The URL can be used to link to this page

6. Discussion on 2018 Operating and Capital Budgets{ SCANDIA Staff Report Date of Meeting: August 2, 2017 To: City Council From: Neil Soltis, Administrator Re: 2018 Operating and Capital budgets Background: The information provided is based on a series of assumptions with the net result being a baseline budget. A baseline budget represents the steady state of operations for each department. This reflects the resources required for a department to provide the same level of service in the current year, before any new priorities or funding requests. Specifically included are full year salary, benefits, and other normal operating expenses. The budgetary General Fund revenue and expenditure amounts used in the information presented are based on the 2016 actual, 2015 actual, 2017 budgeted, and 2018 steady state and also reflect the recommendations of the Capital Improvement Committee for the 2018 - 2022 Capital Improvement Program. In terms of the General Fund the large decrease in the budgeted expenditures relate to the 2017 transfer of the excess fund balance to the Local Road Improvement Fund and the CIP Committee recommendation that beginning in 2018 road maintenance funds totaling $115,000, which would normally be allocated to sealcoating, be utilized for funding a major road improvement project in 2018 and then to service the project related debt in the future. Also included are a listing of issues for discussion that would impact the baseline budget. The goals in order to move forward with the budget are the following 1. Look at the impact on property taxes and expenditures in each Fund 2. Discuss the identified variables or changes to the steady state 3. Discuss other changes to the programs, activities, or services provided Based on this discussion and information that is not currently available, the budgetary information will be recast for further discussion. At the September city Council meeting, action will need to be taken by the Council to set the maximum levy amount for taxes to be collected in 2018. EXPENDITURE SUMMARY BY OBJECT Account Personal Service Materials & Supplies Contractual Services Capital Outlay Debt Service Transfers Total by Object 2015 Actual REVENUE SUMMARY 2017 Proposed $ 2018 Budget $ 568,674 Account 552,483 2015 Actual 2016 Actual 2017 Proposed 644,600 2018 Budget Property Taxes $ 1,583,779 $ 1,486,771 $ 1,545,600 $ 1,403,800 Other Taxes $ 38,864 $ 14,502 $ 21,800 $ 10,000 Licenses and permits $ 138,741 $ 160,513 $ 101,900 $ 122,100 Intergovernmental Services $ 83,337 $ 63,890 $ 57,900 $ 63,924 Charges for Service $ 67,281 $ 65,252 $ 64,100 $ 61,000 Fines & Forfeitures $ 12,711 $ 11,792 $ 12,000 $ 12,000 Other Income and Transfers in $ 46,603 $ 41,358 $ 20,500 $ 19,500 Other Financing Sources $ - $ - $ - $ - Total by Object $ 1,971,315 $ 1,844,078 $ 1,823,800 $ 1,692,324 EXPENDITURE SUMMARY BY OBJECT Account Personal Service Materials & Supplies Contractual Services Capital Outlay Debt Service Transfers Total by Object 2015 Actual 2016 Actual 2017 Proposed $ 2018 Budget $ 568,674 $ 552,483 $ 640,900 $ 644,600 $ 101,869 $ 107,476 $ 185,800 $ 182,000 $ 895,284 $ 805,510 $ 988,100 $ 858,024 $ 18,525 $ 5,197 $ 4,000 $ 7,700 $ 127,200 $ 224,038 $ 200,280 $ 236,800 $ 356,522 $ 347,724 $ 523,200 $ - $ 1,940,874 $ 1,818,391 $ 2,342,000 $ 1,692,324 EXPENDITURE SUMMARY BY DEPARTMENT Account 2015 Actual 2016 Actual 2017 Proposed 2018 Budget Administration & Finance City Council Elections Planning & Building Police Fire Public Works Parks & Recreation Community Center Total by Department $ 351,783 $ 320,225 $ 342,600 $ 343,400 $ 19,578 $ 17,645 $ 18,900 $ 21,100 $ 1,172 $ 5,428 $ 1,300 $ 6,000 $ 105,206 $ 112,602 $ 149,000 $ 128,800 $ 115,642 $ 120,696 $ 120,500 $ 127,200 $ 224,038 $ 200,280 $ 236,800 $ 241,724 $ 1,029,107 $ 950,744 $ 1,371,800 $ 724,200 $ 56,589 $ 53,008 $ 60,900 $ 59,000 $ 37,759 $ 37,763 $ 40,200 $ 40,900 $ 1,940,874 $ 1,818,391 $ 2,342,000 $ 1,692,324 TAX LEVY Account 2015 Actual 2016 Actual 2017 Budget 2018 Budget General Fund Debt Service Fund Capital Improvement Fund Park Capital Improvement Equipment Replacement Local Road Improvement Economic Development Authority Total Levy Account Estimated Market Value Taxable Market Value Levy Capacity Taxable value Levy Amouny Fiscal disparity Local tax levy % of capacity levied tax rate Levy / $1,000 of taxable market valuation $ 1,569,818 $ 1,486,771 $ 272,691 $ 148,582 $ 30,000 $ 30,000 $ 345,000 $ 581,142 $ 5,000 $ - $ 1,545,600 $ 1,430,600 $ 116,739 $ 155,204 $ 30,000 $ - $ - $ 11,000 $ - $ 30,000 $ 560,533 $ 725,050 $ 5,000 $ 5,000 $ 2,222,509 $ 2,246,495 $ 2,257,872 $ 2,356,854 2015 Actual 2016 Actual 2017 Proposed 2018 Budget $ 639,573,500 $ 622,802,500 $ 623,745,500 $ 642,081,300 $ 607,682,500 $ 589,914,400 $ 590,958,100 $ 607,669,200 $ 6,205,473 $ 6,029,832 $ 6,036,593 $ 6,228,143 $ 6,060,643 $ 5,873,543 $ 5,876,838 $ 6,068,143 $ 2,222,509 $ 2,246,495 $ 2,257,872 $ 2,356,854 $ (119,346) $ (155,098) $ (159,755) $ (112,010) $ 2,103,163 $ 2,091,397 $ 2,098,117 $ 2,244,844 33.89% 34.68% 37.40% 37.84% 34.70% 35.61% 35.70% 36.99% $ 3.66 $ 3.81 $ 3.82 $ 3.88 2018 Budget Discussion CHANGES FROM STEADY STATE - DOES NOT INCLUDE CAPITAL PROJECTS 7/28/2017 CHANGES REFLECTED IN THE BUDGET AS PRESENTED 2018 REVENUE Use of Solar Energy Production Tax - city 20% share ($400 / year for each MwH in place) - $ 1,200 Accounting services provided to Lakes Area Cable - $ (1,600) EXPENDITURES Lakes Area Television - withdraw from joint powers agreement 6/30/2018 - $ (4,300) OTHER CHANGES TO THE BASELINE FOR DISCUSSION EXPENDITURES ADMINISTRATION Increase to 4 newsletter per year - printing and postage only - $ 1,500 Ordinance codification - $ 8,000 Migrate email from Berry Brothers to GovOffice - 13@ $50 less current cost $ 450 COUNCIL Replace meeting tablets with chromebooks - $ 2,500 Council travel & conferences ? FIRE Increase Fire Chief hours worked and wages - $ 27,830 PLANNING - COMPREHENSIVE PLAN UPDATE Remainder on comprehensive planning agreement - $ 15,000 PUBLIC WORKS Refurbish signs - 2 welcome to Scandia, Community Building, Fire / Public Works, Warming house, lighted ballfield - 6 @ $500 - $ 3,000 Purchase of radio equipment - $ 13,200 Annual fee - 4 @ $400 - $ 1,600 PAY STRUCTURE Modify base pay from levels established in 2013 - $1% increase = $1,600 EDA Revolving Loan Fund - transfer balance from the General Fund Tourism Development - to engage consultant Chisago Lakes Chamber membership LOCAL ROAD IMPROVEMENT FUND - CONSIDER 2017 FUNDING Bond rating - can be paid for from General Fund or from Bonding proceeds \\SERVER\Sha red Docs\Departments\Finance\Budget\2018\assumptions.xlsx other changes to steady state $ 20,000 - $ 10,000 $ 400 - $ 4,000 Materials & Supplies 200 Office Supplies $ 366 $ 193 $ 350 $ 400 $ 350 203 Printed Forms & Papers $ 691 $ 235 $ 200 $ 200 $ 200 209 Medical Supplies $ 1,800 $ 1,188 $ 2,000 $ 2,500 $ 2,500 210 Operating Supplies $ 7,214 $ 9,464 $ 9,000 $ 9,000 $ 8,000 211 Cleaning Supplies $ 48 $ 170 $ 1,300 $ 200 $ 200 212 Fuel $ 2,230 $ 2,083 $ 4,500 $ 4,000 $ 3,000 Contractual Services 305 Medical Services $ - $ 2,000 $ 2,000 $ 2,500 $ 2,000 306 Personnel Testing & Recruitment $ 1,783 $ 2,250 $ 2,500 $ 1,300 $ 2,500 309 Software Support & Maintenance $ 11,506 $ 9,890 $ 11,000 $ 12,000 $ 12,000 310 Medical Training $ 5,997 $ 944 $ 6,000 $ 4,000 $ 4,000 316 Conference & Seminars $ - $ - $ 250 $ 300 $ 250 317 Employee Training $ 1,585 $ 2,287 $ 8,000 $ 8,000 $ 6,000 319 Other Services $ 1,057 $ 15 $ 700 $ 700 $ 700 321 Telephone $ 790 $ 807 $ 1,050 $ 900 $ 2,600 322 Postage $ - $ - $ 50 $ - $ - 324 State of MN -Fire Relief $ 27,129 $ 33,224 $ 22,646 $ 33,800 $ 33,224 331 Travel Expenses $ 1,014 $ 1,120 $ 3,000 $ 2,000 $ 2,000 334 Licenses & Permits $ 31 $ 66 $ 25 $ 100 $ - 340 Advertising $ - $ - $ 100 $ - 361 Liability/Property Insurance $ 8,468 $ 8,515 $ 9,802 $ 8,800 $ 7,300 381 Utilities $ 8,537 $ 6,483 $ 12,000 $ 10,500 $ 8,000 384 Refuse Disposal $ 807 $ 798 $ 875 $ 900 $ 900 385 Sewer Pumping & Maintenance $ 225 $ - $ 2,000 $ 1,000 $ 800 401 Bldg Maintenance $ 2,915 $ 955 $ 3,500 $ 2,000 $ 2,000 404 Machinery & Equipment Repair $ 19,009 $ 9,810 $ 10,000 $ 10,000 $ 8,000 407 Well Repair & Maintenance $ 90 $ - $ 100 $ 100 $ 100 433 Dues & Subscriptions $ 483 $ 1,249 $ 1,200 $ 1,000 $ 1,000 438 Misc Contractual $ 655 $ 5,580 $ 750 $ 3,400 $ 4,300 440 Events $ 1,237 $ 627 $ 1,500 $ 1,000 $ 1,000 Total Contractual Services $ 93,318 $ 86,623 $ 99,048 $ 104,300 $ 98,674 Capital Outlays 530 Capital Improvements other than E $ 14,417 $ - $ - 560 Furniture & Fixtures $ 200 $ - $ 1,000 $ 500 $ 500 570 Office Equipment $ 714 $ 1,511 $ 1,500 $ 1,000 $ 1,200 Total Capital Outlays $ 15,331 $ 1,511 $ 2,500 $ 1,500 $ 1,700 Total Fire Dept. Expenditures $ 224,038 $ 200,280 $ 232,959 $ 236,800 $ 267,529 (Class A unitorms for new members and second sort or long sleeve for new Air cards (3x5600) for new county CAD system, Go live first of year Pass-thru to PERA Fire schools more newer members on GENERAL FUND 101 GENERAL FUND 101 2015 2016 2016 2017 1 2018 Account Description Actual Actual Adopted Adopted Proposed BUDGET NOTES AND HIGHLIGHTS FIRE DEPT (42200) FIRE DEPT (42200) EXPENDITURES Personnel Services 101 Regular Wages & Salaries $ 72,741 $ 72,324 $ 79,000 $ 81,400 $ 117,000 3,000 Chief Stipend = 3 - 8hr days/week 122 FICA Employer Contribution $ 4,545 $ 4,477 $ 4,898 $ 5,000 $ 7,250 126 MEDICARE Employer Contribution $ 1,096 $ 1,044 $ 1,146 $ 1,200 $ 1,755 141 Unemployment Compensation $ - $ - $ - 151 Workers Comp Insurance Premium $ 6,456 $ 5,870 $ 6,517 $ 6,300 $ 6,400 Total Personnel Services $ 84,838 $ 83,715 $ 91,561 $ 93,900 $ 132,405 Materials & Supplies 200 Office Supplies $ 366 $ 193 $ 350 $ 400 $ 350 203 Printed Forms & Papers $ 691 $ 235 $ 200 $ 200 $ 200 209 Medical Supplies $ 1,800 $ 1,188 $ 2,000 $ 2,500 $ 2,500 210 Operating Supplies $ 7,214 $ 9,464 $ 9,000 $ 9,000 $ 8,000 211 Cleaning Supplies $ 48 $ 170 $ 1,300 $ 200 $ 200 212 Fuel $ 2,230 $ 2,083 $ 4,500 $ 4,000 $ 3,000 Contractual Services 305 Medical Services $ - $ 2,000 $ 2,000 $ 2,500 $ 2,000 306 Personnel Testing & Recruitment $ 1,783 $ 2,250 $ 2,500 $ 1,300 $ 2,500 309 Software Support & Maintenance $ 11,506 $ 9,890 $ 11,000 $ 12,000 $ 12,000 310 Medical Training $ 5,997 $ 944 $ 6,000 $ 4,000 $ 4,000 316 Conference & Seminars $ - $ - $ 250 $ 300 $ 250 317 Employee Training $ 1,585 $ 2,287 $ 8,000 $ 8,000 $ 6,000 319 Other Services $ 1,057 $ 15 $ 700 $ 700 $ 700 321 Telephone $ 790 $ 807 $ 1,050 $ 900 $ 2,600 322 Postage $ - $ - $ 50 $ - $ - 324 State of MN -Fire Relief $ 27,129 $ 33,224 $ 22,646 $ 33,800 $ 33,224 331 Travel Expenses $ 1,014 $ 1,120 $ 3,000 $ 2,000 $ 2,000 334 Licenses & Permits $ 31 $ 66 $ 25 $ 100 $ - 340 Advertising $ - $ - $ 100 $ - 361 Liability/Property Insurance $ 8,468 $ 8,515 $ 9,802 $ 8,800 $ 7,300 381 Utilities $ 8,537 $ 6,483 $ 12,000 $ 10,500 $ 8,000 384 Refuse Disposal $ 807 $ 798 $ 875 $ 900 $ 900 385 Sewer Pumping & Maintenance $ 225 $ - $ 2,000 $ 1,000 $ 800 401 Bldg Maintenance $ 2,915 $ 955 $ 3,500 $ 2,000 $ 2,000 404 Machinery & Equipment Repair $ 19,009 $ 9,810 $ 10,000 $ 10,000 $ 8,000 407 Well Repair & Maintenance $ 90 $ - $ 100 $ 100 $ 100 433 Dues & Subscriptions $ 483 $ 1,249 $ 1,200 $ 1,000 $ 1,000 438 Misc Contractual $ 655 $ 5,580 $ 750 $ 3,400 $ 4,300 440 Events $ 1,237 $ 627 $ 1,500 $ 1,000 $ 1,000 Total Contractual Services $ 93,318 $ 86,623 $ 99,048 $ 104,300 $ 98,674 Capital Outlays 530 Capital Improvements other than E $ 14,417 $ - $ - 560 Furniture & Fixtures $ 200 $ - $ 1,000 $ 500 $ 500 570 Office Equipment $ 714 $ 1,511 $ 1,500 $ 1,000 $ 1,200 Total Capital Outlays $ 15,331 $ 1,511 $ 2,500 $ 1,500 $ 1,700 Total Fire Dept. Expenditures $ 224,038 $ 200,280 $ 232,959 $ 236,800 $ 267,529 (Class A unitorms for new members and second sort or long sleeve for new Air cards (3x5600) for new county CAD system, Go live first of year Pass-thru to PERA Fire schools more newer members on GENERAL FUND 101 2016 2016 2017 1 2018 Account Description Actual Adopted Adopted Proposed BUDGET NOTES AND HIGHLIGHTS FIRE DEPT EXPENDITURES Personnel Services 530 Capital Improvements other than E $ - $ 101 Regular Wages & Salaries $ 72,324 $ 79,000 122 FICA Employer Contribution $ 4,477 $ 4,898 126 MEDICARE Employer Contribution $ 1,044 $ 1,146 141 Unemployment Compensation $ - 1,511 $ 151 Workers Comp Insurance Premium $ 5,870 $ 6,517 Total Personnel Services $ 83,715 $ 91,561 Materials & Supplies 530 Capital Improvements other than E $ - $ 200 Office Supplies $ 193 $ 350 $ 400 $ 350 500 $ 500 203 Printed Forms & Papers $ 235 $ 200 $ 200 $ 300 1,511 $ 209 Medical Supplies $ 1,188 $ 2,000 $ 2,500 $ 3,000 210 Operating Supplies $ 9,464 $ 9,000 $ 9,000 $ 9,000 211 Cleaning Supplies $ 170 $ 1,300 $ 200 $ 200 212 Fuel $ 2,083 $ 4,500 $ 4,000 $ 3,500 217 Turnout Gear & Uniforms $ 8,742 $ 7,500 $ 7,500 $ 10,000 Class A uniforms for new members and second sort or long sleeve 221 Equipment Parts $ 1,586 $ 4,000 $ 4,000 $ 3,500 222 Tires $ - $ 300 $ - 223 Building Repair & Supplies $ 763 $ 3,500 $ 3,000 $ 2,000 240 Small Tools & Minor Equipment $ 4,006 $ 7,500 $ 6,000 $ 6,000 Total Materials & Supplies $ 28,431 $ 39,850 $ 37,100 $ 37,850 Contractual Services 305 Medical Services $ 2,000 $ 2,000 $ 2,500 $ 2,000 annual fit test 306 Personnel Testing & Recruitment $ 2,250 $ 2,500 $ 1,300 $ 2,500 Still need to recruit 6 members per year 309 Software Support & Maintenance $ 9,890 $ 11,000 $ 12,000 $ 12,000 Washington County 400.08/radio/year - 10k, Emergency Services 310 Medical Training $ 944 $ 6,000 $ 4,000 $ 4,000 EMT training for new members/ ongoing training for others 316 Conference & Seminars $ - $ 250 $ 300 $ 250 317 Employee Training $ 2,287 $ 8,000 $ 8,000 $ 7,000 Part of this is covered by state funding 319 Other Services $ 15 $ 700 $ 700 $ 700 321 Telephone $ 807 $ 1,050 $ 900 $ 2,600 Air cards (3x$600) for new county CAD system, Go live first of year 322 Postage $ - $ 50 $ - $ - 324 State of MN -Fire Relief $ 33,224 $ 22,646 $ 33,800 $ 33,224 Pass-thru to PERA 331 Travel Expenses $ 1,120 $ 3,000 $ 2,000 $ 2,000 Fire schools more newer members 334 Licenses & Permits $ 66 $ 25 $ 100 $ 75 340 Advertising $ - $ 100 $ - 361 Liability/Property Insurance $ 8,515 $ 9,802 $ 8,800 $ 7,300 Based on last year 381 Utilities $ 6,483 $ 12,000 $ 10,500 $ 8,000 Solar panel decrease 384 Refuse Disposal $ 798 $ 875 $ 900 $ 900 385 Sewer Pumping & Maintenance $ - $ 2,000 $ 1,000 $ 1,000 401 Bldg Maintenance $ 955 $ 3,500 $ 2,000 $ 4,500 New carpet in meeting room 404 Machinery & Equipment Repair $ 9,810 $ 10,000 $ 10,000 $ 10,000 407 Well Repair & Maintenance $ - $ 100 $ 100 $ 100 433 Dues & Subscriptions $ 1,249 $ 1,200 $ 1,000 $ 1,000 438 Misc Contractual $ 5,580 $ 750 $ 3,400 $ 5,400 Monthly Station Cleaning, compressor ($0.7k), lucas ($1.1k), siren 440 Events $ 627 $ 1,500 $ 1,000 $ 1,000 Taco Daze, Fire safety, Halloween Total Contractual Services $ 86,623 $ 99,048 $ 104,300 $ 105,549 Capital Outlays 530 Capital Improvements other than E $ - $ - 560 Furniture & Fixtures $ - $ 1,000 $ 500 $ 500 570 Office Equipment $ 1,511 $ 1,500 $ 1,000 $ 2,200 Total Capital Outlays $ 1,511 $ 2,500 $ 1,500 $ 2,700 Total Fire Dept. Expenditures $ 200,280 $ 232,959 $ 236,800 $ 239,699