The URL can be used to link to this page

081009 CC WS AgP1. CONVENE CITY COUNCIL. WO SESSION 6:00 p.m. A. Roll Call Mayor Lizee Bailey Turgeon Woodruff Zerby B. Review Agenda 2. 2010 DRAFT BUDGETS 6:00 p.m. Police Chief's A. SLMPD Budget Draft Budget 15 minutes B. 2010 General Operating Budget Administrator 45 minutes & Finance Director's memorandum 3. ADJOURN 7:00 p.m. J r 24"" 3 S 11THTOWN ROAD SHOrzE'iv'OOD, MN 55331-6,)98 MEMORANDUM TO: FR : DATE: RE: Coordinating Committee Members Bryan Litsey, Chief of Police July 27, 2009 - Monday Executive Summary Revised 2010 Operating Budget Proposal T _V Office (1-j2) \ z. 4-3261 ra" (-a2/ ..74 .71 The upcoming Coordinating Committee meeting on July 29, 2009 marks the latest in a series of meetings since the initial budget proposal was presented. It has been refined several times based on the direction received from Coordinating Committee members and other contributing factors. Some difficult decisions had to be made due to current economic conditions and the financial challenges confronting the member cities. Staff has worked diligently to achieve a budget proposal that balances operational needs with a funding request that can be supported by the member cities. Although the proposal now before the Coordinating Committee has presumably achieved this objective, it is not without some vulnerabilities and shortcomings as already identified in previous documents and presentations. It also put on hold addressing the strategic goals that were identified last year as being key to the future of the organization. This could change if one or more of the federal stimulus grants applied for by the department were to be approved in the coming months. The budget now before the Coordinating Committee is the product of a methodical process that has further reduced what was already a lean initial proposal. The increase to the member cities has been reduced from 3.1 percent to a nominal 0.7 percent. This is less than the benchmark set by the Shorewood City Administrator of no more than 0.86 percent. If not for the projected loss of operating revenues, the cost to the member cities would have actually declined from 2009. Although the current proposal shows an overall reduction in expenses of 0.3 percent, this is countered with a loss in operating revenues of 8.5 percent. Included with the attached budget spreadsheets are detailed line item narratives for both expenses and revenues. Unlike many budgets, which use generic and boilerplate language, these narratives are specific to this budget proposal and explain the key components for each category. The same has been done for the funds supporting operations section of this budget proposal. Some of the more significant factors have been highlighted in this summary. 11 t Serving the South Lake Minnetonka Communities of Excelsior, Greenwood, Shorewood and Tonka Say ; A 8 f rm ~~ug Budget Proposal The majority of costs on the expense side are payroll related. A number of factors have contributed to there being a declining payroll for 2010. Recent and pending retirements of senior employees have temporarily reduced payroll costs, since new hires generally start at the lower end of the pay scale. When the initial budget proposal was prepared there was a possible retirement later in 2009 that would have been premature to take into account at the time. Now that this has become more of a certainty, payroll has been adjusted accordingly resulting in a further decline. Additionally, the Coordinating Committee has opted to hold the line on wages for 2010 other than scheduled step increases and other obligations. It is important to keep in mind, however, that the majority of full-time personnel are unionized and defined by state law as "essential employees." Consequently, binding arbitration replaces their right to strike. If union negotiations for 2010 end up in arbitration, the department would have to honor the arbitration award even though it has not been factored into the budget. All expense items were reviewed for further reductions as recommended by the Coordinating Committee. A number of these were tweaked in order to reflect no increases, which in actuality means less can be purchased with the same dollar amount if vendor prices increase. Other than payroll items, the utilities category was proportionately reduced the most through this process after reevaluating electricity and natural gas expenses for the building. The department recently retained a controls expert to fine-tune the HVAC system. So far, this seems to have made a discernable difference on the heating side, where increasing the efficiency of the boilers translates into less natural gas usage. Although preliminary results are encouraging, it seemed premature when preparing the initial budget proposal to take this into account before going through an annual heating cycle. Nevertheless, the current proposal assumes this trend will continue and more than offset any price increases. Additionally, there is no longer a hedge factored into the equation for the volatility in pricing for electricity and natural gas. Projected costs are based on past expenses without taking into account any potential rate hikes. This approach would be less concerning if the department maintained a higher reserve fund balance. The most significant revenue shortfalls are state police officer aid and investment income. These projections have been adjusted downward even further to account for there being no margin in the current budget proposal to absorb a further decline in revenues. This will be problematic if these or other revenues fall short of projections. There are other shortcomings about this budget proposal that need to be on the radar screen. These include the annual transfers that are made from the operating budget to funds in support of operations. The most dire of these is the insurance fund, where the annual transfers to this fund from the operating budget have not kept pace with rising insurance costs. It is anticipated this fund will likely be depleted by the end of 2009. Although the transfer amount to this fund has been increased significantly for 2010, it will likely need additional hikes in subsequent years to keep the fund out of a deficit balance. The balance in the technology fund is well below what is needed to maintain and replace critical hardware and software. Additionally, the annual transfer to this fund from the operating budget is barely enough to satisfy the annual lease, maintenance - I erating Budget Proposal k ~ ~4 Another focal point of concern is the capital maintenance of the public safety facility. The operating budget supports the routine maintenance of the public safety facility, including the scheduled service of equipment. This is a shared liability with the Excelsior Fire District (EFD). However, there is still no plan in place to fund the long-term capital maintenance of the facility, even though this has been mentioned numerous times in the past. It was one of the strategic goals highlighted last year as being critically important to maintaining the functionality of the facility as well as preserving this community asset. As a temporary measure, the department has been relying on the building fund that was initially established for its previous facility in Excelsior. It also funded the study of partnering with the EFD on a joint public safety facility, which ultimately occurred. This fund is not supported by the operating budget, other than when there has been a transfer of favorable year-end revenues. This fund is currently being tapped to pay the police portion of replacing the hazardous sections of the sidewalk outside the front entrance to the facility. This cost, coupled with some recent repair issues, will likely deplete much of the remaining fund balance, leaving the department with little in reserve to cover any further capital maintenance costs. As previously noted, the SLMPD proportionately has a leaner reserve fund balance than any of the member cities or the EFD. This provides little cushion at a time when there is a downturn in the economy and the operating budget is at a minimum. The department will soon have no other option but to invoice the member cities for capital building costs. Although current economic conditions have put on hold the prospect of incorporating the recommendations of the 2008 Strategic Planning Group, the need still exists and will only intensify in the years to come. It is important not to lose sight of the four strategic goals that were identified: Establish a timetable for phasing in additional police officers earmarked for the patrol division. P* Increase the overtime budget so that manpower issues due to training, illness, injured on duty, time off requests, etc. can be more readily accommodated in the work schedule. Maintain pace with changing technology. Have a sufficient fund balance available to upgrade, replace and add new technologies. Establish a capital fund for the long-term care and maintenance of the public safety facility. v a a 1aUV: Paget. Gx The most immediate need continues to be phasing in additional police officers earmarked for the patrol division. The attached article that appeared earlier this year in the Lakeshore Weekly News reaffirms that the South Lake Minnetonka Police Department (SL D) continues to have the least number of police officers per thousand residents of any police department in the Lake Minnetonka area. While a few of these police departments may be considering staffing reductions, the SLMPD is already well below where these agencies may be heading and has been so for years. This has significantly lowered the cost to SLMPD member cities over what their neighboring cities have proportionately paid over the same period. Being so far to the extreme, however, is not a good thing as illustrated through the strategic planning process last year. The attached Position Statement signed by each member of the 2008 Coordinating Committee emphasizes the importance of addressing this staffing issue as soon as financially feasible. Although the revised operating budget proposal being presented at the July 29th Coordinating Committee meeting is less than ideal, it should be able to maintain operations for 2010 barring any of the vulnerabilities already identified. However, it is not a sustainable model and the long- term implications will have to be addressed in future years. This is not a good situation to be in when it comes to public safety, which is one of the most important services provided by local government and directly impacts the quality of life in the community. 9 i Tuesday, May 12, 2009 Haw does Wayzata compare? ►~a S l= ~ n er,-; to}} tore BI_~t 173rtce p_1'1'2 S -,I °fle [lLI -rib n,-f 1e,_,_ _ II a Irc il~_r`.~.I ~~}1 i_r Ii t_j) I0 il10 Is iI_F}1C i.-CveI D0 6~ 4r~ 1~ ~~51+,11~~i_i '~I L Y~tC] tile. I I Ile, SO L'111 .0 P c?`ke r ' 'iI at , Inirle E~ri(}i ",.l`_E? _ ? ird i31-OL;li1} PI>_llll Wayzata Medina Deephaven West Hennepin Orono FULL-'1' I rah E, .ICENSED OFFICE8S 11 7 9 19 RESJOENTS SERVEO 4,145 5,700 4,256 5,690 12,064 EEICFRS PER 1.0011 R 2.65 135 1,64 1.58 1.57 1,46 1,31 1.14 minn trista 1 8,594 Mound 1 * 9,901 South Lake Minnetonka 14 12,233 be, r- r-,, j m- c ii 1._' Ili J [ i n C. _;11 „I I', 1'I " 3_I` _III _1 C, :11 :~Ir:9'_111(,''' Coordinating Committee Position Statement South Lake Minnetonka Police Department The Coordinating Committee for the South Lake Minnetonka Police Department initiated a strategic planning initiative to identify current and future needs of the organization. In that light, a Strategic Planning Group (SPG) was formed comprised of the Mayors and one additional representative from each City Council. This means that 40% of the total Council membership was involved in the process. The SPG met several times for some 81/2 hours before producing a Strategic Action Plan for consideration by the Councils. To that point, SPG members were deeply involved in the process and there were no objections to the final product by the SPG. The approach attitude was one of listening to input from the Chief, with a pervasively conservative fiscal overtone and skepticism regarding need. While we acknowledged the Chief as a solid professional who knows much more about law enforcement than we do, we were, nevertheless, unwilling to simply "rubber-stamp" his recommendations. Multiple thorough presentations from the Chief drew numerous probing questions, first about need, then about potential cost as we sought justification for such a change. What follows is an accumulation of facts, information and conclusions that came to light as a result. Providing adequate public safety is the #1 responsibility of government. Statistically, the SLMPD is far and away the leanest police department in a very wide surrounding area. Lean is not necessarily a bad thing in and of itself unless it presents inherently related problems that undermine the department's ability to provide that crucial responsibility of public safety. The current staff level results in widespread single-officer patrol coverage (one officer on duty with no back-up) for the entire SLMPD area. Current staff levels undermine opportunities for time off, relief for needs such as health, injury, stress and more. Current staff levels add stress in these ways as well as increased danger on the job. Our officers have taken up a career which brings risk to their lives at any time. Single coverage increases that risk. It also changes the way officers respond to certain types of calls. If an officer has no back-up, should he wait on a domestic call until another agency becomes available to assist or not actively pursue DUI violators knowing he will be tied up for two to three hours with no one on patrol? This factors in to why officers have left the SLMPD for larger departments. Turnover is expensive in any organization. Recruiting the highest quality personnel is more difficult for an understaffed department. Staffing with minimal numbers is very difficult. It is like having no financial reserves-there's no "well" to go to when you need it. The SLMPD is a very efficient operation. Yet questions arise: Is it optimally efficient? It can't be when officers are regularly forced into a reactive rather than a proactive mode. Does the current staffing level undermine officers' ability to be all they can be in pursuit of the public's best interest? Yes, for the same reason. Would the addition of personnel make the department optimally efficient? Maybe, maybe not, but it will significantly mitigate the damage. Mayors and other SPG members acknowledged a new level of awareness when presented with the graph indicating how often there is only one officer on duty and when informed of the effect on officer psychology. Understaffing endangers not only the public but the officers as well. Their safety is every bit as important as our own. Mayor LaBelle summarized our conclusion with "We need to protect those who protect us". With all the funds spent on the facility, equipment, and staff, we cannot be optimally efficient if officers cannot freely respond to all calls. The SLMPD is doing a great job making the most of the staff level they have to work with, but this still doesn't meet the public's real need in this area, especially considering its size, slow roads, and indirect routes. Also, consider the growth in the surrounding areas whose populations often enter our area for its natural attractions. More calls are requiring multi-officer response such as medicals needing use of a defibrillator. The fact that the SLMPD is understaffed is not a new issue. It simply has been put on the back burner for the last 6-7 years, in favor of the new facility and funding formula issues. Chief Litsey has continually informed the cities of this critical issue, but he has been told to make due until those issues are resolved. Well, now they have been and the issue of adequate staffing is before us. No one can deny the statistics: compared to all other area departments, the SLMPD is the lowest staffed per 1,000 residents. A supervisor for a neighboring police agency recently commented that whenever they dropped to single officer coverage, "it has always come back to bite us". It would take four additional officers to get our department to the "average" level and that is what the Chief recognizes is most appropriate. The SPG has told him this is too large of a leap, but it has also acknowledged the status-quo is unacceptable. The public's perception of their safety exceeds reality. Feedback from the public indicates they would be surprised to know how often our area is covered by only one on-duty patrol officer. They would likely favor more even if it costs more. In analyzing the issue for value: cost vs. need, we have to acknowledge that not all issues are quantifiable. We tried to use quantitative data and still step back and see the big picture, use introspection and intuitive, qualitative reasoning to make appropriate decisions. Budgeting and funding must always follow a "needs analysis." Police protection is like insurance-nobody likes to pay for it until they need it. The question is value. How much do we need? Can we afford two additional officers? More importantly, can we afford to remain under-protected? We as the Coordinating Committee take our duty to provide for the public safety needs very seriously, and therefore, recommend to our Councils the implementation of the strategic plan by supporting the requested funding in the 2009 budget. The following Coordinating Committee members support this Position Statement as amended at the Coordinating Committee meeting on June 25, 2008. i- Mayor Nick Rue City of Excelsior Mayor Christine Lizee City of Shorewood Mayor Bob New n City of Greenwood Mayor Bill LaBelle City of Tonka Bay 2 T-tee as PoN-e Chief Bryan Cost of Enhancing Documents Offset by Donation - (color printing and paper selection) - - - r P ® C r 1 , . -.m tI y,C,.,.,Ainating Committee Quarterly Meeting - Wednesday, July 29, 2009 40110 Court Overtime $5,000 40120 Excelsior Park and Dock Patrol Services $22,000 42100 State Peace Officer Aid $118,000 42200 State Training Reimbursement $7,000 43100 Minnetonka School District $7,000 43200 Administrative Requests $1,000 43400 Security Details $25,000 44000 Investment Income $10,000 46400 Forfeitures $1,000 46500 Miscellaneous State Reimbursement $17,500 46600 Other Reimbursement $1,500 TOTAL PROJECTED REVENUES $215,000 Yponse si? E=,%coss of Revenues ~1,8~'1,OOQ PROJECTED COST TO fIEMBER CiTiES $1,391,000 Quarterly Meeting - Wednesday, July 29; 2009 CC- 21 9 2; Excelsior $1,89 `,900 27.0% $510,813 $3,780 Greenwood $1,891,900 8.0% I $151,352 $1,120 Shorewood $1,891,900 50.0% $945,950 $7,000 Tonka Bay $1.891,900 , 15.0% $283,785 $2.100 2010 Total CogtribUt'ions from Ngember Cities $1,091,900 2009 Total Contributions from fiulember Cities $1,877,900 The Fourth Amendment to the Joint Powers Agreement (JPA), which was ratified by the member cities in 2006, contains a provision whereby each city's annual contribution toward the operating budget was determined by arbitration. The percentages in the chart above reflect the ruling of the arbitration panel, which were first implemented in 2007. Dollar Increase Over 2009 $14,000 Percentage Increase Over 2009 0.70/6 Contributions from ember Cities - Year ?O '3 C B 05. T 4 ~ b i A. t.... ~ a f k~°' e a E . Q' f'* Se6EF 'k e.' UM C- f~' _ ' ) o . s i= _.a $ [ N' a.+ R E.€ S E OVER 2003 Excelsior $1,877,900 27.0% $507,033 $28,620 Greenwood $1,877,900 8.0% $150,232 ; $8,480 Shorewood $1,877,900 50.0% $938,950 $53,000 Tonka Bay $1,877,900 15.0% $281,685 $15,900 Totals $1,877,900 $106,000 atim e m Tonk 1' $28: 71 1 fro 1 7a. 1- .I Excelsior 27% $510,813 Greenwood 8% $945,950 []Excelsior []Greenwood []Shorewood []Tonka Bay Quarter Ibvn~ =f~ s' 2010 2G09 1 nC!Der3 I 50100 Salaries Full-time $1,155,500 v $1,177,000 ($21,500) 50200 Salaries Overtime $67,500 $64,200 $3,300 5.1% 50300 Salaries Part-time $94,200 $94,500 ($300) -0.3% 50500 Social Security & Medicare $27,000 $27,000 $0 0.0% 50600 PERA Pension $169,500 $172,500 ($3,000) -1.7% 50700 Insurance Benefits $207,000 $190,000 $17,000 8.9% 51000 Contracted Services $12,100 $11,800 $300 2.5% 52100 Equipment Leases $30,300 $30,100 $200 0.7% 52200 Repairs & Maintenance $43,800 $43,500 $300 0.7% 52300 Utilities $68,000 $72,500 ($4,500) -6.2% 52400 Janitorial & Cleaning $12,400 $12,400 $0 0.0% 52500 Printing & Publishing $4,000 $4,600 ($600) -13.0% 52800 Care of Persons $100 $100 $0 0.0% 53000 Supplies $66,500 $69,900 ($3,400) -4.9% 54000 Uniforms & Gear $13,600 $13,600 $0 0.0% 54500 Training & Conferences $10,100 $10,100 $0 0.0% 56000 Insurance $60,000 $54,000 $6,000 11.1% 56100 Subscriptions & Merrbersh s $2,900 $2,900 $0 0.0% 57000 Special Projects Y~ $12,400 $12,200 $200 1.6% 58000 Capital Outlay $50,000 $50,000 $0 0.0% TOTAL PROJECTED EXPENSES $2,106,900 $2,112,900 06,000) -0.3% OPERATING BUDGET REVENUES (Does Not Include Contributions from h7ernber Cities) Item Category 2010 2009 Inc(Dec) Change 40110 Court Overtime $5,000 $5,000 $0 0.0% 40120 Excelsior Park and Dock Patrol Services $22,000 $22,000 $0 0.0% 42100 State Peace Officer Aid $118,000 $137,000 ($19,000) -13.9% 42200 State Training Reimbursement $7,000 $7,000 $0 0.0% 43100 Minnetonka School District $7,000 $7,000 $0 0.0% 43200 Administrative Requests $1,000 $1,000 $0 0.0% 43400 Security Details $25,000 $25,000 $0 0.0% 44000 Investment Income $10,000 $20,000 ($10,000) -50.0% 46400 Forfeitures $1,000 $1,000 $0 0.0% 46500 -Mast. State Reimbursement /12XTP $17,500 $8,500 $9,000 105.9% 46600 Other Reimbursement $1,500 $1,500 $0 0.0% i T,AL PROjEC` ED RE` %Ef UEES $215,000 $235,000 (20,000) -8.5% Expenses in Excess of Revenues $1,891,900 $1,877,900 $14,000 0.7% PR01IrC? ED COS T TO `;'ice V713 "ER ' ; EE-- S 0 1, 3 ° °i,200 $1,977,200 .°,11,%000 0,7% p, Narrativ~_ Prepared by Chief Bryan Lilsey PROJECTED EXPENSES 50100 - SALARIES - FULL-TIME This line item includes full-time salaries for union and non-union personnel. No additional frill-time positions have been factored into this budget proposal, even though the 2008 Strategic Planning Group identified the need for additional police officers. There may be an opportunity to hire an additional police officer if the grant application submitted by the department receives approval through the COPS Hiring Recovery Program. The majority of full-time personnel are unionized and defined by state law as "essential employees." Consequently, binding arbitration replaces their right to strike. Although the union contract has yet to be negotiated for 2010, wage increases are normally factored in this category based on trends, comparative data and what an arbitrator would possibly award if an agreement cannot be reached. Given current economic conditions, the Coordinating Committee has decided to hold the line on wages for 2010 other than scheduled step increases and other obligations. Union personnel have the option of contesting this through arbitration, at which point the department would be required to honor any increases that are awarded even though this has not been factored into the budget. This wage freeze, coupled with the recent and pending retirements of senior personnel, has resulted in a payroll reduction for 2010. It is important to note that payroll savings due to retirements are temporary and this will diminish as their replacements ascend through the salary schedule. Additionally, there are also considerable costs to other categories when it comes to the hiring, outfitting and training of new personnel. 50200 - SALARIES - OVERTIME This line item includes overtime paid to personnel working on holidays and in excess of their regularly scheduled time. The latter of these can be impacted by a number of variables such as staffing and activity levels. The amount in this category is not sufficient enough to consistently use overtime to backfill vacancies in the patrol schedule due to time off requests, illnesses, work related injuries, training, special assignments, etc. This deficiency was identified by the 2008 Strategic Planning Group as one of key goals that needed to be addressed in terms of officer and public safety as well as the delivery of services. It has been put on hold due to budget constraints. Overtime paid for court appearances, educational programs in the schools and policing special events are reimbursed and reflected under revenues. A more recent addition to this category is the reimbursable overtime associated with officers working weekend nights during the busier summer months at two popular lakefront restaurants in Excelsior. Referred to as the Bar Cop Detail, this started out as a pilot project in 2007 and has continued since as a seasonal detail with only slight modifications. It is anticipated this partnership arrangement with Maynard's Restaurant and BayView Event Center/Bayside Grille will continue in 2010. Also under this category is the reimbursable overtime associated with officers working Operation NightCAP administered through the Minnesota State Patrol. This program funds saturation patrols focused on getting impaired drivers off the roads. Another overtime detail is alcohol compliance checks, which if approved, will be reimbursed through a state grant. New to this category is the reimbursable overtime associated with the SLMPD participating in the Western Hennepin County Safe & Sober Group for 2009-2010. The SLMPD is one of nine local law enforcement agencies that collectively applied for and received funding for a number of traffic enforcement initiatives throughout the grant period. Absent the grant, this category would have declined from what was budgeted for in 2009. It is important to keep in mind that this category varies from year-to-year depending on the number and status of overtime projects, special policing requests, etc. 50300 - SALARIES - PART-TIME This line item includes salaries for the part-time front office personnel and community service officer positions. Given current economic conditions, the Coordinating Committee has decided to hold the line on wages for 2010 other than scheduled step increases and other obligations. This category also includes the seasonal positions associated with providing park and dock patrol services in Excelsior. These additional services need to be formally approved each year by all the member cities pursuant to the current Joint Powers Agreement (JPA). Reimbursement from the City of Excelsior for providing these services is reflected under revenues. There may be an opportunity to hire an additional police officer to work on a part-time basis if the proposal submitted by the department receives approval through the Byrne Justice Assistance Grant Program. This .6 FTE (full time equivalent) position averaging 1248 hours per year would be funded by the grant over a two year period starting on January 1, 2010. This position would be used to help maintain or increase the scheduled number of patrol officers per shift. This was an identified need through the strategic planning process. Being the process is in the early stages, this grant application is being mentioned but not included in this proposed budget. 50500 - SOCIAL SECURITY & MEDICARE This line item includes the required employer contributions for those personnel covered under the federally mandated social security and medicare programs. There are no expected rate changes for 2010. There would have been a decrease in this category if not for the fact that a contribution to medicare is now required for all newly hired police officers. 50600 - PERA PENSIONS This line item includes the required employer contributions for those personnel covered under the state mandated Public Employees Retirement Association (PERA). A pension bill passed by the 2005 Minnesota Legislature mandated greater contributions from both the employer and the employee. This was a necessary measure to sustain adequate funding levels for both the Coordinated and Police & Fire Plans. To mitigate the impact, these increases were scheduled to be phased in I Ul 0 between 2006 and 2010 for the Coordinated Plan and between 2006 and 2009 for the Police & Fire Plan. Police officers are covered under the latter plan, which has leveled off at 14.10 percent for the employer contribution. The downside is that there will be a shortfall in anticipated revenue from State Police Officer Aid, which is based on what the employer collectively contributed the previous year to police officer pensions. This is explained in more detail in the revenue narrative. The Coordinated Plan will experience another rate increase for 2010, topping out at 7.0 percent in addition to a social security contribution. This category is interrelated with salaries and thus there is an overall decline for 2010. 50700 - INSURANCE BENEFITS This line item includes the employer contribution toward health, life and supplemental insurance for eligible personnel. The majority of expense under this category is for health insurance. To help mitigate the ever increasing cost of providing this benefit for employees, the department is part of a consortium of local governmental agencies that collectively negotiate with providers to obtain the best possible contract. This alliance is called the LOGIS Health Care Group. The last time the contract went out for bids there was a switch in providers from Medica to HealthPartners. The current three year contract with HealthPartners (2008-2010) caps the increase for 2010 at sixteen (16) percent. This comes on the heels of what was only a modest increase in 2008 followed by a sixteen (16) percent increase in 2009. Although the exact amount of the increase will not be known until after this budget needs to be approved, available information suggests it will be at the maximum allowable amount of sixteen (16) percent. This category reflects what the employer contribution will likely be based on past history. 51000 - CONTRACTED SERVICES This line item includes a number of professional services for such things as the annual audit and other financial services; legal counsel for departmental affairs; recorder for governing board meetings; availability of interpreters to communicate with non-English speaking suspects, victims and witnesses; fees associated with providing direct deposit for employees; and pre-employment medical and psychological examinations for personnel hired during the year. Trying to accurately predict what legal resources might be needed in any given year can be difficult. This is mitigated by the fact that most significant legal expenses will arise out of actions covered by the League of Minnesota Cities Insurance Trust (LMCIT). Recent additions to this category include fees associated with direct deposit and a recorder for meetings. The fees associated with providing direct deposit for employees was previously under the category of Printing and Publishing. Increases for some of these services have been factored into this category. 52140 - EQUIPMENT LEASES This line item includes lease and maintenance agreements for such things as connecting to the state criminal justice information system (CJIS), postage meter and multifunctional copier with 2- a ~ s networking capabilities for copying, faxing, scanning and printing. The most significant expense under this category is the annual transfer made to the Technology Fund. Please refer to the "Funds Supporting Operations" section of this proposal for a more detailed explanation of this special fund. This transfer is well below what is needed to sustain an adequate fund balance to meet anticipated needs in the coming years. One of the key strategic goals identified by the 2008 Strategic Planning Group was increasing the transfer to this fund to help keep pace with technology. It has been put on hold since that time due to budget constraints. A new remote access charge to interface with the state criminal justice network has contributed to a nominal increase to this category. 52200 - REPAIRS & MAINTENANCE This line item covers such things as the repair of office equipment and furniture, preventative building maintenance, vehicle repairs, support for technology and calibrating specialized equipment. A number of maintenance agreements have been secured for critical building components such as the heating/cooling systems, boiler inspections, communications, emergency generator, elevator, security gate, etc. Many of these expenses are shared with the Excelsior Fire District (EFD) as joint tenants of the building. These maintenance agreements are necessary not only to prevent the disruption of emergency services, but also to extend the useful life of equipment. The same is true when it comes to vehicle maintenance, which is the most significant expense under this category. It is important that our fleet of vehicles be maintained in top-notch condition given the reliance placed on them for emergency response. New to this category is the shared expense of maintaining the command vehicle housed by the Mound Police Department, but available to all law enforcement agencies in the Lake Minnetonka area. Maintaining a reliable computer network with interoperability capabilities requires specialized technical support along with having a number of user/maintenance agreements in place. As dependence on technology increases so does the expense of keeping it operational. Other items in this category include the cost of calibrating specialized equipment such as speed measuring devices and truck scales. There is also a nominal contribution to the Firearms Range Fund. Please refer to the "Funds Supporting Operations" section of this proposal for a more detailed explanation of this special fund. The increase to this category has been kept to a minimum, even through there are new and added expenses under this category. 52300 - UTILITIES The majority of expenses under this line item are associated with the public safety facility that serves as headquarters for the SLMPD and the Excelsior Fire District (EFD). Shared costs include regular phone service, high voice and data connections, electricity, natural gas, water, sewer, waste removal and alarm monitoring. The most costly and volatile items under this category are electricity and natural gas. The department recently retained an efficiency expert in system controls that has already yielded some cost savings in natural gas usage by the boilers. The net effect will be more telling once an annual cycle has been completed since the controls were fine-tuned. Additionally, the cost for this service and the price of natural gas, which is prone to dramatic increases, will determine how much savings is realized compared to previous years. To further reduce this expense category, a hedge against the volatility in electricity and natural gas prices is no longer factored into the equation. Projected costs are based on past experience. The vulnerability associated with this approach would be less difficult to manage if the department maintained a higher reserve fund balance. The cost of waste removal has surged in recent years and this trend is expected to continue. Cellular phone and air card service, which is not a shared cost, is an essential part of the communication grid for the department. It allows greater efficiencies and access to data so that officers can do more work in the field. It also provides a way to contact key persomiel around the clock. Cellular phone costs are expected to remain relatively stable for 2010. Air cards permit wireless connections to the mobile data computers in the patrol vehicles and laptop computers used in the field. The number of air cards and some of the subscriber fees have increased in recent years adding to the cost. Nevertheless, there is an overall decline in this category. 52400 - JANITORIAL & CLEANING This line item includes janitorial and carpet cleaning services along with cleaning supplies. These expenses increased significantly when the department moved into its current facility with considerably more area to maintain. These expenses have since leveled off and there is no increase factored into this category for 2010. 52500 - PRINTING & PUBLISHING This line item includes printing costs for letterhead, envelopes, business cards, forms, citations and warning notices. Publishing costs are generally limited to advertising personnel vacancies and posting official notices in the newspaper. Other expenses include purchasing publications to help personnel do their work. These expense have gone down as the ability to access information through internet increases. Additionally, computer generated forms are replacing some of the printed forms. Fees associated with providing direct deposit for employees is now accounted for under contracted services. This reclassification, coupled with the aforementioned reductions, has reduced expenses under this category. 52800 - CA OF PERSONS This line item includes caring for detainees while in custody at the SLMPD. This is a nominal expense since most detainees are either booked and released from the SLMPD detention facility or transported to the Hennepin County Jail. This category is also used to track booking fees, which are offset through reimbursement from the member cities. 53000 - SUPPLIES This comprehensive line item includes gasoline for vehicles in the fleet, diesel fuel for the emergency generator at the public safety facility, vehicle supplies, educational materials, ammunition, first aid supplies, batteries, recording supplies, film, drug testing kits, hardware, office T W ~ . t3~ ~ supplies, meeting expenses and other miscellaneous items required for department operations. There is an offset under revenues for the educational materials used by the police officer(s) instructing the CounterAct Program at the local elementary schools. There was a sharp increase to this category for 2009 due to the unprecedented rise in gasoline and ammunition prices. Although ammunition prices remain high, gasoline prices have come down and have since stabilized enough to reduce the projected cost for 2010. Nevertheless, the volatility of the market makes this difficult to predict when considering every ten cent increase in the price of gasoline sustained over the course of a year costs the department an additional $1,300 (assumes an annual fleet consumption rate of 13,000 gallons). The department has implemented a number of proactive strategies in recent years to mitigate the volatility in gasoline prices, but streets still need to be patrolled and calls still need to be answered regardless of the cost. Ammunition prices continue to rise with demand exceeding supply and growing industrial powers such as China bidding up the cost of the raw materials used in the manufacturing process. Along with this price increase, the much needed addition of a tactical team has increased the amount of ammunition needed for training purposes. The department has modified its firearms training schedule to conserve ammunition while still exceeding state requirements. There is an overall decrease to this category due to the decline in gasoline prices being more than the increases in ammunition and other supplies. There may be an opportunity to reduce ammunition costs further if the proposal submitted by the department for an interactive training simulator receives approval through the Byrne Justice Assistance Grant Program. This cutting edge technology provides realistic scenario based training in a controlled and instructive environment. It would provide an economical way to maintain and enhance a critical training need of the department at a time when training is being scaled back due to budgetary constraints. 54040 - UNIFORMS & GEAR This line item includes uniforms and gear for department personnel along with applicable clothing and equipment allowances. In recent years, the expansion of the community service officer program and the formation of an emergency response unit have increased expenses under this category. This category also absorbs the considerable expense of outfitting new personnel, which is not always known at the time the budget is prepared. State and federal reimbursement is available when purchasing body armor for licensed police officers. Costs associated with outfitting seasonal personnel working the park and dock patrol detail are reimbursed by the City of Excelsior. Normally, rising vendor prices and the expense of outfitting new officer(s) would be factored into this category. Due to budget constraints, this has not been taken into account and thus there is no increase to this category. 54500 - TRAINING CONFERENCES This line item currently must accommodate the required and specialized training needs of twenty-one (21) department personnel. The amount allocated to this category is marginal at best. The hiring of new personnel adds to this cost, since they generally require more training during the first years of employment. A case in point is the necessary training for new police recruits. Costs can easily exceed a couple thousand dollars for training and certification in such areas as emergency medical technician, pursuit driving, interviewing and interrogation, Intoxilyzer operator, Livescan operator and CJIS operator. Once achieved, ongoing refresher training is required of all officers to maintain their certifications. Officers must regularly train and demonstrate proficiency in the use of firearms (pistol, shotgun and rifle), Taser, ASP baton, chemical spray, use of force techniques, high risk traffic stops, etc. Additionally, all personnel must receive ongoing OSHA training dealing with hazardous materials, blood borne pathogens, etc. This does not even include the discretionary training needed to enhance the skill level and professionalism of personnel and to prepare them for specialized assigmnents in such areas as tactical operations, investigations, supervision and administration. The state also continues to require more mandated training without reimbursement in response to directives from the legislature. Nevertheless, the importance of providing training cannot be underestimated in order to provide quality service and minimize injuries. Training costs are significant, but this pales in comparison to the implications associated with failing to adequately train personnel. There is a partial offset under revenues from the money allocated by the state toward police training. Due to budgetary constraints, no increase has been factored into this category even though training needs and costs are ever increasing. This has been mitigated by management personnel limiting their training and conferences so that core training needs can be met. 56440 - INSURANCE The amount allocated to this line item is transferred to the Insurance Fund. Premiums are paid out of this fund for liability, property and workers compensation coverage through the League of Minnesota Cities Insurance Trust (LMCIT). It also provides a means for absorbing higher deductibles and self-insuring against small claims. Please refer to the "Funds Supporting Operations" section of this proposal for a more detailed explanation of this special fund. This annual transfer has not kept pace with rising insurance costs and the fund will likely be depleted by the end of 2009. Although the transfer has been increased significantly for 2010, it will likely need another hike in 2011 to keep the fund out of a deficit balance. 56100 - SUBSCRIPTIONS & MEMBERSHIPS This line item includes subscriptions to periodicals as well as memberships in civic and professional organizations. Also included is the contractual expense of activating and renewing peace officer licenses through the state for all SLMPD police officers. Licenses are valid for three years and renewals are staggered according to the last name of the officer. Officers must earn a minimum of 48 hours of continuing education credits during each license renewal period. There is no proposed increase to this category for 2010. 57040 - SPECIAL PROJECTS This line item has traditionally included membership in the Southwest Metro Drug Task Force and subscribing to the professional services provided by CornerHouse. Added to this category in 2009 CS was an annual contribution to the Reserve Officer Fund. Prior to this time, each member city contributed the same amount directly to this fund. The Coordinating Committee changed this practice starting in 2009 so that the contribution to this fiend is made through the operating budget. This means each member city's contribution is proportionate to its percentage contribution to the operating budget. The Coordinating Committee also adopted a schedule whereby the contribution increases each year by $200. This means the transfer amount for 2010 will be $2,400. Please refer to the "Funds Supporting Operations" section of this proposal for a more detailed explanation of the Reserve Officer Fund. Having a contingent of volunteer reserve officers is a community and organizational asset. The Southwest Metro Drug Task Force is funded through contributions from member law enforcement agencies supplemented by grant money and proceeds seized through forfeitures. Once again, there is no anticipated increase to members for 2010. CornerHouse is a highly respected sexual abuse evaluation center for child victims. A nominal increase in the subscriber fee is anticipated for 2010. The SLMPD communities have benefitted greatly from these longstanding partnerships focused on drug trafficking and helping children get through the trauma of being sexually abused while obtaining the necessary forensic evidence to hold perpetrators accountable. 58000 - CAPITAL OUTLAY The amount appropriated to this line item is earmarked for two capital funds. These are the Vehicle Fund and the Equipment Fund. Nearly the entire amount will be a transferred to the Vehicle Fund leaving only a nominal amount to be transferred into the Equipment Fund. Please refer to the "Funds Supporting Operations" section of this proposal for a more detailed explanation of these two capital fiends. There is no increase to this expense category to help restore and maintain an adequate balance in the Vehicle Fund. a ml T 1 +~R B.➢ AAA Prepared by Chief Bryan Litsey PROJECTED VENUES (Excluding Required Contributions from Member Cities) 40110 - COURT OVERTIME Member cities are individually responsible for the overtime costs associated with SLMPD personnel making court appearances for incidents that occur in their respective cities. This varies from year- to-year and the amount for this category is an estimate based upon past experience. 40120 - EXCELSIOR PA & DOCK PATROL SERVICES It is anticipated that the City of Excelsior will again request the SLMPD to provide park and dock patrol services in 2010. These services supplement the policing already in place to address some seasonal law enforcement needs specific to Excelsior. The department is reimbursed by the City of Excelsior for providing these supplemental services and the anticipated amount is reflected under this category. There is a prescribed protocol in the current Joint Powers Agreement (JPA) that must be followed prior to implementing these services. 42100 - STATE POLICE OFFICER AID This reimbursement through the Minnesota Department of Revenue takes into account only full-time licensed police officers employed for the required period of time. It is funded through a surcharge on auto insurance premiums and the amount of reimbursement is determined on a per officer basis not to exceed what the employer collectively contributed the previous year to police pensions (PERA Police & Fire Fund). Historically, the amount collected from the insurance surcharge has been enough so that the department has been fully reimbursed for the previous year's contribution to police pensions. Unfortunately, the last time this favorable condition occurred was in 2007. That year, the department received $102,522 in state police officer aid based on actual police pension contributions of $102,522 in 2006. The tide turned in 2008, when the department only received $99,355 in state police officer aid, even though actual police pension contributions were $126,197 in 2007. This net difference of 21 percent amounted to $26,842. There are several factors that caused this to happen: collections from the auto insurance surcharge were down 5-6 percent, presumably due to the downturn in the economy; the required employer contribution rate to police pensions increased; and the number of police officers employed statewide increased thereby increasing demand for the available funding. This unfavorable condition is expected to continue in the immediate future with no indication that the state has plans to make up the difference. This has a profound impact on the revenue side of the operating budget and puts an additional burden on the member cities. This unforseen condition had not yet materialized at the time the 2009 operating [ Z. ~ budget was prepared. Therefore, the payment the department receives in 2009 for state police officer aid will likely be significantly less than the budgeted amount of $137,000. Based on this trend, the 2010 operating budget proposal reflects a significant reduction in anticipated state police officer aid, although predicting how much is difficult so far in advance. 42200 - STATE TRAINING REIMBURSEMENT The Minnesota Board of Peace Officer Standards and Training provides a limited amount of reimbursement toward the continuing education of full-time licensed police officers. This reimbursement is based on the total amount appropriated by the legislature divided by the number of eligible officers. The SLMPD fills out and submits an application each year to receive this reimbursement. No increase is anticipated for 2010. 43100 - MINNETONKA SCHOOL DISTRICT The Minnetonka School District provides funding for police liaison activities and educational programs in the schools. It is because of this funding that the SLMPD is able to offer the CounterAct Program each year to the elementary schools. The curriculum is designed to involve police officers, schools and families in preventing children from using alcohol and drugs. It also helps children to avoid using violence as a means of solving problems. Officers also provide other educational programs in the schools such as talking to high school students about the legal consequences associated with drinking and driving. No increase is anticipated for 2010. 43200 - ADMINISTRATIVE QUESTS This is the anticipated revenue from public data requests for copies of documents as well as audio, video and digital recordings. This category also includes revenue from fingerprint requests for employment purposes and other non-criminal matters. No increase is anticipated for 2010. 43400 - SECURITY DETAILS This category includes additional policing requests over and above the services normally provided by the SLMPD. These extra policing requests are billed at a set amount with the personnel working these details being paid in accordance with their overtime rates. The number of requests vary from year-to-year, but have been on the increase. The estimated amount in this category is subject to fluctuation, but there is no adverse effect on the budget since costs are reimbursed by the business, organization, etc. contracting for the service. Art on the Lake and the Fourth of July Celebration are two of the more high profile events in which sponsors pay for an additional police presence. A more recent addition to this category is the seasonal policing detail at two popular lakefront restaurants in Excelsior. Both establishments share the cost of having a dedicated police presence on weekend nights throughout the summer. Referred to as the "bar cop detail," this started out as a pilot program B J _ 4 in 2007 and has continued since with some slight modifications. It is anticipated this partnership with Maynard's Restaurant and BayView Event Center/Bayside Grille will continue in 2010. . v - -NVESTMENT INCOME The anticipated revenue under this category is based upon historical trends and anticipated future earnings. The outlook is bleak that interest rates in 2010 will climb from current historic lows. Additionally, as a governmental agency the SLMPD needs to maintain a conservative investment portfolio, which means yields are normally among the lowest offered. The anticipated revenue from investment income has been downgraded significantly from previous years and is fifty percent less than what was budgeted for in 2009. 46400 - FORVEITURES This includes unanticipated revenue from forfeitures, which is subject to extreme fluctuations from year-to-year. It should be noted that proceeds from the sale of vehicles forfeited under the impaired driving laws are not reflected in this category. This money goes directly into the DWI Forfeiture Fund maintained by the department and is administered in accordance with state guidelines. Please refer to the "Funds Supporting Operations" section of this proposal for a more detailed explanation of this special fund. Additionally, most forfeitures associated with drug arrests are not reflected in this category. The Southwest Metro Drug Task Force, of which the SLMPD is a member, supplements its operations with these forfeitures. This allows membership dues to remain extremely reasonable. 46500 - MISCELLANEOUS STATE REIMBURSEMENT Included under this category is the partial reimbursement received from the state for providing health insurance coverage for a former SLMPD police officer disabled in the line-of-duty. Providing this coverage is mandated by the Public Safety Officer's Disability Benefit (Minnesota Statute 299A. 465). This financial assistance from the state has declined over the years and is currently only about half the cost. This means the department is responsible for the remaining balance. Also included under this category are a number of initiatives that are eligible for state reimbursement. These include the reimbursable overtime associated with officers working Operation NightCAP administered through the Minnesota State Patrol. This program funds saturation patrols focused on getting impaired drivers off the roads. Another overtime detail is alcohol compliance checks, which if approved, will be reimbursed through a state grant. New to this category is the reimbursable overtime associated with the SLMPD participating in the Western Hennepin County Safe & Sober Group for 2009-2010. The SLMPD is one of nine local law enforcement agencies that collectively applied for and received funding for a number of traffic enforcement projects throughout the grant period. This category varies from year-to-year depending on the number and status of overtime projects, etc. Previously included under this category were the reimbursable expenses of having an SLMPD investigator on assignment with the Minnesota Financial Crimes Task Force (MNFCTF). This affiliation ended in early 2008 with the retirement of the SLMPD investigator assigned to this detail. Because of this change, there was a significant reduction in this category. There was also a corresponding reduction on the expense side. 46640 - OTHER REIMBURSEMENT Included under this category are the boarding fees collected for kenneling stray and/or dangerous dogs at the SLMPD facility. These boarding fees help offset some of the incidental expenses associated with animal control. The related fines collected on behalf of each member city are defined by ordinance and forwarded to each member city on a quarterly basis. Other miscellaneous reimbursements are also included under this category. rY' 1 P 1 E f ~teso~ Category Proposed 210irJ 3udgeted 2009 Inc(Dec) Change Eudgeted 2008 Actual 000-", 50100 Salaries Full-time $1,155,500 $1,177,000 _ ($21,500) -1.8% $1,167,000 $1,138,414 50200 Salaries Overtime $67,500 $64,200 $3,300 5A% $72,500 $52,558 50300 Salaries Part-time $94,200 $94,500 ($300) -0.3% $89,900 $82,960 50500 Social Security & Medicare $27,000 $27,000 $0 0.0% $23,900 $22,644 50600 PERA Pension $169,500 $172,500 ($3,000) -1.7% $157,400 $147,018 50700 Insurance Benefits $207,000 $190,000 $17,000 8.9% $175,000 $161,750 51000 Contracted Services $12,100 $11,800 $300 2.5% $10,500 $13,288 52100 Equipment Leases $30,300 $30,100 $200 0.7%_ $30,000 $31,505 52200 Repairs & Maintenance $43,800 $43,500 $300 0.709 F_ $40,500 $38,71Q 52300 Utilities $68,000 $72,500 ($4,500) 6.2% $68,500 $62,659 52400 Janitorial & Cleaning $12,400 $12,400 $0 0.0% $12,000 $10,007 52500 Printing & Publishing $4,000 $4,600 ($600) -13.0% $5,100 $3,959 52800 Care of Persons $100 $100 $0 0.0% $100 $168 53000 Supplies $66,500 $69,900 ($3,400) -4.9% $53,500 $66,199 54000 Uniforms & Gear $13,600 $13,600 $0 0.0% $13,000 $13,223 54500 Training & Conferences $10,100 $10,100 $0 0.0% $9,800 $10,683 56000 Insurance $60,000 $54,000 $6,000 11.1% $53,000 $53,000 56100 Subscriptions & Memberships $2,900 $2,900 $0 0.0% $2,800 $3,009 57000 Special Projects $12,400 $12,200 $200 1.6% $9,900 $10,360 58000 Capital Outlay $50,000 $50,000 $0 0.0% $47,500 $47,500 TOTAL PR OJECTED EXPENSES $2,106,900 $2,112,900 ($6,000) 0.3% 52,041,900 $1,369,614 OPERATING BUDGET REVENUES (Does Vot Include Contributions from Member Cities) Item Category 2010 2009 Inc(Dec) Change Budgeted 2008 Actual 2008 40110 Court Overtime $5,000 $5,000 $0 0.0% $5,000 $5,667 40120 Excelsior Park and Dock Patrol $22,000 $22,000 $0 0.0% $23,000 $17,199 42100 State Peace Officer Aid $118,000 $137,000 ($19,000) -13.9% $117,000 $99,831 42200 State Training Reimbursement $7,000 $7,000 $0 0.0% $7,000 $5,608 43100 Minnetonka School District $7,000 $7,000 $0 0.0% $7,000 $6,875 43200 Administrative Requests $1,000 $1,000 $0 0.0% $1,000 $1,118 43400 Security Details $25,000 $25,000 $0 0.0% $25,000 $22,220 00 Investment Income $10,000 $20,000 ($10,000) -50.0% $23,000 $11,395 00 t Forfeitures $1,000 $1,000 $0 0.0% $1,000 $605 465 00 Misc. State Reimbursement $17,500 $8,500 $9,000 105.9% $56,000 $34,567 46600 Other Reimbursement $1,500 $1,500 $0 0.0% $5,000 $4,724 TOTAL PROJECTED PEVEiNUES $215,000 5235,000 ($20,000) -8.5% $270,000 $209,809 Expenses in Excess of Revenues S1,891,900 $1,877,900 S14,000 0.7% S11771,900 S1,,759,805 1I , G_in n !~'r201JECTED C Cy' ST T0 3, `,i~..,__G(TlES ^ c ~ tar UV I, 00 nn, $ 3,8377,;00 « .nnP 0 .~:4,000 r. 0,'ra ~o -D I I A , u, a 4. L 20'9 I C- 50100 Salaries Full-time Salary Adjustments : 4, $1,167,000 Reduced Payroll Due to Retirements $1,177,000 $1,138,414 MNFCTF Overtime MNFCTF Position 50200 Salaries Overtime $64,200 _ Terminated Early $72,500 $52,558 Salary Adjustments Expanded Community Excelsior Part: and Dock 50300 Salaries Part-time Service Officer Coverage Patrol Services Under Budget $94,500 $89,900 $82,960 50500 Social Security & Medicare $27,000 $23,900 $22,644 Rate Increase Rateincrease Reduced Contributions 50600 PERA Pensions Due to Retirements $172,500 $157,400 $147,018 Significant Premium Increase Moderate Premium Increase Reduced Contributions Due to Retirements 50700 Insurance Benefits $190,000 $175,000 $161,750 New Items - Animal Additional Costs 51000 Contracted Services Boarding & Meeting Recorder $10,500 Strategic Planning Process $11,800 $13,288 No Increase to Increase Transfer to 52100 Equipment Leases Technology Fund Transfer Technology Fund $31,505 $30,100 $30,000 Additional Building and Fleet 52200 Repairs & Maintenance Maintenance Costs $40,500 $38,710 $43,500 Additional Air Cards - rj° ` x,; 11 52300 Utilities Building Utilities $68,500 $62,659 $72,500 -2U i B~ rto Some Items Accounted 52400 Janitorial & Cleaning $12,400 L ti~ d ~ $12,000 for Under Supplies $10,007 52500 Printing & Publishing $4,600 $5,100 $3,959 52800 Care of Persons $100 $100 $168 Significant Increases for ,YO1000 11~1' A5 Escalating Fuel & 53000 Supplies Fuel & Ammunition $53,500 Ammunition Costs %~9D $69,900 $66,199 54000 Uniforms & Gear $13,600 $13,000 $13,223 54500 Training & Conferences $10,100 $9,800 $10,683 Rebuilding Insurance Fund 56000 Insurance $53,000 $53,000 $54,000 56100 Subscriptions & Memberships $2,900 $2,800 $3,009 New Item - Transfer to 57000 Special Projects Reserve Officer Fund $9,900 $10,360 $12,200 Rebuilding Transfer Rebuilding Transfer 58000 Capital Outlay to vehicle Fund to Vehicle Fund $47,500 $50,000 $47,500 TOTAL EXPENSES $2,1,12,900 $2,041,900 Y1,9G9, i5 From r0ember Cities Approved Budget Actual Approved Budget Actu: I i Er." CATEGORY 2005 2009 2008 2008 40110 Court Overtime _ $5,000 $5,000 $5,667 Achieved Desired Cost 40120 Excelsior Park and Dock Patrol $22,000 $23,000 Savings $17,199 Unanticipated Reduction 42100 State Peace Officer Aid $137,000 $117,000 $99,831 Unanticipated Reduction 42200 State Training Reimbursement $7,000 $7,000 $5,608 43100 Minnetonka School District $7,000 $7,000 $6,875 43200 Administrative Requests $1,000 $1,000 $1,118 Bar Cop Detail & Other Bar Cop Detail & Other 43400 Security Details Special Events $25,000 Special Events $25,000 $22,220 Declining Interest Rates 44000 Investment Income $20,000 $23,000 $11,395 46400 Forfeitures $1,000 $1,000 $605 MNFCTF Grant Ended MNFCTF Grant -Half Year MNFCTF Grant Terminated 46500 Misc. State Reimbursement in 2008 Early Due to Retirement $8,500 $56,000 $34,567 46600 Other Reimbursement $1,500 $5,000 $4,724 TOTAL REVENUES $235,000 $270,000 $209,809 U "''_8 1 M uj W Cl) N M O m W V t0 Q.• O O } O U O Oy O ~z J =3 CU m 0 O O O O O ~ C® U) Q- U Q a) O m O I~ (1) O L p) U O v- Q) o V O) CO to r-- 00 O L B 0 O U cy) a ua (f) - U Q E m (L) a) U U M U C 0 ~ (a (B to . Cl) a) 0 ' ( aa) U cu 0- ~U O ' N p~ ~ OL Q) E O U L O N (6 m a) > L U) U Q) O -C (E(tea .1...• M W 0 W C C _ ~ 0 (D a) L 70 ( ) " E w Q) CD O O :3 U CD CD O N 'a C (n O~ t4 O C~ ~ U - O p Q N U N a) U 7+ (C Ca ° O O LO - LO CO l- (f) 00 CO Q O N O U (0 O O L O_ C v- M Q) L N C (6 0 0 L LO C ~ o cu a) 6) cf> co L O E O > a) E 0) U C N el N 60- O o D _ -p _O L= -r- 0 l O O C UC)-> a) C 0) ' U ca o co . Q C d O 0 O a) O a) O C a) a) 0 ,0 CD LO CD `n C) O C U > , 0 0) U) I-- U) O . LO 0 rn U) C N :3 O Q (a 'D O O CO "a (La - M U) N N a) LO fl- O) 64 m O O O O (a eta ~Q0)~ > . ~ •c_ a) Q. N o QI- ' > B O O C a) C U O ° O CD cO (N O _ (B a) (Q N Q O _O L O) -0 - CO V Cl) - C O a) C O > LO (f) LO a) C O O O C Q ' Cf> EA - -p 0) + O O a) O N O C > O Q (0 0 p (n U) (n a) CD I-- m E cm - :tf p ° O r` O co O m O - m 57 C C C v cA O N N E- ~ y O (N N O ( B C 2i wQU)) U-0 0 0 w 0 V x LO U) CD LO .2 (D C 4= O U O o Lu (a (n ° o 0 w > 0)76 O O y/ L C N O O a) V O (0 C O Z Q Y E O O O } •cf (a m (D C) Z a) O L-. M -c- ' p N c) 70 0) L V) L O L U) ~0- -0 o ° o (n 3 > m ~ 0) a) 0 N 0 - = a O , 0 Q~ ° ai O ' L -O N _0 'Q N i. _U r a) w - -0 Q) E 0) •O > E O Q o _0 w U( N O 'V) ~L+ O t~ V 0) a) O .C O Q C/) U -0 v ate) F-) M O m O ( n C - m C N N O a) v Q CL U O (0 C o 0- O a) Q O C Q L E Q) 0 U CE N D LL F-~ CT0.~.E.~ 0 U Qto~ i tt) u) ! co i o O O O O O O O C) O (D O H} ff) LO LO Lo m m O m O LO f,- co ti cc LO 0~ (6 L6 119 Lf) K-} (O N Yy O i- O ° O O O O Q Iq O LC) Lo m O C6 N LO L D (O N 05 , O OD Cfl OJ 0 O 0 N O N O O LO = O CO LO I- C70 Ch C L Cfy £H C:) co p O cO LO r N N a) ~ N CO N CO U 14- 69- 'T x 1 ,1 LU C O C O 0- 00 Q CO O O O U U W U L 1 C U O a U O~ ~ O s O C =3 p) N O N C 0 C~ L a> U 0 _ CJ U D iL Ri a) ) U TI tl1 E a) Q) ~ L 4@ 0 O N O O P (0 (n O (0 y_ > ~ O CD U a70 ) O ~ L > a) a) ~ _ O L Q .Q Co U) R U R E m a) (E) E U ~ a) -c a) a) 4= > (n O p N N ~ (6 to Q U X T 3: Ln a) E Q L O O a) L o O ) N U N ~ a) N ~ X a) a) .Q E O ~ a) U -0 E O -0 a) 0- a) O L C o cn a) aTi .C: E O cu C - a) D C U Q O O to E u L a) Q ~ a) o a) Q (n o .5 O)o a O L -0 0) co Q Q > } O m c~ c)- a) E E co a) O c u) E C) m N O O O m ~ Y C -~5 s 0 0 0 L) N i Ce CL O m~ d c t. W ..0 0 O N O .CZ C Cal CU cc CL 0 p 2tl Os U 'r C: t73 1 E p Q) 0 O O LC) - S- 4 O LN O €S U O CO LO M O ~ Rf N Q -.C: O U P r Lo co 0 (D ffl Et} ~ O O (B O . > L C O L N (n U) 4- ~ N L rn O N (n L > O U O Mp E (a Q1 O7 > O a) O N E O C M o rn is 0 a0i E Q O o m p ~ ~ ~n N O O O m LO V N o W M N " a) O O N U N O L 0) (D iZ M p C 2i p 70 N N 70 -0 U O L N CD 70 a W O O o O 0 CO O L U O sz O E p (6 ~ 3 (.0 0- CD L U Y N O = L ~ co 64 C N N _ Q G U ~ ( a N C O o ~ U O E O O O N LO O N ca N ~ 0 Ca o U) -r - E > C) W d _M U p) ~ N N p .Q Gq C E L 'p O L N + C O f- E + O G O Q O ° ° r LO a) U) E- CO O E4- m O (n I~ CD O N N O X U ~ N U O N CA N Q N N LO a) 0) K LU cry Q O O p ~ Q E Efl C: L N O LO N O ° p (n a M O D Q- E c O (n - U (B ~ N L 0) a) -0 M _ U) W LL c ' (n O L4 O am p N O G + N (a n O + t C: O O C) ~ O N Q p > N QO , N v E E p -0 m _0 O C ' o E Q) - L LO .Q U E E E LO Z3 a) C to o Q 4 Q O O 'D (tf ~ -C 0 O -0 O O L lY Q) O 0) a L O O O N C CL O O LL a) ~ LL ell G CL L c6 N U -0 ~ +L N ' O N CL 7 Q N or~ c LL > o (D U c ~I U v~- o O O N M O W CO r M = r l LO O o O O O (D Un Uf) LO O O r (O r- LO M N = LO 6a r O ca o O CI--o O C) O I` O r- O CO M o O eA CA O 'S CD 0 O co m Co O Un = ~ m (N- M N co r- O N M r- O N M co CO LC) = r-- N d CA 0 0 = LO M O CO N N M d' LO N LC) LO = O t- LO = O r- l m CO N N co r CO O V o O O O O O o O U) V W O N LO O O Lo Lo (D O O C) C) LO O O Lo O O O O O O r N (.C1 O Cal O U) p N p 0) L O CD a O Z, cc N Q U N L ~ O -p (D -0 ~ E U o~ c U U) ~ O p I- Z ~ U - p m C 0 > C O Q (n c O - C p U c LL d N 0 _0 MM::3 W 2 Q Ca3 0 tib CL 0 ° ~J E ` o 1 ms O' O N M M 0 O CO O ~ O o O CD O N O O Lo N -T N . N O O LO cl) ell 60- LO Efl (I? r O CD o M O M N r o O O m O ~ (9 (d C6 N C G O N (f} N ffl 64 to N ffl i°- 0 o N O O N M N M o ° O O O I-- M M - M M CA ~ M ~ O O M N (D CO ~ CA ti r c7' O m M Ef-? (O Ef3 (f} I-- (f} N 0 o LO (D M I o Lo N N M (D 00 6 3: co ti N L C \f r r M c G9 L U7)- K) Ef} 69- ED- 0 O LO O LO O O O LO O 69 O O o rl- N . Ll O Lr O N I u p N x ft} fA fA LO O O 7 O N O C O O) cu Q 7 L y C ~ ~ U C o L c ca ~ C O -O O U co 0 _ N 0) ' C!3 C > O C E N O "O O E c`- - ~ a~ O o U N C) Q o O c 7 C 0 ° 0~ Z 0 Q LL Q' f i i ~ CD C) N O CO O -t (D T 0 >3 O N O Lf) N Lf) r O O ( O O d Lo M f co gam} co Ef} - -;T 0 r 6`3 ffl (fJ t) tdb 0.4 m o O m ~ Iq NT m o M is LO O O c0 O M (O M LO O O M - - r Cl) f O Oa EA eH O O N 6) ti co co N 00 m N (D Cl) N N 6) co N O m N 0 (D (H CD EA (11), 60- CO 64 U) -0 0 CD LO 00 ;T 00 'tT N C) 0 co ICJ C \i N N ~ N ~ L N 00 N N ~ tf} (t} N (a EA (A V i O o LO O O d LO O 69 O O o N , Y) N lx O o L O o 06 N C.) x IT ~ L!J O O U) c O :3 (D N O C O Q ~ O) RS L ~ O L O U L na U C U c N U) 00 Z~ O -O U C O O g7a N (D E O G O m 'M a E a~ o U O Q C) (D _ C :3 L6 d ck ~ Z Q LL Q 3 V j v L.L f i ~ I L ° CD N Q5 C O (n O O co co O N Q) O O r co Ln L co co ~J? r a >1 ~ 0 -0 O co 6) r m O O O O L ° 00 rn rn O o O O 00 M V ~ M N co t0 KJ O EF? U7) 0 0 O o O N d LO c0 CO O O N c0 co ~ Lr N L ca n~ V e L CD I~t l LO N LO N G O E7 O O CT O m N G ka co O O to C U) N O O B C Q L C o O C O U (n O L 7 (D L < - O E O 2 ' O c LL O O v r ®r n Designated Funds Ba€ :aces Insurance Fund $11,498 Vehicle Fund $16,585 Equipment Fund $4,942 Technology Fund $104,914 Building Fund $14,033 Reserve Officer Fund $225 DWI Forfeiture Fund $32,250 Firearms Range Fund $2,099 Other Funds Balances Accrued Liabilities $197,310 Undesignated-Reserve Fund - (See Notation Below) $118,475 Notation: There was a net increase in the Undesignated-Reserve Fund as a result of favorable operations during 2008. This is reflected in the audit report completed by CPA Stuart Bonniwell for 2008. The resulting balance in the Undesignated-Reserve Fund is approximately 5.6 percent of projected operating expenses for 2009. This is a minimally acceptable level in which to support current and future operations. Prepared by Chief Bryan Jitney INTRODUCTION The South Lake Mimletonka Police Department (SLMPD) is responsible for managing its own fiscal affairs as a joint powers organization. This means it is necessary for the SLMPD to maintain a number of specialized and capital funds in support of the operating budget, which is financed primarily through member city contributions. Many of these funds are used to help with cash flow and to maintain consistency in the operating budget from year-to-year. All fund balances are subject to variances depending on when revenues, transfers and expenditures are received or made throughout the year. The following narrative provides an overview of each fund within the context of the overall fiscal management of the organization. The corresponding spreadsheet is a snapshot of the audited fund balances as of December 31, 2008. DESIGNATE FUNDS Insurance Fund - This fund is used to manage insurance costs. Premiums are paid out of this fund for liability, property and workers compensation insurance provided through the League of Minnesota Cities Insurance Trust (LMCIT). Maintaining this fund helps protect against the volatility in the insurance industry. It also provides a means for absorbing higher deductibles and self-insuring against smaller claims. The balance in the fiend has decreased due to increased workers compensation premiums; insuring the public safety facility; and increasing liability coverage to protect against federal actions which are not subject to the same tort limitations as state actions. The annual transfer to this fund from the operating budget has not kept pace with these rising costs. Consequently, this fund will likely be depleted by the end of 2009. Although the proposed operating budget transfer has been increased significantly for 2010, it will likely need additional hikes in subsequent years to keep the fund out of a deficit balance. Vehicle Fund - This fund is utilized to purchase, equip and set-up vehicles. It allows for a uniform replacement schedule for vehicles in the SLMPD fleet. Proceeds from the sale of vehicles go directly into this fund to help offset replacement costs. Vehicles in the patrol fleet are replaced more frequently than the vehicles used for other functions. This is for obvious reasons, given the high and rigorous number of miles put on patrol vehicles and their need to be in good condition for safety and reliability. The annual transfer to this fund from the operating budget was drastically reduced in 2004 to help with a projected revenue shortfall that year. The fiend balance was sufficient enough at the time to temporarily absorb a reduced contribution from the operating budget. It was recognized, however, this could not be sustained over the long-term and if allowed to continue would have severe financial implications on future operating budgets. Since that time, progress has been made toward restoring this fund to a sustainable level through incremental increases in transfers from the operating budget along with transfers of excess revenues. Additionally, an increased contribution to this fund was established for the eventual replacement of the vehicle put into service as part of the expanded community service officer coverage implemented in 2008. Although these have been positive steps to bolster the health of the fund, the annual contribution from the operating budget needs to be accelerated in order to achieve an adequate and sustainable level. Due to current economic conditions, however, the proposed transfer amount will not increase for 2010. Equipment Fund - This fund was established for the purchase and replacement of furnishings and equipment. Some of the fund uses have been shifted in recent years to the Technology Fund. Additionally, most of the furnishings were new when the SLMPD moved into its new facility thus lessening the dependency on this fund. Nevertheless, this fund is still being relied upon for a number of equipment needs. Annual transfers to this fund from the operating budget have been minimal in recent years due to budgetary constraints. This would have been more consequential if not for the resourcefulness of the department in securing other funding sources through grants and donations. One of the most consistent and prominent contributors has been the South Lake Minnetonka Crime Prevention and Criminal Apprehension Fund. This locally based nonprofit organization has contributed thousands of dollars toward equipment purchases. Once again, there will only be a nominal transfer to this fund from the operating budget in 2010. Technology Fund- This fund was initially established in anticipation of the conversion by Hennepin County to a new 800 MHz radio system. It was realized that the SLMPD would have to absorb a considerable expense for the equipment needed to remain part of the county-wide system. This conversion took place in the fall of 2002. Since that time, the fund has taken on an expanded role to support other technologies such as the installation of mobile data computers in the patrol vehicles as well as the internal expansion and replacement of computer hardware and software. Some of the aforementioned radio equipment and mobile data computers are coming to the end of their useful life-span and need to be replaced in accordance with the revised schedule that has been adopted. For instance, all the mobile data computers are undergoing replacement between now and 2011 at a cost of approximately $30,000 (based on current pricing). A decision was recently made to defer the replacement of the original group of portable 800 MHz radios until 2011, even though the manufacturer recommends 2009. This stopgap measure only helps to preserve capital until 2011, when all the mobile and portable 800 MHZ radios will need to be replaced over the course of the next several years. The approximate cost based on current pricing is $90,000. Expending such a large amount of capital could be mitigated if the county once again offers a lease option. Another "big ticket" item that needs to be replaced relatively soon is the current in-house record management system that was purchased in 1999 in order to be Y2K compliant. Preliminary proposals put the price tag at well over $100,000. The fiend balance is currently well short of what is needed to replace all this technology. Additionally, the annual transfer to this fund from the operating budget is barely enough to satisfy the annual lease, maintenance and user fees from the county. Addressing this important need was one of the key strategic goals recommended for implementation starting in 2009. Unfortunately, this was put on hold due to budgetary considerations. The 2010 operating budget proposal offers no additional help with the same amount being transferred to this fund. Although the department has an excellent track record of securing grants to help with technology needs, there is no assurance these opportunities will be available in the future and the department needs to plan accordingly in order to maintain these critical systems. Surplus revenues have been transferred into this fund over the years to supplement the annual appropriation it receives from the operating budget. Building Fund - This fund was initially created to assist with capital costs associated with maintaining the former police station and to provide the financial means for exploring the option of a new shared facility with the Excelsior Fire District (EFD). It was later used to offset some of the costs associated with the SLMPD moving into its new shared facility with the EFD. In more recent years, this fund has served primarily as a capital account for maintaining and improving the functionality of the facility. This use is different from what is factored into the operating budget each year for the routine maintenance and upkeep of the building. Even though the facility is still relatively new, this fund has already been used for some costly system malfunctions not covered under warranty. The fund currently receives no annual appropriation from the operating budget and has been supported over the years through transfers of surplus revenues. This unreliable funding source falls well short of what will be needed as the facility ages and the cost of maintaining the infrastructure of the building mounts. This growing concern has yet to be addressed by the member cities as part of a coordinated effort with the SLMPD and EFD. Another attempt to address this issue was made last year through the SLMPD strategic planning process. It was one of four strategic goals identified by the Strategic Planning Group as being critically important to address sooner rather than later. Although a number of approaches were suggested and discussed, no consensus was reached on how to proceed and so the matter was tabled. Consequently, this fund will soon be depleted and the department will be left with no option but to invoice the member cities for capital building costs. Reserve Officer Fund - This fund was initially established to finance the appreciation banquet held each year for volunteer reserve officers. The use of this fund has been expanded in recent years to help cover the expense of equipping and training reserve officers. One of the funding sources was changed in 2009 at the direction of the Coordinating Committee. Member cities no longer contribute directly to this fund each year. Instead, this contribution now comes in the form of an annual transfer from the operating budget under the expense category of Special Projects. Other funding sources include the proceeds generated by the department auctioning seized and/or unclaimed property along with occasional grants and private donations. A new approach that has raised some revenue is suggesting a voluntary donation be made to this fund if reserve officers help out with a special detail or event. This is now included on the invoice when the department bills for services connected with these types of activities. It is important to note that reserve officers are volunteers in the true sense of the word and receive no personal compensation. Having this fiend is a nice way to show the members of this volunteer branch that they are appreciated and supported by the South Lake Minnetonka communities. DWI Forfeiture Fund - The proceeds realized from the sale of vehicles seized by the SLMPD pursuant to the DWI forfeiture law must be distributed in accordance with state statute. The percentage that goes to the department is maintained in a dedicated account for ease of tracking as required by state guidelines. Expenditures from this fund are also regulated by state statute and must be related in some way to enhancing law enforcement efforts. This includes purchasing equipment that can aid in the detection and apprehension of people who are driving while impaired. This fund is intended to enhance, not replace, normal budgetary items. It also cannot be relied upon as a steady revenue stream given its volatility from year-to-year. Firearms Range Fund - This fund was created to help manage and track expenses relating to the operation and maintenance of the SLMPD indoor firearms range. Some of the more costly items are maintaining the automated target system, cleaning the bullet trap and replacing the special filters that are part of the air exchange unit. This fund receives a nominal contribution each year from the operating budget along with the revenues generated from other law enforcement agencies renting the firearms range for training purposes. OTHER FUNDS Accrued Liabilities Fund - The amount in this fund needs to be proportionate to the liability at the end of each year for accrued compensated absences for employees. This liability includes earned but unused vacation and compensatory time as well as severance pay. Employees who resign or retire are also entitled to the same consideration and are paid from this fund. The department has a longstanding practice of making sure this financial obligation is met on behalf of the member cities. Undesignated- eserve Fund - The budget process is not a perfect science and many costs are influenced by external factors that are not easily controlled. Additionally, when providing essential services to the public it is critical to have money in reserves for unknown contingencies. This fund provides the SLMPD with a cushion against unanticipated expenses ranging from skyrocketing energy prices to investigating a maj or crime involving hundreds of hours of overtime. One important distinction, however, is that the department does not rely on money in reserves as extensively as a municipality to maintain its cash flow throughout the year. This is because unlike a municipality, which needs to maintain its cash flow between tax collections, the department receives the majority of its revenue through monthly payments from member cities. This provides a constant and dependable revenue stream throughout the year. The history has been to maintain in reserves the equivalent of between five and six percent of operating expenses as a standard financial practice. This may no longer be sufficient, however, with the downturn in the economy along with the vulnerabilities and potential shortcomings with the proposed operating budget for 2010. Once this is determined, anything beyond this amount would still be considered more discretionary in terms of its use. The practice has been to shift any surplus toward capital needs rather than offsetting operating expenses. It is normally not advisable to offset operating expenses with reserves, being the temporary relief it provides will have to be made up in future budget years in addition to any other budgetary increases. This compounding effect can be difficult to overcome and can lead to future budget deficits. Transferring excess reserves to designated funds allows the department to better meet specific needs. a a _ - _,h2 L se Fleet .-otaaion Vehicle Use Number Rotation Years Units Per Year Est. Mileage Primary Patrol Vehicle 5 3 1.67 90,000 Secondary Patrol Vehicle 1 4 0.25 110,000 Special Service Vehicle 1 5 0.20 100,000 Investigation 2 8 0.25 110,000 Administration 1 8 0.13 110,000 Total Units Per Year 1) Purchase, Setup and Equipment Units Per Year Unit Price Total 2.5 $23,000 $57,500 Units Per Year Setup Fee Total 2.5 $2,000 $5,000 Units Per Year Graphics Total 2.5 S500 $1,250 Units Per Year Equipment Replacement Total 2.5 $2,500 $6,250 Total $70,000 Sale of Vehicles Units Per Year Est. Value Each Total 2.0 $3,000 $6,000 Recommended Operating Budget Transfer $64,000 7'® . OPERATING BUDGET oor tan om*mit ee Meeting - I , 2009 Lime stems 56000 hisurancc $66,80® ^oi ~oer► s Workers' Compensation - LMCIT $35,182 Actual Premium July 1, 2008 to July 1, 2009 Additional Amount $3,590 Final Audit Adjustment Municipality Coverage - LMCIT $26,487 Actual Premium July 1, 2008 to July 1, 2009 Public Safety Facility - Police Portion - LMCIT $3,739 Actual Premium December 23, 2008 to December 23, 2009 Self-Insured Deductable Account $1,028 Annual Estimate 1$500 Auto Accident Deductable 2008 Property/Casualty Dividend Check - LMCIT -$2,522 Municipal Coverage Rebate Date of Check - 12117108 2008 Commission Check -$704 Workers Compensation Rebate Date of Check-09/11/08 20- General FunG'j &_-et Summary General Overview The 2010 General Fund Budget, as currently proposed and adjusted following the council work sessions, represents an increase in the base levy of .83% or $34,462, which is the anticipated allowable levy under current law. To date, the city has not yet received notification of the official allowable levy amount. Total anticipated revenue for the General Fund, including transfers, is $5,399,404. This amount includes the liquor fund transfer at $10,000 (from $40,000 previously), and also contemplates a use of reserve fund balance of $155,000. Total expenditures and transfers to capital improvement funds are programmed at $5,399,404 in this budget draft. This amount is $89,158 less than the original proposed draft budget due to the inclusion of the reductions discussed at several budget work-sessions, in addition to minor adjustments made to the personnel allocations across funds, including adjustments to PERA and FICA. Mayor a Council General supplies have been reduced by $200 to reflect past activity. We are reducing mileage reimbursement, conferences and schools by $1,000 and reducing the recognition funds from $5,000 to $2,500. Finally, "miscellaneous" costs of $1,900 have been eliminated and the AIS allocation has been moved to the parks department. Items on the Table This budget contains funds for an employee recognition event in the amount of $2,500.00. Staff recommends keeping this item in the budget. Administration The proposed administration budget represents an increase over the adopted 2009 budget of $4,841. There is a slight increase in wages due to the employment agreement in place for the administrator. The budget provides $2,500 for a replacement computer which will be funded through the technology fund. Staff is also proposing reductions of $1,800 in travel, conferences and school by removing a national conference. There is also a reduction of $500 in contractual services. Items on t "able The Administration budget has a place holder of $24,000 for potential merit increases for 2010. This represents approximately 2% of the total non-union wages. During discussions, the council has suggested eliminating this allocation and reducing the amount by 50%. As a side note, the Fire District budget reflects a 0% increase in wages and the direction from the Coordinating Committee for the police is looking at a 0% increase. c . budget reflects a 0% increase in wages and the direction from the Coordinating Committee for the police is looking at a 0% increase. General Government The General Government budget has a proposed decrease over the 2009 adopted budget of $31,150. Staff reduced the part-time wages from $10,800 to $1,000. The part-time wages were used to provide assistance at the front desk and provide scanning of old documents and the property files. This project has been completed and we are now using regular staff to keep current with scanning documents as required. The other major reduction comes in regular wages. The time allocated to general government activities and support by the park secretary is decreased here and increased in the park budget. We also reduced the training, conferences and schools by $1,000. Recommendation Our recommendation is to keep this budget as proposed. Elections This budget is a cyclical in nature and increases in even numbered years due to local, state, and national elections. The increase for 2010 represents this cycle. Staff did make one alteration to the budget in the area of capital purchases by eliminating two voting booths, thereby saving approximately $600.00. Personnel costs were decreased when staff realized PERA and FICA costs had been allocated against the election judge personnel expense unnecessarily. Recommendation We are suggesting no further changes to this budget. Finance This budget is looking at a decrease over the adopted 2009 budget in the amount of $8,338. The reductions are in the capital outlay and conferences and schools. Recommendation Staff is recommending the allocation as proposed. Professional Services This budget covers our contractual services for legal, auditing, and assessing. For 2010 the miscellaneous services line item of $10,000 was eliminated. Assessing services are expected to increase by approximately $4,000 and the civil attorney retainer rate is expected to increase as well, based on actual time over the course of the first year. Some factors in the large amount expended in 2009 include a payment to the LMCIT for the Ron Johnson activity, payment to settle the Phillippi litigation, over $8,000 in fees associated with the SouthShore Community Center, and additional charges due to ongoing communications and activity by Mr. Ron Johnson. We do not anticipate some these types of expenses in 2010. Planning and Orin The proposed budget for Planning and Zoning is going down from 2009 by $14,346. The decrease is attributable to cutting back support staff allocation by .10%. Support staff in the department is budgeted at .90% and the Planning Director is at .93%. The .10% is being reallocated to General Government and dedicated to web services which will go from .30% to .40%. Other adjustments are in Contractual services where staff will take minutes of planning commission meetings and in conferences and schools. Municipal Buildings The major change in this budget comes in the area of Supplies. We increased the equipment maintenance line from $21,300 to $47,300 to reflect the new agreement we have with WarnerConnect for support of the phone and IT systems. We also plan for a new high capacity copier at $20,000; however, this cost will be covered by a transfer from the technology fund. The other major change is a reduction in the programmed transfers to the municipal building maintenance fund of $50,000. Protective Inspections This area has seen a steady decline in activity over the past 18 months or so and is represented in the number of building permits the city has received. As a result of the lower than normal activity in this area, staff is assisting with facilities maintenance issues. The budget allocation requested for 2010 is down by $8,791 from 2009. The decrease comes in a reallocation of support staff in this activity. The planning assistant had .2% time allocated to this activity and it has been reduced to .1% for 2010. Recommendation Our recommendation is to keep this budget as presented. Police The SLMPD budget is recommended by the Coordinating Committee after working with the police chief on the particulars of the budget. The budget recommended by the Coordinating Committee consists of a .7% increase over the 2009 budget. The budget does not have an allocation for a wage increase, however it should be noted that contract with the union is up for renewal this year and negotiations have not started with this group. An award with the union that exceeds the established budget may result in an overage in the personnel items in the budget. k I-- Based on the information provided by the Chief and approved by the Coordinating Committee, the for law enforcement will increase from $938,950 to $950,000 for the operating budget. Shorewood's portion of the debt service component for the SLMPD for 2010 is $230,000. Shorewood is budgeting $1,180,000 for police activities in 2010. Recommendation The JPA requires all member cities to approve the budget and if it is not, there is language holding the departments operating costs to the level of the most restrictive levy limit of member cities. At this point, the levy limit for Shorewood is .83% an amount greater than that proposed by the Coordinating Committee. As such, it is recommended to agree to the .7%. Fire The fire budget 2010 budget of $595,482 is slightly less than the 2009 allocation of $600,638. City Engineer This budget is proposed to decrease by $49,611 from the 2009 budget. The major change is the reduction in staff in this area. Some of the savings from the reduction in staff show up in other areas due a reallocation of resources. Recommendation We recommend the budget remain as presented. Public Works - Service The major item is a decrease of $75,000 to the equipment replacement fund. The 2009 budget included a $175,000 programmed transfer and council concurred with the reduction to $100,000 for 2010. Scheduled equipment purchases will not be affected through this reduction. Other aspects of this budget include a $3,800 allocation for a new 800 MHz base station and some minor adjustments to the personnel costs. Streets and Roads The Streets and Roads department is anticipated to increase over the 2009 budget by approximately $13,200. The increase is attributable to the increase in the cost of asphalt material. The budget maintains the planned $700,000 transfer to the local road fund. On the Table The Council has allocated $700,000 from the levy to the local road fund. This amount could be reduced and dollars from the Liquor fund could be used to supplement the transfer from the levy. For example, reduce the transfer from the levy to $500,000 and use $200,000 from the liquor funds to keep the total transfer at $700,000. W ! recomr- nd t[. "u ]get remain as proposed. Snow and Ice Removal No change anticipated in this department. Recommendation The actual expenditures in personnel and supplies in this budget are directly related to the amount of snow fall events requiring a call out and plowing activities. Staff recommends keeping this budget as proposed. If changes are desired, it would be in the area of reallocating staff time to other areas. Traffic Control/Street Lighting We are proposing a modest increase in this budget of approximately $6,000. The increase is to cover the cost of replacement street signs to comply with the new Federal Highway Administrations rules on reflectivity. We anticipate this to be an ongoing expense. Recommendation We recommend the budget remain as proposed. Sanitation an ante Removal We are recommending a budget of $4,900 for this activity. Tree Maintenance This program is anticipates a slight increase from 2009 due to anticipated additional expenses in the area of tree removal due to more diseased trees being found both on public and private property. Recommendation We recommend the Council retain the proposed allocation for this activity. Parks and Recreation This budget will increase the most in 2010. It will grow by $67,000 over 2009. There are two main contributors to this growth; one is a reallocation from the General Government to Parks through a reallocation of staffing resources. The other is an expanded contract with Community Rec. Resources for park administration services. Other changes to the budget include a few more dollars allocated for building maintenance and additional dollars for programming. To support some of this, the Council reduced the transfer to the Park Improvement fund by $3,000. C The Council cool reduce the levy impact associated with this activity by transferring funds from the liquor fund to the Park Improvement fund rather than transferring levy dollars. Recommendation Our recommendation is to keep the operational funding for parks and recreation as proposed. The transfer to the Capital Fund is also recommended however we have no recommendation regarding the source of the transfer. Respectfully submitted, rian Meck City`Admin strator/Clerk 6 a, V G ~ O ~ 4- C a O _ E N m L O N m m V V V O O L T O C_ O = O a) 0 O C Q. C_ E v ~ L O C u O Q) Y pq C O (U O ) Z C C tlA C Q/ N C O ~O v 1 0 O . , > m y ~ 1 ~ v a) -o :c U O ~ L C LL Q o a, v C o 0 > . 6 0 0 aJ o m N u ° E m C O C O 2L m a1 uo C a/ v) N m N C + + 4J V C C 'C C = N ¢ ` L c C on U O > E m u a m m U Y O N O m Y tC0 Q t C a a) L aJ ~ a) V a) am . O ¢ C v m o o> m r m . . o 3 0 0 C _C O L O C '6 o E v E E E m v m 2 w (u w cr a z N a Y a m O o O O O O o O O o O O O O O O O O O O O O O O O o O O O O O O 1r m O O O to O o0 O tD O v) O O O N O vl O O ll C a t0 F l0 N O N o0 tD' V' V 1-1 i!} i!T -La V} in in. in. in V} in a 0 0 0 0 O O O 0 0 O O O O 0 0 0 0 0 O O O 0 0 O O 0 0 0 (3) O O O O O O O O O O O O O O O O O O O O O O O O O O O O C O O O O v O O O O O O O O O O O O O O O O O O O O Ql O O O v on o 0 0 0 0 0 0 0 0 0 0 0 0 0Ln o o Ln o 0 0 0 0 0 -Zt o 0 0 E C N O )11 M N W v) olO C v) O N N ci V1 Z v V V C O v7 O cY O i0 v 0 C C E 01 o0 N m N M M rl N c-i O U U v yr in in v in in .4 in j). in in in, to in in in in in in i). in in .n in in VT in -O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 O O O O O O O O O O O O O O O O V o o O o O O O O O O O O O O O O O O O O G o o o o O O Ln O O Ln O o C O O o o o o o Z O c C C v) h N O 01 to W N (3to C C 0 C C C C C o E ~-1 N N N N ~--I N M 1-1 a) r1 rn Ln un 1-1 O V E rl oo ci o u V ~ N i/} t/} L} L} i/} i/} i/T i/} in i/} t/} t/} N V} i/? i/} i/} i/} Vt i/} L} L} L} i/T '(/T - 1 O O O O vmi O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O o a (D 0 C) O C. 0 0 0 0 O O O O Ln O 0 0 O v) o o O O O O O O O O o o O Q c 2 r, c c c N O vl W 13 N cl v) O N v) C ul n O O v) O V C ID O O C O C. N N Vl v) O M e-1 ~--1 r}' ci W M N N c-1 O co M N W c-I LU C) ) M W ~ O O O O r-i C O L O L L (v O u N u v) v) ' .2 66 06 ozi a) u D 6 o - (u a) Q. Q -o ¢ U U Q C v V u a) N 41 a N a -cL X LL a) - N a) N ~ Q N w C S b C w a/ u- m 4- w _ 4 C a a C z A -O C O v) _ . m , L C o6 C O O . Q O C m N m V 7 : 3 _ 7 oD Q C 11 O O N O _ N U..I co n u m c o C O - U V U E v U O m - 7 U V C Ln - ; C C -F C m f- C N m m a v 6 L a) m m E v v u O > > u N a/ C > C a) > E N > ti a) a1 u C > = a) E Y _ C a) C O C a1 N C j Q a, y o o v o i m ° o_ ° m F _ ~ w a m o o O 0 C o v :3 a = v (D D v 0 v a C ° v o ~(D U ¢ 0 t- u a r u u h u u v T -o u t m O v s 3: E S o v c a m o -o o o o j /n o _ C cc: C U m U m O m N co -Y -O m O C N (D O m m o m _ _ m ~ C Q' vi O C O U -E 75 m o C ~ O v C i -a v v c ` m ~ m m ¢ lJ w ii a a a in v) a N O T T o - > > T u ~ V V C - f6 [6 N N u [o -Q O E E N s B u O O U ~ N 4 Qn O 0 O C O O O v a, _ OJ E E E E O o 0 ~ E 0 O O +O u O N i v w <D n H N V/ - Q Q N O V 00 tlA tlD V C D E E N C C v O O O 3 ~ N ~ ~ fo v a a a E ~ • N E ' ~ 3 c v v a, v o o m m is - Ln c c • U In ~ 6 E E E " 3 0 tip O Q O w w w w Q N o bn O O O O O O Dl N N n O m Ln M O m th t/? tJ} (/T t/T O O c0 O N O N W N O O O O Ln M M O h Qn M O O O N O I a m w d' am m m O O O O O O N O r, N 00 N O C .-i c O lD W QD QD V r 1i QD O m 5 a o0 o0 r, m n W a m Ln N v Z~ r- n t/? V" t/T t/? trT V)- V)- t/} V). tn} V/ -1 O QD to 0 0 Qn 0 0 O C QD QD ~ Q O O ~ m m N n ^ C a) W O r V O Q D d' C-4 (n O c-1 N ~-I IL N t/T t/} t/} t/} V} N t~} t/} i/} t/? O O O ti N O N O N O O O O N V Qn q r- N O? O O O v O h V m rl 0 QD M m O O O N t QD ` M h - N O Ol C N O M O O V o0 Qn r N O N O h Ln lD N 6 N 00 O m r4 Qn .-1 M r, c t!} t/? t/T t/} V/ V)- V)- V). in. V" i4 T fo N V v In C C " Y (V (O G C C C f0 f0 (0 !6 (6 _ = ~ V V V U D_ N h in m > > > > w (D o m m v 0 0 0 O a c p O tin tin u w w w w N m :D D. C C v J J J J Q F co c c > > > > m O N ca ra m co /a v m U o v ra a a a N E O O- 0 3 a s N O W Qn a Q v N c C u T C z o o m o g O p N N O m F O v i C N D_ Q O -O U N O O N N K v Y U N N K Y v m O C ' O Q CL D > j E 40 ~ 3: J v U O O u Q C N N . p~ N E! C 0 00 S O v m v "B S F- n. Q a a o_ n. in cn t- a Q a O r O N t/} N O u N 72 O f6 CITY OF SHOREWOODA, MINNESOTA 2010 DRAFT ANNUAL GENERAL FUND OPERATING BUDGET DRAFT # 3 BUDGET WORKSESSION 10 AUGUST 2009 CITE' C L FUND REVENUE p D EXI r 7ITURE SUC'JIMARY 2010 DRAFT #3 GENERAL FUND BUDGET Actual 2007 Actual 2008 Adopted 2009 Y-T-D June 2009 Proposed 2010 Revised 2010 Adopted 2010 Change % Change Revenues and Other Sources Property Taxes 4,332,741 4,582,601 4,776,292 1,673,200 4,776,292 4,809,134 32,842 0.69% Licenses and Permits 256,471 195,420 196,270 78,947 136,270 106,270 (90,000) -45.86% Intergovernmental 95,901 78,155 65,000 30,736 65,000 65,000 0 0.00% Fines and Forfeitures 77,777 53,369 55,000 28,165 55,000 55,000 0 0.00% Charges for Service 50,819 50,754 46,000 23,088 46,000 46,000 0 0.00% Miscellaneous Revenue 286,684 176,535 150,000 62,151 128,000 128,000 (22,000) -14.67% Total Revenues 5,100,393 5,136,833 5,288,562 1,896,288 5,206,562 5,209,404 0 (79,158) -1.50% Expenditures General Government Mayor and Council 63,319 69,721 70,194 32,262 70,194 64,194 (6,000) -8.55% Administration 149,180 229,292 173,521 70,908 180,379 178,362 4,841 2.79% General Government 243,848 225,969 267,569 126,697 275,563 236,419 (31,150) -11.64% Elections 2,894 47,532 7,211 1,442 41,029 38,939 31,728 439.99% Finance 174,495 164,651 198,837 91,384 195,675 193,784 (5,053) -2.54% Professional Services 196,880 213,220 205,500 171,644 207,000 199,000 (6,500) -3.16% Planning and Zoning 184,854 206,595 213,306 95,656 204,259 198,960 (14,346) -6.73% Municipal Building 206,645 151,372 266,920 34,616 315,300 313,800 46,880 17.56% Total General Government 1,222,115 1,308,353 1,403,058 624,610 1,489,399 1,423,458 0 20,400 1.45% Public Safety Police 1,072,528 1,139,063 1,176,000 587,127 1,185,887 1,180,000 4,000 0.34% Fire Protection 595,947 622,934 600,638 300,225 600,638 595,482 (5,156) -0.86% Protective Inspection 128,142 137,784 133,934 55,399 124,752 125,143 (8,791) -6.56% Animal Control 21,390 0 0 0 0 0 0 0 Total Public Safety 1,818,007 1,899,780 1,910,572 942,751 1,911,277 1,900,625 0 (9,947) -0.52% Public Works City Engineer 132,998 147,576 161,057 70,382 115,857 111,446 (49,611) -30.80% Public Works Services 405,010 413,605 420,495 192,621 414,300 412,985 (7,510) -1.79% Streets and Roadways 171,221 197,434 190,945 44,970 190,869 204,107 13,162 6.89% Snow and Ice Removal 69,189 68,606 86,512 40,104 85,496 85,974 (538) -0.62% Traffic Control/Street Lights 39,274 46,537 47,600 18,127 51,049 51,049 3,449 7.25% Sanitation/Waste Removal 4,458 9,736 5,545 1,994 5,549 4,900 (645) -11.63% Tree Maintenance 29,598 24,351 30,568 6,031 33,254 33,479 2,911 9.52% Total Public Works 851,748 907,845 942,722 374,229 896,374 903,940 0 (38,782) -4.11% Culture and Recreation Parks and Recreation 200,920 229,255 202,210 137,404 236,759 269,381 67,171 33.22% Total Culture and Recreation 200,920 229,255 202,210 137,404 236,759 269,381 0 67,171 33.22% Total Expenditures 4,092,790 4,345,233 4,458,562 2,078,994 4,533,809 4,497,404 0 38,842 0.87% Total Revenues Over (Under) Expenditures 1,007,603 791,600 830,000 (182,706) 672,753 712,000 0 2 CITY OF SHf3R i GENERAL FUND REVENUE AND EXP_.. ITURE SUMMARY 20110 DRAFT #3 GENERAL FUND BUDGET Actual Actual Adopted Y-T-D June Proposed Revised Adopted % 2007 2008 2009 2009 2010 2010 2010 Change Change Fund Transfers In Liquor Fund 40,000 40,000 40,000 0 40,000 10,000 Street Reconstr Fund 0 0 0 0 0 0 Technology Fund 0 0 0 0 0 25,000 Sewer Fund 0 0 0 0 0 0 Water Fund 0 0 0 0 0 0 Total Transfers In 40,000 40,000 40,000 0 40,000 35,000 0 Fund Transfers Out (30,000) 0 25,000 0 0 (5,000) -12.50% Equip Replacemt Fund (PW) 175,000 175,000 175,000 0 175,000 100,000 (75,000) Street Reconstr Fund 345,000 645,000 700,000 0 700,000 700,000 0 Park Capital Imp Fund 15,000 15,000 45,000 0 45,000 42,000 (3,000) Trail Cap Imprvment Fnd 0 0 0 0 0 0 0 Public Facilities Fund 50,000 50,000 50,000 0 0 0 (50,000) Land & Open Space Fund 0 0 0 0 0 0 0 Sewer Fund 60,000 0 60,000 0 60,000 60,000 0 Stormwater Mgmt Fund 25,000 0 0 0 0 0 0 Total Fund Transfers Out 670,000 885,000 1,030,000 0 980,000 902,000 0 (128,000) -14.46% Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Uses 377,603 (53,400) (160,000) (182,706) (267,247) (155,000) 0 Amounts to be Provided from General Fund Balance (377,603) 53,400 160,000 182,706 267,247 155,000 0 General Fund Balance January 1 3,383,906 3,761,509 3,708,110 3,708,110 3,548,110 3,548,110 3,548,110 General Fund Balance December 31 3,761,509 3,708,110 3,548,110 3,525,403 3,280,863 3,393,110 3,548,110 3 MY OF GENERAL FUND SUI - - TIMATED REVENUES 2010 DRAFT #3 C _TIERAL FUND BUDGET TAXES: Taxes - The City levies property taxes to finance the general operating fund which provides municipal governmental services Fiscal Disparities - Received with taxes above. In 1971, the legislature enacted this law to allow municipalities to share in metropolitan commercial/industrial growth. A percentage of commercial/industrial taxes are pooled and distributed and distributed to communities in the metropolitan area. Special Levy - In addition to levy limits, this levy is for Shorewood's share of debt service for the public safety building and City Hall addition/renovations. LICENSE/PERMIT FEES: Rental Housing License Fees - License fees for rental housing units. License is valid for a term of three (3) years. Liquor License Fees Other Business Licenses - Fees for refuse hauler and tree trimming licenses. Building Permits - Permit fee based upon valuation of structure according to Uniform Building Code Schedule. Dog Licenses Other Non-business - Horse permit and alarm permit fees. INTERGOVERNMENTAL REVENUE: Market Value Homestead Credit (MVHC) - A state credit that replaced HACA in 2004. Essentially, it is a state tax levied by a municipality that is rebated to the City. The state legislature decided not to make MVHC payments for calendar years 2004 - 2006, as part of its budget balancing techniques. PERA Aid - A state aid approved in the 1997 legislature to fund an mandated increase in the employer's contributions. MSA Road Aid - Aid provided by the state to cities over 5,000 in population to maintain designated MSA roads. CHARGES FOR SERVICES: General Government The City provides services to the public for which a charge is collected such as assessment searches, map sale, planning fees. Includes rental income from residential property. Engineering - Fees charged to other City funds and developers for engineering services. Recreation - Fees charged for park maintenance and Crescent Beach charges. FINES & FORFEITS - Fines imposed for traffic & ordinance violations. MISC. REVENUES - Revenue from a variety of sources such as interest income, dry hydrant charges, cellular antenna rental and other miscellaneous revenues. TRANSFERS FROM OTHER FUNDS - Transfers from other funds, usually the liquor fund. GENERAL FUND RESERVES - Fund Balance allocated for 2010 budget purposes. CITY OF SHOREWOOD t 4D SUMMARY OF ESTIMA TED REVENUES 110 DRAFT 9#3 GE NERAL FUND BUDGET Actual Actual Adopted YTD June Proposed Revised Adopted $ % REVENUES 2007 2008 2009 2009 2010 2010 2010 Change Change Taxes General Property 3,663,362 3,909,841 4,158,672 1,673,200 4,158,672 4,193,134 34,462 0.83% Fiscal Disparities 108,244 117,683 0 0 0 0 0 0.00% Special Levy 561,135 555,078 617,620 0 617,620 616,000 (1,620) -0.26% Total Taxes 4,332,741 4,582,601 4,776,292 1,673,200 4,776,292 4,809,134 0 32,842 0.69% License/Permits Rental Housing 2,620 1,980 500 540 500 500 0 0.00% Tobacco 1,000 750 1,000 250 1,000 1,000 0 0.00% Alcoholic Beverages 14,743 8,510 8,820 8,320 8,820 8,820 0 0.00% Others-Business 2,739 3,244 1,000 1,130 1,000 1,000 0 0.00% Building Permits 231,436 176,679 180,000 66,520 120,000 90,000 (90,000) -50.00% Tree Trimming Licenses 570 540 450 150 450 450 0 0.00% Dog Licenses 3,288 3,667 3,500 1,987 3,500 3,500 0 0.00% Others-Misc. 75 50 1,000 50 1,000 1,000 0 0.00% Total License/Permits 256,471 195,420 196,270 78,947 136,270 106,270 0 (90,000) -45.86% Inter-governmental Revenues State Aids Mkt Value Credit Aid 32,995 15,206 0 0 0 0 0 #DIV/O! PERA Aid 4,751 4,751 5,000 0 5,000 5,000 0 0.00% MSA Road Aid 58,155 58,198 60,000 30,736 60,000 60,000 0 0.00% Total State Aids 95,901 78,155 65,000 30,736 65,000 65,000 0 0 0.00% Total I nter-govern mental 95,901 78,155 65,000 30,736 65,000 65,000 0 0 0.00% Charges For Service General Government 15,899 20,989 15,000 2,053 15,000 15,000 0 0.00% Engineering 0 0 0 0 0 0 0 #DIV/O! Recreation 34,920 29,765 31,000 21,035 31,000 31,000 0 0.00% Total Charges For Service 50,819 50,754 46,000 23,088 46,000 46,000 0 0 0.00% Fines & Forfeits 77,777 53,369 55,000 28,165 55,000 55,000 0 0.00% Misc. Revenues 286,684 176,535 150,000 62,151 128,000 128,000 (22,000) -14.67% Total Revenues Before Tsfrs 5,100,392 5,136,833 5,288,562 1,896,288 5,206,562 5,209,404 0 (79,158) -1.50% Transfers From General Fnd Rsvs 0 0 160,000 0 160,000 155,000 (5,000) -3.13% From Technology Fund 0 0 0 0 0 25,000 25,000 4DIV/0! From Liquor Fund 40,000 0 40,000 0 40,000 10,000 (30,000) -75.00% Total Transfers 40,000 0 200,000 0 200,000 190,000 0 (10,000) -5.00% Total Revenues & Transfers 5,140,392 5,136,833 5,488,562 1,896,288 5,406,562 5,399,404 0 (89,158) -1.62% Other Funding Sources 0 0 0 0 0 0 0 0 0.00% Total Revenues $5,140,392 $5,136,833 $5,488,562 $1,896,288 $5,406,562 $5,399,404 $0 (89,158) -1.62% 5 CITY O GENERAL FUND SUM...ARY OF E) 7 .t ZES & TRANSFERS OUT 2010 I_ f #3 GENERAL FUND BUDGET Actual Actual Adopted Y-T-D June Proposed Revised Adopted % 2007 2008 2009 2009 2010 2010 2010 Change Change Expenditures General Government Mayor and Council Administration General Government Elections Finance Professional Services Planning and Zoning Municipal Building - Capital Tsfr: Pub Facilities Total General Government Public Safety Police Fire Protection Protective Inspection Animal Control Total Public Safety Public Works City Engineer Public Works Services -Capital Tsfr: Equip/Strmwtr Streets and Roadways -Capital Tsfr: Street Imprvs. Snow and Ice Removal Traffic Cntrl/Street Lights Sanitation/Waste Removal Tree Maintenance Total Public Works Culture and Recreation Parks and Recreation -Cap Tsfr: Park Capital Imps Total Culture and Recreation Total Expenditures & Transfers 63,319 69,721 70,194 32,262 70,194 64,194 149,180 229,292 173,521 70,908 180,379 178,362 243,848 225,969 267,569 126,697 275,563 236,419 2,894 47,532 7,211 1,442 41,029 38,939 174,495 164,651 198,837 91,384 195,675 193,784 196,880 213,220 205,500 171,644 207,000 199,000 184,854 206,595 213,306 95,656 204,259 198,960 206,645 151,372 266,920 34,616 315,300 313,800 110,000 50,000 110,000 0 60,000 60,000 (6,000) -8.55% 4,841 2.79% (31,150) -11.64% 31,728 439.99% (5,053) -2.54% (6,500) -3.16% (14,346) -6.73% 46,880 17.56% (50,000) -45.45% 1,332,115 1,358,352 1,513,058 624,609 1,549,399 1,483,458 1,072,528 1,139,063 1,176,000 587,127 1,185,887 1,180,000 595,947 622,934 600,638 300,225 600,638 595,482 128,142 137,784 133,934 55,399 124,752 125,143 21,390 0 0 0 0 0 132,998 147,576 161,057 70,382 115,857 111,446 405,010 413,605 420,495 192,621 414,300 412,985 200,000 175,000 175,000 0 175,000 100,000 171,221 197,434 190,945 44,970 190,869 204,107 345,000 645,000 700,000 0 700,000 700,000 69,189 68,606 86,512 40,104 85,496 85,974 39,274 46,537 47,600 18,127 51,049 51,049 4,458 9,736 5,545 1,994 5,549 4,900 29,598 24,351 30,568 6,031 33,254 33,479 1,818,007 1,899,781 1,910,572 942,751 1,911,277 1,900,625 200,920 229,255 202,210 137,404 236,759 269,381 15,000 15,000 45,000 0 45,000 42,000 1,396,748 1,727,845 1,817,722 374,229 1,771,374 1,703,940 0 (29,600) -1.96% 4,000 0.34% (5,156) -0.86% (8,791) -6.56% 0 hDIV/0! 0 (9,947) -0.52% (49,611) -30.80% (7,510) -1.79% (75,000) -42.86% 13,162 6.89% 0 0.00% (538) -0.62% 3,449 7.25% (645) -11.63% 2,911 9.52% 0 (113,782) -6.26% 67,171 33.22% (3,000) -6.67% 215,920 244,255 247,210 137,404 281,759 311,381 0 64,171 25.96% 4,762,791 5,230,233 5,488,562 2,078,993 5,513,809 5,399,404 0 (89,158) -1.62% 7 and Council FUND: 101 GENERAL DEPARTMENT NUMBER: 41110 DEPARTMENT MISSION: To establish the policies and priorities for the city, allocate the necessary resources to achieve the stated priorities, and provide general direction to the administrator in policy implementation. DEPARTMENT DESCRIPTION / PURPOSE: The Mayor and Council meet twice monthly, and in periodic work-sessions, to provide overall direction for the city and establish the priorities that pertain to services provided to residents. The mayor and council adopt policies and ordinances and provide staff with the necessary resources in which to carry out these priorities, goals, and policies. The city council also sits as the Shorewood Economic Development Authority (EDA). 2010 NEW INITIATIVES: • Ensure the success of the SouthShore Community Center. • Provide support and resources to accomplish the park improvement program. • Provide support and resources to continue the road improvement program. • Determine best use of liquor funds. 2010 ONGOING COMMITMENTS: • Work with staff to establish the annual work program of city goals and priorities. • Strategic planning and direction. • Development and approval of the budget. • Meet at least annually with advisory commissions. • Regular meetings of the council SIGNIFICANT CHANGES AFFECTING BUDGET: Reduction in mileage and conferences by $1,000. Reduction in recognition event funds from $5,000 to $2,500. 8 FUND: 101 DEPARTMENT: Mayor and Council DEPT 41110 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing Supplies/Materials Support Services Capital Outlay Transfers TOTAL STAFFING: Part time: Mayor Councilmembers 16,794 16,794 16,255 16,794 8,397 16,794 16,794 0 1,127 1,402 2,478 1,400 2,544 1,400 1,200 0 43,039 45,123 50,988 52,000 21,322 52,000 46,200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 60,960 63,319 69,721 70,194 32,262 70,194 64,194 0 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 9 r e T a L t, ~ FUND: 101 GENERAL DEPARTMENT NUMBER: 41300 DEPARTMENT MISSION: To provide guidance and support to the City Council in the development of policies and goals and to ensure the direction and priorities established by the City Council are carried out in an efficient and effective manner. DEPARTMENT DESCRIPTION / PURPOSE: The Administration department provides support to the Council in the development and implementation of policy and priorities. The department ensures the Council receives complete information in order to make sound policy decisions on behalf of the City; and also provides legislative support and leadership to other departments in an effort to achieve the stated goals. 2010 NEW INITIATIVES: • Implementation of the employee evaluation system. ® Implementation of the SouthShore Community Center business plan. o Develop and implement method for greater resident input on major city issues. 2010 ONGOING COMMITMENTS: The department has the ongoing responsibility in the preparation of Council agendas, managing the budget process, community relations, long range planning, personnel management, contract management and legislative support and liaison. SIGNIFICANT CHANGES AFFECTING BUDGET: Includes a merit increase pool of $24,000. Reduction in travel, conference, and school of $1,800. Reduction in contract services of $500. Replacement computer (1) to be funded via transfer from the Technology Fund. 10 FUND: 101 BUDGET ITEM DEPARTMENT: Administration Actual Actual 2006 2007 Actual 2008 Adopted 2009 YTD June 2009 Proposed 2010 Revised 2010 DEPT 41300 Adopted 2010 Staffing 120,341 144,631 227,601 167,371 68,360 171,229 171,712 0 Supplies/Materials 148 0 81 200 40 200 0 0 Support Services 5,015 4,549 1,610 5,950 2,509 6,450 4,150 0 Capital Outlay 0 0 0 0 0 2,500 2,500 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 125,503 149,180 229,292 173,521 70,908 180,379 178,362 0 STAFFING: Full Time: Admistrator/Clk Exec Sec/Dep Clk 1.00 1.00 1.00 1.00 1.00 1.00 .20 .33 .25 .25 .25 .25 1.00 1.00 .25 .25 _ g City' ~ _b FUND: 101 GENERAL DEPARTMENT NUMBER: 41400 DEPARTMENT MISSION: To strive to be responsive in providing neat and accurate information in an honest and efficient manner to residents, the city council, contractors, staff, and the general public, in an effort to present a high-quality image of the City. DEPARTMENT DESCRIPTION / PURPOSE: This department provides day-to-day management of the city office including reception and clerical duties, general office equipment and supply purchases and service. Responsible for the preparation of city council meeting agenda packets and recording and transcription services for council meetings; also responsible for various licensing functions; and oversees the city communications. Official keeper of permanent records and oversees the document imaging system; publishes legal notices; maintains employee handbook, position descriptions and performance evaluation forms. 2010 NEW INITIATIVES: ® Develop, enhance and increase communications within the community through the website, newsletter, facebook, and other communication tools. 2010 ONGOING COMMITMENTS: • Provide timely information for general information requests. • Continue web site improvements and tools for communication with city hall. • Monthly city newsletter production. • Maintain city government records; including scanning / disposal per record retention schedule. • Maintain updates to employee handbook and city code. SIGNIFICANT CHANGES AFFECTING BUDGET: Reduction of part-time wages for scanning assistance and front desk help ($10,000) Reduction of conferences and training budget ($1,000) Replacement Computers (1). To be funded via transfer from the Technology Fund. 12 FUND: 101 DEPARTMENT: General Government/City Clerk DEPT 41400 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 136,706 192,411 177,187 202,149 103,257 219,783 181,639 0 Supplies/Materials 19,965 18,753 20,049 21,000 7,829 19,975 19,975 0 Support Services 29,454 32,116 28,733 36,920 10,746 33,305 32,305 0 Capital Outlay 8,974 568 0 7,500 4,865 2,500 2,500 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 195,099 243,848 225,969 267,569 126,697 275,563 236,419 0 STAFFING: Full time: Exec Sec/Dep Clk .61 .75 .55 .70 .70 .55 .55 Parks Secretary .60 .58 .65 .65 .65 .65 .30 Secretary/Receptionist .55 .78 .60 .60 .60 .60 .60 Part time: Communications Tech. 0.57 0.57 0.57 0.57 0.57 0.40 0.40 Website Maint. 0.20 0.20 0.20 0.20 0.20 0.40 0.40 Temporary Receptionist 13 FUND: 101 GENERAL DEPARTMENT NUMBER: 41410 DEPARTMENT MISSION: To provide accurate and timely elections in compliance with state law. DEPARTMENT DESCRIPTION / PURPOSE: This department provides for the preparation and supervision of State/Federal Primary, City General, and Special elections by the Deputy City Clerk. 2010 NEW INITIATIVES: ® Attend training at the state and county level on new legislation relating to elections. • Provide training to election judges on new legislation. ® Update all materials and supplies and equipment to incorporate new legislation. 2010 ONGOING COMMITMENTS: ® Provide required training sessions for election judges. ® Staff to attend training sessions and meetings provided by SOS and Hennepin County. ® Prepare polling places for Election Day. ® Maintain election records in accordance with state laws. SIGNIFICANT CHANGES AFFECTING BUDGET: None. 14 FUND: 101 BUDGET ITEM DEPARTMENT: Elections Actual Actual 2006 2007 Actual 2008 Adopted 2009 YTD June 2009 Proposed 2010 Revised 2010 DEPT 41410 Adopted 2010 Staffing 24,348 322 37,678 4,881 610 32,179 30,689 0 Supplies/Materials 1,688 2,540 5,120 2,300 807 4,950 4,950 0 Support Services 2,051 31 4,734 30 25 2,700 2,700 0 Capital Outlay 1,931 0 0 0 0 1,200 600 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 30,018 2,893 47,532 7,211 1,442 41,029 38,939 0 STAFFING: Full time: Exec Sec/Dep Clk Part time: Election Judges 0.18 0.10 0.20 0.05 0.05 0.20 0.20 0.20 69 0 65 0 0 65 65 65 15 FUND: 101 GENERAL DEPARTMENT NUMBER: 41500 DEPARTMENT MISSION: To present accurate, timely, and complete information in an understandable and friendly manner to the council, residents, and staff of the city; and to protect and manage the assets of the city as directed by the City Council. DEPARTMENT DESCRIPTION / PURPOSE: The finance department is responsible for processing all financial transactions of the City in accordance with federal, state and local laws; in compliance with Generally Accepted Accounting Principles. Transactions include accounts payable, accounts receivable, payroll, investments, utility billing, special assessments, risk management, employee benefits, and financial reporting. The finance department also produces the following documents, with the assistance of other city departments: the annual operating budget, the Comprehensive Annual Financial Report (CAFR), and the five-year Capital Improvement Program (CIP). 2010 NEW INITIATIVES: • Comprehensive review of all finance policies • Others TBD. 2010 ONGOING COMMITMENTS: • Prepare annual budget document. • Coordinate the annual City audit. • Prepare CAFR documents for submittal to GFOA Certificate of Achievement program. • Review debt issues and make recommendations on debt structure. • Review, update, and maintain financial policies and procedures. • Coordinate and make recommendations on employee benefits. • Manage the City's investment portfolio within the Investment policy guidelines. SIGNIFICANT CHANGES AFFECTING BUDGET: Tuition Reimbursement decreased by $1,000. 16 FUND: 101 DEPARTMENT: Finance DEPT 41500 BUDGET ITEM Actual 2006 Actual 2007 Actual 2008 Adopted 2009 YTD June 2009 Proposed 2010 Revised 2010 Adopted 2010 Staffing 144,311 139,037 154,684 177,637 81,067 177,975 178,584 0 Supplies/Materials 5,018 5,338 5,914 8,200 6,606 7,700 7,700 0 Support Services 9,368 3,083 4,053 8,500 2,033 8,500 7,500 0 Capital Outlay 639 27,040 0 4,500 1,678 1,500 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 159,336 174,498 164,651 198,837 91,384 195,675 193,784 0 STAFFING: Finance Dir 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Sr Acctg Clerk .62 .85 .75 .75 .75 .75 .75 .75 Acctg. Clerk .5 .5 .0 .0 .0 .0 .0 .0 17 d- _ { FUND: DEPARTMENT NUMBER: ~ervices 101 GENERAL 41600 DEPARTMENT MISSION: To provide quality legal, assessing, and auditing and other contractual services to support the general administration and operations of the City. DEPARTMENT DESCRIPTION / PURPOSE: The city contracts with several different firms and organizations to provide necessary support services. Assessing services provide property valuation services for tax purposes and are obtained through a contract with Hennepin County. Legal services, both criminal and civil, are contracted out and include general counsel, litigation, and prosecution of criminal matters. Auditing services are provided by Abdo, Eick and Meyers, LLP, an independent CPA firm, to ensure proper fiscal accountability. 2010 NEW INITIATIVES: ® The city does not have any major new initiatives in this area that will impact the budget. 2010 ONGOING COMMITMENTS: ® Annual property assessment services provided are based on a contract with Hennepin County approved by the city council. ® Annual financial audit as required by MN statutes. • Legal matters involving policy and ordinance advice and regular prosecution of criminal acts. SIGNIFICANT CHANGES AFFECTING BUDGET: Assessing services are expected to increase by $4,000. Miscellaneous services reduction of $10,000. Civil Attorney retainer rate may change, based on actual time during first year of the agreement with the new firm, Kennedy and Graven. 18 FUND: 101 BUDGET ITEM DEPARTMENT: Professional Services Actual Actual Actual 2006 2007 2008 Adopted 2009 YTD June 2009 Proposed 2010 Revised 2010 DEPT 41600 Adopted 2010 Staffing 0 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 0 Support Services 164,867 196,880 213,220 205,500 171,644 207,000 199,000 0 Capital Outlay 0 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 164,867 196,880 213,220 205,500 171,644 207,000 199,000 0 STAFFING: 19 -,oning FUND: 101 GENERAL DEPARTMENT NUMBER: 41910 DEPARTMENT MISSION: To guide and control the physical development and redevelopment of the community. Coordinate and implement long-range city-wide and area planning activities. DEPARTMENT DESCRIPTION / PURPOSE: This department is responsible for the review of development proposals, preparing and updating the Comprehensive Plan and other long-range planning activities. It provides for administration and enforcement of the City's zoning codes, and the preparation and upkeep of zoning, subdivision, floodplain, and other planning and zoning related ordinances. One of the primary purposes of the department is to guide the development review process consistent with Council goals and objectives. In addition to public participation and review by the Planning Commission and City Council, this department coordinates the development review by all other city departments and government agencies with jurisdiction over projects. A primary activity in this area is to review and update the city's environmental standards, and ensure that new development and redevelopment occur in an environmentally sensitive manner to preserve and enhance the city's natural resources 2010 NEW INITIATIVES: ® Increase interactivity with residents Update/adopt regulations relative to mixed use development Implement actions/projects identified in 2009 Comprehensive Plan Prepare complete physical and socio-economic inventory of community Initiate requirement of electronic application submittals ® (More to follow based on Council's 2010 goals and objectives) 2010 ONGOING COMMITMENTS: ® Update/enhance city maps ® Update/enhance procedure information and handouts ® Maintain and expedite the development review process SIGNIFICANT CHANGES AFFECTING BUDGET: Reduce contractual services by $3,500 by staff taking commission minutes. Reduce conferences/training by $2,100. 20 FUND: 101 DEPARTMENT: Planning & Zoning DEPT 41910 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 180,556 169,864 192,979 199,601 91,518 192,704 193,605 0 Supplies/Materials 789 1,659 1,310 1,755 1,260 1,105 655 0 Support Services 10,125 13,330 9,986 11,950 2,412 10,450 4,700 0 Capital Outlay 2,834 0 2,320 0 465 0 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 194,305 184,853 206,595 213,306 95,656 204,259 198,960 0 STAFFING: Full time: Planning Dir .97 .95 .97 .97 .97 .97 .97 Planning Asst. 1.00 1.00 1.00 1.00 1.00 0.90 0.90 Part Time Clerical 21 P7 FUND: 101 GENERAL DEPARTMENT NUMBER: 41940 DEPARTMENT MISSION: To provide for the physical operation of the city office building DEPARTMENT DESCRIPTION / PURPOSE: This department provides for the physical operation of the city office building; utilities; maintenance of office equipment and the building structure. General liability, property, and casualty insurance coverage is also provided under this department. 2010 NEW INITIATIVES: TBD 2010 ONGOING COMMITMENTS: ® Identify facility maintenance needs. • Identify options for maximum utilization of office space. ® Maintain facilities at current level or better utilizing staff to reduce maintenance costs. ® Promote community programs that enhance public facilities, such as "Adopt-A-Garden". SIGNIFICANT CHANGES AFFECTING BUDGET: Equipment maintenance increase of $26,000 for the computer support agreement with WarnerConnect. (This increase is expected to be off-set by reductions in telephone expense.) Replacement copier - $20,000 (to be funded via a transfer from the Technology Fund) 22 FUND: 101 DEPARTMENT: Municipal Building - City Hall DEPT 41940 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adapted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 0 0 0 0 0 0 0 0 Supplies/Materials 22,390 34,518 26,532 26,300 15,245 54,800 54,800 0 Support Services 130,974 100,227 116,950 139,500 19,370 137,500 133,000 0 Capital Outlay 54,036 71,899 7,890 101,120 0 123,000 126,000 0 Transfers 50,000 110,000 50,000 110,000 0 60,000 60,000 0 TOTAL 257,400 316,644 201,372 376,920 34,616 375,300 373,800 0 STAFFING: 23 Police FUND: 101 GENERAL DEPARTMENT NUMBER: 42100 DEPARTMENT MISSION: To deliver unparalleled police service by sustaining an organizational philosophy that fosters pride, dedication, and excellence among department personnel. This, in turn, nurtures innovative problem solving, community partnerships, and proactive crime suppression that enhances the quality of life in the cities of Excelsior, Greenwood, Shorewood, and Tonka Bay. DEPARTMENT DESCRIPTION j PURPOSE: The South Lake Minnetonka Police Department (SLMPD) is a joint powers entity organized under MN Statute 479, by the Cities of Excelsior, Greenwood, Shorewood, and Tonka Bay to provide member communities with law enforcement services. The SLMPD patrol division provides regular proactive patrol in each of the member communities 24 hours a day, 365 days a year and responds to 911 calls. The investigation unit provides follow-up investigations in an effort to resolve the crime and initiate prosecution of the crime. Officers also respond to medical emergencies to provide initial care and assistance to injured persons. Officers work with the Minnetonka School district on educational activities such as CounterAct, a substance abuse prevention program. The department has an active Community Service Officer program that provides animal control services to the community and provides assistance to officers in areas such as traffic control, parking enforcement, and where a licensed peace officer is not required. 2010 NEW INITIATIVES: 0 TBD 2010 ONGOING COMMITMENTS: ® Provide regular patrols and proactive enforcement of state and local laws. ® Investigation of criminal incidents in the City of Shorewood. Operation of the emergency operations center. ® Deployment of the speed cart in areas and neighborhoods where speeding is a concern. SIGNIFICANT CHANGES AFFECTING BUDGET: The only potential change is in the cost of fuel and ammunition. Otherwise, the SLMPD budget is rather flat from 2009 to 2010. Costs are allocated to each participating city on a set percentage basis. Shorewood's share of the SLMPD budget for the period 2007 - 2011 is 50%. 24 FUND: 101. DEPARTMENT : Police DEPT 42100 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 0 0 0 0 0 0 0 0 Supplies/Materials 184 59 0 0 0 0 0 0 Support Services 781,829 822,962 895,059 943,000 470,657 950,887 950,000 0 Capital Outlay 254,596 249,508 244,004 233,000 116,470 235,000 230,000 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 1,036,609 1,072,529 1,139,063 1,176,000 587,127 1,185,887 1,180,000 0 STAFFING: Chief 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Chief 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Sergeant 3.00 3.00 3.00 2.00 2.00 2.00 2.00 Investigator 2.00 2.00 3.00 2.00 2.00 2.00 2.00 Patrol Officer 7.00 7.00 7.00 8.00 8.00 8.00 8.00 Office Administrator 1.20 1.20 1.20 1.20 1.20 1.20 1.20 Office Specialist (part time) 1.00 1.00 2.00 2.00 2.00 2.00 2.00 Community Service Officer 1.00 1.00 1.00 2.00 2.00 2.00 2.00 25 Fire FUND: 101 GENERAL DEPARTMENT NUMBER: 42200 DEPARTMENT MISSION: To protect and enhance the quality of life of those who live, work and play within our community. This mission is achieved through fire suppression, emergency medical services, fire prevention, community awareness, hazardous material mitigation and disaster response. DEPARTMENT DESCRIPTION / PURPOSE: The Excelsior Fire District (EFD) is a Joint Powers organization created and operated under MN Statute 479 and serves the cities of Deephaven, Excelsior, Greenwood, Shorewood, and Tonka Bay. The EFD is governed by a five member board consisting of one elected official from each member city. The board establishes the budget and policy direction of the EFD. The fire chief is appointed to carry out the policies and mission. The city administrators from each member city serve on the Operations Committee and work with the chief to make the department a success. Shorewood also contracts for fire service from the Mound Fire department to provide fire protection to residents living on Enchanted and Shady Islands. The fire departments provide fire suppression/investigation services; first responder/emergency medical services; and assists with water rescue operations. A key component is education and prevention; therefore the district has a full-time fire inspector to ensure homes and businesses are in compliance with state fire code; the position also provides educational opportunities to schools. 2010 NEW INITIATIVES: • TBD 2010 ONGOING COMMITMENTS: • Provide responses to calls for fire service • Fire inspections • Train staff • Maintain fire equipment. SIGNIFICANT CHANGES AFFECTING BUDGET: The major change in the EFD's 2010 budget is a required contribution to the Fire Relief Association in the amount of $120,000. The Fire Board used a combination of cuts to the operating budget, operating fund reserves, and facility fund reserves to cover this expense. This resulted in a 0% increase in the member cities' contributions, including Shorewood, to the district for the 2010 EFD budget. 26 FUND: 101 DEPARTMENT: Fire Protection DEPT 42200 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 0 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 0 Support Services 314,647 291,368 319,411 316,138 161,590 316,138 315,858 0 Capital Outlay 249,203 304,579 303,524 284,500 138,635 284,500 279,624 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 563,850 595,947 622,934 600,638 300,225 600,638 595,482 0 EFD STAFFING: Chief (F/T) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Asst. Chief 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Dist. Chief 2.00 2.00 3.00 3.00 3.00 3.00 3.00 Captain 3.00 3.00 4.00 4.00 4.00 4.00 4.00 Coordinators 0.00 0.00 8.00 8.00 8.00 8.00 8.00 Fire Marshal (F/T) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Fire Inspector (P/T) 1.25 1.25 1.25 1.25 1.25 1.25 1.25 Training Officer 1.00 1.00 0.00 0.00 0.00 0.00 0.00 Firefighters 41.00 41.00 34.00 34.00 34.00 34.00 34.00 Admin Support (P/T) .25 .25 .5 .25 .25 .25 .25 27 Protective Ins-,- f FUND: 101 GENERAL DEPARTMENT NUMBER: 42400 DEPARTMENT MISSION: To safeguard life, health, property and public welfare by enforcing construction, safety, and building codes through plan review and inspections. DEPARTMENT DESCRIPTION / PURPOSE: Protective Inspections provides the following services: plan review, issuance of permits, field inspections for building construction projects; inspection observation for zoning code enforcement and property maintenance; inspection and monitoring of the city's rental housing program; and monitors environmental measures such as erosion control and tree replacement/reforestation. The department is also responsible for managing the long-term maintenance of city-owned buildings. 2010 NEW INITIATIVES: • TBD 2010 ONGOING COMMITMENTS: • Continue to work with the planning and zoning department to ensure compliance with property maintenance and rental housing regulations. • Continue to present property maintenance and code information to the public through the city's website and newsletter. • Continue to provide the following services in a timely, professional manner: building plan review, building inspections and zoning/property maintenance inspections. • Improve and enhance the coordination of plan review among various departments, including planning, engineering, and fire. SIGNIFICANT CHANGES AFFECTING BUDGET: None. 28 FUND: 101 DEPARTMENT: Protective Inspection DEPT 42400 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM . 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 124,767 118,166 130,391 122,484 53,538 117,552 117,943 0 Supplies/Materials 38 291 5 750 0 400 400 0 Support Services 14,689 9,685 7,388 10,700 1,861 6,800 6,800 0 Capital Outlay 87 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 139,580 128,142 137,784 133,934 55,399 124,752 125,143 0 STAFFING: Full time Building Official Planning Dir Planning Asst Secretary/Recept Parks Secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.00 .03 .03 .03 .03 .03 .03 .03 .20 .20 .20 .20 .20 .10 .10 .10 .10 .10 .10 .10 .10 .10 .05 .05 .05 .05 .05 .05 .05 29 City El _i-neer 101 GENERAL DEPARTMENT NUMBER: 43010 DEPARTMENT MISSION: To strive to provide effective and timely engineering and construction management services for the city; and to protect and enhance the infrastructure of the city as directed by the city council. DEPARTMENT DESCRIPTION / PURPOSE: This department is responsible for general engineering services in the city, including: development and implementation of the Capital Improvement Program (CIP); design and construction of public infrastructure improvement projects; review of all development proposals and plans; stormwater management and drainage plans; erosion control plans; and traffic management; all in accordance with City standards and good engineering practices. This position also serves as a liaison between the various government agencies. 2010 NEW INITIATIVES: ® Coordination and technical provisions for creation of GPS data bases. Nelsine and Meadowview street rehabilitation projects. ® Sanitary sewer I & I mitigation (create plans/specifications; televise) for the Galpin Lake area. 2010 ONGOING COMMITMENTS: ® Assist in determining right-of-way needs • Maintain construction files in a timely and accurate manner a Communicate in written manner to impacted residents twice during a construction project ® Provide good public relations with property owners adjacent to construction projects ® Provide in-house engineering, where feasible ® Annual pavement marking • Annual sealcoat maintenance ® Annual mill and overlay maintenance ® SWPPP inspection, reporting, compliance ® Capital Improvement Program projects SIGNIFICANT CHANGES AFFECTING BUDGET: Reduction in staffing costs from $132,600 (2009) to approximately $99,300 in 2010 by staffing cuts. 30 FUND: 101 DEPARTMENT: City Engineer DEPT 43010 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 111,465 119,803 124,018 132,594 64,474 99,286 94,875 0 Supplies/Materials 579 1,485 688 900 242 425 425 0 Support Services 83,389 9,184 7,505 18,653 3,839 15,146 15,146 0 Capital Outlay 0 2,526 15,365 8,910 1,828 1,000 1,000 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 195,433 132,998 147,576 161,057 70,382 115,857 111,446 0 STAFFING: Full time: City Engineer Eng Technician Clerical Dir of Pub Wks Part time: Clerical 0.00 0.92 0.95 0.95 0.95 0.95 0.90 0.71 0.32 0.25 0.25 0.00 0.00 0.00 0.10 0.01 0.10 0.10 0.10 0.10 0.10 0.50 0.25 0.02 0.02 0.02 0.02 0.02 31 - t-blic Works Service FUND: 101 GENERAL DEPARTMENT NUMBER: 43050 DEPARTMENT MISSION: To provide top quality, professional, effective, and timely supervision and support for all public works functions; and provide for public works utilities, shop, equipment maintenance, and fuels. DEPARTMENT DESCRIPTION / PURPOSE: This department provides for management and support services for the city's infrastructure, including roadways, trees, pathways, parks, wastewater collection systems, storm water systems, buildings, grounds and structures, in addition to vehicles, equipment, and traffic signals. 2010 NEW INITIATIVES: o TBD 2010 ONGOING COMMITMENTS: Key areas of focus include support and maintenance of: ® Public Buildings 0 Signalized intersections along State and County roadways ® 50 miles of local roadways i 101 acres of parkland and play structures S 50 pieces of equipment for the Public Works fleet, including vehicles, trailers and implements. SIGNIFICANT CHANGES AFFECTING BUDGET: Fuel and oil costs reduced from $51,750 (2009) to $43,123 in 2010, reflecting current market conditions. General supplies reduced from $10,000 (2009) to $9,000 2010, as a cost cutting measure. Utilities for public buildings reduced from $18,400 (2009) to $15,000 reflecting current market pricing. 32 FUND: 101 BUDGET ITEM DEPARTMENT: Actual 2006 Public Works Service Actual Actual 2007 2008 Adopted 2009 YTD June 2009 Proposed 2010 Revised 2010 DEPT 43050 Adopted 2010 Staffing 266,420 292,023 295,616 290,805 145,818 292,287 295,372 0 Supplies/Materials 53,501 70,206 77,289 80,800 26,994 72,123 71,123 0 Support Services 35,829 42,142 40,700 45,940 19,809 46,090 42,690 0 Capital Outlay 7,468 639 0 2,950 0 3,800 3,800 0 Transfers 200,000 200,000 175,000 175,000 0 175,000 100,000 0 TOTAL 563,218 605,010 588,605 595,495 192,621 589,300 512,985 0 STAFFING: Full time: Pub Wks Dir 0.49 0.75 0.50 0.50 0.50 0.50 0.50 Lt Equip Oper 1.93 1.50 1.95 1.95 1.95 1.95 1.95 Clerical .08 .05 .05 .05 .05 .05 .05 Utility Maint. Operators .77 .67 .67 .67 .67 .67 .67 Utility Lead .44 .25 .50 .50 .50 .50 .50 33 y s FUND: 101 GENERAL DEPARTMENT NUMBER: 43100 DEPARTMENT MISSION: To properly maintain the city's 50 miles of roadways and single bridge in an efficient and cost effective manner that will provide a safe and effective means to convey vehicular and pedestrian traffic, and to maximize the service life of the roadway surfaces and bridge infrastructure. DEPARTMENT DESCRIPTION / PURPOSE: The department uses internal personnel to patch and maintain asphalt surfaces, structures and perform roadway casting adjustments in the most cost effective manner. Specialty services such as roadway striping, asphalt milling and overlay, and bituminous seal-coating are completed by contractors equipped for these specialty services. 2010 NEW INITIATIVES: ® TBD 2010 ONGOING COMMITMENTS: Maintain all city roadways at a pavement rating of 3 or above, based on the City's Pavement Inventory Rating system. SIGNIFICANT CHANGES AFFECTING BUDGET: General supplies increased from $73,000 (2009) to $85,000 to reflect current market pricing for asphalt patching material and supplies. 34 FUND: 101 DEPARTMENT: Streets & Roadways DEPT 43100 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 87,376 87,344 100,157 93,895 28,928 94,369 95,607 0 Supplies/Materials 65,953 66,260 82,993 73,000 12,652 73,000 85,000 0 Support Services 11,379 17,617 14,284 23,500 3,390 23,500 23,500 0 Capital Outlay 0 0 0 550 0 0 0 0 Transfers 345,000 345,000 645,000 700,000 0 700,000 700,000 0 TOTAL 509,708 516,221 842,434 890,945 44,970 890,869 904,107 0 STAFFING: Full time: Lt Equip Operators 1.03 1.00 1.15 1.15 1.15 1.15 1.15 Util. Lead .25 .03 .2 .2 .2 .2 .2 35 Snow a--- FUND: 101 GENERAL DEPARTMENT NUMBER: 43125 DEPARTMENT MISSION: To provide snow removal and ice control for all local roadways, public parking areas, and pedestrian ways to ensure the safe and efficient movement of traffic, emergency vehicles, and the general public, before, during, and after inclement weather events. DEPARTMENT DESCRIPTION / PURPOSE: Snow is plowed and removed and de-icing chemicals are applied to the city's 50 miles of roadways after a 2-inch snowfall, or when roadway conditions dictate, in order to maintain safe conditions. This is accomplished with the city's five (5) dump trucks, one (1) grader, one (1) front end loader, and two (2) pickup plows. 2010 NEW INITIATIVES: 0 Investigate alternative de-icing chemicals. 2010 ONGOING COMMITMENTS: ® Remove snow and ice and complete salt/sand operations within 12 hours of a snow event. ® Clear trails, parking lots, and hockey rinks within 48 hours after roadway plowing has been completed. SIGNIFICANT CHANGES AFFECTING BUDGET: None. 36 FUND: 101 BUDGET ITEM DEPARTMENT: Snow & Ice Removal Actual Actual Actual 2006 2007 2008 Adopted 2009 YTD June 2009 Proposed 2010 Revised 2010 DEPT 43125 Adopted 2010 Staffing 14,468 33,960 33,875 41,172 15,833 40,379 40,857 0 Supplies/Materials 12,862 35,229 34,731 45,340 24,271 45,117 45,117 0 Support Services 0 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 27,330 69,189 68,606 86,512 40,104 85,496 85,974 0 STAFFING: Full time: Lt Equip Oper (LEO) .14 .42 .40 .40 .40 .40 .40 Util Maint .04 .09 .05 .05 .05 .05 .05 Util Lead .04 .10 .05 .05 .05 .05 .05 37 T1, FUND: 101 GENERAL DEPARTMENT NUMBER: 43160 DEPARTMENT MISSION: To install and maintain traffic control devices, such as traffic signals, roadway lighting, traffic signs in accordance with the MN Manual on Uniform Traffic Control Devices. DEPARTMENT DESCRIPTION / PURPOSE: This department routinely inspects all traffic signing and traffic control devices for condition and conformance to standards, and responds promptly to all traffic knock downs, vandalism, or destruction of traffic control devices. Coordinates relamping of LED signal indications by contracted licensed electricians. 2010 NEW INITIATIVES: ® Create a database for all traffic control devices, for conformance to standards for location and reflectivity standards, in accordance with Federal Highway Administration (FHWA) mandates. 2010 ONGOING COMMITMENTS: s Replacement of worn, damaged, or faded roadway name plate signs as the budget allows. SIGNIFICANT CHANGES AFFECTING BUDGET: General supplies increased from $4,000 (2009) to $6,000 in 2010 to meet the FHWA mandates. 38 FUND: 101. BUDGET ITEM DEPARTMENT: Traffic Control/Street Lighting Actual Actual Actual Adopted 2006 2007 2008 2009 YTD June 2009 Proposed 2010 Revised 2010 DEPT 43160 Adopted 2010 Staffing 0 355 0 0 0 0 0 0 Supplies/Materials 1,415 4,067 2,873 4,000 512 6,000 6,000 0 Support Services 40,286 34,852 43,664 43,600 17,615 45,049 45,049 0 Capital Outlay 0 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 41,701 39,274 46,537 47,600 18,127 51,049 51,049 0 STAFFING: 39 FUND: 101 GENERAL DEPARTMENT NUMBER: 43200 DEPARTMENT MISSION: To perform the duties of MN State Statute18.81 for the control of noxious weeds, as defined in MN Rules 1505.0730, as they are injurious to public health, the environment, public roads, crops, livestock, and other property. DEPARTMENT DESCRIPTION J PURPOSE: The City's designated Weed Inspector inspects properties, both public and private, on a complaint basis (for private properties), and provides documentation to assist staff and the city council to determine if a property is in violation. Duties also include property cleanup for properties found in violation of the city code and where the city council deems such duties are necessary. The City contracts with licensed services to apply herbicides to all road sides, park lands and public lands to control of noxious weeds. 2010 NEW INITIATIVES: ® No new initiates are being proposed for this department at this time. 2010 ONGOING COMMITMENTS: ® Weed inspection services as defined above. SIGNIFICANT CHANGES AFFECTING BUDGET: None. 40 FUND: 101 DEPARTMEN T: Sanitation/Waste Removal/Weeds DEPT 43200 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 608 2,667 2,005 645 1,994 649 0 0 Supplies/Materials 0 0 32 500 0 500 500 0 Support Services 5,395 1,791 7,698 4,400 0 4,400 4,400 0 Capital Outlay 0 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 6,003 4,458 9,736 5,545 1,994 5,549 4,900 0 STAFFING: 41 FUND: 101 GENERAL DEPARTMENT NUMBER: 43250 DEPARTMENT MISSION: To provide diseased tree inspection services to residents; to remove diseased trees located on city property; and to maintain and trim trees located on city rights-of-way and other property. DEPARTMENT DESCRIPTION / PURPOSE: The department is responsible for the detection and removal of diseased and unsafe trees in the city rights-of-way and other properties, and pruning of trees on city property. Contracted services are often used for removal of trees. 2010 NEW INITIATIVES: 9 The new threat of the Emerald Ash Bore will be investigated. 2010 ONGOING COMMITMENTS: ® Ongoing efforts to identify and control Oak Wilt will continue. SIGNIFICANT CHANGES AFFECTING BUDGET: Contracted services increased from $11,000 (2009) to $13,000 (2010) for anticipated increases in tree removal services. 42 FUND: 101 DEPARTMENT: Tree Maintenance DEPT 43250 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing 22,122 17,801 19,042 16,968 3,528 17,054 17,279 0 Supplies/Materials 1,323 502 333 2,600 264 2,700 2,700 0 Support Services 7,110 11,295 4,975 11,000 2,239 13,500 13,500 0 Capital Outlay 0 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 0 TOTAL 30,555 29,598 24,351 30,568 6,031 33,254 33,479 0 STAFFING: Lt Equip Operator (LEO) 27 .25 .25 .25 .25 .25 .25 43 ® ter- ~ - _-1 FUND: 101 GENERAL DEPARTMENT NUMBER: 45200 DEPARTMENT MISSION: To provide quality and attractive amenities to meet the diverse recreational and social needs of the community. DEPARTMENT DESCRIPTION / PURPOSE: The main objective of this department is to provide proactive maintenance of park facilities and grounds to ensure they are safe and attractive to park users. The department is also charged with developing, implementing and improving recreational and cultural offerings in the parks such as the music in the parks, free educational programming, community gardens, and so on. Finally, the department is responsible for the implementation of the park improvement master plan as recommended by the Park Commission and approved by the City Council. 2010 NEW INITIATIVES: • Apply for available grant funds to support capital projects. • Refurbish Badger Park warming house. • Install "rustic" trails at Badger and Silverwood Parks. • Continue tennis court rehabilitation program. • Consider expanding the community garden program. 2010 ONGOING COMMITMENTS: • General maintenance of park grounds and facilities. • Working with the athletic associations on use and scheduling of facilities. • Regular park programming. SIGNIFICANT CHANGES AFFECTING BUDGET: The most significant change is personnel related: the Park Secretary and Community Rec Resources will devote more time to park activities. There is also an added allotment ($6,000) for the AIS (aquatic invasive species) program. Lastly, the transfer to the Park CIP fund is now $42,000 (previously $45,000). The $3,000 difference is now allocated to park initiatives such as Arctic Fever and Community Gardens. 44 FUND: 101 DEPARTMENT: Parks & Recreation DEPT 45200 BUDGET Actual Actual Actual Adopted YTD June Proposed Revised Adopted ITEM 2006 2007 2008 2009 2009 2010 2010 2010 Staffing Supplies/Materials Support Services Capital Outlay Transfers TOTAL STAFFING: Full time: Dir of Public Wks Lt Equip Oper Clerical Part time: Clerical Seasonal: Summer Winter (rinks) 112,753 126,592 139,162 137,710 73,001 137,759 160,481 0 6,861 8,836 14,810 12,300 9,629 12,300 16,300 0 49,797 55,491 75,282 52,200 49,771 86,700 92,600 0 0 10,000 0 0 5,003 0 0 0 15,000 15,000 15,000 45,000 0 45,000 42,000 0 184,411 215,919 244,255 247,210 137,404 281,759 311,381 0 .07 .03 .03 .03 .03 .03 1.51 1.50 1.25 1.25 1.25 1.25 1.25 .30 .33 .35 .35 .35 .35 .65 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 45