07/15/1997 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
July 15, 1997
5:00 P.M.
Municipal Center Lunchroom
I, ROLL CALL & ADOPTION OF AGENDA
II. VISITORS TO BE HEARD
III. REVIEW PROPOSALS TO PERFORM
MUNICIPAL CENTER SITE MASTER PLAN STUDY
IV. UPDATE 1998 GENERAL FUND OPERATING BUDGET
V. EXECUTIVE SESSION
VI. OTHER BUSINESS
VIL ADJOURNMENT
MEMO
City of eagan
TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: JULY 11, 1997
SUBJECT: SPECIAL CITY COUNCIL MEETING/JULY 15,1997
A Special City Council meeting was scheduled for the purpose of revie« ing an additional
proposal. submitted by Ingram & Voss. to perform a municipal center site master plan study.
Also included for consideration at the Special City Council meeting is an update of the 1998
General Fund Operating Budget and an executive session to discuss the Country Joe
litigation.
Review Proposals to Perform Municipal Center Site Master Plan Studl
At a Special City Council workshop held on Tuesday, July 1, the Council reviewed a draft
"Scope of Services" for preparing a comprehensive site master plan for the Municipal
Center Campus. In addition to the program elements prepared by the Director of Parks &
Recreation, a detailed scope of services and fee range submitted by Brauer & Associates was
also given consideration.
There was a consensus by the City Council that the high priority program elements should
include a second ice sheet, a swimming pool, an amphitheater and parking and access. The
low priorities are extension of parkway to the southeast and police expansion. There was
also a consensus that the scope of services identified by Brauer & Associates was
comprehensive, specifically Section 1. Direction was given to staff to contact Greg Ingram,
Ingram & Voss, and ask for a second proposal to be submitted by the July 15 meeting. The
proposal we receive from Greg Ingram will be submitted as an additional item for Council
review on Monday, July 14, as a part of the Administrative packet.
CITY COUNCIL DIRECTION: To provide direction to staff regarding: 1) a desired
scope of services and 2) selection of a firm to work with the City Council and staff to
develop a Master Plan for the Municipal Center Campus site. (Council action to select a
firm can be placed on a regular City Council agenda as early as the July 15 meeting.)
Update 1998 General Fund Operating Budget
Enclosed on pages 3 through - is a memo providing a status report on the impact of
levy limits on the ability to raise revenues through property tax in 1998 and the expected
timeline for budget review. The City Administrator is reviewing each Department Head
budget and will provide a few general comments on the status of departmental requests for
1998.
CITY COUNCIL DIRECTION: There is no specific action or direction required by the
City Council at this time. As always. Council input in response to the memo and comments
will be helpful as the City Administrator continues the preparation of the 1998 General Fund
Operating Budget.
SPECIAL NOTE: Recognizing that the City Council discussed the scope of services at the
July l work session and the primary purpose for scheduling this item on the agenda this
Tuesday is to receive a final direction to be placed for action on a regular Council meeting,
possibly the July 15 meeting. Also, the 1998 General Fund Operating Budget item is
scheduled as an update regarding the progress to date and a timeline for additional budget
review in July/August, a portion of the Special City Council meeting was set aside for an
executive session to discuss the status of the Country Joe litigation. It is anticipated that
approximately 45 minutes or less will be adequate for the first two items with the remaining
portion of the meeting to be spent with the attorneys in executive session.
Executive Session
An executive session is scheduled to review the status and recent developments in the
Country Joe lawsuit matter. John Baker and Cliff Greene will be present along with the City
Attorney to review the status of this litigation. If time permits. the City Attorney will
provide a brief update on other pending litigation.
Other Business
There are no items anticipated at this time.
/S/ Thomas L. Hedges
City Administrator
city of eagan
TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: July 11, 1997
SUBJECT: 1998 OPERATING BUDGET
This memo is written to provide the City Council with the following:
1. Update on the budget process
2. Preliminary projection of the impact of levy limits
MEMO
The City Administrator will use the City Council feedback as a basis for preparation of
the recommended preliminary 1998 operating budget.
Update on on Bud etin Process
City staff have been proceeding with the development of the 1998 budget based on the
following calendar:
April 29, 1997
April 29 - June 6, 1997
June 6 - .July 11, 1997
July 14, 1997
Preliminary budget distributions for City
Administrator and all Department Heads
Department Heads prepare department
budgets
Finance Department completes revenue
estimates
City Administrator and Finance Director
confer with departments
City Administrator budget is drafted for
presentation to the City Council
City Council begins consideration of budget
Since the Department of Revenue will not be providing the official levy limit calculation
until August 1, 1997, the later steps in the process have not been completed and a City
Administrator's recommended budget will be presented to the City Council in August.
IN
The following dates are best guess, since they are also to be provided by the Department
of Revenue at a later date:
September 15, 1997 City must certify a proposed levy to the
County Auditor; the City must also "adopt"
a proposed budget
September 15. 1997 City must select dates for initial hearing and
a date for a continuation hearing (in case it
is needed)
November 10 - November 24, 1997
November 29 - December 20, 1997
December 26, 1997
The County Treasurer -Auditor prepares and
delivers parcel specific notices of proposed
property taxes
Truth -in -taxation public hearings are held
Final property tax levies are certified to the
County
With the exception of Police, each Department was requested to prepare four budget
versions as follows:
1. A budget without specific limitations on departmental increases, with a practical
approach. This was not intended to be a wish list.
2. A budget with a 5% increase over the 1997 appropriation. This was not necessary
if number 1 was less than 5%.
3. A budget with a 0% increase (no change from 1997).
4. (All Except Police) A budget with a 5% reduction form the 1997 appropriation.
1f
Leri• Limit Impact
The following calculations and estimates are preliminary and exclude the effect of the
local transit levy.
1998 Lew Limit Calculations
1997 Certified Levy
$13,378,170
HAC A
1,641,042
Local Performance Aid
63,900
Sub -Total
$15,083,112
Debt Service Special Levies
(1.417.8001
'Total (1998 Base)
$13,665,312
Estimated Implicit Price Deflator X 1.0224
$13,971,415
Estimated Household Grouvth Factor X 1.0188
$14,234,078
Less:
1998 HACA ($1.641,042)
1998 Local Performance Aid (71,870)
1998 Levy Limit 112.521,166
This compares to $11,960,370 ($13.378,170 - 1,417,800) for taxes payable
in 1997.
This calculation generates the following new money from the property taxes, excluding
the debt service requirements:
Implicit Price Deflator $306,103
Growth Factor 262,663
Total $568,766
Reduction for Additional LPA (7.970)
Net Increase from Taxes $560.796
The following table compares the use of the non -debt service levy for payable 1997 to
payable 1998 if the parameters are not changed:
Use
Pavable 1997
Pavable 1998
Chane
General Fund
$10,908,261
$11,524,218
$615,957
Equipment Revolving
383,200
300,000Q)
(83,200)
Major Street Construction
668,909
69481`1'
28,039
Total
$11,960.370
$12,521.166
$560,796
'Reduces the current levy back to original schedule.
`)Based on 5% of $12,521,166 plus 1997 debt service levy.
s
The potential impact on the 1998 General Fund Budget assuming no change. 3% and 5%
changes to other revenues (excluding taxes. HACA and LPA) are as follows:
1998 Budget
The dollar amount and budget increases for the last three years which were fairly
conservative in terms of programs and services have been as follows:
Years
No Change
3% Increase
5% Increase
1997 Budget
Other
Other
Other
Taxes $10,908,300
$11,524.218
$11,524,218
$11,524.218
HACA & LPA 1,704,900
1,712.912
1,712,912
1,712,912
Other 3,338,900
3.338.900
3,439.06 3�
3.505.845
Total $15,952,100
116,576,030
$16.676.197
$16,7419.75
Dollar Increase from Base
$623,930
$724,097
$790,875
% Increase from Base
3.9%
4.5%
5.0%
The dollar amount and budget increases for the last three years which were fairly
conservative in terms of programs and services have been as follows:
Years
Dollars
Percent
1996 to 1997
$870.200
5.8%
1995 to 1996
$816.500
5.7%
1994 to 1995
$763,800
5.7%
The 1997 budget includes $11,307,800 for personal services, excluding volunteer
firefighter compensation and pension allocations. A 3% increase to that base requires a
budget increase of $339.234 with no new personnel and no consideration of other costs.
Summary
It appears that nearly all tax levy flexibility has been taken from the City Council with the
imposition of the levy limits. It will be necessary to levy the maximum available with the
possibility of shifting more allocation to the General Fund and away from the Equipment
Revolving Fund and/or the Major Street Fund.
It will be very challenging and perhaps impossible to balance the budget while
maintaining current programs and services without some sort of shift taking place and/or
using less conservative revenue estimates. The City Administrator is proposing to
balance the budget with a combination of an increase to the other revenue section and a
small change in the allocation of the levy.
The proposed meeting schedule for July and August distributed in the July/August
Meeting Schedule City Administrator memo includes additional budget consideration on
the following dates:
July 29 Budget update similar to the information
provided with this memo,
August 19 Budget update similar to July 15 and July 29
presentations.
50P
August 26 Complete budget presentation as the . only
agenda item on special meeting agenda.
In addition, regular meeting and special meeting agendas from September through
December will contain budget consideration as required by law and/or desired by the City
Council.
Given the changes to the tax class rates, it is too early to attempt to determine the impact
on individual property taxpayers. Without the class rate changes, the levy limits would
probably have caused a reduction in the tax capacity rate because of growth in the total
tax capacity.
City Administrator
TLH/vmd