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HomeMy WebLinkAboutCity Council Minutes 08-24-1993 SpecialMINUTES STUDY SESSION AUGUST 24, 1993 A special meeting budget study session of the Plymouth City Council was called to order by Deputy Mayor Edson at 4:30 p.m. in the Council Conference Room of the City Center, 3400 Plymouth Blvd., on August 24, 1993. PRESENT: Deputy Mayor Edson; Councilmembers Helliwell, Tierney, and Vasiliou ABSENT: Mayor Bergman ALSO PRESENT: John Sullivan, Financial Advisory Committee STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Finance Director Hahn, Assistant Finance Director Jacobson, Finance Office Supv. Leitner, and City Clerk Rauenhorst 1994 PROPOSED BUDGET City Manager Johnson presented the 1994 proposed budget. He stated the recommended budget is $13,139,500, which would result in a slight decrease in tax dollars levied. The levy rate would decrease from 18.04 to 17.46. He presented information on fund balances as of 12-31-92, including reserve funds. He stated residential values increased by 8.9 percent, while commercial/industrial values declined by 8.2 percent from 1993 to 1994. Overall, market values in the City increased by a net 3.6 percent. Manager Johnson stated the budget proposes using the 1993 General Fund surplus to retire debt which would be done in even increments for the remaining life of the bonds, saving $315,000. A portion of the surplus would also be used to offset anticipated tax abatements. Last year abatements totaled $127,000, and abatements are difficult to predict. The budget proposes eliminating the City Special Assessment Levy and the Storm Water levy. The Special Assessment Levy is no longer needed for its initially established purpose. He stated that additional monies are not needed for storm water fund improvements in 1994. He anticipates that the City would establish a storm water Capital Improvement Plan that would be drafted in 1994, and could be used as the basis to establish storm water utility fees for 1995. He stated the budget proposes increasing the Infrastructure Levy for street replacement by 120,000, for a total of $1.1 million, in order to stabilize the fund. This is based on a continuance of the current 70/30 cost sharing formula for street reconstruction projects. The proposed budget includes increased revenue from charges for services, the largest Budget Study Session August 24, 1993 Page 2 portion of which is a proposal to do some in-house engineering. He stated that the in- house engineering proposal appears to be financially positive for the City. Manager Johnson stated Plymouth is scheduled to receive $1.8 million in HACA in 1994. He suggested that a portion of this aid be applied to the Infrastructure Fund. This fund would be better able than the General Fund to absorb any reductions in HACA made by the state, and it would take some of the instability out of the General Fund. He stated the proposed budget would result in a tax increase of $5.39 on an average value home, the value of which increased from $140,000 to $145,000 for 1994. He explained that even though the proposed budget is $40,000 less than the previous year's budget, some residents will see minor tax increases because of the legislature's shifting in tax formulas from commercial to residential properties. Manager Johnson stated the General Fund revenues would increase by 9 percent from 1993, with the largest increase coming from anticipated revenues from in-house engineering ($258,000 estimated). Intergovernmental revenues would increase by 29 percent due to the additional school liaison officer. He stated that ad valorem taxes represent 72 percent of the total General Fund revenues. Information was presented on the City's revenue history and the 1994 General Fund revenue categories. He said that the budget for continued service levels is 4.4 percent higher than the 1993 adopted budget. The recommended General Fund Budget includes $574,000 in new initiatives. Another issue staff considered is how much new equipment should be purchased each year based on the growth of the City. This would be in addition to scheduled replacement of equipment. The amount of $285,000 is proposed for new equipment in 1994, $100,000 of which is for computers. In subsequent years, it is believed that $175,000 per year in new equipment will be needed. Councilmember Vasiliou questioned why the City purchases police squad vehicles in advance and stores them for future use. Finance Director Hahn stated squad cars are purchased up to nine months in advance because the City can purchase vehicles under the County contract once each year. The Council requested a report on the number of police vehicles in storage, as well as the replacement schedule. The Council reviewed the percent change in expenditure categories from 1993 to 1994. Manager Johnson noted that contractual services had increased substantially. Staff will report further on the reasons for this increase. Councilmember Helliwell requested information on the 1992 levy rate. Budget Study Session August 24, 1993 Page 3 The Council reviewed the department budgets as percent of the total 1994 budget. Councilmember Tierney asked staff to report back on whether the public safety portion of the budget, which is nearly 40 percent, is comparable to the percentage of other cities. Manager Johnson reviewed the major public safety recommendations in the 1994 proposed budget. He stated the primary objectives are to reduce committed patrol time from 59 to 56 percent and to improve daytime fire response time. He stated that committed patrol time is the time officers are actively responding to calls. Nationally, this is 35 percent. A reduction in committed patrol time would allow officers to spend more time on proactive police efforts. A new sergeant position is proposed which would ensure there is supervision for the late shifts. Two additional police officers, one Community Service Officer, and a part-time clerk typist are also proposed. Six firefighters are proposed to improve daytime fire response time. Deputy Mayor Edson asked for statistics on committed patrol time by shift. He also asked if there are technological changes that could be made, such as increased use of computers, to reduce committed patrol time. He noted as an example that officers have terminals in their vehicles that store case information until the officer is later ready to prepare an incident report. He stated that the staff has the ability to print out the information, but the officers do not use this function. Councilmember Helliwell stated that five additional firefighters were authorized in 1992 for the purpose of improving daytime response. She requested a report on whether they were hired for that purpose and if that improved response times. She also asked for information comparing the authorized number of firefighters with other communities. Deputy Mayor Edson asked whether Plymouth has more than enough response on weekends and evenings, but a shortage during the daytime. He asked how six new firefighters would be trained and integrated into the department. Finance Director Hahn stated Plymouth currently has an authorization of 65 firefighters. Manager Johnson stated that if the department was authorized to about 75, 25 firefighters could be assigned to each station and fire calls could be zoned. The Council requested information on what new services or projects could be accomplished with the addition of the public safety positions. Councilmember Vasiliou expressed concern over the requests in the budget for additional administrative positions. She requested a status report on the Public Safety Education Specialist position which was authorized for 1993, and asked if a police officer always accompanies the Education Specialist to neighborhood events. If so, this may not be cost effective. Budget Study Session August 24, 1993 Page 4 Manager Johnson stated the major recommendations in the parks and recreation budget are to maintain existing trails in all seasons, maintain new the playfields, preserve the urban forest, and continue the Park Patrol Program. One maintenance worker position, a leadperson promotion, a forestry aide, and two part-time clerical positions are proposed. The Council asked for information on what each of these new positions would do, as well as whether cross -training with other staff members could accomplish some of the tasks. Manager Johnson stated that many of the requested positions contained in the budget are actually requests to increase temporary or part-time positions to full-time positions. For example, the forestry aide position is currently an 80 percent position, and the request is to make it a full-time position. The Council requested information on the net number of new positions that are included in the proposed budget, and what new services could be provided if they are authorized. Manager Johnson explained the major recommendations in the area of management effectiveness. The proposed budget contains amounts for training and development of employees, classification study, microcomputer support, financial analyst, capital equipment, and replacement equipment. He stated that, in general, training and development is low city-wide and is currently less than 1 percent of the budget. Councilmember Vasiliou stated the City has spent considerable money the last several years on computer equipment and on studies of what computer equipment is needed. She asked when the system will be installed city-wide. Manager Johnson stated it is his opinion that Plymouth is behind in the area of data processing. Improvements in computerization will continue over time. Deputy Mayor Edson asked if the microcomputer support could come from existing personnel, rather than hiring an additional part-time person. Finance Director Hahn explained the current status of the microcomputer conversion. He stated that some support is already provided from clerical personnel in various departments. He stated that in addition to the microcomputer installations, the existing main frame computer has been in use since 1987. Within the next few years, revision of that system will also be needed because maintenance is getting very expensive. Manager Johnson stated the City has a reserve fund for that replacement. The Council discussed the proposed Financial Analyst position. Finance Director Hahn stated that this individual would manage the City's investments and do Budget Study Session August 24, 1993 Page 5 revenue/expenditure projections. He believes that the increased interest earnings on the City's investments will more than offset the salary for this position. The Council asked that staff report back on the impact of the expiration of the Carlson Tax Increment Financing district. They also requested information on what amount would need to be reduced so there would be no tax increase on an average value home. Manager Johnson stated that the 1994 budget proposes three new positions in order to do some engineering in-house. He stated the ongoing cost per year is estimated at $158,000, with revenues from this service estimated at $250,000. The first year there would be additional equipment costs. This service would add accountability and possibly eliminate duplicate inspection work, and appears very cost effective. The in-house engineering staff would perform primarily street reconstruction, along with minor trail and utility work. The Council requested that estimated revenues and expenditures on the in-house engineering service be prepared for Council review. Deputy Mayor Edson supported the concept of doing some in-house engineering work. He stated that this should result in better planning and would eliminate some of the profit that is paid to the consulting engineering firms. Councilmember Helliwell requested information on the number of new employees requested and recommended by department, as well as which permanent positions would be replacing temporary positions. The Council requested additional information on the social service funding requests. Councilmember Edson asked if the City would be at 40 percent General Fund reserve, based on the proposed 1994 budget. Manager Johnson responded yes. Manager Johnson stated that other initiatives contained in the proposed budget are hiring a street maintenance temporary worker, Canada Geese management, telecast of Planning Commission meetings, increased postage for neighborhood mailings, and replacement of the previously budgeted Development Services Technician with a Community Development Coordinator. Manager Johnson stated the Council is scheduled on September 13 to adopt the preliminary 1994 tax levy and set the public hearings for the proposed budget. The meeting was adjourned at 7:05 p.m. XL/G 22-Z, GGutt r"GZ Cit Clerk