 Fees, Financial/Audit 8,000 8,000 8,000 0.0% 4310 Telephone and Communications 279 325 100.0% 4340 Printing & Publishing 194 10,000 2,500 (75.0%) 4360 Subscriptions & Memberships 280 3,500 2,000 (42.9%) 4370 Travel & Training 1,808 4,500 4,500 0.0% 4380 Mileage 348 500 400 (20.0%) 4410 Rental-Equipment 5,000 5,000 0.0% 4483 Insurance-General Liability 1,500 1,500 100.0% TOTAL CONTRACTUAL SERVICES 329,321 381,500 199,225 (47.8%) TOTAL EXPENDITURES 481,536 572,600 411,125 80 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS 720 Surface Water Management Fund 7201 Recycling 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC) REVENUE INTERGOVERNMENTAL REVENUE 3520 Grants-County 1,727 2,000 2,000 0.0% TOTAL INTERGOVERNMENTAL REV 1,727 2,000 2,000 0.0% CHARGES FOR CURRENT SERVICES 3650 Sale of Recyclables 52 0.0% TOTAL CURRENT SERVICES 52 0.0% TOTAL REVENUE 1,779 2,000 2,000 0.0% REVENUE OVER/(UNDER) EXPENDITURES (34,555) (49,900) (50,300) 81 CITY OF CHANHASSEN 2009 BUDGET 720 Surface Water Management Fund 7201 Recycling 2008 to 2007 2008 2009 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET % INC/(DEC 4010 Salaries & Wages-Reg 20,815 21,200 21,800 2.8% 4030 Contributions-Retirement 2,778 3,000 3,200 6.7% 4040 Contributions-Insurance 5,140 5,300 4,900 (7.5% ) 4050 Workers Compensation 157 200 200 0.0% TOTAL PERSONAL SERVICES 28,891 29,700 30,100 1.3% 4130 Supplies-Program 1,964 4,500 4,500 0.0% 4210 Books and Periodicals 100 100 0.0% 4260 Small Tools & Equipment 100 100 0.0% TOTAL MATERIALS & SUPPLIES 1,964 4,700 4,700 0.0% 4300 Fees, Services 3,000 15,000 15,000 0.0% 4340 Printing & Publishing 2,153 1,700 1,700 0.0% 4350 Cleaning and Waste Removal 66 500 500 0.0% 4360 Subscriptions & Memberships 210 200 200 0.0% 4370 Travel & Training 50 100 100 0.0% TOTAL CONTRACTUAL SERVICES 5,479 17,500 17,500 0.0% TOTAL RECYCLING 36,334 51,900 52,300 0.8% 82 CITY OF CHANHASSEN 2009 BUDGET ENTERPRISE FUNDS 720 Environmental Protection 7202 Reforestation 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET REVENUE INTERGOVERNMENTAL REVENUE 3533 Grants-Other 0.0% TOTAL INTERGOVERNMENTAL REV #DIV/O! CHARGES FOR CURRENT SERVICES 3640 Community Garden Plot Rental 1,780 1,500 1,500 0.0% 3650 Sale of Recyclables 1,357 1,500 1,500 0.0% TOTAL CURRENT SERVICES 3,137 3,000 3,000 0.0% TOTAL REVENUE 3,137 3,000 3,000 0.0% REVENUE OVER/(UNDER) EXPENDITURES (73,763) (76,800) (77,200) 83 CITY OF CHANHASSEN 2009 BUDGET 720 Surface Water Management Fund 7202 Reforestation 2007 2008 2009 ACCOUNT DESCRIPTION ACTUAL BUDGET BUDGET 4010 Salaries & Wages-Reg 20,815 21,200 21,800 2.8% 4030 Contributions-Retirement 2,778 3,000 3,200 6.7% 4040 Contributions-Insurance 5,139 5,300 4,900 (7.5%) 4050 Workers Compensation 157 200 200 0.0% TOTAL PERSONAL SERVICES 28,890 29,700 30,100 1.3% 4130 Supplies-Program 4,339 6,000 6,000 0.0% 4260 Small Tools & Equipment 0.0% TOTAL MATERIALS & SUPPLIES 4,339 6,000 6,000 0.0% 4300 Fees, Services 41,343 39,500 40,000 1.3% 4320 Utilities/Community Garden 501 1,900 1,900 0.0% 4340 Printing & Publishing 1,223 1,600 1,100 (31.3%) 4360 Subscriptions & Memberships 124 100 100 0.0% 4370 Travel & Training 480 1,000 1,000 0.0% TOTAL CONTRACTUAL SERVICES 43,670 44,100 44,100 0.0% TOTAL REFORESTATION 76,900 79,800 80,200 0.5% 84 APPENDIX 85 This page intentionally left blank. 86 City of Chanhassen Public Purpose Expenditure Policy Every City of Chanhassen expenditure must be valid based upon the public purpose for which it is purchased and the specific or implied authority found in State Law. The following are deemed to meet the Council definition of public purpose expenditures: MEETING FOOD/MEALS The City Council recognizes that situations in which City business needs to be discussed can and do occur during meal hours (Le. luncheon meetings). In addition. there are public and employee meetings and events in which reasonable refreshments may add to the success of the meeting and/or event and create a more productive work force. The following items are deemed to meet the Council definition of public purpose expenditures in regards to food and meals. 1. Meals and refreshments are allowed at City meetings and events that have a purpose of discussing City issues. These meetings would normally have a pre-planned agenda and occur during normal meal hours. 2. Meals and refreshments are allowed at employee meetings and events that have a purpose of discussing City issues or are a part of an employee training. These meetings would also normally have a pre-planned agenda. This does not include routine staff meetings. 3. Meals and refreshments are allowed when they are part of a breakfast/lunch/dinner meeting for official city business when it is the only practical time to meet. Usually these meals involve meeting with City councilmembers, committee/commission members, or local business/fraternal organizations. 4. During official meetings of the City Council, council committees, advisory boards/commissions, and taskforces. 5. Meals purchased by an employee, councilmember, or agent while at a conference or other training event may be reimbursed by the City provided that an appropriate receipt is provided. Such receipt must be itemized and include who the meal was purchased for, and will specify what was included in the purchase. 6. Reimbursable travel expenses for employees or councilmembers are outlined in the City of Chanhassen Personnel Policy. 7. The City will not purchase or reimburse any employee, councilmember, or agent for the purchase of intoxicating liquor or malt beverages. 87 The costs of these meals are included within individual department's budgets. These budgets are approved annually by the City Council as a part of the overall budget approval process which includes a public hearing on the proposed budget. MEMBERSHIPS AND DUES The City Council has determined that the City will fund memberships and dues in professional organizations and City social and community organizations when the purpose is to promote, advertise, improve or develop the City's resources and advantages and not solely for personal interest or gain. The cost ofthese memberships and dues are included within individual department's budgets. These budgets are approved annually by the City Council as a part of the overall budget approval process which includes a public hearing on the proposed budget. EMPLOYEE REGOGNITION PROGRAM The City of Chanhassen City Council recognizes the hard work and service performed by the employees ofthe City of Chanhassen through a formal Employee Recognition Program. The City Council believes the benefits of attracting, retaining and motivating employees through an Employee Recognition Program support employee job satisfaction, which in turn impacts cooperation and productivity. The result is to provide excellent public and customer service to better serve the interests ofthe citizens ofthe community. The Employee Recognition Program is considered "additional compensation" for work performed by employees but is entirely dependent on receiving funding from year-to-year. 1. Service recognition awards shall be given to all regular and full-time employees who have completed continuous years of service. The following awards have been established: a. Five (5) years - $25 in selected merchandise b. Ten (10) years - $50 in selected merchandise c. Fifteen (15) years - $75 in selected merchandise d. Twenty (20) years - $100 in selected merchandise e. Twenty- five (25) years - $150 in selected merchandise f. Thirty (30) years - $200 in selected merchandise g. Thirty-five (35) years - $250 in selected merchandise 2. The costs of these recognition awards are included within individual department's budgets. These budgets are approved annually by the City Council as a part of the overall budget approval process which includes a public hearing on the proposed budget. 3. The City supports events that are planned and paid for by employees. Examples of such events include but are not limited to the summer picnic, potluck meals, and holiday parties. The City Council understands that these events may occur during normal working hours, and 88 if approved by the City Manager or his/her designee, employees will not be required to use vacation or compensatory time for such events. 4. The City Manager has the authority to approve other forms of recognition including issuance of flex time or compensatory time as he or she sees appropriate. CREDIT CARD USE The use of credit cards by any employee otherwise authorized to make purchases on behalf ofthe City is permitted, provided that purchases made by credit card must comply with all statutes, rules, and/or Council policy applicable to City purchases. The use of City credit cards shall be limited to purchases on behalf ofthe City and no other purpose. CELLULAR TELEPHONES Practice The City recognizes that technology is advancing and cellular telephones are becoming a part of City equipment assigned to certain City employees. In recognition ofthat fact, the City has adopted a practice governing the use of cellular telephones. The development ofthis practice will encourage the wise use of available technology for the benefit of citizens in order to deliver City services in an efficient and cost-effective manner. It will also establish guidelines for the appropriate and efficient use of cellular telephones by City personnel. Guidelines: The City may purchase cellular telephones for employees who have a business necessity to telephone others and receive calls while outside of City buildings, or for employees' personal safety. Cellular telephones are City equipment and are to be used by authorized employees to conduct business in a professional manner. Employees are responsible for the proper care and handling of all City equipment in their possession. Cellular numbers shall not be given out to the general public except by the employee assigned that number. Calls will be limited to those that are necessary in order to perform assigned duties based upon circumstances at that time. Calls that are not urgent will be made by other means. All calls will be held to the shortest duration possible. Elaborate conversations will be held in person or by other means. City employees having access to assigned City-owned cellular telephones during non-business hours may make necessary personal telephone calls during non-business hours. In return for the City paying for the basic calling plan, the employee will be required to be available 24 hours a day, 7 days a week for emergency contact, providing the dollar value of calls does not exceed the 89 monthly calling plan rate charged for that particular cellular telephone. Personal use of City- owned cellular telephones should be kept to an absolute minimum during business hours. If the calling plan rate is exceeded because of personal calls made during business and/or non-business hours, the employee shall reimburse the City the dollar value of personal calls that exceed the calling plan rate. Calling plans shall be selected based on the City's needs and shall not be adjusted to accommodate personal use by the employee. Employees must also reimburse the City for all personal cellular calls made where a toll or fee is charged. Compliance: On a monthly basis, cellular telephone bills from each cellular telephone will be submitted to the Finance Department. If the dollar value of calls does exceed the monthly cellular plan rate, a summary of personal calls shall be attached to the bill and will include the date of the call, the time, the number to which the call was made and the signature of the employee who made the call. Also, a monthly reimbursement form for each cellular telephone (if necessary) will be submitted to the Department Head. The employee should attach a personal check made payable to the City of Chanhassen for reimbursement of personal calls made over the calling plan rate. The Department Head will then: 1. Compare cellular telephone bills against this practice, and 2. Forward the cellular phone bill to the Finance Department. Safety: In the interest of safety, if calls are made inside a vehicle, employees are encouraged to bring vehicle to a complete stop when answering cellular calls. All outgoing calls, whenever practical, should be made with the vehicle in a stationary position. Hands-free devices shall be used when available. Cautionary Note: Employees should be cognizant that cellular telephone communications are not a secure form of communication. Sensitive information should be conveyed through a more secure form of communication. Assignment of Department Cellular Telephones Department Heads or the City Manager must pre-approve all calling plans based on departmental needs. Adopted by the Chanhassen City Council on November 25, 2002. 90 Purchasing Policy City of Chanhassen, Minnesota Adopted on February 10, 2003 Amended on July 14, 2003 June 26,2006 July 14, 2008 91 Section 1. Purchasing Guidelines 1.1 Goals and Objectives This purchasing manual was created to: Clarify and reconcile the sometimes confusing requirements of state purchasing law, departmental procedures, and the finance department processes. Provide a comprehensive resource book for staff to be effective and efficient when making purchases. Standardize purchasing and payment methods to expedite the purchasing process. The standards in this manual are minimum standards to ensure fiscal responsibility. Departments may set more restrictive procedures to meet their own budgetary accountability. 1.2 ADA Compliance The City of Chanhassen is subject to the provisions of the Americans with Disabilities Act (ADA). The Chanhassen City Council adopted an ADA compliance plan which outlines how the city complies with the Act. In general, the city will consider the needs of people with disabilities as it purchases equipment and configures work and public areas. 92 Section 1. Purchasing Guidelines 1.3 Quick Reference Guide Value of Purchase Quotations Needed Payment Request Approvals Needed Prior Options to PurchasinQ Less than $100 None Petty Cash Department Yes Credit Card Finance No Check Request City Manager No City Council No 100-$4,999 Departmental Discretion Credit Card Department Yes Check Request Finance No Purchase Order City Manager No City Council No 5,000-$10,000 Two Written Quotes or Check Request Department Yes RFP's Purchase Order Finance No City Manager No City Council No 10,000-$24,999 Two Written Quotes or Check Request Department Yes RFP's Purchase Order Finance No City Manager Yes City Council No 25,000-$99,999 Two Written Quotes or Check Request Department Yes RFP's Purchase Order Finance Yes City Manager Yes City Council Yes Greater than $100,000 Sealed Bids Check Request Department Yes Purchase Order Finance Yes City Manager Yes City Council Yes Notes: If a cooperative purchasing agreement is in place, quotations are not needed. All purchases must be approved as part of the annual budgeting process or within the CIP. RFP's are required for contracting services in excess of $25,000 on an annual basis except from the consultant pool (see RFP section of this document). The city. manager may delegate authority for approval of agreements less than 25,000 (see Agreement Processing section of this document). Purchases between $10,000 and $25,000 have to be approved by the City Manager. The city council has pre-approved payment for utility accounts and payroll 93 transfers that occur in the normal course of business even though they may exceed $25,000. These are contractual accounts for services that are approved as part of the budget process. The vendors that fall under this situation include Minnegasco, Northern States Power, Metropolitan Council Environmental Services, United States Treasury, State of Minnesota, Medica, PERA, and St. Paul Companies and other similar companies. Any payments to these vendors that are outside the normal course of business will be presented to the City Council for individual approval. 94 Section 2. Purchasing Practices 2.1 Ethics I Relations with Vendors The City of Chanhassen holds its employees to the highest ethical standards. Purchases shall be conducted so they foster public confidence in the integrity of the city's procurement system, and open and free competition among prospective suppliers. In keeping with this value, employees should avoid the following practices when making purchases on behalf of the city: Circumventing competitive bidding requirements. Examples of this include: Splitting purchases so that they can be made through several small purchases. Using the emergency procedure process when no true emergency exists. Using a 'sole source' exemption when competition is available. Denying one or more vendors the opportunity to bid on a contract Examples of this include: Using unnecessarily restrictive specifications. Pre-qualifying bidders on a discriminatory basis. Removing companies from a bidders list without just cause. Requiring unnecessarily high bonding. Giving favored vendors an unfair advantage. Example of this include: Providing vendors with information regarding their competition's offers in advance of a bid opening. Making information available to favored vendors and not to others. Giving un-favored vendors inaccurate or misleading information. Accepting gifts from vendors. Minnesota Statutes ~471.895 prohibits government employees from receiving gifts except where they are included as part of the cost of a product, good, or service provided (such as a meal provided as part of a conference). 95 Section 2. Purchasing Practices 2.2 Recycled Content Environmentally preferable products are goods and services that have a lesser or reduced effect on human health and the environment when compared with other goods and services that serve the same purpose. The following is an overview of items that should be considered prior to making a purchase. Details relating to the items can be found at the Solid Waste Management Coordinating Board web site at www.swmcb.org. Office Products - General Erasable boards - alternative to paper flip charts Self-stick fax addressing labels - alternative to full-sized fax cover sheets Electronic software presentations - alternative to transparencies Solar-powered calculators and other devices - eliminates the need for batteries Refillable pens, pencils, and tape dispensers - eliminates waste Reuse file folders and binders - applying new labels extends their usefulness E-mail - alternative to paper memorandums Double-sided copies - reduces paper waste Reusable kitchen dishware - reduces waste Purchase products in reusable, refillable, or returnable containers -containers may be sent back to the vendor for reuse Copy Paper and Envelopes Recycled content - when possible, purchase 100% post-consumer paper Chlorine-free paper - buying chlorine-free paper reduces pollution. Choose paper labeled as 'Processed Chlorine-Free" (PCF) White and pastel paper - fluorescent colors make copy paper harder to recycle Purchase white and pastel-colored copy paper - dark colors, plastic windows, and padding make envelopes harder to recycle Printing Services Low volatile organic compounds - choose a printer that uses low-VOC water- based or agri-based inks and press chemicals Inks - avoid inks containing heavy metals such as barium, copper! and zinc. Colors to avoid include fluorescent colors, warm red, and metallics Glue, Coatings, and Foil Stamping - use glueless bindings and uncoated paper when possible. Avoid foil stamping and heavy ink coverage 96 Office Machines Copiers - save paper with copiers that feature automatic duplexing and multi-page printing. Purchase remanufactured copiers and models that can use remanufactured toner cartridges Computers and Monitors - choose models that can be easily upgraded Printers - when possible, choose printers with duplex units to save paper. Look for models that are certified as star compliant (can cut energy use by more than 65%) Printer Toner Cartridges - purchase remanufactured toner cartridges from suppliers that will reuse spent cartridges Vehicles Motor Oil - purchase re-refined oil when possible Antifreeze - purchase extended life antifreeze that is designed to last five years/150,000 miles or longer Fuel - the use of 85% ethanol blended fuels (E85) reduces carbon monoxide and ozone-producing emissions Plastic Lumber and Treated Wood Plastic Lumber - alternative to chemically treated wood Treated Wood - purchase only AGO treated wood Office Cleaners Reusable, Returnable Packaging - purchase cleaners in concentrates Plastic Waste Bags - purchase bags that are made from recycled materials Paint Latex Paint - purchase latex paint rather than oil-based paint. Paint should be 10% to 100% post-consumer content Carpet Purchase recycled rubber-backed carpet tiles that can be replaced as they wear Office Furniture and Panels Remanufactured Furniture - Purchase remanufactured furniture when possible. When purchasing new furniture, look for recycled content including metal, PVC and other plastics, pressboard, and fabric. 97 Section 3. Authorization The City of Chanhassen has a decentralized purchasing program where individual departments are responsible for making their own purchases. There are a few exceptions including the supplies maintained in the office supply closet, paper and stationery products, and modular furniture and chairs. The front desk receptionists will assist staff members who need help with research or purchase of items in cases where staff are not familiar with particular products. Payment Authorization Process 1. Determine the need for commodities and services. 2. Research the cost of the purchase and determine proper purchasing alternative. 3. Determine the appropriate account coding and whether there is sufficient funds available in that budget line item. 4. Forward request to department director or designee for approval. If purchase exceeds $5,000 and is less than $15,000 approval is needed by City Manager. 5. Department director forwards request for payment with invoice to the Finance Department for approval and input into financial accounting system. 6. Finance produces check register for approval by the city manager or his/her designee and review by city council. 7. Payment is made by the finance department. 98 Section 4. Purchasing Alternatives 4.1 Sealed Bids A formal sealed bid procedure is required for all purchases in excess of $50,000 except professional services. A published notice of bid is required in the official city newspaper at least seven days in advance of bid opening. The published notice must state where the plans and specifications can be obtained by bidders and specifically, where the bid opening will be held. The notice may also be published on the city's official web site; however, this publication is in addition to the official newspaper publication. All bid openings are to be administered by originating department. The preparation of all specifications are to be the responsibility of the originating department. Required authorization for plans and specifications is the responsibility of the originating department. The city council must formally approve the bid contract. The originating department then files the contract with the administration department. 4.2 State, County and Other Cooperative Purchasing Contracts State Cooperative Purchasing Contracts - The City of Chanhassen participates in the State of Minnesota Cooperative Purchasing Venture (CPV). This enables participants to buy goods and services at a reduced cost under the terms of contracts already negotiated by the State of Minnesota. The finance department has access to the releases and listings of products/services that can be purchased on state contract. If it is determined that a product/service is on a state contract vendors should be told that the purchase will be made using that contract. When completing the purchasing paperwork, note that the purchase is per state contract and indicate the contract number. 4.3 Quotes If a purchase is estimated to exceed $10,000 but not to exceed $50,000, the purchase may be made either by sealed bids or by direct negotiation based upon quotations. If a purchase is made in this range, staff members are required to obtain at least two written 99 quotes. These quotes should be in writing. If the quotes are not written, the requestor who received the verbal quote must document the quote in writing. All such quotes must be forwarded to the finance department with the purchasing documents. 4.4 Emergency Emergency situations may arise where the normal purchasing process cannot be followed for the procurement of goods and services. An emergency must be a situation arising suddenly and unexpectedly which requires speedy action essential to health, safety, and welfare of the community, and not just an inconvenience. 4.5 Request for Proposals (RFP) RFPs may be used to solicit proposals for professional services. Typical information to address in RFPs includes: Background and scope of the project The project's budget to ensure that the proposals stay within that range. Proposal requirements should include adequate information to allow for propert review and evaluation including: Description of firm and qualifications, including any specialized experience related to the project. A list of similar projects the firm has completed. Project timetables including: estimate of hours, breakdown of hours by phase, and the city's expectation for a completion date. e Designation of a firm principal who will be in charge of the project. Resumes for all staff who will work on the project. Statement that either no subcontractors are allowed or that all subcontractors will be identified and are subject to the city's approval. Estimate of cost to provide the service, outline of fee schedule and payment schedule. Description of city's selection process. City's evaluation criteria, which typically may include: Quality and thoroughness of the proposal. Similar past experience and/or expertise. References Cost estimate The following statement must be included: The city reserves the right to reject any and all proposals, waive all technicalities and accept any proposal deemed to be in the city's best interest. Submittal deadline: date, time, project name, and addressee. Statement: "Proposers are solely responsible for delivery of their proposals to the city before the deadline. Any proposal received after the deadline will not be considered and will be returned." Information about where questions should be directed. Note: Staff should make sure that all proposers are given the same information. 100 Attach a copy of the agreement proposed to be used for the project, including the city's insurance certificate. The agreement includes provisions to which the firm must agree, so it is important that they see the agreement up front. It is suggested that the RFP be submitted to the city attorney for review prior to distribution. 4.6 Leases/Purchases All lease agreements need approval through the finance department and legal counsel prior to initiating a lease. 4.7 On-Line Purchases The following guidelines are recommended for purchasing products over the Internet: Only purchase from vendors that use secure servers for e-commerce. Most sites will have a disclaimer, but some do not have the disclaimer language. If in doubt, either send an e-mail to the vendor or call them. Ask vendors if they have an 'Extranet" available on their web site as an alternative to credit card payment. If it is, log on to the Extranet where purchases may be made using a password. Payment terms are specified by the city employee at that time. This is the preferred method. When using a credit card, follow the standard purchasing guidelines that are used when paying by credit card on the telephone. It is generally safe to use a credit card on the Internet, but be cautious - see the first item in this subsection. 101 Section 5. Payment The City of Chanhassen uses various processes in making payments for goods and services. 5.1 Standard Purchase Orders Purchase orders are used when required by the vendor to acknowledge the city's request for goods and services. A copy of the purchase order will be sent to the vendor when requested. Obtain purchase order numbers from finance department. Once invoice is received and purchase order complete, return completed purchase order with invoice attached and authorization for payment to the finance department. 5.2 Check requests Used for processing payment for claims list or immediate pay. If travel advance is needed, a check request may be processed on immediate payor claims list. Once invoice is received and check request complete, return completed check request with invoice attached and authorization for payment to finance department. 5.3 Immediate Payment The finance department policy is for bills to be paid on the claims list. For certain exceptions, immediate pay may be used under the following guidelines: Immediate pay is for payments that need to be made prior to claims list. Such items include getting discounts, avoiding late charges (Le.: credit card payments), purchases requiring payment with order, etc. Immediate pay checks will be issued weekly. All requests for immediate pay checks must be submitted to the finance department prior to noon on Wednesday. Checks will be issued, mailed, or returned to appropriate department on Thursdays. Requests for immediate pay may be submitted on a purchase order, check request, or expense voucher. Return completed form with attachments and authorization for payment, to the Finance Department. 102 5.4 Blanket Purchase Orders, Charge Accounts, and House Accounts The city uses blanket purchase orders, charge accounts, and house accounts for frequently used vendors. This process requires submission of receipt with an account code and department approval. All new open accounts must be authorized by the requesting department director and finance department. 5.5 Invoices Invoices must be attached to a completed check request, purchase order, or expense voucher along with proper authorization. Documentation must be returned to the finance department to be processed on claims list. 5.6 Statements The finance department tracks all statements-reviewing for old invoices or credits. For vendors where the city has open accounts, the finance department only pays once a month after matching invoices to the statement. All statements are to be mailed directly to the finance department. 5.7 Account Coding All requests for payment including check request, purchase order, or expense voucher must have an eleven digit code to process payment. Refer to department budget for reference of line item code Helpful hints for completing payment process: Eleven digit code -101 (fund) 1120 (department or project) 4210 (office supplies) Description - specific description of up to 30 characters. Vendor address line -limited to four lines. 103 Invoice Number - important to prevent duplicate payment. Computer generated material preferred. Handwritten is acceptable if legible. Open account slips - indicate eleven digit financial code. Request for new business unit or object code. 5.8 Petty Cash Used for reimbursement to employees for items $100 or less for expenditures made on behalf of the city. An expense voucher must be completed, with a receipt attached, with proper departmental authorization obtained prior to reimbursement. Employee must provide a signature for reimbursement from the finance department. 5.9 Guidelines for Payment Processing Invoices must be attached to the check request, purchase order, or expense voucher. Processing of payments on claims are due according to the schedules that are distributed to city staff at the beginning of each year. Immediate pays are due by noon on Wednesday in the finance department, with checks issued the following day. All requests for payments must have eleven digit code to process payment. Refer to department budget line item codes for proper coding. All statements must be sent to the finance department. 5.10 Credit Cards The city will issue credit cards to certain individuals to allow for more efficient purchasing and to make purchases at businesses that no longer allow open accounts. To assist the finance department in ensuring consistency, accuracy. and thoroughness, the following are procedures to be followed for credit card use: Credit cards must be obtained from the finance department. Cards will be distributed to those departments that can demonstrate a need, such as efficiency or because vendors do not allow open accounts. 104 The cards will be issued to departments with transaction and balance limits. No cash advances are allowed on the credit cards. The responsible person will review the credit card statement each month and code each expenditure, which needs to be signed by the department director and forwarded to the finance department. 5.11 Electronic Funds Transfer Electronic Funds Transfer may be required in some cases to complete a business transaction. The funds are transferred electronically from the parties bank accounts. Some instances may include transactions with the State of Minnesota, a federal agency, another local government, or a closing agent in the purchase or sale of real estate. These transactions need to follow the same guidelines for payment p~ocessing in Section 5.9. 5.12 Expense Reimbursement Expense vouchers are required for reimbursement to employees of city-related expenses on a monthly basis. (Sample expense voucher on page 32) If larger expenses are incurred, more than one voucher may be reimbursed in one month. All expense vouchers must contain proper account codes, department approval, and receipts must be attached where applicable. Expense vouchers greater than $50 will be reimbursed by check issued on the next immediate pay check run. 105 Section 6. Agreement Processing Agreement Forms Agreements need to be reviewed by the city attorney unless they follow a previously used format such as Contracts for Private Redevelopment. However, if attachments to the agreement modify the agreement or provide new terms, the agreement should be reviewed by the city attorney. The city attorney's review must occur prior to submission for a council agenda and/or signatures. The city attorney must review an agreement if it is written on the other party's form, or if a special agreement is being drafted. Please note: These provisions apply to ALL agreements, including maintenance agreements, service contracts, etc. Authorization Levels The city manager is authorized to sign agreements up to $25,000 in value. Council authorization is required where a contract exceeds $25,000, and the agreement must be signed by the mayor and the city manager. Where council authorization is required, a copy of the agreement must be included with the council Letter. Transmittal Form/Signatures Once the agreement is approved, the other party should submit the original of the agreement for signatures (as many original copies can be submitted as required, but the city requires one original copy for the central agreement file). The agreement packet must include the agreement, any required bonds, and the certificate of insurance. A transmittal form-available from the administration department-(sample agreement and transmittal form) must be completed and routed to the city attorney with the agreement packet. After the city attorney approves the packet, the agreement should be forwarded to the city manager and the mayor depending on the contract amount) for signatures. The originating department is responsible for circulating the agreement for signatures. Be sure to note on the transmittal form the date the insurance expires, and any special conditions, for instance, if the agreement calls for performance by a specific date. The transmittal form should also note the termination date of the agreement (either a specific date, when a condition is met, or that it is an ongoing agreement). Original to Administration The central agreement file is maintained by administration. Once the agreement has been fully executed, the ORIGINAL must be submitted to the administration department for placement in the central file. The originating department may keep a copy of the agreement for the department file. The administration department assigns agreement numbers. 106 Section 7. Capital Outlay And Fixed Assets 7.1 Capitalization Threshold Capital outlay purchases are for items costing more than $5,000, are a tangible asset, and have a life expectancy of more than one year. These items must be included in each department budget in expense account 4701-4762. It should be noted that delivery charges and sales tax must be included as a cost of the item purchased when determining if the purchase is a capital outlay item. If the individual purchase is greater than $5,000 the item is a capital outlay purchase and now should become a recorded fixed asset. The amount to record for that fixed asset would be any charge "to place the asset in its intended location and condition for use." For example if the city were to purchase a street vehicle, all of the following would be considered part of that asset: the vehicle, warning lights, decals, delivery charges, sales tax, licensing, and any other costs to put the asset into its usable condition. Like items that are used together, for example - meeting room chairs, that are used together 7.2 Acquisition When a fixed asset is purchased, a fixed asset form needs to be filled out by the department making the purchase. The forms are kept in the finance department. The form should be completed when the entire cost of the asset can be supported by vendor invoices. The total of these vendor invoices should be the amount recorded for that asset. It should also be noted that all acquisitions should follow the city's capital replacement schedule when applicable. 7.3 Tracking and Transfer Once the asset is recorded on the city's financial accounting system, it is the responsibility of the assigned department to notify the finance department of any assets that have been transferred to a different department. This needs to be done by filling out a fixed asset form with the required information. In addition, at the end of the year, a physical count of all fixed assets will need to be done by each department assigned assets. This count will be done at or near the end of the calendar year. Each department will be provided a list of assigned assets by the finance depaQment. The count will then be made by the department with any discrepancies noted on the list provided. 7.5 Deletion or Disposal of Fixed Assets When an asset is sold or disposed of the assigned department must complete a fixed asset form with the required information in order for the finance department to remove the asset from the financial accounting system. This includes items that are disposed of with no sale or trade value. Once again disposals should follow the capital replacement policy of the city. 107 Section 8. Disposal of Surplus Property 8.1 Auction The city disposes of surplus equipment through public sale in accordance with council policy. Throughout the year the city collects items to be sold at public auction and sends them to an auctioneer with a description and number of items to be sold, and makes arrangements for those items to be transported. The auction house will forward a tabulation of the bids received along with payment. The information is reviewed by the equipment manager and then the payment is forwarded to the finance department. A fixed asset removal form must be filled out when an item sold at auction was listed on the fixed asset system. 8.2 Computer Equipment When a piece of computer equipment has reached the end of its useful life with the city, it may be disposed of in one of the following ways: Sealed bids; Donation to non-profit or governmental agency (city manager approval required); Sell through auction; Recycle through computer recycling vendor; Dispose of as waste (unless it contains hazardous material) if the disposal cost is less than $100; There may be costs associated with recycling or disposal of certain computer equipment such as eRTs in which case purchasing guidelines should be followed. 108