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HomeMy WebLinkAbout08/13/1991 TENTATIVE AGENDA SHAKOPEE CITY COUNCIL COMMITTEE OF THE WHOLE AUGUST 13 , 1991 Mayor Gary Laurent presiding 1] Roll Call at 7: 00 P.M. 2] Approval of Minutes of July 23, 1991 3] Review of 1992 Budget 4] Staff +/- 10% Reduction Plans 5] Other Business 6] Adjourn Dennis R. Kraft City Administrator OFFICIAL PROCEEDINGS OF THE CITY COUNCIL SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE JULY 23 , 1991 Mayor Laurent called the meeting to order at 7 : 00 P.M. with Councilmembers Zak, Wampach, Sweeney, and Clay present. Councilwoman Vierling was absent. Also present were Dennis R. Kraft, City Administrator; Karen Marty, City Attorney; Tom Steininger, Chief of Police; Gregg Voxland, Finance Officer; Mark McQuillan, Program Supervisor; and Judith S . Cox, City Clerk, who arrived at 7 : 15 P.M. Mayor Laurent explained that the first item on the agenda is to consider action against Turtle ' s Bar & Grill for liquor violations. He stated that the Committee of the Whole will be acting as a hearing board. Members of the Committee concurred that the Mayor should act as the speaker for the hearing board. The Mayor explained the process that would be followed by the Hearing Board. The hearing will be conducted in accordance with the administrative rules of evidence. The City will present its information first which will be followed by Turtle ' s; all witnesses will be given an oath and will be asked to step up to the microphone and to state their name and address. The City attorney presented an opening statement explaining that the reason for the hearing is to conduct an investigative hearing under the administrative rules set forth by state law. The subject of the hearing is to determine whether or not a penalty should be imposed upon Turtle ' s for a violation of state law and local ordinance. The violation is for allowing consumption of liquor after hours inside the establishment. She explained that, if the hearing board finds that a violation of the law did occur, the hearing board must decide whether or not a penalty should be imposed upon Turtles for a violation of state law and local ordinance. She stated that she would be calling two witnesses, Sergeant Kaley, the arresting officer involved in the incident, and the Chief of Police to testify as to the relationship the department has with Turtle' s and to provide a recommendation for a penalty. No one from Turtle' s wished to make an opening statement. First witness for the City was Richard Kaley, Patrol Sergeant for the City of Shakopee, who was on duty February 9 , 1991, when the incident occurred. In response to questions from the City Attorney, Sergeant Kaley related what transpired leading up to his charging one person for consumption and charging Bryan Turtle (son of the owner of Turtle' s, and employee) for allowing consumption of alcohol in violation of the city ordinance. There was no cross examination by Turtle ' s. Official Proceedings of the July 23 , 1991 Committee of the Whole Page -2- The second witness for the City was Police Chief, Tom Steininger. In response to questions from the City Attorney, Chief Steininger stated that there has been a good working relationship between Turtle ' s Bar and the Police Department. He likened this offense to a speeding ticket and stated that this was their first offense. He, therefore, suggested that a penalty be imposed suspending their license for three days, on non-peak days, and that two of the days be held in abeyance for one year. There was no cross examination by Turtle ' s. The first witness for Turtle' s Bar & Grill was Mr. Gary Turtle, owner, 15697 Cedar Ridge Road, Eden Prairie. Mr. Turtle stated that his son, Bryan, had allowed consumption on the premises after hours. He said that this was a mistake. He explained that he has taken numerous measures so that this doesn 't happen again. Mr. Turtle explained what happened on the day of the incident. He explained that the establishment was closed and that Bryan' s friends were helping to clean up because the regular cleaning person had called in ill and was not able to do so. It was during the process of cleaning that the incident occurred. There were no sales involved. Bryan was not aware that he was violating the law. Mr. Turtle acknowledged that ignorance of the law is no excuse. He identified the measures he has taken so this does not happen again and submitted a copy of a document which all employees are now required to sign. There was no cross examination by the City Attorney. In her closing argument, the City Attorney stated that no one has challenged anything that has been said, that there was a violation, that Bryan was ignorant of the law, that the licensee does not intend to repeat the violation, and that hearing board may wish to consider the penalty recommended by the Chief of Police. In his closing argument, Mr. Gary Turtle stated that this was a first offense, it occurred because of ignorance of the law, that he is doing a good job with the business, he employs 20 plus people, and he asked that the hearing board be lenient. He said that he doesn 't see a reason for them to be closed, they are trying to make a good living and that he believes that being closed will raise a flag in the community that they are bad guys. Discussion ensued among the members of the hearing board. Zak/Sweeney moved to recommend to City Council that the violation at Turtle ' s be accorded a three day suspension of the liquor license, to be held in abeyance for one year, plus recovery of expenses of the City. Sweeney/Clay moved to amend the motion to include that an agreement be entered into with Mr. Turtle carrying out the suspension of the suspension for one year. Motion carried unanimously. Official Proceedings of the July 23 , 1991 Committee of the Whole Page -3- Clay/Sweeney moved to amend the motion to include that the reimbursement of expenses to the City shall not exceed $250. 00. Motion carried unanimously. Motion carried unanimously on the main motion as amended. Mayor Laurent explained that staff will prepare a report of the facts heard by the board this evening, including the penalties recommended by the board, which will be forwarded to the City Council . Mr. Turtle will also receive a copy of the report and will also be notified of the date that the City Council will receive the report and take formal action. Wampach/Sweeney moved to adjourn the hearing. Motion carried unanimously. Mayor Laurent recessed the meeting at 8 : 05 P.M. Mayor Laurent re-convened the meeting at 8 : 21 P.M. Sweeney/Clay moved to approve the Minutes of the Committee of the Whole for June 3 , 1991. Motion carried unanimously. Mr. Ed Winfield, Financial Management Analyst, summarized the first two portions of his interim report. He stated that he was hired to determine where the city services could be delivered in a more efficient or economical manner; and also, to identify some temporary/permanent budget cuts. The report focuses on three different areas: reducing expenditures, personnel actions, and reorganization or cooperative adventures with other governments. The report includes some revenue increases and some other broad categories of general ideas. Mr. Winfield stated that he wanted to present an interim report to City Council to get their reaction to the study so far and to get some directions on how to proceed. Discussion ensued among Councilmembers. Zak/Clay moved that staff be directed to prepare an ordinance reducing the City Council to five members beginning January 1, 1992 . Motion carried unanimously. Sweeney/Clay moved that staff be directed to research the possibility of reducing City Council salaries and providing a salary to H.R.A. members and submit the information to City Council . Motion carried unanimously. Sweeney/Zak moved to submit to City Council the recommended reductions of expenditures for 1991 as set out in the interim report. Motion carried unanimously. Official Proceedings of the July 23 , 1991 Committee of the Whole Page -4- Sweeney/Zak moved that staff be directed to prepare a report on an Early Retirement Plan for the City of Shakopee. Motion carried unanimously. Sweeney/Zak directed staff to present to the City Council a proposal on Special Leave Without Pay. Motion carried unanimously. Sweeney/Wampach directed the City Administrator to prepare a budget without any increase in the general levy for 1992 . Motion carried unanimously. Clay/Sweeney moved that staff be directed to prepare a +10% budget with a corresponding reflection of the impact on services. Motion carried unanimously. Mr. Winfield stated that because of the size of the proposed expenditures in the next five years for the Fire Department, staff would like to continue the study of the Fire Department. Sweeney/Wampach directed staff to continue to study the current and interim needs of the Fire Department. Motion carried unanimously. Mr. Winfield stated that due to the possible early retirement plan and some of the employees that might accept it, there would be a possibility of looking at reorganizing and stream lining some departments. Sweeney/Wampach moved that a proposed reorganization plan be presented to City Council. Motion carried unanimously. Sweeney/Zak moved that staff be directed to explore additional fees for service enhancements. Motion carried unanimously. Mark McQuillan, Program Supervisor, Parks and Recreation, gave a broad overview of the operations of the park and recreation department, the types of activities and programs that they are involved in, and the services and the people that they serve. He also explained the staff responsibilities. Mr. Clay stated that additional revenue is needed to continue the programs and to add staff. Discussion ensued on possible sources for the additional revenue needed, one being from the general fund balance and one being from the park fund. Sweeney/Wampach moved that staff be directed to come back with a funding source for the proposed recreation program additional over budget expenditures. Motion carried unanimously. The Committee of the Whole agreed to meet at 4 : 30 P.M. on August 6, 1991, to discuss the Five Year Equipment List. Official Proceedings of the July 23 , 1991 Committee of the Whole Page -5- The City Administrator informed the Committee that the arbitrator has awarded a 2% wage increase for the police officers for 1991. Clay/Zak moved to adjourn to Tuesday, August 6, 1991 at 4 :30 P.M. Motion carried unanimously. Meeting adjourned at 10:43 P.M. (2i /d1,1-44., -C: - C)4%-_, ith S. 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N Ui CO N., N) 0 r' Ut 0 1 N w V Ln9 (~7 ON 0 0 U+ 0000 Lri 00000000 - Gln - 000 t-' `.< 110 0 0 0 0000000000000 0 00000 w u -co 0 ro Q. VI 1 Ch Ln N N O LNn H H 0 NNv I--, H r-. V = P:1 £ N w In Ln Co 0 Li, N U1 r-. Nlil CO N N) 0 N In 0 F-' N w V Ui ?-31--, O U ON 0 0 Ln 0000 Ln 00000000 N - In 4' 000 �1 R 0 0 0 0 0 0 0o O 00000000 0 00000 11 En 7C m <a x tl ro II MHO H II HO II O 0 0 0 3, TO: Barry Stock, Acting City Administrator FROM: Gregg Voxland, Finance Director RE: 1992 Budget DATE: August 8, 1991 Introduction Council has a work session set for August 13, 1991 to discuss the 1992 Budget. The usual pattern for the beginning of the Council review of the budget is to review some of the funds other than the general fund and put those to rest so to speak. Also, the first meeting usually is an overview of the general fund and general fund revenues. Specific discussion of the expenditure side of the general fund usually does not occur until the second Council budget meeting. Proposed pattern for the meeting of the 13th is; Revised Capital Equipment List Enterprise Funds Debt Service Funds Special Revenue Funds - HRA and Transit General Fund overview General Fund Revenues General discussion of service level increase or decrease. Attachments: Revised Capital Equipment List Enterprise Funds Debt Service Funds Special Revenue Funds - HRA and Transit General Fund Revenues '-4 Ci] f?\ [_] O O Cil mX boamom ° n mpvbbcax �m ( m cm 0 t'• CD g g CD D w r 0 r'U N m ir ti r( (n oA - esNQCCDC(D w a U) t Uit I ' F-' Q. 0 n CD P- (D n CDC)n 1,_, rt .. C c ft (D (o H. H. )i H. ft (D (n QQ t 0 .. (n (D Cit ~' 0 n o m (a n b (CD r N r to r 11 ~' A) W tin o m N z coApN C0t C ¢(D m rt r p r x (D ht o o CD (D O II pt (nn ri r bio (�0D ' (D N. y a H. 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W N W 00 co r 0 0 0 0 V CO 1/40 0 0 U P 2 r• e 0 0 H \ 0 / / 7 H / ? 0 \ 0 2 a q g t 4 11 e r 0 2 r m 0 co H / 0 0) p �CD / ) � II ■ lb 0rt 0 ( < / / \ 2 H # m « 0 0 0 CD 0 0 2 0 11 / 1 0 / 0 E 2 % ; t e e 0 7 0 0 CD 0 Cl) 00 » | ! , w " / \ % 0 $ / � 0. § v0 « e 4- = a a ts.) mw Ln Ho |Il 0 ® U' 0 w 0 w 0 0 ND $ 7 7 0 \ $ 0 $ 0 0 LA) a a N..) NJ 1/40 ...c° \ / f q CO / ef % § � a w wo e a oao 0 2 / | V CO co0 / 0 000 0 4> 4> | 4> » w o < w _ P r e a m Cl) 1-1 1/40 1t1/41 (---I 4' w e = weo t.0 2 -P- 1 0 Co / 0 k 0 000 0 4> 4' ll| 8 4> NJ N.) e o < w e e r e a w § � | -chU CO w e o e 2 1/40 VI ■ Co w a u a 0 a 0 0 | 0 co 7 ? co 0 000 0 ■ | - � | $ % tv 0 e e w § 1/40 = ..(.4 •P's < m w e U' 1-3/ \ | / CO / 0 0 0 0 0 0 tH MEMO TO: Shakopee City Council FROM: Barry A. Stock, Assistant City Administrator RE: Staff + or - 10% Reduction Plans DATE: August 8 , 1991 INTRODUCTION: On July 23 , 1991, the City Council requested department heads to resubmit their 1992 budgets showing the impact of a 10% increase and a 10% decrease. BACKGROUND: Attached are the memos from our department heads which explain the impact of a 10% increase and decrease on their 1992 budgets. Staff is requesting that City Council simply review the memos as submitted at this time. At the meeting on August 20, 1991, staff will entertain general questions on the + or - 10% reduction plans. It is staff ' s intent to go into greater detail on the + or - 10% reduction plans at the August 27 , 1991 Committee of the Whole Meeting. ACTION REQUESTED: No action is necessary at this time. All data is being submitted for information and discussion purposes. TO: Dennis R. Kraft, City Administrator FROM: Tom Steininger, Chief of Police SUBJECT: Resubmission of 1992 Budget showing 10% Increase. DATE: August 2, 1991 The following material is presented in response to instructions to illustrate the effect a 10% increase in the proposed 1992 Police Department Budget would have in terms of improved police services to the city. 4100 SALARIES, FULL TIME - Increased $53,835 Increase staff by adding two additional, full time, sworn officers and implement the following: 1. Two man coverage around the clock. Currently, one officer works alone during some typically slow periods in the early morning hours. This allows for deployment of more officers during periods when it is anticipated that calls for service will be most frequent. It also causes some concern for officer safety during the hours worked alone. 2. Establish an ongoing Crime Prevention program emphasizing Residential Security, Operation Identification and Neighborhood Watch. Residential Security programs make homeowners aware of simple, cost effective measures to protect their homes and property from thieves and vandals. Operation Identification is a highly effective property marking system in which participants are assigned a unique Property Identification Number (PIN) which can be checked by any law enforcement agency in the U.S. and in some cases, Canada, to locate the owner of recovered property. Participants are also supplied with Operation Identification Stickers for their doors and windows. These stickers are a deterrent to thieves because possession of marked property belonging to someone else is evidence of criminal activity. In Neighborhood Watch or Block Watch activities, the police encourage residents of the same predetermined geographic area to watch out for each other. Officers meet with groups of citizens to facilitate discussions of neighborhood crime problems, propose simple solutions and show people how to take care of each other by showing them how to recognize and report criminal activity. 3 . Increased activity in local schools. Availablitiy of additional personnel would make it possible to expand police presence in local schools. Programs such as "Officer Friendly" and "D.A.R.E. " are excellent examples of what should be taking place on a larger scale. "Officer Friendly" is offered in grades 1-4 . Children in Kindergarten meet a police officer during the first weeks of school and learn that the police are their friends. Second, third and fourth graders learn about theft and vandalism. This commitment amounts to three 40 minute sessions or a total of two hours per grade per year. This includes time spent on Halloween and Bicycle Safety. Fifth graders learn about Drug Abuse Resistance Education in the D.A.R.E. Program. The commitment here is 17 hours per group per year. Representatives of this department should be spending at least 4 hours per year at each grade level. Kindergarten programs should include "Who Do You Tell" and "Stranger Danger" material to reinforce personal safety lessons the children are learning and the availability of police assistance to children who need it. The "Officer Friendly" theme should be expanded to allow officers enough time to deal with vandalism, shoplifting and other subjects more thoroughly. Seventh Graders should go through a four hour D.A.R.E. "Refresher" to reinforce the lessons learned in fifth grade to help prepare them to meet the challenges of Junior High. Exposure of this nature and to this extent will enable police officers to develop credibility with students. This in turn enables them to deal more effectively with larger problems that will surface as these students move into high school. 4. Increased daytime traffic enforcement. Most of this enforcement would be directed towards congestion in the downtown area and excessive speed on 1st Avenue. 5. Enforcement of state and federal laws regulating truck traffic. The problems caused by truck traffic on 1st Avenue need no explanation. Additional personnel would allow serious enforcement truck laws. Checking with several metro area police agencies involved in truck enforcement has yielded the following thoughts. All of the departments checked confirmed that equipment and training costs were recovered. Recovery time varied. Most of the departments contacted use portable scales in the spring when weight restrictions are in effect using overtime officers to work restricted roads. Although none of the agencies queried had solid figures regarding revenue, they all recovered costs and generated revenue, usually $2-3000 per year. One agency with an aggressive program made $10, 000 in one year. Departments familiar with Shakopee were surprised that there is no truck enforcement here. Given the amount of truck traffic in Shakopee, a possibility exists that enforcement of truck laws could not only pay for itself, but also generate revenue for the city. The possibility also exists that once truckers become aware of aggressive truck law enforcement here, they will find and use alternate routes to avoid Shakopee. The latter case would have a positive impact on the city but would generate no revenue. The negative side to truck enforcement is the possible impact on local businesses. Garbage haulers, gravel haulers, grain haulers and other local businesses which use trucks will perceive truck enforcement as applying to someone else and will cause an uproar if they are cited for violations. The City Council will almost certainly receive negative feedback regarding the impact trucking fines can have on small businesses. 4130 SALARIES - PART TIME - Increase $31, 680 Increase staff by three half- time Community Service. Officers. The part-time status of these people would keep the cost of fringes at a minimum while providing the department with maximum flexibility in scheduling. During the first and fourth quarters, a total of 20 hours of CSO time per week would be scheduled. During the second and third quarters, a total of 40 hours of CSO time per week would be scheduled. CSO's would be used to accomplish the following: 1. Code enforcement. The duties formerly. performed by code enforcement officers would be performed by CSO's. Improvements in this area would include year round code enforcement, more consistent code enforcement resulting in fewer citizen complaints and better qualified code enforcement officers. 2 . Miscellaneous, quasi-police duties. Assigning CSO's duties of an "errand running" or "paper service" nature would result in a more effective expenditure of wage dollars by releasing sworn officers to do things that require the attention of someone who is fully trained and licensed as a police officer. Examples of duties which would be assigned to CSO's include but are not limited to delivery of agendas and other papers, releasing recovered bicycles and impounded vehicles, releasing reports and transporting evidence to the Bureau of Criminal Apprehension Laboratory. CSO'S could also be used to staff the Police Station for a few hours on Thursday nights and Saturday mornings for the convenience of people who have business here but who work and can't come in during normal business hours. CSO's would also be used to assist with keeping property files up to date, purging records and more of the thousand and one similar odd jobs that there are never enough time to do. 3. Bike Safety CSO's would be expected to provide a nominal level of bicycle safety enforcement, conduct bicycle safety clinics at schools and playgrounds and supervise a bike safety patrol during the summer. 4. Crime Prevention CSO's would be expected to assist in crime prevention projects as necessary To reduce the number of bicycles stolen in Shakopee each year and to facilitate the return of recovered stolen bicycles to their owners, CSO's would be expected to implement and maintain a local bicycle registration program using Operation Identification numbers and materials. 5. Assist in establishing and coordinate a Senior Citizen volunteer corps to assist with vacation checks and routine callback activity at the police department. A Bicycle Safety Patrol consisting of three high school seniors or college underclassmen working at minimum wage would be established for twelve weeks during summer vacation. The patrol would be expected to provide coverage during daylight hours Monday through Saturday. Duties would include patrolling the city on bicycles to promote safe bicycling through education of the public, enforcement of bicycle safety laws and registration of bicycles. Bike Patrol members would also be expected to assist CSO ' s with Bicycle Safety Demonstrations and Clinics at local schools and playgrounds. 4390 TRAINING - Increase $7, 000 Train two officers for truck enforcement and inspection - $1, 000 One Officer to Southern Police Institute - $6, 000 4511 CAPITAL EQUIPMENT - Increase $9, 000 $4 , 500 - Purchase scales, small trailer and miscellaneous start up equipment for truck enforcement. $4 , 800 - Purchase four Motorola MT 1000 portable radios to upgrade some of the units currently being carried by our officers. As explained in the original 1992 Budget, many of the older Mototola Portable Radios in service at this time are near the end of their useful life and should be replaced. PREVIOUS 1992 DIVISION TOTAL - $1, 225, 860 NEW 1992 DIVISION TOTAL - 1, 348, 440 AMOUNT OF INCREASE - 122, 580 OR 10 . 06% U) 0 0 O O 0 H0 0 0 C7 10 h h h O M H a z a o 0 0 0 0 0 w o 0 o O O r-i q o o Ln in In (7 Lc) N N N N 01 O M )4 Gi O4 U w z Z 0 0 0 0 0 0 w 0 0 0 0 CA M N In In CDHw O MS] Gi 0 Pk U 0 0 0 0 0 C o o O co 0 o `fl O H z a M C24 0 0 0 0 0 0 �n a o 0 0 O H a CO CO Co O M 0 Z U a Z w 0 0 0 o O o 0 I- OO O O O g d' H H N lD CA 01 C7 H z O Mw a a h X E-, 00 0 0 0 00000 0 000 0 0 0 Ei 4 Cl) 10 O 0 N N 0 0 Ln 0 0 0 0 0 0 to N w a' M w N d' N Ol N 0011/4.000 O1 0 N a 0 CO 4.1 0 H 'J M N N 0 M N H H H CO 10 01 Z 0Mz d' H H N H co Cl) 04H H H a Z O w 3 U Z a 0 0 0 0 0 0 00000 0 0 0 0 0 0 0 0 , H 0 d' 0 CO d 0 10 0 0 In 0 0 0 0 0 0 Ln 0 0 H E-I a N Z M N N d' CO in 'a' 0 '.0 0 0 Ol 0 h H N CO CO H w 0 (7HE-1 hCO l0 Ml0 N d 0 CON H to N M M 01 (7 a O M 4 1n H l0 d' 01 H H ,zr Ln in c0 O a a in l0 h a Z• Z 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 H 0000N01 '0d M N 000000000 M01000 01 0 0 H g Cl) g H E, M w1/40 d' CO CO 0 N CO 0 1/4.0 In N N 01 N 0 0 CO 0 In N 10 h CO CO d' (..7 H c7 H (7 10 N H N CO N d' CO 10 d' 10 M h N N H C H H N CO 10 10 N O > O M ,'F.., In M H H N In N H N d' I24 Hsi H N M a 0 a 00000000 0 000000000000000 0 0 0 0 w 14 CS) 0C00Cs) 0kr) C to OOOOOOOOOM010000 01 O O 'a' w 4 CO0 k.0 d' coMhN H 0 CO CO 0 0a1000000in0a1Ct. H H H 'Cr a E-+ 10 H H ID CO 10 H CO H H H NIn CO Ol N N d' H H In CO 01 CO CO CO O 0 to M M 01 N N M N H H H N H H d' 1/40 10 d' • 0 E-+ co H H M 4 Z H H • w 0 a a w E-I0 wz w (n Utz cz w H Cf) 41 ) 41 La Z w t/) (7ZH Za) (7041 U1C/) w w a E1 41X41 a 0 Cl) wwzwmwozzH Cl) a o g a HHH rc4x0 H HZ0.) C7x4H f-ZS664 K4 H aEia OE- . )7 4Z 0aw4awE+ iEl \Hcn w (n EH )4 }i w R; 4 444 H )4 KC a04H44Eiw > ZD4EI44cnU w H a Q Ei Z U w U121a Z OrEiH � Oc/a44Hu) HZzwa) H a 4 E-I H w cn Q ' 4wHww0 0 OOOOzawORSZEiwO � H 4 4 E1 0 U (7 41 (n0 (na4.4XZ Cl) (/) XWwaaE-IE-1aHG4U0X a U HH Er 0 w CO 0 0 0 0 H w O N O O H M OH a ONON00H000000HO1 a H a (/) F7 M d' d' d' In to H N M MH N N M In lD h CO O, 01 01 4 H Q,' H H 0 H f7 H H H H H H H H Ei N N N N (') M M M M M M M c') M d' Ei LC) EI > 0 0 d d' d' d' d d' d' •:r 0 C d cr d' v' "Zr d' d' v' d' d' d' C 0 ,:r 0 H EI E� El 2 TO: Dennis R. Kraft, City Administrator FROM: Tom Steininger, Chief of Police SUBJECT: Resubmission of 1992 Budget showing 10% Reduction DATE: July 29 , 1991 The following material is presented in response to instructions to reduce the proposed 1992 Police Department Budget by 10%. It should be noted that in the original 1992 Police Budget, significant savings were projected and the amount requested for 1992 was 2 . 2% less than the amount budgeted for 1991. If the following figures are implemented, they will cause an unacceptable negative impact on provision of police services to our city. 4100 SALARIES, FULL TIME - Reduced $74 , 480 It is not possible to project a saving of $122 , 586 or 10% of the amount requested for police operations in 1992 without reducing staff. To this end, the original funding for a Code Enforcement officer was dropped from the 1992 Budget. At the same time, justification for more staff than are currently on board was included in the 1992 Budget, not to request additional personnel but to emphasize the consequences of additional staff reductions. The additional staff cuts necessary to reach a 10% reduction would include reducing clerical staff from 3 . 5 positions including a secretary and 2 . 5 clerks to 2 clerks. Clerical staff at the Police Department is working at close to maximum capacity now and such reductions will cause significant increases in the amount of time it takes to obtain record checks, case records for court and other paperwork produced here. Chances of a sensitive cases being handled too slowly or not at all also increase. Clerical personnel are hired to free up time sworn officers and managers spend on routine paperwork. The proposed reductions in clerical staff mean officers including the chief will be required to do their own paperwork which means they will have less time available to spend on proactive law enforcement activities, undirected patrol or effective management as discussed in the original 1992 Police Budget. It is not feasible to reduce sworn staff and retain clerical personnel because when a critical incident occurs, if sworn officers happen to be working in the office, they can respond. Clerical personnel, however, cannot be armed or dispatched to deal with criminal acts or emergencies. If a 10% reduction is implemented, it will also be necessary to reduce the size of the patrol force by one sworn officer. If the Deputy Chief retires as expected, plans are to move a Sergeant into that position and promote a Patrol sergeant to fill the vacancy created at that level . $49, 515 can be saved by not replacing the patrolman who is promoted to sergeant. This is an unacceptable measure. In the original 1992 Budget, the workload of the department was broken down in terms of both time spent and perceived police hazards. These cuts will require the department to adjust individual workloads which will result in elimination of some law enforcement services now being provided. Funeral escorts and daytime traffic enforcement will probably have to be eliminated and something will have to be done to reduce the number of false burglar alarms officers respond to. Cutting an officer also means sergeants and the chief will spend more time on the street filling in as patrolmen. As enjoyable as they may find this, their primary functions are management and supervision. Sergeants already spend about 21% of their time answering calls for service. Increasing this percentage not only is a failure to use existing budget dollars in the most appropriate manner but also begins to open a liability window that is not in the best interest of the city. Crimes of all kinds, especially those accompanied by violence are being committed in increasing numbers throughout the country and Minnesota is no exception. It is not necessary to look as far as St. Cloud or Milwaukee to see why this is not the time to reduce the size of police departments. Yesterday, a twin cities newscaster described a shooting in South Minneapolis as routine. Today, we learned of an incident involving members of the Vice Lords street gang which took place at Rice Lake Park over the weekend. Tomorrow, the Minnesota Crime Prevention Association is meeting to formulate plans for a statewide "Turn Off the Violence" campaign in response to the growing number of citizens concerned about continuing escalation of violent crimes. 4112 OVERTIME - Reduced $3 , 500 In 1991, $32 , 710 was budgeted for Overtime. This amount was reduced by $1, 710 for 1992 . At the new 1991 rate, the additional $3 , 500 reduction is probably within reach. If officers get another 2% in 1992 , this amount is probably $1, 000 short of what will be needed. It is difficult to project police overtime accurately because so much of it is beyond anyone' s control. Of the amount budgeted, 23% is needed to meet anticipated contract obligations to officers who are called to court. The police department has no control over court schedules. Major crimes, civil disturbances, natural disasters and other local emergencies which are beyond the control of the police department also increase overtime expenditures. Reducing staff will also almost certainly increase overtime expenditures. First, there will be fewer people trying to do the same amount of work. Second, removing an officer from the schedule is going to leave some holes that will have to be filled by using overtime. 4130 SALARIES, PART TIME Part time salaries in the amount of $5, 790 were eliminated for 1992 . 4140 PERA - Reduced $6, 210 Result of projected personnel cuts. 4141 FICA - Reduced $2 , 760 Result of projected personnel cuts. 4143 MEDICARE - Reduced $1, 070 Result of projected personnel cuts. 4150 HEALTH & LIFE INSURANCE - Reduced $6, 240 Result of projected personnel cuts. 4151 WORKMEN'S COMP INSURANCE - Reduced $2 , 351 Result of projected personnel cuts. 4210 SUPPLIES - Reduced $3 , 000 This is almost $5, 000 less than was actually spent in 1989 . In addition to the impact of inflation, raising the capitalization limit from $200 to $500 increases the load on this category both by requiring more items to be charged against it and by requiring more expensive items to be charged against it. This money can be saved by shelving some plans to upgrade and standardize officer sidearms and by getting another year out of some expendable items that are up for replacement. 4230 BUILDING MAINTENANCE & REPAIR - Reduced $2 , 800 This amounts to cutting $4, 000 from the amount budgeted in this area in 1991. Some money will be saved by using community service workers to accomplish maintenance such as cleaning and painting. The rest will be saved by putting off needed repairs and upgrades. If a major breakdown is encountered, this amount will not cover it. 4232 EQUIPMENT MAINTENANCE & REPAIR - Reduced $600 This is $6, 000 less than was expended in 1989 and $1, 600 less than 1990. Assigning two officers to a car and allowing more officer input into such items as exterior markings and vehicle equipment options are already resulting in increased attention to preventive maintenance and a higher level of overall care. Increased ownership on the part of officers as this program continues is expected to save repair dollars. 4310 PROFESSIONAL SERVICES Reduced $6, 000 This is $15, 000 less than the amount spent in 1989 and $16, 000 less than the amount budgeted for 1991. $10, 000 of this money is from Dump Day which is not a law enforcement service and does not belong in the police budget. The remaining $6, 000 comes from canceling our animal control contract with McAllister. This will cause negative impact by reducing the level of animal control services provided to dispatching injured or dangerous animals in accordance with existing policy and confining animals who have bitten someone in our jurisdiction. Arrangements would have to be worked for such confinement to take place in Bloomington on a per diem basis. Calls to pick up dead animals might would be referred elsewhere, possibly to the Public Works Department. 4320 POSTAGE - Reduced $10 Increases reduction of 1991 figure from 10% to 11%. 4330 TRAVEL & SUBSISTENCE - Reduced $1, 000 Increases reduction of 1991 figure to 66. 6%. Reducing travel is always one of the first items to come under the budget cutting knife. Unfortunately, important networking with officials from other agencies and/or other areas of the criminal justice system is reduced or eliminated by cuts of this nature. Many of these dollars are spent as an adjunct to training. The impact of reducing training is discussed under 4390 - Conferences & Schools. 4350 PRINTING & PUBLISHING - Reduced $100 This increases the amount cut from the 1991 figure to $1, 100. Use of computerized report forms will account for much of this. Postponing a citizen response survey planned for next summer will be shelved if necessary. 4360 INSURANCE - Reduced $660 This is the difference between the formula used in the original calculation and the actual anticipated cost obtained from the Finance Department. 4390 CONFERENCES & SCHOOLS - Reduced $2 , 500 Attempting to save dollars in this area is a subtle form of Russian Roulette. It saves money every time the gun doesn't go off but carries disastrous consequences if it does. In every state, the actions of police officers are being examined after the fact by potential litigants to an extent which has never been seen before. Los Angeles and Minneapolis are but two of the cities spending enormous sums of money on damage control as a result of this trend. A unique feature of legal actions brought against cities by citizens or groups of citizens, especially those involving police use of force, is the best that cities can hope for is to minimize losses. The plaintiff will be the underdog and will have a good deal of credibility irrespective of the merits of the case. The way to deal with these problems is to prevent them by effectively managing well trained officers. The most cost effective way to provide training is to train trainers to conduct in-service training at the local level . Plans in this area have not worked out due to a personnel problem and are being reactivated. An effective in-house program should be in place sometime next year. In the meantime, training trainers costs money and it will be necessary to purchase some training until everything is up and running. Effective management also requires attendance at trade conferences and schools. Effective management techniques, current civil liability issues effecting law enforcement and new legislation such as the recent Americans with Disabilities Act and the Police Officers Bill of Rights are but two of the important developments police administrators are currently preparing to deal with. Cutting training dollars at this time is not in the best interest of the city. 4499 MISCELLANEOUS - Reduced $8400 This is the cost of membership in the Southwest Metro Drug Task Force for 1992 . Dropping out of the task force will have a negative impact on drug enforcement here in Shakopee. More importantly, illegal drug use is the number one crime problem in the country today and even if dropping out of the task force had no negative impact on drug enforcement in Shakopee, such an action sends a message of insensitivity to the problem 4511 CAPITAL EQUIPMENT - Reduced $800 The reductions in clerical personnel proposed herein will eliminate the need for one of the new typewriters previously requested. 1991 DIVISION TOTAL - $1, 244 , 415 PREVIOUS 1992 DIVISION TOTAL - 1, 225, 860 SAVINGS 18, 555 EARLY RETIREMENT SAVINGS 9 , 056 TOTAL SAVINGS FROM 1991 27 , 611 OR 2 . 2% PREVIOUS 1992 DIVISION TOTAL - $1, 225, 860 NEW 1992 DIVISION TOTAL 1, 103 , 270 ADDITIONAL SAVINGS FOR 1992 122 , 590 OR 10.0% TOTAL SAVINGS FROM 1991 150, 201 OR 12 . 0% v) 0 0LO 0tO 0 0 �7 0 o 0 LO C7 t0 H H H O 01 H CX z a w o 0 0 0 0 0 H 0 o o IC On OIn (.7 In N N N N Ol O 014 a U w z o 0 0 0 0 0 41 0 0 0 0 O1 M N In In C7 H 41 O 01 • 0 a U 0 0 0 0 0 41 0 0 0 co Ch V) V) V) O H z am a 0 0 0 0 0 Ina oo 0 0 0 C7 H p co CO co O M O RX U a 41 0 0 0 0 0 g 0 0 0 KM1-1 N N N (7HZ O 0141 % a I-) E-+ 0 0 0 0 0 0 0 0 0 0 0 0 0 Ei U) In O O N N 0 00 0 0 0 N W 0141 N O N Ol 01 O1 00 Ol In M l0 W () H 'J M N I- O M HH d' N O M z d' H H N N Cr) a H H H a a O w • U ,-a 00 0 00 0 00 00 0 0 0 0 0 0 0 H 0 MO 01 0 d' l0 00 00 0 0 0 0 0 0 1/40 E-+ i-1 N IX N In N H d' 0 d' 0 0 0 Ol 0) O N In In N W O 0 H Ei d' t0 In N N l0 MO MN d' Ol d d' Ol (.7 a O M R', l0 H In M N H H M d' d' In O (:4 a d' in 1D a M z 0 00 00000 0 00000000000000 0 0 0 0 H MO OOMNIn M 00000 OOOONOV000 H 0 0 d' U) H E-I H O CO N d' Ol co co O 1/40 O N N CO N O O H O In O 01 N CO O\ d' C7 H 0H0 OH OMHON O d' InmN r- H H ,zr HHH CO 1/40 In In O > 001 N H HN N N H 10 d' ai H (24 H H N a ra a 00000000 00000000000000000 000 0 0 W a No M O McIn 1/4o1/4oO O O o ocoo00I- 0100 o H H O 0 N 41 er4 1/40l1) NNInNCO NNOCOOd' OCOOOIHOInInCI HHM Ol N P4 H NN 01M01O1N cOccccHInd' N OlHHd' HHIn NN CO N M O 0 N N CO In N N N H H H H N H H H In In O D4 0 Ei N O1 O\ H H H < Z H U)• w 0 a i% 41 E-40 41 Wu) 0Z a W H U) WU) W (-6Z W cn 0zH zU) C7U41 U) U) / W w - Ei 41Z 41 (X 0 U) wwzWU) wo \zzH up a o g a HHH K4 C) H HZU) C7xgH , Ei z3usa K4 \ H rz E-( P4 O E-4 i- g G4 Q a W K4 a W E-4P4 H U) W U) Pi g y4 W GY AgW p: � K44HWx 4 a01ir IH4AE > Z J E 1 CJ) U W H W 4 EE-1Z U U Ca K4 (x z a E•{ H J O U) 4 K4 H U) H Z Z W U) H a g H H W U) g >g441HW WO 0 OpOI (XOW ZZE-lWOH a KC E-4 0 U O WWU) QU) af4Zx3 a U) ZrAWaaEiHaH J 00 as U H H O z U a U) U O H 41 ONO0HMOH a ON ONOOHO000OOHOI 4 H - U) O H M d' d' d' In In 4 H N M M H N N M In l0 I- CO c;) m Ol < H 4 H H H H H H H H H H H N N N N M M M M M M M M M M d' H In Ei o 0 K' K' d' v' K' d' a' d' O a' Kt .4' a' d' � d' � �rd a' a' d' d' .4. o d' o H Ei Ei Ei Ca MEMO TO: Dennis R. Kraft, City Administrat r FROM: Lindberg S. Ekola, City Planner RE: 1992 Budget 10% Reduction and 10% Increase Proposals DATE: July 29 , 1991 Attached are the budgets reflecting a 10% reduction and a 10% increase from the proposed 1992 Planning Department Budget as requested by the City Council . The following list identifies the results from each of the optional budgets: 10% REDUCTION BUDGET 1. Delete the University of Minnesota Planning Intern position ($2 , 900) . 2 . Terminate the Assistant Planner position after 7 1/2 - 8 months of service in 1992 . 3 . No reduction to the CDC/Program 176. 4 . Assumes a 10% reduction in both total Personnel Services and Total Supplies/Services divisions. 10% INCREASE BUDGET 1. Add a part-time Zoning Enforcement Officer to Current Planning/Program 174 ($13 , 480) . 2 . Add items that were deleted in the proposed 1992 Budget (telephone, dues and subscriptions, printing) . 3 . Add $750 to professional services. Also attached is a copy of a portion of the July 11, 1991 Planning Commission minutes. The Planning Commission has recommended that the City Council add to the proposed 1992 Budget for the Planning Department a Code Enforcement Officer. The Planning Commission has also requested that staff prepare a memo describing alternatives for the Zoning Enforcement position. This memo will be prepared for the August 8 , 1991 Planning Commission meeting. • * F * FFIFFFIFFFFIP4 * FFFFFFFF 0 0 \ V * * to * W w w l.) L.);la la w w N.) N Es-) * r r-• r t✓ t-•• N F-• t-• t r T. * H r-• H Vo ON VI w!l'J t t--• t--, w N F-• H En En F F F w r o c, OH r--• 0 N01000NO .o0 NtoE 0 1--• 0wt-• OON0 tri C) N t--, c);rroHHrroIV tdivtnzcn H � XM •-j] cn0En Z < � n 9 H79 r. o lz P:E � tr1 o :A 7d A 0 � r 0P1 - P1 < c1 F-1 PE-.1 tri zItnH Co 5 c70 � d vin H V) N rol z C CI) M K11h4t-� O o IV Ili H � � ;v � � 1-t a H t=]. H trl ro 9 0 tri ro r t1 c.-.) 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S O C• 0 r O cA p . - 01;wo 'n Ni \itN c �' N �id v o cs3 ,2,' 2i00C 0100 0 ° dip oIQ1 � 0ooi° � 0- o o 0 o o o �, • 41 i I N O O G o ,p u 0. O G -1; jN 6` Cc v.\ --� �� Fy 0 4. t K o I a (') 0 0 0 G o O r` •`.' i 1 a� U N: -, w S• 11 S."`. 6% G Q OO (} 'a �' o tJ I o ro 1/4.4 A v< O 0 0 p G C 8 O u G o o a c o 0 0 -1 -: c • - • r •g ' 4-to N w C - C1- -C t4 ^ us W co -� mtih T 1Cn Oz, o =o co Gco .ao 0o coo . o o op 0 1 r � E . 0 O.dGc0 pc cc. G Go d O GOa .r 0 0 G c o G r I J (-� c N w I -- HI 4)N c' U N `� w `"c � � � `� 11 N : o ..r c N 'L -c-, (1o o c� 0 0 0 0 IG c o O c o0 c - c l,� I CO OZC 1/4, s-' . i nr ' O ; 1l� v- < �' I 1S I I /r."----------7 Minutes of the Page -_: 7//// Shakopee Planning Commission July 1I, 1991 7 . If the applicant proposes to continue a home occupatio in the home, a conditional use permit for the home occupation must be obtained. Motion carried unanimously. VII. REVIEW OF CONDITIONAL USE PERMIT NO. 610 - FLOOD BROS : City planner stated that at the June 7 , 1991 meeting the Planning Commission passed a motion granting a 30-day extension of enforcement actions to Conditional Use Permit Resolution No. 610 and in that motion included a recommendation to revoke the conditional use permit if the Floods did not complete the move and cleanup by June 28 , 1991. The y ,lanner stated that based upon several field inspection , the applicant has not complied with the conditions set forth. Therefore, staff is recommending revocation to the City Council of Condition Use Permit Resolution No. 610 for the Flood Bros. City anner added that if Mr. Ferguson does not respond to the conditions of his Conditional Use Permit Resolution No. 448 , staff may also recommend to the City Council revocation of this conditional use permit. VIII DISCUSSION: INTERIM ORDINANCE REPORT: MCityanner stated that at the June Planning Commission meeting, several comments were made on the draft report. These comments have been addressed and staff recommends the Planning Commission pass a motion recommending to the City Council approval of the Interim Ordinance Report. Christensen/Lynch moved to recommend to the City Council approval of the Interim Ordinance Report. Lengthy discussion was held on various issues of the report. Comm. Christensen called for the question. Motion carried unanimously. XI. OTHER BUSINESS: CODE ENFORCEMENT: ,(..- • Chrmn. Kahleck stated that the Downtown Commission passed a recommendation for support of a code enforcement officer. This recommendation will go to the CDC. Comm. Christensen suggested involvement by specific organizations to add support for an enforcement officer. She added the officer would be to enforce the improvement and protect the appearance of property values and should not be Minutes of thepage_ 6 , Shakopee Planning Commission July ill 1991 / misconstrued with building violations or health and safety problems. A specific person is needed for zoning violations. Jane DuBois, Shakopee, addressed the Planning Commission and stated she has a direct interest in code violations because it affects the real estate market. She asked what type of code enforcement is currently in place. City planner stated that right now the code is enforced based solely upon complaints received. There is no active code enforcer at this time in the city. Mrs. DuBois stated her support of the "Truth in Advertising Law vs. Strict Code Enforcement" , rather than a code enforcer stating that currently a seller can't sell unless certain repairs are made, with the Truth in Advertising Law, a seller can sell if the buyer is aware and willing and the Purchase Agreement notes any repairs necessary. Lynch/Christensen moved that the Planning Commission recommend to the City Council the addition of a code enforcer to the planning budget for 1992 . Motion carried unanimously. IX. OTHER BUSINESS : CLEAN-UP OPTION: Discussion was held on the responsibility of clean-up and the city ' s responsibility in monitoring any contaminated sites. IX. REVOCATIONS : City attorney stated that the ready mix asphalt plant on County Road 83 went up without approval of the City Council. She stated the City Council will consider if the Planning Commission should review this conditional use permit for revocation. She said the issue will be brought before the City Council July 16, 1991. X. ADJOURNMENT: The meeting of Shakopee Planning Commission was adjourned at 10 : 30 p.m. MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Directo SUBJECT: Budget Alternatives DATE: July 26, 1991 Per your July 25, 1991 memo, I am submitting my budget alternatives for 10% reduction and a 10% increase. Total Public Works Department 1992 Operating Budget Request (includes 4 divisions: Engineering, Street, Parks, Shop) = $1, 019, 310. 00 10% Reduction = $101,931.00 Impact on Services: To reduce my budget by this amount, I would have to lay off approximately 3 employees. If engineering personnel are laid off, I would have to utilize consultants to assist in the design and inspection of Public Improvement Projects at a rate of 2 1/2 times the salary of the current engineering staff. If employees in the street and park department are laid off, services would be reduced in the following areas: snowplowing, mowing, street sweeping, sewer maintenance, tree removal and pothole repairs. City residents would need to accept a reduction in those services. Private contractors would not be an option as typically their rates for the same services are higher than having City employees perform them. If we can't afford to pay City employees, we certainly can't afford to pay private contractors. 10% Increase = $101,931.00 Impact on Services: With a 10% increase in budget, the Public Works Department could provide the following increased services. More in-house design of street projects saving money on assessments, etc. Ability to prepare long range planning on public improvements currently not being done due to workloads such as a Comprehensive Sidewalk Plan, Pavement Management System, etc. Implementing a Computerized Vehicle Management System and providing a more efficient and cost effective vehicle management program, parts inventory, etc. , thereby getting the maximum life out of vehicles and equipment. Implementing an extensive crackfilling program thereby extending the life of our pavements. Providing better service to the residents of Shakopee and quicker response to concerns regarding tree removal, sanding and plowing, mowing and athletic field maintenance. Implementing a City wide tree replacement and forestry program to beautify our streets and boulevards. These are just a few items that come to mind in the short time allotted to respond. I would like to point out that my submitted budget request for 1992 is already 5% less than 1991 levels as far as the operating budget goes. (See attached Summary) SUMMARY OF BUDGETS Department 1991 1992 Street Operating $547, 740 $505, 160 (-7.8%) Capital Equip. 70,900 156,800 (+22. 0%) Total $618, 640 $661,960 (+7. 0%) Parks Operating $237, 170 $225, 150 (-5. 1%) Capital Equip. 8 , 000 6, 000 (-25. 0%) Total $245, 170 $231, 150 (-5.8%) Shop Operating $ 70,470 $ 70,780 (+0.4%) Capital Equip. 27 ,970 -0- ( -0-) Total $ 98,440 $ 70, 780 (-28. 0%) Engineering Operating $217,910 $218,220 (+0. 1%) Capital Equip. 10, 000 12, 000 (+20. 0%) Total $227,910 $230, 220 (+1. 0%) Total Department Operating $1, 073, 290 $1, 019, 310 (-5. 0%) Budget Capital Equip. 116, 870 174 ,800 (+49.5%) Total $1, 190, 160 $1, 194, 110 (+0. 3%) MEMO TO: Gregg Voxland, Finance Director FROM: Mark McQuillan, Park and Recreation RE: 10% Increase of the Recreation Division Budget DATE: August 1, 1991 With a 10% budget increase, the Parks and Recreation Dept. would add another full-time employee to administer programs. An overall 10% increase to the budget would not be sufficient to add another employee without cutting in other areas of the Division. The starting salary for a recreation entry level position is between $22 , 000 - $25, 000, which is more than a 10% increase to the budget. Therefore, adjustments would have to be made in reducing supply cost and support staff. If needed, the receptionist time could be cut back to half-time. However, we could end up being back logged at times, putting data (registrations) in the computer. 4100 *Add a full-time employee at a professional entry level (+25, 000) position. Reduce the receptionist to 1/2 time (reasons (- 5, 000) are similar to the 10% reduction plan) . 4210 *Supplies reduced (-3 , 000) 4511 *Capital Equipment reduced. (-2 , 000) 1991 CITY OF SHAKOPEE PROGRAM BUDGET WORKSHEET 01 GENERAL FUND DIVISION: RECREATION OBJECT DESCRIPTION TOTAL PROGRAM PROGRAM 641 642 643 MGT PARK REC 4100 SALARIES FT $ 0 $94, 600 $ $ 4130 SALARIES PT 0 19, 000 4140 PERA 0 4 , 775 4141 FICA 0 9, 610 4143 MEDICARE 0 320 4150 HEALTH & LIFE 0 9, 000 4151 WORKCOMP 0 6, 160 **TOTAL PERSONAL SERVICES 0 $143 , 465 0 0 4210 SUPPLIES 0 6, 500 4222 MOTOR FUEL & OIL 0 600 4230 BUILDING MAINTENANCE 0 200 4232 EQUIP. MAINT. 0 1, 500 4310 PROFESSIONAL SERVICES 0 1, 750 4320 POSTAGE 0 1, 700 4321 TELEPHONE 0 2 , 500 4330 TRAVEL & SUBSISTENCE 0 700 4350 PRINTING & REPRO 0 3 , 500 4360 INSURANCE 0 3 , 500 4370 UTILITIES 0 250 4380 RENTS 0 0 4390 CONFERENCES & SCHOOLS 0 800 4391 DUES & SUBSCR. 0 600 4395 MERCHANDISE 0 675 **TOTAL SUPPLIES\SERVICES 0 $24 , 775 0 0 4511 CAPITAL EQUIPMENT 0 0 0 0 **TOTAL CAPITAL 0 0 0 0 ****DIVISION TOTAL $ 0 $168 , 240 $ 0 $ 0 MEMO TO: Gregg Voxland, Finance Director FROM: Mark McQuillan, Park and Recreation RE: 10% Budget Reduction - Recreation Division DATE: August 1, 1991 Attached is the 1992 Recreation Division Program Budget Worksheet that shows a 10% reduction in expenditures. Items that were identified to be reduced include: 4100 *Reduction in full-time staff (-$9000) The receptionist hours would be reduced to 3/4 time. When the Parks and Recreation Dept. moves into the new City Hall , there will be no need to have two receptionists. However, this person would be needed to assist putting data into the computer (registrations) and to take registrations during "peak hours" of the day which is generally between 9 a.m. - 4 p.m. The office hours would also change from the current 8 a.m. - 5 p.m. to 8 a.m. - 4 : 30 p.m. 4130 *There naturally would be a reduction of certain (-$1900) recreation programs and services, therefore, some activities involving part-time staff would be cut-out. 4210 *Supplies for the office and some programs would be (-$4170) reduced. 4511 *No Capital Equipment (no computer for Professional (-$2000) staff) 1991 CITY OF SHAKOPEE PROGRAM BUDGET WORKSHEET 01 GENERAL FUND DIVISION: RECREATION OBJECT DESCRIPTION TOTAL PROGRAM PROGRAM FACOVM 641 642 643 MGT PARK REC 4100 SALARIES FT $ 0 $74 , 600 $-5, 000 $ 4130 SALARIES PT 0 16, 600 -1, 900 4140 PERA 0 3 , 210 - 360 4141 FICA 0 5, 480 - 610 4143 MEDICARE 0 240 - 30 4150 HEALTH & LIFE 0 7, 890 - 780 4151 WORKCOMP 0 2 , 800 - 320 **TOTAL PERSONAL SERVICES 0 $110, 820 $9, 000 0 4210 SUPPLIES 0 8 , 000 -3 , 000 4222 MOTOR FUEL & OIL 0 600 4230 BUILDING MAINTENANCE 0 500 - 500 4232 EQUIP. MAINT. 0 2 , 000 - 300 4310 PROFESSIONAL SERVICES 0 1, 750 4320 POSTAGE 0 1, 700 4321 TELEPHONE 0 1, 700 4330 TRAVEL & SUBSISTENCE 0 500 - 300 4350 PRINTING & REPRO 0 3 , 000 4360 INSURANCE 0 3 , 500 + 100 4370 UTILITIES 0 180 - 70 4380 RENTS 0 0 4390 CONFERENCES & SCHOOLS 0 700 - 100 4391 DUES & SUBSCR. 0 700 4395 MERCHANDISE 0 2 , 000 **TOTAL SUPPLIES\SERVICES 0 $26 , 830 $4 , 170 0 4511 CAPITAL EQUIPMENT 0 0 -2 , 000 0 **TOTAL CAPITAL 0 0 0 0 ****DIVISION TOTAL $ 0 $136, 650 $ 0 $ 0 POOL 10% Reduction in the Pool Budget would result in reducing available open swim hours and staff time. Revenue from concessions and gate admissions will be affected dramatically. 10% Increase in the Pool Budget would allow the pool season to be extended or add new pool related apparattus (teardrop) or install a miniture golf course next to the pool (a revenue producer) or refurbish the bath house. e.g. Stucco the outside of the building; tile the entire floor; remodel the concession stand and improve security. MEMO TO: Dennis R. Kraft, City Administrator FROM: Judith S. Cox, City Clerk RE: 1992 Budget Plus/Minus Ten Percent C,(--/ DATE: August 7 , 1991 L In response to your request, the following cuts are identified to reduce the clerk' s budget (or increase it) by ten percent. Please keep in mind that legal filing fees, postage, printing & publishing, and postage machine rental include expenses for many departments. There is no way to cut these expenses and still operate. For example, we must publish ordinances, the annual report, notices for public hearings, some resolutions, etc. 1992 proposed budget = $105, 600. (Ten percent - $10, 560) 1992 Budget Reductions Voting booths $ 500 Filing fees 100 Travel & subsistence . . . . 170 Conference & schools . . . . 300 Dues & subscriptions . . . . 140 Temp. part-time salary . . 1, 000 Reduce staff time 8, 350 Voting Booths - we can live without purchasing some new voting booths at this time. Sometime in the near future we should start to replace the older booths a few each year. The $1, 000 temporary part-time salary was budgeted for summer help to work on microfilming. This is something we can live without for the time being. We should, however, plan on completing the microfilming of our permanent records - minutes, ordinances, resolutions, city code, agenda packets, and other important records. If for no other reason, microfilming would preserve our records in case of a fire. (We have had someone working on the microfilming who was employed by the County through a County grant. She is no longer available to do microfilming for us. ) Reducing the city clerk' s time to 4/5ths ($8 , 680 budget reduction) would result in administrative and/or statutory duties not being performed timely and/or not at all. Reducing the receptionist' s time to 3/5ths ($9 , 300 budget reduction) would leave city hall without a full-time necessary employee unless the receptionist' s duties would be shared by other departments. This would be something that the city administrator would have to look at in relationship to work loads in other departments. A budget increase of 10% ($10, 560) could be used to hire someone on a temporary basis to complete the microfilming of records in the clerk' s office, and/or begin preparing a records retention schedule for all departments. TO: Dennis R. Kraft, City Administrator FROM: Gregg Voxland, Finance Director RE: 1992 Budget 10% +/- DATE: July 29, 1991 As per your memo dated July 25, 1991, a 10% reduction in the budget for the Finance Department could entail the following cuts: $7,000 Capital Equip $3,500 Intern $500 Supplies $2,000 Logis $1,000 Conferences/Schools $6,000 Staff reduction The impact on service to the community would be largely invisible because this is a "staff" department versus a "line" and provides little in direct service to the residents. The operations of the department are largely essential services and not subject to reduction and include payroll, accounts payable, accounts receivable, special assessments, investing, insurance, budgeting and financial reporting. A 10% increase in the budget would go for staff increases and related costs. Objectives to be achieved would include a separate cashier/utility billing function resulting in improved receipting and flow of financial information. Improve the timing of and usefulness of information generated. Improve the review and analysis of operation and data generated. Provide time for the management of the department instead of just "fighting fires" . MEMO TO: 1992 Budget File FROM: Dennis R. Kraft, City Administrator RE: Budget Variations (+10% -10%) for 1992 Budget DATE: July 31, 1991 10% REDUCTION FROM 1992 SUBMITTED BUDGET - ADMINISTRATIVE DIVISION (121) The net bottom line for the Administrative Division is $205, 840. 00. This is the result of the total Administration Budget less Program 125 - Cable TV. 10% of this amount is $20, 580 . 00 . The cuts to be considered are as follows: 4100 - Personnel (Program 128) total elimination of this program including personnel supplies and services in the amount of $20, 690. 00. 4310 - Professional Services in Program 121 eliminate $160. 00. This results in the 10% reduction for the division. The impact of this reduction would be that there would be no formal Personnel Division. Recently the City has spent very little time in the process of hiring individuals. Legal matters relating to personnel issues will be transferred, in their entirety, to the City Attorney' s office. The clerical duties of the Personnel Coordinator and the handling of correspondence will be transferred to other clerical staff, including the City Administrator's Administrative Secretary and some additional matters will be handled by the Assistant City Administrator and the City Administrator. Furthermore, department heads will be given greater responsibility in the hiring of individuals in their respective departments. Likewise other issues which arise will have to be handled by existing staff, namely the Administrative staff and department heads. A review of payroll records has indicated that the Personnel Coordinator is probably spending about 25% - 30% of her time on personnel related issues with the remainder being spent on various accounting functions. This change only affects the personnel part (1/3) of that individuals position and does not affect the accounting tasks. The reduction in professional services would have a minimal impact on the operation of the department. In that specific services have not been identified at this point it is not possible to specifically delineate what the impact would be. 10% ADDITION TO ADMINISTRATIVE DIVISION BUDGET If an amount of $20, 580. 00 were to be added to the budget of the Administrative Division a part time Administrative Intern would be considered to be added to the department. It is estimated that this would be an amount of $5, 000. 00. Many of the tasks that are now not being done or are being done on a reduced schedule would be completed in a more efficient manner. The remaining amount of $15, 580. 00 would be spent on hiring a consultant to prepare a new compensation study and pay plan. The present plan has a growing number of faults. Many employees have taken additional Time Spent Profile (TSP) tests. This has resulted in many positions receiving additional points. However, positions that are benched marked remain at one particular level and there is no provision for them to be changed. This is resulting in an increased level of inequity amongst the various positions within the organization. MEMORANDUM TO: Dennis Kraft, City Administrator FROM: Karen Marty, City Attorney DATE: July 26, 1991 RE: 1992 Budget +/- 10% Attached, per your request, are two possible budgets, showing both a 10% increase in the Law Department budget, and a 10% decrease in the budget. This 10% difference is $9 , 995 . Please be aware that the 1992 budget submitted by the Law Department already is $9 ,790 LESS than the 1991 budget. If the Law Department were granted an additional 10%, I recommend spending it on a temporary employee to assist with revising and updating city ordinances. We need to put the entire code book onto computer, reformat it, and begin to revise it to make it more readily readable and usable by both City personnel and our citizens. We also need to modernize our subdivision regulations and the zoning ordinance. All of this is proposed to be done with current staff, but if a temporary employee were to work full-time on this project, it could probably be completed within one year, rather than over several years as currently projected. If the Law Department were to lose 10% of the requested 1992 budget, it would make things very tight. We already have decreased our budget nearly that amount. An additional 10% cut would require the following changes: (1) overtime would be prohibited; (2) all employees would be strongly encouraged to use up all accrued vacation time, in order to eliminate that budget item; (3) the Minnesota Rules, a set of the Rules in effect governing actions from environmental worksheet review to metropolitan significance determinations to pay equity, would not be purchased; (4) we would be very careful and frugal (beyond normal) in our purchase of supplies, making long distance telephone calls, or printing; (5) we would not use the City car, but rather would purchase all gas out of our personal funds; (6) we would not file any lawsuits after we ran out of funds; (7) all overnight travel or travel out of the metro area at City expense would be prohibited; (8) only the cheapest (not the best) conferences would be attended; Page 2 July 26, 1991 Dennis Kraft (9) the City would drop its memberships in the National Institute of Municipal Law Officers (an excellent source of sample ordinances, national legal information, legal opinions, etc. ) and the Municipal Amicus Program with LMC; (10) we would not purchase the supplements or pocket parts to some books. If you have any questions regarding these, please let me know. Signed i _ ,�/� f1 Karen Marty, City Attorney KEM:bj m [BUDGET] Attachments cIP BH 0000 N O 0 0 N O O O O O O O O O O O O O O O N C'1 1In OI k0 .'t VI CNI V1M e-1 0 in CO rl t!1 v1 0 -4 In v3 ‘,0 trl V3 ON 00 M W N r-1 N r1 t'--- N r4vD M C/) O rl 0 r1 a a w W 0 rI H 03 04 Z 000M4-40M0 0 UINNMO to 0ONoo4 v) 0000 0 0 0 � H 0 00 M O M O\ 0 M M In �D \D 0 �7 r-4 ON 0ri rl 0 00 N N M O3 1/1 A > 0 r1 H CO ,-� 0 .'7 H OG 0 i CO A a 000 M M O M O M000000000000 O 0 0 rn .-1 0OO 'Or-IOMN N 01110001n01,1000 In In In N 0H %.0 ra0 CllnlnMcn 0D ,-4 cn 03 03 NO SMO OI� Q. 4 v3 0 a '-d r-1 rJ 0 H 0 r-I 0 N HW Z � Z Cl)v) rHw za O � w a v, 040 w <4w W O H WHU '4g z N ' OtU/ 0 V pNWW 0 C �1 a a FOH � � o WWH .-1WW0N 04 I-1 cn W cn ut3 z 44 W cn zz 1-I rl z v) C9 0 cn cn w 0W .1 H 1-41-1 ‘13 z 0 cn Cl) W W v) W o \z Cl) .-a H0Z0Z 1-4 .a H H w ..a ►a R: a w .-a w w H `� `� c1 Cl) H 0 Cz Zc 06 z 0E-4 0Q .WagHv) zwv") ' w H H 1)4 H W 00 O 'r7oaRiwwg (Y, zoH ,� 0 0 0 w cn0Haax3o Cl) v) Zwa ..aHH0H0Az 04 C w H A H 04 0 w o 0 MI cn H N w O N 0 0 r-1 0 r-1 M .a O cV N 0 ID rl 0 0 0 0 r-I O' ,-.] ,-I ON r-I Ca 4 ri N M r l rl N Min 1D ON O' ON .4 r-1 H > •"I 0 0 0I-I r-4 ri r1 ra r-d ,--1 .--1 H N N N M cn cn cn M M M M4 E-+ In 44444444 0 4444 t4 �74 �7 �7 �7 �7 0 -7 H ri A U ON O in C el O N (N 000000000000 O 0 0 N dlo N M 0 t--1 M W N ^ N N �D 0 .--1 0 VD V) r� U c4 w a a a Z 00 4 0 0 M O I-- 000000000000 0 O O I H 0 �y CO .-1 N- M ‘O O N O M M .-1aCYai O O NO (Orn 00 co43 (,D %O 'O N M N M r� O N O 0 0 A > 0 r- 4 N. r�-Ico M' A a r-I 00 .* cMOMO 0 000000000000 0 0 0 0 a 0 %0M0M0 M 0 00 %00 NOIf .t n tr) in tn 0H co O N Ill M rl 0 M r-I O N M O rA r 4 N '.O '.O 0 co H co A ON > m 41 H W Z H W 0 O Z rzZU) 0Htn4 E. W o to ZO < w W A 044 0 to < 4 o v) f4 0 v) 0 H 1-4 1-4 I--I A F-I co z0 r� aaH a Oa � `iX � wwwHwwx Lsa a E~-I to W u10 Z < w to 7 H i—i z o o U to En W O4 a W Z Z Oto to W w W to (4 O \'Z N a H Z V W Z `- U 43 a a LY. 4443 .-14441H Cl) CY 1-1 W En El 1zZ Z W E-4 0C�9 .w-1 < - ) z wa) H a a a co < > 41414100 0 ,ti. 00'fxW W mWZ00H a < H 0 0 0 A En0aa = 3U a toZ Was HHa11U AZ 04 0 '-I H a a H W A t<.) Z C14 0 N W 0N0 .--40r--IM a 0NNOto .-i0000 .-ION a ,-4 a 1-4 W 01 0 r--I r-I r-1 In in r-I U) <' ,-I N M r-1 r� N M Ill '.0 (TN 0' 0 ' 1-1 ON1. El N N N M M M M M M M M .f H In H ,"I 0 0 4444 .444 H0 444444444- 44 .4 0 - 0 1--1 H H Q Memo To: Finance From: Building Official Subject: Budget Reduction as per Council Date: 7/26/91 BACKGROUND The Council has directed us to prepare two additional budgets, one ten percent below our original budget request and one ten percent above our original budget request. There is absolutely no way my department would benefit from an additional ten percent increase over my original budget request. An additional ten percent would not improve user service or be in the best interest of the tax payer. I have already provided you with proposal "B" as an alternate to our original budget request. This budget substantially reduces my department costs and affects services provided to the user very little. The amended Government Building budget is attached, I removed all of the maintenance costs from the congregate dining. As you know, we have a contract with the owner to provide these services and he may want to file for specific performance. I have removed the request for carpeting and a new door at the library. This will save $11, 500. 00. However, if some one falls because of defective carpeting, we may have to litigate. I have removed the request for a sump pump in the basement of the youth building, the result may be continued flooding of the basement. I also have removed our maintenance and supply cost from the original budget request. This will require the youth organizations to be responsible for these two areas. However, based on the level of cleaning and repair displayed by these organizations in the past I am not to sure how this would be accepted. ** * t * t t t t t t t t t * t t t t t 0 O r * Ln H * W W1.. 1.rW W NN N * r+rrrr W t.. 'D H V CT c.n W N... WWI-. H vent t 0 v * 0ZI '- O 00001-' ONOO 0 rOr0p cl N CI rn r * A ).. CrroHHromeaen H ... r a r .•1 Z Pi x1 m a.O C C r Orsi. e+m1 > `1 z Mi .•.. .n P- r C 0 ..4 .11 m 0 tn b H C .r-. E H 71 ' M ' t7 r t, C)- m ro M 7. .. r 'V .H•. `yLZ r o CO • z i' 0 z r m r H a m ►r•' cn een enn � G. ri c) a. n 0 ' G. 4,1 .4 .1 o r Z cn rn to 02 y am z en en 7 \L. ) H 4- C H Z»Z C X m Cc ..r a 0 A 0.m 0 c'1 '' m alttn c.D cn ` tv v O v-- 7 z (p s° .011- ,J (h e' I. F-' . 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J I-' F--' CO N F-' .p 'ac L� a O O N Co 01 N C)U• t' o � ;S4oo (n (n ootnom w0 .= ;p O O o 0 0 U -CO -CO• i , 1 �.. \ NJ N '•d /J I-' N M' J W N 1-0/1 W 1 f� Ji ^.-1OUiO NJ .PC) l0WI" (S O •' Z U O O O LnO O UtO� „ /� O O 0 f ,r-., to -Cl) i hd1 --, 1 -4 PzI • nt C I 1 Y r� �r O O p ' _ •� 7 .• 1 f w� Q Memo To: Honorable Mayor and Council Members Dennis R. Kraft, City Administrator From: Marilyn Remer Re: Budget Information Items Date: August 9 , 1991 Background T.U.G. a group of meto area personnel professionals meets monthly to discuss current personnel issues. Information The August 8th meeting provided some information relative to the City' s budget planning process which council and staff might find helpful . 1. A Pay Equity Committee has been drafting RFP' s for updating of the 1985 Comparable Worth Compensation Study. Their recommendation to the group of MAMA Managers will be to have the Hay Management Group do a study of 40 Benchmark positions and establish job values at the cost of $60, 000. In addition, P. D. I. (previously Control Data Business Advisors, who completed the current pay equity plan) would complete a study which would include simiplifying the lenghty TSP' s and would also add a RESPONSIBILITY Factor for Supervisors into the valuation formula, which is missing from the current plan. This is estimated to cost $30, 000. The group of MAMA Managers will authorize these studies. If 30 cities participate, the cost for each city would be $3 , 500. Over 100 cities and counties participated in the previous Control Data Study. The Committee is recommending cities include $3 , 500 in their 1992 budget for this update to the Comparable Worth System. 2 . A Committee of Personnel Directors also did an extensive study on Early Retirement Incentives. (Attached for your information) . Discussion which ensued relative to the Early Retirement Incentive update revealed that many cities have serious misgivings concerning adding retirees to their health insurance plan, (if the provider will even allow it) citing the unknown long-term cost factor and the fact that studies have shown that having retirees on health plans tends to increase costs which are then subsidized by the other employees. Several individuals who are or have been employeed by cities who allowed retirees on health plans, stated they would strongly advise against it and would not do it if they had to do it over again. 3 . Contract settlement for 1991-92 for City of Maplewood 1991 Clerical/Technical - 4% 1991 Public Works 4% Lump Sum 1992 Clerical/Technical - 2% eff. 1/1/92 and 1/2 % eff. July 1, 1992 1992 Public Works - 1 1/2% on base and 1% lump sum eff. 1/1/92 . cc: Ed Winfield FOR DISCUSSION PURPOSES ONLY July 30, 1991 TO: TUG Members FROM: Early Retirement Subcommittee SUBJECT: EARLY RETIREMENT INCENTIVES Objectives A. Save money--replace employees at the top of a pay range with employees at the bottom of the pay range. B. Reduce potential for Workers' Compensation claims or other injury/illness that will affect the City's experience rating. Replace those with greatest health risks, especially in Police and Maintenance. C. Assist those who want to retire, but cannot afford to because of the recent escalation in insurance costs or because they have a "pre-existing condition" that makes it difficult to find coverage. D. Encourage employees to do long-term planning for retirement. E. Downsize work force. F. Improve productivity. Although a city may want to target an early retirement program to specific individuals whose produc- tivity is low, the program may also attract some highly pro- ductive employees. Alternatives I . Short-term A. Enable retirees to remain on the City's group insurance plan. 1) Allow participation only until eligible for Medi- care or age 65 , whichever occurs first. Some employees with basic pension plans may not be eligi- ble for Medicare. Early Retirement Incentives Page 2 2) Provide a narrow window of opportunity for partici- pation rather than making a continuing commitment to future retirees. Use the window to target those the City wants to encourage to retire. Advantages a) Ensures retirees are able to obtain insurance coverage. b) Ensures reasonable premium cost. c) Provides for a lower premium cost than other sources of insurance. Disadvantages a) Higher health care usage by retirees can increase premium costs for active employees. B. Enable participation in the group insurance plan, and pay a portion of the insurance premium; i.e. 1) single coverage premium amount, or 2) something less than the single coverage premium to reflect the probable increases in premium costs for active employees caused by retiree claims. Advantages a) Provides a greater benefit ( incentive) for retirees. Disadvantages a) Is more expensive than Alternative 1. b) If the City is locked into paying the single premium, or a specific percentage of the pre- mium, the costs could increase dramatically over the period during which the retiree is eligible for the benefit. C. Provide an increased amount of severance pay to partial- ly offset the costs of retiree health insurance. 1) Provide a narrow window of opportunity for this alternative also. Advantages a) Avoids the problems associated with allowing retirees to participate in the group insurance plan. b) The cost does not automatically escalate with the cost of insurance. Early Retirement Incentives Page 3 c) Provides retirees with a choice of how they want to use the retirement benefit, rather than locking them into an insurance benefit. (This is more important for dual income families where one spouse may already have a retiree insurance benefit. ) Disadvantages a) "Large" severance payments may be viewed nega- tively by the public. b) If retiree benefits do not include group insur- ance coverage, retirees may have problems in obtaining insurance at a reasonable cost. This problem is offset by retiree eligibility for participation in the State's PEIP insurance program effective 1/01/92 . Also, those who have risk factors that keep them out of the PEIP can participate in the State's high risk insurance pool. Both of these have reasonable costs. c) The retiree may spend the severance pay on a non-insurance item, then be unable to afford insurance. D. Provide a choice between B and C. II . Long-term A. Encourage early saving for retirement. 1) Provide some type of a match of the employees ' deferred compensation contributions. 2) Enable conversion of unused leave time to deferred compensation. LOGIS Health Care Group Cities Those cities who belong to the LOGIS Health Care Group must meet two requirements in order to provide retiree insurance. 1 . The employer must pay 100' percent of the single coverage premium. 2 . The LOGIS Group must approve the formal early retirement pro- gram. Issues/Considerations A. If retirees continue on the City's group insurance program, they could cause an increase in premium costs for the active employees. The active employees could end up subsidizing the retirees. Early Retirement Incentives Page 4 B. The City could give the active employees an opportunity to choose whether to subsidize the retirees--knowing that they may be eligible for the same benefit when they retire. C. If the amount by which the retirees cause premiums to increase could be accurately identified, the retirees could be required to pay at least a portion of the increase amount. D. A city should analyze the difference in total costs (city and employee) when deciding whether to use the severance pay alternative versus the insurance contribution alternative. The severance pay alternative leaves the retiree on his or her own to obtain insurance coverage. Because this coverage may be significantly more expensive than group coverage, the severance pay amount may need to be significantly larger than the cost of group insurance in order to provide a sufficient incentive to potential retirees. A "break even" point for comparing costs is whether the higher costs for non-group coverage exceed the group insurance cost increase caused by the retiree participation. Even if the retirees cause a very small increase in premiums, the total cost increase is large because it affects all participants in the group plan. E. How would a retiree incentive severance payment relate to other severance pay a person may be eligible to receive; i.e. sick leave or vacation pay out? Is it in addition to other severance? F. Early retirement incentives should only be used to meet pre- determined objectives. G. An incentive program should be implemented only if the bene- fits outweigh the costs. This analysis may need to include costs and benefits that are difficult to quantify depending on the objectives of the program; i.e. productivity. H. An employer may want to place a cap on the number of retirees that can participate in the group insurance program at any one time; i.e. 5 percent of the total number of active employees participating in the group insurance program. Discussion 1. Questions, concerns. 2 . Examples of programs--successes. 3 . Examples of problem areas. 4 . Examples of implementation issues, problems. la 11 Capesius Agency, Inc. YOUR INDEPENDENT INSURANCE AGENTS P.O. Box 97, Marquette Bank Bldg., Shakopee, MN 55379 Tel. (612)445-1922 July 26, 1991 To: City of Shakopee Subject :Keeping retired employees on the City' s Group Insurance plan. Lynn Beer , our account representative, called in response to your question on allowing employees who have met their years of service requirement to retire and stay on the City' s group insurance plan. Blue Cross and Blue Shield will amend the contract to allow this provision to be added . Their requirements are: 1 . The City must contribute at least 50% of the premium. 2 . At least 80% of those eligible for this retirement option must be insured . The reasons for these requirements are simply that Blue Cross dosen' t want only those employees who have health problems to take advantage of this option because of the adverse effect it would have on the City' s loss ratio which could cause the rates to go up for all the employees at renewal time. Another consideration for the City is that by allowing these employees to remain on the plan it may, at sometime, limit the number of companies who would be willing to provide coverage for the city if there were a high number of retired employees in the group plan. Some companies would refuse to bid on the cities group health package if it contains retired employees. These are some of the concerns to consider before exercising this option. If you have any questions , please let me know. Be Regards, #sej PWpM.g Gary Monnens Capesius Agency Inc. 6. MEMORANDUM TO: Dennis Kraft, City Administrator FROM: Karen Marty, City Attorney DATE: July 24 , 1991 RE: Questions Raised in July 23rd City Council Meeting At the Committee of the Whole meeting last night, the City Council asked a number of questions relating to financial matters. Answers to the legal questions are set forth below. 1. Q: Is there a minimum salary necessary for City Councilmembers to participate in PERA? A: Participation in PERA is governed by M.S .A. Chapter 353 , and requires a minimum annual salary of $5, 100 . A second option exists for a pension, however, under M.S .A. Chapter 353D, the public employees defined contribution plan. No minimum salary is specified in that law. 2 . Q: What are the minimum and maximum number of members to serve on the HRA? Must the members be City residents? Can the City Administrator be a member? A: Under Minn. Stat. Sec. 469 . 003 , Subd. 5. , the HRA "shall consist of five commissioners, who shall be residents of the area of operation of the authority. " Therefore, 5 members must be appointed, who are City residents, and the City Administrator may be a member only if he is a City resident. 3 . Q: May the members of the HRA be compensated or given a salary? A: Minn. Stat. Sec. 469 . 011, Subd. 4 provides for compensation of HRA members, but does not authorize a salary. It specifies that "Each commissioner may receive necessary expenses, including traveling expenses, incurred in the performance of duties. Each commissioner may be paid $35 for attending each regular and special meeting of the authority. The aggregate of all payments to each commissioner for any one year shall not exceed $2 , 500 . " 4 . Q: May park dedication fees be used directly for salaries and programs (operating expenses) , or must they be used for acquisition and development? A: Minn. Stat. Sec. 462 . 358, Subd. 2b allows the City to require dedication of subdivision land. The dedication is "for conservation purposes or for public use as parks, playgrounds, trails, wetlands, or open space . . . " The City is given the option "to accept an equivalent amount in Page 2 July 24, 1991 Dennis Kraft cash . . . [and] any cash payments received shall be placed in a special fund by the municipality used only for the purposes for which the money was obtained . . . " The statute thus requires that the park dedication money be used for "parks, playgrounds, trails, wetlands, or open space" . These listed items are physical entities or land, not operational or activity expenditures for programs or employees. Signed /e' • 1 Karen Marty, City Attorney KEM:bjm [24CCL]