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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 $11,664,640 000 C> 0000000000 0 00000000 w 00 .-1 .-d Deno en 0in0 en C0000in 0 F-e 4 'Dcn en 4rnv--4 O rnrnN en 0000 00N to rn rn e'1 r- O to N. .--1 N er1 .-4 4 O to - N CO N Cr, 1-.1 C r-+ rn N en .--1 00 to N. 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W W A A H 0 , 1 (NI en 4Lr .D0oo10cn .D O co 0 O .-4 .-I .--I ,--I ,--1 .-1 ,-•1 r-1 HI N N N CD N 0 Z 01 O` 01 a, 0, a, O. 01 01 01 a, 01 O` 01 Q r1 en r1 cn m r1 r•1 m m r1 m cn en a02 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 c2 1.-/ 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 ? 2 O a O a O O O O ti O O fV p O p P a0 M Q < i CD O— Y U CO .— M .t d H W N •• .t N r CC V I- O a O O O O O O O O CU I- Ull O M p. 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