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HomeMy WebLinkAboutCity Council Packet 09-10-2001 SpecialAgenda City of Plymouth Budget Study Session Monday, September 10, 2001 5:00 P.M. Police Training Room Call to Order 2. Discuss 2002 Proposed Budget Adjourn DATE: September 6, 2001 TO: Mayor and City Council FROM: Dwight D. Johnson, City Manager SUBJECT: Budget options for 2002 At the most recent budget study session on September 4th, the Council voted to request two additional budget options from the staff that would: 1. Reduce the General Fund spending increase to 6.7%, the same as the 2001 increase. 2. Reduce the General Fund spending increase to 6.6%. Staff has verified that a total additional adjustment of $82,681 would be needed to accomplish 6.7% goal and a total of $101,339 would be required to meet the 6.6% option in addition to the previously identified amount of $2,500. During discussion, a goal was established to identify budget adjustments that would not simply defer spending needs to a future year and would not create any need for higher taxes in 2003 and beyond. ADJUSTMENTS TO REACH A 6.7% GENERAL FUND SPENDING INCREASE: 1. Election Budget. Staff suggests reducing the budget by $30,150 and converting to a plan to fund the elections evenly each year, even though the major election costs occur only every other year. The $30,150 needed for 2002 can be obtained from a $32,000 election equipment reserve. The equipment reserve is deemed unnecessary since the County bought new election equipment for all the cities last year and proposes to do so in the future when necessary. 2. Police grants. The 2002 budget proposal contained an increase in spending for police of $44,571 for alcohol compliance, tobacco compliance, and auto theft prevention. Grants are covering all of the increased costs, but this expenditure was new for 2002 and was making the overall General Fund budget appear to be increasing more than normal. The police grants and the related expenditures can be moved into a separate fund outside of the General Fund so it will not appear to be new, permanent, tax supported spending. 3. Social Service budget. This budget can be reduced by $979 by not allowing any increase for any agency for 2002 except for North Hennepin Mediation budget which was funded for only a half year in 2001. The Council would be free at a later date to increase some agencies and reduce others within the framework of the same overall budget amount. 4. Reforestation budget. This budget is proposed to be reduced by an additional 7,000. The total will now be $50,000. Staff finds this reduction acceptable and sustainable in future years because other funds become available from time to time for tree planting through restitution from developers who do not meet the City's Tree Preservation Policy. Two developments that appear likely to occur in 2002 may produce significant restitution dollars for the City: Shadow Hills apartments and the Glacier Vista development proposal. The reforestation budget within the General Fund will still be twice what it was six years ago. Summary of adjustments: Elections 30,150 Police Grants 44,571 Social Services 979 Reforestation 7,000 Subtotal 82,700 These four items together will therefore achieve the first option of reducing General Fund spending to the 6.7% level. ADDITIONAL BUDGET ADJUSTMENTS TO REACH A 6.6% GENERAL FUND SPENDING INCREASE: The following additional suggestions are made to achieve the alternative 6.6% spending increase option: 5. Scalcoating. The budget allocation for sealcoating is proposed to be decreased by 7,000, which would bring the funding level back to the 2001 amount. The overall line item is combined with the crack sealing program, which is not being proposed for a reduction. 6. Goose roundup. The budget for removal of geese is $13,000. The Environmental Quality Committee and the City's water quality plans have identified that this is an important activity to continue to protect the City's lakes and ponds. Accordingly, it is suggested that this program be moved from the General Fund to the Water Resources Fund where it would be paid for by the Surface Water Fee recently implemented. With these two additional budget adjustments totaling $20,000, the Council's alternative goal of a General Fund spending increase of 6.6% would be met. CONCLUSION. Staff believes that these proposed adjustments would have minimal impact on current City services, operations and programs and also would meet the Council's goal of not creating problems for budgets in 2003 and beyond.