5.a) 2012 Budget Meeting Date: 09/13/2011
Agenda Item: �`
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City Council Agenda Report
City of Scandia
14727 209�` St.North
Scandia, MN 55073 (651)433-2274
Action Requested: Continue review of the Draft 2012 Budget and 2012-2016 Capital
Improvement Program (CIP) and take the following actions:
• adopt a resolution certifying the maximum property tax levy
payable in 2012, and
• set the date for the public meeting on the 2012 budget and tax
levy.
Deadline/ Timeline: The preliminary levy must be certified to Washington County and the
date of the meeting must be set no later than September 15.
Background: • Staff has prepared materials for the Council's review based on
direction given at the August 30 budget work session.
• The property tax levy that will be certified after the September 13
meeting is preliminary. The Council may make additional
changes to the budget prior to its adoption in December, but the
ta�c levy may not be increased.
Recommendation: • After reviewing the attached information,the Council should
adopt the resolution certifying the tax levy. The dollar amounts in
the draft resolution may be adjusted based upon your discussion.
• The Council should also select a date for the required public
meeting on the 2012 budget and tax levy. A calendar indicating
possible dates has been provided. ,
Attachments/ 1. Memo on Proposed 2012 Pay Rate Adjustments (dated September I
Materials provided: 1, 2011)
2. Changes to Draft 2012 Budget(dated September 8, 2011)
3. 2012 Draft Budget Summary Worksheets (replaces pages 12, 13
and 14 of Budget Overview)
4. Draft Resolution 09-13-11-01 Certifying M�imum Property Tax
Levy Payable in 2012
5. Calendar with Possible Public Meeting Dates
Contact(s):
Prepared by: Anne Hurlburt, Administrator
(budget certify levy)
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09/07/11
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Memo �
To: Mayor and City Council
From: Anne Hurlburt,City Administrator
Date: September 1,2011 for discussion at September 13,2011 Meeting
Re: Proposed 2012 Pay Rate Adjustments
At the August 30 special meeting,the Council asked staff to estimate the budget impact of a 2%"cost
of living"adjustment to employee pay rates for 2012.
The attached chart shows the 2011 rates and what they would be after a 2%adjustment in 2012. The
total annual cost for adjusting the pay rates of the regular,part and full-time positions(the top half of
the chart)would be approximately$5,475,including the increases in PERA,FICA&Medicare
� employer contributions.
For the temporary/seasonal positions(the bottom half of the chart)the total annual cost of the
recommended adjustments would be approximately$420.
I recommend not adjusting certain rates. For example,there is no need to adjust the pay for the
temporary/seasonal ice rink attendants. We get plenty of student applicants for these jobs which pay
minimum wage,plus$0.25 per hour for each year of previous experience. Our pay for election judges
is comparable to what other cities pay. We only occasionally use the community center attendant and
cleaner. These flat rates,which we pay per event,not per hour, should continue to be adequate.
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Proposed 2011/2012 Pay Rates
For Discussion September 13, 2011
2011 Pay Rate* Proposed 2012 Pay Notes
Regular,Part and Full-Time Positions: Rate*
City Administrator(FT') $85,160 (annual) $86,863 (annual) 2%
Building OfficiaU Maintenance Supervisor(FT) $70,000 (annual) --- Position Eliminated
Maintenance Superintendent(FT) --- $55,000 to$70,000 New Position
(annual)
Maintenance Worker(FT) (Egelkraut) $21.74 $22.17/$23.50 2%, Step 4 on Anniversary(6/11)
Maintenance Worker(FT) (Anderson) $19.41 $20.91 2%+ Step 2
Deputy Clerk(PT)/(FT 2012) $18.64 $19A1 2%
Treasurer(PT) $18.64 $19.01 2%
Office Assistant(PT) $12.50 $12.75 2%on Anniversary(7/26)
Recreation Program Coordinator(PT) $15.00 $15.30 2%
Building/Code Enforcement Official(PT) --- $33.65 New Position
Seasonal,Part Time PosiNons:
Recreation Program Teacher $12.35 $12.60 2%
Skating Supervisor $10.88 $11.10 2%
Ice Rink Maintenance Worker $12.86 $13.12 2%
Park Attendant(Ice Rink) $7.25 to $7.75 $7.25 to $7.75 Recommend no change.
Maintenance Worker, Seasonal(Snow Plowing Class A license) $17.00 $17.34 2%
Maintenance Worker, Seasonal(Snow Plowing) $14.00 $14.28 2%
Maintenance Worker, Seasonal(Parks/Grounds Maintenance) $10.00 to $12.00 $10.00 - $12.25** 2%
Maintenance Worker, Seasonal(Public Works/Summer) --- $10.00 - $12.25** New Position
Head Election Judge $11.00 $11.00 Recommend no change.
Election Judge $9.00 $9.00 Recommend no change.
Community Center Attendant $120(per event) $120 (per event) Recommend no change.
Community Center Cleaner $150 (per event) $150 (per event) Recommend no change.
*hourly unless otherwise indicated
** allow for 2%depending upon experience
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Maintenance Worker(FT) Steps, 2011:
Minimum
Step Hourlv Pay Years to Step
1 $19.41 Start
2 $20.48 1
3 $21.74 3
4 $23.01 5
5 $24.28 8
Maintenance Worker(FT) Steps, 2012: Ii
Minimum
Step Hourlv Pay Years to Step ''
1 $19.73 Start
2 $20.91 1
3 $22.17 3 2%Increase; steps 6%apart
4 $23.50 5
5 $24.90 8
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Memo �
To: Mayor and City Council
From: Anne Hurlburt,City Administrator
Date: September 8,2011 for September 13,2011 Work Session
Re: Changes to Draft 2012 Budget and 2012-2016 Capital Improvement Program
We have adjusted the draft budget based on the discussions and decisions made at previous Council
budget work sessions. This memo will summarize the changes made since the August 3 draft was
transmitted to the Council for the August 9 meeting.
Proposed Property Tax Levy:
� T'he original draft budget proposed a property tax levy of$2,014,8'77,a 0.06% increase($1,266)over
the 2011 levy of$2,013,651. After the changes described in this memo,the proposed levy stands at
$2,077,662, a 3.18%increase($64,011)over the 2011 levy.
Capital Improvement Program(CIP):
The only change requested to the CIP was to move PR-015 (Sidewalk 209�'to South Ball Field,
$34,000) from 2012 to 2013.
General Fund:
The following changes affected several General Fund department budgets:
• Proposed ay rate adjustments—the 2%pay rate changes(detailed in a separate memo)
affected the Administration and Finance,Public Works and Parks budgets. The total budget
impact is an increase of approximately$5,895.
• We discovered that the Worker's Compensation Insurance expense(line item 151)was
missing from most of the budgets. This has been corrected,with a net increase of about
$13,000.
The other changes,by department,are:
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9/8/2011
Page 2 of 3
Administration and Finance
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• Legal Services increased by$4,000(per the August 29 memo estimating budget impacts of
Maintenance and Building official position changes.)
• Software Support and Maintenance increased by$743 due to support costs for Banyon utility
billing module.
• The revenue budget for reimbursement for services(for the Zavoral project)was re-examined
and increased by$4,000 to$7,500.
Planning 8c Building
• The salary and benefits for half of the full-time Building Official/Maintenance Supervisor
position were eliminated and replaced with expenses for a part-time Building Official position.
• Because the odds are great that the city will pay some unemployment compensation, $15,000
was added to the budget(about half the maximum liability.)
• Planning Services were increased by$11,500(per the August 29 memo estimating budget
impacts of Maintenance and Building official position changes.)
Fire
• The city contribution to Fire Relief was reduced from $58,260 to$18,258 (-$40,002)after the
number was verified with PERA.
• A couple of errors identified by the Fire Department were corrected(net change$550.)
Public Works �
• The salary and benefits for half of the full-time Building OfficiaU Maintenance Supervisor
position were eliminated and replaced with expenses for a full-time Maintenance
Superintendent position. The net increase to the Personal Services budget in Public Works is
$49,047 due to this change.
• The road maintenance supplies budget was decreased by$5,000 because of the change in
federal policy regarding implementation of retro-reflectivity requirements.
• Other expenses(totaling$4,700 for training,phone,furniture and office equipment)relating to
the new position were added,as described in the August 29 memo.
Parks
• The estimated Uptown Sewer chazges for the Warming House were added,per table 8.5 of the
Bolton&Menk report($2,900.)
Community Center
• The estimated Uptown Sewer charges for the Community Center were added,per table 8.5 of
the Bolton&Menk report($2,950.)
Other Funds:
• The PR-015, Sidewalk 209�'to South Ball Field,was removed from the Capital Improvement
Fund budget(-$34,000.) �
• A$99,601transfer from the Capital Improvement Fund to the Uptown Sewer Special Revenue
Fund was added,as an inter-fund loan to the Uptown Sewer Special Revenue Fund.
9/8/2011
Page 3 of 3
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� The Uptown Sewer Fund expense budget was revised by reducing the transfer to the General
Fund for stafftime. The cost of a contractor with the required qualifications to operate the
system has not yet been determined and will need to be added later. In the Office Supplies
line item, $1,155 was added for the fund's share of new utility billing soflware. The revenue
budget was adjusted to reflect revenue from user fees per table 8.5 of the Bolton and Menk
and to eliminate any property tax support to the fund.
• The 201 Sewer Fund budget was revised to reduce the transfer to the General Fund far staff
costs. Under the Office Supplies line item, $2,345 was added for the fund's share of new
utility billing software. Staffhas been struggling with the current soflware, and has found that
the utility billing module that will integrate with city's financial systems(Banyon)would be
the best choice and save significant time, especially during the audit. This is a one-time
purchase;ongoing support is included in the General Fund/Administration&Finance budget.
• There were no changes to the Debt Service, Equipment Replacement or Parks Capital
Improvement Fund budgets.
The budgets for both sewer funds should be considered preliminary at this time. We have yet to
resolve the issue of whether or not the City may continue to contract with Washington County for
operation of the 201 system. And the cost for an operator for the Uptown system has yet to be
determined, along with the rate structure for users. At this point the budget assumes that there will be
� no general property tax support for the operation of either sewer system. The City would pay its share
of operating costs and improvements to the Uptown system for the Wanning House and Community
Center.
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2012 Draft Budget
2012 Draft Expenditure Budget
Summary by Fund and Department
Personal Materials 8 Contractual Capital %of °�of
Fund Dept. Description Services Supplies Services Outlays Debt Service Transfers Total Total Fund
101 41000 Administration 8�Finance $187,198 $4,800 $173,167 $2,500 $367,665 19.70%
41110 City Council $18,839 $18,839 1.01%
41410 Elections $4,500 $300 $570 $5,370 0.29%
41910 Planning&Building $55,967 $1,097 $103,798 $1,003 $161,865 8.67%
42000 Police $117,061 $117,061 6.27%
42200 Fire $109,984 $38,975 $97,380 $5,000 $43,108 $294,446 15.78%
43000 Public Works $250,256 $74,680 $402,964 $38,000 $35,890 $801,790 42.96%
45000 Parks $25,448 $3,500 $19,549 $2,484 $50,981 2.73%
45180 CommunityCenter $1,337 $6,000 $34,433 $6,394 $48,164 2.58%
General Fund Total $653,529 $129,352 $948,921 $54,378 $80,001 $1,866,181 74.00% 100.00%
307 2007 Blacktop $174,143 $174,143 45.70%
310 Fire Hall/Public Works $122,509 $122,509 32.15%
311 Equipment Certificates $84,446 $84,446 22.16%
Debt Service Funds Total $381,098 $381,098 15.11% 100.00%
�'�,, 401 Capital improvements $99,601 $99,601 96.14%
� 404 Parks Capital Improvements $4,000 $4,000 3.86%
406 Equipment Replacement
Capital Funds Total $4,000 $99,601 $103,601 4.11% 100.00%
602 201 Sewer $55,667 $2,345 $3,621 $61,633 100.00%
Enterprise Funds Total $55,667 $2,345 $3,621 $61,633 2.44% 100.00%
612 Uptown Sewer $1,050 $5,777 $100,756 $1,744 $109,327 100.00%
� Special Revenue Funds Total $1,050 $5,777 $100,756 $1,744 $109,327 4.34% 100.00%
Ali Funds,Total Expenditures 5653,529 5130,402 51,010,365 S161,479 5381,098 3184,967 52,521,840 100.00%
Expense Category 25.91% 5.17% 40.06% 6.40% 15.11% 7.33% 100.00%
1 of 1 EXPENSE SUMMARY 3:25 PM 9/7/2011 �
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2012 Draft Budget
Expenditure Budget History
Total Expenditures by Fund and Department
zo�z cne�9e,2o��
2011 Adopted Proposed Budget to 2012
Fund Dept. Deacriptlon 2006 Actual 2007 Actual 2008 Actual 2009 Actual 2009 Budget 2010 Actual 2010 Budget Budget Budget Propoaed
101 41000 Administration 8 Finance $279,829 $335,963 $316,368 5316,712 $347,719 $343,354 $350,080 3348,399 3367,665 5.53%
41110 City Council $20,288 $17,419 $18,188 $19,883 $19,883 $11,334 $19,539 $20,289 $18,839 -7.15%
41410 Elections $4,353 $295 $5,521 $470 $495 $5,181 $5,670 $470 $5,370 1042.55%
41910 Planning 8 Building $137,653 $128,202 $213,034 $137,606 $200,327 $375,721 $401,929 $332,808 $161,865 -51.36%
42000 Police $86,965 $95,589 $106,321 $114,284 $117,366 $123,307 $120,717 $123,307 $117,061 -5.07%
42200 Fire $282,303 $257,465 $323,643 $304,578 $353,145 $351,571 $357,233 $343,186 $294,446 -14.20%
43000 Public Works $941,343 $565,080 $360,005 $371,870 $586,271 $656,382 $594,369 $665,698 $801,790 20.44%
43210 Uptown Water&Sewer $40,579 $39,945 $14,879 $27,330 $27,330 $419 $10,476 $23,042 -100.00%
45000 Parks $57,435 $42,473 $34,768 $60,479 $67,445 $54,234 $49,145 $55,882 $50,981 -8.77%
45180 Community Center $56,662 $44,780 $52,923 $44,920 $56,651 $47,283 $42,447 $53,777 $48,164 -10.44%
General Fund Total $1,907,410 $1,527,211 $1,445,650 $1,398,133 $1,776,632 $1,968,784 $1,951,605 $1,966,858 $1,866,181 -5.12%
302 2002 Blacktop $206,013 $208,217 $209,561
304 2004 Blacktop $267,480 $250,920 $255,240 $247,920 $247,920
307 2007 Blacktop $769 $36,731 $305,211 $181,038 $181,038 $176,043 $176,043 $179,529 $174,143 -3.00%
� 310 Fire Hall/Public Works $118,605 $120,035 $121,135 $111,140 $111,140 $113,293 $113,718 $115,143 $122,509 6.40%
� 311 Equipment Certificates $8,194 $84,446 930.58%
Debt Service Funda Total $592,867 $615,903 $891,147 5540,098 $540,098 $289,335 $289,761 $302,866 $381,098 25.83%
\ 401 Capitallmprovements $8,329 $30,751 524,072 $18,854 $18,854 $19,668 $78,000 $18,000 $99,601 453.34%
404 Parks Capital Improvements $2,360 $16,486 $23,493 $23,493 $5,038 $12,300 $14,300 $4,000 -72.03%
406 Equipment Replacement $25,430 $61,699 $61,699 $195,340 $194,336 $238,476 -100.00%
Capital Funds Total $10.689 $30,751 $65,989 $104,046 $104,046 $220,046 $284,636 $270,776 $103,601 -61.74%
602 201 Sewer $57,579 $70,080 $63,630 $63,630 $63,630 $71,065 $63,313 $63,508 $61,633 -2.95%
Enterprise Funds Total $57,579 $70,080 $63,630 $63,630 $63,630 $71,065 $63,313 $63,508 $61,633 -2.95%
612 Uptown Sewer $109,327
Special Reve�ue Funds Total $109,327
All Funda,Total Expenditures 32.567,776 $2,243,945 $2,466,416 $2,105,907 $2,484,406 $2,549,231 $2,589,315 $2,604,008 $2,521,840 -3.16%
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1 of 1 EXPENSE HISTORY 3:25 PM 9/7/2011
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2012 Draft Budget
2012 Draft Revenue Budget
Summary by Fund and Department
Intergovem-
Licenses$ mental Charges for Fines& Other %of
Fund Dept. Description Taxes Permits Revenues Services Forfeitures Revenues Total % Fund
101 General Fund
41000 Administration&Finance $301,665 $11,530 $7,597 $8,550 $19,000 $19,323 $367,665 19.70%
41110 CityCouncil $18,839 $18,839 1.01%
41410 Elections $5,370 $5,370 0.29%
41910 Planning 8�Building $49,065 $42,300 $70,500 $161,865 8.67%
42000 Police $117,061 $117,061 6.27%
42200 Fire&Rescue $253,895 $7,000 $33,551 $294,446 15.78%
43000 Public Works $796,578 $362 $4,850 $801,790 42.96%
45000 Parks&Recreation $42,981 $8,000 $50,981 2.73%
45180 Community Center $40,644 $7,520 $48,164 2.58%
Generai Fund Total 51,626,098 553,830 514,959 $132,971 519,000 E19,323 51,866,181 #DIV/0! 100.00%
307 2007 Blacktop $146,829 $27,314 $199,768 49.12%
� 310 Fire Hall/Public Works $120,793 $1,716 $122,509 30.12%
� 311 Equipment Certificates $83,942 504 $84,446 20.76%
� Debt Service Funds Total 5351,564 529,534 5406,723 #DIV/0! 100.00%
401 Capitallmprovements � $100,000 $1,575 $101,575 55.76%
404 Parks Capital Improvements $100 $100 0.05%
406 Equipment Replacement $80,478 $80,478 44.18%
Capital Funds Total 5100,000 $82,154 5182,154 #DIV/0! 100.00%
602 201 Sewer $62,725 $67,725 100.00%
Enterprise Funds Total a62,725 567,725 #DIV/0! 100.00%
612 Uptown Sewer $123,986 $123,986 100.00%
Special Revenue Funds Total E123,986 E123,986 #DIV/0! 100.00%
All Funds,Total Revenues 52,077,662 553,830 $14,959 a132,971 519,000 5317,722
1 OF 1 REV SUMMARY 3:25 PM 9/7/2011