07-11-11 CC WS AgP
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION COUNCIL CHAMBERS
MONDAY, JULY 11, 2011 6:00 P.M.
AGENDA
Attachments
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Lizée ____
Hotvet____
Siakel ____
Woodruff____
Zerby ____
B. Review Agenda
2. 2012 GENERAL FUND BUDGET Finance Director’s
memo, Draft Budget
3. ADJOURN
#2
MEETING TYPE
City of Shorewood Council Meeting Item
Work Session
Title / Subject: 2012 General Fund Budget
Meeting Date: July 11, 2011
Prepared by: Bruce DeJong
Reviewed by: Brian Heck
Attachments: Budget Spreadsheet
Policy Consideration:
This item will start the 2012 budget discussion for the City of Shorewood.
Background:
Staff has prepared a General Fund budget that continues to reflect our sensitivity to the economic
conditions that residents face. Overall expenditures are up only about $25,000 or 0.5%. The City of
Shorewood has not adopted an increase in the general tax levy for the last several years. This year the
conversation may be slightly different, in that the City Council has now designated the funds from the
sale of the liquor stores to public infrastructure needs which decreases revenues by $40,000. The City
has also budgeted the use of about $160,000 of general fund reserves to balance the budget for the last
several years. This starts our budget with about a $200,000 deficit if those practices are not continued.
The City is not now under any levy limits for 2012. The existing levy limits have expired as of June 30. If
the legislature and governor decide to implement levy limits as part of a budget solution, the City will
still be exempt due to our participation in the performance measure program through the Office of the
State Auditor (OSA).
As we refine the budget presentation, staff would like the City Council to consider moving the transfers
out of departments and keep them together in a separate section of the budget. This is part of the plan
to more closely match our budget to reporting requirements from the OSA. Staff may also request
transfer of additional money out of the general fund to more closely follow the OSA guidelines.
Revenues
Overall changes are slight in the revenue side. Staff has left the property tax revenues that same as last
year, for both general purposes and for the special levy for the public safety building debt service.
License and permit revenues have been kept the same except for building permits (up $10,000) and plan
check fees (up $1,000). Staff is expecting no change to intergovernmental revenue either from the PERA
Aid or MSA street maintenance funds. However, everything is in play with the state budget
negotiations. Charges for service remains steady with the 2011 budget. Staff has increased fine
revenue by $2,500 to reflect recent history that indicates additional revenues. Finally, transfer revenues
are decreased by $40,000.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
Expenditures
The City Council budget reflects the loss of the contingency amount, since Measurable Management nor
any similar program is being proposed for 2012. It also reflects the continuation of the $7,500 donation
to the South Lake-Excelsior Chamber. The net effect decreases this budget by about $29,000. There is
a 2% ($19,112) pool for non-union wage increases. The budget does not reflect any benefit increase for
non-union staff, although the practice the last several years has been for a $25 per month increase to
cover a portion of the insurance cost increase. The union contract expires at the end of 2011, but no
wage or benefit increase for these employees is contemplated in this preliminary budget. Staff would
like to pursue a multi-year contract to reduce the potential for large changes on an annual basis.
The Elections budget reflects the cost of a full election in 2012. The full-time wages have not been
increased because they will only represent a shifting of the allocation of time between other general
fund departments. There still is the possibility that additional equipment will be required if some form
of voter is approved by the legislature and governor.
The Police and Fire budgets show modest increases for the next year, but we have not received final
budget numbers from those agencies. The numbers are subject to change based on the funding formula
allocation and pension contribution amounts respectively.
The Public Works budget shows a $10,000 increase. An additional $8,000 covers anticipated fuel costs
and $2,000 pays for repairs to the salt/sand storage building. This does not reflect any change in salary
allocation to more closely match actual time coding in general fund departments and enterprise funds.
The Streets budget reflects the planned increase in the transfer for road construction of 3%. That was a
consensus when the 20-Year Street Plan was reviewed last fall to allow our resources to keep up with
the amount of maintenance necessary to keep our roads in good repair.
The other department budgets show only modest increases or slight decreases.
Financial or Budget Considerations:
There is a minimal financial impact to the city based on budget changes. The challenge again this year is
how to fund the operations of the city long-term without relying on non-recurring revenues. The City
Council needs to determine if it will continue to use one-time monies from fund balance to keep the
budget in balance.
Options:
The City Council may discuss any budget changes with staff and begin exploring potential modifications
to the long-term funding arrangements for the General Fund operations.
Recommendation / Action Requested:
Staff recommends that the City Council suggest funding policy and operational changes to staff to
review, analyze, and bring back options at the next budget work session.
Next Steps and Timelines:
The City Administrator and Finance Director intend to have budget discussions at each regularly
scheduled meeting date through the summer and others as deemed necessary.
Connection to Vision / Mission:
The budget as presented contributes to sound financial management.
GENERAL FUND BUDGET DETAIL
ActualActualAdoptedRequested PercentDollar
2009201020112012ChangeChange
REVENUES
TAXES
31010GENERAL PROPERTY TAX 3,899,749 4,030,047 4,158,672 4,158,6720.0% -
31010SPECIAL LEVY 617,620 617,620 604,647 604,6470.0% -
31020DELINQUENT AD VALOREM TAXES 62,141 6,725 - - -
31040FISCAL DISPARITIES 123,858 63,140 - - -
TOTAL TAXES 4,703,368 4,717,532 4,763,319 4,763,3191.0% 45,787
LICENSES & PERMITS
32110LIQUOR LICENSES 8,320 810 8,300 8,3000.0% -
32120TOBACCO LICENSES 1,000 825 1,000 1,0000.0% -
32160TREE TRIMMING LICENSES 630 570 450 4500.0% -
32175RENTAL HOUSING LICENSES 1,020 1,440 1,000 1,0000.0% -
32180OTHER BUSINESS LICENSES AND PE 3,555 4,940 3,100 3,1000.0% -
32210BUILDING PERMITS 97,651 118,189 70,000 80,000 14.3% 10,000
32215PLAN CHECK FEES 12,336 23,679 11,000 12,000 9.1% 1,000
32240DOG LICENSES 3,321 3,609 3,300 3,3000.0% -
32250HORSE PERMITS 50 50 50 500.0% -
32260OTHER NON-BUSINESS LICENSES AN - - - - -
TOTAL LICENSES & PERMITS 127,883 154,112 98,200 109,200-29.1% (44,912)
INTERGOVERNMENTAL
33130FEDERAL GRANTS-COMMUNITY DEVEL - - - - -
33160FEMA STORM DISASTER AID - - - - -
33401LOCAL GOVERNMENT AID - - - - -
33403MKT VALUE CREDIT AID 189 (265) - - -
33404PERA AID 4,751 4,751 4,751 4,7510.0% -
33418MUNICIPAL STATE AID FOR STREET 61,471 64,646 64,650 64,650 0.0% -
33422STATE SNOW REMOVAL/STORM DISAS - - - - -
33630METRO COUNCIL COMM DEV PLANNIN - - - - -
TOTAL INTERGOVERNMENTAL 66,411 69,132 69,401 69,4010.4% 269
CHARGES FOR SERVICES
34000CHARGES FOR SERVICES - - - - -
34101CITY HALL RENT 7,493 - - - -
34103ZONING AND SUBDIVISION FEES 5,738 2,824 4,500 4,5000.0% -
34104PASS-THRU CHARGES - 4,750 - - -
34105SALE OF COPIES 913 722 1,000 1,0000.0% -
34107SPECIAL ASSESSMENT SEARCHES 110 190 150 1500.0% -
34108ENGINEERING CHARGES TO OTHER F - - - - -
34110ELECTION FILING FEES - - - - -
34780PARK FEES & RENTALS 325 250 425 4250.0% -
34785PARK DONATIONS 27,070 34,146 29,000 29,000 0.0% -
34790CRESCENT BEACH REIMBURSEMENTS - - - - -
TOTAL CHARGES FOR SERVICES 41,649 42,882 35,075 35,075-18.2% (7,807)
FINES & FORFEITURES
35101FINES & FORFEITS 52,968 55,806 52,000 54,500 4.8% 2,500
TOTAL FINES & FORFEITURES 52,968 55,806 52,000 54,500-2.3% (1,306)
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GENERAL FUND BUDGET DETAIL
ActualActualAdoptedRequested PercentDollar
2009201020112012ChangeChange
MISCELLANEOUS REVENUE
36210INTEREST EARNINGS 58,624 38,968 45,000 45,000 0.0% -
36230CONTRIBUTIONS AND DONATIONS FR 820 - - - -
36240REFUNDS & REIMBURSEMENTS 11,349 13,423 - - -
36250POP MACHINE REVENUE - - - - -
36260DRY HYDRANT CHARGES 3,332 (125) 3,500 3,5000.0% -
36265CELLULAR ANTENNA REVENUE - - - - -
36270MISCELLANEOUS REVENUE 8,236 26,111 15,000 15,000 0.0% -
36275CONCESSIONS/VENDING 394 394 400 4000.0% -
TOTAL MISCELLANEOUS REVENUE 82,755 78,771 63,900 63,900-18.9% (14,871)
TRANSFERS
39202TRANSFERS FROM ENTERPRISE FUND 40,000 - 40,000 --100.0% (40,000)
39203TRANSFERS FROM OTHER FUNDS - 33,465 - - -
TOTAL TRANSFERS 40,000 33,465 40,000 --100.0% (40,000)
TOTAL REVENUES 5,115,034 5,151,700 5,121,895 5,095,395-167.2% (62,840)
EXPENDITURES
CITY COUNCIL
Personnel 16,794 16,794 16,800 16,800 0.0% -
Materials and Supplies 3,064 1,175 1,300 3,000130.8% 1,700
Support Services and Charges 46,158 45,776 102,430 71,302 -30.4% (31,128)
Total City Council 66,016 63,745 120,530 91,102-24.4% (29,428)
Administration
Personnel 149,286 144,743 142,828 142,8280.0% -
Materials and Supplies 40 - - - -
Support Services and Charges 7,909 3,153 4,760 5,89023.7% 1,130
Capital 1,631 - 1,631 --100.0% (1,631)
Total City Administration 158,866 147,896 149,219 148,718-0.3% (501)
GENERAL GOVERNMENT
Personnel 219,756 214,687 226,387 226,3870.0% -
Materials and Supplies 17,860 14,564 18,500 18,670 0.9% 170
Support Services and Charges 31,507 31,220 32,350 32,670 1.0% 320
Capital 6,540 1,213 - - -
Total General Government 275,663 261,684 277,237 277,7270.2% 490
ELECTIONS
Personnel 840 39,864 4,781 15,781 230.1% 11,000
Materials and Supplies 2,024 3,570 2,300 5,425135.9% 3,125
Support Services and Charges 25 1,508 - 1,275 1,275
Capital - - - - -
Total Elections 2,889 44,942 7,081 22,481217.5% 15,400
FINANCE
Personnel 166,032 147,242 153,224 153,2240.0% -
Materials and Supplies 6,952 7,576 6,950 7,3005.0% 350
Support Services and Charges 4,799 7,222 6,575 5,750-12.5% (825)
Capital 2,483 - - - -
Total Finance 180,266 162,040 166,749 166,274-0.3% (475)
PROFESSIONAL SERVICES
Support Services and Charges 223,859 178,604 199,000 199,3200.2% 320
Total Professional Services 223,859 178,604 199,000 199,3200.2% 320
Page 2
GENERAL FUND BUDGET DETAIL
ActualActualAdoptedRequested PercentDollar
2009201020112012ChangeChange
PLANNING
Personnel 195,474 175,553 170,694 170,6940.0% -
Materials and Supplies 2,138 149 655 6550.0% -
Support Services and Charges 8,990 6,882 11,810 9,412-20.3% (2,398)
Capital - - - - -
Total Planning 206,602 182,584 183,159 180,761-1.3% (2,398)
MUNICIPAL BUILDINGS
Materials and Supplies 34,321 51,244 16,500 16,500 0.0% -
Support Services and Charges 123,958 54,496 157,750 157,7500.0% -
Capital - 15,713 - - -
Bond Payments 5,425 2,959 103,950 --100.0% (103,950)
Transfers 99,773 160,368 - 103,950 103,950
Total Municipal Buildings 263,477 284,780 278,200 278,2000.0% -
POLICE
Materials and Supplies - 1,367 - - -
Support Services and Charges 943,989 949,337 995,750 1,008,5761.3% 12,826
Capital 232,940 228,068 230,066 230,0660.0% -
Total Police 1,176,929 1,178,772 1,225,816 1,238,6421.0% 12,826
FIRE
Support Services and Charges 323,180 322,535 337,130 332,805-1.3% (4,325)
Capital 277,270 272,629 270,697 277,9062.7% 7,209
Total Fire 600,450 595,164 607,827 610,7110.5% 2,884
PROTECTIVE INSPECTIONS
Personnel 119,184 115,081 109,096 109,0960.0% -
Materials and Supplies 139 28 300 200-33.3% (100)
Support Services and Charges 5,647 4,575 6,400 5,450-14.8% (950)
Capital 1,298 - 300 --100.0% (300)
Total Protective Inspections 126,268 119,684 116,096 114,746-1.2% (1,350)
CITY ENGINEER
Personnel 107,388 94,497 111,103 111,1030.0% -
Materials and Supplies 741 152 1,255 200-84.1% (1,055)
Support Services and Charges 7,639 8,937 13,320 11,960 -10.2% (1,360)
Capital 2,854 538 1,000 --100.0% (1,000)
Total City Engineer 118,622 104,124 126,678 123,263-2.7% (3,415)
PUBLIC WORKS SERVICES
Personnel 279,601 289,827 184,107 184,1070.0% -
Materials and Supplies 58,800 62,149 71,200 81,200 14.0% 10,000
Support Services and Charges 40,539 41,107 41,440 41,440 0.0% -
Capital 5,003 - - - -
Transfers 175,000 100,000 50,000 50,000 0.0% -
Total Public Works Services 558,943 493,083 346,747 356,7472.9% 10,000
STREETS AND ROADS
Personnel 69,846 88,822 113,459 113,4590.0% -
Materials and Supplies 53,168 80,253 85,000 85,000 0.0% -
Support Services and Charges 27,233 21,274 34,000 34,000 0.0% -
Capital - - - - -
Transfers 700,000 700,000 700,000 721,0003.0% 21,000
Total Streets and Roads 850,247 890,349 932,459 953,4592.3% 21,000
Page 3
GENERAL FUND BUDGET DETAIL
ActualActualAdoptedRequested PercentDollar
2009201020112012ChangeChange
SNOW AND ICE CONTROL
Personnel 35,995 55,052 56,567 56,567 0.0% -
Materials and Supplies 38,457 32,451 45,117 45,117 0.0% -
Support Services and Charges - - - - -
Capital - - - - -
Total Snow and Ice Control 74,452 87,503 101,684 101,6840.0% -
TRAFFIC CONTROL
Personnel - - - - -
Materials and Supplies 2,873 2,528 5,000 5,0000.0% -
Support Services and Charges 43,664 40,893 52,149 52,149 0.0% -
Total Traffic Control 46,537 43,421 57,149 57,1490.0% -
SANITATION/WEEDS/WASTE REMOVAL
Personnel 2,764 5,827 2,281 2,2810.0% -
Materials and Supplies 21 - 100 1000.0% -
Support Services and Charges - 3,210 4,400 4,4000.0% -
Total Sanitation/Weeds/Waste Removal 2,785 9,037 6,781 6,781 0.0% -
TREE MAINTENANCE
Personnel 7,513 20,625 14,020 14,020 0.0% -
Materials and Supplies 437 107 1,425 1,4250.0% -
Support Services and Charges 9,501 11,461 13,250 13,250 0.0% -
Total Tree Maintenance 17,451 32,193 28,695 28,6950.0% -
PARKS AND RECREATION
Personnel 147,532 153,637 185,708 185,7080.0% -
Materials and Supplies 10,094 14,237 19,800 19,800 0.0% -
Support Services and Charges 109,781 96,057 91,900 91,900 0.0% -
Transfers 45,000 42,000 42,000 42,000 0.0% -
Total Parks and Recreation 312,407 305,931 339,408 339,4080.0% -
GENERAL FUND TOTAL EXPENDITURES 5,262,729 5,185,536 5,270,516 5,295,8680.5% 25,352
REVENUE OVER / (UNDER) EXPENDITURES (147,695) (33,837) (148,621) (200,473)
Page 4