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HomeMy WebLinkAboutCity Council Packet 08-24-1995 SpecialPLYMOUTH CITY COUNCIL BUDGET STUDY SESSION THURSDAY, AUGUST 24, 1995 5:00 P.M. Public Safety Training Room 5:00 - 5:15 1. Discussion of Auditor's recommendations and staff response 5:15 - 5:30 2. HRA Budget request 5:30 - 5:50 3. General overview of 1996 budget and major issues Late changes/corrections to budget requests New information on recycling fee for 1996 5:50 - 6:50 4. Identify issues/questions 6:50 - 7:00 5. Determine issues/questions for further consideration at the August 31 study session Dale Hahn Dave Crain, HRA Chair Dwight Johnson Council & Staff Council & Staff CITY OF PLYMOUTH 1996 PROPOSED BUDGET 1995 Typical Tax Bill Robbinsdale School District School 1,648 53% County 918 30% City and HRA 388 13% Special Districts 138 4% Total 3,092 100% CITY OF PLYMOUTH 1996 PROPOSED BUDGET MAJOR OPERATING FUNDS 1995 1996 GENERAL FUND 13,485,012 13,964,624 RECREATION FUND 809,917 788,728 HRA 1,713,319 1,493,094 WATER FUND 2,761,000 3,031,800 SEWER FUND 4,593,810 4,912,548 SOLID WASTE FUND 583,750 602,400 CENTRAL EQUIPMENT FUND 1,471,270 1,524,340 RISK MANAGEMENT FUND 556,302 561,936 WATER RESOURCES 2249281 DESIGN ENGINEERING 240,000 224,800 EMPLOYEE BENEFIT FUND 1,054,910 1,086,552 INFORMATION TECHNOLOGY 870,450 CITY OF PLYMOUTH 1996 PROPOSED BUDGET 11 affiffiffiffima MARKET SEGMENT COMPARISON Payable Payable 1995 1996 RESIDENTIAL $2,317,175,400 $2,558,394,600 COMMERCIAL 824,018,500 855,114,700 3,141,193,900 $3,413,509,300 1993 1994 NEW DWELLING UNITS: 628 650 CHANGE 10.4 3_8 8.7% 1995 PROTECTED 411 CITY OF PLYMOUTH 1996 PROPOSED BUDGET MARKET VALUE TRENDS Payable Payable 1995 1996 RESIDENTIAL NEW CONSTRUCTION 111,038,200 115,485,800 RESIDENTIAL APPRECIATION 57,230,100 39,796,700 RESIDENTIAL LAND 38,978,200 85,9069700 COMMERCIAL & INDUSTRIAL NEW CONSTRUCTION 8,695,800 199696,200 COMMERCIAL & INDUSTRIAL LAND 1,9419800) 49960,400 COMMERCIAL & INDUSTRIAL LOSS/ APPRECIATION 7,879,700) 6.469,600 TOTAL GROW771 206,120.800 272,315.400 U : Y CITY OF PLYMOUTH 1996 PROPOSED BUDGET ESTIMATE OF RESIDENTIAL PROPERTY TAX 1669800 HOME n.. ._A.&! _1 TT 1\eslueutlal ilullle,teau i axes ra aDle Est. 1996Actual1995 Market Value 158,600 166,800 1995 Percentages: 1 st $72,000 of MV X 1.0% 720 Balance of MV X 2.0% 1,732 1996 Percentages: 1 st $72,000 of MV X 1.0% 720 Balance of MV X 2.0% 1,896 Total Tax Capacity 2,452 2,616 City Tax Capacity Rate* 15.84% 15.05% CityTax 388.40 393.71 w::::.:v.v..:.xt:w:::v.:v::::::::::::::.:.nv.vv::::::.:v:::::::::::: m:::::::::. i::ii:}?:::::i::: Xi'F•:L:''::•: }:•i:?•:•ilii: j::::}$: i;.. T.}:^''.;";:... :4•.t:.}.: }::: • •. w: •: .:: •: • •: •: •.. .... .. t.. r} vtiii ii iir: i?n • v :} vi4ii:i .:. .. tY'.vv}ti;•:;:vy;:r t}x'l r}{ Iib: •: : }:.•. 1.:::?C:..?.:xtir}:::ij: iiii}iii: j,};.;.•.;{.}•::Y.{ii:n:::{:•i?iii{•x. n+fix::::::::: p::.v •:: i: 1. /. ;•:?:?Uh}:,,??:?.}: v: xt:•:. vvv: v+,:.}.{ryI.. : + :. vfn•vv:: w:::w:nn.....r,.,: n{v}:.v::.^•.:iiia}::f,.:m:.:-'.:i{::n:iC;}+:::.1}w:::: i•.vxitii::':i:iv:Civ.v;.v :r••. . •:.i:{{{.}}:?h:•: r: :•};.•:.i'. •X .:. •: ........ Includes HRA CITY OF PLYMOUTH 1996 PROPOSED BUDGET THE BOTTOM LINE CITY TAXES ON SELECTED HOMES INCREASE/ HOUSE VALUE PROPOSED DECREASE 1995/1996 1995 1996 OVER 1995 80,000 / $ 84,100 139 145 6 158,600 / $166,800 388 394 6 200,000 / $210,000 520 524 4 250,000 / $262,000 678 682 4 CITY OF PLYMOUTH 1996 PROPOSED BUDGET MAJOR ISSUES Fiscal Disparities Significant drop in value of commercial and industrial properties in 1993 and 1994 artificially deflated impact of fiscal disparties in 1995. Significant negative change between 1995 and 1996 ($2,552,000) in net impact on tax capacity is equivalent to $384,000 in tax revenue. 1994 and 1996 more accurate reflection of fiscal disparities. J 0Y CITY OF PLYMOUTH 1996 PROPOSED BUDGET MAJOR ISSUES Use of Projected 1995 Surplus Revenue and expenditure projections indicate a 1995 budget surplus of $385,000 Use funds to mitigate impact of tax increase and replenish reserve funds Recommendations 200,000 -- offset future tax abatements 85,000 -- lease purchase payments on dump truck 100,000 -- replenish Building Reserve and Computer Reserve CITY OF PLYMOUTH 1996 PROPOSED BUDGET MAJOR ISSUES REPLENISHING RESERVE FUNDS Major reserve funds have had significant "draws" in recent months Building Reserve contributed $1,000,000 to City Center Expansion, balance now $508,000 Computer Reserve will contribute $600,000 to fund computer upgrades Reserve funds important to funding replacement equipment and addresssing emergency needs 1996 budget adjusts rates to user departments to begin replenishing reserve funds Use of 1995 surplus for one-time infusion of dollars into these funds CITY OF PLYMOUTH 1996 PROPOSED BUDGET MAJOR ISSUES REVENUES Tax Abatements -- value losses are decreasing compared to prior years, estimate "exposure" at $130,000 in 1996. HACA -- legislative action reduces HACA by 78,590 for one year. Loss will be absorbed by Street Reconstruction Fund. Building Permit Revenue -- 1996 budget assumes 3% increase despite recent fee increase. Lower estimate contemplates a slow -down of building activity as City develops. r CITY OF PLYMOUTH 1996 PROPOSED BUDGET PERSONNEL REQUESTS FOR 1996 New Full Time Tax Supported Positions % General Fund Amount Police Officer* Assistant Engineer Accounting Technician Park Maintenance Worker New Non -Tax Supported Positions: Water Maintenance Worker Partially funded by Federal Grant 100 $ 21,839 50 30,568 40 15,019 100 26.750 94,176 CITY OF PLYMOUTH 1996 PROPOSED BUDGET CAPTAL EQUIPMENT Continue Equipment Replacement Program Replace Fire Truck Forestry Dump Truck Park Maintenance Mower Thirty minute Air Cylinders Computer Improvements network upgrades GIS workstations replace PC's software upgrades 300,000 26,000 20,000 14,000 244,400 City of Plymouth Cash/Fund Balances December 1994 General Fund Working Capital Public Facilities Fund Facilities Maintenance Central Services Fund Computer Replacement Central Equipment Fund Equipment Replacement Community Improvement Fund Future Capital Projects Permanent Improvement Revolving Fund Future Capital Projects Infrastructure Replacement Fund (Street Reconstruction) Future Capital Projects Storm Sewer District Funds Future Capital Projects Project Administration Fund Project Contingencies City and Community Parks Fund Park Improvements Neighborhood Parks Fund Park Improvements Park Replacement Fund Park Facilities Improvements Risk Manangment Fund Catastrophic Exposure 5,852,769 906,617 1,077,162 2,320,770 9,759,969 743,783 2,097,885 2,104,888 4,096,655 2,248,334 341,912 2,596,659 6,066,285 94RESERV.XLS Page 1 T QQ; . 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Fy , w, \ ' O 0 O• Ow o 3 C 00 OQ O O0 C3tI.. 619— (bCL I H CL rD 1 1 Planning In February 1995, the HRA began inten- sive strategic planning to determine its role in Plymouth's development over the next 5 years. Planning has focused on ac- tivities that will promote a variety of af- fordable, life -cycle housing opportunities; maintenance of the city's affordable hous- ing stock, and redevelopment of older, ob- solescent housing and commercial facilities. In implementing its plan, the HRA is committed to working in partner- ship with citizens, businesses, the City Council and other organizations. Through this process, the HRA has devel- oped a statement of its mission as the City's housing and redevelopment agency and a vision of what it hopes to accom- plish by the year 2000. Mission Statement The Plymouth Housing and Redevelop- ment Authority will promote and assist in the creation and maintenance of a vari- ety of affordable, life -cycle housing oppor- tunities for low and moderate income persons. It will encourage Plymouth's economic vitality through its active par- ticipation in the City's development and redevelopment activities. Vision Statement for Year 2000 By the year 2000, the Plymouth Housing and Redevelopment Authority will be a major contributor to creating a commu- nity. Which is supportive of quality afford- able housing. That offers a variety of affordable lifecy- cle housing choices dispersed through- out the City for residents and people who work in the community. Where the existing housing stock has been well maintained and the condition of older housing has been improved. Where some older commercial build- ings and areas of the. community have been redeveloped. Which has acquired additional re- sources to address affordable housing and redevelopment issues. Where the HRA works in partnership with citizens, businesses, the City Coun- cil, and other organizations. Plymouth HRA Plymouth City Center 3400 Plymouth Blvd. Plymouth, MN 55447-1448 612) 550-5050 612) 509-5410 (after 7/17/95) Plymouth Housing and Redevelopment Autho[w Y I Keeping Plymouth Strong HRA BUDGET DISCUSSION HRA Background A. Started in 1975 Council desire that Plymouth provide housing opportunities for all, regardless of income, age or family status. Well before "affordable" or "life -cycle" housingbecameanmajorpublicissue. Council concerned that low income residents would be "short-changed" by county and metro systems. B. Membership 5 members appointed by the City Council to staggered 5 year terms. Started with members being the mayor and council. As staggered terms expired, non-councilmembers were generally appointed. The exception has been that there has always been at least one current councilmember on the board. In fact the board has usually also included at least one former councilmember. This practice has been maintained to assure good coordination between the HRA and the Council. This is necessary because of the relatively independent status of the HRA and its financial responsibilities. Il. Services - 3 areas of activity A. Operates the CDBG program for the city. HRA recommends allocation of grant funds to Council and administers programs for the city. Over $3.2 million since 1977. B. Section 8 housing assistance program Administer federally funded certificate program for low income renters C. Plymouth Towne Square Unique locally financed 99 unit apartment complex for low income seniors. Subsidy is directed to residents, not the building. III. _ Strategic Plan - Developed in 1995 A. Mission statement B. Vision statement C. In teamwork with the City Council, citizens, businesses and other organizations consistent with city goals and policies. D. Implementation support for long range projects such as Elm Creek/Northwest Plymouth planning, Liveable Communities Act, economic development and redevelopment. IV. Budget - tied to the 3 areas of activity A. Bottom line: 1996 Manager's tax levy request is equal to 1995 budget at 371,500. This is 16% below the limit of $440,000. B. General Tax levy allocation: CDBG administration: $ 6,000 Section 8 administration 0 PTS, other $365,500 CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447 DATE: August 24, 1995 TO: Mayor and City Council FROM: Dwight D. Johnson, City Manager SUBJECT: Additional budget recommendations During the last several weeks, since we "went to press" with the draft budget, several necessary changes or corrections have come to my attention. 1. Music in Plymouth. The Plymouth Civic League has advised us that they need an additional $5,000 for the Music in Plymouth event. A letter is attached documenting the need for the money. Basically, the additional funding is needed because the event continues to get larger and more specifically, because $5,000 of their private funding for the fireworks has been lost. Since this is the most visible civic event of the year, attended by many thousands of residents, I recommend that we add an additional 4,500 to the Music in Plymouth donation in the Recreation Budget (a standard increase of $500 had already been included). 2. Housing and Redevelopment Authority Intern. The draft budget did not include funding for a housing intern for next year. As you know, we must develop and approve an entirely new housing plan for the City by the middle of next year, which will create an extraordinary work load in the short run. Accordingly, I recommend that we increase the HRA levy by $7,000 to allow for an intern for the first half of 1996. 3. Contingency Funds. In order to provide for items 1 and 2 above, I recommend that the general contingency allocation be reduced from $121,086 to 109,586. This measure will maintain the same tax rate proposed in the draft budget while including the two items above. My goal in developing the budget was to have a minimum of 100,000 in contingency, so I believe this change is acceptable. 4. Council salaries. The draft budget provided for the possibility of a 5 % increase in the salaries of Mayor and Council member. This was based on initial research of the salaries of other cities and the fact that it has been several years since the elected officials salaries have been reviewed. I have had two comments favoring deleting this item. The amount of the possible salary increase is $2,604. If deleted, I recommend that the funds be placed back into contingency, at least until final budget review in November. DATE: August 24, 1995 TO: Mayor and City Council FROM: Dwight Johnson, City Manager SUBJECT: 1995 Salary Allocation Resolution 94-400 established the Salary and Benefit Administration Policy. This policy mandates that the City Manager provide the City Council with a report on the salary allocation of all employees in relation to their respective ranges. A spreadsheet detailing this allocation is attached for your review during the 1996 budget process. The resolution also specifies that the City Manager report on the value of employee benefits. In 1995, the dollar value of benefits provided to employees is $1,054,910. In the proposed 1996 budget, the dollar value will be $1,086,552. Please call me or Kathy Lueckert should you have questions about the salary allocation spreadsheet. CITY OF PLYMOUTH SALARY AND BENEFIT ADMINISTRATION POLICY Resolution No. 94-400 July 18, 1994 This policy designates the authority and procedures for all salary and benefits and the method of amending salary and benefit policies and programs. This policy repeals and replaces Resolution 75-440 adopted August 18, 1975 relating to salary administration. 1. General Authority. The authority to establish and amend all compensation policies and programs for the City shall reside solely with the City Council. All authorized compensation policies and programs shall be contained solely in the City's Personnel Policy or approved contracts with bargaining units. The City Manager shall have responsibility to administer the compensation policies and programs with such discretion as the City Council may provide in its policies. In-kind" benefits shall be prohibited except as authorized by Charter or State Statute, and specific approval by the City Council. The compensation of the City Manager shall be fixed solely by the City Council by contract or other written authorization. The City Manager shall have no authority to take any action, directly or indirectly, that would increase the Manager's compensation. 2. Accounting for salary and benefit policies. All employee benefit programs shall be administered and accounted for through a separate Employee Benefit Fund, beginning January 1, 1995. The City's outside auditing firm shall be instructed to specifically test employee compensation compliance with established laws and policies. City Council review of salary and benefit programs. The City Council shall, at least one time per year, receive and review recommendations by the City Manager for revisions in the various salary ranges based upon changes in various economic factors. In addi_ ti_on he City Council shall receive and review a report on the glary allocation of all employees in relation to their respective salary ranges at the time of the annual budget review by the City. Council. The City Counc s so review the City's Personnel Policy at least one time each year and receive a report_ from the City Manager on the value of the City's benefit programs. 1995 Salary Census nAfA Ae Af _r!/AA 9n 1006 Grade Lava/ Job Title 1995 Salary flange No. of steps Employee Cont in Grade Annual Salary by Step Avarege Annual Sa/aryin Grade by Employee/Conftet Group 1 C Clerk/Typist 18,200 - 24,107 7 2 2-20,467 20,467 3C ClerklReceptionist 20,321- 26,915 7 3 1.22,859 24,384 1-24,128 1-26,166 5C Data ControUCashier 22,443 - 29,744 7 16 2-22,443 26,773 Meter Reader 1-23,857 Sr. Clark/Typist 1.25,251 4.26,644 4.28,059 4.28,891 6C Building Maintenance Worker 23,566.31,220 7 15 1-23,566 28,601 Community Service Officer 1-25,043 Data Control Clerk 4-26,520 Oats ControUlnspection Clerk 2.29,452 Engineering Aide - Office 4-28,891 Secretary 2-29,744 1.31,595 6M Maintenance Worker- Parks 23,296 - 31,450 7 31 1-23,296 30,957 Maintenance Worker - Streets 1-27,206 Maintenance Worker - Sewed 1.28,580 Water 28.31,450 8C Accounting Clerk 25,667 - 34,008 7 4 2-28,870 31,439 Computer Operator 2-34,008 8M Mechanic 26,936 - 33,009 7 3 3.33,009 33,009 10C Accounting Technician 27,726 - 36,732 7 4 1.32,905 35,346 Engineering Technician 1-34,652 Housing Technician 2.35,692 Sr. Secretary - Police 10M Leadperson - Parks 30,888. 33,945 7 6 6-33,945 33,945 Leadperson - Streets Leadperson - Sewer/Water Leadperson - Equip. Center Utility Operator IN Sr. Secretary - Planning 27,718 - 38,112 7 1 vacant) 32,905 e 1994 Rates 1995 Salary Census Data as of Jane ?n fawn Grade Level Job Title 1995 Solely flange No. of Steps Employee Coant in Grade Annaa/Sa/ary by Step Average Annual Salarym Grade by Employee/Contract Group 12C Computer Support Specialist 30,160 - 39,977 7 7 2.33,945 36,741 Forestry Technician 2-35,817 Housing Inspector 1-37,710 Housing Specialist 2-39,977 Planning Assistant Volunteer Coordinator Youth Services Officer 12S Exec. Secretary 30,161 - 41,471 9 1 1.41,475 41,475 14C Appraiser 32,198 - 42,660 7 3 1-36,233 39,714 2-41,454 16C Accountant 34,403 - 45,344 7 18 1-34,216 41,610 Associate Planner 1-36,358 Building Inspector 4.38,500 Eng. Aide. Inspection/Survey 2-40,643 Financial Analyst 1-42,764 Fire Inspector 6.44,054 Plumbing Inspector 3.45,344 Sr. Engineering Technician Solid Waste Coordinator 16P Police Officer 31,331 - 44,289' 9 34 4.32,208" 39,559 1-34,056 4-35,832 3-38,928 2-40,524 7-42,528 5-43,488 1-44,832 7-45,528 16S Forester 34,221.47,054 9 4 2-40,638 42,510 Recreation Supervisor 1-43,846 1-44,915 17C Commercial Appraiser 35,443 - 46,966 7 11 1-37,668 43,706 Communications Coordinator 2.39,873 Computer Programmer Analyst 1-42,099 Info. Management Coordinator 2-44,304 Project Coordinator 2-45,635 Property Management Coord. 2-46,966 1994 Rates 1995 Salary Census n..... r i... jn 188c Grade Level Job Title 1995 Salary Range No. of Steps Employee Count in Grade Annual Salary by Step Average Annual Solely in Grade by Employee/Contract Group Pub. Safety Educ. Specialist 1-47,444 Risk Management Coordinator Senior Appraiser Senior Planner 17P Investigator 40,097 - 46,269* 6 7 1 -44,556* 45,370 1- 45,528 2-46,872 3-47,568 17S Assistant Building Official 35,451 - 48,746 9 3 1-44,314 45,420 Finance Office Supervisor 1 -45,422 Support Services Supervisor 1 -46,530 18P Police Sergeant 48,264 - 52,704 3 8 1 -48,264 52,023 1 -50,688 6-52,704 18S City Clerk 36,889 - 50,723 9 7 1-43,806 47,596 Civil Engineer 2-46,112 Park Maintenance Supervisor 2-48,417 Personnel Coordinator 1-49,570 Sewer & Water Supervisor 1-50,723 Street Supervisor Water Resources Engineer 20S Assistant Engineer 42,498 - 58,435 9 7 2-54,450 56,353 Building Official 1-55,778 HRA Supervisor 3-57,107 Planning Supervisor 1-58,435 Public Works Superintendent Perks Superintendent Recreation Superintendent 21S Assistant Finance Director 44,911- 61,752 9 5 1-53,332 57,512 City Assessor 1-56,138 Information Systems Manager 1 -57,542 Lieutenant 1 -58,945 23S Captain 50,744.69,814 9 3 1 -57,121 62,413 City Engineer 2-65,054 Fire Chief 1994 Rates 1995 Salary Census BA/A A4 At _lima 2a seec Grade Leve/ Job Title 1995 Salary Range No. of Employee Count in Annual Salary by Average Annual Sa/arym Steps Step Grade by Grade Employee/Contract Group 26S Assistant City Manager 58,345 - 60,224 9 6 1-69,285 75,365 Director of Comm. Development 1-72,931 Director of Finance 3-76,578 Director of ParkslRecreation 1-80,224 Director of Public Safety Director of Public Works 27S City Manager 66,070.101,169 1 1-89,000 89,000 1994 Rates DATE: August 24, 1995 TO: Dwight Johnson, City Manager FROM: Fred G. Moore, Director of Public Works SUBJECT: 1996 SOLID WASTE BUDGET In June, when we prepared our proposed 1996 Budgets, we were still in the process of negotiating a contract for curbside recycling services. Because of what has taken place with increased market value of recycled material within the past six months, we were negotiating for a reduction in our cost of service. The rate before any reduction which we paid our recycling contractor was $2.05 per household per month. In preparing and submitting the budget we used the current rate of $2 per household per month for revenue. For expenditures for curbside collection contract services, we used a conservative estimate of $1.95 per household per month. This expenditure is only the amount paid to the contractor and does not include the other City expenses for staff to administer the Recycling Program or the yard waste portion of the program. In August, the City Council approved a new three year contract with our recycling contractor. This contract establishes a fixed rate for a one year period, July 1995 through June 1996. For the remaining two and a half years of the contract, our rate that we will pay the contractor will vary depending on the value of recycling materials. Based upon our revised contract we are now projecting that the $2 per month household charge could be reduced by $.42 for 1996 and the estimated revenue and expenditures would balance. This is a savings of $5.04 per month per household. I would recommend that for 1996 we reduce our charge to each household for recycling services from $2 per month to $1.58 per month. 9aumr.DW