09/03/1991 - City Council Special SPECIAL CITY COUNCIL MEETING
EAGAN MUNICIPAL CENTER
TUESDAY
September 3, 1991
5:30 p.m.
I. ROLL CALL
II. 1992 OPERATING BUDGET
1992 AD VALOREM TAX LEVY
1992 TRUTH IN TAXATION HEARING DATES
III. OTHER BUSINESS
IV. ADJOURNMENT
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: AUGUST 29, 1991
SUBJECT: SPECIAL CITY COUNCIL MEETING/TUESDAY, SEPTEMBER 3, 1991
I spoke with Mayor Egan regarding a change in time for the special City Council meeting
on Tuesday, September 3, from 6:00 p.m. to 5:30 p.m. to allow time for presentation and
discussion regarding the proposed general property tax levy to be certified to Dakota County
so notices are prepared and distributed on a parcel specific basis to all property owners in
the City of Eagan.
Since revenue from property tax is frozen at the same level in 1992 as collected in 1991, it
seemed reasonable to believe that the community would not experience any tax increase.
It wasn't until this week,when the City received the tax valuation,fiscal disparities and other
information from the County, that it became apparent that due to changes in those formulas,
there would be a significant negative impact on Eagan's tax capacity rate. Because of class
rate changes combined with a large increase in the fiscal disparities contribution, the net
increase in the tax rate is approximately 14%.
It is difficult to understand how a growth community such as the City of Eagan can receive
no new dollars from its property tax revenue for general fund operations, capital equipment
and its street construction fund, and at the same time due to certain legislation, the City
receives an increase in its property tax. Unfortunately, the City Council becomes the
governmental entity explaining property tax legislation, not to mention the difficulty in
asking the City to understand there are no new dollars despite a 14% increase to its local
government.
To assist the City Council in preparing for the Tuesday, September 3 meeting, it is
recommended that the memo from the City Administrator entitled "Proposed 1992 General
Fund Operating Budget", pages �„through be studied for that meeting, especially the
sections pertaining to revenues (pages.3 through,), ad valorem taxes and tax rate (pages
through ,�5 ). The remainder of the budget narrative and support information on
departmental operating budgets can be reviewed after Tuesday for the September 10
workshop.
To accommodate the City Council's schedule on Tuesday, a sandwich will be served for the
meeting to be held in the office of the City Administrator. Enclosed on page Xis a copy
of an Apple's Resturant menu. Please call Karen no later than Tuesday morning with your
selection.
/S/ Thomas L. Hedges
City Administrator
TABLE OF CONTENTS
I. CITY ADMINISTRATOR MEMO THORUGH JS
II. COMPARATIVE SUMMARY OF REVENUES 1,‘
III. REVENUE BUDGET WORKSHEETS /7THROUGH c22
IV. DEPARTMENT APPROPRIATION SUMMARIES p?3 THROUGH 3S
V. COMPARATIVE SUMMARY OF EXPENDITURES 37
VI. DEPARTMENT EXPENDITURE WORKSHEETS gtFHROUGH ?
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: AUGUST 20, 1991
SUBJECT: PROPOSED 1992 GENERAL FUND OPERATING BUDGET
INTRODUCTION
On or before September 1, 1991, the City is required to certify its
proposed tax levy for payable 1992 and its proposed budget for 1992
to the County Auditor. Because September 1 falls on a weekend, the
Department of Revenue is recognizing September 3 as the official
date for certification. The City Council will consider at its
September 3 meeting action to adopt a proposed budget for 1992 and
determine the payable 1992 tax levy. Immediately following the
meeting, a copy of the action will be sent to the County Auditor by
fax to meet the September 3 deadline.
On or before November 8, 1991, the County Auditor prepares, and the
County Treasurer delivers, a notice by first class mail to each
taxpayer at the address listed on the County's current year
assessment roll. The date, time and place for the public hearing
for the County, school districts and City will be shown along with
other information. Dakota County has chosen to implement parcel
specific notices for 1991 one year in advance of the legal
requirement. In 1990, the notice was general, and not parcel
specific, which caused a great deal of confusion on what the total
percentage increase was for each taxpayer and for each taxing
jurisdiction. There may be an opportunity for the City to further
explain its property tax distribution as a part of the official
parcel specific notification.
On or before September 3, 1991, the City must also certify to the
County Auditor the dates it has selected for its public hearing and
for the continuation of its hearing, if necessary. The eligible
dates for the City to select from are from the County Auditor and
determined after the County and school district dates are set.
Scheduled public hearings that affect Eagan are as follows:
(Continuation Date
if necessary)
COUNTY OF DAKOTA 11-19-91 11-26-91
SCHOOL DIST. # 191 12-05-91 12-19-91
SCHOOL DIST. # 196 11-25-91 12-16-91
SCHOOL DIST. # 197 11-18-91 12-02-91
;d*-
Since the City has regular meetings on December 3 and 17, it would
probably be appropriate to use those as the hearing and
continuation dates. Although a special meeting could be set for
any dates not included above subject to the appropriate
regulations.
The City Administrator's recommended budget as presented is based
on the maximum ad valorem tax levy per levy limits. Any adjustment
to the ad valorem tax, which is the City's largest revenue source
(approximately 73.9%) would cause an even greater reduction in the
budgetary request departments and the City Administrator are
proposing for the 1992 operating budget.
The 1991 general fund operating budget, approved in the fall of
1990, was $11, 109, 160. The Minnesota State Legislature effectively
reduced the budget by adjusting the amount of HACA the City could
receive in equal installments in both July and December. Those
reductions combined with the use of a new revenue source and other
on-going minor adjustments generate a budget at this date of
$10, 992,740. The Minnesota Legislature also, in the 1991 session,
froze the amount of the levy limit for the City in 1992 at the same
dollar amount as in 1991. Unfortunately, the City has employee
contracts that were previously settled at a 4% increase for 1992,
continued growth is causing additional service demands and the
general rate of inflation for all other charges and services is
increasing at a rate of approximately 3% to 4%. With the City's
largest revenue source (property tax collection) frozen due to
legislative action, in addition to a slowdown in overall community
development, revenues are fairly constant with 1991.
REVENUES
Including the shift of additional general levy ad valorem taxes
from the equipment revolving fund and major street fund, 1992
estimated revenues are $11,664, 640. This is an increase of
$555,480 or 5. 0% over the original 1991 budget and $671,900 or 6.1%
over the budget as adjusted through July 31, 1991.
The revenue estimates continue the trend of increased reliance on
property taxes for general fund operations. With development
activities decreasing, there will be little increase and a very
real potential for decrease in the traditional general fund non-tax
revenues.
On the following page, you will find a graph which illustrates this
trend by comparing tax related (including local government aid,
fiscal disparities and HACA) to non-tax revenues for the years 1989
through the proposed 1992 budget:
3
96
100
90E
80 7 70.3 73.2 71,6 73.9
70 - 67.8
�dd
50j
40 - 32.2 29.7 26.8 28.4 26.1
20 �
10r
'89 Actual '90 Actual '91 Original '91 Bdgt '92 Proposed
• 7/31/91* Bdgt
MI Non-Tax Tax
*Numbers skewed because of the General Fund HACA reduction of
$293 , 175 covered by new revenues and expenditure reductions.
This increased reliance on property taxes to maintain service
levels is, of course, in direct conflict with the State
Legislature's implementation of more and more restrictive levy
limits. This dilemma illustrates fairly clearly the need to
utilize new and probably controversial revenue sources, utilize
more debt financing or eliminate services.
Significant changes in the 1992 revenue estimates include the
following:
1. Tax related revenue shows an increase of $488, 500 over
the original 1991 budget, or $781, 690, over the revised
1991 budget. The $488,500 increase comes entirely from
levies previously dedicated to the equipment revolving
fund and the major street fund.
2 . License revenue increases by approximately $9,500 due
primarily to increased numbers and the slight rate
increase to liquor licenses implemented in 1991.
3. Permit revenue is decreased by $154,000 due primarily to
the building activity slow down. Estimates reflect the
City's desire to make these numbers more conservative
rather than betting on the unknown.
4 . Intergovernmental revenue increases by $3,200 for
increased police training aid.
5. Charges for services is decreased from the adjusted
budget by $80,580, which reflects a net change. Plan
check fees (relating to building permit activity) are
decreased by $48,750, development escrow reimbursement is
decreased by $61,750, and the new investment management
fee is decreased by $9,000. Engineering service revenue
id//
is increasing by $31,350. There was a $100, 000 increase
during 1991 with the implementation of the new investment
management fee as a new revenue source.
6. Recreation charges are increased by $28, 520 from the
revised 1991 budget which had already reflected a mid-
year increase of $16,500 from the original 1991 budget.
The increase results primarily from increased
participation in recreational programs. Other park
activity related fees, such as tree sales and concession
sales, is increasing by $7, 600.
-7. Court fines and forfeits is reduced by $24, 000 to reflect
1991 year to date activity. This account remains
difficult to project and does not seem to reflect
increased police activity. It is dependent on Dakota
County court activity and the level of fines that are
set.
8. Miscellaneous revenues increase in total by $86, 510.
This reflects an increase to interest earnings of $93,000
because of the higher general fund balance. An increase
in building rent of $10,420 is due to increased park
shelter rental, and a decrease of $11,900 in the sale of
City property. No contributions or donations are
included in the 1992 revenue estimates while the adjusted
1991 budget reflects $7, 510. Since all donations have
been tied directly to increased expenditures, the budget
is increased on both sides when they are received.
9. Program revenues increased by $36, 140 in total. There is
a reduction of $8, 000 related to the administrative
transfer on public improvement projects and increases in
administrative transfers from the utility operations of
$38, 600. Pass through reimbursement for Cable TV
operations is decreased by $9,460 while the drug task for
reimbursement is increased by $15,000.
10. Transfers show a reduction of $22, 650 from the revised
budget. MSA maintenance is increased by $4, 100, the one
time transfer from the equipment revolving fund of
$36, 000 is eliminated and the franchise fee transfer is
increased by $9,250 to cover cable tv related obligations
accounted for in the general fund but not in the cable tv
department.
EXPENDITURES
The increases to the proposed 1992 budget are related primarily to
personal services. Since local government is labor-intensive, most
of the increase is for wages and benefits. Due to the serious
budget constraints that were placed on the City by the Minnesota
Legislature, capital equipment, with the exception of small items,
are proposed as an expenditure in the equipment revolving fund
through the sale of equipment certificates. Expenditures as
presented in the City Administrator's revised budget represent an
increase of 6. 1% of the adjusted 1991 budget. The budget increase
to the original 1991 budget of $11, 109, 160 is 5.0%. A total
increase in the operating budget of $671,900 is broken down as
follows:
Breakdown by % of
Category Total
Existing Personal Services, including
4% union contracts, other anticipated
employee settlements and step increases $ 340. 100 61.2%
Personal Services (four (4) new
positions in the Police Department) $ 138. 100 24.9%
Parts & Supplies $ 60, 430 10.9%
Services & Other Charges $ 31, 065 5.6%
Capital Outlay $ 8 , 590 1.5%
Other $ (22 ,805) (4.1%)
TOTAL $_555, 480 100. 0%
Any reduction/adjustment to total Personal Services is directly
proportionate to the quantity and quality of service delivery. The
budget, as proposed with a small exception in the Police
Department, does not expand service delivery or improve the quality
of existing services. The City has a greater number of miles of
infrastructure, more neighborhood parks to accommodate the growth
in subdivisions, more constituents requiring attention by all
departments at City Hall and the sheer number of rising calls in
the Police Department, as well as rising interest in the number of
participants for recreational programs. Yet, the City for two (2)
years has a net staffing reduction despite the four (4) new
persons' positions proposed in the Police Department.
In order to adjust or balance the budget as proposed, policy
considerations are necessary. Some of those policy considerations
are as follows:
1) Consider a reduction in the allocation of property tax
revenue for the major street fund and equipment revolving
fund.
2) Consider a reduction in the service delivery.
3) As stated in the Street Department portion of the general
fund narrative, intersection light and signal light costs
were transferred to the public enterprise fund, a public
policy decision of the City Council.
6
4) Consider additional police personnel upon adjournment of
the State Legislature, allowing for certainty that levy
limits will be lifted in 1992 to assure funding
alternatives for these new positions.
5) Consider a reduction in the percentage increase for
certain employee groups as proposed for 1992.
THREE-YEAR GENERAL FUND BUDGET PROJECTION
With the uncertainty of the Minnesota State Legislature to continue
suppressing the ability of local units of government to raise
revenue through increased property tax collection, it is important
to project the general fund budget for the next three (3) years
beyond 1992. In order to consider projections, certain assumptions
are necessary, such as:
1) The 1992 general fund budget is $11, 664, 640.
2) There is no new personnel projected for 1993 through
1995.
3) Personal services and health insurance are increased at
an annual rate of 4%.
4) All other parts and supplies, services and other charges
and capital outlay are projected at a rate of 3% for
inflation and 2% for system growth.
Unfortunately, these assumptions are extremely conservative and not
realistic if the City is to maintain the same service delivery it
provided in 1990/1991 in 1995. Increased infrastructure, more
police and fire calls, more pressures for expanded recreational
services and other basic service delivery cannot occur in a growth
community given these assumptions and restrictions. However, for
discussion purposes, the three-year projection, given these
assumptions, illustrates how much revenue or expanded revenue would
be necessary during that period of time. If the Legislature
continues to freeze the ability to increase property tax, despite
our continuing growth in assessed valuation, the City will
experience even greater budgetary constraints causing a reduction
in the quantity and quality of services delivered to the community.
On the following page are the three-year projections based on the
aforementioned assumptions for general fund budgets in 1993, 1994
and 1995:
7
Expenditures 1992 1993 1994 1995
Personal $ 7,918,450 4% $ 8,235,188 $ 8,564,596 $ 8,907,180
Other 3,746,190 5% 8,933,500 4,130,175 4,336,684
TOTAL $11,664,640 $12,168,688 $12,694,771 $13,243,864
Based on those expenditure assumptions and a 3% increase in non-tax
revenues each year, the following tax levies would be required each
year to balance the budget. This is a 4.8% increase to the tax
revenue.
Revenues
Taxes $ 8,620,310 $ 9,033,028 $ 9,465,041 $ 9,917,242
Non-Tax 3,044,330 3,135,660 3,229,730 3,326,622
TOTAL $11,664,640 $12,168,688 $12,694,771 $13,243,864
If one assumes that a continued reduction in development activity
will result in flat non-tax revenue, a 5.8% annual tax increase
would be required to finance the expenditure levels based on the
previously listed assumptions as follows:
Revenues
Taxes $ 8,620,310 $ 9,124,358 $ 9,650,441 $10,199,534
Non-Tax 3,044,330 3,044,330 3,044,330 3,044,330
TOTAL $11,664,640 $12,168,688 $12,694,771 $13,243,864
DEPARTMENTAL BUDGET ANALYSIS
Included as a part of the draft 1992 budget are department
summaries and budgetary worksheets that provide expenditure
breakdowns by account for each department. Please review those
narratives for a more comprehensive review of each departmental
budget as proposed by department heads and revised by the City
Administrator.
On the following page is a brief summary by department that
includes the total dollar increase/decrease, percentage
increase/decrease and bullets that outline the more significant
reasons for changes, exclusive of wage increases. (All changes are
from the original 1991 budget. )
Proposed Dept Budget
Increase/(Decrease) Increase/
1991-1992 (Decrease)
Mayor & Council $ 1,810 2.4%
Administration (10,530) (2.3%)
•Reduction of Intern (18,410)
•Reduction/Contribu-
tion Recycling (5, 000)
•LMC/AMM Dues Increase 9, 150
Data Processing 77, 140 27.2%
'New LOGIS Program for
Police M.D.T. 's 50, 000
'Fire System 15, 000
Finance/City Clerk 57,310 8. 1%
'Redistricting & add'l
elections 24,390
Legal 0 0%
Community Development (14 ,250) (1. 1%)
'Capital Outlay Reduction
(parking lot) (18, 000)
'Bldg. Inspection
Services (20, 000)
Cable TV 8, 140 15.0%
'Temporary Personnel 5,650
Police 406,700 11. 6%
-Four new positions
-2 patrol officers 79, 365
-1 sergeant 45,823
-Add'l dispatch hrs. 12,889
-M.D.T. Program 5,440
•Police Wage Step
Increase 79,094
•Kennel/Animal Disposal 5,550
•Capital
-Shooting Range
Agreement 25,000
•
Fire (31,515) (4.3%)
•Reduction full-time
Fire Chief (60,000)
•Increase Capital 10,870
Public Works/Engineering 36,930 5.3%
'Temporary Employees 5,450
•Eng. Services (3,000)
'Watershed Mgmt. (10, 600)
Streets & Highways (44,240) (5. 1%)
'Equip. Repairs 8,500
'Street Repair Supplies (5, 000)
•Snow Removal Supplies (6,500)
•Electricity Streetlgts (24 , 150)
'Electricity Signal Lgts(36,000)
'Capital Outlay (6,750)
Central Services Maintenance 13,300 4.0%
•Waste Removal 5,000
Parks & Recreation 75, 160 4.8%
•Add'l Parkland Approx. 8, 000
'Rec Equip & Supplies 6,450
'Equip Repairs 11,400
'Satellite Rental 4,220
•Capital Outlay 5, 300
Tree Conservation (1,920) (1.6%)
'No Change (after correction
for merchandise for
resale in 1991)
TOTAL INCREASE •S574, 035 5. 2%*
*Original 1991 General Fund Budget
/'
1992 AD VALOREM TAX LEVY
As has been discussed previously, the City's levy limit has been
set by the Legislature at the original 1991 level of $8, 864,869.
This action effectively replaces the HACA reduction in 1991 but
allows no new tax related money for 1992 operations.
The following table illustrates the total tax levy as certified and
adjusted in 1991 and as proposed for 1992:
Proposed 1992 Ad Valorem Tax Including HACA and Fiscal Disparities
Compared to the 1991 Original and Revised Revenue Estimates
1991 Budget
Levy Limit Original Revised Administrator's
Budget Budget Proposed 1992
Budget
General Fund $ 8,131,810 $ 7,838,635 $ 8,620,310
Major Street Fund 460,239 443,727 244,559
Equipment Revolving
Fund 272,820 262,913 -0-
Total Levy Limit $ 8,864,869 $ 8,545,275 $ 8,864,869
Special Levies
Debt Service $ 1,310,000 $ 1,262,667 $ 1,436,500
Special Assessments
City Property -0- -0- 100,000
Total Special Levies $ 1,310,000 $ 1,262,667 $ 1,536,500
Total Tax Related
Revenue $10,174,869 $ 9,807,942 $10,401,369
/1
The proposed 1992 levy, if adopted, would be summarized as follows:
PROPOSED LEVY
FUND
Assessmts
Debt Major City
General Service Street Property Total
General
Levy $8,620,310 $ -0- $244,559 $ -0- $ 8,864,869
Special
Levy -0- 1.436.500 -0- 100.000 1.536.500
TOTAL LEVY $8,620,310 $1,436,500 $244,559 $100,000 $10,401,369
Percent of
Total 82.9% 13.8% 2.3% 1.0% 100.0%
BUDGETED AS
FUND
Assessmts
Debt Major City
General Service Street Property Total
•Net Current
Ad Valorem
Taxes $6,809,400 $1,135,040 $194,320 $ 78,150 $ 8,216,910
Fiscal
Disparities 713,600 118,790 19,800 8,610 860,800
HACA 1.097.310 182.670 30.440 13.240 1,323.660
TOTALS $8,620,310 $1,436,500 $244,560 $100,000 $10,401,370
Incorporated into this levy are two very significant public policy
issues:
1. There is a shift of $488,500 of tax related revenues from
the major street fund ($215,680) and equipment revolving
fund ($272,820) to general fund operations. This shift
from the equipment revolving fund would end the attempt to
buy large capital equipment from the general levy and
place complete reliance on debt financing (primarily
equipment certificates) until such time as the Legislature
corrects the levy limit problem.
The reduction to the major street fund would constrain the
amount of money available for City participation on street
oversizing. On projects that are at least 20% assessed,
the City's contribution could be bonded which would then
/C2.
require a debt service levy outside of the levy limit
restriction.
2 . There is a $100, 000 special levy incorporated to pay
special assessments on City property. It has been a
policy of the City that its property be assessed as is all
other benefitting property related to improvement
projects. Over the years, this has had a significant
impact on park property and required an appropriation of
park site acquisition and development resources. With
recent upgrades to major streets, the impact has increased
on park property and begun to seriously affect other
property as well.
The issue which is being addressed by this levy can be
broken down to three parts listed in priority order as
follows:
a. The City's general fund is responsible to pay
assessments on non-park and non-utility property, for
example, City Hall and fire stations. The required
1992 installment is approximately $26, 000. That
amount was originally requested in the community
development budget and removed by the City
Administrator to be considered as a special levy. The
total 12-31-91 outstanding principal balance on this
type of property is $138,668. 18.
b. In response to neighborhood concerns, the City Council
determined that the assessments on the Highview Park
would be paid by the City rather than by the
neighborhood even though it is a neighborhood park.
This action results in a principal obligation of
$88,764.70 and a 1991 installment of $15,903.62.
c. Current levied and pending assessments on other park
property show a 12-31-91 principal obligation of
$603 ,420.81. This obligation will severely restrict
future park development as contributions to the park
site acquisition and development fund are reduced with
less development.
It is the staff's recommendation that this levy be
authorized as a special levy at this time and that a
formal plan be presented to the City Council during 1992
addressing the payment process in more detail. The
proposal at this point simply raises the issue as to
whether or not the funds which will be required to pay
these assessments would not be better left for general
fund operations and park development while the special
levy pays the assessments.
PROPERTY TAX RATES
As has become a constant problem given the State's manipulation of
the property tax system, through changes in property classes and
/3
class rates, it is difficult to project the bottom line tax impact
this early in the process. All of the factors will be in place
when parcel specific truth-in-taxation notices are mailed. At this
point, however, certain estimates need to be made. With that in
mind, the following is a comparison of payable 1991 with payable
1992 as proposed:
Tax Year Payable
1991 Actual 1992 Estimated
Operating Levy $ 8,864,869 $ 8,864,869
Special Levies:
Debt Service 1,310,000 1,436,500
Other - 100,000
Total Levy Certified $10,174,869 $10,401,369
Reduction to Certified Levy:
Fiscal Disparities Distribution ($ 885,588) ( 860,796)
HACA ( 1,359,271) ( 1,323,655)
Total Reductions ($2,244,859) ($2,184,451)
Net Levy to be Raised Locally $7,930,010 $8,216,918
Gross Tax Capacity $59,845,100 $58,180,477
Less:
Fiscal Disparities Contribution ($9,133,875)
($12,008,719)
Tax Increment Value (699,728) (734.714)
Net Taxable Valuation $50,011,497 $45,437,044
City Tax Capacity Rates ,15856 .180842
Tax Capacity Rate Increase 14.0%
There are two factors which are causing the rather large increase
in the City's projected tax capacity rate. First, the City's gross
tax capacity has actually declined because of the classification
rate changes in spite of continued growth. Second, the City's
fiscal disparities contribution has increased by 31% from
$9, 133,875 to $12,008,719. The dollar distribution of fiscal
disparities back to the City has declined by $24,792 from $885,588
to $860,796. The HACA distribution used in the comparison has also
been reduced by $35,616. The City's net levy to be raised locally
has increased by $286,908 while the net taxable valuation has been
reduced by $4 ,574 ,453.
As we have feared for some time, fiscal disparities is causing a
tremendous impact on the City's valuation and resulting tax
capacity rate. We have been cushioned from the full impact because
of the tremendous population growth, however with the growth
slowing the distribution compared to the contribution, will become
less and less. The following table illustrates the recent trend
for taxes payable by year.
Total Contribution Distribution Distribution
Tex Capacity Valuation Valuation Dollars
1989 $54,415,088 $ 7,141,148 $ 4,198,423 $ 668,203
1990 49,881,109 7,940,885 4,934,734 803,039
1991 59,845,100 9,133,875 4,989,228 885,588
1992 58,180,477 12,008,719 5,428,836 860,796
SUMMARY
There are a number of policy issues related to the 1992 general
operating budget. The City of Eagan has taken great pride in
limiting its service delivery to the very basic and expected
municipal services. The growth in general fund budgets have been
driven by legislative mandates, such as comparable worth, and
growth of the community. As stated previously, the delivery of
services is labor-intensive and as the system expands due to new
growth, so do the number of employees to provide the new expanded
service needs. The comparable worth legislation has cost the City
considerable dollars, a decision the City took seriously and
complied with the intent of the legislation. Comparable worth has
P 9 P
increased morale and stabilized the work force, however, with 950+
applications for an Assistant Utility Billing Clerk, it is apparent
that the results of the legislation have placed some positions in
the public sector at a very competitive level in the marketplace.
Additional budget adjustments will continue to impact the type and
quality of services the community has enjoyed the past several
years. Without future flexibility to increase revenues from
property tax or a reduction in the quantity of existing municipal
services, the quality of service will diminish.
/S/ Thomas L. Hedges
City Administrator
TLH/vmd
/S
92REVSUM GENERAL FUND
COMPARATIVE SUMMARY OF REVENUES
Original Adjusted
Actual Actual Budget Budget Estimate
Description 1989 1990 1991 1991 1992
General Property Taxes $ 6,309,872 $ 7,512,716 S 8,131,810 $ 7,838,620 $ 8,620,310
Licenses 69,564 77,255 75,020 75,020 84,550
Permits 1,127,208 837,512 753,120 753,120 599,000
Intergovermental Revenue 1,237,400 209,291 208,800 208,800 212,060
Charges for Services 628,179 628,245 603,400 703,400 622,820
Recreation Charges 147,707 179,329 149,550 176,950 213,070
Fines & Forfeits 203,147 223,424 240,000 240,000 216,000
Other Revenue 238,960 216,674 154,100 161,610 248,120
Program Revenues 780,180 733,979 735,910 735,910 772,050
Transfers 51,679 66,939 57,450 99,310 76,660
TOTAL GENERAL FUND $10,793,896 $10,685,364 $11,109,160 $10,992,740 $11,664,640
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DEPARTMENT SUMMARIES
Enclosed are budget worksheets for each department. The following
is a summary of each departmental budget as presented for
consideration in 1992.
MAYOR & COUNCIL
Specific changes for the Mayor and Council budget appropriations
are health insurance costs and general liability/professional
insurance coverage. A small increase is proposed to cover actual
expenses for personal auto.
ADMINISTRATION
The administration budget includes many expenditures that are of a
support nature to the entire local government operation. All
organization memberships, ie: LMC, AMM, MLC and many others,
personnel services, communication and recycling, economic
development, newsletter preparation and distribution and commission
activities, such as solid waste, airport and economic development,
are budgeted under Administration.
Significant deletions from this budget from 1991 include the
deletion of $10, 000 allocated to airport consultants utilized
during the Eagan/Mendota Heights corridor negotiations. In
addition, the City's legal consultant for personnel has been
deleted from the administration budget and reallocated to the legal
department budget to maintain consistency in the City financial
coding standards.
In addition to specific deletions, discussion has been held with
respect to consideration of a number of items that could not be
incorporated into the budget to maintain the 4% growth adjustment.
These are specifically in the areas of economic development and
professional development, such as the National Development Council
Training Program, MN Ind. Development Assoc. and other related
professional development opportunities.
The City Council has expressed a desire to enhance communications
with the community, however, budgetary restrictions have curtailed
any effort to create a position exclusively for that purpose. A
concept to expand the responsibilities of the Recycling Coordinator
by including communications was given consideration. The consensus
of the departments heads was to not proceed with this position in
1992 due to the severe restriction all departments are facing with
their operating budgets. This position would not increase the
general fund budget allocation from 1991, however, the perception
of changing a contractual position to a full-time position is a
concern to the management team. The method of funding this
position considers multiple revenue sources. In 1991, the City
budgeted a $17,300 contribution from the general fund to the
recycling fund to pay administrative contract costs and other costs
not covered by Dakota County solid waste funding. In 1992, the
� 3
County long term funding plan will permit payment for
administrative costs above and beyond those eligible in 1991. As
a consequence, the City can apply this allocation directly to this
position at no net additional cost to the general fund budget.
Staff would suggest that approximately equal amounts be allocated
from the County long term funding grant and cable television
franchise fees with the understanding that the position would be
divided roughly in thirds between newsletter and information
services, government access cable production and recycling
coordination. This position would replace the existing contract
recycling coordinator position and utilize that position's office
space, furnishings and equipment. Staff does view the cable
franchise fees as a long term funding source to support this
activity and the County's "long term funding" program was intended
to give cities an expectation of the level of county support for
local recycling programs in the long term. Therefore, the future
responsibility of the general fund would be for approximately 1/3
of the position into the foreseeable future. Even if the county
long term funding program is modified or reduced, City staff has
recently received results of its environmental awareness survey
which indicates that approximately 2/3 of those expressing an
opinion would support a small utility charge for recycling
administration and of those responding, the mean amount they would
be willing to pay is $4 per month. The City would be able to
replace all of the County contribution to this position at a rate
of $1 per household per year, substantially below the acceptable
threshold indicated by the survey. In sum, the justification for
this position is that it has been identified for the past three
years as a priority by the City Council, it can be fully funded
with no increase to the general fund budget in 1992 and it appears
that the funding sources from which the remainder of the position
would be paid are stable in the long term and in the case of one it
is replaceable based on a public opinion survey.
The position was reduced from a full-time status to contractual,
with an allocation of funding greater than the 1991 budget.
The following is a list of organizations the City belongs to,
includes the 1992 and 1991 dues.
L.M.C. (1991 - $9,720) $16,040
A.M.M. (1991 - $4,925 7,040
Metro East Coalition (1991 - $500) 500
NOISE (1991 - $1,200) 1,200
MLC (1991 - $12,500) 12,500
DATA PROCESSING
The Data Processing Department is staffed by one employee, handling
the communication and information for all departments, department
to department, department to resident, City to resident, City to
City and from department and City to the County and State. The
data processing system includes applications as simple as the dog
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license system, all the way to complex technology, including the
police dispatch and record system.
The City of Eagan is part of a consortium of 23 communities in the
metro area that subscribe to a not-for-profit computer service
entitled LOGIS. LOGIS provides state of the art hardware and
software applications for municipal governments and provides
suvscribership for various systems applications, including payroll,
utility billing, financial, fixed assets management, police
CAD/records, property data, special assessments, vehicle
maintenance, special services, network communication, timeshare,
systems development share, training, pump data storage, Parks &
Recreation, permits and inspections, fire system and police MBT
interface/CDS. The special services include dog license system,
customer response, clerks index system and a number of other
specialized programming charges. The LOGIS data processing budget
has established an increase of 8% in the 1991 budget that reflects
the increasing number of customers the City serves in addition to
the CDS fire system and estimated cost of the interface between the
City's mobile digital terminals and the local data base.
The data processing budget reflects an increase greater than the
goal of 4%, actually 27.2%. However, in order to operate police
MDT and fire systems, it is necessary to budget $65, 000 for those
applications in 1992. The budget for electronic data processing at
LOGIS was $191, 800 in 1991 and the increase to $256, 600 is the
result of these new applications. Without this new service, the
budget increase for data processing is 4 .3%.
The City has identified the Ultimap systems software as an
important and integral tool for the integration of automated
mapping and facilities management, geographic information and
computer-aided design in drafting for engineering applications.
Dakota County, the City of Burnsville and Dakota Electric
Association purchased the Ultimap systems software in 1989. Apple
Valley plans to purchase it in 1992. The City of Eagan had aerial
survey services for the south half of the City completed in the
spring of 1990. This was done in conjunction with Dakota County
and Dakota Electric Association. There are seven sections
remaining for aerial photography and stereo-digitizing which are
included in the 1992 budget in the public enterprise fund in the
amount of $12,250.
Ultimap is the type of system that can integrate all City
departments. The product from each department can be readily
available to all other departments. As an example, staff has the
capability to enter and retrieve all activities related to a
parcel, i.e. liquor license, dog license, police and fire
information, streets, utilities, assessing, parks, zoning, permits
and inspections. The ultimate goal for the City with the use of
Ultimap is to achieve better information faster creating greater
efficiency in City services.
025-
FINANCE/CITY CLERK
The Finance/City Clerk Department includes all accounts payable and
receivable, utility billing, payroll, licensing, purchasing,
investment of City funds, preparation and research of special
assessments, elections and all other City Clerk duties, including
official record keeping for the City.
The 1992 budget reflects an increase in several accounts that are
projected as a result of the presidential primary, an additional
election in 1992, and notification to all residents of the change
in precinct boundaries due to redistricting and the addition of six
to eight new precincts. Also included in the budget is an
appropriation for a special election for recreational facilities
including ice arena, outdoor swimming pool and additional athletic
field complex. There are four elections scheduled for 1991,
beginning with the presidential primary in April, followed by the
special municipal election and, during the fall, the primary and
general elections. The redistricting will be coordinated during
the late spring/summer months with an anticipated 35,000 mailings
to inform registered voters of the change in precinct boundaries,
the result of redistricting. The increase in elections has skewed
the appropriation for election judges, election supplies, capital
equipment to purchase additional voting machines and self-contained
voting units. The fifty (50) self-contained voting units, six (6)
Optech 11P voting machines and electronic cash register were
removed from the general fund and shown as a capital expense in the
equipment revolving fund. It will be necessary to decide on the
voting equipment by November to take advantage of pricing. There
are no other significant increases in the Finance/City Clerk
Department. Please note that election judges increased from $6, 550
in 1991 to a request of $30,940 in 1992. As opposed to hiring an
additional employee to handle the glut of election responsibilities
in 1992 , it is recommended that the City contract election judges
or residents to assist the City Clerk's office with the additional
workload during 1992. This amount under election judges also
reflects the increase in the number of elections.
Included in the Finance/City Clerk Department budget are most of
the maintenance contracts, office supplies, auditing services and
other related expenses for all City departments.
LEGAL
The proposed 1992 Legal budget remains constant at $370,000 for the
coming year. While it is difficult to estimate legal costs since
they are directly proportional to the caseload which may be
experienced in the coming year, it appears that 1991 legal expenses
will be at or below the projections used in the 1991 appropriation.
As a consequence, even if increased hourly fees are considered by
the City Council for the law firms in 1992, as proposed, it is
anticipated that it will not be necessary to exceed the existing
allocation.
0?6
Legal, for general fund purposes, includes the following budget
breakdown:
Civil $180, 000
Prosecution 165,000
Other 25 , 000
Total $370, 000
It should be noted that legal expenses for development and
improvement related projects do not appear in the general fund
since their costs are recovered from developers or improvement
project revenues. Those costs have reached approximately $15, 000
per month. Enclosed on pages ,3b through 8' for City
Council review is a copy of correspondence that was received from
both the firm of Grannis, Grannis, Hauge, Eide, Anderson & Keller
for performed prosecution services and Severson, Wilcox & Sheldon
who handled the civil and development/improvement work.
COMMUNITY DEVELOPMENT
The Protective Inspections Division of Community Development is
performing a minimum amount of inspections for enforcement of State
building code requirements. A full-time contractual inspector,
contractual mechanical inspector and other support personnel have
been reduced from the general fund operating budget during the past
year. As long as building activity has decreased in volume, the
department should be able to maintain a minimal level of service
throughout 1992 . There is a growing request and expectation by the
community to provide public health inspections. Requests are
increasing for inspections on existing housing relating to health
safety aspects, restaurants and other building related inspections.
With the reduction in contractual personnel, there are no positions
to retrain as part-time/full-time health/safety inspector. There
is also a request to convert the full-time 40 hour per week
contractual fire inspector and half-time contractual sign inspector
to full-time and part-time positions, respectively. A change from
the contractual designation to full-time and part-time is not
included in the draft general fund budget due to the severe budget
constraints.
There are no changes in personnel proposed for the Planning or
Government Buildings Divisions.
The professional services/general include a budget appropriation
request in the amount of $28, 000. Comprehensive planning items,
such as environmental reviews, Met Council processing and special
studies, i.e. Highway 149, Cedarvale and other related contracts,
are funded from this account. Due to budget restrictions, this
proposed expenditure is reduced to $25,000.
A request to expand the west parking lot at the municipal center
building was excluded and will be proposed for consideration with
the municipal/law enforcement building expansion program.
Remaining as capital outlay for 1992 is a lawn irrigation system to
be installed for portions of landscaped areas that would not be
C�
impacted by a new building expansion, garage door closer sensors,
steps, retaining wall and guardrail near generator, blinds for
lobby windows, new folding partitions for the conference rooms and
a transfer switch and outlet for the police radio system.
A $26,000 request for payment of special assessments on City
property was eliminated from this budget for consideration as a
special levy.
CABLE TV
The 1992 budget proposal for the Burnsville/Eagan Cable
Communications Commission is divided into a general budget and
local programming budget. The general budget is used to support
the general administration of the Cable Commission. It also
provides the Cities with the staffing necessary to monitor the
franchise and the operations of the cable company. For purposes of
the general fund budget, the cable tv appropriation consists of two
components, one of which is accounted for within the City's general
fund and the second of which is the actual budget for the
Burnsville/Eagan Cable Communications Commission. The department
included within the City's general fund accounts for the salary of
the Cable Coordinator and other minor purchases made by the City
for the Commission. Those expenditures totaling $62, 500 are offset
by a revenue account and are reimbursed 100% by the Commission.
Also included in the revenue account is $3, 400 which again is a
payment by the Commission to the City of Eagan for cable-related
support services, such as accounting and clerical which are cost
accounted within other City departments. For the 1992 budget, the
transfer of franchise fees (dollar amount) from the City to the
Commission to finance 50% of its budget will be accounted for in a
special revenue fund and will have no impact on the City's general
fund budget.
POLICE
Due to a significant growth in the number of calls and the volume
and seriousness of the calls, an in depth staff analysis study was
proposed and completed during early 1991. The result of that study
made it clear that non-essential community service activities would
need a review by the City Council. As a result of that review,
certain services have been reduced or eliminated during calendar
1991 to enhance response and safety in providing essential police
services.
The challenge for the Police Department in preparation of the 1992
budget was to identify critical staff requirements while attempting
to hold the line on general operations. Adjustments to line-item
expenditures in the police budget are either inflationary or caused
by external influences such as the increased volume in the number
of calls, legislative mandates and the related. The Police
Department budget was presented with two philosophies in mind. The
first is that there will be no increase in personnel of any kind
and the second is personnel increases consisting of additional
023
funds for a dispatch position, one sergeant and four patrol
officers. As a result of the staff analysis presentation to the
City Council during May 1991, it was concluded that additional
personnel were necessary in order to provide essential police
service. As explained during the staff analysis in 1989, there
were 29 police officers, in uniform, which is the same number
allocated in 1991. During that same time frame, the department has
experienced an explosive increase in calls for service and without
additional patrol staff, the ability to provide basic law
enforcement services to the community will be diminished. The
request for four (4) patrol officers was reduced to two (2) patrol
officers, both beginning in January 1992.
Another area of importance is first line supervision. With the
number and the seriousness of calls officers answer, as well as
public complaints and labor issues that can arise, the police
budget is requesting one (1) additional uniformed sergeant to
enhance first line supervision. That position is included in the
draft 1992 budget.
Since 1982, the communications center/dispatch personnel has not
received any increased staff adjustments while the calls for
service have increase approximately 92%. The Police Department
suggested three (3) options in their budget proposal and are
recommending what is identified as the third available option.
This option eliminates the four existing part-time dispatch
positions and adds three full-time positions to the existing five
full-time positions. One or two of these new full-time positions
could be filled by utilizing job share personnel. It appears the
net equivalent staffing would be approximately one (1) position at
an annual cost of approximately $30, 000-$35,000.
In summary, police staffing is a high priority for the 1992 budget
and included as a recommendation in the draft 1992 budget are two
(2) patrol officers, one (1) uniformed sergeant and a
reorganization of part-time dispatch personnel creating the
equivalent of an additional dispatch position.
Other budgetary adjustments include an increase for motor fuel due
to volume, not cost. Since the City has switched to gasohol, the
cost per gallon has decreased to approximately $.95 per gallon.
There are several expenditures that are directly associated with
the proposed increase in personnel.
Additional costs for implementing the Mobile Digital Terminal
program includes State charges for the MDT/BCA hook-up totaling
$3,840, and for patrol units, approximately $1,600 for
teleprocessing equipment for police support. The equipment is
extremely efficient and effective for police work, however, a
commitment to the MDT is incurring new expenditures to the Police
Department/general fund.
There are no new programs/services to be offered by the Police
Department and the total services and other charges, as well as
C72 ?
parts and supplies, increases are small and represent a small
inflationary adjustment.
Capital outlay consists of the following:
Commitment to the outdoor shooting range $25, 000
Office furnishings and equipment 5, 300
Other equipment 30, 000
Other equipment includes a menu of capital needs ranging from
Motorola portable rapid charger (to recharge portable batteries) ,
pistols, four MDT 870 's and other specialized equipment.
FIRE
The personal services show a reduction of approximately $53, 000 in
salaries and wages, a result of removing the full-time Fire Chief
position for further budget consideration. Several of the other
personal service expenses relate to the Fire Chief position.
Another reduction proposed for 1992 is an appropriation in the
amount of $12 , 000 for contractual services provided by the St. Paul
Fire Department to handle potential hazardous materials spills.
The City of Burnsville is also considering the same reduction for
1992 . The cities in Dakota County began a training program during
1991 to prepare firefighters for a step 1 haz mat status, which
allows communities to contain the hazardous spill until a company
certified in haz mat clean-up is notified. This expense will be
billed back to the company responsible for the spill. The
Minnesota Legislature is considering legislation to address
hazardous materials spills state-wide.
Included in the fire budget are new appropriations for requiring
psychological profiles on all new recruits, respiratory/lung
testing for volunteers, Hepatitis B vaccinations, an OSHA
requirement, and physical fitness testing for the volunteers.
Also, additional funding was appropriated for CPR instruction, a
program that reaches out to both the residential and corporate
community.
The Fire Department continues its commitment to fire prevention and
is requesting an expanded appropriation for new videotapes,
pamphlets and fire hats in order to meet the growing requests for
station tours and educational training within elementary schools.
The clothing and personal equipment is in need of replacement and
a substantial increase is proposed to meet that objective.
PUBLIC WORKS/ENGINEERING
The Public Works Engineering Division is experiencing increased
public service calls from the public, review of new projects,
coordination of as-built systems, analyzing maintenance programs
for streets and public utility operations and the ability to
produce revenue by preparing plans and specifications and
ce rdiriating public improvement projects on behalf of the City.
There is a request to expand hours for seasonal engineering aides
of which approximately 50% of their time is reimbursed through
revenue generating work.
One additional expense in the amount of $900 was mandated by MnDOT
requiring that all cities interconnect the computer system to the
Municipal State Aid System for transfer of information. The City
Administrator has reduced that amount from the general fund and is
recommending an appropriation in the same amount from the street
construction fund since all municipal state aid revenues and
expenditures are transactions of the major street account.
STREETS & HIGHWAYS
There are no requests for additional personnel for calendar year
1992 although maintenance responsibilities continue to increase as
the City adds infrastructure. Through increased efficiencies,
seasonal personnel and contractual services, the Director of Public
Works is hopeful a constant level of service can be maintained
during 1992 without requesting additional full-time personnel.
Contractual arrangements will be made for snowplowing districts
and, as stated, six (6) seasonal street maintenance employees
equivalent to 1.9 full-time positions are again proposed under
personal services for 1992. Historically, these positions have
been concentrated during the summer peak construction season.
Several significant adjustments are worth noting beginning with
mobile equipment repair and parts, a budget proposal of $48, 500.
An increase of $8, 500 includes small equipment parts, field
equipment, tires and equipment operation replacement parts, i.e.
sweeper brooms and parts are $6,000. Approximately $4,500 of the
$8,500 increase is recommended to be financed by a transfer from
the storm water utility fund for maintenance of the street sweeper
resulting from erosion control clean-up.
There is a decrease of $2, 100 for motor fuel which is a direct
result of the conversion to ethanol fuel.
A significant portion of the Street Department budget is street
repair supplies, snow removal and ice control supplies and signs
and striping material. Due to snow removal and ice control
supplies on hand, a review of the historical actual expenses on
street repair supplies and evaluation of signs and striping
material, there is an actual budget reduction for these Street
Department accounts for 1992 . Maintenance efficiencies are a
3/
credit for the ability to provide service to additional
infrastructure with a constant budget.
A major recommendation to the general fund budget is a transfer of
expenditures from the street fund for electricity that includes
both intersection streetlighting and signal lights to the public
enterprise fund. The total budget request for 1992, including both
streetlights and signal lights, is $66,860. Many cities, like
Eagan, bill residential streetlighting as a user charge on the
utility bills. In addition to that charge, other communities have
included intersection streetlighting and signal lights as an
additional charge on the utility bill. The 1991 budget transferred
the electricity cost for lift stations that are a direct expense to
the water quality program to the public enterprise fund and are now
included as a part of the storm drainage user charge. For purposes
of the 1992 street budget, the $66,860 in streetlights and signal
lights has been transferred on the City Administrator's
recommendation to the public enterprise fund subject to a public
policy discussion and acceptance by the City Council. If these
costs are to remain as a general fund expenditure, it will be
necessa ry
to increase the proposed d 1992 expenditures by a similar
amount.
A decrease of $3 , 000 under street repair is a direct result of the
City's five year capital improvement program overlaying various
streets in need of maintenance.
The contractual snow and ice control account has increased $3, 000
as a result of expanding the contractual snow and ice control
services from one to two routes. Also, sealcoating remains in the
budget at a reduced sum. Historically, approximately $150, 000 has
been allocated for the City's ongoing sealcoating program with 50%
($75, 000) being financed by the major street fund and a like amount
from the general fund budget. However, due to previous year's
fiscal constraints, this budget allocation has been reduced with
the sealcoating needs being deferred to later years. The 1992
sealcoating needs have increased $37,200 to $187, 200. However,
with this year's budget request remaining the same as 1991, the
major street fund allocation will have to increase to $137,200.
In addition to the energy cost for streetlighting, the capital cost
for six new intersection streetlights totalling $12,000 has also
been transferred to the public enterprise fund. Any user charge
would include a yearly allocation for installation of new
streetlights in addition to the energy cost. Also, mobile
equipment, including a 10, 000 lb. trailer and one plow and wing
totalling $21, 500, has been reduced and will be included as
proposed capital in the equipment revolving fund.
3ON
CENTRAL SERVICES MAINTENANCE
The Central Services Maintenance Division is responsible for
buildings and grounds of the Public Works Maintenance Facility and
overall maintenance of all City vehicles. There are no additional
personal service requests in this division.
An increase of $5, 000 is recommended for the solid waste removal
account based on historical records and greater emphasis being
placed on community-wide clean-up programs. Unfortunately, a
variety of items are disposed of in City boulevards and ditches
that are picked up by the Public Works Maintenance crews and the
cost for disposal due to the emphasis on recycling is escalated.
In addition, many items are considered hazardous waste material
which results in greater cost to the City.
PARKS & RECREATION
New parks were added during 1990-1991 fulfilling objectives of the
Park Master Plan. Included were Captain Dodd, Downey and Wescott
Station Parks. These parks require mowing, fertilizing, trash
pick-up, playground inspection, etc. In addition, there will be an
easing of the tight athletic field situation for baseball, softball
and soccer in 1992 with the probable use of Eagan High School and
Dakota Hills Middle School fields and facilities. The unfortunate
news is that the department will have to maintain these facilities
in order for them to be used by the community. Clearly, with the
same maintenance crews projected for 1992 , coupled with more
parkland and additional athletic field maintenance, there will be
a reduction in the delivery of services if existing facilities are
not maintained to the standards the community has enjoyed in the
past. To respect budget constraints, there are no new personnel
requested.
The department is requesting $226, 000 for salary and wages for
seasonal and temporary employees in 1992. On the surface, this is
an increase of approximately $7,000 over the 1991 budget, but in
actuality, it is a reduction from 1991. During 1991, the
department changed the method in which Tiny Tots and youth program
leaders are compensated. Until 1991, these positions were
considered contractual services, however to comply with a new
legislative mandate, it is now necessary to compensate these
positions as seasonal and temporary employees. Therefore, a
transfer of some $20,000 from contractual services to temporary/
part-time salaries was noted in 1991 and included in the 1992
budget. Given this transfer, the department is actually reducing
its temporary and seasonal salaries by approximately $13, 000 over
1991 levels. This reduction is the result of the elimination of
park & recreation interns and the park planning aide. An offset to
this reduction are increases in wages and salaries for seasonal and
temporary employees. A consideration for potential reduction
involves the boulevard mowing program. This program involves two
staff personnel to devote their entire summer to mowing the City's
boulevards. The boulevards are mowed on a cycle that would have
33
them cut once every two weeks or approximately every other week.
The schedule keeps one crew (two staff) doing nothing but boulevard
mowing from early June to mid September. Prior to and after that
time, mowing becomes less frequent. The elimination of the
boulevard program could result in a savings of nearly $5,000 in
part-time salaries. Offsetting this saving, however, is the
unsightliness of long grass on many City boulevards entering and
leaving the community. Since so many of these boulevards are at
major intersections, some mowing would still occur to ensure proper
vehicle sight lines as a matter of public safety.
The following is a discussion of certain expenditures that are
considered significant increases, significant being greater than
inflation. An increase of $2, 100 is proposed in building
operations and cleaning supplies due to the high impact usage in
the athletic complexes and community parks. The user rate is
significantly higher than previous years and expenditures are
running well ahead of expectation due to additional supply items
being necessary to maintain park facilities. Recreation equipment
and supplies is increased as a line item in the budget proposal due
again to the significant increase and expansion of adult soccer
programs and to the revenue generated by programs for sport camps.
This year's baseball camp, for example, proved to be very
successful and the department expects a significant increase in the
numbers next year. The City Administrator has reduced the amount
requested by the Recreation Department which will impact the level
of service desired by users of community-wide facilities.
Most of the other costs under parts and supplies relate directly to
maintenance of parkland, including park and play area supplies,
turf maintenance and landscape supplies. Growth in development of
the community has added various neighborhood parks that require
playground facilities and other installation, as well as turf
maintenance.
Accounts within services and other charges include a number of
increases for such items as athletic teams sanction fees and
sporting event officials which are directly offset by like
revenues. Electricity, waste removal and other related expenses
are increased again due to increased usage of the parks, in
addition to several new parklands. The Parks & Recreation
Department is recommending an increase in revenues from $153, 050
budgeted in 1991 to $205, 575 in 1992. This compares to proposed
expenditures for the recreation program totalling approximately
$238,435.
To illustrate the level of cost reduction the Parks & Recreation
Department is considering, the department will no longer be
offering the winter seasonal staff a $.50 per hour "incentive" used
to ensure full season employment. Also, temperature settings will
be lower in the shelter buildings and tighter standards for
overtime call-outs will be implemented.
3171
The City Administrator's budget has reduced traditional levels of
spending, including the reduction in sealcoating of City trailways
which is projected at $60,000, budgeted by staff at $45, 000 and
reduced to $40, 000 in the City Administrator's budget. There are
other similar reductions that will have the immediate effect of
reducing the level of expenditures, however, prolong certain
improvements to future years.
TREE CONSERVATION
The Director of Parks & Recreation is requesting consideration to
upgrade the forester position to a professional level, first-line
supervisor. This position is equivalent to Park Foreman, Jim
McGuffee. The basis for the recommendation is the content
responsibility of the position which has dramatically changed since
the position was initially created. In the late 1970 's to early
1980 's, the primary responsibility for the tree forestry position
was really the City tree inspector who was to detect and eradicate
dutch elm disease. Today, the City forester is responsible for the
care of nearly 4 , 000 trees within the park systeir and on other
public properties. In addition, the City maintains a nursery at
Blackhawk and Patrick Egan Parks while carrying out an aggressive
forestation program in City parks and public properties. During
1991, the tree conservation program will include the planting of
400-600 trees at the public works garage, Carlson Lake, Slater
Acres and numerous other locations. While dutch elm and oak wilt
have diminished significantly, the City continues to receive calls
pertaining to tree disease that affect other species, including
birch bore, cedar apple rust and numerous diseases that affect
trees. This position is also responsible for supervision of
seasonal employees, averaging from 2 to 5, depending upon the time
of the year, significant public contact, program planning (as it
relates to cultural treatments for the City's trees) , in
coordination with the schools, etc. for the annual Arbor Day
program. If acceptable by the City Council, this position would be
evaluated as a part of the salary compensation program.
The 1992 budget continues to include funding for acquisition of
bare root stock for placement within the Patrick Egan nursery and
also replacement of dead or dying trees in local parks, fire
stations and for the enhancement of other public facilities. The
merchandise for resale program held in conjunction with the
department's Arbor Day activity has been an excellent community
service and is included in the 1992 operating budget.
The budget essentially reflects no change from 1991 with the
exception of a re-evaluation of the City forester position.
SEVERSON,WILCOX& SHELDON, P.A.
A PROFESSIONAL ASSOCIATION
ATTORNEYS AT LAW
LARRY S.SEVERSON* KENNETH R.HALL
JAMES F.SHELDON 600 MIDWAY NATIONAL BANK BUILDING "'SCOTT D.JOHNSTON
J. PATRICK WILCOX" LOREN M.SOLFEST
MICHAEL G. DOUGHERTY 7300 WEST 147TH STREET CHRISTINE M. SCOTILLO
MICHAEL E. MOLENDA•' APPLE VALLEY, MINNESOTA 55124 ANNETTE M. MARGARIT
(612) 432-3136 DANIEL M. SHERIDAN
TELEFAX NUMBER 432-3780 SHARON K.HILLS
ALSO LICENSED IN IOWA
OF COUNSEL'
ALSO LICENSED IN WISCONSIN
...ALSO LICENSED IN NEBRASKA JOHN E VUKELICH
July 16, 1991
Tom Hedges
Administrator
City of Eagan
3830 Pilot Knob Road
P.O. Box 21199
Eagan, Minnesota 55121
Re: Requested Rate for Attorneys' Fees 1992
Dear Tom:
I am confirming our telephone conversation of July 15, 1991, together
V with my prior conversations with you and Jon Hohenstein, separately,
on this matter.
We are requesting an increase in attorneys' fees for the calendar
year 1992 as shown on the graph below. The current rates were
established in 1988.
1988 Rates:
Development Work - $120. 00/hour
General Legal Work - $ 80. 00/hour
Paralegal Rate - $ 35. 00/hour
1992 Proposal:
Development Work - $135.00/hour
General Legal Work - $ 85.00/hour
Paralegal Rate - $ 40.00/hour
The work that we do for Independent School District No. 196 is done
at a general legal rate of $95.00 an hour, together with a paralegal
rate of $40. 00 an hour. This rate has been effective since July of
1991.
Page Two
July 16, 1991
Tom Hedges
Our rate for 1991 at the City of Apple Valley is: $90. 00 an hour for
general legal work; $75. 00 an hour for criminal prosecutions and
$25 . :0 an hour for paralegal rates.
We have proposed a fee schedule for Apple Valley for the calendar
year 1992 for general legal work at $90. 00/hour; criminal prosecution
at $80. 00/hour and paralegal work at $40. 00.
I hope that this will assist you in your budgeting. The proposed
increase in fees is modest when viewed over the three and one-half
year period from initial establishment of fees.
If you have any questions, please feel free to contact me.
Very truly yours,
SEVERSON, WILCOX & SHELDON, P.A.
r
Jame Sheldon
JFS/t
37
GRANNIS, GRANNIS, HAUGE,
EIDE, ANDERSON ( KELLER, P.A.
Attorneys and Counselors at Lau
200 Town Centre Professional Bldg.
PAUL H HAUGE 1260 Yankee Doodle Road MICHAEL J MAYER
VANCE 5 GFANN',S JP' Eagan, Minnesota DEBRA E SCHMIDT
KEVIN W EIDE 55121-2201 BARRY L WITTENKELLER
DAVID G KELLER Tel: (612)456-9000 NGA T NGUYEN
WARD R ANDERSON VANCE B GRANNIS.SR
HENRY E MUELLER- Of Counsel
'Also aomitiec to prac•cE in W,scons:n fax (E12■454-4232
Also aom rtec is prac!ue r nl,no s July 22, 19 91
Mr. Thomas Hedges
City Administrator
City of Eagan
3830 Pilot Knob Road
Eagan, MN 55121
RE: 1992 Prosecution Fees
Dear Mr. Hedges:
You have asked our office to estimate our fees for prosecution
work for the calendar year 1992 . I have reviewed our recent charges
and find that we are charging at the rate of $80 per hour and have
been averaging approximately $11, 000 per month, including charges for
attorneys, paralegals and expenses incurred in our work for the City.
Y
For calendar year 1992 , our office would propose an hourly rate
of $83 for attorneys time, we would continue to bill at the rate of
$34 per hour for paralegal time and continue our current policy with
respect to expenses. Based on this and the continuing increase in
prosecution services required by the City, we would estimate a
monthly charge of approximately $12 , 000 to $12 ,500 per month in 1992 .
Very truly yours,
GRANNIS, GRANNIS, HAUGE, EIDE,
ANDERSON & KELLER, P.A.
K vin W. Eide
KWE/lmd
3 g
92BUDEXP GENERAL FUND
COMPARATIVE SUMMARY OF EXPENDITURES
Actual Actual Budget Dept Request Admn Request
1989 1990 1991 1992 1992
GENERAL GO ERWHEWI
01 Mayor & Council S 51,482 $ 63,157 S 75,180 $ 77,170 S 76,990
02 Administration 401,864 411,388 460,580 483,840 450,050
03 Data Processing 325,182 263,708 282,570 383,180 359,710
05 Finance/City Clerk 642,279 623,430 710,850 768,160 768,160
06 Legal 404,369 365,138 370,000 370,000 370,000
07 Community Development 1,484,178 1,103,562 1,309,230 1,346,690 1,294,980
10 Cable TV 48,741 46,572 54,360 62,500 62,500
S 3,358,095 $ 2,876,955 S 3,262,770 S 3,491,540 $ 3,382,390
PUBLIC SAFETY
11 Police $ 3,048,351 $ 2,973,835 S 3,507,160 $ 4,014,870 S 3,913,860
12 Fire 713,608 630,193 736,385 721,390 704,870
S 3,761,959 S 3,604,028 $ 4,243,545 S 4,736,260 S 4,618,730
PUBLIC WORKS
21 Public Works Engineering S 701,583 S 655,333 S 700,690 S 744,400 S 737,620
22 Streets & Highways 956,619 775,002 863,590 924,850 819,350
24 Central Services Maintenance 324,965 285,599 330,450 346,150 343,750
$ 1,983,167 $ 1,715,934 S 1,894,730 $ 2,015,400 $ 1,900,720
PARKS & RECREATION
31 Parks & Recreation $ 1,409,005 $ 1,336,151 S 1,571,780 S 1,667,310 S 1,646,940
32 Forestry 88,359 96,951 104,280 118,460 115,860
S 1,497,364 $ 1,433,102 S 1,676,060 S 1,785,770 S 1,762,800
OTHER
41 Contingency - - S 32,055 S 0 S -
S - $ - S 32,055 $ 0 S -
TOTAL GENERAL FUND EXPENDITURES $10,600,585 S 9,630,019 $11,109,160 $12,028,970 $11,664,640
3 ?
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