HomeMy WebLinkAboutCity Council Packet 09-06-2011 SpecialCITY OF PLYMOUTH
AGENDA
SPECIAL COUNCIL MEETING
September 6, 2011, 6:00 p.m.
MEDICINE LAKE CONFERENCE ROOM
1. CALL TO ORDER
2. TOPICS
A. Discuss 2012/2013 Budget
B. Set Future Study Sessions
C. Announcement from Councilmember Kathleen Murdock
3. ADJOURN
Special Council Meeting 1 of 1 September 6, 2011
rp City of Agenda 2APlymouthNumber:
Adding Quality to Life
To: Laurie Ahrens, City Manager
SPECIAL
COUNCIL MEETING Prepared by: Cal Portner, Administrative Services Director
September 6, 2011 Reviewed by:
Item: Budget Meeting #4
1. ACTION REQUESTED:
Review presented budget materials and provide staff direction for the Preliminary 2012 tax levy
which will be approved for certification to Hennepin County on September 13, 2011.
2. BACKGROUND:
This is the fourth Council Budget Meeting. At the August 23, 2011, meeting the Council was
presented with tax impact information for the median valued home in Plymouth (Scenario A).
The levy impact on the median value home was a 5% increase.
Council requested two budget scenarios. Scenario B provides for the same general levy as in
2011. The impact of the same levy on the median valued home is a 3.91 % increase over 2011.
Scenario C provides for the budgetary outcome of a zero tax impact on the median value home.
In order to maintain the same tax levy on the median value home, $1,294,000 will need to be cut
from the proposed 2012 budget and $1,310,358 from the 2013 budget.
The following reflects budgets from 2009 to the 2013 proposed:
SCENARIO A: PROPOSED
2009 2010 2011 2012 2013
Levy 28,347,568 28,175,301 28,176,682 28,465,392 28,790,254
Levy Change % 0.61% 0.00% 1.02% 1.14%
Gen Fund
Budget 27,932,495 29,326,925 29,591,112 30,222,613 30,476,115
Increase % 4.99% 0.90% 2.13% 0.84%
SCENARIO B:
Zero % levy increase over 2011: Levy 28,176,682 28,497,896
Levy Change % 0.0% 1.14%
GF Budget 29,933,903 30,183,757
Reduction from proposed GF Budget 288,710 292,358
SCENARIO C:
Zero % tax increase on the median value: Levy 27,171,392 27,479,896
Levy change % -3.57% 1.14%
GF Budget 28,928,613 29,165,757
Reduction from proposed GF Budget 1,294,000 1,310,358
SCENARIO A
The original budget presented to Council contained a 2012 levy increase of 1% and a 2013 levy
increase of 1.14%. The budget includes the elimination of five positions and the reduction of
two other positions.
SCENARIO B
Reducing the levy in Scenario B requires a cut of $288,710 from the proposed budget. Staff
recommends the following cuts and adjustments to maintain the 2012 levy at the 2011 level:
200,000 Reduce Contingency
90,000 Buy down property/casualty insurance premiums with reserves
In 2013, for Scenario B, to maintain the proposed increase, the budget would need to decrease
by $292,358. To decrease the 2013 budget, staff recommends the following reductions:
100,000 Buy down property/casualty insurance premiums with reserves
200,000 Reduce the Capital Improvement Fund Levy
Beginning in 2012, we are changing our Property/Casualty insurance program to account for
claim activity. Because departments will repay the Risk Management Fund for claims, the fund
will have an ongoing revenue source. The existing fund balance is proposed to be used to offset
the premium costs until the fund balance meets city policy.
The Capital Improvement Fund has been used for railroad crossing improvements, the public
safety building expansion, Hilde improvements, West Med Lake Park pavilion planning, and
city center entrance signage. The fund currently has a cash balance of $2.7 million and is
projected to have a year-end balance of $3.5 million in 2013. The CIP includes $105,000 in
2013 and 2015 for Railroad crossing improvements.
SCENARIO C
Reducing the tax impact on the median value home to zero requires an expenditure/revenue
adjustment of nearly $1.3 million for 2012 and an additional $1.3 million in 2013. Following is
a list ofpotential budget cuts and revenue enhancements to meet the 2012 budget:
200,000
150,000
50,000
100,000
50,000
50,000
15,000
10,000
10,000
15,000
16,000
80,000
Reduce Capital Improvement Fund Levy
Reduce Contingency (2012 only)
Increase Salary Vacancy Rate — freeze openings (2012 only)
Offset Property/Casualty Premiums with reserves
FD Eliminate Public Education Program
PD Eliminate Public Education Program
PR Reduce Beach Program — close one beach
PR Reduce Plymouth Arts Program
PR Reduce Contribution to Music in Plymouth (from $30K)
PR
PR
PW
200,000 PW
Reduce Seasonal Forestry Employee
Eliminate Neighborhood Park Spraying
Reduce Asphalt/Concrete work
Eliminate Cul de Sac Slurry/Sealcoat Program
30,000 REV Add Signal Light Utility Fee
70,000 REV Add Streetlight Utility Fee
REV Add Utility Franchise Fees
REV Increase Field Maintenance Fees
In Scenario C for 2013, $1,310,358 would need to be cut in addition to the 1.14% increase to the
levy. The 2013 budget already includes a reduced contingency, higher salary vacancy and a
reduced Park Maintenance Levy. The 2012 revenue budget includes deferred building permit
revenue from 2011, which likely will not be realized in 2013. The 2013 budget does not include
potential bond payment costs for Open Space bonds which may be sold in 2012.
The remaining budget gap would need to be closed by further service reductions. The city
currently has 244.5 authorized Full Time Equivalent positions, of which 172.75 are in the
General Fund, nearly half of theses are in the police department. A reduction of $1.3 million
equates to the elimination of 15-20 positions. Considering the 35 positions eliminated or
proposed to be eliminated since 2009, cutting an additional 20 positions will result in significant
service impacts across all departments.
BUDGET IMPACTS 2010-2014
Following is a brief review of budget measures that have occurred in recent years or are
available for consideration in the current proposed biennial budget.
2010 3. Deferred building permit revenue from 2011
1. Cut programming 4. Added new Park Replacement Levy
2. Eliminated 24 positions 5. Wage/Benefit inflationary increases
3. Utilized bond savings from maturing debt 6. Sell remaining Open Space Bonds? (2013
payments
4. Increased electric utility reimbursement
5. Wage freezes
6. Low interest income impacted revenue
2011
1. Wage freezes
2. Low benefit increases
3. Eliminated vacant positions
4. Absorbed new Open Space Levy
5. Increased permit revenue slightly
6. Low interest income impacted revenue
2012
1. MVHC levied
2. MSA Aid increase for street maintenance
payment)
2013
1. Levy limits?
2. Decrease contingency
3. Increase vacancy rate
4. Buy down P/C insurance with fund balance
5. Decrease Capital Improvement Fund Levy
6. Decrease Street Recon Levy
7. Add Open Space Bond debt payment (?)
8. No deferred permit revenue projected
9. Wage/benefit inflationary increases
2014
1. Levy Limits?
2. Bond debt matures
rp)City of
Plymouth
Adding Quaky to Life
SPECIAL
COUNCIL MEETING
September 6, 2011
Agenda 2BNumber:
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.
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 on Peony Lane
Discuss trails
Update with City Manager — fall
Other requests for study session topics:
Review dangerous dog regulations/process (JW)
Discuss streamlining street lighting rates
Update on surplus City properties
Four Seasons Mall Study (Oct. 11, 5:00 suggested)
rp) City of
Plymouth
Adding QoaWy to Life
REGULAR
COUNCIL MEETING
Sept. 6, 2011
Agenda 2CNumber: v
To: Mayor and City Council
Prepared by: Laurie Ahrens, City Manager
Item: Accept Resignation of Ward 2 Councilmember
Kathleen Murdock
1. ACTION REQUESTED:
Adopt a motion to accept the resignation of Ward 2 Councilmember Kathleen Murdock effective
September 30, 2011.
2. BACKGROUND:
Councilmember Kathleen Murdock has announced her resignation as the Ward 2 representative on
the Plymouth City Council, effective September 30, 2011. She has requested that the City Council
adopt a motion to accept her resignation.
Councilmember Murdock's term was slated to expire on December 31, 2014. The Plymouth City
Charter Section 2.07 provides that when a vacancy occurs, the Council shall adopt a resolution at its
next regular meeting declaring the vacancy to exist. This item will be placed on your September 13
agenda. The Council then must appoint an eligible person to fill the vacancy until the next regular
municipal election when the office is filled for the unexpired term. If the Council does not appoint an
eligible person within 60 days, the Mayor shall appoint an eligible person to fill the vacancy.
The Council has historically solicited applications from residents and conducted interviews;
however, there is no charter or statutory requirement to do so. The Council could simply appoint an
individual to fill the vacancy for approximately one year until the next local election. The Ward 2
position would then be placed on the November 2012 ballot to fill the remaining two years of the
term.
ALlgust 31. 2011
The Honorable kelli Slavik
Mavor
Citw of PIN'1110LIth
Dear heili_
I am writing to announce my resignation as the 'Ward 2 representative on the Plymouth
City Council effective September 30, 2011.
Recently 1 decided to retire from Hennepin County after 33 years of service. In
discussing m}' retirement with PEIA, I discovered 1 would need to terminate all PEPS.
employment in order to receive a pension. Therefore, I need to resign from the City
Council as well.
It has been a great honor for me to serve as a cauncilmember for almost five years, and
two years on the Planning Cominission before that. I commend your leadership and have
learned a great deal from my peers on the council and the highly professional staff.
Per the PERA "Verification of Termination" form that is enclosed, they require a copy of
the ,governing board's meeting minutes showing acceptance of my resignation. I am
hoping that we can do this at our September 6 meeting.
I hope you find a replacement that \•ill make for a smooth transition. If there is anything
I can do to help in that process, please let me know.
Since/ely_
Kathleen Murdock