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07/23/2008 - City Council SpecialSPECIAL CITY COUNCIL MEETING TUESDAY JULY 22, 2008 5:30 P.M. EAGAN ROOM-EAGAN MUNICIPAL CENTER AGENDA 1. ROLL CALL AND ADOPTION OF THE AGENDA II. PARKS AND RECREATION CAPITAL IMPROVEMENT / PROGRAM (CIP) y _) C / III. 2009 PROPOSED CIVIC ARENA OPERATING BUDGET AND MEZZANINE IMPROVEMENT FUNDING IV. 2009 GENERAL FUND OPERATING BUDGET DISCUSSION V. OTHER BUSINESS VI. VISITORS TO BE HEARD VII. ADJOURNMENT Agenda Memo July 22, 2008 City Council Workshop H. 2009-2013 PARKS AND RECREATION CIP ACTION TO BE CONSIDERED: To provide feedback and direction to the APrC regarding the 2009-2013 capital improvement projects outlined in this report. FACTS: • One of the primary responsibilities of the APrC is the annual preparation and updating of the Departmental Capital Improvement Plan which serves as a blueprint and planning guide for park projects. CIP projects must be either park development or improvement but cannot be maintenance based. • Funding for the CIP comes from the Park Site Fund (PSF), which is primarily money collected from developments at the time of platting in lieu of land dedication. • The CIP proposal presented by the APrC to the City Council encompasses 2009 through 2013. Historically after the review process the Council approves the first year (2009) as a budget and the next years as a general plan subject to change as part of future reviews. • The CIP has generally been driven by the projected ongoing balance of the Park Site Fund. To provide a better view of the future, recent versions of the CIP have included all potential projects though they may not be funded for years to come. There has also been considerable discussion regarding the identification of alternative funding sources for the CIP. • A number of projects in the proposed 2009 CIP represent the continuation of ongoing programs and initiatives specific to replacement and upgrade. Examples include the installation of playgrounds, park signage replacement and the upgrading of Northview Fields 1-4 lighting. Other improvement projects such as those at Patrick Eagan Park are tied to the implementation of Master Plans. • The CIP also includes two line item allocations that are renewed on an annual basis as needed. These are the land acquisition "opportunity" fund which would be used to help acquire priority open space should it become available and the "small projects" fund which is used to complete smaller, unanticipated, capital projects or to help leverage additional financial assistance from an association or alternative funding source. The projection included on page is a conservative projection that does not include any large land acquisitions. • The projected revenue is based upon much smaller developments that split an existing lot into 2-5 new lots rather than developments of entire new neighborhoods. ATTACHMENTS: • List of 2009 projects, Page • List of 2009-2013 projects, Pages 4 • Recap of Park Site Fund, Page ' 2009 CIP project summary • Patrick Eagan Park; Phase III of the implementation of the new Master Plan, primary focus most likely to be trail improvement and interpretative signage. • Playground Replacements (4);Continuation of the ongoing rotational replacement program. Candidate sites include Rahn, Northview, Wescott Station and Quarry Parks. • Signage System Upgrade; Third phase of the installation of new entrance signage, continuing primarily with neighborhood parks. • Northview Park Fields 1-4; Field lighting improvements. • Small Projects; Funding for opportunities and need. • Acquisition; Funding for acquisition opportunities. PARKS AND RECREATION DEPARTMENT POTENTIAL CAPITAL IMPROVEMENT PROJECTS 2009 - 2013 # POTENTIAL FUNDING PROJECT ESTIMATED INCLUSION SOURCES ESTIMATED LOCATION DESCRIPTION COST CRITERIA PSF and/or OTHER BALANCE Jan. $1,707,000 2009 Northview Park Field Lighting Improvements $195,000 PSF Fields 1-4 Proposed Playground Installation PSF • Rahn $120,000 • Northview 4 @ Average of • Wescott Station $30,000 • Quarry TBD Park Signage System, Phase III $40,000 PSF City Wide Patrick Eagan Park Master Plan $10,000 PSF Phase III • Interpretative Signage • Trail Improvements Numerous Small Projects $30,000 PSF TBD Acquisition Opportunities ($650,000) PSF Sub-Total $395,000 12/09 $1,312,000 ($1,045,000 w/acq) (w/o Acq.) G:ABudget\Park & Rec Potential Dev\Park and Rec Potential Projects BY YEAR 2009-2013 - word.doc 7/3/2008 Rev. 7/14/2008 PARKS AND RECREATION DEPARTMENT POTENTIAL CAPITAL IMPROVEMENT PROJECTS 2009 - 2013 # LOCATION PROJECT DESCRIPTION ESTIMATED COST INCLUSION CRITERIA POTENTIAL FUNDING SOURCES PSF and/or OTHER ESTIMATED BALANCE Jan. $1,412,000 (Incl. Est. Rev. of $100,000) 2010 Patrick Eagan Park Phase IV Improvements • Restroom/Service Building • Forest Renovation $200,000 PSF Captain Dodd Park Sun Shelter $30,000 PSF Central Park Festival Grounds Irrigation $75,000 PSF TBD Playground Installation $120,000 (3 $40,000) PSF Numerous Small Projects $30,000 PSF Sub-Total $455,000 12/10 $957,000 (w/o Acq.) G:\Budget\Park & Rec Potential Dev\Park and Rec Potential Projects BY YEAR 2009-2013 - word.doc 7/3/2008 Rev. 7/14/2008 PARKS AND RECREATION DEPARTMENT POTENTIAL CAPITAL IMPROVEMENT PROJECTS 2009 - 2013 POTENTIAL # LOCATION PROJECT ESTIMATED INCLUSION FUNDING ESTIMATED DESCRIPTION COST CRITERIA SOURCES BALANCE PSF and/or OTHER Jan. $1,057,000 Incl. Est. Rev. of $100,000) 2011 Patrick Eagan Park Phase V $120,000 PSF Improvements • Removal of Deerwood House • Retrofit Deerwood Culdesac • Trails & Signage PSF Northview Park Tennis Court Development $125,000 Shared w/196 Northview Park Tennis Court Lighting $75,000 PSF TBD Playground Installation $120,000 3 @ $40,000 PSF Numerous Small Projects $35,000 PSF Sub-Total - $475,000 Dec. 2011 $582,000 H F-7 (w/o Ac q.) - G:\Budget\Park & Rec Potential Dev\Park and Rec Potential Projects BY YEAR 2009-2013 - word.doc 7/3/2008 Rev. 7/14/2008 PARKS AND RECREATION DEPARTMENT POTENTIAL CAPITAL IMPROVEMENT PROJECTS 2009 - 2013 # LOCATION PROJECT DESCRIPTION ESTIMATED COST INCLUSION CRITERIA POTENTIAL FUNDING SOURCES PSF and/or OTHER ESTIMATED BALANCE Jan. $682,000 Incl. Est. Rev. of $100,000) 2012 Holz Farm Park Park Development Phase II of Master Plan $350,000 PSF TBD Playground Installation $120,000 3 @ $40,000 PSF Numerous Small Projects $35,000 PSF L Sub-Total $505,000 Dec. 2012 $177,000 (w/o Ac q.) G:ABudget\Park & Rec Potential Dev\Park and Rec Potential Projects BY YEAR 2009-2013 - word.doc 7/3/2008 Rev. 7/14/2008 PARKS AND RECREATION DEPARTMENT POTENTIAL CAPITAL IMPROVEMENT PROJECTS 2009 - 2013 # LOCATION PROJECT DESCRIPTION ESTIMATED COST INCLUSION CRITERIA POTENTIAL FUNDING SOURCES PSF and/or OTHER ESTIMATED BALANCE Jan. $277,000 (Incl. Est. Rev. of $100,000) 2013 Central Park Ellipse Service Building/Shelter $182,000 TBD Playground Installation $80,000 (2 $40,000) Numerous Small Projects $15,000 Sub-Total $277,000 Dec. 2013 $-0- (w/o Ac q.) G:\Budget\Park & Rec Potential Dev\Park and Rec Potential Projects BY YEAR 2009-2013 - word.doc 7/3/2008 Rev. 7/14/2008 PARK SITE FUND SUMMARY As of July 1, 2008 (Unaudited) Balance as of January 1, 2008 = Less project payments to date = Est Balance as of July 1, 2008 Less Outstanding and pending expenditures 2007 Patrick Eagan Phase I 2008 Holz Playground Ohmann Playground Rink upgrades Central Park exercise equipment/seating Patrick Eagan Ph II Thresher Completion DHMS Field Irrig Partnership Carlson Fishing Pier Small Projects $ 2,214,750 (-) $65,000 $ 2,149,775 @ $125,000 (pending bid opening) @ $40,000 (installation begun) @ $40,000 (ordered) @ $25,000 @ $5,000 (equipment installed) @ $145,000 (in progress) @ $65,000 (95 % complete) @ $45,000 (1/3 share w/196/EAA) @ $30,000 (ordered) @ $22,000 (pending) Est. Total of pending expenditures = Est Year End balance less revenues = Est Year End Revenues = EST 12/31/08 BALANCE _ H/ Docs / PARK SITE FUND summary 2008 (-) $ 542,000 $ 1,607,000 (+) $ 100,000 $ 1,707,000 Agenda Information Memo July 22, 2008, Special Eagan City Council Meeting III. 2009 PROPOSED CIVIC ARENA OPERATING BUDGET AND MEZZANINE IMPROVEMENT FUNDING ACTION TO BE CONSIDERED: • To provide direction to staff on the 2009 Civic Arena Operating Budget including ice rental rates and the purchase of 2009 capital outlay items, and to direct staff that these items be placed on the August 5, 2008 City Council Meeting Consent Agenda for formal ratification. • To provide direction to staff on the funding source for the Civic Arena mezzanine improvements, and to direct staff that it be placed on the August 5, 2008 City Council Meeting Consent Agenda for formal ratification. FACTS: • The Civic Arena Budget is being presented in advance of the other Enterprise Funds due to the fact that the Civic Arena operations are run on a seasonal basis starting in September as opposed to the calendar year. This is consistent with the practice established over the past few years. • The budget as presented is balanced, provides for the appropriate level of renewal and replacement funds, includes an allocation for capital equipment, and annual debt service. It is presented in a fashion consistent with the revised format for all other budgets and provides for continued successful arena operations continuing to build on the successes of the enterprise. • Campus Facilities Manager Vaughan, Superintendent of Operations Mesko, City Administrator Hedges, Director of Parks & Recreation Seydell Johnson, Director of Administrative Services VanOverbeke, and Chief Financial Officer Pepper have reviewed the proposed rates, revenue estimates, and expenditure requests included in this budget. • The proposed budget is based on ice rental rates being increased slightly for the 2008-2009 season. • The budget is supported entirely by user fees with no tax dollars used as a revenue source. • Since the Civic Arena operates on a season that overlaps two fiscal years, it is important to begin the 2009 capital outlay improvements in 2008 in advance of the new ice rental season. • The proposed capital outlay improvements are presented as part of the proposed 2009 Civic Arena operating budget. • At the June 3, 2008 Regular City Council Meeting the bid was awarded for build out of the Civic Arena mezzanine. The total estimated cost is estimated to be $275,000. • The following funding options to pay for the improvements were listed in the background material; however, the final source was not determined. o Allocation of all or part of the total cost from the Community Investment Fund with no pay back. o Allocation of all or part of the total cost from the Community Investment Fund with a defined payback o Allocation of all or part of the total cost from the Civic Arena's retained earnings. ATTACHMENTS: Enclosed on pages /?; through -l 11 is a copy of the proposed Civic Arena 2009 budget including rate information, revenue and expense information, capital outlay information, and all related material. 2009 Civic Arena Budget Traditionally, the Civic Arena Budget has been acted upon in advance of the other Enterprise Funds and the General Operating Budgets due to the fact that the Civic Arena operations are run on a seasonal basis starting in September as opposed to the calendar year. To provide for proper communication with the various organizations and individuals that are users of the facility, it would be helpful to have rates, revenues and expenditures all formally set by City Council action at the August 5, 2008 regular meeting. A rate change is being recommended and the rates would officially be effective September 1, 2008. The budget including the revenues, expenditures, and capital improvements covers the calendar year 2009. Approval to begin purchasing 2009 capital items during calendar year 2008 will also scheduled for consideration in formal action at the August 5 meeting. Campus Facilities Manager Vaughan, Superintendent of Operations Mesko, City Administrator Hedges, Director of Parks & Recreation Seydell Johnson, Director of Administrative Services VanOverbeke, and Chief Financial Officer Pepper have reviewed the proposed rates, revenue estimates, and expenditure requests included in this budget. The budget as presented is balanced, provides for the appropriate level of renewal and replacement funds, includes an allocation for capital equipment, and annual debt service. Hourly ice time rental rates are proposed to change; however, Eagan's rates remain competitive while slightly below the average of surrounding ice arenas. The proposed hourly rates continue to aggressively price non-prime time ice rental. The strategy, which has been very successful over the years, is to maximize rental hours and therefore total revenue, even though the hourly rate is lower than nearly all of the competing arenas. The proposed 2009 budget is presented in the revised format instituted in 2007 and is consistent with the presentation of all other budgets and is enclosed on pages /7 through Revenues The estimated 2009 revenues are projected to increase to $930,000 compared to the 2008 budget of $912,300. The budget as presented includes a $5 per hour increase to the ice time rental rates. The total increase in revenue results primarily from the increased hourly rates. There is no significant increase in the total projected rental hours. Hourly Rates The following is a summary of hourly ice rental rates for the surrounding commi inities/arenas proposea for the zuuti-zuua skating season. Proposed 2008/09 Season Rates For Surrounding Communities ciryiArena Apple Valley Burnsville Farmington Inver Grove Heights Lakeville Richfield Rosemount South St. Paul St.Thomas Ice Arena Hourly Ice Rental Rates Prime Non-Prime Time Time $ 175 $ 115 190 140 185 170 185 130 200 145 170 140 175 125 180 145 200 175 Average Prime Time Rate Excluding High ($200) and Low ($170): $182 Average Non-Prime Time Rate Excluding High ($175) and Low ($115): $142 The following is a comparison of Eagan's 2007-2008 rates to the rates proposed for the 2008-2009 season. Eagan Hourly Ice Rental Rates Season Approved Proposed User/Use 2007-2008 2008-2009 Eagan Association $165 $170 Eastview Association 167 170 High School 175 175 Non-Prime 112 112 Turf 75 75 D floor 40 40 Operating Expenditures On a comparative basis the proposed 2009 budget of $930,000 is increased by 2.60% from 2008 budget of $906,600. Personnel There are no changes to the personnel section of the Civic Arena budget and it continues to reflect the organizational changes made in recent years. Those changes have resulted in increased efficiency and cost control. As a complimentary facility, the personnel section for Cascade Bay is also presented with this proposed budget to allow the City Council to see the total staffing for the campus recreational facilities. In addition to the regular employees included in the tables, the proposed 2009 budget includes $156,400 in wages for seasonal employees compared to $160,000 in the 2008 budget. The slight reduction reflects a more accurate allocation of seasonal staff based on a full year of operation under the new organizational model. The above referenced changes result in the personal services budget increasing by $10,100 or 2.4%. Other Operating Various line items reflect relatively minor changes to incorporate current costs and operational changes. Capital Expenditures Consistent with the practice implemented with the 2004 budget, the 2009 expenditure line items show an account for a capital outlay allocation with an appropriation of $10,000. Civic Arena capital needs can best be addressed by setting aside some money from each year's operations through the operating budget process and combining that with the use of available retained earnings. These resources provide for capital needs to renew and enhance the facility beyond what is available through the renewal and replacement account. This process clearly designates a Civic Arena use for retained earnings while preventing spikes in annual operating budgets caused by fluctuating capital needs. Enclosed on page is a list of proposed 2009 capital items for consideration. There are no renewal and replacement items included which would be funded by the annual allocation set aside from operations for that purpose. In addition, there are no replacement items proposed in the 2009 budget. The third section includes new items that either enhances operations at the arena with the goal of increasing utilization of the facility thereby increasing revenues or by maximizing other revenue opportunities. The proposed 2009 budget includes one new item, that being the acquisition of lights. The third section of the list is funded through the annual capital allocation from the operating budget ($10,000 per year allocation) and from retained earnings as available and appropriate. Enclosed on page is a worksheet showing the infrastructure included in the renewal and replacement funding process. The worksheet shows the cost being recovered and the useful life of each capital item. At the time of final 2009 budget approval staff is recommending that the City Council approve the purchase of the 2009 capital items in the 2008 fiscal year so they are in place for the 2008-2009 operational season. /?f Other Considerations West Arena Floor As noted in the Highlights & Changes section of the budget material, consideration should be given to replacement of the floor of the west arena during the 2008/2009 season. The estimated cost of the replacement is approximately $500,000. This replacement cost is not accounted for in the Renewal and Replacement account therefore it results in a significant current funding obligation. Funding along with the time schedule will be important to minimize the impact on operations and consequently the revenue stream. Mezzanine Improvements At the June 3, 2008 Regular City Council Meeting the bid was awarded for build out of the Civic Arena mezzanine. The total estimated cost is expected to be approximately $275,000. The project is being funded 100% by the City. Outside participation results from user fees and enhances operational revenues. The following funding options to pay for the improvements were listed in the background material; however, the final source was not determined. o Allocation of all or part of the total cost from the Community Investment Fund with no pay back. o Allocation of all or part of the total cost from the Community Investment Fund with a defined payback. o Allocation of all or part of the total cost from the Civic Arena's retained earnings. The 2008 year end retained earnings for the Civic Arena is projected to be as follows: Renewal and Replacement Account $417,266 Unreserved 239,654 Total $656,920 The 2009 operating budget includes an estimate of $15,000 in incremental revenue derived from rental of the new mezzanine space. The space is projected to generate approximately $21,500 annually in future years. Cash Position Enclosed on page , is a copy of an analysis showing the cash position of the Civic Arena Fund from inception through the 2008 budget. In summary, the analysis shows $417,266 in the officially designated renewal and replacement account and $239,654 of retained earnings over the 14-year period. On a cash basis, results from operations vary annually depending primarily on capital acquisitions. The analysis demonstrates that the facility is on firm financial footing and should be able to sustain similar operations into the future absent any significant change to market forces. Summary There is a great deal of material presented with this budget proposal to assist the City Council in its consideration of the 2009 budget. The 2009 budget as presented is balanced, provides for the appropriate level of renewal and replacement funds, includes an allocation for capital equipment as well as an allocation for some capital improvements, and the annual installment for the scheduled debt service. Although increased, hourly ice time rental rates remain competitive while slightly below the average of surrounding ice arenas. Staff continues to efficiently operate the arenas and to aggressively market the use of the facility to increase revenues and is making every effort to operate a successful business venture per City Council direction. While ice time rental is the basic business of the facility, auxiliary uses account for approximately 20% ($184,700) of the estimated revenues for 2009 and clearly demonstrate, management's and staffs commitment to customer service and to expanding revenue opportunities. The following are some general trends being observed at the Eagan facility as well as in the arena industry. • Skating has continued to grow both at the skate school level, figure skating club and hockey programs. Staff continues to research new opportunities to deliver service and develop fresh ideas/concepts to keep user groups interested in the facility. • Ideas and suggestions are regularly requested for enhancements to the building. The most recent trend is for off-ice "training" areas within arenas. • There are a few new facilities currently being constructed or discussions of potential projects that could have some impact to overall users in the off- season. During the prime season (October until March), the main hours of rental ice at the Civic Arena continue to be filled. The cash position is an indicator of previous success as a business. However, the competition from surrounding rinks and customer expectations demonstrate the need to remain efficient and to remain a preferred vendor for the services provided through the arena operations. This proposed operating budget and the proposed capital improvements assist in meeting that objective. /l? W" City of Eapll 2009 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation PURPOSE & DESCRIPTION The purpose of the Civic Arena is to: • Provide a positive environment for residents and guests of all ages to gather. • Encourage and help build a sense of community through a wide range of recreational and social opportunities. • Provide a high level of service, accessibility and professionalism to expand revenue options to ensure the viability of this resource to the community. The Civic Arena is responsible for the following functions: • Provide a wide variety of ice and dry floor related recreational opportunities for the public to enjoy. • Capture a high level of revenue to offset operational costs, debt repayment and expand the retained earnings capacity to accommodate future growth and expansion. • Protect the city's community investment by maintaining the integrity and value of the building and its amenities. • Create a welcoming atmosphere and solicit input from users to best determine how to meet existing needs and identify future growth opportunities. • On-going analysis of existing operation and research to find ways to expand the opportunities offered year round in order to maximize the capital investment. PERFORMANCE INDICATORS 2006 2007 2008 2009 Description Actual Actual Estimate Target Participants in skate school program 1,800 1,790 1,800 1750 Summer hockey rental hours (June 15-Aug 31) 1,157 859 1,200 1000 Adult league team registrations 42 42 40 40 Dry floor events 8 8 10 5 Prime ice rental hours (Oct 15 - March 15) 3,233 3,204 3,100 3100 /7 W-\ City of Eagan 2009 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation Expenditures by Category Personal Services 46.96% Parts & Sunnlies Services & Other Charges 25.49% Reserve for Merchandise for Resale 3.37% HIGHLIGHTS & CHANGES Overview: The Civic Arena is proposing very few changes from the 2008 budget. Budget expenses are increased by $28,400, or 3.1 %, due primarily to the proposed inflationary increases for supplies and services specifically related to petroleum based products. Budget revenue projections for 2009 are increased by $22,700, or 2.5% to balance the budget at $935,000. R & R N Debt Service 4.92% 13.21% The Civic Arena continues to take an aggressive approach to reserving space in the building whether it's ice or dry floor use. The enhancements made to the mezzanine in 2008 will allow for expanded rental opportunities that have not been available in this building. The opportunity also exists to capture catering revenue for groups wishing to host an event in this space. The use by figure skaters is expected to grow as the synchronized skating program and Ice Crystals club expands. In general the 2009 budget is projected to maintain the high level of service to renters and guests in the building while closely monitoring the expenses to ensure the long term viability of this facility. Highlight/Change 1: The prime ice time rental rate is proposed to increase $5 per hour to remain within the market range of surrounding communities. Financial Impact: Revenue increase of approximately$10,000 Service Level Impact: The Civic Arena remains highly competitive in the ice rental market compared to surrounding communities and continues to maintain the highest level of service while preserving a strategic place in the market. Highlight/Change 2: A fee schedule is proposed for the rental of the enclosed mezzanine. Financial Impact: A conservative revenue stream has been proposed for 2009 for the first year that the space will be rentable. More accurate projections will follow once the market for the space has been tested. Service Level Impact: This enhancement provides the opportunity for dry land training requested by the EHA, offers additional overflow programming space and private rental opportunities. Highlight/Change 3: The long term plan to replace the floor of the west arena will need to be addressed during 2008/2009. Financial Impact: The estimated cost for this capital replacement is in the range of $500,000. Careful evaluation will need to be done to determine the timing and payment for this project. Service Level Impact: Very careful planning will need to occur to ensure the work is scheduled to have the least impact to the revenue stream. City of Eapa 2009 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation EXPENDITURE SUMMARY Actual Actual Budget Budget Expenditure 2006 2007 2008 2009 Personal Services $ 389,761 $ 382,983 $ 429,000 $ 439,100 Parts and Supplies 49,541 60,222 59,800 56,600 Services and Other Charges 212,428 210,366 215,600 238,300 Capital Outlay 3,738 8,731 - - Merchandise for Resale 38,511 34,118 29,000 31,500 Debt Service 124,799 126,452 127,200 123,500 Reserve for Renewal & Replacement 36,000 - 46,000 46,000 Total $ 854,778 $ 822,872 $ 906,600 $ 935,000 POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Civic Arena Manager 0 0 0 0 - Campus Facilities Manager 0.67 0.67 0.67 0.67 1,394 Building Supervisor 0 0 0 0 - Skating School Coordinator 1 1 1 1 2,080 Maintenance Worker (2 @ .5) 1 1 0 0 - CF Maintenance Coordinator (.5) 0 0 0.5 0.5 1,040 Custodian 0 0 0.5 0.5 1,040 Operations/Maintenance Worker 1 0.67 0.00 0 - MOD 0 0.00 0.67 0.67 1,394 Clerical Technician 0.2 0.2 0.2 0.2 416 Administrative Coordinator 0.33 0.33 0 0 - CF Operations Coordinator 0 0 0.33 0.33 686 Total 3.87 3.87 3.87 3.87 8,050 2009 WORK PLAN Activity Routine 1 Respond to public comments or requests via phone or in person 2 Daily maintenance of ice and cleaning of building 3 Manage the building infrastructure to ensure efficient, safe and clean environment 4 Develop promotional materials for facility 5 Recruit, hire, train and supervise temporary and part time employees 6 Provide work direction to ensure high level of customer service is maintained 7 Manage staff scheduling and training to meet the demands of the building 8 Provide support to the day-to-day concessions oeration 9 Establish and manage skate school program and auxilliary events 10 Provide input and directions pertaining to policies, budget and general operation of CA 11 Develop and manage capital improvements and long range planning 12 Develop and manage policies & procedures that best meet the needs of the community y C j 41111 City or Evan 2009 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation REVENUE SUMMARY Acct REVENUES 4304 OTHER REVENUE 4305 EQUIPMENT RENTAL 4310 PARK PROGRAM REVENUE 4311 PARK PROGRAM REVENUE NON-TAX 4312 CONCESSION SALES 4314 MERCHANDISE SALES 4320 MARKETING REVENUE 4322 VENDING (CITY OWNED) 4323 VENDING (VENDORS) 4324 ROOM RENTAL 4325 ROOM RENTAL NON-TAX 4326 FACILITY/ICE RENTAL 4327 FACILITY RENTAL NON-TAX 4328 CONTRACT REVENUE Actual Actual Budget Budget 2006 2007 2008 2009 $ - $ 12,293 $ - $ - 7,745 6,720 7,500 6,500 133,384 123,617 128,000 125,900 108,534 126,616 121,000 124,000 67,619 69,653 71,000 71,000 5,954 7,759 5,700 7,700 13,966 14,627 25,000 17,000 5,196 4,043 6,000 5,000 11,685 9,183 12,000 10,000 19 808.00 - - 40 90.00 - 15,000 156,142 135,293 138,100 134,000 424,970 462,750 398,000 418,400 - - - 500 TOTAL CIVIC ARENA REVENUES $ 935,253 $ 973,452 $ 912,300 $ 935,000 2.49% L City of Ea p ii 2009 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation LINE ITEM DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2006 2007 2008 2009 6110 SALARIES AND WAGES-REGULAR $ 166,819 $164,987 $187,300 $196,600 6112 OVERTIME--REGULAR 575 201 - 1,000 6130 SALARIES AND WAGES-TEMPORARY 150,306 145,188 160,000 156,400 6142 PERA-COORDINATED 14,260 13,980 12,200 13,300 6144 FICA 23,272 23,009 26,600 27,100 6151 HEALTH INSURANCE 26,737 28,422 35,700 37,100 6152 LIFE INSURANCE 313 337 - - 6154 DISABILITY - LONG TERM 515 612 - - 6155 WORKERS COMPENSATION 6,964 6,247 7,200 7,600 TOTAL PERSONAL SERVICES 389,761 382,983 429,000 439,100 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 728 463 1,000 800 6211 OFFICE PRINTED MATERIAUFORMS - - 100 100 6220 OPERATING SUPPLIES-GENERAL 20,935 21,809 20,000 20,000 6222 MEDICAURESCUE/SAFETY SUPPLIES 446 1,021 600 700 6223 BUILDING/CLEANING SUPPLIES 7,234 3,898 7,000 5,000 6224 CLOTHING/PERSONAL EQUIPMENT 3,155 736 3,000 3,000 6230 REPAIR/MAINTENANCE SUPP-GENL 12,413 21,055 18,000 16,000 6233 BUILDING REPAIR SUPPLIES 2,683 5,371 4,500 5,000 6235 FUEL, LUBRICANTS, ADDITIVES 24 - 100 100 6240 SMALL TOOLS - 736 400 400 6241 SHOP MATERIALS 22 600 100 500 6244 CHEMICALS & CHEMICAL PRODUCTS 1,901 4,533 5,000 5,000 TOTAL PARTS & SUPPLIES 49,541 60,222 59,800 56,600 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES-GENERAL - - 300 300 6314 AUDITING 700 800 400 800 6315 FINANCIAL NON-AUDIT - - 800 800 6327 SPORTING EVENT OFFICIALS 2,645 2,645 - - 6346 POSTAGE 207 311 1,200 500 6347 TELEPHONE SERVICE & LINE CHG 970 1,429 1,500 1,500 6348 MATRIX SERVICE & REPAIR - 147 500 500 6353 PERSONAL AUTO/PARKING 187 237 500 500 6355 CELLULAR TELEPHONE SERVICE (11) 143 600 600 6357 GENERAL ADVERTISING 9,207 3,969 8,000 8,000 6370 GENERAL PRINTING AND BINDING 1,052 1,463 1,700 1,600 6385 INSURANCE 11,000 6,100 12,000 6,300 6405 ELECTRICITY 73,926 69,060 70,000 75,000 6410 NATURAL GAS SERVICE 65,058 72,894 65,000 90,000 6457 MACHINERY AND EQUIPMENT 3,286 2,022 3,000 3,000 i"4 / z., 4'10?'City of Evan 2009 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation LINE ITEM DETAIL (CONT'D) 6475 MISCELLANEOUS 6476 CONFERENCES AND SCHOOLS 6477 LOCAL MEETING EXPENSES 6479 DUES AND SUBSCRIPTIONS 6480 LICENSES, PERMITS AND TAXES 6482 AWARDS, JUDGEMENTS, AND LOSSES 6487 VISA/MC BANK CHARGES 6535 OTHER CONTRACTUAL SERVICES 6539 WASTE REMOVAUSANITATION SERV 6569 MAINTENANCE CONTRACTS Actual Actual Budget Budget 2006 2007 2008 2009 $ 44 $ - $ 100 $ 100 3,803 1,099 4,100 3,300 49 245 200 300 1,003 991 800 1,700 286 310 400 400 - 727 - - 5,862 6,366 6,500 6,500 20,846 26,457 25,000 23,000 2,694 3,010 4,000 3,500 9,614 9,941 9,000 10,100 212,428 210,366 215,600 238,300 CAPITAL OUTLAY 6640 MACHINERY/ EQUIPMENT - 1,444 - - 6660 OFFICE FURNISHINGS & EQUIPMENT - 737 - - 6670 OTHER EQUIPMENT 3,738 6,550 - - CAPITAL OUTLAY 3,738 8,731 - - MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE 38,511 34,118 29,000 31,500 MERCHANDISE FOR RESALE 38,511 34,118 29,000 31,500 DEBT SERVICE 6491 INTEREST 64,368 61,021 57,200 53,500 PRINCIPAL 60,000 65,000 70,000 70,000 6492 PAYING AGENT/BOND DESTRCTN FEE 431 431 - - TOTAL DEBT SERVICE 124,799 126,452 127,200 123,500 CAPITAL EQUIPMENT ALLOCATION - - 10,000 10,000 RESERVE FOR RENEWAL & REPLACEMENT 36,000 - 36,000 36,000 36,000 - 46,000 46,000 TOTAL CIVIC ARENA $ 854,778 $ 822,872 $ 906,600 $ 935,000 3.13% 6488 DEPRECIATION & AMORTIZATION EXPENSE $ 197,054 $221,149 $ $ - 2009 Civic Arena Capital Improvements List Renewal and Replacement None Sub-total $ Replacement Items None Sub-total New Items Arena Lights 10,000 Sub-total 10,000 Total Capital Improvements $ 10,000 The Iignts will be funded by using the capital outlay allocation set up with the 2004 budget and being funded annually at $10,000. The cumulative balance in that account is carried forward as unrestricted cash for financial tracking purposes. 2009 Capital Improvements Descriptions New Items Arena Lights - Lights and spotlights are currently rented for the annual ice show at an approximate cost of $2,000 each year. Purchasing lights will not only benefit this growing annual event but will provide an enhanced experience for open skating, as well as providing opportunities for expanded programming. This investment in lights will begin to create a unique opportunity to grow interest and participation in open skating and continually better position the Civic Arena in the market place as a preferred venue. CIVIC ARENA EQUIPMENT REPLACEMENT CHARGES West Arena Useful life (yrs) Cost Annual Contribution Water heaters (2) 7 4,200 600 Water heater-concession 20 500 25 Resufacer 15 75,000 5,000 Resurfacer Batteries 5 5,000 1,000 Resurfacer Charger 5 2,500 500 Desicant wheel-dehumid 7 6,500 929 Compressors - 4 10 30,000 3,000 Circulation pumps/motors 10 7,500 750 Cooling tower 15 16,000 1,067 Dehumidifier 15 35,000 2,333 Room Furnaces (3) 10 9,600 960 Concession equip 7 7,000 1,000 Skate sharpener 7 7,000 1,000 Rental Skates 6 5,000 833 Rool, 25 1,00,000 4;000 Dashes Cjowcls 20 60,000 . 00() Total West 184 370,800 25,997 East Arena Water heaters (3) 7 6,300 900 Resurfacer 15 75,000 5,000 Resurfacer batteries 5 5,000 1,000 Resurfacer Charger 5 2,500 500 Desicant wheel-dehumid 7 6,500 929 Compressor (6) 10 36,000 3,600 Circulation pumps/motors 10 7,500 750 Cooling Tower 15 16,000 1,067 Dehumidifier 15 35,000 2,333 Room Furnaces (4) 10 12,800 1.280 Roof 25 ' 100,000 4,000 [usher Boards 20 60,800 " 000 Total East 144 362,600 24,359 GRAND TOTAL REPAIR AND REPLACEMENT Removed per City Co ncil 2002 budget Total set aside per year since 2002 733,400 50,355 (14,000) 36,355 7/18/2008 Eagan Civic Arena Single sheet of ice Two sheets of ice 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Budget) Cash revenues $ 132,924 $383,307 $421,465 $541,588 $612,600 $666,126 $712,429 $833,398 $745,737 $873,444 $866,365 $ 947,098 $ 1,026,062 $ 912,300 Cash expenses 134,477 313,787 302,531 373,083 439,474 521,210 564,762 550,667 580,459 690,009 664,965 694,661 695,923 733,400 Net cash avaialble from operations (1,553) 69,520 118,934 168,505 173,126 144,916 147,667 282,731 165,278 183,435 201,400 252,437 330,139 178,900 Less other cash outlays: Debt service principal/interest - - - - (167,648) (124,575) (127,460) (125,185) (127,979) (125,048) (127,142) (124,037) (125,757) (127,200) Capital expenditures (no set-aside) (11,295) (9,001) (10,107) (8,219) (93,436) (20,713) (4,788) (369) (44,553) (3,699) (19,735) (180,747) (10,000) Capital replacement set-aside (6,688) (26,750) (26,750) (30,000) (35,000) (32,400) (50,400) (33,100) (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) Avail cash from operat-not reserved (8,241) 31,475 83,183 128,398 (37,741) (105,495) (50,906) 119,658 930 (22,166) 34,559 72,665 (12,365) 5,700 Carryforward from prior year - (8,241) 23,234 106,417 234,815 197,074 91,579 40,673 160,331 161,261 139,095 173,654 246,319 233,954 Cum available cash-not reserved (8,241) 23,234 106,417 234,815 197,074 91,579 40,673 160,331 161,261 139,095 173,654 246,319 233,954 239,654 Adjustments to available cash - - - - - - 14,338 9,363 (8,035) (191) 39,041 (4,989) (71,668) - Total cash-not reserved (8,241) 23,234 106,417 234,815 197,074 91,579 55,011 169,694 153,226 138,904 212,695 241,330 162,286 239,654 Reserved cash balances: Capital replacement set-aside 6,688 33,438 60,188 90,188 114,857 150,979 207,994 229,580 268,764 280,403 304,828 340,460 388,425 417,266 Interest on cap repl funds - - - (241) 3,722 6,615 7,547 11,250 7,426 6,226 8,435 11,965 15,698 - Less: Cap replacemtfunds used - - - (10,090) - - (19,061) (8,066) (31,787) (17,801) (8,803) - (22,857) - Cash reserved for capital replacement 6,688 33,438 60,188 79,857 118,579 157,594 196,480 232,764 244,403 268,828 304,460 352,425 381,266 417,266 Total cash bal per financial statements (1,553) 56,672 166,605 314,672 315,653 249,173 251,491 402,458 397,629 407,732 517,155 593,755 543,552 656,920 Prime ice time hourly rate: $ 120 $ 125 $ 125 $ 130 $ 135 $ 135 $ 135 $ 140 $ 145 $ 150 $ 155 $ 155 $ 160 $ 165 Non-profits: $ 165 Eastview Athl Assn: 167 ISD 196 HS: 175 Agenda Information Memo July 22, 2008 Special City Council Meeting IV. 2009 GENERAL FUND OPERATING BUDGET DISCUSSION ACTION TO BE CONSIDERED: To provide direction to staff regarding preparation of the draft 2009 General Fund Budget for City Council consideration on August 26, 2008. FACTS: • It was the request of the City Council to have a preliminary "check in" of the proposed 2009 operating budget in July, prior to the Council's more detailed review of the complete, line item budgets at the August 26 City Council workshop. • Customarily, the budget team would receive proposed budgets by department directors, review the budgets with each director, and then fully scrutinize the proposed budget to make a recommendation to the Council in August. • As an intermediate step, per the Council's request, the budget team has attempted to provide information in the enclosed memo that will allow for the Council to review and discuss the recommendations, implications, and public policy considerations associated with achieving a status quo, 2%, or 0% budget scenario. • It would be beneficial to the budget team as they prepare for the August budget presentation if the Council could provide direction on the appropriate target for an increase to the 2009 General Fund Operating Budget. ATTACHMENTS: Enclosed on pages 7 through )is a memo for the Council's review and consideration regarding the proposed 209 General Fund Operating Budget. Also enclosed, on pages,' through 3 5 , is a memo proposing a salary adjustment for the City Council in 2009. This memo is included during this intermediate check-in point due the fact that the Council would need to modify the City Code in advance of the 2008 general election should a pay change be directed. ? ?s 411? City of Eap Is To: Honorable Mayor and City Councilmembers From: City Administrator Hedges Date: July 18, 2008 Subject: 2009 General Fund Budget Introduction • In working on the 2009 budget, staff has taken the City Council direction very seriously. The following information results from that dedicated effort and is presented accordingly. • While these budgeting efforts have demonstrated additional scrutiny and creativity given the current economy, it is important to note that creativity in providing services is a well established practice in Eagan. The results of those efforts are demonstrated by the following: o Low level of per capita expenditures - The City has consistently ranked lowest in per capita total expenditures for cities with 50,000+ population. o Low tax levy - The City's tax levy has consistently been near the lowest of similar metropolitan cities and well below the average. o Low user rates - The City's user rates are consistently at or below average for comparable cities. o Low employee per capita ratios - The City's auditors have noted annually that per capita employee numbers in Eagan are low compared to similar cities in Minnesota. • In general, this year's budget exercise has a slightly different format, but the expectations of staff to provide services at the lowest possible and practical costs are not new, while at the same time balancing short and long-term impacts. • These historical budgeting/service delivery factors result in high citizen satisfaction with City services, high bond ratings, and programs and services, such as the Pavement Management System and the Civic Arena operations, which are the envy of cities across the metropolitan area and the entire State. • Certain expenditure areas are especially problematic in this particular budget cycle and have dramatic impacts in maintaining a constant level of 41/ services as demonstrated by the following changes and increases, offset slightly by the reduction in election expenditures: Employee wages and benefits $ 954,600 DCC operating cost increase - post County subsidy 303,200 Fuel/Oil changes in rates 206,000 Fire Relief Association Pension 45,600 Electricity change in rates 33,400 Natural Gas change in rates 21,500 Fertilizer change in rates 19,500 Sub-total $ 1,583,800 Election costs in 2008 budget (67,000) Net 2009 Extraordinary Cost Increases $ 1,516,800 • These significant cost drivers totaling an increase of $1,516,800 (5.7% of the 2008 budget) combined with efforts to maintain a constant level of service result in significant challenges in trying to maintain a status quo budget incorporating only a modest overall increase. There is no practical mechanism to prevent reductions in these cost areas from translating directly to service delivery reductions. • Certain expenditure reductions or changes have revenue implications that, if implemented, put the overall budget in a worse position. • While every budgeting cycle brings unique circumstances to the process, historical General Budget Fund increases for the past four cycles are as follows: Year Increase 2005 5.4% 2006 4.6% 2007 6.0% 2008 4.9% Average 5.2% Budget Instructions and Budget Development • Per the City Council direction, Department Directors were instructed to prepare departmental budgets at various levels of expenditure change and they have diligently completed what they have been asked to do. • The Budget Team has met with Directors and Department Budget managers to discuss the budget proposals and to develop a complete understanding of the submittals. Budgets submitted by each Director consist of the following: 1. A status quo budget - A proposed 2009 budget that maintains existing service levels with no new employees and no new or expanded services, but does assume increased costs where applicable. Net extraordinary increases of $1,516,800 are added, line items scrutinized and squeezed, and the overall budget increases by $1,541,300, or 5.8% over 2008. 2. A 2% budget - A proposed 2009 budget that increases the 2008 budget by no more than 2% and therefore requires the absorption of increased costs within a 2% increase over 2008. Net extraordinary increases of $1,516,800 are added, line items scrutinized and squeezed, maintenance is postponed, services and training are reduced, and the overall budget increases by $395,400, or 1.5% over 2008, which is a reduction of $1,145,900 from the status quo budget. 3. A 0% budget - A proposed budget that is no higher than the approved 2008 budget therefore requiring reductions to absorb all inflationary cost increases. Net extraordinary increases of $1,516,800 are added, line items scrutinized and squeezed, maintenance is postponed, services and training are reduced, and the overall budget submitted reflects a 1.2% decrease from 2008, which is a reduction of $1,867,500 from the status quo budget. In certain cases where a Director is responsible for more than one department budget, the 2% and 0% budgets were met in aggregate over more than one department. Department Scenarios and Implications • The status quo budgets submitted by the Directors show a total increase of 5.8% ($1,541,300) over the 2008 operating budget. The Fire and Police budgets combined under "Public Safety" show an increase of 7.8% ($930,000) while all other departments show an increase of 4.1 % ($611,300), demonstrating the greater impact of the extraordinary cost drivers on those two departments. • This simple analysis illustrates the challenge of trying to move the status quo budget to a 2% increase and to a no increase (0%) with minimal impacts on public safety. • To move from status quo to 2% the following summary reductions are incorporated: o Personnel cost is reduced by $692,800 eliminating 8.5 FTEs. (7.0 FTEs are in Police; 1.5 are in other departments.) o Conferences and training is reduced by $88,000. o Memberships and subscriptions are reduced by $4,900. o Supplies are reduced by $70,900. o A combination of other services (e.g. consulting, service contracts, preventative maintenance, etc.) are reduced by $312,800. • To move from 2% to 0% the following additional summary reductions are incorporated: o Personnel cost is reduced by an additional $493,300 eliminating 6.9 FTEs. (2.5 FTEs are in Police; 4.4 are in other departments. Total of 15.4 FTEs and $1,186,800 from status quo.) o Conferences and training is reduced by an additional $27,200. (Total from status quo of $115,200.) o Supplies are further reduced by $16,700. (Total from status quo of $87,600.) o A combination of other services (e.g. consulting, service contracts, preventative maintenance, etc.) are further reduced by $184,400. (Total from status quo of $497,200.) • Pending additional prioritization efforts, the 0% is actually presented as a reduction of 1.2%. Approximately $326,200 could be added back into the budget to get back to 0%. • Details of proposed reductions from status quo are presented by department as an addendum to this memo, with service level impacts indentified as necessary. See pages A through . _':i Public expectations regarding service levels are somewhat unknown. There is little reason to assume that the public desires a level of service in 2009 that is different from what is being provided today. Consequently, will the public accept a reduced level of services in 2009 and into future? Budget reductions in one particular year that are imposed to meet overall spending goals without a relatively permanent change in service delivery expectations will be very difficult to make up in future years, since the effect will compound and future increases will be magnified. Certain budget reductions (e.g. delayed or forgone routine maintenance and preventative maintenance) will help meet spending goals short-term, but will have long-term implications to infrastructure maintenance and ultimately to the quality of life enjoyed by the community. Revenues • Staff has not completed a detailed revenue budget as they are awaiting further City Council direction on a more defined target after Council consideration of impacts. Preliminary work indicates that an increase in the General Fund budget can be supported through the tax levy with very modest impact on property owners and with some reallocation of the levy uses. The City will not receive an exact levy limit from the State until rather late in the budgeting process; however, staff is confident that through a combination of the capped levy and special levies, tax capacity exists to fund current service levels. Past State practices demonstrate that it is prudent to levy at the allowable maximum to avoid future penalizing restrictions. The potential impact to the City of the pending State budget deficit is unknown. Action to be Considered To provide direction to staff regarding preparation of the draft 2009 General Fund Budget for City Council consideration on August 26, 2008. Potential options include: 1. Direction to produce a modified status quo budget at an increase of perhaps around 4.0% to match the levy cap number imposed by the State. Through additional review and scrutiny, staff can cooperatively balance the competing department requests and services and achieve a balanced budget at that level. 2. If the City Council's desire is for a budget increase at less than a modified status quo, determine an acceptable level of increase and direct staff to reduce the budget and services in the areas as determined by the Council. Addendum to July 18, 2008 memo on 2009 General Fund Budget To get from Status Quo to 2% ... Mayor/Council - N/A - status quo version is less than 2% Administration - Eliminate Hist Soc intern, forcing Hist Soc to do its own doc imaging, registration of artifacts, coordinate artifact donation & virtual museum and other tasks - Eliminate NOISE subscription & membership IT City Clerk Finance Legal - Eliminate pager pay and related OT, forcing Police and ECC primarily to wait until regular office hours to resolve IT issues - Reduce printers and printer cartridges in hopes that staff will not print as much - Eliminate CLASS software purchases, which will hinder efficient Rec program registrations - Eliminate GIS expansion plans, preventing City departments from obtaining useful information that would enhance or make more efficient their operations - Eliminate surplus PC/printer recycling - Reduce IT staff training by 100% - Reduce clerical by.10 FTE, resulting in less imaging of City documents for records retention, and less elections help in even years. - Reduce conference/training by 77% - N/A - status quo version is less than 2% - N/A - status quo version is less than 2% To get from 2% to 0% ... - Reduce conference expense by 65% - Reduce training/conf expense by 75% - Reduce clerical FTE by .2, possibly resulting in work not being completed, and calls not res- ponded to, in a timely manner - Eliminate annual employee recognition/training event - Eliminate professional facilitator for Mayor/ Council goals setting retreat - Eliminate 24/7 telephone system support, putting after-hours operations (Police, ECC) at risk if telephone system goes down. - Eliminate contractual installations, forcing staff to absorb the work, likely resulting in service delays to other depts, causing inefficiency - Eliminate all new software purchases, again resulting in inefficient operations in other depts - Reduce clerical by addl .10, resulting in even less imaging and elections help - Reduce frequency of ordinance codification from twice/yr to once, resulting in public not having access online to current version of City Code - Eliminate all training - Reduce vacant (frozen) UB clerk from 1.0 FTE to .5, resulting in significant strain on resources during peak billing periods, which could mean increasing delays in response time to customer requests, and possibly delayed billings - Staff could make an effort to do its own research, which may lead to incorrect conclusions and/or open the City to liability risks, as well as putting additional strain on existing staff resources Planning/ - Eliminate professional consultant allotment, which - Eliminate planning intern, reducing ability to Econ Devel was in the past for Comp Guide plan and special implement our proactive property maintenance studies as directed by Council as they arise. program, and limit ability to support prospective - Reduce Econ Dev activity (mostly website ED programs or internal improvements communication and marketing) by 40% - Eliminate Econ Dev activity in full Addendum to July 18, 2008 memo on 2009 General Fund Budget Building Inspections To get from Status Quo to 2% ... - Eliminate .75 clerical, reducing service to walk-in & phone customers, and forcing inspectors to spend more time in the office performing clerical tasks, and therefore performing either fewer or less thorough inspections To get from 2% to 0% ... - Retain .75 clerical, and eliminate a FT inspector, essentially having the same effect, but probably to a greater degree, of fewer or less thorough inspections by the remaining inspectors Communications Human Resources Police - Reduce spring newsletter to annual report only, resulting in one fewer current events newsletters, but spring is the slowest news time of the year - Reduce conference/training by 81% - Reduce clerical from .25 to .10, requiring balance of HR staff to perform their own clerical duties, which will mean that some HR functions may no longer be performed - Reduce conferences/training by 27% - Reduce contracted printing for benefits brochures for employees - Eliminate 7 FTE positions (2 currently vacant): Rotating detective, causing delays in follow-up on criminal cases; DARE officer, resulting in suspension of DARE programs in elementary schools, and would eliminate $50,000 in DARE revenue Two traffic officers, reducing ability to respond to neighborhood traffic concerns Crime prevention specialist, resulting in the City suspending Natl Night Out, Neighborhood Watch, Citizens Academy, and Youth Safety Camp, all of which are coordinated by this person Two CSOs, who perform interoffice mail delivery make bank deposits, deliver Council packets, deliver legal documents to city atty and court, transport prisoners, shuttle vehicles for service, back up animal control, assist with traffic control at accident scenes, and respond to medical emergencies. If sworn staff is to fulfill these duties, there will be less time for proactive neighborhood and business patrol. - Reduce conference/training by 38% - Defer business survey to 2010 - Defer Eagan video remake - Reduce Granicus MediaVault, eliminating ability to view vidoes on website that are over a year old - Defer Showcase Eagan event - Defer capital equipment purchases to 2010 - Eliminate the remaining .10 clerical, causing even more HR functions to go uncompleted - Eliminate an additional 2.5 FTE positions: 1.5 clerical receptionists, reducing extended hrs to the public, mostly to accommodate those picking up pet animals, and delaying reports prepared for the courts or other admin purposes Crime-free multi-housing/public information officer, compromising the dept's ability to disseminate information quickly that could lead to arrests; this task is essential and would have to be absorbed by other patrol or admin staff Addendum to July 18, 2008 memo on 2009 General Fund Budget Fire To get from Status Quo to 2% ... - Eliminate 2009 recruiting class and related uniform expense, training, medical and psychological testing, resulting in a smaller paid-on-call force. - Eliminate City's contribution toward the annual awards/appreciation banquet - Reduce external FF training to only weekly, in- house training, eliminating attendance at State Sectional fire schools, EMS training, and Fire Instructors conferences, many of which classes are used as "train the trainer" and brought back home and taught - Reduce amount of fire protection activities performed at schools and businesses, and eliminate give-aways supplied to those attending - Eliminate preventive maintenance of fire stations, and delay equipment replacement, possibly leading to even greater repair expenses in future years - Delay replacement of self-containted breathing apparatus To get from 2% to 0% ... - Eliminate one of the following two positions: Fire Inspector, which would eliminate fire inspections on existing buildings, and limit the fire education the City offers the community Fire Marshal, which would require existing staff from Building Inspections to absorb fire investi- gation and review of proposed new construction, and require other Fire dept staff to absorb public education and training services Public Works/ Engineering Streets - Reduce temporary/seasonal help, who perform non-construction services that must be absorbed by existing staff, impacting their availability for customer service requests, construction mgmt, inspections services, and quality control/regulation enforcement. They also perform construction services that will have to be contracted out at about four times the rate we pay - Sidewalk/trail snow removal to be performed by in-house staff, resulting in significant delays of up to 72 hours on routine storms, and twice that on back-to-back storms - Eliminate contractual curb/sidewalk repair and perform in-house by less-skilled laborers - Eliminate out-of-state travel - Eliminate contractual snowplow turf repairs and weed spraying; in-house staff will perform as a low- priority task - Reduce contractual centerline striping, lane desig- nations, crosswalks and pavement edge striping, possibly affecting public safety - Eliminate temporary/seasonal help altogether, resulting in a net loss to the General Fund as a significant portion of their time is charged to assessable projects - Reduce overtime, much of which is billable - Reduce public notification mailing costs by 50%, resulting in less public awareness - Eliminate all training not required for certification - Eliminate professional services and support related to GIS software - Eliminate all sidewalk/trail snow removal services - Eliminate contractual snow removal for 3 mainline street plow routes and 1 cul-de-sac route, which will have to be plowed by staff, resulting in an estimated completion time increase of 2 hours or longer per event, and longer in heavier snowfalls - Reduce seasonal staff and related repairs materials costs, resulting in less pavement maintenance (i.e., cracksealing, patching, etc.) Cent Services N/A - Reductions in Engineering and Streets were N/A - Reductions in Engineering and Streets were Maintenance sufficient to achieve 2% budget overall for Pub Wks sufficient to achieve 0% budget overall for Pub Wks Addendum to July 18, 2008 memo on 2009 General Fund Budget Recreation To get from Status Quo to 2% ... - Close Carnelian & Ridgecliff warming houses, the 2 most lightly used; the rinks would be maintained, but warming houses would not be staffed - Discontinue concessions at Lex-Diff Athletic fields due to poor performance, probably because the neighborhood is well-served by fast food and convenience stores - Discontinue Safety Camp as program cannot happen without participation from Police Dept To get from 2% to 0% ... - Eliminate staffing at Trapp Farm tubing hill, which would continue to be available for use and the parking lot plowed, but no tube rentals and the warming house would not be open - Eliminate 1.0 (vacant) clerical position at City Hall, leading to longer wait times for patrons during peak registration periods, and shifting work to supervisors - Reduce Oasis Teen Ctr drop-in hours two evenings during school year, affecting on avg 6 teens/night - Defer office chair purchases - Reduce Rec program marketing, possibly leading to fewer registrations and decreased revenues - Reduce conference/trainings 20% Parks Tree Conservation Government Buildings - Reduce Sentence-to-Serve contract, affecting pond cleanups, spring prep at City sites, debris removal, tree mulching, bridge sweeping, and rink painting; volunteer groups could be enlisted, and City staff would need to be shifted to accomplish those tasks identified as priorities; delays would be expected - Eliminate Lifeworks contract, which would probably have more of an effect on community goodwill than on the cleanliness of parks - Reduce plants/beds by 23%, affecting parks and boulevard apperance - Reduce fertilized sites by 25%, affecting - Discontinue weekend rink maintenance, eliminating staff overtime; rinks would have snow removed after significant snowfall; users may notice a difference in ice quality - Completely eliminate Sentence-to-Serve, shifting work to City staff to an even greater degree - Reduce conference/training by 47% - N/A - reductions in Recreation and Parks divisions were sufficient to achieve 0% for Parks/Rec dept appearance - Reduce local trainings by 38% - Eliminate .5 FTE building maint worker, reducing ability of staff to perform two-person jobs and cover for illness and vacations; delays in snow removal at City facilities and in work orders from other depts will occur - Defer replacement of one Uninterruptible Power Supply battery for one year, so that both two-year batteries are purchased at the same time every two years instead of one battery purchased each year - Eliminate some contractual equipment maintenance, forcing staff to absorb CO sensor testing and back- flow preventer testing, and reduce frequency of some contractual maintenance of HVAC system, again shifting work to staff - Eliminate a second .5 FTE building maint worker at City Hall (evening shift), requiring the remaining FT position to be time-shifted, reducing the respon- siveness of daytime staff to requests for services, and eliminating the possibility of in-house equipment maintenance iii 4 1 ok? City of Eagan MeMo TO: CITY ADMINISTRATOR HEDGES FROM: ASSISTANT TO THE CITY ADMINISTRATOR MILLER DATE: JULY 15, 2008 SUBJECT: CITY COUNCIL SALARY SURVEY The Eagan Mayor and City Council salaries have not changed since 1996. Should the Council wish to modify the City Council's salary for 2009, an amendment would need to be made to the City Code, which specifies the salary amount of the Council (see enclosure). Such an amendment would need to be considered by the Council prior to the municipal election this November in order to go into effect January 1, 2009. The 2008 State of Minnesota salary survey is currently being conducted, and results are expected to be completed and posted in mid-July according to the League of Minnesota Cities. For comparisons sake, and until the 2008 data is available, enclosed is the 2007 Q3 calculation comparing Eagan to the cities we use for the pay plan for regular employees. These cities are more similar to Eagan in demographics and life cycle than some of the MLC cities. Eagan salaries are below all of those nine cities for both the Mayor and City Councilmembers. Given that the Council's salary has not been increased in twelve (12) years, the Council may wish to consider modifying the 2009 Mayor and City Council budget. Using the data provided in the 2007 salary survey, if the Council were to increase their pay to meet the 75`h percentile (Q3) of comparable cities (the same standard used for City employees), the result of that increase would be as follows: Current Annual Salary Mayor $9,500 City Council $6,880 Proposed Annual Salary Difference $14,000 $4,500 $11,000 $4,120 The City Council is encouraged to discuss their interest in seeing a pay increase take effect in 2009 for the Mayor and City Council's salary. As a point of information, the City Attorney has advised the City that the City Code must specify the exact salary amount for the City Council, and therefore the City is not permitted to index the salary, or provide for an annual inflationary increase under the City Code. /s/Dianne Miller Assistant to the City Administrator 34. Chapter 2 ADMINISTRATION AND GENERAL GOVERNMENT* Page 1 of I Sec. 2.11. Salaries of mayor and councilmembers. Salaries of the mayor and council are hereby fixed as follows, which amounts are deemed reasonable: Subd. 1. The monthly salary of the mayor shall be $791.67. Subd. 2. The monthly salary of each councilmember shall be $573.33. (Code 1983, § 2.11, eff. 1-1-83; Ord. No. 178, 2nd series, eff. 3-18-94; Ord. No. 224, 2nd series, eff. 9-26-96) http://Iibrary2.municode.com/mcc/DocView/13070/1/5 2 / 4/4/2007 2007 Mayor and City Council Salaries 27-Aug-07 City City Mayor Council Bloomington 25,000 11,700 Brooklyn Park 16,596 11,064 Plymouth 13,284 9,624 Burnsville 11,265 7,932 Eden Prairie 9,900 7,500 Minnetonka 10,500 8,000 Maple Grove 13,000 11,000 Lakeville 9,996 8,664 Coon Rapids 14,000 10,500 With Bloomington: Eagan 9,500 6,880 Q 3 Calculation 14,000 11,000 Eagan / Q 3 % 0.68 62.5% Without Bloomington: Eagan 9,500 6,880 Q 3 Calculation 13,463 10,625 Eagan / Q 3 % 0.71 64.8% PROJECT SCHEDULE Northview Field Lighting Improvements $195,000 Proposed: Playground Installation $120,000 A. Rahn (4 @ $30,000) B. Northview C. 441escott Station D. Quarry TED - city wide Signage System, Phase III $ 40,000 Patrick Eagan Vaster Plan III $ 10,000 -i terpretative Signage Trail Improvements Numerous Small Projects S 30,000 TBD Acquisition Opportunities ($650,000) SUB-TOIL 6395,000 ($1,045.000 wlacq) 2010: 1. Patrick Eagan Phase IV Improvements $200,000 -RestroomlService Building -Forest Renovation 2. Captain Dodd Sun Shelter $ 30,000 3. Central Park Festival Grounds Irrigation $ 75,000 4. TBD Playground Installation $120,000 (3 @ $40,000) 5. Numerous Small Projects $ 30,000 SUB-TOTAL $455,000 2011: Patrick Eagan Phase V Improvements $120,000 -Removal of Deerwood House -Retrofit Deerwood Culdesac -Trails & Signage Northview Tennis Court Development $125,000 Northview Tennis Court Lighting $ 75.000 TBD Playground Installation $120,000 (3 @ $40,000) Numerous Small Projects $ 35.000 SUB-TOTAL $475,000 PARKS & RECREATION DEPARTMENT CAPITAL IMPROVEMENT PLAN PROPOSED 2009.2013 Highve Country Home Fort Sneirng Stun Park Sky Hill r: Woodhaven Peridot Path Camelian Cedar Pond-': p4pt kftob Central Pa Quar ® 3 r 2 a 2 Blackhawk t"lexington IflMoonshine Wescott Square O'Leary Bur Oaks Thresher Fields 3 R3 Wescott Mueller Station Farm River UITTIey LJ Hills Carson aka Athletic Rahn Meadowlands E.'°ergr' Cinnamon Goat Hill Walnut Trap Ridge 2A 1 t ng Thomas Oak He p 0 Lake Chase Farm 1®. Clearwater Slater Kettle Acres Q3 George Ridgecliff Ohmann "?7' City of Evan Lakeside POTENTIAL PROJECTS: Year TBD AM, Lighting - 1. Lexington Diffley Fields (6 new) $500,000 2. Big Goat Upgrade $ 90,000 3. Ohmann Soccer Fields (3 new) $280,000 4. Northview Fields 6-8 (3 new) $300,000 5. Rahn Courts $ 30,000 6. Thresher Fields $300,000 Sub-Total $1,500,000 Park Development - 1. Moonshine Park $250,000 2. Section 16 (Federal Drive) $200,000 3. Section 11 (Thresher South) $200,000 4. Rahn South $150,000 Sub-Total $800,000 Master Plans - 1. Rahn Park South $ 25,000 2. Section 16 (Federal Drive) $ 20,000 Sub-Total $ 45,000 Park Improvements - 1. Rahn Courts Reconstruction $120,000 2. Wandering Walk Trail $100,000 3. Bur Oaks Trail Paving $ 80,000 4. Trail Signage System $ 30,000 5. Sun Shelters/Shade Structures $100,000 6. Building Upgrades $ 300,000 Sub-Total $ 730,000 South Oaks Holz fl Farm N Hidden W+E Corner S Misc. - 1. School Site Partnerships TBD 2. Acquisitions Opportunities $650,000 Grand Total $3,075,000 w/o Acq. Date: 718108 File:IJuserslpubllc workslmichellelparksl 2009-2013 Cap Improv Rea,11 x 17