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081103 CC Ws AgP to I CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236 FAX (952) 474-0128' www.cLshorewood.mn.us' cityhall@cLshorewood.mn.us MEMORANDUM Date: August 07, 2003 To: Honorable Mayor and City Council Members 11. . ; Bonnie Burton, Finance Director/Treasurer ~ Craig Dawson, City Administrator ~ 2004 General Fund Operating Budget Work Session From: Re: The proposed 2004 General Fund Operating Budget is attached for your review. This document will be the basis for discussion at the budget work-session scheduled for Monday, August 11, 2003 following the City Council meeting. INTRODUCTION The budget requests included herein are the result of careful consideration by staff, guided by the direction provided by the City Council at its budget work-session in June. Shorewood provides essential services at a very reasonable cost, with a very lean budget and small staff. Staff memberS perform at a high level with economy and efficiency; professional staff consistently spends countless extra hours to meet and exceed the high expectations of performance. TRUTH-IN-TAXATION The truth-in-taxation process will follow the timetable and procedures in place prior last year. This includes City Council approval of a Pay2004 Proposed Tax Levy to be certified no later than September 15; final preparation of all City budgets, including utility and non-tax supported budgets in the fall; holding special public hearings on the proposed budget and levy; and adoption and certification of the final budget and levy before year end. n t..,1 PRINTED ON RECYCLED PAPER 11= ZR 2004 Budget Work Session Page 2 of3 f 2004 BUDGET REVENUE HIGHLIGHTS Levy Limits As the Council is aware, the City is again subject to levy limits for Pay2004. Accordingly, the City is able to raise the levy by an amount equivalent to 60% of the lost state aids (LGA and MVCA). For the City of Shorewood, this is an increase of about $56,000 or 2.19%, from the Pay2003levy of $2,851,847 to a Pay2004levy of $2,907,997. The proposed budget recommends that the Council levy the maximum permitted by state law under levy limits. The City is permitted to add a "special levy" to accommodate the debt service payments that will be made annually to fund the new public safety buildings. For 2004, Shorewood's share of this special levy amount is estimated to be $510,480 (the Pay2003 special levy was $304,500.) Fund Transfers The 2004 proposed budget proposes transfers from the General Fund to the Capital Improvement funds at levels approximately $50,000 less than the 2003 budget. The City has been fortunate in the past in that it has been able to make sizeable transfers from the General Fund (and its tax levy) to a variety of capital improvement funds, such as the equipment replacement fund and the local roadway fund. If levy limits are short-term, the City's most reasonable approach is to reduce transfers from the General Fund to the various capital improvement funds, as proposed. The level of transfers may be restored when levy limits expire. If levy limits become long-term, other funding sources could be considered, such as equipment certificates or road debt, which are exempt from levy limits in Minnesota. Reducing transfers is a reasonable option at this time, but should be monitored for long-term budget planning. Other Funding Sources In addition to the levy, the 2004 budget also contemplates other sources of funding such as fees, licenses, and permits. For Pay2004, these amounts are expected to remain stable from last year. 2004 BUDGET EXPENDITURE HIGHLIGHTS Most of the changes in the 2004 budget will be incremental for the continuing cost of doing business. Significant changes in the proposed 2004 budget include: Police Based on the revised funding allocation that took place a few years ago, Shorewood's total cost for the SLMPD in 2004 will be $928,579 compared to $797,664 for Pay2003, which is an increase of about 16%. SLMPD's proposed budget calls for a 6.3% increase for operations. However, the facility lease portion of this commitment is about $258,200 and is not subject to the levy limit law. Police Chief Bryan Litsey will present his budget in detail at the budget work-session. Fire The City of Shorewood's contribution to the Excelsior Fire District (EFD) budget will increase from $388,710 in 2003 to $481,629 in 2004. This includes the facility lease payment of 2004 Budget Work Session Page 3 of 3 $241,687 that is not subject to the levy limit law. Fire Chief Mark DuCharme will present his budget in detail at the budget work-session. Park & Recreation The Park & Recreation proposed 2004 budget includes the following: a $30,000 allocation again for a contract Park Coordinator position; $6,000 for Senior Community Services; and a transfer of $10,000 to the Park Capital Improvement Fund. Employee Pay Plan and Benefits The Pay2004 proposed budget does not contemplate adding new staff. The Public works budget provides for one (1) vacant LEO position authorized for 2003 by the City Council. The proposed Employee Pay Plan provides for 1.5% salary adjustments in January and July, which represents a decrease from the 2% increases as has been the custom in recent years. Several employees are scheduled to receive "step" increases. Health insurance premiums are estimated to increase 11 % for 2004. Therefore, for budget purposes, the City's monthly maximum contribution for insurance costs would increase from $538/month to $600/month per employee. Other benefits that have been suggested by staff, include the accrual of leave time (sick leave, vacation, and holiday time) by part-time employees on a pro-rata basis proportional to the number of hours worked. Staff is also exploring a "wellness" benefit program that would permit employees to convert accrued sick leave hours to a City co-pay that would not exceed $25-$30 per month to be applied to health club dues or similar activities. Information Technology The 2004 proposed budget includes funds for technology and communications, including needed replacement of three (3) computers based on a computer equipment replacement schedule. There are funds designated for computer software upgrades. In addition, funds have been budgeted to provide for regular monthly maintenance visits from Techies, Inc. (the successor to the Geek Squad), for regular maintenance of the City network computer system. OTHER Land & Open Space Acquisition Fund The Land Conservation and Environment Committee (LCEC) has recommended setting aside funds for future land acquisitions. The City Council has indicated support for this recommendation and accordingly, $5,000 is programmed to be transferred from the General Fund to a new Land & Open Space Acquisition Fund CONCLUSION The staff has presented proposals that are consistent with the needs to provide and improve services. We look forward to working with the Council to review the Year 2004 General Fund budget at this work session. If additional work sessions are desired, Monday, August 25 would be a suitable time. After the work sessions, changes will be incorporated into a final draft that will be presented to the Council for approval at the September 8 meeting, prior to certification by September 15. " -/ SOUTH LAKE MINNETONKA POLICE DEPARTMENT BRYAN T. LITSEY Chief of Police 810 EXCELSIOR BOULEVARD EXCELSIOR, MN 55331-1913 Office (952) 474-3261 Fax (952) 474-4477 MEMORANDUM TO: City Council Members Excelsior, Greenwood, Shorewood and Tonka Bay FROM: Bryan Litsey, Chief of Police DATE: August 1, 2003 - Friday . Revised 2004 Operating Budget Proposal RE: Prelude - My operating b~~~~tpr~~~~~lt8~!ll~b~t~~~tQ~!J~~()rs who serve on our governing board (i.e., Coor~ir\~tjngCg~tte..~)~ttheir q1!.fY1~rly meeting on July 23, 2003. They were well-infQtpied g{)' iothisghay.jg been involved in a budget work session with Ol:J$> .Gh~g~ in protocol from previous years is a more "hands on'ithi.y g~tary matters. It gives the member City Councils the .~. .......... ..;~~;i~~t~~e~~f~ating budget proposal is presented to them for consideQp. it h~;'Jlreaq.yundeJZg{)p~close scrutiny by their delegate on the CoordinatingCQ eeti:}SweU..3$th~itadffiinistrative staff. The Mayors recognized my efforts)toeratil)g budget as lean as possible in these economic times with expenses .... ..................... a half percent increase over 2003. They shared in my uneasiness, howevet;.tb~ is no margin for error in the proposal at a time when our undesignated (reserve) In is likely to fall to an unacceptable level at the end of2003, coupled with the uncertainties of moving into anew facility and the added responsibilities of homeland security. Even with close fiscal management, some of the line items were considered too unpredictable for the Coordinating Committee to endorse such a lean operating budget. I was given the task, therefore, to identify those operating expenses that were most susceptible to upward variances and to appropriate money in contingency to handle any additional expenses incurred in these categories. I was asked to do this as a revision to my initial proposal before forwarding the entire budget packet to the member City Councils for consideration. It is important to note that any contingency not used in 2004 would be available to help offset operating expenses in subsequent years as directed by the Coordinating Committee. Serving the South Lake Minnetonka Communities of Excelsior, Greenwood, Shorewood and Tonka Bay " PAGE 2 - Revised 2004 Operating Budget Proposal I have completed the aforementioned calculations as requested by the Coordinating Committee and have revised the operating budget accordingly by including a new line item under expenses labeled "Contingency" in the amount of $20,000. This contingency is earmarked as follows: Operating Costs for New Public Safety Facility - There are a number of uncertainties with moving into a new facility that are hard to determine prior to actually occupying the building. Estimates are just that and normally contingency is factored in until more precise costs are known. My operating budget proposal identifies specific categories impacted by our move into the new facility along with estimates of what the additional costs will likely be over those of our current police station. The most volatile of these categories is utility costs, which for the new facility is based on certain assumptions, standardized tables and anticipated patterns of use. This is a good faith calculation, but certainly not absolute. It does not take into account the recent talk about natural gas prices going up next heating season by 25 percent or more with the potential for electrical costs to follow suit. We are also still grappling with what some of the technology costs will be in the new facility. The capital expenses will be captured under the project budget along with some grant money that has been secured by our police department. There are still, however, some operational expenses that will be incurred both initially and ongoing; for example, transferring criminal justice data connections from the current to the new facility and integrating new technology in the facility with our computer network. Some of the other potentially volatile areas include insurance costs, moving costs and the added expense for diesel fuel to operate the generator in the new facility. In this latest proposal, contingency has been factored in as a hedge against the aforementioned uncertainties. Overtime Related Costs - Police work is unlike many other occupations in that much of the overtime paid to officers cannot be avoided and is the cost of doing business. Here are a few examples: An officer makes a DWI arrest an hour before the end of his shift and it takes three hours to complete from start to [mish; calls for service back up and an officer needs to be held over to help out; a suicidal party with a gun who has barricaded himself in their house and additional officers need to be called in to secure the scene; a drug arrest implicates numerous other people and search warrants need to be drawn up and served right away. The list goes on and on, but unpredictability is the nature of the profession. One area where we have some leeway is when it comes to deciding on minimum acceptable levels of staffing per shift and at what point to pay overtime to cover vacations, sick leave, etc. The past practice has generally been to work 4 PAGE 3 - Revised 2004 Operating Budget Proposal shorthanded rather than pay overtime as a cost-saving measure. This means if a situation arises that the on-duty officer(s)s cannot handle, additional officer(s) need to be called in on an overtime basis to help out or mutual aid needs to be requested from another law enforcement agency. Both of these options are less reliable, increase response time and can lead to officer safety issues. In this latest proposal, adding contingency would not allow us to reverse this current practice, but would provide a hedge against overtime attributed to the other uncertainties mentioned in this section. Concludin~ Comments - As previously stated, the use of contingency for increased expenses will be done judiciously with oversight by the Coordinating Committee. It does not restore the significant cuts that have been made on the expense side such as reduction in part-time clerical hours, a reduction in capital outlay and withdrawing from the Southwest Metro Drug Task Force. It also does not restore the other line items that have been trimmed to help reduce operating costs as identified in my initial budget proposal. Factoring contingency into the operating budget, however, does provide a buffer for the most volatile expense categories at a time when our undesignated (reserve) fund will likely fall below an acceptable level at the end of2003. The bottom line is that operating expenses are still very lean even with this contingency, which accounts for a 1.5 percent increase to the member cities. This raises the total amount from 4.8 to 6.3 percent over 2003. Of this revised total, under 2 percent is on the expense side with the remaining balance attributed to revenue shortfalls that need to be made up in 2004. To fully understand all the factors affecting this operating budget, however, it is important to review my initial budget packet included with these revised documents. As always, I am available to answer any questions regarding my initial and revised operating budget proposals for 2004. Copies to: Coordinating Committee Members and Administrative Staff South Lake Minnetonka Police Department Proudly Serving the Cities of Excelsior, Greenwood, Shorewood & Tonka Bay Prepared by . Police Chief Bryan Litsey 2004 Operating Budget Proposal Revised August 1, 2003 SOUTH LAKE MINNETONKA POLICE DEPARTMENT REVISED PROJECTED EXPENSES - 2004 OPERATING BUDGET 50100 Salaries Full-time $969,000 Increase 50200 Salaries Overtime $50,000 Decrease 50300 Salaries Part-time $53,000 Decrease 50500 FICNMedicare $17,500 Decrease 50600 PERA Pension $95,000 Increase 50700 Insurance Benefits $128,000 Increase 51000 Contract Services $8,000 Decrease 52100 Equipment Leases * $21,400 Increase 52200 Repairs & Maintenance ** $29,500 Increase 52300 Utilities *** $43,500 Increase 52400 Janitorial & Cleaning *** $9,000 Increase 52500 Printing & Publishing $4,600 Decrease 52800 Care of Persons $100 Same 53000 Supplies $36,500 Decrease 54000 Uniforms & Gear $9,500 Decrease 54500 Travel, Conferences & Schools $9,000 Decrease 55000 56000 Insurance *** $50,000 Increase 56100 Subscriptions, Memberships & Police License Fees $1,600 Decrease 57000 Special Projects **** $1,300 Decrease 58000 Capital Outlay ***** $18,000 Decrease ** Category affected by conversion to 800 MHz Radio System Anticipated increase in vehicle repairs due to fleet replacement schedule being extended *** Category affected by new public safety facility Withdrawal from the SW Metro Drug Task Force Reduced contribution to designated vehicle fund and no contribution to designated equipment fund "***** Contingency for select line item expenses (newly added category) " SOUTH LAKE MINNETONKA POLICE DEPARTMENT PROJECTED REVENUES - 2004 OPERATING BUDGET (Excludes Cities Contributions) 43100 43200 43400 44000 Minnetonka School District Copies of Documents, Photos and Tapes - Fingerprint Requests Security Details Investment Income $7,000 $3,000 $5,000 $5,000 Same Same Same Decrease SOUTH LAKE MINNETONKA POLICE DEPARTMENT REVISED 2004 BUDGET REQUEST BY CITY - THIRD YEAR OF FUNDING FORMULA CHANGE - $1,441,200.00 $425,154 $25,154 $1,441,200.00 8.5% $122,502 $7,248 6.3% $1,441,200.00 46.0% $662,952 $39,223 6.3% $1,441,200.00 16.0% $230,592 $13,643 6.3% 2003 CONTRIBUTIONS BY CITY $1,355,932.00 $400,000 $15,895 $1,355,932.00 8.5% $115,254 $4,580 4.1% $1,355,932.00 46.0% $623,729 $24,786 4.1% $1,355,932.00 16.0% $216,949 $8,621 4.1% SOUTH LAKE MINNETONKA POLICE DEPARTMENT BRYAN T. LITSEY Chief of Police BlO EXCELSIOR BOULEVARD EXCELSIOR, MN 55331-1913 Office (952) 474-3261 Fax (952) 474-4477 MEMORANDUM TO: SLMPD Coordinating Committee Members FROM: Bryan Litsey, Chief of Police DATE: July 20, 2003 - RE: ....,-: ..........:-..'-,-'-,-,.-.... ...-:.....-:.'...;_...-.,-. -,.:: -'-C'-','-,'--,','-,-",,'-,"' ... :;::;::::',: ,,,,,..-.-.:-:..-;-:..,,,:,-<,::,-:,"/',':;-:::_-.. -'-''-'':::>;.'-.:.::::;:.:=:::-< I have prepared an operatiq&~rdgetpro~~~~13~r2()p~tha~ls~xtremelY lean. This makes me uneasy given thela,~t~atoMrr~~~ryerv~~~~~~ll~~JY fall to an unacceptable level at the end of2003 COIl.P.. .......1e.......dwith.r1Aml~ialUI).~~...rta,mtie..... s of moving into a new . .. .. _..,'u__' ...,........ . facility and the added res .~iated . om ....... security. On the other hand, our member cities alr e difficulties and the directive at some of the bu. t a very lean operating budget. This obviously hast..n..n.. n .... ...............n .~rer{6r the operating budget to meet the high threshold in th~~pi~t.~?~~t(~llleIlt?(n ding to be approved by all four member cities. I also wanttonaMo..~;~~~t?fl~~~e:;rr when passage of the 2003 operating budget was in limbo ri ...neoea ..' . ... Ifee! this is a balanced proposal in that regard, but it is importanttn ...nillnot keep our organization status quo in a number of areas. Even with~ .... .agement, there are no safeguard provisions factored into this budget in ........ ...... ......<>funanticipated expenses such as a catastrophic event, major criminal investigation, rising fuel prices and a host of other unknowns. This operating budget proposal on the expense side represents less than a half percent increase over 2003. This has been quite a feat given the fact that over 80 percent of our operating budget is attributed to personnel related costs and compensation for union employees has already been negotiated for 2004. One factor that helps out is being able to reallocate most of the amount budgeted in the building rent category to the anticipated increases in operating expenses for the police portion of the new public safety facility. Unfortunately, this in and of itself is not enough and significant cuts had to be made in various other line item categories, including reductions in part-time clerical Serving the South Lake Minnetonka Communities of Excelsior. Greenwood, Shorewood and Tonka Bay PAGE 2 - Memorandum to Coordinating Committee Members 2004 Proposed Operating Budget hours, capital outlay and withdrawing from our long-standing affiliation with the Southwest Metro Drug Task Force. Expenses have been kept down as much as possible to counter the significant loss on the revenue side which skews the overall budget. Almost the entire increase to the member cities in 2004 can be attributed to this loss of revenue, which unlike 2003, cannot be offset by reserve funds which are projected to reach unacceptable levels by the end of this year. This proposal does nothing to start restoring our reserve funds, but does address the other revenue shortfalls. This dilemma was brought about in part by the reduction in contributions from the member cities toward the proposed operating budget for 2003. To make up this reduction in contributions from the member cities, the Coordinating Committee authorized using reserve funds to make up the difference so that expenses could remain as proposed to avoid a reduction in service. This was out of consideration for the seventeen of twenty city council members who supported the 2003 operating budget as proposed. In 2004, however, this reoccurring revenue shortfall needs to be made up without the benefit of reserve funds. As a point of reference, the proposed contributions from the member cities toward the 2004 operating budget would only increase by 2.4 percent instead of 4.8 percent if the operating budget for 2003 had been passed as proposed. The remaining revenue shortfall would have been much easier to manage without having to make such sharp cuts to the expense side. I have attached a spreadsheet which identifies the three factors impacting the increase to member cities in 2004. This bare bones operating budget is workable if estimates are on target, but there is little margin for error. The good news is that even with some reductions in clerical hours it preserves our current level of personnel. This is extremely important given the fact that our organization is already on the lean side when it comes to staffing. Fortunately, we have highly dedicated and professional personnel who are able to make up some of our deficiencies in staffmg levels. I have spent countless hours going over every aspect of this proposal, but any directive from the Coordinating Committee and/or member City Councils to make further reductions will go to the core of our operations. It would likely mean a reduction in personnel, which would be a major step backwards for our organization and the communities we serve. In addition, without having an adequately staffed and equipped organization, the investment in the new public safety facility will be devalued before being occupied. Our most important asset are the men and women who work for our organization and it is critical that we maintain our current level of staffmg. PAGE 3 - Memorandum to Coordinating Committee Members 2004 Proposed Operating Budget In conclusion, I have put together a comprehensive packet of information as part of my operating budget proposal for 2004 that expands upon the contents of this memorandum. It is my hope that because of your participation in the previous budget work session coupled with this latest informational packet you will endorse an operating budget for 2004 nothing less than what is being proposed. I look forward to discussing this further at the upcoming Coordinating Committee meeting on July 23,2003. South Lake Minnetonka Police Department Information Pertaining To 2004 Operating Budget Proposal Increase in Operating Expenses Over 2003 0.4% $6,400 $31,368 $27,500 Restoring Operating Budget Revenues 2.4% Reduction of Revenues 2.0% .. t South Lake Minnetonka Police Department Proudly Serving the Cities of Excelsior, Greenwood, Shorewood & Tonka Bay Prepared by . Police Chief Bryan Litsey 2004 Operating Budget Proposal Coordinating Committee Meeting Wednesday, July 23, 2003 f ~ PROPOSED 2004 OPERATING BUDGET OVERVIEW By - Police Chief Bryan Litsey PRELUDE The overall budget for the South Lake Minnetonka Police Department (SLMPD) consists of both the annual operating budget and debt service obligation for the new public safety facility tentatively scheduled for occupancy on or about January of2004. These are addressed independently in the Joint Powers Agreement (JP A) with the new public facility being a long-term debt obligation to each member city based upon ad valorem (tax capacity) that is subject to annual adjustments due to changing property values. This is unlike the operating budget which must be approved annually and is proportioned between member cities using fixed percentages. The fixed percentages used for the operating budget resulted from a change to the Joint Powers Agreement that first took effect in 2002. They are as follows: Excelsior Greenwood 29.5% 8.5% Shorewood Tonka Bay 46.0% 16.0% * Please refer to budget proposal for 2002 for an overview of how this change occurred This proposal concerns the operating budget, since it must go through an annual approval process as previously noted. This is my fifth year of preparing an annual operating budget as Chief of Police. The proposal for 2004 has proven to be the most challenging to date given these tight economic times and anticipated loss of revenues combined with our transition into a new public safety facility. There are also the ongoing concerns surrounding homeland security and the reliance placed on local law enforcement agencies such as ours to be on the front line as fIrSt responders when it comes to disastrous situations. Adding to the gravity of the situation is the need to restore the projected revenue shortfall in the 2003 operating budget coupled with the anticipated need to start replenishing the reserve fund to bring it up to an acceptable level. Confronted with these and other challenges, I altered my approach to the budget process this time around by seeking input earlier in the process and moving up the timetable for . ~ PAGE 2 - PROPOSED 2004 OPERATING BUDGET preparing the budget. I attended budget work sessions held by three of the four member City Councils between March and June, which put into context many of the financial considerations that need to be taken into account for 2004. Some of the uncertainties back then are now known with the tax bill at the state level fmally being resolved. The good news is that the fiscal impact of reductions in state aid to local governments was tempered from the initial proposals. In addition, levy limits were not imposed on cities with populations of less than 2,500 meaning three of our four member cities are exempt from these restrictions. Another change in protocol I implemented was holding a budget work session with the Coordinating Committee. This public meeting took place on June 24, 2003. In the past, I have held preliminary budget discussions at the staff level with the administrative executives for the member cities prior to advancing my budget proposal to the Coordinating Committee for consideration. I felt it would be prudent this year, however, to expand the scope of the preliminary budget discussions to include the four Mayors who serve on our Coordinating Committee. I also encouraged City Council members to attend. I prepared a comprehensive packet for this work session, which included an operating budget analysis for 2004 along with corresponding attachments. I summarized this information at the work session and addressed some of the anticipated revenue shortfalls and increased expenses for 2004 along with some budget reduction considerations. This was followed by a round table discussion on these and other related matters. There was agreement that our police department is not unlike most service organizations in that personnel related costs make up the largest percentage of operating expenses and these costs are basically a fixed part of the budget. It was further recognized that in order to obtain the greatest value from this most important organizational asset, offering competitive wages was an essential component of recruiting and retaining the best people. Reductions in this area were considered ill- advised, especially since the data provided shows that our organization is on the lean side when it comes to staffing. See Appendix A for supporting documentation. The majority ofthe discussion, therefore, was on the remainder of the operating budget not dedicated to personnel costs along with the various fund balances. Nothing was perceived as being excessive and, in fact, there was concern that the operating budget was not adequately contributing to some of the designated (capital) funds. There was also a reluctance at this time to move ahead with any budget reductions in the identified areas given the negative implications of such curtailments. More of an emphasis was placed on making sure that the best value is being achieved in the various expense categories and all revenue sources are being explored. PAGE 3 - PROPOSED 2004 OPERATING BUDGET Even though this has been an extremely difficult operating budget to prepare, it will be even more challenging to administer. The proposal I have prepared sustains operations at a marginal level with an increase in operating expenses of less than a half percent over 2003. Although I am uncomfortable with such a nominal increase, I had to balance this against the anticipated loss of revenue in 2004 coupled with the expectation during some of the city council work sessions to keep our operating budget very lean. It is important to remember that it takes all four member cities to approve the operating budget. This is a high threshold to meet, especially with the member cities facing varying degrees of budgetary woes. I have tried to prepare a proposal that takes this into account while still maintaining an adequate level of police service, but in order to meet this standard some significant concessions have been made that will adversely affect current and future levels of service. These include, but are not limited to, a reduction in support staff hours, a reduction in capital outlay and a withdrawal from our long-standing affiliation with the Southwest Metro Drug Task Force. Although the Mayors who serve on our Coordinating Committee had expressed a preference not to go this route, I see little choice in order to meet the aforementioned threshold of needing all four member cities to approve the operating budget. It is important to understand the ramifications of what occurred last year with the passage of the 2003 operating budget to fully grasp the magnitude of what I was confronted with going into the 2004 budgetary process. The Excelsior City Council voted for a resolution reducing their proposed share in 2003 as a way of helping balance their overall city budget concerns. The net effect of this action, which proportionately reduced the proposed share of the other three member cities, created a revenue shortfall of $31 ,368 for our organization. To balance the proposed operating budget against this revenue shortfall the Coordinating Committee authorized drawing on reserve funds with the expectation this be replenished in subsequent budget years. This is an important point to keep in mind, since our reserve fund will fall to an unacceptable level at the end of 2003 if this revenue shortfall is fully realized. This projected revenue shortfall in 2003 of $31,368 reoccurs in 2004 without the availability of reserve funds to make up the difference. In addition, another estimated $31,000 is needed to replenish the reserve fund if drawn down as anticipated by the 2003 operating budget. My operating budget proposal does nothing to replenish the reserve fund, but does address the revenue shortfall of$31,368 that reoccurs in 2004 along with some additional loss of revenue totaling $27,500. Making up this deficit accounts for almost the entire operating budget increase for 2004 of 4.8 percent. See Appendix B for supporting documentation. To further compound matters, we are moving into a new public safety facility in 2004, which creates some uncertainty over what actual operating expenses will be once the PAGE 4 - PROPOSED 2004 OPERATING BUDGET new building is occupied and the difficulty I will face in trying to manage any unanticipated additional costs. The primary objective of this very conservative operating budget is to maintain our most important asset with that being personnel. As already indicated, we are on the lean side when it comes to staffing compared to surrounding law enforcement agencies. This is an area where we can ill-afford to make reductions and, in fact, our authorized complement of officers has only increased by two since I came on the force twenty-two years ago. These were initiated through grants and were subsequently picked up as part of our operating budget. The demands on our organization continue to increase due to the growth in the region, recreational appeal of Lake Minnetonka, homeland security issues and crime becoming more high tech and multi-jurisdictional. Trying to compare the level of activity between law enforcement agencies can be difficult given the inconsistencies in the collection and reporting of data. One source that is fairly uniform is the Minnesota Crime Information Report which collects and reports crime data submitted by law enforcement agencies in the state. These are broken down by Part 1 crimes (most serious crimes) and Part 2 crimes (less serious crimes). In 2002, which is the most recent data, our police department was busy handling 1,035 Part 1 and Part 2 crimes as documented through the aforementioned reporting system. I am proud to say, however, that due to a hard working and dedicated group of officers our overall clearance rate was 67 percent, which is the best of any law enforcement agency in the Lake Minnetonka area. See Appendix C for comparative data. This proposal is not just to put down figures for a budget, but to give insight behind the numbers and articulate the fiscal challenges facing our organization. These include trying to accommodate the budgets of four cities while still maintaining an adequate and consistent level of policing across the board. I have been sensitive to the fact that the member cities need to adjust to the additional financial obligations of the new public safety facility, but I also have an obligation to the safety and well-being of the greater South Lake Minnetonka communities. The following narrative identifies some of the key points that need to be taken into consideration with the 2004 operating budget. This is not all-inclusive, but a barometer of current and future obligations. INCREASED EXPENSES Employee Compensation in 2004 - Over eighty percent of our operating budget is earmarked for personnel related costs. The collective bargaining agreement with the officers union has been settled for 2003-2004 with a re-opener in 2004 for health PAGE 5 - PROPOSED 2004 OPERATING BUDGET insurance benefits. Based upon past indicators, health insurance will likely continue its upward spiral in 2004 and the employer contribution will be increased proportionately. I have been advised by our health insurance provider to budget for a 15 percent increase. It is also important to understand that there has been a concerted effort on the part of the Coordinating Committee and myself to bring our officers into parity with similar size law enforcement agencies using the Stanton survey as one of the benchmarks for comparison. This is in recognition of the fact that equitable employee compensation has a direct correlation to the recruitment and retention of quality personnel. This effort, which has spanned over several collective bargaining agreements, should be close to realization by the end of 2004. It should also be noted that law enforcement officers are classified as essential employees and do not have the right to strike. This means that both the officers union and the employer are subject to binding arbitration if no agreement can be reached. This can be a costly process and create hard feelings between management and labor. This pitfall can be avoided if all parties are reasonable and such has been the case during my tenure as Chief of Police. The other category of personnel represented in our organization are non-union employees, which includes support staff and management personnel. Their compensation is approved annually through the Coordinating Committee based on my input. This has yet to be determined for 2004, but I will be advocating a modest increase in compensation for these personnel as reflected in my budget proposal. To calculate what the anticipated salary expenses will be for 2004 there are a number of factors that must been taken into account. These include not only the aforementioned wage adjustments, but also increases attributed to step increases within the first three years of employment, longevity, physical fitness incentives and educational incentives. Along with this, there are increased employer expenses associated with the public employees retirement association, social security and medicare, which are based on a percentage of salaries paid. Communications - Our police department is dispatched through the Hennepin County Sheriff s Communication Division. This is the most economical way to go since we are not in a financial position to support our own dispatch center. There currently is no cost for being dispatched through Hennepin County in terms of personnel, etc. There is, however, a considerable cost for the equipment needed to be part of their system, which took a significant increase with the implementation of the new 800 MHz Radio System. In addition, there are other technological upgrades on the horizon that will significantly increase our costs. I have expounded on these categories below. PAGE 6 - PROPOSED 2004 OPERATING BUDGET 800 MHz Radio System - In November of2002, the much anticipated conversion to the new 800 MHz radio system was implemented. As subscribers to the system we were required to upgrade our equipment in order to be compatible. This came with a hefty price tag for new portable and squad radios as well as training, service agreements, etc. In the final analysis we decided to go with the lease-to-own option in order to preserve some of our capital for other technological upgrades on the horizon through the Hennepin County system. In order to ease the impact on our operating budget, a Designated Radio Fund was established some years back to spread out the full impact. The schedule established for phasing in this cost to the operating budget was included as part of my 2002 operating budget proposal with annual increases of $2,000 until reaching parity in 2008. 911/CAD/MDT - The Hennepin County Sheriffs Communication Division has put us on notice that additional costs are forthcoming to replace their 91l/CADIMDT system. It should be noted that CAD stands for Computer Aided Dispatch and MDT stands for Mobile Data Terminals. This conversion will require us to upgrade our equipment in order to be compatible and comes with a hefty price tag attached. The goal of Hennepin County is to have a cost estimate early enough in 2004 so that affected agencies can include it in their 2005 budgets. It is doubtful that our Designated Radio Fund can absorb this entire expense without contributions from the operating budget. This presents a real dilemma at a time when the operating budget is faced with revenue shortfalls, yet must absorb these types of added expenses to keep pace with technology. Insurance - Our organization utilizes the League of Minnesota Cities Insurance Trust (LMCIT) for our insurance needs. Although the LMCIT is well managed, rates continue to increase in the insurance industry with no end in sight. One only need look at our workers' compensation premiums over the last few years. They have risen significantly due to rates and our experience factor. For example, the cost was $24,133 for the policy period of July 1,2002 to July 1, 2003 compared to the cost of$28,530 for the policy period of July 1, 2003 to July 1, 2004. This represents an increase of 18 percent. We have been able to reduce this by a couple thousand dollars each policy period due to our eligibility for a discount which applies if over ninety percent of your personnel are non- smokers. In addition, our experience factor, which spans over three years, should go down next renewal period since our last significant claim was in 1999. Our property/casualty insurance needs continue to grow irrespective of the new public safety facility. For example, plaintiffs are increasingly bringing civil actions against police under federal law since it does not offer the same indemnification and monetary PAGE 7 - PROPOSED 2004 OPERATING BUDGET limits afforded under state law. Consequently, an umbrella policy of two million dollars was added last renewal period (July 1, 2002 to July 1, 2003) to limit the financial exposure to our organization and the member cities. This change alone translated into an additional cost of $4,662 before taking into account other needed adjustments to our coverage in other areas. The total cost for the aforementioned policy period was $26,806 compared to $19,854 for the prior policy period (July 1, 2001 to July 1, 2002). On the flip-side, the amount of money being transferred from the operating budget to the Designated Insurance Fund in recent years has not kept pace with insurance costs. In fact, the annual contribution was lowered in 2001 from $43,000 to $40,000 to help reduce operating expenses and has remained at that level ever since. This, in turn, is draining the reserve balance which has traditionally been maintained in this fund as a hedge against the volatility in insurance costs from year-to-year. Police agencies are particularly vulnerable to this uncertainty, making it all the more important to have an adequate reserve balance in this fund. The bottom line is that the trend of drawing from this fund needs to be reversed soon or the operating budget will be faced with having to absorb a significant increase all at once. Professional Development (Training) - Providing adequate training for our department personnel is a critical component of maintaining a professional organization. I cannot overstate how important this is in terms of personnel retention, quality of service to the public, officer safety and protection against legal action for failure to adequately train personnel. There is a considerable amount of mandated training and critical skills training for police officers that needs to be provided regardless of budgetary concerns. The partial reimbursement we receive from the state for mandated training is being reduced and I have just received notification that the cost of providing training for one of the critical skills that all our police officers maintain is taking a considerable jump in 2004. This is for Emergency Medical Technician (EMT) certification and re- certification. Up until 2001, Hennepin County Emergency Medical Services (EMS) provided this training without cost to first responders such as our police officers. In 2001, they began to charge a nominal fee to help offset the cost of providing this training. In 2004, the increase will significantly impact our training budget. The cost of the EMT Refresher Course, which is required every two years, is going from the current $36 to $240 per first responder. All fourteen of our full-time police officers hold EMT certification, meaning the cumulative cost to maintain this critical skill every two-year cycle goes from $504 to $3,360. In addition, the cost for the initial EMT certification for new police officers who do not possess this skill is going from $198 to $644. I am also concerned that other critical skills training through the state could also spiral. This does PAGE 8 - PROPOSED 2004 OPERATING BUDGET not even take into account the other needed training for our personnel to keep them proficient in their positions and to promote their professional development. At this rate, it is doubtful we can achieve the desired level of training without future increases to our training budget, which also is used for conferences and other schooling. I have personally taken steps to reduce costs for conferences normally attended by law enforcement executives and emergency managers by not attending some of them, commuting rather than incurring lodging expenses and personally picking up the tab for some of the related expenses. In my nearly five years as Chief of Police, I have only attended one out-of-state training conference and even then paid for the meals and other miscellaneous expenses myself. Enerer Costs - The volatility in the energy market makes it difficult to project these costs from year-to-year. Pricing in the areas of natural gas for heating buildings and gasoline for operating vehicles have been particularly erratic with electric costs not far behind. In regard to operating our fleet of vehicles, we have absorbed the recent increases in fuel costs without any increases in this expense item for the last several budgets. If this trend continues, however, this will become increasingly difficult to manage without future increases in the budget. In addition, the emergency diesel generator for the new public safety facility will require fuel, with the cost of operation varying each year depending on the usage. This will initially be paid for out of the same expense category as gasoline for our fleet of vehicles, but there may not be enough allotted in this category to cover this expense in future budget years. In regard to energy costs for the new police facility, these have already been addressed in another section. Suffice it to say, however, this is not an area where cuts should be made since the delivery of public safety services is dependent on energy to keep the community safe. Operatin2 Costs for New Public Safety Facility - My memorandum to the Coordinating Committee dated March 28, 2003 summarized the potential impact to our operating budget when occupancy of the new public safety facility takes place on or about January 1,2004. The energy costs were estimated by TSP, which is the project architect. The estimated insurance costs were provided through the League of Minnesota Cities Insurance Trust (LMCIT) via our agent with the Twin City Group. Utilities and Insurance - The principal increases include utilities (Le. electrical, natural gas, sewer, water) and insurance on the structure. I have absorbed these added expenses to the 2004 operating budget by reallocating a portion of the $38,400 currently dedicated toward the annual lease payment for the current police station that will no longer be an operating budget liability once we vacate the building. PAGE 9 - PROPOSED 2004 OPERATING BUDGET Janitorial Services - Another identified increase is janitorial services, which includes regular cleaning and periodical carpet cleaning. Although this has not been determined yet, it is projected there will be an increase even if there is a split between police and fire. I have factored such an increase in the 2004 budget. Once again, I will absorb this added expense to the 2004 operating budget by reallocating a portion ofthe $38,400 now dedicated toward the annual lease payment for the current police station. Phones, Data Transmission, Etc. - One of the benefits of a joint facility is the sharing of operating costs. The plan is for police and fire to apportion the cost of a high-speed voice/data transmission line to the building. This is not only important to the daily operations of both organizations, but more importantly is an essential component ofthe Emergency Operations Center (EOC). A preliminary analysis of what police and fire currently pay for these services suggests upgrading this technology in the new facility should not increase dramatically given the sharing of costs. Escrow Account - An escrow account will need to be established between police and fire to cover capital costs for maintaining the building. For the first few years this should not be much of a factor with the newness of the structure and the building components being under warranty. Nevertheless, it would be advisable to maintain a capital fund designated for this long-term purpose. Due to prudent planning, our organization has already set money aside in the Designated Building Fund that can be used for this purpose as well as some of the other related costs associated with moving into the new facility. This will buffer the impact to our operating budget the first few years while this is being phased in as a budgetary item. Firearms Range - It is anticipated that the costs associated with operating the indoor firearms range will be adsorbed through revenues generated by other law enforcement agencies using the facility. I am also looking into the feasibility of offering a firearms training course to members of the public needing such certification to obtain a permit to carry a handgun under the newly enacted law. This would provide even more revenue from the firearms range to help offset costs. FUNDING CONSIDERATIONS Contributions from Member Cities - As previously stated, part of my preparatory work for the proposed 2004 operating budget was making myself available to attend budget work sessions at the city council level early on in the process. Three of the four member cities asked me to attend their preliminary budget discussions. There were PAGE 10 - PROPOSED 2004 OPERATING BUDGET varying viewpoints on how much of an increase to our operating budget in 2004 they could handle within the context of their own internal financial issues. This represents a unique dilemma for a joint powers organization such as ours that relies on an adequate level of funding from all four member cities in order to provide an adequate and consistent level of service. This compounds an already difficult situation articulated early in this document regarding the projected revenue shortfall that will occur in 2004. A repeat of what occurred last year in order to pass the 2003 operating budget could have a devastating effect on the delivery of law enforcement services in the South Lake Minnetonka area. Other Reimbursements - There are some uncertainties in anticipated revenues for 2004. These include reimbursements from the state having to do with mandated medical benefits for disabled officers, in-service training for police officers and police officer aid. Medical Insurance Reimbursement - In 2002, the state suspended reimbursing law enforcement agencies for their costs associated with providing officers disabled in the line-of-duty with the same medical benefits afforded active officers pursuant to their union contracts. This state imposed mandate on local units of government resulted in a revenue shortfall to our organization of$5,640. The state has since restored this funding for the short-term, but being able to count on this revenue source in the long-term is by no means a certainty. If the state meets its full obligation in 2004 the maximum reimbursement we would be eligible for is $6,600. Training Reimbursement - It is anticipated that there will be a reduction in the reimbursement from the state to help partially offset the cost of providing mandated training for police officers. The proposed reduction would represent a revenue shortfall for our organization of approximately $1,000. This takes a bite out of our already lean training budget that in addition to covering the costs associated with mandated training, must also have a sufficient balance remaining for the professional development of our personnel. This is important in terms of personnel retention, quality of service to the public, officer safety and protection against legal action for failure to adequately train personnel. The latter of these has become a target of attorneys, who have successfully obtained sizeable monetary awards against law enforcement agencies, claiming their clients were aggrieved by inadequately trained officers. State Police Officer Aid - This is the most significant reimbursement our organization receives directly from the state and if fully funded in 2004 is estimated to be $80,000. It is administered through the Department of Revenue and lags one year behind in terms of PAGE 11 - PROPOSED 2004 OPERATING BUDGET reimbursing public employers for their contributions to the Public Employee Retirement Association (PERA) Police Fund. In the short-term, it appears this state reimbursement has been preserved as part of the most recent tax bill signed into law. This is still flagged, however, as a potential target for state budget reductions if the financial situation worsens. Losing some or all of this state aid would create a financial hardship for our organization, which would need to be passed along to the member cities. Investment Income - It is anticipated that interest rates will remain at historically low levels in 2004. In addition, government agencies must adhere to conservative and safe investment strategies which is where the interest rates are traditionally the least attractive. All of this has adversely affected the investment income generated from our fund balances, which is reflected in the operating budget as a revenue item. To give an example of the impact, our investment income was $16,232 in 2000 compared with $5,063 in 2002 with virtually the same investment amount and strategy. This represents a revenue shortfall of over $11,000. Airport Security Detail - In May of 2002, our law enforcement agency was one of many around the state that came to the aid of the Airport Police Department to help them staff licensed police officers at their security checkpoints. After 9-11 this federal mandate was initially assumed by the National Guard until civilian law enforcement could take over the responsibility. On May 1,2003, assisting law enforcement agencies were notified that federal funding for this added security was being terminated at the end of the month. Although there is the possibility of being recalled at a future date, this source of revenue for our organization will no longer be available to help offset some of the revenue shortfalls from state aid and member cities. This detail generated approximately $21,500 for our organization during the 12 months we were involved. Of this amount, approximately $14,000 was in 2002 and $7,500 was in 2003. It was also an added source of income for those officers who opted to work this overtime detail. BUDGET REDUCTION STRATEGIES Part-Time Clerical - The proposed 2004 operating budget reflects a reduction in part- time clerical hours as a cost-saving measure. On the reverse side, however, this means an annual loss of over 400 hours of support staff time which will impact the delivery of non- emergency services to the public and member cities. It is important to understand that as a joint powers organization we are a separate unit of government responsible for all internal operations. This increases the need for a sufficient number of office support staffwho can take on the additional workload normally handled for police departments PAGE 12 - PROPOSED 2004 OPERATING BUDGET by city staff. We currently have a full-time Office Administrator and two part-time Office Specialists who handle a variety of responsibilities. These include, but are not limited to, payroll, bookkeeping, data entry, records management, background checks, clerical and receptionist duties. The receptionist duties are expected to increase even more in the new public safety facility if our staff handles this service for the Excelsior Fire District as planned. The use of technology has helped our organization more effectively manage this workload, but having adequate staffmg is still essential. Southwest Metro Dru&: Task Force (Special Projects) - Our police department spawned what is now known as the Southwest Metro Drug Task Force. It started out in the 1980's as a drug interdiction project undertaken solely by our organization but has since grown into a multi-jurisdictional Task Force spanning four counties and consisting of eleven law enforcement agencies. The mission of the Task Force is to target street- level drug dealers in collaboration with member law enforcement agencies. The Task Force budget for 2003 is approximately $235,000 of which about $150,000 comes from a state grant and the remainder from participating law enforcement agencies. The matching contribution from member agencies has remained stagnant, which has led to some recent financial difficulties with increased personnel costs, etc. Our annual contribution to the Drug Task Force of $8,400 has remained the same for many years. There has been a reorganization effort in 2003 to try to keep the Drug Task Force going, but the long-term outlook remains uncertain. With this uncertainty, coupled with the need to reduce operating expenses, I am reluctantly proposing that our organization withdraw from the Drug Task Force. These duties will be assumed internally by our two investigators along with assistance from our patrol officers. One of the primary issues in withdrawing from the Task Force is our ability to take on the additional workload along with losing the value of pooling resources for a more unified response. This is especially true when it comes to drug cases where there are no jurisdictional boundaries and a lot of investigative time would be spent all across the metro area. It is also anticipated that there would be some additional overtime costs associated with this responsibility becoming a primary duty of our staff. Vehicle Fleet - The purchase, set up and equipping of vehicles is managed through our designated vehicle fund which receives an annual appropriation from the operating budget. This capital fund provides for a uniform replacement schedule for our fleet of vehicles. In a recent survey of law enforcement agencies in the Lake Minnetonka area, our police department was on the low end when looking at the ratio of fleet vehicles to users. See Appendix D for documentation. This validates the fact that our organization is on the lean side when it comes to vehicles in the fleet, especially during the summer PAGE 13 - PROPOSED 2004 OPERATING BUDGET months with the seasonal park patrol and dockmaster positions in Excelsior. The vehicles in the patrol fleet are replaced more often than the other vehicles used by the support staff. This occurs 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. In addition, it is important that the vehicles are reliable considering the dependence placed on them in emergency situations. There are times when only one officer is available and not being able to respond because of a broken down vehicle in the field could make the difference between life and death. During my tenure as Chief of Police, I have already extended the vehicle replacement schedule once as a cost-saving measure to the operating budget. In addition, only one of the two vehicles up for replacement in 2003 was actually replaced. Two vehicles need to be replaced in 2004, but as a one time cost-savings the designated vehicle fund can support a lesser contribution from the operating budget and still fund the purchase of two vehicles. Technology - As a cost-saving measure, the proposed 2004 operating budget does not include a contribution to the designated equipment fund, which is used primarily for technology upgrades. I am not comfortable with zeroing this out for 2004, especially with our moving into a new building and the increased technological capabilities that will be part of the infrastructure. In addition, technology is quickly becoming the backbone of any effective crime fighting strategy and is crucial for a law enforcement agency to keep pace in order to better serve the public. Nevertheless, I am confronted with having to identify areas to reduce operating expenses, and this is one of several areas taking the brunt of these reductions. Line Item Catel:ories - I have painstakingly gone through each line item on the expense side of the operating budget looking for potential reductions. This was not an easy task with operating expenses already being on the lean side and supplemental sources of funding being on the down side. This is particularly true in the training category, which is seeing a reduction in state reimbursement along with a reduction in the operating budget. As previously mentioned, the importance of training cannot be overstated in terms of personnel retention, quality of service to the public, officer safety and protection against legal action for failure to adequately train personnel. I am uneasy in making reductions in this area, but have had to make some tough choices to keep expenses down. Other line item categories have also been cut for this same reason and are reflected on the accompanying spreadsheets. Even with being closely managed it may prove difficult to stay within budget for some of the line item categories given the increased costs in these areas coupled with the uncertainties in the public safety business. In the past, there was a cushion in the reserve fund to deal with any budget overruns but this too is being drawn PAGE 14 - PROPOSED 2004 OPERATING BUDGET down to where this comfort level is no longer there. There are also some residual effects from reductions in one area increasing costs in another area. A case in point is with our vehicle fleet rotation being extended, repair costs will likely increase due to the extended mileage on the squads. Operations - During my tenure as Chief of Police, there has been a major emphasis placed on streamlining operations and getting the greatest value for the buck. My regularly published newsletters chronicle these efforts so I will only cite a few examples. Early on in my administration a significant change occurred in the fiscal management of our organization that took us from a manual to a computerized bookkeeping system. As part of this transition, we outsourced payroll for a year during which time there was a change in personnel that allowed us to take this responsibility back in-house using a low cost, but very adequate, financial software program called QuickBooks. This financial package has worked well for us and is more cost-effective and easier to administrate than outsourcing payroll. This was once again validated through a recent analysis that was done of payroll practices. We have also made great strides with other technological advancements that have allowed us to become more effective and efficient in our jobs. Our organization is aggressive in looking for supplemental sources of funding to take care of our needs while helping to reduce the burden on our operating budget. We have funded thousands of dollars worth of equipment needs through grants, donations, etc. In regard to our fleet of vehicles, we are able to piggyback on the state bid to receive exceptional pricing. We also have a good maintenance program to help minimize the rigorous demands placed on vehicles in a police environment and extend their useful life. We are continually looking at ways to save money such as switching to Office Depot for office and other miscellaneous supplies. They have the county bid and offer free delivery. Another example can be found in our continual monitoring of gas prices to receive the best deal for the over 12,000 gallons of gasoline used by our fleet of vehicles annually. We just recently worked out an agreement with the newly opened Citgo Station in Excelsior. They not only offer competitive pricing as validated through our gas price monitoring, but they have agreed to discount our gas price by an additional three cents per gallon along with free car washes. In terms of training, we are doing more of the mandated training in-house to reduce costs. These are just a few of the many examples of our efforts to receive the "best bang for the dollar." CONCLUDING COMMENTS As previously indicated, this has been an extremely difficult operating budget to prepare and will be even more difficult to administrate if approved as presented. It leaves no ,. PAGE 15 - PROPOSED 2004 OPERATING BUDGET margin for error at a time when our reserve fund will likely fall to an unacceptable level at the end of2003, a time at which we face financial uncertainties associated with moving into a new public safety facility. Nevertheless, I am confronted with having to meet the high threshold of needing approval by all four member cities to adopt the operating budget and wanting to avoid a repeat of last year when the 2003 operating budgetwas in limbo up until the deadline. I have presented, therefore, a proposal that I feel can meet the aforementioned criteria and still maintain operations at a marginal level for the short-term. The increase in operating expenses between 2003 and 2004 have been kept to under one half of a percent by leaning out expenditures as much as possible and reallocating the money once designated for building rent to cover increased operation costs for the new public safety facility. Complicating the situation, however, is the revenue shortfall in the 2004 operating budget that cannot be offset by money in reserve since these funds have been dedicated to the 2003 operating budget. This was done to make up the anticipated revenue shortfall that occurred when the contribution from the member cities was reduced from what was originally proposed. If this had not occurred, the proposed increase to the member cities in 2004 would be 2.4 percent rather than the 4.8 percent being requested and there would be an acceptable balance in the reserve fund. See Appendix E for documentation. I would be remiss if I did not address the remarkable investment being made in public safety by our member cities in the construction of a new public safety facility that will house both police and fITe. We as an organization are extremely appreciative of what this will mean in terms of our working environment and our ability to better serve the public. I do not want to diminish the significance of this investment, but need to point out that the benefit of having this top-notch facility will not be fully realized if our operating budget is compromised to help offset the cost of the building. Without having an adequately staffed and equipped organization, the investment in the new public safety facility will be devalued before even being occupied. The most important asset we have are the men and women who work for our organization and it is critical that we at least maintain our current level of staffing. During my tenure as Chief of Police, there has been a concerted effort between the members of the Coordinating Committee and myself to bring our staffmg up to more acceptable levels and offer competitive salaries and benefits to aid in the recruitment and retention of personnel. This successful endeavor was endorsed by a majority of the city council members representing the four member cities we serve. Although we have made headway in bringing our staffing up to desirable levels, more still needs to be done and renewing this effort should be considered in future budget years once the member cities adjust to their debt obligations on the new public safety facility and fiscal conditions improve. I have addressed the PAGE 16 - PROPOSED 2004 OPERATING BUDGET issue of staffing in past budgets as well as through strategic planning. One of the spreadsheets attached to this document shows how our organization lags behind other police agencies in the Lake Minnetonka area in terms of number of police officers to residents. There is no doubt that each of our member cities are better served by the sharing of police resources through a joint powers agreement. It provides a cost-effective way for each of them to have an enhanced level of police service that could not be duplicated financially on their own. It also allows for each participant in the agreement to have a stake in the organization through their voting representative on the governing board, unlike a contract system where services are purchased without representation. During my tenure on the police department, there have been a number of comparative studies done on the value of our organization in terms of cost and service and it has always come out favorably. The most recent of these occurred as part of an independent funding formula study that was done on our organization in 2000 and as part of a report provided by City Manager Myles Mc Grath to an ad hoc committee commissioned by the Excelsior City Council to look at policing costs. Both of these showed the exceptional value in the current policing arrangement to all the member cities. This needs to be kept in mind when considering the operating budget for 2004. APPENDIX A RATIO OF FULL-TIME OFFICERS PER RESIDENTS Information for 2004 Budget Proposal (Updated July of 2003) Deephaven Police Department 7 4,333 619 Also Serving Woodland Medina Police Department 8 4,820 603 Also Serving Loretto Minnetrista Public Safety Department 10 6,475 648 Also Serving Sf. Bonifacius Mound Police Department 13 9,435 726 Orono Police Department 18 11,998 667 Also Serving Long Lake, Minnetonka Beach & Spring Park Wayzata Police Department 9 4,113 457 West Hennepin Public Safety Department Serving Independence & Maple Plain 9 5,650 628 * Population Numbers Provided By Cities APPENDIX B South Lake Minnetonka Police Department Information for 2004 Budget Proposal Increase in Operating Expenses Over 2003 0.4% $6,400 $31,368 $27,500 Restoring Operating Budget Revenues 2.4% Reduction of Revenues 2.0% APPENDIX C CRIME STATISTICS FOR COMMUNITIES IN THE LAKE MINNETONKA AREA Part 1 & Part 2 Crimes Per Minnesota Crime Information System (Year 2002 - Most Recent Statistics) Deephaven Police Department 4,333 78 146 224 44% Also Serving Woodland Medina Police Department 4,820 100 244 344 60% Also Serving Loretto Minnetrista Public Safety Department 6,475 118 348 466 64% Also Serving St. Bonifacius Mound Police Department 9,435 230 464 694 56% Orono Police Department 11,998 291 501 792 42% Also Serving Long Lake, Minnetonka Beach & Spring Park Wayzata Police Department 4,113 170 294 464 50% Part 1 Offenses - murder, forcible rape, aggravated assault, robbery, burglary, larceny-theft, motor vehicle theft and arson. Part 2 Offenses - other assaults, forgery-counterfeiting, fraud, embezzlement, stolen property, vandalism, weapons, prostitution, sex offenses, drugs, gambling, offenses against family and children, driving under the influence, liquor laws, disorderly conduct, vagrancy and other criminal offenses. .. Population Numbers Provided by Cities APPENDIX D SURVEY OF FLEET VEHICLES Information for 2004 Budget Proposal (July of 2003) Deephaven Police Department 6 8 0.8 4,333 Purchase Also Serving Woodland Medina Police Department 7 9 0.8 4,820 Purchase Also Serving Loretto Minnetrista Public Safety Department 8 11 0.7 6,475 Purchase Also Serving St. Bonifacius Mound Police Department 11 14 0.8 9,435 Purchase Orono Police Department 11 20 0.6 11,998 Purchase Also Serving Long Lake, Minnetonka Beach & Spring Park. Wayzata Police Department *** 5 11 0.5 4.113 Purchase West Hennepin Public Safety Department Serving Independence & Maple Plain 6 9 0.7 5,650 Purchase * Does not include special use vehicles or snowmobiles Population numbers provided by cities *** Chief receives car allowance rather than use of fleet vehicle ** APPENDIX E SOUTH LAKE MINNETONKA POLICE DEPARTMENT IllUSTRATION ONLY These would be the figures if the 2003 Operating Budget had been approved as originally proposed 2004 BUDGET REQUEST BY CITY $1,421,200.00 $419,254 $10,001 $1,421,200.00 8.5% $120,802 $2,882 2.4% $1,421,200.00 46.0% $653,752 $15,594 2.4% $1,421,200.00 16.0% $227,392 $5,424 2.4% 2003 CONTRIBUTIONS BY CITY AS ORIGINAllY PROPOSED $1,387,300.00 $409,254 $25,149 $1,387,300.00 8.5% $117,921 $7,246 6.5% $1,387,300.00 46.0% $638,158 $39,215 6.5% $1,387,300.00 16.0% $221,968 $13,640 6.5% SOUTH LAKE MINNETONKA POLICE DEPARTMENT PROJECTED EXPENSES - 2004 OPERATING BUDGET 50100 Salaries Full-time $969,000 Increase 50200 Salaries Overtime $50,000 Decrease 50300 Salaries Part-time $53,000 Decrease 50500 FICA/Medicare $17,500 Decrease 50600 PERA Pension $95,000 Increase 50700 Insurance Benefits $128,000 Increase 51000 Contract Services $8,000 Decrease 52100 Equipment Leases * $21,400 Increase 52200 Repairs & Maintenance ** $29,500 Increase 52300 Utilities *** $43,500 Increase 52400 Janitorial & Cleaning *** $9,000 Increase 52500 Printing & Publishing $4,600 Decrease 52800 Care of Persons $100 Same 53000 Supplies $36,500 Decrease 54000 Uniforms & Gear $9,500 Decrease 54500 Travel, Conferences & Schools $9,000 Decrease 55000 56000 Insurance *** $50,000 Increase 56100 Subscriptions, Memberships & Police License Fees $1,600 Decrease 57000 Special Projects **** $1,300 Decrease 58000 Capital Outlay ***** $18,000 Decrease * Category affected by conversion to 800 MHz Radio System ** Anticipated increase in vehicle repairs due to fleet replacement schedule being extended *** Category affected by new public safety facility **** Withdrawal from the SW Metro Drug Task Force ***** Reduced contribution to designated vehicle fund and no contribution to designated equipment fund SOUTH LAKE MINNETONKA POLICE DEPARTMENT PROJECTED REVENUES - 2004 OPERATING BUDGET (Excludes Cities Contributions) 43100 43200 43400 44000 Minnetonka School District Copies of Documents, Photos and Tapes - Fingerprint Requests Security Details Investment Income $7,000 $3,000 $5,000 $5,000 Same Same Same Decrease SOUTH LAKE MINNETONKA POLICE DEPARTMENT 2004 BUDGET REQUEST BY CITY - THIRD YEAR OF FUNDING FORMULA CHANGE - $1,421,200.00 $419,254 $19,254 $1,421,200.00 8.5% $120,802 $5,548 4.8% $1,421,200.00 46.0% $653,752 $30,023 4.8% $1,421,200.00 16.0% $227,392 $10,443 4.8% 2003 CONTRIBUTIONS BY CITY $1,355,932.00 $400,000 $15,895 $1,355,932.00 8.5% $115,254 $4,580 4.1% $1,355,932.00 46.0% $623,729 $24,786 4.1% $1,355,932.00 16.0% $216,949 $8,621 4.1% SOUTH LAKE MINNETONKA POLICE DEPARTMENT LINE ITEM NARRATIVE 2004 OPERATING BUDGET PROPOSAL PROJECTED EXPENSES 50100 - SALARIES - FULL-TIME - $969,000 This line item includes full-time salaries in 2004 for union and non-union personnel. The collective bargaining agreement with the officers union has been settled for 2004 other than a re-opener for health insurance benefits. The projected compensation for non-union personnel, which has yet to be determined, has been reflected in this budget as a modest increase. It is important to keep in mind that there are other considerations that impact this category in addition to economic adjustments. These include a maturing payroll in terms of step and incentive pay increases for employees as well as making sure compensation is competitive in order to recruit and retain the best personnel. No increases in staffmg have been requested for 2004. 50200 - SALARIES - OVERTIME - $50,000 This line item includes projected overtime costs paid to personnel as part of their normal course of duties as well as on holidays. There are also reimbursable overtime costs that are reflected in the anticipated income section for scheduled court appearances, school programs and security details. This category previously included special policing details for the City of Shorewood, but they have opted to discontinue funding this program. In addition, the airport security detail has also been discontinued. 50300 - SALARIES - PART-TIME - $53,000 This line item includes projected salaries for part-time clerical personnel in 2004. It reflects a reduction in part-time clerical hours as a cost-saving measure. Also included in this category are the seasonal part-time positions of Park Patrol and Dockmaster at the Excelsior Commons Park. This expense is reimbursed by the City of Excelsior and is shown under anticipated revenues. PAGE 2 - PROJECTED EXPENSES - 2004 OPERATING BUDGET PROPOSAL 50500 - SOCIAL SECURITY /MEDICARE - $17,500 This line item includes the employer contribution to Social Security and Medicare. There is a partial offset in the anticipated revenue section from the City of Excelsior for the seasonal positions of Park Patrol and Dockmaster. 50600 - PERA PENSION - $95,000 This line item includes the employer contribution to the Public Employees Retirement Association (PERA). This has a limited impact on the budget, since our police department receives State Peace Officer Aid to offset a portion of our contribution to the PERA Police & Fire Fund. This anticipated reimbursement through the state is shown as a revenue item. There is also reimbursement from the other details listed in the overtime category . 50700 - INSURANCE BENEFITS - $128,000 This line item includes projected health and life insurance costs for qualifying personnel. The most significant cost in this category is for health insurance obtained through the LOGIS Health Care Group. It is hard to determine at this early stage what the increase will be in 2004, but early indications suggest it will probably reach double digits. More definitive rates for 2004 will not be available until after this budget proposal is prepared. In addition, a proposal may be forthcoming from the officers as part of the re-opener in their contract for health insurance benefits advocating a move toward a "cafeteria plan" in 2004. This generally means eligible personnel, whether single or with dependent(s), receive the same dollar amount that can be applied to medical, dental and/or other approved benefits. It is not known at this time what the financial implications might be on the budget, but it would likely be an increase. . 51000 - CONTRACT SERVICES - $8,000 This line item includes such professional services as the annual audit, legal counsel, interpreter fees. It does not include the costs associated with hiring new personnel such as medical and psychological examinations since no vacancies are anticipated in 2004. Please note this is a volatile category, especially since unanticipated legal assistance could send costs soaring. PAGE 3 - PROJECTED EXPENSES - 2004 OPERATING BUDGET PROPOSAL 52100 - EQUIPMENT LEASES - $21,400 This line item covers the costs associated with lease/maintenance agreements for communications, criminal justice information system, pagers, copier/fax machine and postage meter. The major expense in this category is for communications, which had a significant increase in 2003 due to the changeover in the Hennepin County Radio System to 800 MHz. User agencies such as ours had to acquire all new equipment in order to be compatible with the new system. Our agency had the foresight to set up a special fund to help ease the financial impact by supplementing the operating budget each year until fully absorbed as an operating expense. The other costs in this category reflect the fees assessed by the state for our computer link to the Criminal Justice Information System (CnS), the lease of pagers, the lease of a copier/fax machine and the lease of a postage meter. 52200 - REPAIRS & MAINTENANCE - $29,500 This line item covers the repair of vehicles, repair and replacement of office equipment and furniture, building maintenance and computer maintenance contracts. It also includes miscellaneous expenses such as the calibration of truck scales and speed measuring devices, upkeep of security and fire alarm systems and repairs of communication equipment (radios, pagers, cellular phones, etc.). The major expense in this category is the maintenance of vehicles, which by the very nature of the job receive demanding use. In addition, with the squad rotation being extended it is anticipated more repairs will be needed on a more aged fleet. Other expenses in this category are the repair and replacement of inoperable or obsolete office furniture and equipment, computer services and minor repairs to our police station. One way of controlling costs in this category has been the implementation of regular maintenance programs. 52300 - UTILITIES - $43,500 This line item includes office and cellular phones, electricity, natural gas, water and sewer, waste removal and alarm service. There is a significant increase in this category to cover the estimated cost of utilities once we move into our new public safety facility. It is important to note, however, this is a volatile category with future energy costs being hard to predict. PAGE 4 - PROJECTED EXPENSES - 2004 OPERATING BUDGET PROPOSAL 52400 - JANITORIAL & CARPET CLEANING - $9,000 This line item includes janitorial services and carpet cleaning for the interior of our building. There is a significant increase in this category to cover the estimated cost associated with moving into a larger public safety facility. 52500 - PRINTING & PUBLISHING - $4,600 This line item covers expenses associated with stationary, report forms, warnings and citations as well as professional & legal publications and advertising for personnel vacancies. There is a continual need to update and create new forms due to various mandates and changes in the laws. In addition, there will be increased printing costs associated with having a different address once moving into the new public safety facility. 52800 - CARE OF PERSONS - $100 This line items covers the incidental expenses of caring for prisoners in police custody. This is a minimal expense since most prisoners are usually booked in jailor released relatively quickly. This category is also used to track booking fees which are offset through reimbursement from the member cities. 53000 - SUPPLIES - $36,500 This comprehensive line item includes a variety of expenses for vehicle supplies and registration fees, fuel for vehicles, school educational materials, ammunition, first aid supplies, batteries, video/cassette tapes, film, drug testing kits, hardware, office supplies and other miscellaneous items required for department operations. The most significant cost item in this category is fuel for vehicles, which is rather difficult to predict due to the volatility of the market as seen in recent years. In addition, there will be a need to purchase diesel fuel to power the auxiliary generator at our new public safety facility. There is an offset in the projected revenue section for the materials used in our CounterAct Program. 54000 - UNIFORMS - $9,500 This line item includes uniforms, duty gear and allowances for department personnel PAGE 5 - PROJECTED EXPENSES - 2004 OPERATING BUDGET PROPOSAL along with allowances afforded certain personnel. The cost of these items seems to escalate each year regardless of the vendor. This category was expanded in recent years to include uniform expenses for the office staff and the newly created community service officer position. These additions, coupled with the unanticipated expenses associated with outfitting new officer(s), puts a real strain on this volatile category. There is an offset in the anticipated income section for the cost of uniforms and gear for Park Patrol and Dockmaster, which is reimbursed by the City of Excelsior. There are also state and federal funds available to law enforcement agencies purchasing bullet proof vests for their officers. Our agency taps into this funding source when making such purchases. 54500 - TRAINING AND CONFERENCES -$9,000 This line item covers the costs associated with sending department personnel to mandated and elective training as well as law enforcement conferences. The cost is even more when new officers are hired, since they need additional training the first several years. The state also continues to require more and more mandated training in response to directives from the legislature. The importance of providing quality training, however, cannot be underestimated in terms of enhancing the skill level and professionalism of employees as well as reducing the risk of litigation against the department. Although the cost of training is significant, this amount is minimal in comparison to a civil suit. There is a partial offset in the anticipated income section for training reimbursement received through the state. 55000 - BUILDING RENT - $3,200 This line item will be phased out once we move into the new public safety facility, which is scheduled to take place on or about January of2004. In the event the occupancy date is extended, I have budgeted a rent payment for the month of January. The proceeds in this category are being reallocated to cover the additional operating expenses associated with moving into a larger public safety facility. 56000 - INSURANCE - $50,000 This line item covers insurance costs associated with workers' compensation, general liability, vehicles and professional liability. There is a significant increase in this category to cover the added expense of insuring our new public safety facility. The amount allocated in this category will be transferred to the Designated Insurance Fund. PAGE 6 - PROJECTED EXPENSES - 2004 OPERATING BUDGET PROPOSAL 56100 - SUBSCRIPTIONS & MEMBERSHIPS - $1,600 This line item includes subscriptions to journals as well as organizational memberships. There was an added expense to this category starting in 2000 due to the contractual requirement that the department pay for Peace Officer Licenses, which is done on a three-year cycle depending on the last name ofthe officer. No longer proposed as part of this category is partial reimbursement to officers for health club memberships, since there will be excellent exercise accommodations in the new police-fire facility. 57000 - SPECIAL PROJECTS - $1,300 This line item previously included our annual contribution to the Southwest Metro Drug Task Force, which is funded by member law enforcement agencies along with federal grant money administered through the state. As a cost-saving measure, our organization will likely be withdrawing from the Drug Task Force starting in 2004. This category still includes our subscriber fee for ComerHouse, which is a sexual abuse evaluation center for child victims. The goal of CornerHouse is to provide outstanding forensic interviews that result in the best possible outcome for children. CornerHouse is highly recognized by the criminal justice system and our organization is fortunate to have the availability of this most important service. There is a nominal increase expected for 2004. 58000 - CAPITAL OUTLAY - $18,000 This line item supplements the cost of purchasing vehicles in accordance with our replacement schedule. Also included are the costs associated with tearing down the equipment in old police vehicles and setting up the equipment in new police vehicles along with any needed replacement of equipment. The amount allocated for vehicle related expenses will be transferred into the Designated Vehicle Fund. This amount has been significantly reduced to help offset operating expenses. The Designated Vehicle Fund has a sufficient balance to handle this one-time cost-saving measure. This category also supplements the Designated Equipment Fund, which is used for capital projects associated with the purchase and replacement of equipment. This fund has been supplemented the past few years through internal fund transfers of favorable revenues with little or no contributions coming from the operating budget. It is important, however, to build into the operating budget sufficient funding so as not to fall behind as we have in the past. Relying on excess revenues that mayor may not PAGE 7 - PROJECTED EXPENSES - 2004 OPERATING BUDGET PROPOSAL materialize at the end of budget cycles is not a prudent strategy in the long-term. There should be modest increases in the operating budget each year to supplement our capital fund and ongoing expenses having to do with technology. Due to other budgetary considerations, however, no contribution from the operating budget will be made to this fund in 2004. SOUTH LAKE MINNETONKA POLICE DEPARTMENT LINE ITEM NARRATIVE 2004 OPERATING BUDGET PROPOSAL PROJECTED REVENUES (Excluding Cities Contributions) 40110 - COURT OVERTIME - $5,000 Each of the four cities served by our police department pay the actual overtime cost of an officer having to make a court appearance for an incident that occurred in their respective city. This varies from year-to-year and thus the above figure is only an estimate based upon a historical average. 40120 - EXCELSIOR PARK PATROL & DOCKMASTER - $17,000 The above figure represents the anticipated amount budgeted by the City of Excelsior for the seasonal positions of Park Patrol and Dockmaster, which are administered through our police department. The actual amount used will vary, but there is no adverse impact on our budget since all the costs are covered by the City of Excelsior. 40130 - SHOREWOOD SPECIAL DETAILS - $0 Funding has been discontinued for 2004. 42100 - STATE PEACE OFFICER AID - $80,000 This reimbursement through the Minnesota Department of Revenue lags one year behind and is designated to offset the employer's contribution to the Public Employment Retirement Association (PERA) Police & Fire Fund. This is an estimate, since the actual amount received can vary depending on a multitude of factors. 42200 - STATE TRAINING REIMBURSEMENT - $5,000 The State of Minnesota provides partial reimbursement for the continuing education of PAGE 2 - PROJECTED REVENUES - 2004 OPERATING BUDGET PROPOSAL police officers, which is expected to be reduced in 2004 due to the state budget crisis. The above figure represents an estimate of what our police department should receive based on 14 full-time officers. 42300 - EMERGENCY PREPAREDNESS GRANT- $0 This grant is no longer available. 43100 - MINNETONKA SCHOOL DISTRICT - $7,000 The Minnetonka School District provides these funds for police liaison and educational services in the schools. The majority of this money is used to fund our CounterAct Program in the Elementary Schools. 43200 - COPIES OF DOCUMENTS, PHOTOS & TAPES - $3,000 This is the anticipated revenue from public data requests for copies of documents as well as audio and video tapes. This category also includes revenue from fingerprint requests for employment purposes and other non-criminal matters. 43400 - SECURITY DETAILS - $5,000 This category includes requests for security details over and above our normal level of service. These requests are administered by our police department at a set fee and officers working these details are paid on an overtime basis. The number of requests vary from year-to-year, but have been on the increase. The amount in this category is subject to fluctuation, but there is no adverse effect on the budget since costs are reimbursed. 44000 - INVESTMENT INCOME - $5,000 The above figure is an estimate based upon historical trends and anticipated future earnings. This revenue source has been reduced due to the current low rate of return on prudent investments. PAGE 3 - PROJECTED REVENUES - 2004 OPERATING BUDGET PROPOSAL 46100 - SALE OF VEHICLES - $0 The sale of vehicles was previously reported as a revenue item as part of the operating budget, but in 2004 the proceeds will go directly into the Designated Vehicle Fund to even out the variance in revenue generated from the sale of vehicles. 46400 - FORFEITURES - $1,000 This includes unanticipated income, including forfeitures. This is subject to extreme fluctuations from year-to-year. 46500 - MISCELLANEOUS STATE REIMBURSEMENT - $8,500 This category is reimbursement from the State of Minnesota for such things as health insurance for disabled officer(s), liquor compliance checks, bullet proof vest purchase(s) and other miscellaneous grants, etc. It should be noted that there is a one year lag in receiving medical insurance reimbursement, so the amount received this budget cycle is based on costs in 2003. SOUTH LAKE MINNETONKA POLICE DEPARTMENT BUDGET HISTORY 2004 - 2003 LINE ITEM EXPENSES $969,000 Full-tIme Community Service Officer 50100 Salaries Full-time $928,000 50200 Salaries Overtime $50,000 $55,000 Reduction In part-tIme clerical hours Community Service Officer position 50300 Salaries Part-time no lonaer oart-tlme $53,000 $60,000 50500 FICAlMedicare $17,500 $18,000 50600 PERA Pension $95,000 $91,000 50700 Insurance Benefits $128,000 $114,000 51000 Contract Services $8,000 $8,950 52100 Equipment Leases Conversion to new radio system Conversion to n.w radio system $21,400 $19,400 52200 Repairs & Maintenance $29,500 $27,700 52300 Utilities New Public Safely Facility $43,500 $21,100 52400 Janitorial & Cleaning New Public Safely Facility $5,700 $9,000 52500 Printing & Publishing $4,600 $5,200 52800 Care of Persons $100 $100 53000 Supplies $36,500 $36,900 54000 Uniforms & Gear $9,500 $11,000 54500 Travel, Conferences & Schools $9,000 $10,500 Prooeeds reallocated to operating 55000 Building Rent expenses for new public safety facility $38,400 $3,200 56000 Insurance New Public Safety Facility $40,000 $50,000 56100 Subscriptions & Memberships $1,600 $2,600 Withdrawal from SW Metro Drug Task 57000 Special Projects Force $9,750 $1,300 Reduced contribution to vehicle fund 58000 Capital Outlay None to equipment fund $48,000 $18,000 $1,557,700.00 SOUTH LAKE MINNETONKA POLICE DEPARTMENT BUDGET HISTORY 2002 - 2000 LINE ITEM EXPENSES CI+~~X. I<<C,:!'"( Approved Budget Actual Approved Budget Actual :c......'X....(, .,.(>" 2002 2002 2000 2000 Pha.e In of full-time Community Audited Figure. Solory Increaoeo After Budget Set Audited Flgureo Phase In of additional full-time Audited Figures 50100 Salaries Full-time Service Officer officer $861,300 $881,691 $793,000 $799,725 $760,454 $718,961 Airport Security Detail $57,500 $36,590 $77,000 $71,106 50200 Salaries Overtime $60,500 $94,631 Tranoltlon from part-time to full- Addition of part-tIme Community 50300 Salaries Part-time time Community Service Officer $50,877 Service Officer $46,905 $57,596 $46,748 $63,000 $69,000 50500 FICNMedicare $16,500 $14,493 $13,000 $11,147 $10,500 $10,160 50600 PERA Pension $85,300 $88,632 $80,000 $74,947 $75,500 $73,620 50700 Insurance Benefits $102,000 $97,312 $80,000 $80,063 $68,000 $68,159 51000 Contract Services $8,450 $6,637 $8,400 $9,747 $7,500 $9,435 52100 Equipment Leases $16,900 $17,674 $16,700 $14,827 $14,550 $15,327 52200 Repairs & Maintenance $27,700 $25,291 $27,500 $21,394 $26,000 $25,421 52300 Utilities $21,100 $18,015 $19,500 $19,433 $18,750 $16,824 52400 Janitorial & Cleaning $5,700 $5,205 $5,700 $5,516 $5,580 $5,304 52500 Printing & Publishing $5,200 $4,040 $5,200 $5,371 $4,500 $2,233 52800 Care of Persons $100 $0 $100 $0 $100 $0 53000 Supplies $36,900 $37,304 $34,500 $36,759 $33,750 $33,377 54000 Uniforms & Gear $11,000 $7,814 $9,000 $12,409 $8,500 $9,672 54500 Travel, Conferences & Schools $10,500 $8,988 $10,000 $10,734 $10,000 $7,835 55000 Building Rent $38,400 $38,400 $38,400 $38,400 $38,400 $38,400 56000 Insurance $40,000 $40,000 $40,000 $40,000 $43,000 $43,000 56100 Subscriptions & Memberships $3,850 $3,062 $3,900 $2,318 $2,000 $2,670 57000 Special Projects $9,650 $9,588 $9,650 $7,588 $9,650 $10,047 58000 Capital Outlay $52,000 $52,000 $51,300 $51,300 $48,700 $48,700 - $1,476,050 $1,501,654 $1,320,030 $1,256,999 Note The chart of accounts were revised in 2000 to accommodate the changeover from a manual to a computerized bookkeeping system. While the overall budget remained the same, some of the categories were adjusted during the course of the year. CPA Stuart Bonniwell was involved in this process. SOUTH LAKE MINNETONKA POLICE DEPARTMENT DETAILED BUDGET HISTORY 2004 - 2003 LINE ITEM REVENUES 40110 Court Overtime $5,000 $5,000 40120 Excelsior Park Patrol - Dockmaster $17,000 $19,000 Funding Discontinued Funding Reduced 40130 Shorewood Special Details $0 $7,500 42100 State Peace Officer Aid $80,000 $80,000 42200 State Training Reimbursement $5,000 $6,000 Funding Discontinued Funding Discontinued 42300 Emergency Preparedness Grant $0 $0 43100 Minnetonka School District $7,000 $7,000 43200 Copies of Documents, Photos & Tapes $3,000 $3,000 43400 Security Details $5,000 $5,000 44000 Investment Income $5,000 $10,000 Reallocated to Vehicle Fund 46100 Sale of Vehicles $0 $12,000 46400 Forfeitures $1,000 $1,000 46500 Misc. State Reimbursement $8,500 $8,500 Carryover of Existing Fund Balance - Undesignated (Reserve) Funds to cover revenue shortfall created when the Excelsior City Council Notation approved a lesser contribution than proposed for 2003, This proportionately reduced the proposed contributions from the other three member cities resulting in a potential revenue shortfall of $31 ,368. SOUTH LAKE MINNETONKA POLICE DEPARTMENT DETAILED BUDGET HISTORY 2002 - 2000 LINE ITEM REVENUES 40110 Court Overtime $5,000 $3,317 $5,000 $2,693 $7,800 $3,885 40120 Excelsior Park Patrol - Dockmaster $19,000 $15,174 $19,000 $11,635 $19,000 $10,429 40130 Shorewood Special Details $15,000 $3,551 $15,000 $1,514 $30,981 $13,893 42100 State Peace Officer Aid $81,500 $71,134 $80,000 $70,063 $80,000 $77,326 42200 State Training Reimbursement $5,500 $5,939 $4,400 $5,806 $4,400 $5,068 42300 Emergency Preparedness Grant $0 $0 $4,400 $3,394 $4,000 $4,297 43100 Minnetonka School District $7,000 $6,838 $6,800 $6,838 $6,800 $6,838 43200 Copies of Documents, Photos & Tapes $2,500 $2,554 $3,000 $2,044 $2,200 $2,013 43400 Security Details $5,000 Airport Security Detail $4,000 $5,350 N/A $7,716 $79,873 44000 Investment Income $13,000 $5,063 $12,500 $12,618 $11,500 $16,232 46100 Sale of Vehicles $12,000 $9,090 $10,000 $12,685 $10,000 $6,250 46400 Forfeitures $1,000 $1,339 $1,000 $1,983 N/A $280 46500 Misc. State Reimbursement $7,500 $1,995 $4,500 $8,993 $2,000 $12,705 $174,000 $205,867 $178,681 $166,932 Note The chart of accounts were revised In 2000 to accommodate the changeover from a manual to a computerized bookkeeping system. While the overall budget remained the same, some of the categories were adjusted during the course of the year. CPA Stuart Bonnlwell was Involved in this process. SOUTH LAKE MINNETONKA POLICE DEPARTMENT BUDGET HISTORY -1987 to 2004 COST TO CITIES EXCELSIOR GREENWOOD SHOREWOOD TONKA BAY Total Percent Budget Percent Budget Percent Budget Percent Budget Percent Year Budget Change Amount Percent Change Amount Percent Change Amount Percent Change Amount Percent Change 1987 681,263.00 6.7% 190,753.64 28.0% 6.7% $61,313.67 9.0% 6.7% $306,568.35 45.0% 6.7% 122,627.34 18.0% 6.7% 1988 753,374.00 10.6% 219,231.83 29.1% 14.9% $67,050.29 8.9% 9.4% $334,498.06 44.4% 9.1% 132,593.82 17.6% 8.1% 1989 807,124.00 7.1% 245,365.70 30.4% 11.9% $71,026.91 8.8% 5.9% $350,291.82 43.4% 4.7% 140,439.58 17.4% 5.9% 1990 831,338.00 3.0% 264,365.48 31.8% 7.7% $73,157.74 8.8% 3.0% $354,149.99 42.6% 1.1% 139,664.78 16.8% -0.6% 1991 872,280.00 4.9% 281,746.44 32.3% 6.5% $77,632.92 8.9% 6.1% $368,102.16 42.2% 3.9% 144,798.48 16.6% 3.7% 1992 899,250.00 3.1% 294,054.75 32.7% 4.4% $80,033.25 8.9% 3.1% $376,785.75 41.9% 2.4% 148,376.25 16.5% 2.5% 1993 925,472.00 2.9% 298,927.46 32.3% 1.7% $81,441.51 8.8% 1.8% $389,623.71 42.1% 3.4% 155,479.30 16.8% 4.8% 1994 945,580.16 2.2% 300,694.49 31.8% 0.6% $80,374.31 8.5% -1.3% $408,490.63 43.2% 4.8% 156,020.73 16.5% 0.3% 1995 964,968.15 2.1% 303,000.00 31.4% 0.8% $78,162.42 8.1% -2.8% $423,621.02 43.9% 3.7% 160,184.71 16.6% 2.7% 1996 976,423.28 1.2% 307,573.33 31.5% 1.5% $76,161.02 7.8% -2.6% $432,555.51 44.3% 2.1% 160,133.42 16.4% -0.1% 1997 997,015.89 2.1% 313,062.99 31.4% 1.8% $72,782.16 7.3% -4.4% $449,654.17 45.1% 4.0% 161,516.18 16.2% 0.9% 1998 1,025,828.61 2.9% 318,006.89 31.0% 1.6% $75,911.32 7.4% 4.3% $470,855.09 45.9% 4.7% 161,055.09 15.7% -0.3% 1999 1,064,079.09 3.7% 325,608.20 30.6% 2.4% $80,870.01 7.6% 6.5% $489,476.38 46.0% 3.9% 168,124.50 15.8% 4.4% 2000 1,141,349.00 7.3% 350,394.14 30.7% 7.6% $91,307.92 8.0% 12.9% $519,313.80 45.5% 6.1% 180,333.14 15.8% 7.3% 2001 1,202,750.00 5.4% 377,663.50 31.4% 7.8% $97,422.75 8.1% 6.7% $538,832.00 44.8% 3.8% 188,831.75 15.7% 4.7% 2002 1,302,050.00 8.3% 384,104.75 29.5% 1.7% $110,674.25 8.5% 13.6% $598,943.00 46.0% 11.2% 208,328.00 16.0% 10.3% 2003 1,355,932.00 4.1% 400,000.00 29.5% 4.1% $115,254.00 8.5% 4.1% $623,729.00 46.0% 4.1% 216,949.00 16.0% 4.1% 2004 1,421,200.00 4.8% 419,254.00 29.5% 4.8% $120,802.00 8.5% 4.8% $653,752.00 46.0% 4.8% 227,392.00 16.0% 4.8% , 18 YEAR AVERAGE ~ 4.6% n $310,767.09 ~ 30.8% ~ 4.9% n $83,965.47 , 8.4% I 4.3% II $449,402.361 44.4% , 4.7% n $165,158.23 J 16.5% t 3.9% I SOUTH LAKE MINNETONKA POLICE DEPARTMENT FUND BALANCES (As of January 1, 2003) Note - $31,368 of the reserve fund is dedicated to the 2003 operating budget to make up the projected shortfall. This will leave a remaining balance of $15,687 at the start of 2004 if the projected shortfall is fully realized. SEE ATTACHED NARRATIVE EXPLAINING EACH CATEGORY EXPLANATION OF FUNDS BY CATEGORY It is important to understand that as a joint powers organization our police department operates as a separate unit of government as allowed for by state statute. This means we need to be more financially self-reliant by maintaining funds in support of the operating budget. This is atypical of what would normally be the case for a police department operating under the structure of city government. We maintain a number of funds as a hedge against fluxuations that might otherwise spike the operating budget. I have summarized each of these funds below and have also attached a spreadsheet showing the balances at the start of fiscal year 2003. Many of these funds are subject to variances throughout the year depending on when the import and export of funds are executed. Desi2nated Funds Insurance Fund - This account is utilized for workers' compensation, professional liability and property/casualty. It helps guard against the volatility in the insurance industry as well as provide a method of self-insurance against smaller claims in order to maintain a larger deductible. The contribution to this fund from the operating budget has not kept pace with expenses and the balance in this fund has been drawn down to the point where this trend needs to be reversed in future budget years. In addition, the new public safety facility will be more costly to insure even though this expense will be split between police and fire. Vehicle Fund - This account is utilized to purchase, equip and set-up vehicles. It provides for a uniform replacement schedule for our fleet of vehicles. The sale of vehicles was previously reported as a revenue item as part of the operating budget, but will change in 2004 so the proceeds go directly into the fund to even out the variance in revenue generated from the sale of vehicles. During my tenure as Chief of Police, I have already extended the replacement schedule once as a cost-saving measure to the operating budget. To do it once again would not be prudent for the long-term. The vehicles in the patrol fleet are replaced more often than the other vehicles used by the support staff. This occurs 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 very nature of police work is hard on vehicles, therefore, they need to be PAGE 2 - SLMPD FUND BALANCES in good condition for the safety of the officers and the public. In addition, it is important that the vehicles are reliable given the dependence placed on them in emergency situations. There are times when only one officer is available and not being able to respond because of a broken down vehicle in the field could make the difference between life and death. Equipment Fund - In recent years this fund has primarily been used for technology enhancements that are quickly becoming the backbone of any effective crime fighting strategy. It is crucial for a law enforcement agency to keep pace with technology in order to better serve the public. We have been able to make some significant inroads with upgrading our technology thanks to the support of the Coordinating Committee, coupled with some favorable revenues in previous budgets and contributions from private sources such as the South Lake Minnetonka Crime Prevention Fund (a non-profit community based organization). For example, the South Lake Minnetonka Crime Fund recently authorized approximately $10,000 toward this endeavor at no cost to the taxpayers. This type of private partnership speaks well of the support in the community for professional law enforcement services. Nevertheless, this fund is not adequately being replenished from the operating budget since we can no longer rely on favorable revenues to fill in the gap. This fund critically needs an infusion from the operating budget. Radio Fund - As addressed in a previous section, this account was established a number of years ago in anticipation of the changeover in the Hennepin County Radio System to 800 MHz. The switch-over for our organization occurred in the fall of2002 and this fund is currently being used to help ease the impact on our operating budget. A schedule has been set up to phase in this entire cost in the operating budget over a number years. This fund will be drawn down even faster if Hennepin County follows through with plans to upgrade dispatch capabilities and technology in the squad cars in 2005. It is doubtful there will be enough money in this fund to allow for the same orderly transition to the operating budget that has occurred with the conversion to 800 MHz. Building Fund - This fund was initially established during my tenure as Chief of Police to assist with capital expenses to maintain our aging police station and to provide some financial support for exploring the option of a new public safety facility. It has since been re-designated to serve as an escrow account to cover capital maintenance costs for the new public safety facility. It will also be used for some of the incidental costs associated with moving into the new facility. The fund balance was established through some past operating budget surpluses, but will need an annual infusion from the operating budget in future budget years to maintain an adequate escrow amount. .. PAGE 3 - SLMPD FUND BALANCES Reserve Officer Fund - This fund has traditionally been used to provide an annual appreciation banquet for volunteer reserve officers. The authorized use of this fund has been expanded during my tenure as Chief of Police to provide volunteer reserve officers with equipment, training, etc. This fund receives no contribution from the operating budget, but rather, receives revenues generated from our police auctions along with annual contributions directly from each member city. It is important to note reserve officers are true volunteers and receive no [mancial incentives such as those afforded firefighters with the Excelsior Fire District. Expanding the use of this fund as stated has been a nice gesture to the volunteer reserve officers who in the past have personally incurred equipment and training costs in addition to donating their time. DWI Forfeiture Fund - The money realized from the sale ofvehic1es pursuant to the DWI forfeiture law must be distributed in accordance with state statute. The portion that goes to our police department must be maintained in a special fund. The authorized expenditures from this special fund are also restricted by state statute to DWI-related uses, such as the purchase of equipment that can aid in the detection, apprehension and prosecution of people who are driving while impaired. This is a supplement to the operating budget and not a revenue offset. UndesignatedIReserve Fund - This provides a cushion to the operating budget for unanticipated expenses. It is recommended by our [mancial consultant that we maintain a minimum reserve balance equal to 3 percent of operating budget expenditures. The reason a larger reserve fund balance is not required is that unlike a city which must maintain its cash flow between tax collections, our joint powers organization receives monthly payments from the member cities which accounts for the majority of our revenue. It should be noted this fund balance will be drawn down to an unacceptable level if the projected revenue shortfall in 2003 is fully realized. Accrued Liabilities Fund - Our police department keeps enough funds on hand to cover our accrued compensated absences, which are owed to personnel upon their departure from our organization. These include their accumulated vacation and compensatory time as well as severance pay based on a percentage of their accumulated sick leave. We have a long standing practice of making sure our organization can handle this liability internally without passing it along to the member cities. As a joint powers organization, we run a greater risk of being dissolved than a municipality. It is important, therefore, for this liability to be fully funded. . EXCELSIOR FIRE DISTRICT 33 9 THIRD STREET EXCELSIOR, MINNESOTA 55331 CHIEF MARK DUCHARME OFFICE 952.401.8801 FAX 952.474.6300 Date: June 12,2003 To: Excelsior Fire District Board Members From: Fire Chief Mark DuCharme RE: FY 2004Budget Board Members, Attached are the proposed draft operating and capital equipment plan budgets for FY 2004. The Board received this information for the April and May 2003 meeting and elected to continue discussion to this month's meeting. I will need Board direction when to schedule presentations to member Cities. . JJ: It EXCELSIOR FIRE: DISTRICT DRAFT BUDGET FY 2004 COMPARISON WITH PREVIOUS YEARS . APRIL g, 2003 2002 2003 2004 Change Personal Services 101 Full-Time Employees 99,760.00 108,515.00 107,518.00 -0.92% 103 Part-Time Employees 4,160.00 5,200.00 25.00% 106 Firefighter Pay 89,823.00 92,768.00 103,515.00 11.58% 107 Firefighter Officers 16,475.00 16,327.00 12,680.00 -22.34% 121 PERA 9,278.00 9,760.00 10,325.00 5.79% 122 FICA/MC 15,763.00 16,693.00 18,842.00 12.87% 131 Employer Paid Health Ins. 10,275.00 12,500.00 14,000.00 12.00% 133 Employer Paid life Ins. 250.00 250.00 625.00 150.00% 151 Workers Camp Insurance 9,750.00 12,000.00 12,500.00 4.17% 161 Firefighter Pension 15.000.00 15.000.00 15.000.00 0.00% Total Personal Services 266,374.00 287,973.00 300,205.00 4.25% Supplies 200 Offices Supplies 2,500.00 2,500.00 2,500.00 0.00% 212 Motor Fuels 6,500.00 6,500.00 7,000.00 7.69% 217 Protection Gear and Uinforms 29,365.00 13,520.00 11,110.00 -17.83% 220 Repair/Maint. Supplies 5,370.00 5,605.00 6,495.00 15.88% 221 EMS Supplies 2,400.00 2,400.00 2,750.00 14.58% 222 Firefighting Supplies 2,400.00 2,800.00 16.67% 240 Small Tools and Minor Equipment 1,800.00 1,800.00 2,000.00 11.11 % 241 Fire Prevention 7.050.00 5.235.00 4.375.00 -16.43% Total Supplies 54,985.00 39,960.00 39,030.00 -2.33% Professional Services 307 Fiscal Management Fee 15,000.00 15,000.00 15,000.00 0.00% 311 Auditing 3,500.00 3,800.00 8.57% 312 Refuse Collection 420.00 450.00 500.00 11.11% 313 Janitorial 3,400.00 5,500.00 1,600.00 -70.91 % 318 Medical Fees 6,950.00 4,200.00 5,500.00 30.95% 319 Other Professional Fees 2.500.00 2.500.00 2.500.00 0.00% Total Professional Services 28,270.00 31,150.00 28,900.00 -7.22% --.----- Other Services and Charges 321 Telephone/Communications 17,725.00 18,625.00 27,350.00 46.85% 322 Postage 750.00 875.00 900.00 2.86% 331 School/Education 24,976.00 20,688.00 20,684.00 -0.02% 332 Mileage and Travel 3,250.00 4,000.00 4,000.00 0.00% 350 Printing 3,175.00 2,575.00 2,895.00 12.43% 360 Insurance 12,000.00 12,000.00 15,000.00 25.00% 381 Electric 2,300.00 2,415.00 13,000.00 438.30% 383 Gas Utilities 6,000.00 6,300.00 12,000.00 90.48% 401 Repairs/ Maint. Contracted Bldg 3,100.00 3,100.00 3,500.00 12.90% 404 Repairsl Maint. Equipment 14,550.00 15,046.00 16,100.00 7.01% 405 Other Maintenance 5,325.00 5,501.00 6,295.00 14.43% 412 Building Rentals 31,600.00 23,000.00 433 Dues and SUbscriptions 1,485.00 1,690.00 1,785.00 5.62% 439 Unallocated Funds 1,165.00 3,000.00 1,500.00 -50.00% 444 Department Membership 1,250.00 1,250.00 Total Other Services 128,651.00 120,065.00 125,009.00 4.12% TOTAL OPERATING BUDGET 478,280.00 479,148.00 493,144.00 2.92% Capital Outlay 560 Fumiture and Fixtures 750.00 750.00 570 Office Equipment 1,425.00 550.00 580 Other Equipment 720 Equipment Transfer 95,000.00 95,000.00 40,000.00 -57.89% 770 8uilding Transfer 100.000.00 350.000.00 579.269.00 65.51 % Total Capital 197,175.00 446,300.00 619,269.00 38.76% TOTAL BUDGET 675,455.00 925,448.00 1,112,413.00 20.20% ~ EXCELSIDR FIRE DISTRICT DRAFT 8UDGET F"Y 2004 COMPARISON WITH PREVIOUS YEARS APRIL 9, 2003 2004 FY 8UDGET NOTES BUdgeted Capital Equipment Plan Orono Revenue Allocation to CEP 50,000.00 10.000,00 40,000.00 Budgeted Debt Service Orono Revenue Allocation 594,269.00 15.000.00 579,269.00 Budgeted Utilities (East and West BUildings): Gas 12,000.00 Electric 13,000.00 FY 2004 Utilities FY 2003 Utilities 25,000.00 8,715.00 Communications: 2004 Hennepin County 2004 Hennepin County 6,000.00 12,500.00 Fire Fighter Call Pay: 2002 Pay Rate 2003 Pay Rate 8.00 Hr 8.50 Hr REVENUE 2004 City of Orono: Fire Protection Contract City of Orono: Reimbursable: Postage School/Education Total Revenue Revenues Operating Budget Capital Charges Surplus Projection EXC~LSIDR FIRE DISTRICT 2004 ORONO REVENUE AND EXPENSES APRIL 9, 2003 EXPENSES 2004 137,890.00 Personal Services 101 Full-Time Employees 103 Part-Time Employees 106 Firefighter Pay 107 Firefighter Officers 121 PERA 122 FICNMC Total Personal Services 125.00 1,000.00 Supplies 200 Offices Supplies 212 Motor Fuels 220 Repair/Main!. Supplies 221 EMS Supplies Total Supplies other Services and Charges 322 Postage 331 School/Education TOTAL OPERATING BUDGET Capital Outlay 570 Office Equipment 720 Equipment Transfer 770 Building Transfer Tolal Capital TOTAL BUDGET 139,015.00 Projected Surplus: 139,015.00 34,302.01 26,200.00 60,502.01 78,513.00 3,500.00 12,480.00 9,690.00 3,500.00 325.50 2,231.51 31,727.01 250.00 650.00 550.00 1,450.00 125.00 1,000.00 1,125.00 34,302.01 1,200.00 10,000.00 15.000.00 26,200.00 60,502.01 .. Excelsior Fire District 2002 - 2022 Capital Equipment Plan Proposed June 11, 2003 Equipment nem Cost When Lire 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Purchased Expectancy 2014 2015 2016 2017 2018 2019 2020 2021 2022 Beginning Balance .. 319,454 312,454 307,712 186,882 186,822 194,584 181,186 202,258 248,825 332,722 357,824 246,181 228,590 171,658 23,504 174,679 253,413 421,084 494,879 679,623 795,062 Air Pack Replacement 103,000 12 yrs '~:'~~~.:~PQX Exlraction Tool 30,000 15yrs (~~4;q~;. Upgrade Radio Syslem 70,000 Engine 11 327,000 20 yrs :::1,MQ~;'; ::if,~:~j: ':~:f;i',~Q.~;'! ~Hii~;~pq:i :,~~~;5J)~:j: - )1~,ilqii .' ~ < Chier Aula 15,000 5yrs ~;,;jiii~M;; ::[:~;~~Z,:; :':~2,2iH,:i, Marshal Auto 22,000 8yrs ';1~Jj~M)'~ :;~l!;~Il~':, '1,~tj2,$~:: Duly Officer 7 yrs ,::~~,{lpjh; i:j;~,~;.~~t;; :)iS6;Zil"li UtHily 11 ~ Excursion 37,500 15 yr. . )',5.P,<lAQ" ,'~ I'. ........, ..".. UmUy 12-PJU Truck 37,500 15 yr. :L:?M!i,s':;' :'.':45;~; Tanker Replacement a 181,000 20yrs ::::,~9';~~i: :j:$~:1.QO:i: :\1MAm:~ ::::i3.~;~OP:" ;\ii~~1P.1i'K IWlii~Qi ;;.:M;@" Heavy Rescue 116,520 20 yrs .:3~\~;4~:j' ::d"Jli~~:; iL~il;~;44. it~6),i?P:g;.: Engine 12 120,000 20yrs ;jW~~;~gjl,'i reresquirt Rerurbish 421,000 15 yrs Tolal Expenses 88,797 111,600 181,600 111,600 111,600 143,106 127,989 88,544 58,544 142,534 2f!4,534 177,401 220,882 309,237 0 95,000 0 112,259 0 98,542 264,000 Revenues Interest lncome 11 135 11 858 10770 6 541 9341 9,728 9059 10113 12441 16636 17,891 12309 11 430 8583 '1,175 8,734 12671 21 054 24,744 33,981 39 753 Sale or Used Equipmenl 2000 0 0 0 0 5,000 20 000 0 0 16,000 15000 7500 7500 7,500 0 15000 0 10000 0 20,000 20 000 Fund Transfer 95 000 95,000 50,000 105 000 110000 11500ll 120 000 125000 130 000 135,000 140000 140 000 145,000 145 000 150 000 150 000 155 000 155 000 1601100 160 000 170000 T alai Revenues 108 135 106858 60 770 111 541 119341 129728 149059 135 113 142441 167 636 172891 159 809 163,930 161 083 151 175 173 734 167671 188 054 184744 213981 229 753 Year End Balance 338,792 307,712 186,882 186,822 ; 94 564 181,188 202,256 248,825 332,722 357,824 248,181 2211,590 171,658 23,504 . 174,679 253,413 421,084 494,879 679,823 795,082 760,815 l'Ioles: 1. Inleresllncome esUmated at 3.5% to FY 2005. rrom FV 2006 on 5% inlere.tls projected. ;~:..~~;~iflk~i~gl~WJ;~~a~~~~~:~1~fr~~re~~i"g1~~~a;Q60 5. fV 2003 Begining Balance is actual CITY OF U...:N'....D'........ 'l. ' ," , ,-" ,..': I' ". .'. ..' 5341 MAYWOOD ROAD MOUND, MN 55364-1687 PH: (952) 472-0600 FAX: (952) 472-0620 WEB: www.cityofmound.com MEMORANDUM August 4, 2003 FROM: ALL FIRE CONTRACT CITIES ~IS M. HANSON, CITY MANAGE~ ' - " j i' .~ : ,.~' 6 i II II! ;,'n 2003 111 I J ....._.~.>..~-__~' il:b 1 i f ..,....".-,..'".......~ TO: SUBJECT: 2004 FIRE CONTRACT BUDGET PROPOSAL Enclosed is the 2004 Fire Contract Budget Proposal. It follows the same format and approach as used since 1982, with the exception that we are now using market value instead of assessed value. Capital outlay for 2004 consists of an electrical pressure washer, fire simulation software for training, and an outdoor/indoor weather station. Although we are not proposing the purchase of a new vehicle in 2004, we are continuing to set aside monies ($36,000), in the Fire Truck Repair Account as we have since 1991. Keeping this amount in the budget will assist in planning for future purchases of major fire fighting equipment. As in past years, we have reviewed the annual increase for the Fire Relief Association. As you may recall, from 1982 until 1992, we have been collecting a 10% annual increase for this purpose. In the 1991 budget, we reduced the annual increase to 4%. In the 1992 budget, we again included a 4% increase. For 1993, a 7% increase for the fire pension contribution was approved. For 1994, a 4% increase in the contribution was approved. For 1995, we had a 4% increase in the contribution and an additional 2% in the contribution to address the unfunded liability issue that had been discussed within the actuarial report that the Fire Department had prepared as of 12/31/94. The Department requested a pension benefit increase in 1995 but we asked for an actuarial as of 12/31/95. That was Completed in the spring of 1996 which indicated that an increase of$35 or a monthly benefit of$460 would be affordable without any increases in contributions from the cities in the fire district. The Department's request was approved by the Mound City Council effective July 1, 1996. Additional actuarial were performed as of 12/31/97 and as of 12/31/99 which indicate that current investments are doing very well and that the unfunded liability issue is still a concern as we look at .. printed 011 recycled paper the future of the fund and that based upon those actuarial, the unfunded liability amount should be IIzeroed out" by December 31, 2009. On August 25, 1998 the Mound City Council passed a resolution approving an increase in monthly pension benefit for the Fire Relief Association to $510 effective September 1, 1998. For 2001, the contribution from the cities towards the Fire Relief Association was set at a 4% increase over the 2000 contribution. Firefighter's hourly wages, which are paid on call, have been disbursed at $7.00 per hour for 2001, an increase of 50 cents from prior years. Effective January 1, 2001, the Mound City Council approved the Fire Department Relief Association's request to an increase in pension benefits to $585.00 per month. For 2002 and 2003 the contributions from the cities towards the Fire Relief Association was set at a 3% increase over the 2001 and 2002 contributions. After receiving recommendations from the MFD Fire Commission on July 30, 2003, we feel that an additional 3% increase in pension contribution for the year 2004 is a justifiable validation of the skills which these volunteers bring to the service of the Fire Department. The extended leadership of a fire chief and the fire inspection needs are being addressed through a full time fire chief position and a full time secretary. We have budgeted $90,710 for these positions in 2004. The Fire Department Volunteers are very proud of their equipment and of the service which they provide. The City of Mound, Minnetrista, Spring Park, Minnetonka Beach, and Shorewood are proud of having such a dedicated group of individuals who volunteer their time for the safety of all the citizens in the fire service area. Firefighting continues to be complicated and more sophisticated in many respects. More and more time is required of firefighters now than ever before. Being able to provide excellent equipment, training opportunities and financial incentives to attract and keep firefighters around for 20+ years is critically important to the future of the Mound Fire Department. The Department is at a full complement of 37 firefighters who take their firefighting job very seriously. They do receive the full support of the entire fire district and we are velY proud of what they do to protect the residents from fire or other safety related hazards. Please review this information and the proposed budget and contact Greg Pederson, Fire Chief, or myself, if you have any questions. cc: Greg Pederson, Fire Chief Gino Businaro, Finance Director A - MARKET VALUE ,. 2003 2003 2002 2002 VALUE PERCENTAGE / VALUE PERCENTAGE MINNETONKA BEACH 209,635,300 11.40% 194,482,700 11.96% MINNETRISTA 469,642,700 25.55% 414,143,900 25.46% SHO~EWOOD 53,654,700 2.92% 45,389,000 2.79% SPRING PARK 155,143,000 8.44% 135,442,200 . 8.33% : MOUND 950.159.400 51.69% 837 .168.900 51.47% 1.838.235.100 100.00% 1.626.626.700 100..00% B - FIRE & RESCUE CALL HOURS 2002 2001 2000 MINNETONKA BEACH 388 '" 4.60% 436 4.28% 392 3.67% MINNETR1ST A 1,985 '" 23.54% 2,653 26.05% 2,092 19.58% SHOREWOOD 208 '" 2.47% 88 0.86% 130 1.22% SPRING PARK 956 '" 11.34% 925 9.08% 771 7.21% MOUND 4.896 '" 58.06% 6.082 59.72% 7.302 68.33% 8.433 '" 1 00.00% 1 0.184 100.00% 1 0.687 1 00.00% '" The total Mutual Aid hours in 2002 was 307 (down 40 from 2001). C - COMBINATION OF MARKET VALUE AND FIRE CALL HOURS MARKET 3 YEAR VALUE AVERAGE FINAL PERCENTAGE FIRE CALLS PERCENTAGE MINNETONKA BEACH 11.40% 4.18% 7.79% MINNETRISTA 25.55% 23.05% 24.30% SHOREWOOD 2.92% 1.52% 2.22% SPRING PARK 8.44% 9.21% 8.83% MOUND 51.69% 62.03% 56.86% ., 100.00% 100.00% 100.00% .CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236 FAX (952) 474-0128. www.cLshorewood.mn.us. cityhall@cLshorewood.mn.us MEMORANDUM TO: FROM: DATE: SUBJECT: City Council Craig W. Dawson, City Administrator C!J August 7, 2003 Public Safety Organizations' 2004 Budgets According to their joint powers agreements, the councils of the member cities of the South Lake Minnetonka Police Department (SLMPD) and the Excelsior Fire District (EFD) must be approve their respective budgets for 2004 by September 1. The service agreement with the Mound Fire District (MFD) requires that the budget amount be set by the Mound City Council in a timely manner for the contracting cities to set their budgets. SLMPD: In the case of the SLMPD, failure for all cities to increase the 2004 operating budget will result in the cities' contributions being the same as in 2003. Based on the common understanding resulting from the experience in setting the SLMPD's 2003 budget, the increase in the SLMPD revenue from the member cities will be the smallest percentage increase authorized by anyone of the city councils. The Coordinating Committee then decides how to provide service with the funding available. The Coordinating Committee reviewed the Chiefs proposed 2004 operating budget on July 23. The Chiefs proposal was a 4.8% increase: 0.4% in operating expenses and 4.4% to restore an unacceptably low fund balance. The Coordinating Committee asked if the Chiefwas comfortable with his proposal, and the Chief responded that he believed that the operating expenses may be "too lean" as proposed. The Committee directed that the Chief identify appropriate funding levels for line items with volatility or a greater level of uncertainty. The Chief has since revised his budget to add a $20,000 contingency, which would increase the operating expenses to 1.9% over 2003. The overall budget increase would change from 4.8% to 6.3%. Shorewood's contribution for 2004 would be $662,952, or a $39,223 increase over 2003. In their joint powers agreement, the cities have agreed to pay whatever their obligation is for the SLMPD to pay its lease obligation for the new police station. The SLMPD's lease obligation in 2004 is approximately $442,000. The amount each city pays toward that figure is based on property values; for 2003, Shorewood's share was 58.42%. If this percentage were the same for 2004, Shorewood's payment would be $258,200, or an increase of about $106,000 over the 2003 payment. This payment is considered a special levy, and would be outside of levy limits. ,. ~.1 PRINTED ON RECYCLED PAPER ~2E 2004 Public Safety Budget Proposals August 11,2003, City Council Work Session Page Two EFD: The EFD Board has reviewed the Chief's proposed budget and directed that it be presented to the councils of the member cities. It did not vote whether to recommend the budget. Presumably, comments from city councils can be considered by the Board at its August 19 meeting, and the councils may act on any revisions recommended by the Board prior to their required approvals of the EFD's budget by September 1. Approval simple majority of the EFD member cities is needed to authorize the 2004 operating budget. If this majority is not in place by September 1, the 2003 budget is increased by: a.) The increase in the July Minneapolis/St. Paul Consumer Price Index for All Urban Consumers (CPI-U) from July 2002 through June 2003; b.) The percentage increase in the most restrictive statutory levy limit applicable to the 2004 budget year placed on any of the member cities over the levy limit for that city for 2003. c.) If (a) or (b) decreases, the operating budget shall remain the same. The EFD Board also directed that the revenues and expenses for service to Orono be presented separately. According to the latest version I could locate, the EFD Operating budget would increase 2.92% in 2004, from $479,000 to $493,000. The lease payments to the Shorewood EDA would increase $235,000, from $350,000 in 2003 to $585,000 in 2004. Shorewood's 2003 contributions were 46.0%. If this percentage were used in 2004, Shorewood's share of the operating budget would increase $6,400. The share of the lease payments would increase $108,000, to $269,000 in 2004. This payment is considered a special levy, and would be outside of levy limits. MFD: The service agreement is identical that Mound has with each of its contract cities. It requires that Mound notify the contracting city of the proposed budget by September 1. The MFD budget for 2004 reflects numerous changes in revenue, expenditure, and anticipated calls for service as the City of Orono will terminate its agreement with Mound for fire services at the end of 2003. This change is largely responsible for Shorewood's share of the MFD budget to rise 50% -- from 1.54% of the budget to 2.22%. The cost for services will increase from $10,400 in 2003 to $17,500 in 2004. The 2004 budget includes $4,945 toward the lease payment to the Mound HRA for the new Mound Fire Station. This payment is considered a special levy, and would be outside oflevy limits. The MFD has established a Fire Commission, which the contracting cities have independently decided their city administrators should serve on. The MFD budget proposal forwarded by action of the Mound City Council reflects comments made by committee members and several councilmembers of the cities at the quarterly meeting of the MFD held July 30. CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD · SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236 FAX (952) 474-0128. www.cLshorewood.mn.us. cityhall@ci.shorewood.mn.us CITY OF SHOREWOOD, MINNESOTA 2004 PROPOSED ANNUAL OPERATING BUDGET August 7, 2003 DRAFT ft '-~ PRINTED ON RECYCLED PAPER CITY OF SHOREWOOD GENERAL FUND SUMMARY 2004 PRELIMINARY BUDGET Actual Adopted YTD June Requested Proposed Adopted $$ 0/0 2002 2003 2003 2004 2004 2004 Change Change Revenues and Other Sources Property Taxes 2,658,662 3,156,847 1,086,000 3,418,477 Licenses and Permits 229,234 242,050 188,994 191,696 Intergovernmental 171,783 70,175 34,458 61,751 Fines and Forfeitures 89,632 60,000 38,167 60,000 Charges for Service 46,079 35,000 41,580 35,000 Miscellaneous Revenue 434,743 125,000 65,397 125,000 Total Revenues 3,630,133 3,689,072 1,454,596 3,891,924 0 0 202,852 5.50% Expenditures General Government Mayor and Council 93,693 125,964 34,826 103,664 Administration 104,539 122,362 65,204 133,723 General Government 173,689 205,930 75,266 189,647 Elections 6,006 0 0 32,094 Finance 127,064 151,885 67,124 165,686 Professional Services 169,394 206,800 69,728 190,000 Planning and Zoning 146,953 146,726 73,487 149,740 Municipal Building 128,146 158,865 55,517 166,350 Total General Government 949,484 1,118,532 441 ,152 1,130,904 0 0 12,372 1.11% Public Safety Police 609,192 797,664 518,102 928,579 Fire Protection 293,029 404,091 202,013 481,629 Protective Inspection 86,958 103,720 43,480 108,146 Animal Control 19,900 23,500 9,725 23,500 Total Public Safety 1,009,079 1,328,975 773,320 1,541,854 0 0 212,879 16.02% Public Works City Engineer 101,582 117,279 48,942 120,467 Public Works Services 225,940 280,910 105,071 281,516 Streets and Roadways 104,045 152,656 26,376 164,959 Snow and Ice Removal 40,013 57,435 25,081 63,392 Traffic Control/Street Lights 34,478 40,250 15,681 40,250 . Sanitation/Waste Removal 3,993 4,450 2,854 5,167 Tree Maintenance 20,715 24,852 9,712 25,378 Total Public Works 530,766 677,832 233,717 701,129 0 0 23,297 3.44% Culture and Recreation Parks and Recreation 451,793 200,083 82,947 206,037 Total Culture and Recreation 451,793 200,083 82,947 206,037 0 0 5,954 2.98% Total Expenditures 2,941,122 3,325,422 1,531,136 3,579,924 0 0 254,502 7.65% Total Revenues Over (Under) Expenditures 689,011 363,650 (76,540) 312,000 0 0 (51,650) 2 3 CITY OF SHOREWOOD SUMMARY OF ESTIMATED REVENUES 2004 GENERAL FUND BUDGET TAXES: ~ . The City levies property taxes to finance the general operating fund which provides municipal governmental services Fiscal Oisoarities _ 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 metrololitan area. Special Lew _ In addition to levy limits, this special levy is for Shorewood's share of the debt service for the public safety bldg. LICENSE/PERMIT FEES: Rental Housinp 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. Buildina Permits - Permit fee based upon valuation of structure according to Uniform Building Code Schedule. Ooa Licenses Other Non-business - Horse permit and alarm permit fees. INTERGOVERNMENTAL REVENUE: L-ocal Government Aid _ the continuance of the discontinued Local Performance Aid. LGA is discontinued as of 2003. Homestead and Aariculture Credit Aid (HACA)- A State credit which reduces the tax levy. HACA is discontinued as of 2003. Local Performance Aid (LPA) - A State aid passed in the 1996 legislature which is given to jurisdictions which certify that they are either developing or have already incorporated the use of performance measurements in their budgeting process. This aid is discontinued for 2000. PERA Aid _ A State aid approved in the 1997 legislature to fund an mandated increase of 0.70% in the MSA Road Aid _ Aid provided by the State of Minnesota 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. En<;1ineerina - Fees charged to other City funds and developers for engineering services. Recreation _ Fees charged to Freeman Park Foundation 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, pop sales, cellular antenna rental and other miscellaneous revenues. TRANSFERS FROM OTHER FUNDS - For 2004, transfers from liquor, and other funds, such as sewer and water. FUND BALANCE - Fund Balance allocated for 2004 budget purposes. 4 CITY OF SHOREWOOD SUMMARY OF ESTIMATED REVENUES 2004 GENERAL FUND BUDGET Actual Actual Budget YTD June Proposed Adopted $ % REVENUES: 2001 2002 2003 2003 2004 2004 Chanqe Chanqe TAXES: General Property 2,128,512 2,558,366 2,851,847 1,086,000 2,907,997 56,150 2.19% Fiscal Disparities 78,013 100,297 0 0 0 Special Levy 0 0 305,000 0 510,480 205,480 TOTAL TAXES 2.206,525 2.658.662 3,156.847 1,086,000 3,418,477 0 261.630 9.84% LICENSE/PERMIT: Rental Housing 210 100 130 100 0 Tobacco 1,750 2,500 2,500 0 2,500 0 Alcoholic Beverages 8,150 8,150 8,150 8,150 8,150 0 Others-Business 2,345 2,669 2,000 1,419 2,000 0 Building Permits 333,939 210,386 225,000 175,979 175,000 (50,000) Tree Trimming Licenses 300 330 300 120 300 0 Dog Licenses 2,706 3,164 2,500 2,496 2,500 0 Others-Misc. 325 1.825 1,500 700 1.146 (354) TOTAL LICENSE/PERMIT 349,515 229,234 242.050 188.994 191,696 0 (50,354) -21.97% INTER-GOVERNMENTAL REVENUES STATE AIDS Local Government Aid 8,412 8,417 8,418 0 0 (8,418) HACA 427,003 0 0 0 0 0 Mkt Value Credit Aid 96,244 34,458 0 0 PERA Aid 4,751 4,751 4,751 0 4,751 0 MSA Road Aid 57,103 62,371 57,006 0 57,000 (6) Total State Aids 497,269 171,783 70,175 34,458 61,751 0 (8,424) TOTAL INTERGOVERNMENTAL 497.269 171.783 70,175 34,458 61,751 0 (8,424) -4.90% CHARGES FOR SERVICE: General Government 12,815 8,635 8,000 16,010 8,000 0 Engineering 12,443 19,540 12,000 0 10,000 (2,000) Recreation 16,965 17,904 15,000 25,570 17,000 2,000 TOTAL CHARGES FOR SERVICE 42,222 46.079 35,000 41,580 35,000 0 0 0.00% FINES & FORFEITS 61 ,243 89.632 60,000 38,167 60.000 0 0 MISC REVENUES 161,002 434,743 125,000 65,397 125.000 0 0 0.00% TRANSFERS From Other Funds 20,000 25,000 0 0 0 0 From Liquor Stores 10,000 30.000 30,000 0 30,000 0 TOTAL TRANSFERS 30,000 55.000 30,000 0 30,000 0 0 0.00% TOTAL REVENUES 3.347,776 3.685.132 3,719,072 1 ,454,596 3.921.924 0 202,852 5.50% OTHER FUNDING SOURCES: 0 0 0 0 0 0 0 TOTAL REVENUES $3.347.776 $3.685.132 $3,719.072 $1 ,454.596 $3,921,924 $0 $202.852 5.50% 5 CITY OF SHOREWOOD GENERAL FUND SUMMARY OF EXPENDITURES 2004 ADOPTED BUDGET BUDGET BUDGET DEPT ACTUAL BUDGET YTD JUNE PROPOSED ADOPTED NO. DEPARTMENT 2002 2003 2003 2004 2004 41110 Mayor and Council 93,693 125,964 34,826 103,664 41300 Administration 104,539 122,362 65,204 133,723 41400 City Clerk 173,689 205,930 75,266 189,647 41410 Elections 6,006 32,094 41500 Finance 127,064 151,885 67,124 165,686 41600 Professional Services 169,394 206,800 69,728 190,000 41910 Planning & Zoning 146,953 146,726 73,487 149,740 41940 Municipal Building (City Hall) 128,146 158,865 55,517 166,350 Capital Transfer - Office Equip 89,600 35,000 0 50,000 42100 Police 609,192 797,664 518,102 928,579 Capital Transfer - Equip 800 0 0 0 42200 Fire 293,029 404,091 202,013 481,629 42400 Protective Inspection 86,958 103,720 43,480 108,146 42700 Animal Control 19,900 23,500 9,725 23,500 43010 City Engineer 101,582 117,279 48,942 120,467 43050 Public Works Service 225,940 280,910 105,071 281,516 Capital Transfers - Equip & Stormwtr 105,000 100,000 0 85,000 43100 Streets & Roadways 104,045 152,656 26,376 164,959 Capital Transfer - Street Imps 200,000 200,000 0 192,000 43125 Snow & Ice Removal 40,013 57,435 25,081 63,392 43160 Traffic Control/Street Lighting 34,478 40,250 15,681 40,250 43200 Sanitation/Waste Removal/Weeds 3,993 4,450 2,854 5,167 43250 Tree Maintenance 20,715 24,852 9,712 25,378 45200 Parks & Recreation 451,793 200,083 82,947 206,037 Capital Transfer - Park Imps & Land/Open: 213,700 58,650 0 15,000 TOTAL GENERAL FUND EXPENDITURES $3.550,222 $3,719,072 $1.531 ,136 $3.921.924 $0 7 FUND: 101 General DEPARTMENT MISSION: The Mayor and City Council set policy for the City and provide general direction to the Administrator in policy implementation. The department budget supports council development, information efforts and special City associations and programs. DEPARTMENT: Mayor and Council DEPT NO: 41110 DESCRIPTION OF ACTIVITY: The City Council meets twice montly and in periodic special worksessions to consider and adopt legislative and administrtive policies that pertain to the services provided to residents. The City Council also sits as the Board of Review for property valuations and as the Board of the Shorewood Economic Development Authority. OBJECTIVES: - Establish annual goals and priorities for the City - Meet at least annually with advisory commissions. - Strategic planning HIGHLIGHTS/COMMENTS: Staffing: City Council Salaries Supplies/Materials: Awards and misc. supplies Support Services: Community Visioning (2003) Conferences and Seminars Appreciation Function for City Volunteers/Staff Special Brochures Lake Minnetonka Conservation District (LMCD) Assn of Metro Municipalities League of MN Cities Excelsior Chamber of Commerce July 4th Celebration Charges, Fees & Other: Council Contingency 8 FUND: 101 DEPARTMENT: Mayor and Council DEPT41110 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 13,564 13,564 13,564 6,782 13,564 0 0 Supplies/Materials 725 544 1,500 423 1,200 0 0 Support Services 62,725 77,282 70,900 27,621 58,900 0 0 Charges, Fees & Other 11,019 2,303 40,000 0 30,000 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 88,033 93.693 125,964 34,826 103,664 0 0 SERVICE INDICATORS: Seminars, Conferences & Schools Attended 5 5 5 5 Newsletters Published 12 12 12 12 No. of Council Mtgs. 24 24 24 24 No. of Workshops/Special 24 24 24 24 Agenda Items 500 500 500 500 Ordinances & Resolutions Adopted 130 130 130 130 COST INDICATORS: Expenditures 88,033 93,693 125,964 34,826 103,664 0 0 - Program Revenues = Levy Dollars 88,033 93,693 125,964 34,826 103,664 0 0 STAFFING: Part time: Mayor 1.00 1.00 1.00 1.00 1.00 Councilmembers 4.00 4.00 4.00 4.00 4.00 9 DEPT NO: 41300 DEPARTMENT MISSION: To implement policy established by the City Council; offer staff support to the City Council in its policy making role; and manage day-to-day operations of the City in a manner consistent with established City values to effectively and efficiently meet set qoals & objectives. FUND: 101 General DEPARTMENT: Administration DESCRIPTION OF ACTIVITY: The City Administrator directs City departmental operations to ensure compliance with policies established by the City Council and with state and federal laws. The department supports the City Council by managing Council agendas, directing the flow of information and requests for action to the Council. OBJECTIVES: _ Take a leadership role in intergovernmental cooperative efforts in the Lake Minnetonka area - Participate actively in joint powers organizations _ Participate actively in legislative and policy activities of municipal associations _ Actively monitor legislation and communicate with legislators HIGHLIGHTS/COMMENTS: Staffing: Includes step increases Supplies/Materials: Miscellaneous books & supplies Support Services: Labor Relations Associates Contract Conference, mileage, meetings & seminars Memberships to ICMA, MCMA, MAMA 10 FUND: 101 DEP ARTM ENT: Administration DEPT 41300 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 99,764 98,716 111,512 42,892 122,273 0 0 Supplies/Materials 47 0 400 0 200 0 0 Support Services 4,468 5,823 10,450 22,312 11,250 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 324 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 104.603 104,539 122,362 65,204 133,723 0 0 SERVICE INDICATORS: Council Mtgs/Work Sessions 48 48 Council Agenda Items 500 500 Public Safety Board Meetings 20 20 Public Safety Staff Meetings 14 14 Staff Meetings 52 52 COST INDICATORS' Expenditures 104,603 104,539 122,362 65,204 133,723 0 0 - Program Revenues 0 0 0 0 0 0 0 = Levy Dollars 104,603 104,539 122,362 65,204 133,723 0 0 STAFFING: Full Time: Admistrator/Clk 1.00 1.00 1.00 1.00 1.00 Exec Sec/Dep Clk .33 .33 .33 .33 .33 11 FUND: 101 General DEPARTMENT MISSION: Provide staff support for the City Council including preparation of agendas and meeting packets. Responsible for City Clerk functions including records retention, notices and licenses. DEPARTMENT: City Clerk DEPT NO: 41400 DESCRIPTION OF ACTIVITY: This department provides for general reception and secretarial duties in the City offices, as well as the recording secretary for City Council meetings. The Deputy Clerk is the official recordkeeper of minutes and permanent records, and supervises all staff in this area. This department is responsible for all licensing functions. It also oversees implementation of the City communications plan. OBJECTIVES: -Continue to improve web site, allowing visitors to communicate better with City Hall _ Improve City newsletter through the addition of community articles & pictures, council & commission articles, & project updates _ Improve response time to residents making general inquiries through various communications tools _ Monitorand report on effectiveness of communications plan _ Develop orientation package for new council members, commission members and staff . Develop employee handbook HIGHLIGHTS/COMMENTS: Staffing: Includes step increases for full time employees, part-time communications tech part-time, temporary, general office support part-time Web developer Supplies/Materials: Newsletter supplies & postage Office supplies & postage Software upgrades Office equipment supplies Support Services: Conference, mileage and Seminars Publication of legal notices for all General Fund Depts Council Recording Secretary Computer Consulting and Training Memberships to IIMC, MCFOA & Municipals Capital Outlay: Computers (3) (Pat, Twila, Jean) 12 FUND: 101 DEPARTMENT: City Clerk DEPT 41400 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 96,939 128,277 134,780 55,821 130,772 0 0 Supplies/Materials 17,184 17,404 37,250 11 ,371 31,725 0 0 Support Services 13.777 25,044 30,250 5,081 22,350 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 5,398 2,964 3,650 2,993 4,800 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 133,298 173,689 205,930 75.266 189,647 0 0 SERVICE INDICATORS: No. of Elections held 2 0 No. of Ordinances 10 10 No. of Resolutions 120 120 Dog licenses issued 450 450 Other licenses issued 30 50 Council Agendas 48 48 COST INDICATORS: Expenditures 133,298 173,689 205,930 75,266 189,647 0 0 - Program Revenues = Levy Dollars 133,298 173,689 205,930 75,266 189,647 0 0 STAFFING: Full time: Exec SeclDep Clk .67 .67 .67 .67 .60 Parks Secretary .70 .70 .70 .70 .70 Secretary/Receptionist 0.25 0.25 0.25 0.25 0.25 Accounting Clerk I 0.25 0.25 0.25 Part time: Communications Tech. 1.00 0.66 0.66 0.66 0..37 Website Maint. (Plan.Asst) 0.20 0.20 0.20 Temporary Receptionist 13 FUND: 101 General DEPARTMENT MISSION: Responsible for Election functions. DEPARTMENT: Elections DEPT NO: 41410 DESCRIPTION OF ACTIVITY: This department provides for the preparation for and supervision of State/Federal Primary City General and Special elections by the Deputy City Clerk. oaJECTIVES: - Increase youth awareness of local government issues through active involvement with school officials and instructors through programs such as student election judges HIGHLIGHTS/COMMENTS- Staffing: Election Clerks Supplies/Materials: Election supplies & materials Support Services: Capital Outlay: Voting Booths ADA Ramp for W1 P1 14 FUND: 101 DEPARTMENT: Elections DEPT 41410 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 26.569 0 0 Supplies/Materials 2.075 0 0 Support Services 1.650 0 0 Charges & Fees 0 0 0 Capital Outlay 1.800 0 0 Transfers 0 0 0 TOTAL 0 0 0 0 32,094 0 0 SERVICE INDICATORS: No. of Elections held 2 No. of Ordinances No. of Resolutions Dog licenses issued Other licenses issued Council Agendas COST INDICATORS: Expenditures 0 0 0 0 32,094 0 0 - Program Revenues = Levy Dollars 0 0 0 0 32,094 0 0 STAFFING: Full time: Exec Sec/Dep Clk 0.20 Part time: Election Judges 35.00 15 FUND: 101 General DEPARTMENT MISSION: To administer financial policies of the City; perform accounting functions for all fund types; invest available funds in accordance with State Statutes; oversee City insurance policies; and provide for timely reporting of financial matters to City Council staff and the public. DEPARTMENT: Finance DEPT NO: 41500 DESCRIPTION OF ACTIVITY: Finance is responsible for processing all financial transactions of the City in accordance with Federal, State and Local laws, and in compliance with Generally Accepted Accounting Principles. Transactions include accounts payable, accounts receivable, payroll, investments, utility billing, special assessments, risk management, personnel benefits and financial reporting. The Finance Director is responsible for the preparation and administration of the City budget. OBJECTIVES: - Prepare annual budget document - Prepare CAFR for submittal to GFOA Certificate of Achievement Program - Review debt issues and make recommendations on debt structure - Review and update financial policies and procedures - Coordinate the transition to GASB 34 financial reporting HIGHLIGHTS/COMMENTS' Staffing: Includes step increases Supplies/Materials: Computer checks & budget supplies Finance software support and maintenance Miscellaneous supplies Support Services: Conferences, Mileage, Meetings, Education & Seminars Publication of Financial Statements & Budgets Memberships to GFOA & MGFOA Subscription to GFOA periodicals Submittal fee - GFOA Certificate of Excellence Program Submittal fee - GFOA Distinguished Budget Award Program Bank & Broker service charges Capital Outlay: 16 FUND: 101 DEPARTMENT: Finance DEPT 41500 BUDG ET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 106,001 117,031 120,685 56,453 135,636 0 0 Supplies/Materials 2,870 1,090 18,500 4,543 18,350 0 0 Support Services 6,422 7,888 10,200 3,030 9,700 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 1,065 1,055 2,500 3,098 2,000 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 116,358 127,064 151 ,885 67,124 165,686 0 0 SERVICE INDICATORS: No. Monthly Statements 12 12 12 12 12 No. Accounts Payable Checks Issued 2,500 2,500 2,500 2,500 2,500 Utility Bills Sent 11 ,000 11,000 11,000 11,500 11,500 No. of Payroll Checks Issued 1,100 1,100 1,100 1,250 1,250 No. of Sp. Assess. Rolls Maintained 23 23 23 23 23 COST INDICATORS: Expenditures 116,358 151,885 67,124 165,686 0 0 - Program Revenues Interest Earnings 99,370 105,000 Sp. Assess. Searches 415 300 = Levy Dollars 16,573 46,585 67,124 165.686 0 0 STAFFING: Full time: Finance Dir 1.00 1.00 1.00 1.00 Sr Acctg Clerk .60 .60 .60 .60 Acctg. Clerk .25 .25 .25 17 FUND: 101 General DEPARTMENT MISSION: Provide contracted professional services to the City including general legal, prosecution, financial audit and property assessment. DEPARTMENT: Professional Services DEPT NO: 41600 DESCRIPTION OF ACTIVITY' This department provides for contracted legal, assessing and auditing services for the City. Legal services include general counsel to the City Council, litigation and prosecution of criminal misdemeanors. Assessing services provide property valuation information for tax purposes. Audit services provide for the annual financial audit required by Minnesota State Statutes. OBJECTIVES: - Contain costs on contracted professional services - Attempt to utilize mediation services to avoid litigation HIGHLIGHTS/COMMENTS' Supplies/Materials: Supplies for City Assessor Support Services: Includes general legal fees and prosecutions, mediation services, assessing contract, annual audit services. Charges and Fees: 18 FUND: 101 DEPARTMENT: Professional Services DEPT 41600 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 Support Services 197,472 169,394 206,800 69,728 190,000 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 197,472 169,394 206,800 69,728 190,000 0 0 SERVICE INDICATORS: No. of parcels 3,050 3,050 3,050 3,050 No. of litigations 5 5 5 5 No. of City Funds 22 22 22 22 COST INDICATORS: Expenditures 197,472 169,394 206,800 69,728 190,000 0 0 - Program Revenues Fines 18,100 19,300 19,300 0 = Levy Dollars 179,372 150,094 187,500 69.728 190,000 0 0 Other Dollars STAFFING: 19 FUND: 101 General DEPARTMENT MISSION: Guide and control the physical development of the community. Coordinate and implement long range city-wide and area planning activities. DEPARTMENT: Planning & Zoning DEPT NO: 41910 DESCRIPTION OF ACTIVITY: This department is responsible for the review of development proposals, preparing and updating the City's Comprehensive Plan, and other long range planning activities. It provides for administration and enforcement of the City's zoning codes, and preparation and upkeep of zoning, subdivision, floodplain and other planning and zoning related ordinances. OBJECTIVES: - Establish an action plan to implement Comprehensive Plan - Complete GIS parcel data base - Update/enhance city maps - Update/enhance procedure handouts HIGHLIGHTS/COMMENTS: Staffing: Includes step increases Supplies/Materials: Maintenance contracts for computer & office equipment Miscellaneous supplies Support Services: Recording Secretary for Planning Commission Meetings Air time for cellular phone Conferences, mileage, meetings & seminars Land Conservation/Environment Committee expenses Memberships to APA, MN APA, Sensible Land Use Coalition Subscriptions to APA Journal & Zoning News Charges & Fees: Capital Outlay: 20 FUND: 101 DEPARTMENT: Planning & Zoning DEPT 41910 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 117,205 128,405 127,326 64,260 135,040 0 0 Supplies/Materi als 122 842 3,200 778 975 0 0 Support Services 24,549 16,961 14,550 6,856 13,175 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 482 745 1,650 1,592 550 0 0 Transfers 2,500 0 0 0 0 0 0 TOTAL 144,858 146,953 146,726 73,487 149,740 0 0 SERVICE INDICATORS: No. of zoning apps. 20 20 No. of zoning com pints 20 25 Planning Comm. Meetings 12 12 Planning Comm. Work Sessions 12 12 COST INDICATORS: Expenditures 144,858 146,953 146,726 73,487 149,740 0 0 - Program Revenues Zoning Appl. Fees 5,000 0 Bldg. Permit Carryover 93,484 0 (from Proto Inspection) = Levy Dollars 144,858 146,953 48.242 73,487 149,740 0 0 STAFFING: Full time: Planning Dir .95 .95 .95 .95 .95 Planning Asst. .70 .70 .70 .70 .80 Part Time: Clerical 21 FUND: 101 General DEPARTMENT MISSION: Provide for the physical operation of City Hall: utilities; maintenance of office equipment and the building structure; and provide for the City's general liability, property, auto and workers' compensation insurance. DEPARTMENT: Municipal Bldg - City Hall DEPT NO: 41940 DESCRIPTION OF ACTIVITY: The Municipal Building department provides for maintenance of all equipment located in the City Hall, and for janitorial services to furnish a clean environment in which to conduct City business. General Liability, Property and Casualty insurance coverages are also provided under this department. OBJECTIVES' - Identify maintenance needs to avoid major investments in the future - Identify options for maximum utilization of office space to avoid future additions - Maintain existing facilities at current level or better utilizing staff to reduce maintenance costs - Continue to dispose of outdated documentation in storage area - Continue to promote community programs to enhance public facilities, such as "Adopt a Garden." HIGHLIGHTS/COMMENTS: Supplies/Materials: Maintenance contracts for copiers, telephones and office equipment Maintenance to city hall building City Hall supplies Support Services: City Hall janitorial, rug services, & pest control Utilities and phone service for City Hall Insurance coverage for all city depts except enterprise funds Rental of postage meter Special Assessments on City owned property Sales and Use Tax Payments Charges & Fees: Capital Outlay: Senior Community Center Payment Transfers: Public Facilities Fund - Office Equipment 22 FUND: 101 DEPARTMENT: Municipal Building - City Hall DEPT 41940 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 0 0 0 0 0 0 0 Supplies/Materials 8,914 7,332 17,005 4,452 16,500 0 0 Support Services 96,410 82,228 104,310 13,181 107,300 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 38,630 38,586 37,550 37,885 42,550 0 0 Transfers 25,000 89,600 35,000 0 0 0 0 TOTAL 168,954 217,746 193,865 55,517 166.350 0 0 SERVICE INDICATORS: Number of copies 275,000 275,000 275,000 275,000 COST INDICATORS: Expenditures 168,954 217,746 193,865 55,517 166,350 0 0 - Program Revenues 0 0 = Levy Dollars 168,954 217,746 193,865 55,517 166,350 0 0 Other Dollars STAFFING: 23 FUND: 101 General DEPARTMENT MISSION: To provide a modern, flexible, full-service criminal justice agency which is responsive to community needs. DEPARTMENT: Police DEPT NO: 42100 DESCRIPTION OF ACTIVITY: The South Lake Minnetonka Police Department is a cooperative joint venture between the cities of Excelsior, Greenwood, Shorewood and Tonka Bay. Through this venue, the department provides for the protection of the safety and well-being of citizens in the community, the prevention and detection of crime, and the enforcement of all local, state and federal laws in a cost-efficient manner. Costs and staff are allocated to each of the participating cities on a set percentage basis. The pro-rata share of costs and staff time for City of Shorewood is at 46.0% A separate obligation is required to finance the new SLMPD station. The cost is apportioned on an ad valorem basis among four cities. The City of Shorewood's pro-rata share of the 2004 payment is $258,077, which is approximately 58% of the total payment due. OBJECTIVES: HIGHLIGHTS/COMMENTS. Supplies/Materials: Service for civil defense sirens Support Services: Police services contract for 2004 Prisoner expense, court officer expense, & booking fees Annual Police Auxilliary Dinner 24 FUND: 101 DEPARTMENT: Police DEPT 42100 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 Support Services 549,138 609,193 645,758 366,050 670,502 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 151,906 152,052 258,077 0 0 Transfers 800 800 0 0 0 0 0 TOTAL 549,938 609,993 797,664 518,102 928.579 0 0 SERVICE INDICATORS: Initial complaint reports Clearance rate - ICRos Part I crimes (serious) Part II crimes (other) Clearance rate (Parts I & II) Statewide clearance rate Citations issued Police vehicles Shorewood demand COST INDICATORS: Expenditures 549,938 609,993 797,664 518,102 928,579 0 0 - Program Revenues Fines 75,700 0 0 = LevY Dollars 491.698 609,993 721,964 518,102 928,579 0 0 STAFFING: Chief 1.00 1.00 1.00 0.00 0.00 0.00 0.00 Lieutenant 1.00 1.00 1.00 0.00 0.00 0.00 0.00 Sergeant 2.00 2.00 2.00 0.00 0.00 0.00 0.00 Investigator * 2.00 2.00 2.00 0.00 0.00 0.00 0.00 Patrol Officer 8.00 8.00 8.00 0.00 0.00 0.00 0.00 Administrative Clerk 1.00 1.00 1.00 0.00 0.00 0.00 0.00 ClerkITypist (part time) ** 2.00 2.00 2.00 0.00 0.00 0.00 0.00 * 1 Juvenile Specialist 25 FUND: 101 General DEPARTMENT MISSION: Provide the highest possible quality of fire suppression, prevention and eduction services, and First Responder emergency medical services. DEPARTMENT: Fire Protection DEPT NO: 42200 DESCRIPTION OF ACTIVITY: Fire services are contracted by the City through the Excelsior Fire District and the City of Mound. This department provides for the protection of life and property of the citizens of the community through fire prevention and suppression, fire inspection, building inspection, fire code enforcement and emergency medical services. A separate obligation is made toward the financing of new facilities for the Excelsior Fire District. This cost is apportioned on the same allocation for the operating budget. The City of Shorewood's pro-rata share of the 2004 debt service payment is $241,687. OBJECTIVES: HIGHLIGHTS/COMMENTS: Support Services: Fire contracts with Mound and Excelsior Fire District 26 FUND: 101 DEPARTMENT: Fire Protection OEPT 42200 BUDGET Actual Actual Budget YTO June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 Support Services 248,398 293,029 250,997 128,517 234,997 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 152,608 73,496 246,632 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 248.398 293.029 403.605 202.013 481.629 0 0 SERVICE INDICATORS: Fire calls 135 135 Rescue calls 125 125 Inspection hours 25 25 Investigation hours 35 35 Other hours * 400 400 Cost of emergency response 385,734 463,758 Cost of inspection/ investigation 17,871 17,871 * includes plan review, paper work, complaint investigation, tank removals, burning permits, etc. COST INDICATORS: Expenditures 248,398 293,029 403,605 202,013 481,629 0 0 - Program Revenues 0 0 0 0 0 0 0 = Levy Dollars 248,398 293,029 403,605 202,013 481,629 0 0 EFO STAFFING: Chief (FIT) 1.00 1.00 1.00 1.00 1.00 Asst. Chief 1.00 1.00 1.00 1.00 1.00 Captain 2.00 2.00 2.00 2.00 2.00 Lieutenants 4.00 4.00 4.00 4.00 4.00 Fire Marshall (FIT) 1.00 1.00 1.00 1.00 1.00 Training Officer 1.00 1.00 1.00 1.00 1.00 Firefighters 37.00 37.00 37.00 37.00 37.00 27 FUND: 101 General DEPARTMENT MISSION: Enforce construction safety and related building codes through plan review and inspections. Enforce animal control ordinances. DEPARTMENT: Protective Inspection DEPT NO: 42400 DESCRIPTION OF ACTIVITY: This department provides for the issuance building and construction permits, review of construction plans and specifications, enforcement of all building codes under the Uniform Building Code, inspection of rental housing units, and inspection of zoning violations. The department also provides for contractual animal control, which includes patrol, detention and disposition of stray domestic animals. OBJECTIVES' - Increase and enhance public information through the development of at least two handouts relative to building codes - Explore joint inspection possibilities with adjoining communities - Enhance environmental inspections HIGHLIGHTS/COMMENTS: Staffing: Includes step increases Supplies/Materials: Maintenance contracts on computer and office equipment Miscellaneous supplies Support Services: Contractual inspections during vacations, sick leave Conferences, mileage, meetings & seminars Printing of application forms Membership to ICBO Charges & Fees: Remittances to state of permit surcharges collected Capital Outlay: 28 FUND: 101 DEPARTMENT: Protective Inspection DEPT 42400 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 68,841 77,595 91,670 40,752 95,676 0 0 Supplies/Materials 1,030 361 400 28 850 0 0 Support Services 6,176 8,715 9,550 2,700 10,270 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 383 287 2,100 0 1,350 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 76,431 86.958 103,720 43,480 108.146 0 0 SERVICE INDICATORS: No. of permits issued New Homes 10 50 50 Additions/Other 475 600 600 Avg inspections/permit New Homes 8-10 8-10 8-10 Additions/Other 2-8 2-8 2-8 Commercial/Industrial: 1 2 COST INDICATORS' Expenditures 76,431 86,958 103,720 43,480 108,146 0 0 - Program Revenues Building Permits 175,000 82,898 225,000 225,000 State Surcharges 500 Rental Housing Licenses 3,500 = Levy Dollars 76,431 86,958 (75,280) (39,418) 108,146 (225.000) (225,000) STAFFING: Full time: Building Official 1.00 1.00 1.00 1.00 1.00 Planning Dir .05 .05 .05 .05 .05 Planning Asst .30 .30 .30 .30 .20 Secretary/Recept .10 .10 .10 .10 .10 29 FUND: 1 01 General DEPARTMENT MISSION: Enforce animal control ordinances. DEPARTMENT: Animal Control DEPT NO: 42700 DESCRIPTION OF ACTIVITY: The department provides for contractual animal control, which includes patrol, detention and disposition of stray domestic animals. OBJECTIVES: HIGHLIGHTS/COMMENTS: Staffing: Supplies/Materials: Support Services: Animal control contracts with City of Orono and Claws, Paws & Hooves Charges & Fees: Capital Outlay: 30 FUND: 101 DEPARTMENT: Animal Control DEPT 42700 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 Support Services 19,486 19,900 23,500 9,725 23,500 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 19,486 19,900 23,500 9,725 23,500 0 0 SERVICE INDICATORS: No. of Animal Complaints COST INDICATORS: Expenditures 19,486 19,900 23,500 9,725 23,500 0 0 - Program Revenues = Levy Dollars STAFFING: Full time: 19,486 19,900 23,500 9,725 23,500 o o 31 FUND: 101 General DEPARTMENT MISSION: DEPARTMENT: City Engineer Provide engineering and construction management services for the City. DEPT NO: 43010 DESRIPTION OF ACTIVITY: This department is responsible for general engineering services in the City, as well as preparation of feasibility studies, plans and specifications, and on-site inspection of City projects. The City Engineer also reviews all development proposals and plans. OBJECTIVES: - Assist the City in determining right-of-way needs - Keep construction project files up-to-date and accurate - Communicate in written form to affected residents at least two (2) times during a construction project - Provide in-house engineering where feasible - Provide good public relations with property owners adjacent to construction projects - Resolve construction issues promptly. HIGHLIGHTS/COMMENTS: Staffing: .65 City Engineer/Public Works Director .50 FIT Engineer Technician .25 FIT Clerical Supplies/Materials: Computer maintainance/Upgrade Books, Materials and Software Support Services: Contractual engineering for 2004 Contractual engineering technical assistance Cellular phone Airtime & Pager Conferences and mileage Subscriptions and Memberships Charges & Fees: Capital Outlay: Used CADD Plotter 32 FUND: 101 DEPARTMENT: City Engineer DEPT 43010 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 90,693 94,212 101 ,279 48,029 106,167 0 0 Supplies/Materials 261 196 1,100 145 1,100 0 0 Support Services 14,736 1,380 11,900 549 12,200 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 618 5,795 3,000 219 1,000 0 0 Transfers 2,200 0 0 0 0 0 0 TOTAL 108,508 101,582 117,279 48,942 120,467 0 0 SERVICE INDICATORS: City Engineer Hrs spent on City Projects Hrs charged to developers COST INDICATORS: Expenditures 108,508 101 ,582 117,279 48,942 120,467 0 0 - Program Revenues Public Projects Private Projects Other = Levy Dollars 108,508 101,582 117,279 48,942 120,467 0 0 STAFFING: Full time: City Engineer 1.00 1.00 0.65 0.65 0.65 Eng Technician 0.25 0.50 0.50 Clerical 0.25 0.25 0.25 0.25 0.25 Part time: Clerical 33 FUND: 101 General DEPARTMENT MISSION: DEPT NO: 43050 Provide supervision and support for all public works functions; provides for public works utilities, shop and equipment maintenance and fuels DEPARTMENT: Public Works Service DESCRIPTION OF ACTIVITY' The Public Works Service department is responsible for all general public works duties, maintenance of all public works equipment, and maintenance of the public works facility. OBJECTIVES: - Perform preventative maintenance on all equipment within 100 miles or 10 hours of scheduled service - Perform 90% of City building repairs and preventative maintenance using City personnel HIGHLIGHTS/COMMENTS: Staffing: Includes step increases Supplies/Materials: Includes motor fuel, maintenance of equipment and buildings, and inventory supply items Support Services: Uniforms for crew danitorial-Serviees- Utilities and telephone service for public works building Conference, mileage, meetings & seminars Miscellaneous - damage to private property (mailboxes, etc) Hazardous Waste Licenses Miscellaneous equipment rentals Memberships Charges & Fees: Capital Outlay: Replacement Radios Transfers: Transfer to Equipment Replacement Fund 34 FUND: 101 DEPARTMENT: Public Works Service D EPT 43050 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 195,817 166,852 202,860 74,292 206,666 0 0 Supplies/Materials 34,006 34,320 43,500 14,144 43,500 0 0 Support Services 25,834 24,112 27,400 13,710 27,600 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 1,569 655 7,150 2,926 3,750 0 0 Transfers 126,500 105,000 100,000 0 0 0 0 TOTAL 383.726 330,940 380,910 105,071 281,516 0 0 SERVICE INDICATORS: No of Gopher One calls 2,800 2,800 2,800 2,800 No of vehicle repairs 110 110 110 110 COST INDICATORS: Expenditures 383,726 330,940 380,910 105,071 281,516 0 0 - Program Revenues = Levy Dollars 383,726 330,940 380,910 105,071 281,516 0 0 "..._------.- .'---.-- STAFFING: Full time: City Engineer/Pub Wks Dir 0.10 0.10 0.10 Supervisor of Oper. & Maint. 1.00 1.00 1.00 .00 .00 Lt Equip Oper 1.90 1.90 2.50 2.50 2.50 Clerical 0.25 0.25 0.05 0.05 0.05 Utility Maint. Operators .00 .00 .33 35 FUND: 101 General DEPARTMENT MISSION: DEPT NO: 43100 To maintain and upgrade City streets, parking areas and storm water control systems in an efficient and economical manner DEPARTMENT: Streets & Roadways DESCRIPTION OF ACTIVITY: Includes ongoing maintenance consisting of street patching, street sweeping, roadside mowing, painting of lane markings, and minor storm sewer repair. OBJECTIVES: - Maintain the pavement management system to aid in scheduling of street projects - Paint lane markings on all designated streets - Sweep each City street at least once annually - Mow roadsides at least twice annually - Visually inspect storm drainage grates annually and repair as needed HIGHLIGHTS/COMMENTS' Staffing: 2.0 LEO 0.33 Uti\. Maint. Ops. Supplies/Materials: Rock, gravel & bituminous for street & road repair Support Services: Safety training Contracted road striping Transfers: Transfer to Street Replacement Fund 36 FUND: 101 DEPARTMENT: Streets & Roadways DEPT 43100 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 77,124 62,839 107,156 22,422 119,159 0 0 Supplies/Materials 46,498 32,277 38,000 3,710 38,000 0 0 Support Services 8,669 8,930 7,500 0 7,800 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 3,577 0 0 0 0 0 0 Transfers 367,000 200,000 200,000 244 0 0 0 TOTAL 502,867 304,045 352,656 26,376 164,959 0 0 SERVICE INDICATORS: Miles of street State 3 3 3 3 County 2 2 2 2 City - MSA 9 9 9 9 City - Local 49 49 49 49 Miles Sealcoated 5 5 5 5 Tons of patch material 1,380 1,380 1,380 1,380 COST INDICATORS: Expenditures 502,867 304,045 352,656 26,376 164,959 0 0 - Program Revenues MSA Maintenance 13,750 13,750 13,750 Transfer from Street Fund Budgeted Reserve = Levy Dollars 489,117 290,295 338,906 26,376 164,959 0 0 STAFFING: Full time: Lt Equip Operators 2.20 2.20 2.20 2.00 2.00 Uti!. Maint. Operators 0.33 37 FUND: 101 General DEPARTMENT MISSION: DEPT NO: 43125 Provide snow and ice control for public streets and City owned parking lots to ensure the safe and efficient movement of traffic DEPARTMENT: Snow & Ice Removal DESCRIPTION OF ACTIVITY: This department is reponsible for the plowing and removal of snow after a 2-inch or greater snowfall has occured. Street sanding with a salt/sand mixture is used as a measure of ice control, and is performed as needed. OBJECTIVES. - Remove snow and ice and complete salt/sand operations within 14 hours after the end of a snow event - Complete widening and clean up functions within 48 hours of a snow event HIGHLIGHTS/COMMENTS: Staffing: .5 LEO Supplies/Materials: Sand and salt for ice control 38 FUND: 101 DEPARTMENT: Snow & Ice Removal DEPT 43125 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 24,215 14,655 32,935 10,669 34,192 0 0 Supplies/Materials 14,424 25,358 20,000 14,412 26,000 0 0 Support Services 0 0 0 0 0 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 4,500 0 3,200 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 38,639 40,013 57,435 25,081 63,392 0 0 SERVICE INDICATORS: Miles of street plowed 51 51 51 51 Tons of salt used 250 250 250 250 Tons of sand used 1,200 1,200 1,200 1,200 Manhours spent 1,000 1,000 1,000 1,000 No. of cul-de-sacs 88 88 88 88 plowed COST INDICATORS' Expenditures 38,639 40,013 57,435 25,081 63,392 0 0 - Program Revenues MN Snow Removal Aid 0 0 0 0 0 0 0 = Levy Dollars 38,639 40,013 57,435 25,081 63,392 0 0 STAFFING: Full time: Lt Equip Oper .50 .50 .50 .50 .50 39 DEPT NO: 43160 DEPARTMENT MISSION: Provide for street lighting and traffic signals at intersections and other locations throughout the City for the safety of pedestrians and vehicular traffic FUND: 1 01 General DEPARTMENT: Traffic Control/St Lights DESCRIPTION OF ACTIVITY: Includes maintenace of semaphores and traffic control devices, and maintenance/replacement of regulatory and informational road signs. Provides for electricity for street lights and traffic control devices. OBJECTIVES' HIGHLIGHTS/COMMENTS: Supplies/Materials: Maintenance to semaphores and Hwy 7 & Vine Hill Road, Christmas Lake Road, County Road 19, Hwy 41 and Old Market Road Street signs & posts Support Services: 40 FUND: 101 DEPARTMENT: Traffic Control/Street Lighting DEPT 43160 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 0 0 0 0 0 0 0 Supplies/Materials 3,845 1,249 5,050 1,475 5,050 0 0 Support Services 34,949 33,229 34,700 14,206 35,200 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 38,794 34,478 39,750 15,681 40,250 0 0 SERVICE INDICATORS: No of street lights 190 190 190 190 No of traffic signals 5 5 5 5 COST INDICATORS: Expenditures 38,794 34,478 39,750 15,681 40,250 0 0 - Program Revenues = Levy Dollars 38,794 34,478 39,750 15,681 40,250 0 0 STAFFING: 41 FUND: 101 General DEPARTMENT MISSION: DEPT NO: 43200 Provide for the general sanitation and cleanliness of the City and provide for the treatment of noxious weeds on City properties. DEPARTMENT: Sanitation/Waste Rmv/Weeds DESCRIPTION OF ACTIVITY: Activities include spraying of boulevards and roadways for weed control, and clean-up of properties in violation of City zoning and sanitation codes, as necessary. OBJECTIVES: - Aid in private property cleanup complaints - Resolve 100% of weed complaints HIGHLIGHTS/COMMENTS: Staffing: Miscellaneous staff time for property clean-ups Support Services: Miscellaneous property clean-ups Contracted weed spraying services 42 FUND: 101 DEPARTMENT: Sanitation/Waste Removal/Weeds DEPT 43200 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 1,619 1.138 650 0 1.267 0 0 Supplies/Materials 0 0 0 0 0 0 0 Support Services 5,840 2,854 3.800 2,854 3.900 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 7,458 3,993 4,450 2,854 5,167 0 0 SERVICE INDICATORS: No of weed complaints 2 2 2 2 No of notices served 1 1 1 1 No of parcels sprayed 0 0 0 0 Mileslroadside sprayed 10 10 10 10 Spraying in Dollars 3,000 3,000 3,000 3,000 COST INDICATORS: Expe nditu res 7,458 3.993 4,450 2.854 5.167 0 0 - Program Revenues Fed Disaster Aid = Levy Dollars 7,458 3,993 4,450 2,854 5.167 0 0 STAFFING: 43 DEPT NO: 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-ot-way and other property FUND: 101 General DEPARTMENT: Tree Maintenance DESCRIPTION OF ACTIVITY: This department is responsible tor detection and removal ot diseased and unsate trees on City rights-of-way and other properties, and pruning of trees on city property. Tree inspection services are provided to citizens on an on-call basis. OBJECTIVES: - Remove 100% of diseased trees on public property - Respond to all property owner requests to identify diseased trees - Maintain and trim trees on City property which present a hazard to public HIGHLIGHTS/COMMENTS: Staffing: Includes step increases Supplies/Materials: Small Tools Paint for tree marking Support Services: Contracted tree and brush removal Tree inspection certification 44 FUND: 101 DEPARTMENT: Tree Maintenance DEPT 43250 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 7,901 14,912 10,652 8,555 11,128 0 0 Supplies/Materials 923 369 900 0 900 0 0 Support Services 5,431 5,435 13,300 1,157 13,350 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 14,255 20,715 24,852 9,712 25,378 0 0 SERVICE INDICATORS: No of trees removed 20 20 20 20 Yards of brush hauled 700 700 700 700 COST INDICATORS: Expenditures 14,255 20,715 24,852 9,712 25,378 0 0 - Program Revenues = Levy Dollars 14,255 20,715 24,852 9,712 25,378 0 0 STAFFING: Lt Equip Oper/Foreman .20 .20 .20 .20 .20 45 DEPARTMENT: Parks & Recreation DEPARTMENT MISSION: Maintain City parks, trails & beaches to ensure safe and enjoyable recreational amenities, and coordinate recreational opportunities for City residents of all ages and physical abilities FUND: 101 General DEPT NO: 45200 DESCRIPTION OF ACTIVITY The department is responsible for the maintenance of all City parks, including playgrounds, ballfields, trails, ice rinks, buildings and other play areas. Winter ice skating, and summer recreation programs are coordinated within this department. OBJECTIVES; _ Continue promoting the benefits of investing in Shorewood parks, and develop support for funding operation and park improvements _ Identify needs and assist the Shorewood Parks Foundation in coordination of fund raising efforts (to replace diminishing park dedication fees). HIGHLIGHTS/COMMENTS: Staffing: Includes step increases Part time includes Park Commission Secretarial Seasonal includes Summer employees and Winter Rink Attendants Supplies/Materials: Small tools Maintenance to park equipment and buildings Rock, black dirt, gravel, sand, fertilizers, seed for parks Support Services: Park Coordinating Services Contracted weed control in parks Park utility and telephone charges Rental of portable toilets Contribution to Senior Recreational Program Services Charaes & Fees: Capital Outlay: Transfers: 46 FUND: 101 DEPARTMENT: Parks & Recreation DEPT 45200 BUDGET Actual Actual Budget YTD June Requested Proposed Adopted ITEM 2001 2002 2003 2003 2004 2004 2004 Staffing 86,170 110,551 115,683 56,735 120,862 0 0 Supplies/Materials 11 ,233 10,367 20,600 4,500 20,600 0 0 Support Services 28,736 39,197 63,300 21,712 64,200 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 1,077 291,678 500 0 375 0 0 Transfers 10,000 213,700 63,650 0 0 0 0 TOTAL 137,215 665,493 263,733 82,947 206,037 0 0 SERVICE INDICATORS: Acres of maint park 95.80 95.80 95.80 95.80 95.80 95.80 No. of ballfields Softball 3 3 3 3 3 3 Baseball 5 5 5 5 5 5 No. of shelters 4 4 4 4 4 4 No. of hockey rinks 2 2 2 2 2 2 No. of skating rinks 3 3 3 3 3 3 Miles of Trails 2.75 2.75 2.75 2.75 2.75 2.75 Cost of maint per acre 1,073 1,327 1,338 1,392 130 130 No. of times rinks are cleaned & resurfaced 80 80 80 80 80 80 No. of picnic tables 45 45 45 45 45 45 No. of Tennis Courts 4 4 4 4 4 4 COST INDICATORS: Expenditures 137,215 665,493 263,733 82,947 206,037 0 0 - Program Revenues Sports Organizations 12,000 Tonka Bay. Beach 500 Transfer from Trail Fund 3,000 Capital Levy 10,000 = Levy Dollars - Maint. 137,215 665,493 238,233 82,947 206,037 0 0 STAFFING: Full time: Lt Equip Oper/Foreman 1.60 1.60 1.50 1.50 1.50 Clerical .25 .25 .25 .25 .33 Part time: Clerical Seasonal: Summer 2.00 2.00 2.00 2.00 1.00 Winter (rinks) 10.00 10.00 10.00 10.00 10.00 47