HomeMy WebLinkAboutCity Council Packet 06-14-2011 SpecialCITY OF PLYMOUTH
AGENDA
SPECIAL COUNCIL MEETING
June 14, 20117 5:30 p.m.
MEDICINE LAKE CONFERENCE ROOM
1. CALL TO ORDER
2. TOPICS
A. Review 2012/2013 Budget and Council expectations
B. Set Future Study Sessions
C. Update with City Manager
3. ADJOURN
Special Council Meeting 1 of 1 June 14, 2011
rp)City of
Plymouth
Adding Quality to Life
SPECIAL
COUNCIL MEETING
June 14, 2011
Agenda ANumber:
To: Laurie Ahrens, City Manager
Prepared by: Jodi Bursheim, Finance Manager
Reviewed by: Cal Portner, Administrative Services Director
Item: Budget Trends and Forecasts
1. ACTION REQUESTED:
Discuss budget projections and trends, and provide direction to staff to prepare the biennial
budget for years 2012-2013.
2. BACKGROUND:
The Council has set meetings for the 2012-2013 biennial budget discussion. Attached is the
proposed budget calendar for this year. Following is an outline ofrevenue and expenditure
areas that may impact the preparation of the 2012-2013 budget.
RFVFNTTF
Levy Limits
With the State Legislature adjourned and awaiting special session, it appears we will continue
the levy limit mandate as we have over the past three years. As you know, the levy limit
maintains a number of special levies that are not subject to the limit such as public safety wages
and benefits, PERA increases, and bond debt.
The Levy limit calculation, not to exceed 3.9%, utilizes the implicit price deflator (IPD) and is
based upon the changes from July of each year. According to the Municipal Research and
Services Center, the IPD is projected to be 2.865% in July. Over the past five years, the IPD
average was 2.14%
Market Value Homestead Credit (MVHC)
The legislature approved a change to the MVHC program that removes cities from the
reimbursement. Property owners would receive adjustments to their value to affect the same
amount of credit.
The city has not received the market value credit for the last few years. In past years, the city
received approximately $500,000 that was receipted into the Street Reconstruction fund.
Permit Revenue
In 2010, the city took in $48,000 more in revenue than budgeted. Staff has recommended some
fee changes that would offset credit card processing costs. Community Development projects
modest growth for the next few years with approximately $25,000 in new revenue.
Page 1
Fines/Forfeitures
The city ended the year for 2010 with $180,000 in less fine/forfeiture revenue than anticipated.
The 5 -year trend shows a steady decline each year with 2006 having $913,824 in court fine
revenue to $721,053 in 2010.
Interest Revenue
Interest revenue remains extremely low. Changes in the market will likely not yield additional
revenue in the short term. The city continually reviews the investment strategy with our
investment brokers to maximize yield while maintaining a conservative approach in this type of
market.
EXPENDITURES
New for 2012
At this time, staff has not discussed the addition of new resources or programs. The capital
improvement plan (CIP) includes $40,000 from the General Fund for Fire rescue equipment.
Street Reconstruction Levy
The city levied $2,607,790 for street reconstruction for 2011, $75,955 (3%) more than the year
before. Due to the delay in reconstruction and changes in philosophy, the Street Reconstruction
Fund will not need bonding for the next biennium.
Open Space Levy
The 2011 levy added a new debt service payment of $263,259 for the second issue of open space
bonds. There is approximately $3.3 million in bonding authority available from the voter -
approved referendum.
Retaining Walls/Fences/Sidewalks
Staff has identified a need for capital to replace, repair, and maintain retaining walls, fences, and
sidewalks. We currently budget for the repair and replacement of streets, parks and trails, but
not for retaining walls, fences, and sidewalks. Staff is currently working on gathering cost
estimates for these replacements. The council may want to consider planning for these costs
during this budget cycle or provide direction to staff to address in the future.
Sales Tax increase
Minnesota voters elected to increase the state sales tax by .375% for environmental protection
concerns a couple of years ago. The legislative impasse has led to speculation of tax increases
and the possible removal of sales tax exemptions. If the city were to lose exemptions for sales
taxes, such as for professional services, we could expect a significant expenditure increase. For
2011, the city budgeted over $19 million for contractual services.
Fire Fighter Pension
Market changes due to the economy have created pension fund issues in a number of cities
including Minnetonka and Bloomington. Those cities have levied funds to make up for lost
investments. The City of Plymouth is continuing to monitor the situation. Our most recent
actuarial report indicates the pension fund is sufficient.
Page 2
Projected Wage/benefit Increases
The city general fund wages in 2010 were approximately $13.7 million; public safety accounted
for $6.2 million of this amount. Maintenance and Clerical/Technical/Professional union
contracts are settled for 2012 and include a 1% general increase plus step increases.
The patrol officers and sergeants are currently in negotiations for 2011 contracts and did not
receive pay increases in 2010 due to an arbitration finding.
Non -represented personnel have not received general pay increases since 2009.
Salary Allocations
Employee salary allocations should be reviewed to ensure proper distribution.
Energy increases
The city is currently under contract for motor fuels through 2012 so we do not anticipate
additional costs. Staff reviews utility costs regularly and do not expect significant increases in
energy costs.
Internal Service Funds
Internal service fund allocations have been reviewed. Adjustments were made in 2010 and 2011
to correct a historical imbalance of charges between funds. For 2012, we have the addition of
new fire equipment and operational costs which will contribute to further adjustments of
allocations. An increase of approximately $300,000 will be needed to maintain the fleet and
facility funds.
BUDGET INNOVATION TEAM
In 2010, the city manager identified a number of key managers to participate in a team building
program. The success of the training session opened the discussion to involve the managers in a
number of other exercises for professional development.
For the 2012/2013 biennial budget, the Managers group was tasked to review the city budget,
identify efficiencies, redundancies and innovative ways to provide services.
The team has identified several areas that will be further reviewed and incorporated into budget
proposals by departments.
NEW INITIATIVES
If the City Council has any new initiatives or desires services changes it would be helpful to have
that direction prior to preparation of the initial draft of the budget.
3. ATTACHMENTS:
Budget Calendar
Page 3
F)City of
Plymouth
Adding Quo[ity to Life
BUDGET CALENDAR
2012-2013 Biennial Budget Preparation & 5 -yr Capital Improvement Plan
Date I Category I Description
April 27 Budget Managers receive budget instructions for Budget Innovation
June 1 Budget Budget Manager's Innovation Discussion
June 14 Budget Council Budget Trends Overview - Budget Meeting #1
June CIP CIP Kickoff
June 1-25 Budget Allocations updated by Finance
June 20 Budget HR Personnel Information Complete
June 17 Budget Budget materials are distributed to Dept Directors
June 17-30 Budget Budget Entry
July 1-19 Budget Budget Team Review
July 20 Budget Budget information ready for Council packet
July 26, 2011 Budget Council Budget Meeting #2
August 2 CIP Council Review of CIP
August 10 Budget Budget information ready for Council packet
August 16 Budget Council Study Session - Budget Meeting #3
September 6 Budget/CIP Tentative Council Study Session (if needed)
September 13 Budget City Council adopts preliminary property tax levy and budget
September CIP/CEP Planning Commission Approval
December 13 Budget Public Hearing on Budget
December 13 Budget Council adoption of biennial budget
December 13 CIP/CEP Council adoption of CIP/CEP
Page 4
Page 2
rp)City of
PlymOubth
Adding Quaky to Life
SPECIAL
COUNCIL MEETING
June 14, 2011
Agenda BNumber:
To: Mayor and City Council
Prepared by: Laurie Ahrens, City Manager
Item: Set Future Study Sessions
1. ACTION REQUESTED:
Review the list of pending study session items and schedule dates as desired. Calendars are
attached for your use.
Page 1
Pending Study Session Topics
at least 3 Council members have approved the following study items on the list)
Discuss paperless Council packets (CC — report provided)
Meet with prosecutor for update and discuss Police Department's trends and
statistics
Update with City Manager - fall
Other requests for study session topics:
Review dangerous dog regulations/process (JW)
Meet with departments to review trends (KS)
Discuss streamlining street lighting rates
Update on surplus City properties
Social host ordinance
Page 2
City of
Plymouth
Adding Quality to Life
June 2011
Modified on 06110/ 11
Page 3
1 2 3 47:00 PM
PLANNING
COMMISSION
MEETING
Council Chambers
5 6 7 8 9 10 11
7;00 PM 7:00 PM
ENVIRONMENTAL PARK It REC
QUALITY ADVISORY
COMMITTEE COMMISSION
EQC) MEETING PRAC) MEETING
Council Chambers Plymouth Creek
Center
12 13 14 15 16 17 185:30 PM 7:00 PM
SPECIAL COUNCIL PLANNING
MEETING* COMMISSION
Medicine Lake Room MEETING
Council Chambers
7:00 PM
REGULAR COUNCIL
MEETING
Council Chambers
19 20 21 22 23 24 2 57:00 PM 8:00 AM
HRA MEETING MUSIC IN
Parkers Lake Room PLYMOUTH
5K RUN
Hilde Performance
Center
26 27 28 29 30
7:00 PM 5:00 PM
REGULAR COUNCIL MUSIC IN
MEETING PLYMOUTH
Council Chambers Hilde Performance
Center
Review Budge Council Expectations
and Up ate with City Manager
Modified on 06110/ 11
Page 3
r Plymouth
Adding Quality to Life
July 2011
Modified on 06110/ 11
Page 4
1 2
3 4 5 6 7:00 PM 7 8 9
PLANNING
COMMISSION
INDEPENDENCE INDEPENDENCE DAY MEETING
DAY OBSERVED Council Chambers
CITY OFFICES
CLOSED
10 11 12 7:00 PM 13 7:00 PM 14 15 16
REGULAR ENVIRONMENTAL
COUNCIL MEETING QUALITY
Council Chambers COMMITTEE
EQC)
MEETING
Council Chambers
17 18 19 20 7:00 PM 21 22 23
PLANNING
COMMISSION
MEETING
Council Chambers
24 25 26 5:00 PM 27 7:00 PM 28 PM7:00 29 30
SPECIAL COUNCIL PLYMOUTH HRA MEETINGMEETINGADVISORYParkersLakeRoom
Budget Study Session COMMITTEE ON
Medicine Lake Room TRANSIT (PACT)
MEETING7:00 PM Medicine Lake RoomREGULAR
COUNCIL MEETING
31 Council Chambers
Modified on 06110/ 11
Page 4
r Plymouth
Adding Quality to Life
August 2011
Modified on 06110/ 11
Page 5
2:30-5:00 PM
1 2 3 4 5 6NIGHTTOUNITE7:00 PM 7:00 PM
KICKOFF PLANNING HUMAN RIGHTS
Plymouth Creek Center COMMISSION COMMITTEE
6:00 PM MEETING MEETING
SPECIAL COUNCIL Council Chambers Medicine Lake Room
MEETING
2012-2016 CIP
Medicine Lake Room
6:30-9:30 PM
NIGHT TO UNITE
7 8 9 10 11 12 137:00 PM 7:00 PM
REGULAR COUNCIL ENVIRONMENTAL
MEETING QUALITY
Council Chambers COMMITTEE
EQC) MEETING
Council Chambers
14 15 16 17 18 19 206:00 PM 7:00 PM
SPECIAL COUNCIL PLANNING
MEETING COMMISSION
Budget Study Session MEETING
Medicine Lake Room Council Chambers
21 22 23 24 25 26 277:00 PM 7:00 PM
REGULAR COUNCIL HRA MEETING
MEETING Parkers Lake Room
Council Chambers
28 29 30 31
Modified on 06110/ 11
Page 5