Loading...
HomeMy WebLinkAbout08/27/1991 TENTATIVE AGENDA ADJ.REG.SESSION SHAKOPEE, MINNESOTA AUGUST 27, 1991 Mayor Gary Laurent presiding 1] Roll Call at 7 : 00 P.M. 2] Recess for a meeting of the Committee of the Whole a] Approve Minutes of August 6th and 13th, 1991 b] Discuss Management Analyst Report c] Discuss 1992-96 C.I.P. d] Continued discussion on the 1992 Budget - bring previously distributed budget materials - (to be discussed at meeting on Wednesday, August 28th, as requested by Mayor Laurent) e] Other business f] Adjourn to Wednesday, August 28, 1991 at 7 P.M. 3] Re-convene 4] Resolution No. 3456, Setting Proposed Maximum 1991 Tax Levy, Collectible in 1992 5] Set Date for Public Hearing on 1992 Budget 6] Other business 7] Adjourn Dennis R. Kraft City Administrator Management Analyst Final Report Operational Review and Recommendations City of Shakopee 00,27- ahv rm ..:- — lk %'‘If;:N."1-4t% A # il‘;:44-%./ 7,4/11 . I. *‘i („) , 4-,. , , August 27, 1991 CONTENTS Page 1. REORGANIZATION 1 2 . ALTERNATIVE SOURCES OF FUNDING 2-3 3 . FIRE DEPARTMENT Aerial Ladder Truck 4 Pumper 5 Second Fire Station 5 Fire Department Operations 6 Memo: Notes on Aerial Reliability and Problems 8-9 4. EARLY RETIREMENT 10-11 Option 1 12-13 Option 2 14-16 Option 3 17-18 Option 4 19 5. CAPITAL EQUIPMENT EXPENDITURES 20-21 6. ALTERNATIVE PROVIDERS OF SERVICE 22-23 7 . SOURCES OF INFORMATION Reorganization Reorganization Given the size of the reductions needed to achieve a balanced budget, reduction of positions in the following departments is recommended (listed in the order of suggested reductions) : Streets .75 Inspections 1 Administration 1 Recreation 1 Parks 1 Streets 1 Engineering 1 Total 6.75 Any requests for temporary employees or additional personnel should be approved by the City Administrator before being submitted to the City Council . Justification for such requests should include estimated increased revenue or services provided. It is my observation that the Finance Department needs at least 1.75 Full Time Equivalents (FTE) , beside the Department Head (total department should be 2 .75 FTE) . The current Accounting Clerk position should be expanded to full time in the Finance Department, i.e. , increase Accounting Clerk to full time and reduce the Personnel position. I believe the Accounting Clerk can effectively handle any payroll functions, and department heads can assume responsibility for the personnel function within their own departments. On occasion, some outside consultants may need to be hired to fulfill special personnel projects. Additionally, serious consideration should be given to reorganizing to reduce the number of department heads from the current nine positions to five positions. Such a reorganization would increase the effectiveness of both the City Administrator and the Department Heads. I suggest that the five departments be organized as follows: 1. Finance 2 . Public Works (same as current structure) . 3 . Administration, including City Clerk. 4 . Public Safety, including Police and Fire. 5. Development/Enforcement, including Planning, Buildings and Inspections, and Recreation. Such a reorganization would reduce the number of people reporting directly to the City Administrator, and group logical departments together under one department head. Additionally, such a structure would put more responsibility for communication and directing with department heads, while allowing the City Administrator more time to manage. -1- a U c O c E 7 .... r.: 7 c, I (3., v 7 i01 o ( va 0 > �! EL U tcn La. om` C 01 m 0 + C, ° a a 0 U °' O O m U C m m e m m 0 O > O'5 m ° Q • > .. SCAi m Em _ 13 -c CIQ , m >. o I = yQ - CO Q - U C Q C :-.7..1 EQI1) C 7 ° E 1j 9 E o < Cj V % `,QE E m "1 cl0 = -3 E 1 ° c� 0 U ;, m Q CryU o w c Tri ° c c .+ L C V V - U a .4, co -4-) c U — CD Q (I) i.-- 1---i CD Q- U C__) C i _ Z Q; o 0 C Q Q ' v y CID G1 C C m o Q Oa — 0 -0J) 0 •-• z I 43 E CL I -+--) —4 1 -i v I I E o s 0 ~ 1--4E- 1 1---1 ) Ucy' p........6.•. CD � 1 O 1 L —. L 0 Ii Cf Q l C C �- C) m o m m C c a E c — C C C ...7.. 'S t a o m v+ E rO 0 O O .• J _Y C N- UCm ti 0W_ 01C O V) 0ca.D > � -2,m C C m C71 v c -- E — > C731 o ..1 C =+l QoE — v — nQ1 9EOE1 . - U -L =oUE1 1 cl, d O m al C vO U 0 UU m v >, E .- m ov � °' «,C o I iE ° 9 c 1 3a '0 0 V L C ,� 4-, m U W U C0 n- cn 0 M l --,__ b -0 a) u) — Iv) O 0 a a-o o la) m Ti ch o Ucco �5 co a 5 ,i, c -- c — c " c --as--� O) c4 D 0 c - c� •5 a) csa. ds � `0 .2E � '0 0) a mE cc ►_ ET) Q Y . Q L1 E < a) O < as O ,O O c 0 Cn O J I ds a m .-) U = a. U a , a)as c a) a) U c_ I F.d O 1I F...{ . U 1 E Q N C - z _U CZcz M+l ~ "� i C ! �C Q) V I.* Y�I C 0 0 0) E co) E ►...o � , C r - Uc 0 ,1 ", iU P....4 OC C _C LL O) c CI c cn •o a) a� u) c 0 C 0 as Q u) C C) 7 C0 p O c s O) o_ C) 3 o c c E cn > o I w a) c _ E 0 _...'E o a) C cn 0 O = 0 ~' Q) a 0 0 a) fj� UO .7) .- _w 05 _C .N0 a) c c a5 0 C 00, c U . 0 .� � Q .Tts E C) E 0) E 0 = EE 0E a � �— `� SII. c .0E 2E '- E EE _ E n) a) rY �" C 0 C c0 0 o C o 0 0 p o Q- - ca c4 cods �a cB UU tLU w U < 0 0 U) co 2 I Alternative Sources of Funding Alternative Sources of Funding Given the current revenue shortfall in the City's budget, another serious look should be taken at alternative sources of funding. Swimming Pool The recommendations submitted by staff for 1992 Swimming Pool rate increases seem very reasonable and should increase revenue as indicated. Some additional suggestions for this area: 1. Do not raise Reduced Pass prices from $5 to $10. The increased revenue is minimal ($150) , and I believe conveys the wrong image to the citizens. 2 . Do not raise other rates beyond what is suggested because the proposed rates would be competitive with surrounding communities. Rather, increase advertising and merchandising to increase revenue. 3 . Outline a plan of capital expenditures to bring the operating condition of pumps, filters and pool into acceptable range. In Mark McQuillan's memo to Dennis Kraft dated 8/14/91, it was indicated that the Pool Manager has found pieces of the liner floating at the surface. During the summer, I brought my family to the pool for an afternoon. My wife commented that she would not return because of the dirty water and bugs seen in the water.Look for an increase in repeat customers as the pool ' s physical condition improves. Planning Department The fee schedule update previously submitted to the Council includes some very sound suggestions. While this is an expansive area on which a lot of review time could be spent, several changes should be made immediately: 1. Appeal of City Administrator's Decision and Appeal to City Council . The proposed fee for each of these areas would be increased to $100 from the current fee of $0. Such a change would indicate to citizens that considerable staff time is expended on these appeals, and that petitioners should be convinced of their cases ' merit. 2 . Comprehensive Plan Amendment. Suggested increase from $0 to $500. The reasoning above applies here also. A great deal of thought and effort by many interested people have been expended on the Comprehensive Plan, and while changes certainly are possible, the changes require much effort on the part of City staff. During my short experience working for the City, I have seen the -2- amount of work that staff must do to get ready for a decision that has been appealed. Because of the current fee structure, a citizen has no reason not to appeal every decision right up to the City Council. -3- Fire Department Fire Department Following is a list of the current fire equipment owned by the city: Year Equipment Purchased Comments Pumper 1976 wish to replace in 1992 Pumper 1985 * 85 ' Aerial Platform 1975 wish to replace in 1991 * Rescue Truck 1986 * Pumper 1974 * Tanker 1987 Pumper 1963 grass fires Grass rig 1990 * Grass rig 1983 Pick up 1972 Rescue II Step Van 1991 Hover Craft 1989 Dive Boat 1968 replace in 1993 Squad Car 1986 * This equipment or its replacement scheduled to move to the new fire station in 1994-1995. Aerial Ladder Truck There has been considerable discussion about replacing the current 85 foot aerial platform truck. This 1974 demonstration model was purchased by the City in 1975, with delivery taken in 1976. At that time the City paid $180, 000 for the truck. The truck is currently in need of extensive rebuilding/repairing to make it a reliable asset. An estimate of $85,000 was received to rebuild the cab to current OSHA standards and repaint the truck. If additional cabinets are added to protect the ground ladders carried on the truck, the estimate increases to $145, 000. Additional repairs needed include rebuilding the rear trunnion (axle) , rebuilding the hydraulic system that raises and lowers the main ladder, and replacing the water tank. I spoke with Jim Kirvida of Custom Fire Company regarding the repairs for the aerial truck. Jim was very familiar with the City's fire equipment, and has sold additional equipment to the City. Jim advises that the current aerial truck is a good candidate for rebuilding because its basic components (transmission, engine, pump and chassis) are known brands. Additionally, because of a currently strong market for second hand fire equipment, the City could sell the truck now for nearly what it cost originally. If extensive repairs to the truck are made, the City could still expect to recoup almost the original cost plus the cost of the repairs. Jim advised that for $175, 000 to $200, 000 -4- the truck could be completely rebuilt, and the City would have a very serviceable unit. The current truck has limited ability to rescue victims from the upper stories of a building. The ladder is able to reach only one window on a upper story. Before additional windows could be reached, the ladder must be lowered and recradled, then the truck moved to reach the next window. A truck with a longer ladder could reach several windows from one location. A new 110 foot aerial platform is estimated to cost $400, 000 to $500, 000. The price could be reduced by carefully designing specifications, and having the specifications reviewed by a fire consultant before the specifications are let for bids. See the attached memo from the Fire Chief detailing the problems with the current aerial truck. Pumper The Fire Department is proposing to replace the pumper which was purchased in 1976 and has made over 3700 runs in 15 years. A new pumper is estimated to cost $200, 000, which does not include a trade-in estimated at $20, 000. The current pumper needs extensive repairs including body work, tank replacement and pump rebuilding. Jim Kirvida advised that this unit is a good candidate for rebuilding also because it has good brand name basic components. Jim believed that for $100, 000 this pumper could be rebuilt completely and brought up to current specs. Jim advised that several cities have had trucks completely rebuilt with good results. He listed Maple Wood and Woodbury as recent examples. He also indicated that Lakeville was bringing one of their trucks in this week for rebuilding. The Council might decide to have one truck rebuilt, and how the finished product performs. Based on those results, a decision could be made on the second truck. Second Fire Station Current and projected city growth indicate that a second fire station should be considered for the 1994-1995 time frame. ISO concurs in this assessment. Costs for this new facility and equipment are estimated as follows: land $200, 000 building 1, 200, 000 includes 10, 000 square foot facility at $100 per square foot, with furnishings. -5- pumper 235, 000 would be stationed at new facility and provide first response for all alarms from that station. training tower 50,000 $1, 685, 000 The City should consider financing this amount by holding a referendum and then issuing general obligation bonds. The bonds, payable in 5 years or longer, would conserve the fund balance and shift the financing responsibility to those who will benefit from the new station. Again, a fire consultant could provide valuable insight and possible savings by reviewing the specifications before they are let for bids. Fire Department Operations The Fire Department appears to be a well run volunteer group. These suggestions are offered as a result of observations and discussions with other cities' fire departments. 1. Police could be dispatched to fire calls. Since the police are already in their squad cars, they will probably arrive at the scene sooner than the fire truck. The police could confirm the type of fire, e. g. , structure versus car, which would help the fire chief know that the right number and type of fire units have been dispatched. 2 . Additionally, police could carry hydrant wrenches in their squad cars. Once the police are on the scene, they could locate the nearest hydrant, identify it with flashing lights, and have it ready to open as soon as the hose is connected. 3 . Finally, after the second fire station is built, the contingent of volunteers should be divided into two different companies, each based in a separate station. The new pagers, scheduled for purchase in 1992, will allow each company to be paged separately, resulting in the best usage of the volunteers. In extreme emergencies, the chief could activate additional volunteers as needed. This division of volunteers could be done as soon as the new pagers are purchased, allowing the Chief to begin to determine how many volunteers should be paged for each type of alarm. -6- Fire Chief Letter Following is a memo written from the Fire Chief to Gregg Voxland that lists all possible deficiencies with the present aerial truck. It is my understanding in talking with Jim Kirvida that most of these things would be remedied during the rebuilding. However, some things, e. g. , pump panel layout, probably would not be changed. I don't believe the things that could not be changed would seriously effect the performance of the fire department. -7- SHAKOPEE FIRE DEPARTMENT Department Memo TO: Gregg Voxland FROM: Charles E. Ries, Fire Chief DATE: October 22 , 1990 RE: Notes on Aerial Reliability and Problems CHASSIS Springs and rear suspension - currently truck needs rear suspension and trunion repair. Tires - rear tires need replacement. Questionable ability to increase load with larger ladder. Load Limits if restored - Questionable ability to increase load on chassis with larger ladder. Overall truck height - present chassis is to narrow for proper seating and dressing and too high for proper clearances. BODY (cabinets, hose bed, seating, etc. ) Rusting - current cab area and cabinets are rusting and need replacement. Seating - current jumpseat seating area is too narrow and is unsafe for dressing in. Large diameter hose lay out - present hosebed is too high, not easily accessible and does not layout hose properly. Ground ladder exposure - ground ladders are exposed to the elements causing accelerated deterioration. Water tank 14+ years old - average life expectancy 15-20 years. Current noise level excessive - current design exceeds noise level standards. PUMP (entire water flow system) Tested and rebuilt - pump overheated approximately 13 years ago and was never rebuilt. Pump was flow tested two (2) years ago and will not pass flow test. Pump panel layout poor - does not meet department standards. -8- LADDERS Ground ladders - all ground ladders need testing. Will not meet present NFPA standards. Aerial ladder - has been repaired numerous times. This is one of the first platforms and vehicles LTI made. Bucket level system - has design flaws breaks pins and does not level property. Ladder lifting system - has design flaws. Hydraulic system - needs to be replaced (hoses, valves, etc. ) Safety - new ladder truck incorporate higher safety standards and features not available when this vehicle was built. Visibility - bucket in front of driver blocks view. 85 foot capacity - limits the ability of our Department. Bucket breathing air - Needs upgrade to work with current buddy breathing system. Hydro test presents air cylinder. Being without an aerial ladder for any length of time seriously impedes out ability to perform our job. -9- Early Retirement Early Retirement Before beginning to put together some inducement plans, I conducted a survey of possible retirees. Every questionnaire that was returned listed insurance availability as a concern. As Mrs. Remer points out in her memo dated August 9, 1991, cities have misgivings about extending insurance benefits to retirees because of the unknown long term costs and the possible negative effects on the group rates caused by retirees. Additionally, I don't believe potential retirees are looking for a lump sum severance amount, which would be taxed at their current rate. An ideal situation would have the City use severance dollars to purchase an annuity payable to the retiree. The annuity would pay a monthly amount to the retiree which could be used to purchase insurance. Currently the City offers the following severance pay to an employee who quits: 1. Compensation for all accumulated unused vacation leave, and 2 . One third the value of accumulated sick leave to a maximum of 960 hours. Police officers are paid 45% of accumulated sick leave to a maximum of 960 hours. Based on the survey results, it was determined that two employees are most likely to retire very soon if an acceptable plan is made available. Before any plan is offered to employees, it should be made abundantly clear that this is a one time offering and that no precedent is being established by this program. The Council may decide not to offer any program again. If the Council decides to offer a program again in the future, that program may or may not have the same provisions. Potential retirees should evaluate this program on its merits and make a decision on this program without trying to guess what may be offered in the future. I did some preliminary investigation into an insurance program offered by the State, called Public Employees Insurance Plan. Currently individuals may not join this program unless the group they work for belongs to the program. However, as of January 1, 1992 , the provisions will be changed to allow individuals to join. No rates were currently available for individuals, but this could provide a good alternative for individuals after the first of the year. Additionally, I was made aware of insurance being offered to any person by Blue Cross. The rates for this program, called Aware Care, seemed reasonable, especially for higher deductible coverage. It is my personal belief that many retired people in reasonably good health are able to cope with higher deductibles, but are mainly concerned with a catastrophic occurrence which could wipe out a life time of savings. This plan offers such assurances. The retirees could be made aware of these options, but any insurance choice would be their decision. On any of the following options, I suggest that a short "window of opportunity" , i. e. , 30 days, be offered during which interested employees could indicate their acceptance of the program in writing to the City. Such a window might be offered from October 1 to November 1 with effective date of retirement being January 1, 1992 . Provisions of any program offered would be: 1. No more than one person per department may retire within a six month time frame. 2 . Persons will be allowed to retire based on their seniority in their department subject to the determination of the department head regarding delivery of service to the community. Following are some alternative options. Early Retirement Option 1 Years Service Sick Leave Max. %Payback 25 960 100% 20 960 90% 15 960 80% Employee Number 1 (Over 15 years of service, accrued sick leave and vacation estimated as of 1/1/92 , current rate of pay approximately $20/hour without benefits) Costs 430 sick leave hours X 80% X $20/hour = $6,880 170 vacation hours X 100% X $20/hour = 3,400 Total Severance Benefit $10,280 Severance Benefit under current plan: 430 sick leave hours X 33% X $20/hour and vacation as above 6,266 Cost impact above current severance plan $4, 014 Savings Assume this person retires and is replaced by another in the department. After promotion, second person is not replaced for 3 years. Computation includes salary plus 25% of salary for benefits. Savings Year 1 $50, 000 Savings Year 2 50, 000 Savings Year 3 50, 000 Total Savings $150, 000 Less: Cost of Retirement 4, 014 Net Savings this person $145,986 Employee Number 2 (Over 25 years of service, accrued sick leave and vacation estimated as of 1/1/92, current rate of pay approximately $23/hour without benefits, police officer) Costs 960 accrued sick leave hours X 100% X $23/hour = $22, 080 250 vacation hours X 100% X $23/hour = 5,750, Total severance benefit $27, 830 Severance Benefit under current plan: 960 sick leave hours X 45% X $23/hour and vacation as above 15, 686 Cost impact above current severance plan $12 , 144 Option 1 (continued) Savings Assumes position not filled for 4 months: $4314/month X 4 months $17,256 After 4 months, fill with entry level person: $1132/month X 8 months 9 , 056 Savings Year 1 $26,312 Savings Year 2 $1132 X 4 = $4, 528 $ 941 X 8 = 7, 528 12, 056 Savings Year 3 $ 941 X 8 = $7, 528 557 X 4 = 2,228 9,756 Total Savings $48, 124 Less: Cost of Retirement 12 , 144 Net Savings this person $35,980 Total Savings this option $181,966 Early Retirement Option 2 This option is intended to address retiring police officers only. Per their contract, they can accumulate more than 960 hours of sick leave. Basically, this option would pay a retiring police officer for all accumulated sick leave. Savings are realized by not replacing the retiree immediately and by replacing the retiree by an entry level officer. This option should be recommended only after careful consideration of the following: 1. This option would set a precedent that other retiring officers would expect to be offered to them also. 2 . This option treats police officers differently from other city employees, who are not currently able to accumulate more that 960 hours of sick leave. Option 2 is explained in detail in the following pages. 1991 WAGES INCLUDING FRINGES (Assuming 4% increase) Annual Monthly Diff/mo. Deputy Chief 56,264 4, 689 Sergeant 54,822 4,569 Senior Patrol 51,772 4, 314 Patrol over 36 mo. 49, 134 4. 095 219 Patrol over 24 mo. 45, 083 3,757 557 Patrol over 12 mo. 40,475 3, 373 941 Starting Patrol 38, 170 3, 182 1132 EXAMPLE #1 Sick leave on books as of 12 31 91 = 1,700 hrs 1700 hrs x $21.22/hr. = $36, 074 960 hrs. x 45% = 432 hrs 432 hrs x $21.22/hr = $9, 167 $36, 074 - $9, 167 = $26,907 $26,907 divided by $4, 314/mo inc fringes = 6.23 mo EXAMPLE # 2 Sick leave on books as of 12 31 92 = 1360 hrs 1360 hrs x $19.88/hr = $27, 037 960 hrs x 45% = 432 hrs 432 x $19.88/hr = $8588 $27, 037 - $8588 = $18,449 $18,449 divided by $4314/mo inc fringes = 4. 27 mo PROJECTED SAVINGS YEAR SAVINGS PER MAN SAVINGS FOR YEAR 1992 $1132 x 8 mo. =f $ 9, 056 $ 9,056 1993 $1132 x 12 mo. = $13,584 $21, 112 941 x 8 mo. = 7,528 1994 $1132 x 12 mo. = $13,584 $29,332 941 x 12 mo. = 11,292 557 x 8 mo. = 4,456 1995 $1132 x 12 mo. = $13,584 $33 ,312 941 x 12 mo. = 11, 292 557 x 12 mo. = 6,684 219 x 8 mo. = 1,752 1996 $1132 x 4 mo. = $ 4,528 $22,504 941 x 12 mo. = 11, 292 557 x 12 mo. = 6, 684 219 x 12 mo. = 2, 628 TOTAL $115,316 Early Retirement Option 3 Years PERA Service Sick Leave Max. % Payback 20 and above 960 100% 15 to 19 960 90% Employee Number 1 (Over 20 years of PERA service, accrued sick leave and vacation estimated as of 1/1/92, current rate of pay approximately $20/hour without benefits) Costs 430 sick leave hours X 100% X $20/hour = $8, 600 170 vacation hours X 100% X $20/hour = 3 ,400 Total Severance Benefit $12 , 000 Severance Benefit under current plan: 430 sick leave hours X 33% X $20/hour and vacation as above 6, 266 Cost impact above current severance plan $5,734 Savings Assume this person retires and is replaced by another in the department. After promotion, second person is not replaced for 3 years. Computation includes salary plus 25% of salary for benefits. Savings Year 1 $50, 000 Savings Year 2 50, 000 Savings Year 3 50, 000 Total Savings $150, 000 Less: Cost of Retirement 5,734 Net Savings this person $144, 266 Employee Number 2 (Over 25 years of service, accrued sick leave and vacation estimated as of 1/1/92 , current rate of pay approximately $23/hour without benefits, police officer) Costs 960 accrued sick leave hours X 100% X $23/hour = $22, 080 250 vacation hours X 100% X $23/hour = 5,750 Total severance benefit $27 ,830 Severance Benefit under current plan: 960 sick leave hours X 45% X $23/hour and vacation as above 15, 686 Cost impact above current severance plan $12 , 144 Option 3 (continued) Savings Assumes position not filled for 4 months: $4314/month X 4 months $17, 256 After 4 months, fill with entry level person: $1132/month X 8 months 9 , 056 Savings Year 1 $26, 312 Savings Year 2 $1132 X 4 = $4,528 $ 941 X 8 = 7,528 12, 056 Savings Year 3 $ 941 X 8 = $7,528 557 X 4 = 2, 228 9, 756 Total Savings $48, 124 Less: Cost of Retirement 12 , 144 Net Savings this person $35,980 Total Savings this option $180, 246 Early Retirement Option 4 Provisions Same provisions as with options previously listed, but the following additional provisions are added: 1. This option would pay the retiree 100% of sick leave to a maximum of 960 hours. 2 . This option would pay an additional 20 hours of sick leave for each year of service to the City of Shakopee, up to the maximum sick leave accumulated by the employee. Employee Number 1 Costs 430 sick leave hours X 100% X $20/hour = $8 , 600 170 vacation hours X 100% X $20/hour = 3 , 400 18 years service X 20 hours/year X $20/hour = 7 , 200 Total Severance benefit $19 , 200 Current plan costs (from Option 1) 6 , 266 Cost above current plan $12 , 934 3 year savings (from Option 1) 150, 000 Less: Cost of retirement 12 , 934 Net Savings this person $137, 066 Employee Number 2 Costs 960 sick leave hours X 100% X $23/hour 22 , 080 250 vacation hours X 100% X $23/hour 5, 750 30 years service X 20 hours/year X $23/hour 13 , 800 Total Severance benefit 41, 630 Current plan costs (from Option 1) 15 , 686 Cost above current plan $25, 944 3 year savings (from Option 1) $48, 124 Less: Cost of retirement 25 , 944 Net Savings this person $22 , 180 Total Savings this Option $159 , 246 Capital Equipment Expenditures Capital Equipment Expenditures On August 6 of this year, the Committee of the Whole approved capital equipment expenditures of $580, 000. As the City considers reduction in all areas, this area should be no exception. As an outsider observing this process, I am amazed at the lack of structure and policies in this area. Some suggestions for basic policies: 1. Justification for proposed purchases should be a mandatory submission. This justification should include expected life of the asset being purchased, expected operational cost per year (or cost per hour of use) , alternatives available (lease or rent) , and condition of the asset being replaced. Purchase of high priced seasonal items is difficult to justify and this subject is addressed further in the section entitled Alternative Providers of Service. 2 . Set a maximum fleet size and do not exceed it. It appears that purchasing cars or trucks is a relatively easy process, and the fleet size has grown as a consequence. I believe the City would be hard pressed to justify keeping a vehicle which accumulates less than 5, 000 miles per year, but there are currently several such vehicles in the fleet. As an alternative, job descriptions could be structured for an employee to provide his own car with the City reimbursing the employee for miles driven while on the job. By setting a maximum fleet size policy, the City should expect that for every vehicle purchased, one will be traded in. Thus increasing the fleet would be a very conscience decision, and done only with good justification. 3 . Vehicles should be rotated from an department of high use to a department of lower use. A policy should be set that the City will accumulate the maximum number of miles on a vehicle while it is under warranty. Thus departments that put a lot of miles on a vehicle will get new cars. After a few years, the vehicle will be cycled to other departments. This policy does not treat all employees "fairly" because some will always get new vehicles, while others will usually get ones cycled down, but the policy promotes the best use of business assets and should produce savings in the long run. 4 . Review of large dollar bid specifications by an outside specialist. I refer specifically to items costing more than $100, 000. By their nature, some items are so technical and so long lasting, most people will participate in the purchase of such an item only once during their service to the City. The City is currently considering the purchase of 2 major fire trucks and a second fire station. These items definitely fit the "technical and long lasting" conditions mentioned, and review by an outside specialist would probably result in savings. The specialist could know of specifications that would be less costly than those -20- proposed by sellers or people with less experience. The City should also consider getting a second opinion on the bids received for such items. -21- Alternative Providers of Service Alternative Providers of Service I think the City can provide very good levels of service, and reduce capital expenditures by considering alternative providers of service. Some areas to be considered include snow plowing, grass cutting, street repair and street sweeping. At lease two metro cities, Burnsville and Plymouth, feel strongly that a city can save money by using private contractors for snow plowing. Burnsville contracts for snow plowing on 25% of its streets. Some preliminary calls to contractors indicated there are contractors willing to bid on such projects. Since I was able to provide only general information, rates were quoted in the $55 to $65 per hour range. The contractors had many questions about number of miles they would contract to plow, show up time, guaranteed hours and width of plows required. Specific answers to these questions would give the contractors comfort in lowering their bids. Since the City uses most of its trucks year round for plowing in the winter and park and street maintenance in the summer, purchase of trucks is easier to justify. But, to the extent that any truck is not used year round, the justification for outside contractors is easier. I believe a another potential area for savings would be in contracting out jobs that use seasonal equipment, such as mowing or street sweeping. Some initial inquiries to contractors for mowing brought estimates of $25 to $40 per hour. Again the contractors had many specific questions (How many acres could they bid for? How often would the area have to be mowed?) . Again, I think bids would be lower when answers to these questions are worked out. I think savings could be justified easier in this area because of the lower rate per hour and the fact that the City may be able to avoid buying some mowers. At lease two contractors were very interested in bidding on street sweeping. This area seems like a good candidate for outside contracting because the City would be able to avoid purchasing an expensive piece of equipment ($95, 000 scheduled for 1994) which is only used on a seasonal basis. If the sweeper was used full time each spring for six weeks, full time each fall for four weeks, and one day a week for 20 weeks, it would be used 560 hours a year or 5600 hours in 10 years. The $95, 000 purchase price divided by 5600 hours gives a figure of $17 per hour. Add to this an operator' s salary and benefits of approximately $17 per hour. Other costs to be considered include maintenance, insurance and gas. Additional consideration would be -22- given to the fact that the City would have $95, 000 in the bank (less the yearly bill to the contractor) . The $95, 000 opportunity cost allows the City to spend the money on other projects or even to save the money in a contingency fund. The total of these costs could be compared against a contractor's initial bid of $55 per hour. The City may have additional concerns about response time or quality of service, but given the number of contractors willing to bid for these services, a mutually agreeable contract could be negotiated. -23- Sources of Information Sources of Information Dave MacGillivray Springstad & Associates 223-3068 Jean Schultz Program Coordinator Scott County Community Service 496-8260 Jim Kirvida Customer Fire (715) 291-2555 Dawn Karl Compensation Department State of Minnesota 296-2398 PERA 296-7460 Foss Sweeping and Plowing South Minneapolis 724-8597 estimated $55/hour Clean Sweep Kyle Hanson 13480 Pioneer Trail Eden Prairie 941-1440 Horizon Landscaping John 8700 10th Ave. South Bloomington 854-8700 Lawn Mowing estimates Demco Services John Newport 8121 Stevens Ave. South Bloomington 881-8018 Don Garrison Lawn & Snow Plowing Service Don Garrison 4707 W. 124th Street Savage 894-2246 Alpine Lawn Care Bob 11701 Edgewood Avenue Champlin 933-2332 ServiceMaster Lawn Care of Eden Prairie Bill 6560 Undestad Eden Prairie 934-1487 I a I 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 , 72,2Y2LAt,/_. /9 Gary'Monnens Capesius Agency Inc . • ' 'fir t, t �; "t'cf-f ci ? wry PEIP \ .�c "� U''Ol,1 I'i ii)lic July 19, 1991 I .iicl)lO""ti littitir,uu c• Dear Friend of Affordable Health Care: My new position as Commissioner of the Minnesota Department of Employee Relations gives me the opportunity to update you on a program I'm very enthusiastic about: the Minnesota Public Employees Insurance Program (PEIP). As a former municipal manager, I know how difficult it can be to find solid, high quality, competitively priced insurance coverage for a group of public workers. To respond to this problem, the Minnesota Legislature created PEIP, and the results thus far have been very encouraging. PEIP is operated and serviced by some of the insurance industry's top administrators and providers, and it's backed by a long-term commitment from state government. In terms of participants, the plan is growing steadily. In fact, we now serve 42 public jurisdictions and nearly 2,500 plan members. We also have positive news for groups re-enrolling for their second year. Rate renewal increases have been held below the national industry trend of 20-23%. This indicates long-term rate stability — good news for those groups being hit with large rate increases now. After a year and a half of full service, PEIP has met and exceeded the intent of the legislation which created it. We're not only providing affordable coverage, but we've introduced competition to the marketplace. We know of many instances in which a group's current carrier has lowered their bid to beat PEIP's rate quote. For this reason alone, PEIP should be on your list when it's time to review your current health insurance coverage. If you would like a personal presentation for your board, commission or bargaining unit, we'd be happy to arrange one. For more information on PEIP's rates, benefits, providers, etc. just call PE1P's toll-free marketing hotline at 1 • - 800-829-5601 . I thank ou for your time and continued interest. r f. !c r/'✓t l,C,�t,ti Y Sincerely, (AA i l ` Z //, - Jct.— Linda Barton f Et t Corn missioner, Minnesota Department of Employee Relations 200 Centennial Office Building • 658 Cedar Street • St. Paul. MN 55155 •6121296-0633 Blue Cross and Blue Shield • of Minnesota P.O. Box 64560 • St.Paul,Minnesota 55164 Dear Subscriber: Thank you for contacting Blue Cross and Blue Shield of Minnesota. I am enclosing the information you requested. Please call me (toll-free) at 1-800-382-2000, extension 5030, or dial direct at (612) 456-5030 if I can be of additional assistance. Sincerely, 91 ccC ' h-e- ..a.4 Customer Service Representative Enclosure X5203 (8/90) As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement plan? Benefits I would like to see as part of an early retirement plan would mainly have to deal with health insurance . Severance pay is already pretty good . One would get paid for unused vacation and I believe 1/3 of unused sick leave . At 15 years of employment one earns 4 weeks . And if one has been healthy over the years , the unused sick leave could mount up. I am to the point where I do not earn sick leave because I have reached the maximum that will be accumulated! 2 . If an acceptable program was approved by the City Council, when would you expect to retire? I have no immediate plans on retiring. I wouldn' t even begin thinking about it for at least seven years . 3 . Other comments or suggestions: Will the city really save by encouraging early retirement??? When positions are filled, usually credit is given for past experience putting a new employee in the middle , if not higher on the pay plan. If this continues to occur, new employees will reach the top of the pay plan in a shorter time and the potential savings in a reduced salary to employees is greatly diminished. 4. Name (optional) Judy Cox 5. Please return to Ed Winfield in envelope marked to my attention by August 5, 1991 As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement plan? Cin ., 1- 2 . If an acceptable program was approved by the City Council, when would you expect to retire? A i jh.7; ;,1`` �` _ _. ` :/ 4.i 3 . Other comments or suggestions: • Cr • 4. Name (optional) LP 0- 5 . Please return to Ed Winfield in envelope marked to my attention by August 5, 1991 Ed: Try this for the insurance retirement formula: 10 years of total service with the city, 55 years old and qualifies for a retirement annuity, City will pay 50% of insurance cost. 15 years of total service with the city and qualify for a retirement annuity, city will pay 75% of insurance costs. every year over 15 years of total service, age 55 and qualify for a retirement annuity the city will pay 75% of the insurance costs and an addition five percent per year for each year over 15 years. Try to stay away from words like''continous full time service and specify "total years of service". there are some of us who worked and still work as permanent part time employees like the engineering secretary and some who worked three or four days a week for a number of years as permanent employees, and some of us who took a 3-4-5 month sabatical which interupted "continous service" . .6--C - Cott✓ 50c_.os& 0 5 015441 i l c 10 TS (5 t-SCS Z s ( b o?a As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement plan? M ed► cA, L 'R�j-,g , `r P �-. 5).4t.i) ((-3 1<.z " o . Sc -e t",f3n� O QL:.Z , r 4S 4.4 i'G•' US�N�- 2 . If an acceptable program was approved by the City Council, when would you expect to retire? A , A1C n o vt '7 / y 3 . Other comments or suggestions: \414 K _ t Act.) +�5 • S�r� C. J • r � 4. Name (optional) bronn 5 . Please return to Ed Winfield in envelope marked to my attention by August 5, 1991 As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement plan? t /DOA w c (LAL !mo 1)7 c f4' r0,,. Crv��rc� 31 L'a[h.�� / (5Q. L,..L tA y � d / a 61) ep-°"4J 15.01J LA TZ 2 . If an acceptable program was approved by the City Council, when would you expect to retire? 3 . Other comments or suggestions: 4 . Name (optional) L:).7 5 . Please return to Ed Winfield in envelope marked to my attention by August 5, 1991 As a potential Early Retiree: 1. What benefits would you �ke to see as part of the arly Retirementplan? ,7,o,c, S 44c,17--;�' ,T� /fit i".fr, /7 1- -.0C,,07,571)/7 /i cc aJli " r"if j, 2. If an acceptable program was approved by the City Council, when would you expect to retire? Rj 1 1 G44 r /./9:17- /JAL/� 9 I ! 70 /9/9 f2 /t)0 771c___/c_.- ) ( o c 7- I I5'cr/ T iuAo= (-45;) /- 7,-- . 3 . Other comments or suggestions: 4 . Name (optional) �/ 411111F 1 i i 5 . Please return to Ed Winfield in envelope marked to my attention by August 5, 1991 As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement plan? $5000 per year of service. Health Insurance - Full paid hospital coverage for self and spouse. Life Insurance to age 65. 2 . If an acceptable program was approved by the City Council, when would you expect to retire? Bill Doege - by age 50 (1993) Todd Brinkhaus - by age 55 (2010) Wally Lureen - within 1 year (1992) Harry Pass - by age 60 (1994) Howie Heller - by age 61 (1999) Dick Cheever - by age 62 (1998) Jerry Dircks - by age 59.5 (1992) Joe Honermann - by age 55 (2006) 3 . Other comments or suggestions: Paid 100% of accumulated sick leave. Settlement of wages. 4 . Name (optional) Same as #2. 5 . Please return to Ed Winfield in envelope marked to my attention by August 5 , 1991 As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement plan? C:440, 3 7-41.iL,<< %4-_ 01 I 7....i'147 .4::t 2 . If an acceptable program was approved by the City Council, when would you expect to retire? 3 . Other comments or suggestions: 4 . Name (optional) 5 . Please return to Ed Winfield in envelope marked to my attention by August 5 , 1991 As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement plan? 7111)-4.,,Q4k r /-jev S 100 “ A. v.!c R S / 0 0 wl `. �..� J��� c� c� 0 �L � S � � �ti�u--� - 2. If an acceptable program was approved by the City Council, when would you expect to retire? e/ //0 /aic 3. Other comments or suggestions: l t l r C- t Ct-fa_ a h✓( R i S o r y�.st l,J 0 Lkt C, `�U L v v I vt S V 0- Crj1-411; Lc 4/1. .__C 4. Name (optional) 5. Please return to Ed Winfield in envelope marked to my attention by August 5, 1991 As a potential Early Retiree: 1. What benefits would you like to see as part of the Early Retirement anyhers health lan? insuranceor concern coverage. Iffarprogram c uldlrement be developed that ears is like many would allow for family coverage after retirement until mddi-care is available it be a huge incentive to retire early. I would also like to see expanded coverage to dental and eye coverage. 2 . If an acceptable program was approved by the City Council, when would you expect to retire? January 1, 2001 3 . Other comments or suggestions: I believe that I have a sick leave balance equal to $20,534.95 as of 07/01/91. I believe that I am entitled to those funds because I earned them as a benefit. Why not allow me to use those dollars to ease the financial burden of early retirement. I think early retire- ment for police officers is very important. Due to the nature of our work it is sometimes very difficult for senior officers to maintain a level of self motiva- tion that will keep them productive. 4 . Name (optional) Jerry Poole if 5. Please return to Ed Winfield in envelope marked to my attention by August 5 , 1991 QUESTIONS AND ANSWERS REGARDING THE 1991 EARLY RETIREMENT INCENTIVE PROGRAM Question 1. Does the incentive program include the state paid contribution for dependent health and dental insurance? Answer: Yes, if the employee currently has dependent coverage. There is no provision to permit retiring employees to add dependent coverage before retirement. Question 2. Does the incentive program include state paid life insurance? Answer: No. However, retirees are allowed to continue their basic and optional life Insurance coverage at their own expense for 18 months . The Request for Continuation of Coverage - Special Retirement (PE 00112-02) form has a block to indicate the employee' s decision. Question 3. Will the state paid dependent coverage continue when the retired employee' s coverage expires? Answer: No. It will expire when the employee coverage expires. However, dependent coverage may be continued by paying the health insurance company directly at the spouse' s expense. Question 4. Can I change insurance plans before retirement? Answer: Yes . Each retiree is allowed an open enrollment period 30 days prior to retirement for the purpose of changing insurance plans . Question 5. How do I apply for the early retirement incentive? Answer: 1 . Confirm your eligibility for the early retirement incentive with your personnel office. 2. Confirm your eligibility for a retirement annuity with your retirement system or association. 3. Apply for the retirement annuity. 4. See your Designated Department Insurance Representative (DDIR) to apply for the continuation of coverage with the state paid contribution. NOTE: The DDIR will use a form titled Request for Continuation of Coverage - Special Retirement - Employer Contribution for this purpose. The DDIR should check the box marked "Other" at the top of the form, and write "Special Retirement 1991 " on the blank line. Be sure to indicate your decision regarding the continuation of life insurance coverage at your own expense. You will be billed once , and receive payment coupons and a list of payment due dates. If you wish to change insurance carriers , you must also complete a form titled State Plan Group Application. Changes in carriers become effective on the first day of the payroll period following the employee ' s retirement. Question 6. If an employee is currently on leave of absence, could they take advantage of the incentive? Answer: Yes . Employees on leaves of absence may receive the incentive if they return to active employment prior to retirement. Because the law provides for continuation of the state contribution, employees on unpaid leaves of absence must return to active employment for at least one week in order to have the state contribution resumed before they retire. - 2 - Question 7. What employment counts for purposes of meeting the 25 year service requirement? Answer: All employment, continuous or not, in the executive, legislative and judicial branches of state government or employment by MSRS, TRA or PERA. State service for the purpose of qualifying for an early retirement incentive is NOT necessarily the same as the employee' s length of service for vacation accrual , their state seniority date, their service credit for retirement purposes or any other service requirement. State service does not include Internships, breaks in service, or service in metropolitan agencies, quasi state agencies , the University of Minnesota or local government. For the purpose of calculating state service for this incentive program, employees may also receive credit for additional state service based upon the accumulated vacation for which they will be paid on their retirement date. This additional credit is calculated by dividing the number of vacation hours for which the employee will be paid by 40 and multiplying the result by 7. This is the number of additional full days of state service credit the employee may receive for purposes of qualifying for the incentive. Question 8. Could an employee use vacation to stay on the payroll past September 30, 1991 , as long as their last day of work is on or before September 30, 1991 ? Answer: No. The law requires that the employee actually separate from state service on or before September 30, 1991 . Question 9. May I ask my appointing authority to defer payment of my severance pay? Answer: Yes . If the decision to delay these payments is made unilaterally by the appointing authority, the employee may receive a tax advantage for the portion of severance pay received in future tax years . If the decision to have severance payments delayed is made by the employee, no tax advantage will be realized because the severance pay is considered to have been received as of the date of retirement if the employee has the option of receiving it immediately. - 3 - Question 10. May I ask my appointing authority to defer payment for my accumulated vacation hours? Answer: No. Unlike severance payments, accumulated vacation must be paid at the time of separation from state service. Question 11. Will the Department of Employee Relations schedule additional sessions of the pre-retirement courses? Answer: We have informational sessions scheduled for June which still have space available. See the attached schedule for dates, times , and locations , and reserve your space through your personnel office. Additional informational sessions may be offered, depending upon demand. Question 12. How will my insurance change after retirement? Answer: The future cost and availability of specific health and dental plans may change due to changes in the offerings and contribution formulas in collective bargaining agreements or compensation plans established under Minnesota Statutes , section 43A. 18. Question 13. I am receiving a partial state paid contribution because I work part-time. What level of state contribution will I receive if I choose to retire early under this program? Answer: You will continue to receive the partial state paid contribution. - 4 - Question 14. Exactly when will my coverage expire? Answer: Medicare coverage becomes effective the first day of the month in which you become 65. On the same date you will become a regular retiree and will pay the insurance carrier on the first day of the first payroll period of the month. If your birthday occurs very late in the month, your state paid coverage may expire two or three weeks before your birthday. Question 15. If I have single coverage now, may I add dependent coverage at a later date? Answer: Retirees may only add dependent coverage if their spouse loses other group coverage. They cannot add it because of marriage or during the annual open enrollment. Question 16. Whom do I call for additional information? Answer: Retirement eligibility and annuity computation questions should be directed to your retirement system or association. Minnesota State Retirement System - (612) 296-2761 Teachers Retirement Association - (612) 296-2409 or toll free 1-800-652-9747 Public Employees Retirement Association - (612) 296-7460 or toll free 1-800-652-9026 Questions about your eligibility for the early retirement incentive should be directed to your personnel office. Questions regarding eligibility for insurance and post-retirement benefits should be directed to your DDIR. 45 WPPCOMP - 5 - SUMMARY OF 1991 EARLY RETIREMENT INCENTIVE PROGRAM A. THE INCENTIVE An employee who meets All of the eligibility requirements listed below will continue to receive the state paid portion of health and dental insurance premiums for coverages in effect at retirement. The benefit will continue until : 1 . the first day of the first pay period of the month when the employee becomes 65 years old, or; 2. the employee chooses not to receive the annuity for which they applied, or; 3. the employee becomes eligible for employer—paid medical/dental insurance from a new employer, or; 4. the death of the employee. Retired employees are not eligible for state paid life insurance coverage , but may continue life insurance coverage at their own expense . B. ELIGIBILITY REQUIREMENTS The incentive is available to employees who meet All of the following criteria. The employee must: 1 . have been employed in state government 25 years as of their retirement date (Note: Employment in state government includes employment in the executive, judicial , and legislative branches , as well as employment by the Minnesota State Retirement System, the Teacher' s Retirement Association or the Public Employees Retirement Association. ) ; 2 . retire on or after their 55th birthday and before their 65th birthday; 3. be eligible for state paid health and dental insurance benefits at the time of retirement; 4. be eligible for, and apply to receive , a retirement annuity immediately upon retirement, and; 4. retire on or after July 1, 1991 and no later than September 34. 1991. C. PENSION BENEFITS Acceptance of the incentive does not affect the calculation of the employee ' s pension benefits . Employees who choose to accept the early retirement incentive will receive the same retirement annuity they would otherwise receive based upon their age and service . L). LAW. ( Ht a its"TIENT iNCL. .11VE, al : E. BAhl.iAi gratu:.r AGREEMENTS AND COMPENSATION PLANS Some collective bargaining agreements and compensation plans provide for early retirement incentives for specific employees (e.g. , law enforcement personnel , correctional officers , faculty In the State University and Community College Systems) . The new legislation allows those employees to choose the incentive package provided by the collective bargaining agreement or compensation plan, or the incentive provided by this program. The empioyee cannot receive both incentives . Employees who were previously eligible for an incentive under a collective bargaining agreement or compensation plan and elected not to take that incentive may take advantage of the incentive provided by this program. E. SEVERANCE PAY AND PAYMENT FOR ACCUMULATED VACATION Acceptance of the early retirement incentive does not affect an employee ' s eligibility for severance pay or the calculation of that pay, as determined by the applicable collective bargaining agreement or compensation plan. Most contracts and compensation plans allow the appointing authority to spread severance payments over periods of 2 to 5 years . Check the applicable collective bargaining agreement or compensation plan for specific time periods over which payments may be made. Retiring employees are to be paid for accumulated vacation hours , up to the limit established in the applicable collective bargaining agreement or compensation plan. Questions regarding this program should be directed to your personnel office. 45 WPPCOMP - 2 - 5:Cr.Ona.,c,4-86, DEPARTMENT : EMPLOYEE RELATIONS - 2ND FLOOR STATE OF MINNESOTA CENTENNIAL BUILDING, 658 CEDAR Office Memorandum DATE June 17, 1991 TO Personnel Directors and Designees All State Agencies FROM : Linda M. Barton. �( kE' Commissioner `�� PHONE 296-8366 SUBJECT Additional Information about the Early Retirement Incentive Program This memo is to provide responses to questions received since the distribution of my June 5th memo on the Early Retirement Incentive . The first memo provided answers to 16 commonly asked questions . The questions and answers in this memo are numbered so as to avoid confusion. Question 17 . I meet the eligibility criteria for the early retirement incentive but I am being laid off prior to July 1 , 1991 . Is there any opportunity for me to receive the early retirement incentive? Answer : Yes , you may retire after being laid off and receive the state contribution to health and dental coverage under the early retirement incentive, provided you are still receiving the state contribution on the day you retire. If you choose to retire after layoff, your name will be removed from all layoff lists and you will no longer have rights to be recalled to state employment. Question 18. Part of the early retirement incentive law provides the incentive to certain employees who retired between January 1 , 1991 and May 20, 1991 . Who is affected by this provision? Should our agency contact recent retirees? Answer: This provision affects employees of the legislature. There is no need for executive branch agencies to contact former employees . Page 2 June 17, 1991 Question 19. Now that the Governor has signed the bill into law, can I retire in June and receive the early retirement incentive? Answer: No, the law requires that you retire on or after July 1 , 1991 and no later than September 30, 1991 . The fact that the bill is now law has no bearing on the "window period" for retirement. Question 20. If I am using unused vacation days to extend my length of service, do I round fractional values up or down? Answer: You must round down to a full day of vacation in order to be consistent with the process used by the State Retirement System. Question 21 . I will become 55 in October. Is there any flexibility on the age criteria? Answer : No, the law clearly requires that an employee be at least 55 years of age when they retire and they must retire before October 1 , 1991 . Question 22 . Could I retire in July and return to work for the State later and keep the early retirement incentive in effect? Answer: Yes , as long as you do not become eligible for state contributions to health and dental insurance as an employee, and as long your earnings don ' t reach the level where your retirement annuity 1s automatically suspended until the start of the next calendar year. If you stop receiving the annuity for any reason you lose the early retirement benefit. Page 3 June 17, 1991 Question 23. Effective dates of retirement determined under Teachers Retirement Association (TRA) law are either the 1st or 16th of the month. People who submit a timely application for retirement and terminate TRA covered service after the 15th of the month have an effective date of retirement which is the 1st of the next month. If I submit a timely TRA application for retirement and terminate TRA covered service after September 15Th but before October 1 , 1991 , will I still be eligible to receive the early retirement incentive? Answer: Yes . For the purposes of the law providing the early retirement incentive , you are considered to have retired when you terminate active employment. You may terminate active employment on any date in September and still receive the early retirement incentive assuming you meet all of the other criteria. Your retirement date only for purposes of the early retirement incentive program will be the normal effective termination date shown on your personnel documents . Question 24. Will more information sessions be scheduled for potential retirees? Answer : Yes . Four additional sessions have been scheduled for employees outside of the Twin Cities metropolitan area. Please see the attached schedule for dates , times and locations . LB:jb1298 cc : Designated Departmental Insurance Representatives Exclusive Representatives CITY OF SAINT PAUL • c, ' 'f OFFICE OF PERSONNEL AND LABOR RELATIONS 1.• ^"' .�'` RAFAEL A. VISCASILLAS, DIRECTOR ` � ttllll11111 ,s • tui((11111 .!--1 265 City Hall, Saint Paul, .tinne<Ota 55102 s 612.2984221 'n,r ..• Fax 612-292-7656 JAMES SCHEIBEL MAYOR July 10, 1991 Ed Winfield City of Shakopee 129 East 1st Avenue Shakopee, MN 55379 Dear Mr. Winfield: Enclosed is the requested information concerning Leave No Pay contained in the Civil Service Rules for the City of Saint Paul. Also enclosed is the Mayor' s recommendation for early retirement. Please be advised that this recommendation must be approved by city bargaining units and the City Council before it can be made official . If you wish additional information from our office we would be pleased to provide it. Sincerely, _ cn ° vo r,_ O n = =' `„ " ✓ = -�I�°V? :5 g-'3.- — 7 3 - Jc cCD Cn n ,A\ 2 v m =gE _° ° a. z cel co•n < o E3W ~ �7 Mark Robertsos ��. H �� ^A SG w o n c n`�r n n en - �' Acting Persons s7 (-7 ? n 7 r' -I _ n g CO <, y -'` _, ' 7 00 < 7 ^ to !) n • ^ ; C Ti.A 3 ^ A.3 I ■ es F ° ,n, �° 3 c C ^0 000 2. P im n c_. ° c 3 ; ^ MR: jj a� m _. ° 03"< m �" c M°`e % n"<-2.3 °. roP 3m20 ° a u C 7 0� n ° Onn m -,41"Z 7 ^ a3 s d c �� CD Enclosure a�+ o � ?^ m0o �< •� cS °�� or) ..■■ t�. rn=.7 Ro 0 3 "c n sr m ^ t 3 o n n s m . 7e'^ S.°< rte O C •^ 't1 m 8 � _ fr�� R. 5. et •? N . S< ° Mil .r) 3 O $ g-o•i'RPa`ga:g m3._VC? °,1g 811'n co gra.m3 '� > > Ca (D Imo o:r-H3 = O.nc r�`a ° r7om6 �? aa. "'eoa� V' C 0 -• � a� o r,,� C$ ... gr= S v 3' d f 0 n ^ a 3. n t�= - 3 ;R. —9n3 � 7� HH�, •1i 3 00 conA -.. 0. N — .rn g•---n rs O 6. m ., 3 m .•o O n SCli) MU cD °ao v. ^ 3 , n ,< 3'g$a F 7 _. o•o, °. ro n n. o ��� o a u = P n ^bgS arm 7 o "' • -E.2 o < m .... of^ < N'd „Q 7 =.7 n ;3-—,tee G n° ; •` ;, 33 7 3 N 6.y� s S� R�< 1 . n n O a < 3 ^ Q 3 0 nm N .^ n O. u 0 'o M� O so C S� 7 Sn --0 Cn to—I+ 7 0 O O y 373 N n .< F . ^ go Gro n•H y O. o•C '0 n C w 3 Q. q`` ri re n O.CA F 7 ••> > 3:6 y fll -, -, O 0 n 3 n 33^ "?-B-. -z ...p ' nnn ^ _ no0.3: n O 3 77 7,-O'3 ° .< ci — -- = 7 9 n 6.n- .v. E. Employees who transfer in accordance with the provisions of this Section shall serve a probationary period in accordance with Section 10 of these Rules. 18. TRANSFER OR REDUCTION BECAUSE OF DISABILITY DUE TO SICKNESS OR INJURY Any employee who sustains a permanent disability due to sickness or injury may be transferred or reduced at his/her own request and at the request of the appointing authority with the approval of the Personnel Director provided the employee meets such achievement, physical, and medical standards, as the Personnel Director may prescribe in the particular case. 19. LEAVE OF ABSENCE 19.A REQUIREMENTS FOR LEAVE OF ABSENCE The appointing officers may grant leave of absence from regular duty to an employee who has been in the City service for at least three months immediately preceding the employee's time of leave; however, no leave of absence, whether granted, extended, or continued, shall exceed one year, except as mentioned in Subsection B of this Section, and Sections 20 and 21 in their entirety. The only grounds for allowing leave of absence before three months of employment shall be in cases of sickness, disability, or urgent necessity. Leaves of absence without pay are granted primarily for the benefit of the City, and not for the convenience of the employee . Employees requesting leaves of absence without pay shall make request to the appointing officer and shall include such proof of the reason for request as the appointing officer and the Personnel Director may require. The appointing officer shall report all approved requests to the Personnel Office. The Personnel Office shall provide to the City Council quarterly reports of all leaves granted for educational purposes and of all reduced pay leaves. A full-time employee may be granted up to 160 hours of voluntary leave of absence without pay during the fiscal year (IRS reporting year.) During such leave of absence without pay, the employee shall continue to earn and accrue vacation, sick leave and seniority credits as they relate to eligibility for merit increases. If such leave is taken during the qualifying pay period as it relates to the eligibility for city paid Health and Welfare benefits, the employee shall be considered, for Health and Welfare eligibility purposes, as though he/she was on the payroll for such period. Any leave of absence granted under this provision is subject to the approval of the department head. Eff. 5-3-86 The above provision does not apply to employees of the School District. Issued October 1 , 1986 30 19.B REASONS FOR LEAVE OF ABSENCE 1 . Following is a list of reasons for which leaves of absence without pay may be granted . This list is not intended to be all inclusive but merely illustrative. Misrepresentation as to the reason for leave of absence shall be grounds for cancellation of leave and dismissal from the service. a. Physical or mental incapacity of the employee to perform his/her work efficiently, where the granting of a leave will permit the employee to receive treatment enabling him/her to return to the City service. Leaves of absence because of physical or mental incapacity may be initiated by the department head for the good of the service. b. Election or appointment to a full-time, paid position in an organization or union whose members consist largely or exclusively of employees of the City of St. Paul. c. Education or training relating to the employee's regular duties or to prepare the employee for advancement. 2. Following is a list of reasons for which leaves of absence without pay shall be granted: a. Election of the employee to a City position. Such leave shall be granted for a period extending over the time of actual and continuous service in such elective position or positions. At the termination of the elective service such employee shall be reinstated to his/her former Classified position or in a position in the same class and grade as the position held by him/her at the (Effective 9-13-86) time of election, such reinstatement shall be without loss of seniority. Issued October 1 , 1986 31 b. Appointment of the employee to an Unclassified City position. Such leave shall be granted for a period extending over the time of actual and continuous service in such position or positions. At the termination of the exempt service such employee shall be reinstated to his/her former Classified position or in an equivalent position without loss of any right or privilege that would have accrued to the employee had he/she not left the former position, including but not limited to any salary or fringe benefit increments accruing to such position during the leave, except for accumulating service credit for police and fire pension unless the exempt position is in the police or fire service. If such a current position is not funded at the time, the City Council shall provide such funding. If such employee has a minimum of two-thirds (2/3) of the experience necessary to take an examination in the classified service, then such experience gained in the unclassified position may be substituted as additional experience in any classified position. c. Disability or injury received in the performance of duty not due to the negligence of the employee for the period ( he/she is receiving compensation payments from the City for temporary partial disability or temporary total disability. (9-19-87) d. Parental leave upon the request of the employee. The length of such leave must be in accordance with State • law. This leave must be granted only in conjunction with the birth of a child or the adoption of a child. e. Current civil service employees of the Model Cities Health project shall be granted a two-year leave of absence, notwithstanding the provisions of 19.A This leave shall begin in November, 1985, when the Model Cities Clinic becomes an independent agency. Issued October 1 , 1987 32 .> C CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM July 9 , 1991 TO: Cabinet Members FROM: Mayor Scheibel SUBJ: Early Retiremen Incentive I have decided to recommend to the City Council an early retirement incentive for city employees . Like many large cities, Saint Paul has a serious budget shortfall . ' In all of these cities, residents and businesses are faced with higher taxes and/or service cuts; employees are faced with the loss of their jobs. The most successful organizations are those that proactively assist their employees through the period of workforce reductions--with counseling, training, job placement assistance and voluntary job reductions such as early retirement incentives . Out of concern for employees who may lose their jobs, I have carefully considered all of these methods of reducing or coping with workplace stress, especially an early retirement incentive. I consulted the Personnel Transitions Team as well as cabinet members concerning the feasibility of an early retirement incentive. There was no consensus . On the negative side, it was argued that an incentive provides a windfall to those who intend to retire anyway. On the positive side, it was argued that to the extent you encourage workers to retire earlier than they might otherwise, you save the jobs of other employees by preventing layoffs. Needless to say, layoffs create great hardship for those workers directly affected. Layoffs are also demoralizing for an organization. In a unionized environment the disruption due to layoffs is magnified. Many more employees are adversely affected than are actually laid off, due to the ability of senior workers to bump junior workers into different, often lower paying, jobs . I have an additional important concern. I do not want to burden taxpayers with the cost of an early retirement package. In order to meet the twin goals of minimizing layoffs and not burdening taxpayers, I have decided to recommend to the City Council an early retirement incentive with the following features : Employees who voluntarily retire by September 13 , 1991 will receive a severance bonus of 10% of salary at the time of retirement plus an additional 1% for each year of service over 25 years. The average incentive is estimated at $7 , 400, which compares to an estimated $7 , 000 per unemployment compensation claim for each employee laid off. Departments will be required to save in their 1991 budgets an amount equal to the salaries of those retiring for the remainder of the year. I am recommending a relatively modest incentive so that the entire cost of the package can be recouped by year end, at zero net cost to taxpayers. Uniformed Fire Department personnel will not be eligible for the early retirement incentive at this time. Because the Fire Department currently has 48 vacancies, it has no ability to recoup the costs of the incentive, and in fact it would cost taxpayers more due to greater overtime costs. But far more important is the impact on public safety. Encouraging employees to leave the Fire Department at a time when the city is so short of fire fighters and cannot hire replacements is not good public policy. An early retirement incentive is a term and condition of employment. Before any offer can be made official , consent of the bargaining units is required. I will also proceed with steps to gain approval of the City Council . In the meantime, you may share with your employees my recommendation so that they may begin to think about whether early retirement is right for them. Employees will be required to retire by Septmeber 13 , 1991 in order to take advantage of the incentive. ' _h E / I , \, .. j , , -1. -�. Mi Early retirement incentive As part of its effort to cope with employee payments through collective the chapter still permits the employer budget shortfalls,the Legislature bargaining or personnel plans, for to change the plan by changing the during the 1991 session enacted employees in positions equivalent to benefit for active employees. legislation to encourage some of its the position from which the employee Should a city decide to adopt this employees to retire early by providing retired. early retirement incentive,Chapter health insurance for the period Eligibility ceases when the retired 345 does not set out the method of • between retirement and age 65. employee reaches the age of 65,when accounting for the financial commit- In that same law,Chapter 345 the employee is eligible for employer- ment.Under the new financial ac- Laws of 1991,the Legislature author- paid health insurance from a new counting standards board (FASB) ized cities and other local units of gov- employer,or when the retired em- rules,it appears that cities should eminent to provide employer-paid ployee chooses not to receive the recognize the liability for its future hospital,medical,and dental benefits benefit.The retired employee is not commitment in the year in which it is to local employees taking early eligible for employer-paid life insur- created rather than deferring recogni- retirement in certain circumstances. ance. tion to the future years in which it will To be eligible,the early retiree must If an employer chooses to make be payable. be eligible for employer-paid insur- an early retirement incentive program This is contrary to the method ance under a collective bargaining available under Chapter 345,it may required for Minn. Stat. 465.72,subd. agreement or personnel plan in effect not pick and choose among employees 1,retired employee health plans and before June 30, 1991; have at least 25 to receive the benefit and may not arguably contrary to the statutory years of service with the employer exclude any eligible employees. directive of Minn. Stat. 471.611,subd. who will pay the benefits after The benefit that an employer may 1. However, an immediate attempt to retirement; be immediately eligible for offer pursuant to Chapter 345 is account for the cost of the program a retirement annuity upon retirement; slightly different from the health should help the employer to decide be at least 55 years and not yet 65 insurance commitment that a city has whether or not real savings can years of age; and retire between July 1, been and continues to be able to offer materialize by offering this early 1991 and October 1, 1991. under Minn.Stat. 465.72,subd. 1,and retirement incentive. An employee who is eligible both Minn.Stat. 471.611,which cannot Thus,despite the statute,the city for the health insurance benefit under bind the city beyond the term of the may want to run the numbers under the another early retirement incentive longest collective bargaining agree- FASB accounting approach to help the program pursuant to a collective ment or its budget cycle which is a city reach a better decision on the bargaining agreement or personnel calendar year. utility of this early retirement incen- plan established by the employer must Thus,the Chapter 345 commit- tive program based on potential select either the early retirement ment could be for up to a 10-year savings of cost over the long term incentive under Chapter 345 or under period for some employees as opposed One additional factor cities should the alternative plan but may not to the potential two-year period under consider is the fact that if the city receive both.Any person retiring Minn.Stat. 465.72,subd. 1,and offers its program to any of its eligible under the Rule of 90 is ineligible for a 471.611. However,under the Chapter employees,it must make it available plan pursuant to Chapter 345. 345 plan,the employer could still to all of them. As was the case in past An employee who is eligible for bargain with the union for lesser early retirement incentive programs, the incentive under Chapter 345 is benefits or lower employer-paid like the rule of 85,cities may lose eligible for single and dependent portions of costs for active employees employees who are productive and coverages and employer payments to and Chapter 345 retirees. expensive, and difficult to replace as which the person was entitled immedi- If provided under a personnel well as employees who are"dead ately before retirement,subject to any policy rather than a union agreement, wood."SGP changes in coverage and employer and August 16, 1991 Printed on recycled paper Page 7 Memo To : Honorable Mayor and Council Members Dennis R. Kraft, City Administrator From: Marilyn Reiner 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 Obiectives 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. Qisadvantages 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 . Sec . 111 . [FINDINGS. ] The legislature finds that the state of Minnesota faces immediate and serious financial problems. As a result, public employers may have insufficient resources to maintain their work forces at the current level . The legislature determines that the public interest is best served if public employers ' budgets can be balanced without layoffs of public employees . Section 112 is enacted as a temporary measure to help solve the financial crisis facing units of state and local government, while minimizing layoffs of public employees. Sec. 112. [EMPLOYER-PAID HEALTH INSURANCE.] Subdivision 1 . [STATE EMPLOYEES. ] A state employee, as defined in Minnesota Statutes , section 43A.02, subdivision 21 , or an employee of the State University System, Community College System, Minnesota State Retirement System, the Teacher' s Retirement Association, or the Public Employee' s Retirement Association, is eligible for state-paid hospital , medical , and dental benefits if the person: ( 1 ) is eligible for state-paid insurance under Minnesota Statutes , section 43A. 18, or other law; (2) has at least 25 years of service in the state civil service as defined in Minnesota Statutes , Section 43A.02, Subdivision 10, or at least 25 years of service as an employee of the Minnesota State Retirement System, the Teacher' s Retirement Association, or the Public Employee' s Retirement Association or a combination of any two or more of them; (3) upon retirement is immediately eligible for a retirement annuity; (4) is at least 55 and not yet 65 years of age; and (5) retires on or after July 1 , 1991 , and before October 1 , 1991 . In addition to those eligible under clause (5) , a person defined in Minnesota Statutes , Section 43A.02, Subdivision 27, who meets the requirements of clauses ( 1 ) to (4) and who has more than 30 years of service in the state civil service is eligible under this subdivision if the person retires after January 1 , 1991 , and before May 20, 1991 . Subd . 2 . [OTHER PUBLIC EMPLOYEES. ] The University of Minnesota or the governing body of a city, county, or other political subdivision of the state may provide employer-paid hospital , medical , and dental benefits to a person who: (1 ) is eligible for employer-paid insurance under collective bargaining agreements or personnel plans in effect on the day before the effective date of this section; (2) has at least 25 years of service with the employer who will pay for the benefits after retirement; (3) upon retirement is immediately eligible for a retirement annuity; (4) is at least 55 and not yet 65 years of age; and (5) retires on or after July 1 , 1991 , and before October 1 , 1991 . An employer that pays for insurance under this section may not exclude any eligible employees . Subd. 3 [CONDITIONS; COVERAGE. ] An employee who is eligible both for the health insurance benefit under this section and for an early retirement incentive under a collective bargaining agreement or personnel plan established by the employer must select either the early retirement incentive in the collective bargaining agreement, personnel plan, or the incentive provided under this section, but may not receive both. For purposes of this section , a person retires when the person terminates active employment and applies for retirement benefits. The retired employee is eligible for single and dependent coverages and employer payments to which the person was entitled immediately before retirement, subject to any changes in coverage and employer and employee payments through collective bargaining or personnel plans, for employees in positions equivalent to the position from which the employee retired. The retired employee is not eligible for employer—paid life insurance. Eligibility ceases when the retired employee attains the age of 65, or when the employee chooses not to receive the retirement benefits for which the employee has applied, or when the employee is eligible for employer—paid health insurance from a new employer. Coverages must be coordinated with relevant health insurance benefits provided through the federally sponsored Medicare program. Nothing in this section obligates, limits, or otherwise affects the right of the University of Minnesota to provide employer—paid hospital , medical , and dental benefits and life insurance to any person. Subd. 4. [RULE OF 90. ] An employee who retires under this section using the rule of 90 must not be included in the calculations required by Minnesota Statutes , section 356.85. Subd. 5. [APPLICATION OF OTHER LAWS. ] Unilateral implementation of this section by a public employer is not an unfair labor practice for purposes of chapter 179A. The authority provided in this section for an employer to pay health insurance costs for certain retired employees is not subject to the limits in section 179A.20, subdivision 2a. • s. UTIES MUNICIPAL RIGHTS, POWERS, DUTIES 471.61 town board and without compensation for the tidy so- use of the right of way. Op.Atty.Gen., No. 381—g, Dec. 31, 1980. pursu- section ted by 471.61. Group insurance, protection for officers, employees, retired officers and s, have employees May 9, Subdivision 1. Officers, employees. A county, municipal corporation, town, school district, county extension committee, other political subdivision or other body corporate and politic of this state, other than the state or any department of the state, through its cement governing body, and any two or more subdivisions acting jointly through their governing Tam to bodies, may insure or protect its or their officers and employees, and their dependents, or iid not any class or classes of officers, employees, or dependents, under a policy or policies or dectedecontract or contracts of group insurance or benefits covering life, health, and accident, in 'nested the case of employees, and medical and surgical benefits and hospitalization insurance or agreed ttaglia, benefits for both employees and dependents or dependents of an employee whose des th was due to causes arising out of and in the course of employment, or any one or more of powers those forms of insurance or protection A governmental unit, including county extension ict did committees and those paying their employees, may pay all or any part of the premiums or • other charges on the insurance or protection. A payment is deemed to be additional compensa- s oiler- tion paid to the officers or employees, but for purposes of determining contributions or ement. benefits under a public pension or retirement system it is not deemed to be additional o. 2611,, compensation. One or more governmental units may determine that a person is an al edu officer or employee if the person receives income from the governmental subdivisions lied by without regard to the manner of election or appointment, including but not limited to t num- employees of county historical societies that receive funding from the county. The thorityappropriate officer of the governmental unit, or those disbursing county extension funds, `enteshall deduct from the salary or wages of each officer and employee who elects to become insured or so protected, on the officer's or employee's written order, all or part of the officer's or employee's share of premiums or charges and remit the share or portion to the insurer or company issuing the policy or vntract. singly power A governmental unit, other than a school disti-ict, that pays all or part of the premiums ard, it or charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy ection. for the purpose of providing the necessary money for the payment of the premiums or charges, and the sums levied and appropriated are not, in the event the sum exceeds the maximum sum allowed by any law or the charter of a municipal corporation, considered part of the cost of government of the governmental unit as defined in any tax levy or per ration capita expenditure limitation; provided at least 50 percent of the cost of benefits on :orpo- dependents must be contributed by the employee or be paid by levies within existing per a and capita tax limitations. T the The word "dependents" as used in this subdivision means spouse and minor unmarried may children under the age of 18 years actually dependent upon the employee. law. [See main volume for text of subd. la] ►w or s not Subd. lb. Repealed by Laws 1980, c. 528, § 5. Subd. 2. Repealed by Laws 1953, c. 696, § 4. Subd. 2a. Retired officers, employees. Any county, municipal corporation, town, school district, county extension committee, other political subdivision or other body corporate and politic of this state, including the state or any department thereof, through ,ed in its governing body, and any two or more subdivisions acting jointly through their governing bodies, may insure or protect its or their retired officers and retired employees entitled to benefits under any public employees retirement act and their dependents, or any class or classes thereof, under a policy or policies, or contract or contracts of group insurance or benefits covering life, health, and accident, medical and surgical benefits, or hospitalization insurance or benefits, for retired officers and retired employees and their lines dependents, or any one or more of such forms of insurance or protection. art osuch tch along governmental unit, including county extension committees, may pay any P ect to premiums or charges on such insurance or protection or may require the retired officer or )y thee 241 . MUNI § 471.61 MUNICIPAL RIGHTS, POWERS, DUTIES employee to pay all or part of the premiums or charges. Any one or more of such Seders governmental units may determine that a person is a retired officer or a retired employee Self•in if such officer or employee, when employed, received income from such governmental subdivisions without regard to the manner of election or appointment. The appropriate - officer of such governmental unit, or those disbursing county extension funds, shall 16. collect from each such retired officer and retired employee who elects to become insured hos c: or so protected, on such officer's or employee's written order, all or part of the retired tired officer's or retired employee's share of such premiums or charges and remit the same to p ac the insurer or company issuing such policy or contract. An insurer, health maintenance • organization,or company issuing the policy or contract may not require a public employer to contribute any portion of the retired officer's or employee's share as a condition of 21. eligibility for the insurance or protection. An insurer, health maintenance organization, 9A an Sch or company issuing the policy or contract may require a retired officer or a retired employee to pay all or any part of the premiums or charges. 471.6 Any governmental unit, other than a school district, which pays all Or any part of such Su premiums or charges is authorized to levy and collect a tax, if necessary, in the next for h annual tax levy for the purpose of providing the necessary funds for the payment of such pay . premiums or charges, and such sums so levied and appropriated shall not, in the event prov such sum exceeds the maximum sum allowed by any law or the charter of a municipal acco corporation, be considered part of the cost of government of such governmental unit as whic defined in any tax levy or per capita expenditure limitation; provided at least 50 percent subs of the cost of benefits on dependents shall be contributed by the retired officer or retired unde employee or be paid by levies within existing per capita tax limitations. the • The word "dependents" as used herein shall mean spouse and minor unmarried children sL under the age of 18 years actually dependent upon the retired officer or retired employee. of h. with (See main volume for text of subd 5] Law Subd. 4. Repealed by Laws 1965, c. 780, § 9. Amended by Laws 1978,c.764, § 127,eff.April 6, 1978; Laws 1979, c. 334,art.6, § 26; Lawi 1982, 471. c. 602, § 1, eff. March 23, 1982; Laws 1984, c. 463, art 7, §§ 22, 23; Laws 1986, c. 321, § 1; Laws 1986, c. 444; Laws 1988, c. 709, art. 2, § 2. 1E. cept for school districts" preceding "such sums rem Historical and Statutory Notes P hur so levied". ing • 1978 Amendment. Added subd. lb. 1986 Amendments. Laws 1986, c. 321, § 1, in rev • 1979 Amendment. Substituted 1981 for 1980 the first paragraph of subd. 2a, added "or may rev at the end of subd. lb. require the retired officer or employee to pay all sua • Laws 1981, 1st Spec., c. 4, art 2, § 44, provid- or part of the premiums or charges" at the end nc ed that Laws 1980, c. 528 is reenacted, and that of the second sentence, and added the final two the- ata s. legal and valid. all acts authorized and complying therewith are sentence1986,c.444, § 1,removed gender specif- Laws 1981, 1st Spec.,c.4,art.2, § 49 provides is references applicable to human beings throughout Minn. Stats. by adopting by refer- P ence proposed amendments for such revision 1. "Upon the day following final enactment of prepared by the revisor of statutes pursuant to this act, section 44 is effective retroactively to: Laws 1984, c. 480, § 21, and certified and filed . Di. (1) July 1, 1980 as it applies to Laws 1980, with the secretary of state on Jan. 24, 1986. Chapter 528, Section 1; and (2) August 1, 1980 Section 3 of Laws 1986, c. 444,provides that the 47 as it applies to the remaining sections of Laws amendments "do not change the substance of 1980, Chapter 528. Sections 45 to 47 are effec- the statutes amended." tive the day following final enactment." 1988 Legislation 1982 Amendment. Substituted "including" The 1988 amendment made technical changes for"other than"in the first sentence of subd 2a in subd. 1 including the addition of the phrase 4� thereby clarifying hospital and medical benefits i including but not limited to employees of coun for retired and disabled state officials and em ty historical societies that receive funding from f ployeea. the county" at the end of the fourth sentence. 6 • 1984 Amendment. In the second paragraph of subd. (1) and the second paragraph of subd. 'Cross References p ' 2a,inserted"other than a school district" follow- Accounting ayments under this section, ing "Any governmental unit" and deleted "ex- see § 121 908, subd 242 :RS, DUTIES MUNICIPAL RIGHTS, POWERS, DUTIES § 471.6161 Notes of Decisions officers, employees and their dependents. Op. more of suchFederal pre-emption 22 Atty.Gen., 159-b-4, June 2, 1977. fired employee Self-insurance 21 governmental22. Federal pre-emption to appropriate State laws relating to the powers of local i funds, shall 16. — Retirement, officers and employees government units in providing group insurance !come insured A city could properly provide an increase in plans, including bidding requirements, are not of the retired hospital and medical insurance benefits for re- superseded by the federal Employment Retire- t the same to tired public employees where the city was cur- rently providing coverage for the employees. ment Income Security Act of 1974(ERISA). Op. maintenance Atty.Gen., 59-b-4, June `2, 1977. blic employer Op.Atty.Gen., 59a-55, Nov. 15, 1983. condition of 21. Self-Insurance organization, School district is not authorized ho i care eundertake, or osts ke or a retired as an insurer, to pay au ts 471.611. Retirees' health insurance benefits part of such , in the next Subdivision I. Accounting.A unit of local government that agrees to make payments ment of such for health insurance benefits for retired employees shall identify the amount required to in the event pay the cost of those benefits during the period in which the contract or personnel policy providing for those benefits is in effect and shall record the amount as an expenditure, a municipal according to generally accepted accounting principles, in the fiscal year or years during ental50unit as which the payments are to be made. A school district is in compliance with this :Ite 50 r or retired percrnt subdivision if it complies with section 121.908, subdivision 6. Provision of these benefits under a personnel policy must be approved, as a separate action,by the governing body of the employing governmental unit. ededchildren Subd. 2. Coordination. A unit of local government that funds all or part of the cost employee. of health care benefits for a retired employee must provide for coverage to be coordinated with applicable benefits provided through the federally sponsored medicare program. Laws 1988, c. 605, § 11, eff. April 25, 1985. 6; Laws 1982, 471.615. Individual annuity contracts, purchase for public officer or employees 21, § 1; Laws into annuit contracts with insurance companies Historical and Statutory Notes Y 1986 Amendment. Laws 1986, c. 444, § 1, so that state and other public employees may "such sums removed gender specific references applicable to receive federal tax benefits, does not authorize human beings throughout Minn. Stats. by adopt- school district to enter into such contracts; c. 321, § 1, in ing by reference proposed amendments for such school district's authority is set forth in M.S.A. ided "or may revision prepared by the revisor of statutes pur- §§ 471.615 and 123.35, subd. 12. Op.Atty.Gen., yee to pay all suant to Laws 1984, c. 480, § 21, and certified 59a-41, Nov. 14, 1985. s" at the end and filed with the secretary of state on Jan. 24, Y pa menu on behalf of city manager for Ne final two 1986. Section 3 of Laws 1986, c. 444, provides pur- that the amendments "do not change the sub- chase of annuity or deferred compensation bene- stance of the statutes amended." fits must be made from and not inGadditioen., n to the4 rendernseecif manager's "salary". Op• y mannbeings Feb. 22, 1984. ing by refer- Notes of Decisions iuch revision 1. In general i pursuant to M.S.A. § 352.96, which authorizes Executive • led and filed Director of State Retirement System to enter tn. 24, 1986. ides that the 471.616. Repealed by Laws 1989, c. 90, § 3, eff. May 10, 1989 substance of Historical and Statutory Notes See, now, § 471.6161. kcal changes f the phrase 471.6161. Group insurance; governmental units rees of coun- unding from Subdivision 1. Group insurance coverage. "Group insurance coverage" means ene- -th sentence. fit coverage provided to a group through a carrier authorized under chapters 61A, 62A, 62C, and 62D to do business in the state. Subd. 2. Request for proposal. Every political subdivision authorized by law to this section, purchase group insurance for its employees and providing or intending to provide group league of minnesota cities 1111 300 hanover building. 480 cedar st..saint pawl. minn. 55101 wait v i on for municipal officials 215a.7 Revised: November, 1979 METHOD OF FINANCING STATUTORY CITY FIRE EQUIPMENT Contents Page Tax levy 1 Issuance of certificates of indeptedness 1 Issuance of bonds 1 Fire state aid 1 Firefighters relief association funds 1 Conditional sales contract 2 Civil defense funds 2 Farmers Home Administration loans 2 Leasing and lease-purchase agreements 3 Applicability to charter cities 3 Tax levy cluding money and credits. If the amount will exceed that figure, the resolution authorizing Fire equipment may be purchased at any time issuance of the certificates must be published out of the general funds of the city when they are in the official newspaper, and within ten days available. More commonly, perhaps, a levy is made afterwards, the voters may petition for an elec- for that particular purpose as part of the general tion. When a proper petition is presented, an tax levy. Such a levy must generally be made election must be held. The one percent provision within the mill limits prescribed by M.S. 412.251 , in this section applies to each purchase and not to the per capita limits prescribed by M.S. 275.11 , the total indebtedness including prior purchases. and the general levy limitation of M.S. 275.50- (A.G. Op. 476-A-4, July 3, 1957.) 275.56 where applicable. (See the LMC memo "Aids for Preparing Municipal Budgets", 215b.1 , Model forms to be used under this law are con- for a more complete description of these limits.) tained in the LMC memo "Forms for Financing Purchase of Public Safety and Street Equipment Cities within forest areas may levy 3-1/3 mills, in Statutory Cities," 215d1 .2. not to exceed $3,000, for fire purposes pursuant to M.S. 88.04. No more than $500 of this may Issuance of bonds be spent in any one year. This levy may be in ex- cess of the mill limits (see M.S. 412.251 [8] ) but Under M.S. Section 475.52, Subd. 1, general must be within the other applicable limits. obligation bonds may be floated to finance fire equipment. Such bonds may be issued in the same Issuance of certificates of indebtedness manner as bonds for sewer and water systems, street paving, and similar capital improvements. Another possibility lies in the issuance of Thus, a vote of the people is required and the certificates of indebtedness under M.S. 412301 . limit on the bonds is that authorized in the pro- That statute reads as follows: posal submitted to the voters. "The council may issue certificates of indebted- Fire state aid ness within existing debt limits for the purpose of purchasing fire or police equipment or street Cities whch receive fire state aid and which construction or maintenance equipment. Such do not have a volunteer firefighters' relief associa- certificates shall be payable in not more than tion must deposit the aid payments in a special five years and shall be issued on such terms and account in the city treasury. Among the purposes in such manner as the council may determine. for which money in this account may be spent is If the amount of the certificates to be issued to the purchase of fire department equipment. finance any such purchase exceeds one percent (M.S. 424A.08.) of the assessed valuation of the city excluding money and credits, they shall not be issued Firefighters relief association funds for at least ten days after publication in the official newspaper of a council resolution deter- Volunteer firefighters' relief associations must mining to issue them; and if before the end of maintain a special fund into which fire state aid that time a petition asking for an election on the payments, the proceeds of the city levy for the proposition signed by voters equal to ten per- relief association, and certain other money must cent of the number of voters at the last regular be deposited. (M.S. 424A.05.) Moneys in this municipal election is filed with the clerk, such fund may not be disbursed directly for the pur- certificates shall not be issued until the proposi- chase of fire equipment. However, the trustees tion of their issuance has been approved by a of the relief association may invest these funds in majority of the votes cast on the question at the city's obligations, including fire equipment a regular or special election. A tax levy shall debt certificates and bonds. (M.S. 424A.05, Subd. be made for the payment of the principal and 4; M.S. 69.775; and M.S. 11 .16, Subd. 5.) Of interest on such certificates as in the case of course, the city would have to follow the statu- bonds." torily prescribed procedures in issuing such obliga- tions, just as would be done if any other investor As this law indicates, these certificates may be were purchasing the certificates or bonds. authorized and issued by the council without an election unless the amount to be borrowed will Relief associations may also maintain a second exceed one percent of the assessed valuation, ex- fund, called the general fund, into which income - 1 - from dues, fines, entertainment revenues, etc. may Civil defense funds be deposited. (M.S. 424A.06.) Moneys in this fund may be spent for any purpose authorized by the Another method is through the use of civil association's bylaws or articles of incorporation. defense tax proceeds. Under the provisions of (M.S. 424A.06, Subd, 3.) Thus, if the articles or M.S. 12.26, a municipality having an approved bylaws permit, the association could use general civil defense organization may levy taxes for its fund moneys to purchase fire equipment directly support. M.S. 12.26, Subd. 3 (2) (c) gives munici- or to make a gift to the city for the purchase of palities the power to: "pay the entire cost of equipment. Alternately, the funds could be in- organization equipment from funds derived from vested in the city's fire equipment debt certificates tax levies herein authorized but within the limi- or bonds, if the articles or bylaws allow. (MS. tations of Subd. 2. Organizational equipment 424A.06, Subd. 3.) purchased entirely from funds of a political sub- division need not be in excess of equipment In the case of special funds and to the extent provided for normal operation of a political sub- that general funds are restricted in their use to division and may be of a type and kind usable public and charitable purposes, the income on for both local and civil defense purchases." investments is not subject to income tax. There- fore, before investing relief association funds in Subdivision 2 referred to therein, limits the tax a city obligation to finance fire equipment, ex- levy to $40 per capita based on the last regular or ploration ought to be made to determine whether special federal census. However, in municipalities relief association financing of equipment for fire where this tax will not produce $1,000, a tax suf- fighting is economical. Sale of the city's obliga- ficient to produce that amount or so much there- tions to persons who can benefit from the income of as may be necessary may be levied. The Atto-- tax-exempt status of municipal bonds, and the ney General has ruled that municipalities may investment of the relief association funds in tax- purchase fire equipment for local use under the able securities which normally pay a higher rate provisions of M.S. 12.26, Subd. 3 (2) (c), but such of return would normally benefit both the associa- equipment must be essential for civil defense as don and the city. well. (A.G. Op. 835-A, June 3, 1964.) Conditional sales contract Farmers Home Administration loans Under the provisions of M.S. 412.221 , Subd. 2, M.S. 465.73 authorizes a city to finance fire a city may purchase fire equipment through a con- equipment and buildings by borrowing up to ditional sales contract payable in not more than $100,000 directly from the Farmers Home Admin- five years, and under which the seller is confined istration (FmHA) on a note secured by a mortgage to the remedy of recovery of the property in on the property purchased.Unless the note express- case the city does not pay for it. If the contract ly provides otherwise, FmHA is limited to the re- price exceeds one percent of the assessed valuation medy of recovery of the property if the city de- of the city, the city must follow the same proce- faults on the loan. When FmHA is confined to re- dures set forth under M.S. 412.301 for issuance covery as a remedy, no election is needed to auth- of certificates of indebtedness including publica- orize the loan. tion in the official newspaper and a regular or special election if a petition by the required M.S. 465.73 provides that when the city pledges number of voters is filed with the clerk. The city its full faith and credit for repayment of the loan, may not give a chattel mortgage nor pledge any a levy for repayment is a special Ivy within the property as security when purchasing through a meaning of M.S. 275.50, Subd. 5.1 Of course, .f conditional sales contract. (A.G. Op. 469-A-11 , such a pledge is made, FmHA would no longer be October 2, 1950.) Model forms for use under this confined to recovery as a remedy, and an election law are contained in the LMC memo "Forms for would be required to authorize the loan. Financing Purchase of Public Safety and Street Equipment in Statutory Cities," 215d1 .2. 1M.S. 465.73 actually refers to clause (j) of M.S. 275.50, Subd. 5. Prior to 1977, clause (j) of that statute referred to bonded debt. However, Ch. 423, Laws, 1977, rearranged the clauses of that subdivision so that it is now clause (e) which refers to bonded debt;clause (j) now refers to levies to replace decreasing mobile home tax collections. It seems clear, however, that the statutory intent is to treat these levies the same as any other levy for debt retirement. - 2 - Leasing and lease-purchase agreements could be construed as a subterfuge to evade the limitations on conditional sales contracts. See A statutory city clearly has the power to lease A.G. Op. 125-a-40, June 11 , 1979, LMC 130A. fire equipment, since M.S. 412311 specifically grants cities the power to lease as well as to pur- In summary, lease-purchase agreements are chase personal property. Since the power to pur- probably a legitimate means of acquiring tire chase property includes the power to purchase an equipment. However, lease-purchase agreements option (A.G. Op. 59a-40, Apr. 14, 1967, LMC should not be viewed as a means of evading the 470b), it seems clear that a city has the power to limitations on conditional sales contracts. Cities enter a lease contract with an option to purchase. should be very cautious in entering lease-purchase contracts without meeting the procedural require- It appears likely, however, that in many cases ments and substantive limitations which apply to lease-purchase agreements might be construed in conditional sales contracts. These limitations fact to be conditional sales contracts, and thus exist for the purpose of protecting the public subject to the limitations of M.S. 412.221 ,Subd. 2 treasury and leases and lease purchase contracts as described above. Both a lease-purchase agree- have historically been less advantageous to public ment and a conditional sales contract call for peri- bodies on the average than more conventional od:c payments in specified amounts. In both cases, acquisition procedures when all costs are figured. the city can stop making the payments at any In all cities, officers with the power to make de- time, whereupon the vendor/lessor can only re- cisions on acquisition of property hold their of- claim the property. In both cases, the city receives fice as a "public trust" and must act for the bene- the title after payment of specified amounts. It fit of the public, using reasonable judgment to would seem an odd result if a city were permitted avoid improvident commitments for their city. to enter a lease-purchase agreement having the See In Re Olson, 163 Minn. 114, 300 N.W. 398 same effect as a conditional sales contract which (1941); Burns v. Essling, 163 Minn. 57, 203 did not comply with M.S. 412.221, Subd. 2. It N.W. 605 (1925). is questionable whether a requirement of a nominal purchase price at the end of the lease term would Applicability to charter cities be construed as changing the character of the con- tract. This memorandum specifically addresses a num- ber of possible ways in which statutory cities On the other hand, it can be argued that a con- may finance fire equipment. Much of the discus- ditional sales contract involves at least a moral sion will also be applicable to home rule charter commitment to complete the payments called cities as well. All of the statutes cited in this mem- for in the contract and to assume title. A default orandum, with the exception of those found in will likely have an impact on the city's credit M.S. Ch. 412, apply to charter cities as well. which a failure to renew a lease or exercise an op- tion would not have. Charter cities are also given the power to enter conditional sales contracts under M.S. 465.71 , Thus, it is not necessarily true that all leases which is considerably less restrictive than M.S. which include purchase options will be construed 412.221 , Subd. 2. In addition, charter cities as subject to M.S. 412.221, Subd. 2. Where such will have to check their local charters for any an agreement called for payments that were corn- other restrictions or grants of authority which parable to the going market rate for a straight may exist. To the extent that those charter pro- rental of comparable equipment, it might well visions are analogous to the statutory city code be construed to be a bona fide lease. On the other provisions, this memo's discussion of debt certi- hand, a lease-purchase contract which called for ficates, conditional sales contracts, and lease- initial payments in an amount which made it im- purchase agreements will be applicable as wel'. practical for the city to discontinue the lease LWC:cac 3/72 PT:glb 8/79 - 3 - REVENUE GENERATION - FEE SCHEDULE UPDATE Current Proposed ZONING ADMINISTRATION None 1. Appeal of City Administrator' s Decision, Board of Adjustment and Appeals $ 0 $100 Appeal to City Council $ 0 $100 Mid 2 . Conditional Use Permit Home Occupation $ 85 $100 All Others $185 $200 Amendment $185 $200 Renewal $185 $200 Appeal to City Council $ 85 $100 High 3 . Variances Single Family Residential $ 85 $ 85 All Others $135 $150 Low 4 . Rezoning All Rezonings $250 $500 None 5. Zoning Verification $ 0 $ 15 Needs 6 . Planned Unit Development Study Preliminary $200 + $250 + $15/acre $15/acre Final $100 $200 None 7 . Comprehensive Plan Amendment $ 0 $500 LAND DIVISION ADMINISTRATION Current Proposed Mid 1. Major Subdivisions Preliminary Plat $245 + $300 + $5/lot $6/lot or or $145 + $200 + $3/acre $4/acre Final Plat $125 $150 Low 2 . Minor Subdivisions Lot Splits $ 50 $100 Lot Reassemblies $ 50 $100 Low 3 . Vacations Streets/Alleys $ 75 $100 Easement $ 50 $100 (7) 4 . Park Dedication 10% 10% None 5 . Trailway Dedication 0 Study None 6. Stormwater Management Dedication 0 Study N/A 7 . Registered Land Survey $ 50 $250 RECOMMENDATIONS FOR 1992 SWIMMING POOL • NAME CHANGE (Current) Shakopee Municipal Pool (Proposed) Shakopee Aquatic Center • Eliminate the Waterslide Fee (Unlimited rides *3/ 5 rides for *1. ) raise Family Season Pass from *40 to 945 raise Individual Season Pass from *23 to *28 raise Youth Gate rate from 01. 50 to *2. 50 raise Adult Gate rate from *2. to *3. raise Reduced rate Family Passes from *5. to *10. • Proposed 1992 Increases using 1990 actual figures- ADDITIONAL REVENUE Season Passes Family Pass 450 X *5. Waterslide fee= 0 2,250.00 Individual Pass 80 X *5. Waterslide fee= 400.00 Reduced Pass 30 X *5. 150. 00 Gate Receipts Youth 12, 383 X $1 = 0 12, 382.00 Adult 3, 679 X *1 3, 679.00 Total Est. Revenue = 0 18,661.00 • Pool Hours (Current 1991) June 8-16 1-7 PM June 17 - August 9 1-4:20 PM afternoons 6:30-8:30 PM evenings 1-7 PM weekends 1-7 PM Holiday August 10-18 1-7 PM (Proposed 1992) June 8 -16 1-7 PM June 17 - August 9 12:00-8:00 PM weekdays 12-7:00 PM weekends/Holiday August 10- end 12:00-7:00 PM Eliminate evening swim lessons. Morning lessons will continue. • Increase Swimming lesson fees ($3. increase) Regular 715 X S3 = 0 2, 145.00 Reduced 30 X *3 90. 00 Total Eat. Revenue = 4 2, 235.00 • Expansion of Advertising, Marketing, and Merchandising (current 1991) Promotion of pool: Spring/Summer Recreation Brochure, Leisure Ledger and Flyers through Schools. (proposed 1992) Promotion of pool: Spring Summer Recreation Brochure, Leisure Ledger, flyers through school (expand to include) a nice glossy color brochure to be placed at camp grounds, motels, hotels, Tourist Information Bureau, an ad placed in the Minn. Tourism 'Explorer'. • Concessions at Pool: • (proposed 1992) Food, refreshments, expand to include: suntan lotion, ' sunglasses, mosquito lotion, ear plugs, visors, baseball hats; L rent umbrellas. • Construct • miniature golf course • Add • 'Rain Drop'. DATE: June 20, 1991 TO: County Employees HENNEPIN FROM: Dale A. Ackmann, County Administra or SUBJECT: SPECIAL LEAVE WITHOUT PAY PROGRAM The award-winning Special Leave Without Pay (SLWOP) program has saved Hennepin County more than $18 million since its introduction in 1982. County employees are to be commended for their willingness to use this voluntary program to assist the County in addressing its budget problems. Since this program remains an important means of cost-saving, employees are encouraged to continue to seek out opportunities to use SLWOP. The major features of the program include the following: • Employees may use up to 160 hours of SLWOP per program year, subject to advance supervisory approval (the current program year began December 16, 1990 and will end December 14 of this year); • Employees may lessen the financial impact of program participation by "banking" hours for use at a later date (any banked hours remaining at the end of the program year are paid off at that time); • Sick leave and vacation continue to accrue; • The County continues to pay its contribution toward health plan and Basic Life insurance premiums (limited to one payment where the payment would not normally have been made on a leave without pay status); • If an employee wishes to pay PERA contributions on the SLWOP hours, the County will pay the employer share (typically, this is only of benefit to employees within five years of retirement). While SLWOP may not be practical in 24-hour operations or in units with special workload and/or staffing concerns, I have asked departments to be as flexible as possible in granting requests. I am hopeful that the use of SLWOP can be significantly increased. Any questions regarding the SLWOP program should be directed to your department' s management or the Personnel Services Representative assigned to your department. DAA/cak BCCTYEMP/BPCMISC C6 vER.) DL-1 DATE: June 14, 1991 TO: Department Heads & Assistants HENNEPIN FROM: Dale A. Ackmann, County Administrate SUBJECT: SPECIAL LEAVE WITHOUT PAY PROGRAM At the direction of the County Board, the attached memo, encouraging the use of Special Leave Without Pay (SLWOP), will be distributedto employees with the paycheck of June 21, 1991. Since SLWOP can, when used appropriately, be a significant cost reduction technique, you are asked to accommodate requests whenever practical . To properly administer this program, the following factors need to be kept in mind: • The SLWOP program was designed and implemented to provide an incentive for employees to voluntarily take time off without pay that would otherwise not be taken, in order to reduce County payroll costs. Granting SLWOP in lieu of other leaves without pay (medical , personal , etc. ) is inappropriate, in that such a practice increases County costs through the continuation of benefits not otherwise possible. • Similarly, SLWOP should not be granted when it would necessitate scheduling a replacement or paying overtime to cover the absent employee' s shift. ' • SLWOP hours count as time worked for the purpose of calculating overtime pay; therefore, if workload and/or staffing makes additional hours likely, SLWOP should probably not be granted. • Finally, special care should be exercised when considering SLWOP for probationary employees, since the schedule for conducting probationary performance reviews will not be extended by SLWOP hours. It is recommended that a probationary employee whose performance is marginal not be granted a significant amount of SLWOP, since this would limit the opportunity to observe and document the individual ' s performance. Your assistance in ensuring the effective administration of the SLWOP program will be directly reflected in budget savings for your department. Any questions regarding this program should be directed to your depart- ment' s Personnel Services Representative. OAA/cak Attachment BCOL1/BPCMISC MUNICIPA !� 1111111ATTORNEY5 � I \,Z ■ ■ ■ ■ ■ ■ ■ p / SINCE 1935 Q~ N/ CIPa` NIMLO March/April 1991 vol_32 no. 2 As local government budgets continue to be tight. public officials are searching, for ways to reduce costs and still continue to provide necessary services. One • approach to effective service delivery in such an environment is privatization or contracting-out. Local PRI VAT I Z AT I O N ■• governments serv- ices g in a large number of areas from legal to Alternatives In fleet Localmaintenance. provide most of the services ■ citizens receive from government. A municipality Deliveringdetermines the service level,hires the staff to provide the service,then raises revenues (taxes or fees) to pay the costs. It is both the buyer of services and the pro- ducer Services of services. This monopoly situation places no inherent constraint on either the amount of service By James L. Mercer* provided or on the efficiency of production. These traditional methods of delivering services are accepted so long as the fiscal situation is sound and revenues are adequate to cover expenditures. How- ever, in recent decades, inflation caused dramatic • increases in per capita expenditures by cities. Fiscal strains were further increased by the decreasing real levels of transfers from the federal government to local governments which began in 1978. Local offi- cials were forced to be creative to maintain services. Also In This Issue: The 1990 recessionary pressures exacerbated the need forsuch creativity.These fiscal pressures have prompted local officials to consider alternative approaches for • Suburban Zoning Techniques delivering public services. Contracting with the pri- • Military Reservists Return vate sector and with other governments are among the more popular approaches. See Privatization pace 27 Privatization (from page 2/) Virtually every service provided or Who Contracts Out What out some human resources services, land- unction performed by local government scaping and parks maintenance. food and could be contracted out. Of course. some Virtually all local governments surveyed medical services. services for the aging. activities, like planning. zoning and envi- contracted out at least one service to a special consulting services. landfill. data ronmental management. are emotionally private company. The vast majority of processing. and wastewater services. charged and perhaps more difficult to di- respondents contracted out engineering and The average size of the contract varies. vest. Others,like police and fire protection. management consulting as well as major depending on the nature of the service being are perceived as basic services that govern- construction. More than half the surveyed contracted. Multi-million dollar contracts ment should not abandon. Still,they are not cities also contracted out food services, are most likely to be found in sen ice areas impossible to spin off. Scottsdale.Arizona.% often in the form of vending machines and such as construction, fire protection. trans- for instance,contracts out its fire protection concessions. Counties and special districts portation.data processing. human resources. services and saves the city S1.6 million a frequently contracted out legal and archi- landfill operations. street maintenance and year. tectural services as well. Some 26 percent repair. solid waste collection, and certain Full-time public employees working in or more of the respondents were likely to social services. labor-intensive functions still perform about have contracted out janitorial services,solid More than half of all city, county and three-fourths of the work of local govern- waste collection, building maintenance, special district contracts are in effect for ment units. Naturally, because they lack security services,towing services,manage- one year. Between 27 percent and 40 the facilities, equipment and manpower, mens and maintenance of parking garages. percent of the rest last from one to three small local governments do more contract- and grounds maintenance. At least one- years. Wastewater treatment contracts ing for services than larger ones. While quarter of the surveyed counties contracted usually last from 20 to 30 years. Contracts such privatization is growing rapidly, there See next page is still plenty of room for further expansion. A Survey of Applications The Tyler, Texas Experience Tyler,Texas.a city of 80.000, began ence. "We won't allow the owner to im- The Mercer Group, Inc.. an Atlanta- to look at privatization about 5 years ago. port such waste under a new contract ,ased management consulting firm,recently Its old landfill was about to expire and the without the approval of City Council," updated a survey of 120 cities,counties and City began to explore new locations. Then, Gwyn said. special districts in 34 states as well as 30 a private hauler proposed that the City Tyler has also contracted out collec- experts in the privatization field to learn enter into a partnership in a regional tion and disposal of restaurant waste. about their experiences with contracting landfill. The hauler would operate it. Traditionally, waste from grease traps services to outside parties. "The initial reaction was skepticism." was dumped into the sewage treatment said Tyler City manager. Gary Gwyn. plant. This is no longer permitted. Rather The original survey was taken in 1988 "The City wasn't sure it would save than cope with the new regulations. the and reflected contracting practices at that money. But the more we talked, the City identified companies that handle such time. The present survey is an update of the better it looked." waste and contracted with one of them. original data. It examines services curs The private hauler offered the City a "The charges are higher but that is a rently being contracted out and those most _ large concession on the tipping fee. Tyler's function of the new regulations, not pri- likely to be contracted in the future. It lists rate would be one-half of the regular rate. vatization," Mr. Gwyn said. "Service is companies with track records in contract- "It was such a positive thing for the City probably better than with a city-run op- ine and describes the average size, length that we couldn't walk away," said Mr. eration and it's a problem area the City and form of service contracts as well as Gwyn. doesn't have to fool with anymore." factors considered critical to success of The City has realized significant say- Tyler will continue to privatize. The such contracts. ings by contracting-out. It pays less now City is considering whether to contract In addition, the report surveys evalu- than it would if it ran the landfill. out residential curbside recycling and the ation methods, rates of renewal, and com- There is a downside,however. Own- operation of an obstetrics clinic. petitive bidding procedures and presents ership of the landfill changed and the new One unexpected benefit of contract- findings on bid advertising, local govern- owner announced that the landfill will ing-out has been its effect on City depart- ment bid evaluation practices.political con- accept sludge from a sewage authority in ments. "The City owns three cemeteries. siderations in the contracting-out decision. New Jersey. The community is con- We tried to bid out the maintenance but in-house cost and contract-out decision cerned about the possibility of future en- didn't. Our own Parks Department un-' methodology, problems encountered in the vironmental problems. The large vol- derbid the private contractors. Their bid :ontracting-out process. optimum contract- ume of waste exported from New Jersey came in under their previous year's budget. int:characteristics,regional variances,overall will reduce the life of the landfill by three The threat of privatization brought the results. future trends and plans and likely to four years. Department to life. It is now very en- business opportunities in this field. The City learned from the experi- trepreneurial." Mr. Gwyn noted. V %lure h/l Aril 199/ vol. 32 no. 2 27 are quite likely to be renewed, although unreliability, slow response time. under- stress forces municipalities to innovate. It market conditions. service elimination and paid employees, high turnover, illegal ali- will undoubtedly lead municipalities to mak( political factors sometimes result in nonre- ens and citizen complaints. Contractors more use of the privatization option. V newal. often complained about slow payments and Almost all contracts specify taxed prices the extensive paperwork and red tape of the References for services rendered. About 12 percent of government bureaucracy. county contracts are on a cost-basis. An- • Mercer. James L. and Siegel. Alan R.. other I 1 percent include incentive clauses. Recent Trends Responding to the Pressure: Contracting for Public Services. OHIO CiTIES AND VIL- When Contracting Works The current survey shows some slight LACES. March. 1986. falling back of 1988 trends because the Local governments are most likely to concept of privatization is not the fad it • Mercer.James L.. Growing Opportuni- contract out if they have a council/manager once was. However, smaller jurisdictions ties in Public Contracting. HARVARD Bust- form of government or a strong mayor. in particular are making wider use of the NESS REVIEW, March-April. 1983. enlightened management. relatively few approach. unions. no well-entrenched power base. a The survey shows: • Mercer, James L.. The Mercer Group! financial crisis.autonomous decision-mak- • More use of the privatization concept in lnc.. 1990 Privatization Survey. The Mer-• ing capabilities,progressive attitudes.prior infrastructure areas such as wastewater cer Group.Inc..Atlanta.Georgia,October; positive experiences or a relatively well-to- treatment and facilities and private compa- 1990. ' do economy. nies building infrastructure(e.g..toll roads) The results of privatization have been on a lease-back or pay-back basis: Checklist For Privatization overwhelmingly positive according to 97 • Some use of reverse privatization (i.e.. percent of the cities. 99 percent of the selling public services to raise revenues. counties and 81 percent of the special dis- such as excess data processing capacity or • Understand concept tricts that responded. Financial savings ' crime lab use to neighboring jurisdictions)? • Clarify process were reported by 100 percent of the partici- • More use of the concept by state gov- • Assess opportunities pants,and quality of the work was cited as • ernments. • Select function(s) a positive factor by 45 percent of responL Pressures on local government budgets • Conduct cost/benefit analysis dents: Other factors contributing to success as revenues decrease will create more pub- -Determine cost of in-house provision include a contractor's past experience, his lic service contracting opportunities in this - Determine criteria for successful ability to follow specs, his flexibility, his decade.The availability of efficient service provision ability to get work done on time.and his po- from private sources will help overcome - Assess outside contractors litical sensitivity. the opposition to the widespread use of -Determine scope of function(s)to be The privatization schemes saved money contracting for public service delivery. contracted out by reducing personnel and equipment needst Data from 120 representative local - Prepare request for proposals They allowed the municipalities to pay governments and 30 experts shows the need - Evaluate proposals and price only for work done, getting more work for for municipalities to share their expert- - Compare with in-house provision the same dollars. They eliminated start-up ences with contracting. Almost all local - Decide on in-house vs. outside costs and reduced internal workload and governments rely upon contracts for at least • If outside.select contractor and nego- service problems. one service. Local officials place great tiate contract The availability of a sufficient number credence on the experience of other local • Execute agreement of contractors to ensure competitive bid- governments. As a municipality gains in- • Implement approach/monitor ding is occasionally a problem. It is more formation on contracting the impetus to • Evaluate results likely to arise in small communities and in contract for services will increase. • Evaluate process/adjust as necessary special districts. Privatization may provide service at a • Repeat cycle More than half of all cities and three- lower cost and may allow improvements in quarters of all counties that contract for the quality of service. Many local and state services encountered some problems. Cit- governments and special districts contract *James L Mercer is the President of The ies. counties and special districts all say out because of the apparent cost efficiency. Mercer Group. Inc. He has assisted local that obstacles from employees and unions Despite this recognition. many local and governments and private firms in assessing head the list. Citizen opposition and oppo- state governments and special districts do whether to privatize. He has written. spo- sition from elected officials are also cited not respond to pressure from the private ken and consulted internationally on the frequently. Paradoxically. 100 percent of sector for privatization. Decreased reve- subject. The Mercer Group. Inc. is mi all cities.counties and special districts sur- nue, a lack of facilities and a rise in the Atlanta-based management consulting firm veyed complained about some component demand for public services has created an which conducted and updated the survey of work quality. Many specifically cited enormous market for privatization. Fiscal upon which this article is based. 28 Municipal Attorney DEPARTMENT OF HUMAN RESOURCES 350 South Fifth Street - Minneapolis MN 55415-1376 ; DIRECTOR OF HUMAN RESOURCES IniI1I1 i,lI!IllIf15 FRANK J. REITER Y87 06122 ROOM 301M .i.+L (612) 673-2096 AFFIRMATIVE ACTION MANAGEMENT DIVISION LARRY J.BLACKWELL DIRECTOR ROOM3ISM July 17 , 1991 (612)673.2022 LABOR RELATIONS& EMPLOYEE BENEFITS DENNIS J.BIBLE.DIRECTOR ROOM 301M Mr. Ed Winfield (612)873-3341 City of Shakopee MANAGEMENT DEVELOPMENT 129 E 1st Ave &TRAINING Shakopee, MN 55379 B ARBARA RAYMOND.MANAGER ROOM 3019 (612)673-3998 Dear Mr.. Winfield: RISK MANAGEMENT&SAFETY Per your request of June 11, 1991, enclosed please GARY E.u_vtN,RISK MANAGER find a copy of the City of Minneapolis a2)673•� policy/ordinance on "budgetary leave" without pay. PERSONNEL SERVICES Please note that the City has required that B ROW R.ISAACSON.DIRECTOR 312 THIRD AVENUE SOUTH employees using approved budgetary leave do so by MMINEAPOUS.MN 55415.1006 the day rather than by the hour unlike vacation 1612)673-3114 • and sick leave usage. Sincerely, C)/ ' (liza'd Lenore Conway' Benefits Clerk 673-2759 lc Enclosure Ti; .I , III: ii,rr-'-! lil,l' f !A N : .I� I _`1 AFFIRMATIVE ACTION EMPLOYER I I -+ ,!' I _ 'I - '�`" I TOO(612)573-2157 _� . I �' 47 it :r __ I.. , b !I l *, r,I. r` , • �: , ^1 T. vim,, — I= r= - i RESOLUTION 84R 3CG AN ORDINANCE 84.0r•228 By Council Member O'Brie,, ; By Council Member O'Brien I Authorizing adoption of Amending Title 2, Chapter 20 procedures to allow leaves of • of the Minneapolis Code of absence without pay while Ordinances relating to Per- , continuing most City benefits, 1 sound!: Generally (Amend• I excluding pension payments '� ment No. 84.21). : I and accruals. (The City Council of the: City of I �, "r_,�� ,a_ Whereas, the City Council of the'• Minneapolis do ordain as fol- 1:'" _ '', p -••WdcM/BUDGET ti '',Coln.: lows: �,<Y i City of Minneapolis has deter-17 mittrete'commends� '• , '•r•�.:• ;, mined that budget reductions arek Section 1. That Section 20.12, 151)•PaJsage,Fe-the accompanymg.-'. :"."; possible .using a voluntary ieave•,t Subdivision (e) of the above en• resolution,"autho on=a'per- `:=_1-.1 titled ordinance be amended to r s.t ?'� !without-pay plan: and L. iaauenfbasisl procedtiies.to'allow_ .�,.• •-, Whereas, the Committee on read as follows: • leaves"of .absence •without:"pay. ': ' Ways and Means/Budget has- I (e) For purposes of Section 20.12, while''continuing':;:aiost."City determined that an estimated. Subdivisions (a) through (d), for benefits;=. ::,..;-;;.-- :J :, . . $87,000 may be saved without !the period commencing.March:11j -2) Passage of the accompanying reducing City services by offering. 41983, leaves of absenceof up t3LteII ' amendment;to' the ?Salaryi.nOr-r r City employees the option of\ 1(10) working days-per'calendar dinance,•..relating-_to Computation.-'• ` : voluntarily taking leaves without: (Year shall count as time worked. ofAdvancernent Daees,amending�ai•:= ,t.! pay if full seniority and benefits' rile leave may be requested by an ' Sec..:20;12,t:'Subdiv`'-(e)'''to=make '•:':=.;:::' • ....rfr.•-:-�1. � ,:t".,..1(,;;;;:. are ensures;-and • I employee and approved by a peiniarient'ttie provisionrallowin ,;�z;- Whereas, the proper City Of-. depart - or the em- ' leaves•:;of absence without: pay' :;;n:; facers have met and conferred with, 1 oyee's designated supervisor. ; while h: conti_nuing-.thost._'City_'"`=: d1 Ti/ PXovi 0 /AJe rw S h7,e Argife-T/r�mE47— • z D v ES You r � C - ( /� F4.1.0&i i; , Crry - 11 -4,“e, , ez-7,eCe ..,vys v_ ,1 0 1.C'/r7 /` S•f R;/ J N Pay S Pay S 6N /,L/.S tc R C /-7/ E /Yc Z 14/7t)/{RNCr ,./N s. /V . 4 . CN1r (0. 1 ;�j• i, /Cr/ 65 a`,,,,i.., T -r,,.. L./ X05 P.- r i-2 C v j H. i i i rri.i5r 1X- ti 5 yiai5; 6;5'. r, ,, c(d G �/ 1V ye> Siti.v C V� (� r .mow. ,.. i ZA CA*N ✓ I ii(t7' uea/60 i •13/00.11/456A,6 . ? h s 4. •z c j to _5 /-;/,::--;,A.. v - _ �. I /IE J 21ri t 1/ 7 y — . ✓ �� '`, 6 s ("Li <itij :/ _ CaSRA- 1�-+ y•�, ` '/, ;T/.;r `c.i.., ,des r�.,- �',• I, `'--!ti nC{ "'y r` -. f�S 1 �CC �'� n / • ( C_) J• ) 1./�; it:56: c r,tr•1ta.L1,t,It-. 0)..,- �,..�..s1 , 1� '-C!L,r PAn- 4.,;;.:.4_ 4.,;;.:.. 9u, ..:-,..r f ;) 4 J C. rne. lC4 lc 4yw-e .c Cc..;Z.42 aca„ e,B Ire (X,A-+i e_c yc.�2.. 1 Re'',et) ;/J 6'y C.gur-e-a - 77/e / , y ,..41;,2 . Lim 57,a D //L- ,--<- J , i •---'t, .-•'r • • • 4,. i3- = - 1.. �'J - 1 O •-�_-T • • < •• - �.�Tti: •- - ,.. w •1 I > n • r 77 0 • O S O • �. o • s I • I n • 7 n -. •< n n - n:••-. • • • r✓ a n n S .G • 4 3' • r• C • r • . n r . . •• =-._,��•:..,.�- Y n n • 0 '< C •< C • • .. o - =:ice+...'-4:.. a • r n 4 • .•-• r~ .. M a �..� 7• 7 7 • • • • 0. 7 • o • r C . . '.i..•+I .e.^ C o 7 n • n O 0. • c • n • -" -.r.'�,---•i: _ •< 7 n n n 0 • • •- n .3 -- I► • • • ■ a o < Cr on o n • may_ .• • n G w • n .• r 0 0 7 ►< »-'s=Ar..], ,_ n O C 0 4 C • .4 0. • ... .< E. - .44:4.4fii.ir.0- < o • 7 c C t n w r. r r 7 • < 7 ! *tI' . v r n r • n 7 a a • s c _: •- - - • .4 C ■ 5 < 0 • n C • .- _ � . -pt..:. _ 7 C • w n .• • • .. lo _ o ■ n • ► n • • 0 • •, - • -""• t C a c 5 o a n 7 . rs • '.:+or_•. . ,..•� • .. • ■ 3 • n -•i -- --� • 1 ! II•• •r n n •n ri L1 0 PI ri • o • 7 • or. w r 7 . ,• r. • • .. • n O n w r .0 n M on .r • n a •• 7 S • n • y 7 A - -,-.:*:.. .1:"4.......: ... n n • .. .. • •< • • .7 O rr C I.1 -• S ..• n • n • • • c n < a 7 3. • n >r r.• • v. r • N . z � O r n ► r S • • • .v 7 O PI ~ ...i.-- • .- a t r O 7 • .c °I •_ • a n .O • O n t •. A .. - �.. - Y • •< • n • .r S n • w M 3 10 • • •- '=i- •- • n n r < O •• n n - --- • < O O • • • w .. I • .•. _..•. • n O • • n n O 'O 7 II .47•..4• 0E77 . • • a t r 7 S ■ n • • • ;'-...ink•..�. .: .. • s ... r n • r n •e y-.•r.�i• _ • O • • a .• • • .. < 7 • w • C • • -• • •< • O C 0 •- Cn7 �v�:...: -- • 7 • q MI .1 n n • ••• - may ..-• .• • 7 O n 7 et, II < a • w • C •�- -�_ O t •• • n •< n • • Q_i.' '•' • • n r r. S • • n 2. .. a o •< < 7 7 • • .�..y;•.` 7 w w 'O • r • _ �:•^ - r• C 5 •< C n ra '+�:• • v o 7 v •< • • • • •r •. a r n • • a o .. 9.;',...::Jr .. a •< n r 0.- • • < • • . ?:+'g i t - r • n a 7 .a • • - n - K n n < • 7 .•-a,. '�- r O n • r • • r .•'• .'1 Vit, - O n w • O 7 n 7 n • • • O n r 7 0 ...Tn..: - r r • • • w • n O 7 • w.;.�... • t ...,:.1,<.•' n 5 n n • • • n. . S n Y ■ O. < ^ .. - . .. 0 n .- • 'O V • .• K 0. .. 5 0 n Y ' . -- • • O Y 7 • •< r • ..:,es. mac ••. r 7 7 n 7 7 7 1 . OD n • n n -. w o 7 • n 'O O 7 .O O • ': r- n. n .- q n Y • .�. •a_ .• . It K • n • .n: .i'.• DEC OR '?ii 1E: 11 TO:-14E71E, FFCf I: IT OF B4 L H FNF.I. T— _'E. F.01 ATTACHMEUT A Proposed Retirement Health Insurance Program 1 . Qualified employees shall have the option of retaining membership in the City of Brooklyn Park's employee health insurance plan for which the City will pay the single person premium until such time as the retiree is eligible for Medicare coverage or at age sixty-five (65) , whichever is sooner . If the retiree desires to continue family coverage , the additional cost for family coverage shall be paid quarterly by the retiree to the City of Brooklyn Park. 2 . To qualify under this program, an employee on the day of his/her retirement, must meet one of the following eligibility requirements . - Must qualify for a full retirement annuity under PERA or PERA Police without reduction of benefits because of age . In addition , an employee must have been employed by the City of Brooklyn Park for the last ten ( 10) consecutive years prior tc the effective date of his/her retirement. - Must have reached the age of sixty (60) years old. In addition, an employee must have been employed by the City of Brooklyn Park for the last twenty (20) consecutive years prior to the effective date of his/her retirement. Employees participate in this program on a voluntary basis . 3 . Retired employees who return to work are required to participate in any health insurance benefits , if qualified , provided by the new employer. Retiree health insurance provided by the City of Brooklyn Park will terminate upon the retiree ' s eligibility with the new employer. 4 . The City Manager is authorized to administer the Retirement Health Insurance Program and to fund this program with the retained earnings from the Benefit Accrual Fund Balance. 5 . The provisions of this program shall expire on December 31 of each year unless extended by the City Council prior to that date . Employee ' s who are currently drawing benefits shall continue to have the program provided until they are eligible for Medicare coverage or at age sixty-five (65) , whichever is sooner. HJR/zao Post It' brand fax transmittal memo 7671 /of pages To / From n . Co. Y_ . L�SZ.� L Z1 L, Dept Phones Fax r Fax+ Member Celia Scott introduced the following resolution and ( moved its adoption: RESOLUTION NO. 9U-166 RESOLUTION ESTABLISHING RETIREMENT HEALTH INSURA"ICE PROGRAM WHEREAS, it is in the best interest of the City of Brooklyn Center that retiring employees have available to them at their option a quality health insurance program; and WHEREAS, the City's employee health insurance coverage requires the City to contribute at least the amount of single coverage for a retired employee to continue eligibility for coverage under the group plan. NOW, THEREFORE, BE IT RESOLVED by the City Council that the City of Brooklyn Center establish a Retirement Health Insurance Program with the following provisions : 1. Qualified employees shall have the option of retaining membership in the City of Brooklyn Center's employee health insurance plan for which the City will pay the single person premium until such time as the retiree is eligible for Medicare coverage or at age sixty-five (65) , whichever is sooner. If the retiree desires to continue family coverage, and if such coverage is available under the City' s policies, the additional cost for family coverage shall he paid monthly by the retiree to the City of Brooklyn Center. 2. To qualify under this program, an employee, on the day of his/her retirement, must meet eligibility requirements for a full retirement annuity under PERA or PERA Police without reduction of benefits because of age . In addition, to bo eligible for this program an employee must have been employed full-time by the City of Brooklyn Center for the last ten (10) consecutive years prior to the effective date of his/her retirement. Employees participate in this program on a voluntary basis. 3 . Eligible employees, as described in Section 2 of this resolution, who become disqualified from participation under the policies of the City's health insurance carriers because of a move out of the service area of such carriers, may elect to continue participation in this program as follows. The employee may recommend to the City an insurance carrier providing health insurance in the area to which the employee has moved. Upon approval of the carrier by the City, qualification for coverage by the employee and submission of any additional information reasonably required by the City, the City will make monthly payments to the carrier on behalf of the employee for premiums for such policy up to the amount paid by the City for the lowest single parson premium of the City's employee health insurance plans at the time of payment. Any additional amount required shall be paid by the eligible employee. Eligible employees electing this option must prove residence in a non-covered geographic area and must submit a written notice of election to the City Manager on a forts provided by the City. Once an eligible employee has been removed RESOLUTION NO. 90-166 from coverage under the City's group health insurance plans pursuant to such an election, the employee may not thereafter reenter the group and will not be covered under the City's group policies . 4. The City Manager is authorized to administer the Retirement Health Insurance Program and to fund this g program from the City of Brooklyn Center's Employees' Retirement Fund until such funds are depleted, at which time the program will be funded from the General Fund. 5. The provisions of this resolution shall apply only to employees retiring on or before December 15, 1995. 6. In the event the City discontinues providing group health insurance coverage for active employees, all benefits provided for in this resolution will also be discontinued. August 13, 1990 _ter✓ f- t�.� Dace ATTEST: Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Told Paulson , and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Celia Scott, Todd Paulson, Jerry Pedlar, and Philip Cohen; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. OFFICIAL PROCEEDINGS OF THE CITY COUNCIL SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE AUGUST 6, 1991 Mayor Laurent convened the Committee of the Whole at 4 : 30 P.M. with Councilmembers Wampach, Sweeney and Clay present. Councilman Zak was absent and Councilwoman Vierling arrived at approximately 5: 50 P.M. Also present were Dennis R. Kraft, City Administrator; Barry Stock, Ass 't. City Administrator; Karen Marty, City Attorney; Judith S. Cox, City Clerk; Gregg Voxland, Finance Director; Dave Hutton, Public Works Director/City Engineer; Lindberg Ekola, City Planner; Mark McQuillan, Park & Rec. Program Supervisor; and Charlie Ries, Fire Chief. Mr. McQuillan explained that, at an earlier meeting, staff had requested additional staff assistance in the Park and Recreation Department for the Fall. Mr. McQuillan explained that Council asked staff to investigate alternative funding sources for the additional help. He stated that using park dedication fees was not a possibility, according to the City Attorney. He then explained possible increases in fees for the fall park and recreation program as well as possible increases in fees for activities in winter��— spring, and summer. He identified additional revenue from fall fees in the amount of $4 , 257 . 50 and additional revenue from all winter, spring, summer, and fall) in the amount of $21, 015. 00 . He recommended that Council approve additional help for the Park and Recreation Department for the fall of 1991 in the amount of $6, 250 and that the fall fees be increased by $4 , 257 . 50 and that the balance needed to fund additional help come out of the general fund balance. Sweeney/Clay moved to recommend to City Council to amend the 1991 Budget to show an increase in recreation revenue of $4 , 200 and an increase in parks and recreation expenditure of $6, 250, and to hire a temporary employee to assist with the fall and winter park and recreation programs. Motion carried unanimously. Discussion ensued on when the pool closes and why it closes so early. Should it close a week or two later, should it remain open until Labor Day, or should it be open on week ends only until Labor Day. Consensus was to consider extending the pool season next year before the schedule is published and employees are hired. Discussion ensued on putting up a picture of Pat Thielen, past Chief of Police, in the new City Hall . No action was taken. City Council discussed the proposed Five Year Equipment List. The Finance Director stated that the aerial truck has been removed from the list so that there is now a positive projected balance in 1996 in the amount of $859 , 936. Official Proceedings of the August 6, 1991 Committee of the Whole Page -2- Consensus was to leave the inspection truck on the list for 1993 and to look at it again in 1992. Consensus was to delete the police computer system because it is not capital equipment. Consensus was to place the police mobile display terminals all on the list for 1992 so that all squads could be equipped at one time. Consensus was to place the purchase of all fire pagers on the list for 1992 so that all fire fighters could be provided the same equipment. Consensus was to look into using the back-up grass rig for the Ass't Fire Chief as opposed to recycling a car from the Police Department for use by the Ass't. Fire Chief; thereby not increasing the fleet. Consensus was to delete the pumper for the Fire Department from the list for 1994, which would be for a second fire station. Funds for the pumper will be included in a referendum when there is a referendum for the construction of a fire station. Consensus was to leave the truck on the list for the Engineering Department in the 1992 budget, but that it is not necessary that it be four wheel drive. Discussion ensued on new vehicles being used in the Building Department and recycled to the Engineering Department since the Building Department trucks accumulate miles at a higher rate than the trucks in the Engineering Department (while they are still under warranty) . Since the Building Department did not budget a truck in 1992, the new truck will go to the Engineering Department. Cncl. Vierling arrived during discussion. Consensus was to leave the engineering car/truck on the list for 1994 and to review it again when it gets closer to 1994. Consensus was to leave the street dump truck on the list for 1992 , but that an old vehicle should be sold so that the fleet is not increased. Consensus was to leave the street loader on the list for 1992 (with a buy back clause) as well as to leave the bobcat on the list for 1995. Consensus was to leave the park truck on the list for 1993 , but to re-evaluate it in 1993 . Consensus was to delete the recreation vehicle from the list for 1992 . It was thought that paying mileage would be less costly than maintaining a vehicle. Official Proceedings of the August 6, 1991 Committee of the Whole Page -3- The Finance Director stated that he had just received word from the State Department of Education that the School District could be kept whole if there was a prepayment of Tax Increment Taxes. The owners of the racetrack had inquired if the Assessment Agreement could be modified for the mutual benefit of both parties. There are two ways to keep the School District whole if there was a prepayment of taxes. Consensus was to get statistics to see what and how changes would occur. Discussion ensued on purchasing a portable scale to weigh trucks as a way of generating additional revenue as well as helping control traffic down town. Mayor Laurent adjourned the Committee of the Whole at 6: 53 P.M. J •with S. Cox i y Clerk •-cording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE AUGUST 13, 1991 Mayor Gary Laurent called the meeting to order at 7: 03 P.M. with Councilmembers Wampach, Sweeney, Vierling, and Clay present. Councilman Zak arrived at 7: 09 P.M. Also present were Assistant City Administrator, Barry Stock; Judith S. Cox, City Clerk; Gregg Voxland, Finance Director; and Chief of Police, Tom Steininger. Sweeney/Vierling moved to approve the minutes of July 23, 1991. Motion carried unanimously. Councilmembers reviewed the revised Capital Equipment List. Cncl.Sweeney suggested that the "Sale of Assets" for 1992 be adjusted to $30, 000 to include the potential sale of the fire truck. Cncl.Sweeney suggested that the purchase of pagers for the Fire Department all be budgeted in 1992 . Discussion ensued on the purchase of mobile display terminals for the police department versus leasing them from the County or purchasing them jointly with the County. Mr. Voxland will discuss these alternatives with the Chief of Police. Discussion ensued on the enterprise funds. Staff was asked to look into budgeting the sewer jetter out of the sanitary sewer fund versus out of the capital equipment fund. Staff was asked to look into assessing the people benefitted by the upper valley drainage. Councilmembers noted that the revenues for both the sanitary sewer fund and the storm drainage fund, as of June 30th, are low in comparison to the 1991 estimate. Staff was asked to look into why they were so low. Cncl. Vierling noted that the Capital Improvement Plan has not yet been prepared and that the Plan would be helpful for preparing the 1992 budget. Mr. Stock noted that the Capital Improvement Plan has to be approved by the Planning Commission. A draft could be prepared for the August 27th meeting. Mr. Voxland stated that in the Debt Service Fund, one bond issue will be closing in 1992 and that there will be approximately $122 , 000 left which can be transferred to another fund. He stated that usually in a case like this the funds are transferred to the Capital Equipment Fund. Discussion followed on where to transfer the funds: 1) can they be loaned to the H.R.A.? 2) redevelopment of the block where the current city hall is located, 3) general fund. It was the consensus of Councilmembers to explore the options of where to transfer the excess funds from the bonds being paid next year after discussion of the general fund. Official Proceedings of the August 13 , 1991 Committee of the Whole Page -2- Mr. Voxland stated that there will be a 1. 7% increase in the City tax levy due to debt service. He doesn't recommend canceling any levies. Next, Mr. Voxland addressed the Special Revenue Funds. He stated that the budget proposed for the transit system is the same as last year. He stated that the H.R.A. levied $30, 000 last year and that they are allowed to levy 3% over last year. He stated that there is $25 , 000 budgeted for the downtown rehab grant program. There was a brief discussion on the need for a study on the down town second phase. The Committee took a break at 8 : 19 P.M. The Committee re-convened at 8 : 34 P.M. There was a consensus to budget a 3% increase over last year for the H.R.A. Mr. Voxland explained that City Council usually goes over the revenues and hears a general overview of the proposed budget at their first budget worksession and discusses cuts at their second budget worksession. He said that the revenues projected for 1992 do not look very optimistic. He said that the tax levy must be maintained for 1992 . He also stated that the tax levy can be increased by an amount equal to replacing the 1991 Local Government Aid cut, which for Shakopee is $109 , 000 . Discussion ensued on revenues for the City. Mr. Voxland stated that Shakopee will experience a $21, 000 loss in revenues in 1991 because of an auditor' s error. He said that we could ask for a special levy in 1992 to equal the $21, 000 loss. There was consensus that the levy be increased by the $109, 000 loss in LGA and to try for the $21, 000 special levy. Mr. Voxland stated that there will be a fund in the debt service fund which will be closed in 1992 which will have a $122 , 000 balance which could be used in 1992 . He also stated that there is a $200, 000 surplus from 1990. There was discussion about issuing certificates of indebtedness for the fire truck and transferring the capital equipment funds for the fire truck to the general fund. There was discussion on the $130, 000 estimated cost to repair the municipal swimming pool . Mr. Stock stated that this item was scheduled for next weeks agenda. Staff was directed to include in the memo the alternative to refer this item to the next Committee of the Whole agenda. Official Proceedings of the August 13 , 1991 Committee of the Whole Page -3- Councilmembers wanted to keep their options open to the number of alternatives available to increase the proposed 1992 budget revenues. Cncl .Sweeney noted that there is a $426, 000 revenue shortfall and that there are a number of sources to make up the shortfall : funds from other sources, transfers and levies. City Council can also look at cuts to balance the budget. Consensus of Committee of the Whole was for staff to identify all possible revenue enhancements and that the City Administrator recommend and prioritize potential cuts to the 1992 budget as identified by department heads in their plus/minus 10% budget reduction memo ' s. Mayor Laurent adjourned the meeting at 9 : 47 P.M. QçL14, . J ith S. Cox C ' y Clerk Recording Secretary C. MEMO TO: Dennis R. Kraft, City Administrator FROM: Lindberg S. Ekola, City Planner RE: 1992-1996 Capital Improvement Program DATE: August 23 , 1991 INTRODUCTION AND BACKGROUND: Attached is a copy of the Executive Summary for the 1992-1996 Capital Improvement Program. Staff will provide the full draft at Tuesday's meeting. TABLE OF CONTENTS EXECUTIVE SUMMARY A. Introduction B. Summary of the Proposed 1992 Capital Improvement Budget C. Summary of the 1992-1996 Capital Improvement Program 1992 CAPITAL IMPROVEMENT BUDGET A. Streets and Highway Projects B. Sanitary Sewer Projects C. Stormwater Drainage Projects D. Parks Projects E. Municipal Building Projects F. Fire Projects G. Other Projects 1992-1996 CAPITAL IMPROVEMENT PROGRAM A. Streets and Highway Projects B. Sanitary Sewer Projects C. Stormwater Drainage Projects D. Parks Projects E. Municipal Building Projects F. Fire Projects G. Other Projects PROJECT DATA SHEETS A. Streets and Highway Projects B. Sanitary Sewer Projects C. Stormwater Drainage Projects D. Parks Projects E. Municipal Building Projects F. Fire Projects G. Other Projects 1992-1996 CAPITAL IMPROVEMENTS PROGRAM EXECUTIVE SUMMARY INTRODUCTION Capital improvements are defined as those projects which require the expenditure of public funds for the acquisition, construction or replacement of the infrastructure necessary for a community. Typical capital improvement projects include streets and highways; water and sewer facilities; parks, trails and open space; and various types of public buildings. A capital improvement program is a listing of proposed public projects according to a schedule of priorities over a five year period. Developing a capital improvement program provides many significant benefits such as: • An effective way to plan, budget, and coordinate the operation and capital efforts of city departments. • A coherent development program that will increase opportunities to obtain funding from outside sources such as the state and federal government. • Public support for capital commitments that should help attract private investment. • Improved chances to receive favorable bond ratings by giving evidence of effective management. A capital improvement budget is a list of the projects scheduled for the upcoming fiscal year. Projects which were previously scheduled in the 5-year capital improvement program are prioritized into the annual capital improvement budget. The Shakopee City Council annually adopts a 5-year Capital Improvement Program (CIP) . The CIP is prepared by City staff and reviewed by the Planning Commission prior to approval by the City Council. The 5-year program is utilized by staff for long range budgeting purposes, programming projects and developing a priority list for the following year' s projects which are listed in the Capital Improvement Budget (CIB) . Proposed capital improvement projects in both the annual CIB and the 5-year CIP have been prioritized in this document. The prioritized projects have been organized into one of the following seven types of project categories: A. Streets and Highway Projects B. Sanitary Sewer Projects C. Stormwater Drainage Projects D. Parks Projects E. Municipal Building Projects F. Fire Projects G. Other Projects SUMMARY OF THE PROPOSED 1992 CAPITAL IMPROVEMENT BUDGET The top priority project in the annual Capital Improvement Budget is the new City Hall . In 1991, the City purchased the Marquette Bank building, located at the northeast corner of Holmes Street and 2nd Avenue. The renovation of this building will occur in 1992 . Staff anticipates moving into the new City Hall facility by mid- 1992 . The next three projects in the 5-Year Plan are the three major transportation projects scheduled for Shakopee, namely the Shakopee Bypass, the Downtown Bridge/Mini bypass and the Bloomington Ferry Bridge. All three projects will be constructed over the next several years. The first two projects are Mn/DOT projects and the last one is a County project so the exact schedule for construction of these transportation improvements is not entirely a City of Shakopee decision. The City of Shakopee should continue to support these projects by involvement in the Scott County Transportation Coalition and by direct financial support. These projects have long been identified as top priority projects by the City Council of Shakopee during is annual goals and objectives meetings. The following is a summary listing of the proposed 1992 Capital Improvement Budget projects: A. Street and Highway Projects 1. Muhlenhardt Road This road is currently a gravel road on a severe slope (up to 10%) that is an extremely high maintenance road due to constant washouts and poor drainage facilities. This project was included in the 1991 C.I.P. and a feasibility study is currently being done, but construction will not be possible until 1992 at the earliest. Portions of this road have been petitioned for to either be upgraded or vacated. 2 . Vierling Drive (C.R. 17 to C.R. 79) This would be a new street that is needed for development. This street is on the Municipal State Aid System and due to an excess fund balance in that account will need to be constructed in 1992 . 3 . Spencer Street (1st Avenue to 9th Avenue) Portions of this road will need to be completely reconstructed and other portions may be milled and overlayed. This project needs to be done prior to the downtown mini bypass opening in 1993 . 4 . Apgar Street (1st Avenue to 6th Avenue) Complete street reconstruction. Current pavement is deteriorated and there is no curb and gutter, resulting in poor drainage facilities and damage to lawns during snow plowing. The railroad crossing is extremely bad due to the numerous siding tracks (9 tracks total) and the issue of improving this crossing or closing it will need to be addressed. 5. Apgar Street (10th Avenue South) Based on the recent interim ordinance study, Scott County may be building the new County Road 79 alignment with Fuller Street in 1992 . If so, the City will be given Apgar Street. This street is currently a gravel street and a constant source of complaints. The County has designed this street and originally programmed the construction for 1991, but was delayed due to the City' s study. The City could easily take the County' s design and construct this street in 1992 . 6 . Downtown Alleys (Spencer Street to Fuller Street) The existing alleys are severely deteriorated and need complete reconstruction. Shakopee Public Utilities Commission is considering undergrounding their overhead lines and the two projects should be coordinated and done at the same time. 7 . Sidewalk Replacement Program The City Council initiated an annual program in 1990 to replace existing defective sidewalks, with an annual budget of $25, 000 . 00 . 8. Maras Street Currently, this is a private road located in eastern Shakopee just off 13th Avenue. There is industrial development off this road, but it is a substandard street. Currently, it is dirt/gravel with poor drainage and a severe "hump" over a gas line. It is also an over length cul-de-sac. The City Attorney is attempting to have the City obtain this road and once that occurs it should be upgraded to City standards. 9. Harrison Street (3rd Avenue to 6th Avenue) This is the old state highway. The existing concrete is severely cracked and spauled (packed with holes) . The exact rehabilitation treatment has not been determined but it may consist of anything from milling/overlaying to complete reconstruction. B. Sanitary Sewer Projects There are no Sanitary Sewer Projects scheduled for construction in 1992 . Several sewer projects have been scheduled for construction between 1993 and 1996. Please refer to the 5-year Capital Improvement Program. C. Stormwater Drainage Projects 1. Upper Valley Drainage Phase III and IV The Upper Valley Drainage System is being constructed to provide necessary drainage for the Southerly Shakopee Bypass. Phase III and IV will be constructed between County Road 79 and County Road 15 and to the bypass. The trail will be constructed with this project. D. Parks Projects 1. Lions Park Pond/Trial Extension The pond and trail extension will be constructed in conjunction with the remainder of the Upper Valley Drainage Project, which will be done by MN/DOT with the Shakopee Bypass. Funding source: Shakopee Lions Club. 2. Shakopee Municipal Pool Repairs After 23 years, parts of the filtration system and water pumps have become worn and are in need of repair. The liner beneath the sand has disintegrated and needs replacing. The pool is of vital importance to the community and greatly appreciated by its citizens. This is a high priority. Funding source: General Fund. 3 . Tahpah Park Parking Lot Extension - Trees and Shrubs Completing the final phase of the parking lot at Tahpah Park will be helpful in alleviating some of the parking problems at the site. The Shakopee Jaycees are embarking on an ambitious tree planting program for Tahpah Park. The new water supply to the park will improve the survival rate of plant life there. Funding source: Shakopee Jaycees. 4 . Lions Park Tennis Courts Three years ago, large cracks began appearing in the asphalt on the Tennis courts at Lions Park. The cracks have been worsening with each advancing year. A consultant engineer recommends completely replacing the asphalt. It ' s possible, the courts could be used another year before anything is done to them. A crack filler has been applied. Funding source: Park Reserve Fund. 5 . "Rain Drip" for Municipal Pool The Rain Drop will be installed at the time of when other pool repairs are done. The rain drop looks like a giant size umbrella in which water flows up and over its top; somewhat like a waterfall . The Chaska Community Center has one in their indoor pool . Funding Source: Shakopee Lions Club. 6. Stans Park Land Acquisition The Comprehensive Plan identified the need for a four acre neighborhood park near the Shakopee Senior High School . The land is proposed to be acquired through the park dedication process as the are develops into a residential neighborhood. E. Municipal Building Projects 1. New City Hall Renovation of the recently purchased Marquette Bank building will occur in 1992 . A separate fund has been established to purchase and renovate the new City Hall. Staff anticipates moving into the new City Hall by mid- 1992 . F. Fire Projects 1. Fire Station 42 Land Acquisition In 1990 the City initiated discussions with a property owner for land acquisition. Negotiations should continue in 1992 . 2 . 3M Opticon System The emergency traffic signal control system was requested by the Fire Department in 1991. The 3M opticon system would be used by all emergency vehicles including Police, Sheriff, Fire and Ambulances. G. Other Projects There are no Other Projects in the 1992 Capital Improvement Budget. SUMMARY OF THE 1992-1996 CAPITAL IMPROVEMENT PROGRAM All other requested projects have been programmed into the remaining years of the 5-Year CIP. In addition to the table showing the proposed year of construction, there are individual summary sheets for each project explaining the reasons for the project sand the estimated costs of each one. FINANCIAL SUMMARY The total cost of all projects included in this 5-Year CIP is $22 , 690, 000. This comes out of an average of about $4 , 538 , 000 annually. The total for the requested 1992 projects is $4 , 193 , 000. SUMMARY The intent of this 5-Year CIP is to serve as a guide to the City Council to identify the future needs of the City in the area of capital improvements and to allow for the establishment of adequate funding levels to accommodate these improvements. The adoption of a 5-Year Capital Improvement Program greatly aids staff in long range planning of projects and identifying the needs of the City for budgeting reasons and for maintaining adequate personnel to administer these projects. Respectfully Submitted, Lindberg S . Ekola Dave E. Hutton City Planner Public Works Director i ,... c � I JAI—C; 4C QR‘V*4 City of Shakopee ;i: w-Nlit ` . _ N. ‘ (.V, M I. t., .-rr i 1992 -1996 Capital Improvement Program CITY OF SHAKOPEE, MINNESOTA CITY COUNCIL Gary Laurent, Mayor Steven Clay Jerome Wampach Gloria Vierling Joseph Zak Robert Sweeney PLANNING COMMISSION Melanie Kahleck, Chairperson Eugene Allen Nancy Christensen Terry Joos Joan Lynch William Mars H. R. Spurrier CITY ADMINISTRATOR Dennis R. Kraft This document was prepared as a joint effort by the Building Department, Community Recreation Department, Engineering Department, the Finance Department, The Fire Department and the Planning Department. August 1991 TABLE OF CONTENTS Page EXECUTIVE SUMMARY 1 A. Introduction 1 B. Summary of the Proposed 1992 Capital Improvement Budget 2 C. Summary of the 1992-1996 Capital Improvement Program 6 1992 CAPITAL IMPROVEMENT BUDGET 7 A. Streets and Highway Projects 7 B. Sanitary Sewer Projects C. Stormwater Drainage Projects 8 D. Parks Projects 8 E. Municipal Building Projects 9 F. Fire Projects 10 G. Other Projects 1992-1996 CAPITAL IMPROVEMENT PROGRAM 11 A. Streets and Highway Projects 11 B. Sanitary Sewer Projects 17 C. Stormwater Drainage Projects 18 D. Parks Projects 19 E. Municipal Building Projects 23 F. Fire Projects 24 G. Other Projects 25 PROJECT DATA SHEETS A. Streets and Highway Projects B. Sanitary Sewer Projects C. Stormwater Drainage Projects D. Parks Projects E. Municipal Building Projects F. Fire Projects G. Other Projects 1992-1996 CAPITAL IMPROVEMENTS PROGRAM EXECUTIVE SUMMARY INTRODUCTION Capital improvements are defined as those projects which require the expenditure of public funds for the acquisition, construction or replacement of the infrastructure necessary for a community. Typical capital improvement projects include streets and highways; water and sewer facilities; parks, trails and open space; and various types of public buildings. A capital improvement program is a listing of proposed public projects according to a schedule of priorities over a five year period. Developing a capital improvement program provides many significant benefits such as: m An effective way to plan, budget, and coordinate the operation and capital efforts of city departments. • A coherent development program that will increase opportunities to obtain funding from outside sources such as the state and federal government. • Public support for capital commitments that should help attract private investment. • Improved chances to receive favorable bond ratings by giving evidence of effective management. A capital improvement budget is a list of the projects scheduled for the upcoming fiscal year. Projects which were previously scheduled in the 5-year capital improvement program are prioritized into the annual capital improvement budget. The Shakopee City Council annually adopts a 5-year Capital Improvement Program (CIP) . The CIP is prepared by City staff and reviewed by the Planning Commission prior to approval by the City Council . The 5-year program is utilized by staff for long range budgeting purposes, programming projects and developing a priority list for the following year' s projects which are listed in the Capital Improvement Budget (CIB) . -1- Proposed capital improvement projects in both the annual CIB and the 5-year CIP have been prioritized in this document. The prioritized projects have been organized into one of the following seven types of project categories: A. Streets and Highway Projects B. Sanitary Sewer Projects C. Stormwater Drainage Projects D. Parks Projects E. Municipal Building Projects F. Fire Projects G. Other Projects SUMMARY OF THE PROPOSED 1992 CAPITAL IMPROVEMENT BUDGET The top priority project in the annual Capital Improvement Budget is the new City Hall. In 1991, the City purchased the Marquette Bank building, located at the northeast corner of Holmes Street and 2nd Avenue. The renovation of this building will occur in 1992. Staff anticipates moving into the new City Hall facility by mid- 1992 . The next three projects in the 5-Year Plan are the three major transportation projects scheduled for Shakopee, namely the Shakopee Bypass, the Downtown Bridge/Mini bypass and the Bloomington Ferry Bridge. All three projects will be constructed over the next several years. The first two projects are Mn/DOT projects and the last one is a County project so the exact schedule for construction of these transportation improvements is not entirely a City of Shakopee decision. The City of Shakopee should continue to support these projects by involvement in the Scott County Transportation Coalition and by direct financial support. These projects have long been identified as top priority projects by the City Council of Shakopee during is annual goals and objectives meetings. The following is a summary listing of the proposed 1992 Capital Improvement Budget projects: A. Street and Highway Projects 1. Muhlenhardt Road This road is currently a gravel road on a severe slope (up to 10%) that is an extremely high maintenance road due to constant washouts and poor drainage facilities. This project was included in the 1991 C. I.P. and a feasibility study is currently being done, but construction will not be possible until 1992 at the earliest. Portions of this road have been petitioned for to either be upgraded or vacated. -2- 2 . Vierling Drive (C.R. 17 to C.R. 79) This would be a new street that is needed for development. This street is on the Municipal State Aid System and due to an excess fund balance in that account will need to be constructed in 1992 . 3 . Spencer Street (1st Avenue to 9th Avenue) Portions of this road will need to be completely reconstructed and other portions may be milled and overlayed. This project needs to be done prior to the downtown mini bypass opening in 1993 . 4 . Apgar Street (1st Avenue to 6th Avenue) Complete street reconstruction. Current pavement is deteriorated and there is no curb and gutter, resulting in poor drainage facilities and damage to lawns during snow plowing. The railroad crossing is extremely bad due to the numerous siding tracks (9 tracks total) and the issue of improving this crossing or closing it will need to be addressed. 5. Apgar Street (10th Avenue South) Based on the recent interim ordinance study, Scott County may be building the new County Road 79 alignment with Fuller Street in 1992 . If so, the City will be given Apgar Street. This street is currently a gravel street and a constant source of complaints. The County has designed this street and originally programmed the construction for 1991, but was delayed due to the City's study. The City could easily take the County's design and construct this street in 1992 . 6. Downtown Alleys (Spencer Street to Fuller Street) The existing alleys are severely deteriorated and need complete reconstruction. Shakopee Public Utilities Commission is considering undergrounding their overhead lines and the two projects should be coordinated and done at the same time. 7 . Sidewalk Replacement Program The City Council initiated an annual program in 1990 to replace existing defective sidewalks, with an annual budget of $25, 000 . 00. -3- 8 . Maras Street Currently, this is a private road located in eastern Shakopee just off 13th Avenue. There is industrial development off this road, but it is a substandard street. Currently, it is dirt/gravel with poor drainage and a severe "hump" over a gas line. It is also an over length cul-de-sac. The City Attorney is attempting to have the City obtain this road and once that occurs it should be upgraded to City standards. 9. Harrison Street (3rd Avenue to 6th Avenue) This is the old state highway. The existing concrete is severely cracked and spauled (packed with holes) . The exact rehabilitation treatment has not been determined but it may consist of anything from milling/overlaying to complete reconstruction. B. Sanitary Sewer Projects There are no Sanitary Sewer Projects scheduled for construction in 1992 . Several sewer projects have been scheduled for construction between 1993 and 1996. Please refer to the 5-year Capital Improvement Program. C. Stormwater Drainage Projects 1. Upper Valley Drainage Phase III and IV The Upper Valley Drainage System is being constructed to provide necessary drainage for the Southerly Shakopee Bypass. Phase III and IV will be constructed between County Road 79 and County Road 15 and to the bypass. The trail will be constructed with this project. D. Parks Projects 1. Lions Park Pond/Trial Extension The pond and trail extension will be constructed in conjunction with the remainder of the Upper Valley Drainage Project, which will be done by MN/DOT with the Shakopee Bypass. Funding source: Shakopee Lions Club. 2 . Shakopee Municipal Pool Repairs After 23 years, parts of the filtration system and water pumps have become worn and are in need of repair. The liner beneath the sand has disintegrated and needs replacing. The pool is of vital importance to the community and greatly appreciated by its citizens. This is a high priority. Funding source: General Fund. -4- 3 . Tahpah Park Parking Lot Extension - Trees and Shrubs Completing the final phase of the parking lot at Tahpah Park will be helpful in alleviating some of the parking problems at the site. The Shakopee Jaycees are embarking on an ambitious tree planting program for Tahpah Park. The new water supply to the park will improve the survival rate of plant life there. Funding source: Shakopee Jaycees . 4 . Lions Park Tennis Courts Three years ago, large cracks began appearing in the asphalt on the Tennis courts at Lions Park. The cracks have been worsening with each advancing year. A consultant engineer recommends completely replacing the asphalt. It ' s possible, the courts could be used another year before anything is done to them. A crack filler has been applied. Funding source: Park Reserve Fund. 5 . "Rain Drip" for Municipal Pool The Rain Drop will be installed at the time of when other pool repairs are done. The rain drop looks like a giant size umbrella in which water flows up and over its top; somewhat like a waterfall . The Chaska Community Center has one in their indoor pool. Funding Source: Shakopee Lions Club. 6 . Stans Park Land Acquisition The Comprehensive Plan identified the need for a four acre neighborhood park near the Shakopee Senior High School . The land is proposed to be acquired through the park dedication process as the are develops into a residential neighborhood. E. Municipal Building Projects 1. New City Hall Renovation of the recently purchased Marquette Bank building will occur in 1992 . A separate fund has been established to purchase and renovate the new City Hall. Staff anticipates moving into the new City Hall by mid- 1992 . F. Fire Protects 1. Fire Station =2 Land Acquisition In 1990 the City initiated discussions with a property owner for land acquisition. Negotiations should continue in 1992 . -5- 2 . 3M Opticon System The emergency traffic signal control system was requested by the Fire Department in 1991. The 3M opticon system would be used by all emergency vehicles including Police, Sheriff, Fire and Ambulances. G. Other Projects There are no Other Projects in the 1992 Capital Improvement Budget. SUMMARY OF THE 1992-1996 CAPITAL IMPROVEMENT PROGRAM All other requested projects have been programmed into the remaining years of the 5-Year CIP. In addition to the table showing the proposed year of construction, there are individual summary sheets for each project explaining the reasons for the project sand the estimated costs of each one. FINANCIAL SUMMARY The total cost of all projects included in this 5-Year CIP is $22 , 690, 000 . This comes out of an average of about $4 , 538 , 000 annually. The total for the requested 1992 projects is $4 , 193 , 000. SUMMARY The intent of this 5-Year CIP is to serve as a guide to the City Council to identify the future needs of the City in the area of capital improvements and to allow for the establishment of adequate funding levels to accommodate these improvements. The adoption of a 5-Year Capital Improvement Program greatly aids staff in long range planning of projects and identifying the needs of the City for budgeting reasons and for maintaining adequate personnel to administer these projects. Respectfully Submitted, Lindberg S . Ekola Dave E. Hutton City Planner Public Works Director -6- W O 0 = < 0 O• •••• .•O < v N CC M O /W t s 0 0 00 C V 2 W O O AC N N 0 M N = N W O - 2 0 CO W 1 > Y C CC W Z < N O. W N CC W j 2 3O O 0 O O O O N O O 0 O O O O W N O 0 0 0 0 0 N coC7 - 2 W 0 0 0 0 0 0 N ^ 0 1!1 to 0 N O N6/1 N M 4.1 MCV M O 2 < M M M 0 LL 0 0 0 0 0 O O O N O O 0 O • O 0• O C O V fa N Nin w M M M r O J W O < E i• W O - - > 2 N_ a O - M —J <s O 0 0 0 O 0 O J O 0 O 0 0 O O O < 0 O O 00 O N O 0 0 WI 0 0 tet ALL O0 M M M M NN Q M M M 44 M O . u p. . t 11 E 17 Y ~ ✓ < < 7 m r W 0 > 6i O >- CJ I CC + CC C! .0 d L d! N rU = 0 U L. P 6 •O 1- O r 0 • c N ✓ ✓ ✓ < 0. s 0. N r " v dCIL �. CI 0 N WC) -f .ACI r ^ U • m •CI C.1 Q > 0 1- AA, - 6. O. CC Y d > a > aC v C7 CD a r_ > OC a 6 Na- < <✓ < O C O u7 r U .- N N N M v N `I ti CI W • < < < < < < O 0 Z P O. P P P P P a W V a S < a ¢ 2 a O - c a N a 4t a N LLl C R oG a a a V yea OO O 0 2W O O O < H4/1 N 0 O 4.• 4O _i :1 . 3 o O - a < 0 0 CO N C/ W Z mW < N W H a W W CC SU L Cr 8 Wlel O U y O N p a Cu O O N O a N — •43 Le, vs O N N NNLA. W N N M N CC 0 a. y 0 2 0 N _ V m 40N - < W O - = O O O y4 a N O • a 0 z a N O J < oeo U a N N 44 S N F— O o .•• •• -+ O O O O O O < - a 0 O O O O O O O Oa. 0 0 v 0 O O Q ~ V M N rci N0 MM N MU N N 44 > y C > Cl C W Y < m > N S u u L C - C .. 2 .`. 4'. 'Q < ` �° < a it �' S N U N - C - - a W - ... - _� 181 *1 0 m - > w - _a a CN _ Cl CU COV/ a 'X L > y 8 H L U 2 r = E a- A 7 2 _ r 0 O s- ea U O, a W • < ^ ...• N Oa < v a N N a G ce P a a p eV P N P _g_ U.I CZ X < CC 2 0 ... 0. < CA CC I— 0 U.1 ,... .:, a < .. 0.• 0.0.I •••• CI 2 U.l < CA C11 p co 0 = . . 0 . . 0 0 . 0 . . 0 . - . .. ,.. < ../. 100 ../. PI 2 1001 44 ..... 0 vo 0 (i) 0 0 I—. UJ > 0 0 0 0 Z Ne OC CC LJJ < (/) 11.1 PA LA PA LU CA 0. UJ CC 10.1 IA 1.0J 2 LI cc F5 . u j v, v, > 0 = vs UJ cn O 0 = ce) ...0 CC — CL In 2 • . . = • 0 ..,_ . CO •-• 2 0 0 0 ..1 0.14 0 0 0 < X 0 0 0 0- .L./ 0 . •••• > .,--. . 0 0 0 0. 0 U PA un LA _1 < . i.r 110. 1,. V, MI 41 AJ 001 < X 0 0 0 0 0 0 0 0 0 0 0 0 0 0 •' • -.J 0 0 0 0 0 0 0 Q- < I- I- I/1 LA" . . - In c0 In WI 0 0 0 0 ...r mn 41,1 ..3. 00 IA LA < 1- C.) 4* IA IA PA to, cm 101 MI 4•01 0 I- - 0 .... E 1.1.1 x 0. 0 - -. X J.‘ tie 41 .70C 0 0 Z ..1d •••• ••••• C ..c 1... C 1. CC 0. 8. I.. ••••• ...1 0 0 ...1 = al 4. ••••• a 0 011 < 2 ....° < 0 0. A. 4 (NI 0... O. ...1 4 .. CI -. c- a 00. .... T. a 0 U ..0 u a Z 0. 8 cn E- - > - CD . 3 ,3 0 01 0 O. C -.2 .0 — c. • CLI C U - o — C — a •-__ C./ C < CZ cel M In — 0 Li CI AI = II) C) . 0 0 cc CO 0•C 00-, 0- ...1 .- Ca ..1 0.- S r ... 12 3 cc a C. a E c0 x = 1- 0. - . - ,... „,-, ..., , -0 ..- U CU • 0 0 0 0 III -' 0 0 2 Al IN A.1 A.1 MI 2 0.• 0. 0. 0' 0, O. -9- W 67 O S < O CC 2 O o▪ < o N y' v p M W > O a 2 O < = O dm Q 2 1.1.1I O < y O CA m M coW N a 2 a O a < M 2 O M Cl) o W O o Z Ypc a O; W < N CC M W N 0. W M W 2 =U ce WS O cif O N N 2 W N N Oa U, 2 < LA 04 CL. O CA O a O O• O LA ...... 0 m 'O W 2O O O O J W 0 0O < X O O O N a O 5 o O c < C ,.r ry CO U S 44 N N CO 44 44 LQ = O O O O J 0 O O O CL < C O O ~ N O 0 O M S .O U M 0 CO N WI M M U 04 -7 N O CC E W 7t + L Kat - 0 J 2 4 J < O N N < N1.4 ...•.. a 0 - U ICJ .CD m. C 0 N < U Ca a 2 CD 0 o. 0 u a y CC C a T m W J = M U N W • 10. W -I o 0 2 N N 1 P P -10- N 2 C _• t...4u u 0 U L. •E ` 'E N. - a .. — Co O _ O • U U . U U \ \ \ O \ \ \ O \ \ \ O \ \ \ Q \ \ \ N \ \ \ N \ \ \ N \ \ \ \ \ \ O \ \ \ \ \ \ O O \ \ \ O \ \ \ 0 \ \ \ 6" \ S. ▪ \ N p \ \ \ N C^ p \ -• \ L \ \ \ \ ., \ �'/^� U \ . \ V/ 0_ \ \ \ \ \ \ N \ \ \ \ \ \ O 2 \ \ \ \ \ \ 0 CV \ \ \ \ \ S. M W0 \ \ \ \ \ \ S. \ \ \ \ \ (L . \ - \ \ - 2 < Uy N. N. \ N. \ N. N. N. \ y. N. N. \ \ N. \ N. N. \ O O W 0 \ \ \ \ \ \ \ \ \ 0 0O W M \ \ \ \ \ \ \ \ \ N a \ \ \ \ \ \ \ \ \ O N O U \ \ \ \ \ S. S. S. \ v N a. S. \ S. \ \ \ \ \ \ M M Opcc S. \ \ \ \ \ \ \ \ CCN. N. N. \• \ \ S. \ \• \ S. O 0 N \ \ \ \ \ \ c. INA \ N. N. N. \ N. ti 44 \ N. N. N. N. N. M M \ S. \ \ \ \ J T N N % .. N W a V U U e. ^ N vsN `{. V < N 4 c N O O W y (4 - > O 0 ZL U. N O 2 C C i 0Ca a _ _ = Co 0 C CO .- U V N a C) v CD W O O O 0 0 0 0 O 0 C 0 < 0 0 0 0 0 0 0 I X 0 0 0 0 0 0 v` N N 0 0 0 M O 0 0 M N 0 W 01 T, _ O O O VM N N M M r 0 M U U W 0CC N 1. 0. N o _ > 2 Cl. M < r. < O co . .Y = N .0 d 0 0 0 0 CC .. e 2CZ -. 0. a C "C 2 C U. L U U C1 = U >. x U. .2 N 2 0 0 -0 0 0 N G COU. C .y 0 Cf N G. a 2 0 -0 mC- G C N > - 7 0 U. u (4 < w U Y 0 U. C C_ W W C .. CJ OC 0 N U 2 S n > U < 2 N 1• "' CI. N M v N. << < < < < < 1 1 Cl > m u v ...• Cl u L Cl CO 2 d P CC 04 0 0 . C _ Cl, CL. O P CD U CD c. = I— ~ 2 Z U U P W o OC W W O O > O p M O O O N p Cl; - O O v 0In O g M O cc ~ M - CC Cl- Cl_L0 0 0 0 0 2 0 N 0 0 0 0 P Cl, O O O v0 M ~ M M —J Q Cl,1— Cl y Cl Cl y W y V CJfyj y y - d' N y N N N y < < < y N .... Cl\o Cl\ \o CA \ y < 77 • U 2 CO m co m < < GCl _ _ COCl �i/ ,_.. O O O O Cl CO V V (0 (.7 .+ v. CD C) T LIJ 0 O 0 0 0 O 0<_ O O 0 O O O u+ '^ - 0 ; 0N 0 poi col n n C) W ~ M M M N M M r Cl)CD cos U U T t++ 0 cc 0. T = ` .r Cl) to c 3 C C Cl Z5 a C C d Cl y C0 CJ 'C Cl > CC U N Cl Cl N Cl) C L. ClO Cl r Cv y r 6 Wp - '0 03 N vNy T v C .p v V 0 Ny0 Q C)NU L yy < O L. yQ CJ Cl 0 f7 • Q L W W .r y H 2 < - GO < 6 < 2 M x > C -1 7- O ..0 •••• ••• CO 2 .0 •••. 6. 0 CO /*I ••• •.• 0 = U ..., ••• 7 ...7 I., .... ao 0 I. 0 ..... al C .... O . L U ..O C C .... > CC 0.• . 2 c, 0 . < ..0 1,;* rs CCs-7•- •••• (.../ 0 0 0 0 CC Ln g 0°- CL 3 .... - U Cl) = c. - 0 0 H 0 ...., = 0 a 0 0 -1 U 0 Z0. 0. 0 ,,-, 0 LLI 0. ...- P,1 1.4 0 ...1 - 2 w ., LU . 0 LLI 0 0 .. > u., .., 0 'es 0' 0 sa. 1,1 4" CC. O -. 0 .01 CC CL. la• 0 0 0 0 0 0 2 MI g g 0 0 CO 40 10 _J < H vl 0 0 0 0 0 0 0 VI LU 61 0 0 0 0 0 0 0 , .., U 0 0 0 0 C., CL ez 8 . -c .... vs vs < cs, sn < 0 < ... 0 tn < < ..... 0 < V) 0 .... . .... 0 -2 -.0 _ , _ _ 0 • (...) . _ 0 = < < 0 = < 1., CO 0 0 d...r C V •-• = . ... ... • CO - 0 c-n vC) 0(.2 a - 0) CY) T- ..., 0 0 0 0 0 0 0 0 0 0, 0 0 0 0 I 1 00 . a 0 . 0 0 0 ... 0 0 0 0 ,,, 0 0 WI 0 0 0 VI MI I" ren VI a) •01 rs ...? 0.• v.) 0) Lu 44 4* IA 4.4 4.4 .0 •- 0) cn ..— cn 0 U U .r.. LI) 3 -. ,. .0 C. .... 5 >' 4. 0 1... 0 Ps r- 111 0 < a, 0 . co a r+1 - C .- ...C ,..• L. • LA ,-...... . > a Cr • 3 0 ... C.) - 0. - 0 0 0 - ,... > 0 Co Cc > • . -• 0 0 > ce 0 ..- U, > •< .... - C ..- = ••••• U -, .... - . CI •••• C C = cc c- ..• L. L. -. 1.. U . . --• ... 0 CI 0 0 0 < 0 0 0 C4 .... ...• O VI VI .. ..r an ... C .... 01 •.• •-• U :Li C .- 0 > T , c . 3 L. < 0 tr 32._ -. .- 0 0 0 .... :-. 0 •-• ... L.; es — —. .1.0 U r•••• 0 C ,I .... x u.i U C L. • L.. • C C c- • in C C -5 ..= I.1.1 1.61 9 ...0 61 = GI 2 3 0 0 CC .... ••• 3 7 ••• VI 0. .... . .. • 0 O. •••• • > U > U 0 VI > U .••• Cll CC O. . 0 .- v.) 43 1.. c0 0. . ..- •- .... ...- •- IN CV < < < < < < < < —13- >. O t. u z >• .7 u O 7 U E L _ C 0 .. X z :n 2 O p O p O M {1 ._ 0 O 0 84 OO 0 M n 0 cc2 p. O /1 O 0 1� 84 Cl, U O OG 0 0 I— coa o 0 = 0 O Z o a 0 o P0 W u. p « W W T 0 0 0 0 00 ` W M 0 0 / N0. 0 0. O O 0 O dO 0 N N O MM W M N La. L NIA 0.J Q ry N N . . N W q N N N N a. U K dNN? N 0NN< 0 00 < dNN NN<N N Nx y U z _< C yH O _ m<0 u CO T� 0 p 0 O C)CD V V (7 0) T 1.11 0 I 1... 0 0 0 0 0 0 2 O 0 0 0 0 00 0 0 0 N — 0 0 N 0.. 0 0 0 0 M N N 0) W M M M N C. » M M N C LI U T u+ O CC C. O J.- = Y L 10 < p — L C. 0 r y C. - v -. u a " u Cl > .. < 7 0 < 7 0 ,� 0 LA .L. N C V < u �.. o u u p v p Q C H > CI y 0^ .`. 7 _ < 0 _ U d 0 < ^ _ 4 v .moi y .... > 61 > V W Y ` < - < U Lcc W W L.m `. a' 7 5 0 - " C p = u N CC v U D z �. .p V) f- n. N In in G I . N < N N I N N N CO < VI N -14- 2 < .. cc ._ 0 0 0 0 0 CI 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 2 g 1P1 0 21.2 0. In 20 Q-. 0 44 .-, ... ?,,,1 4,4 10 10 40 10 •0 {..) CO CC ... I . VI C) ...i. ZU ..-- LI-I 1... 2 .. .., ... UJc > LI.J VI = 1,1 0. 0, 0 CL. = CC .... CC Ian 2 ns g ,... . —I 0 o E'''' 61 o 67 LW 41 N .• U N VI CL S < ... 0 < ...... 41 < C./1 3 12 0 0 0 • 0 z _ . a2 0 0 0 0 GI 00 0 0 0 • az = e.. 0 a 0 0 to 0 to 0 C) 0 (SI (4) •6... vs < t0 u1 ul < < 41< 01 < 2.5 C) C) 1" Lia 0 0 0 0 0 0 0 2- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I < X . . . - .... 0 0 0 0 0 0 C'4 VI 20 i- tel In 0 ill IA ri IA O. 44 yk .— iA 40 44 C) . a) C".— cn 0 - . U U La T --$ 0 -IC OC - '0 0. a .- a 7 > 3,- 2 V • < < 0 X 2 3 .... - . . >. ..• 4. cn = 1- 0. V/ U .... ....• ..? Ci ... C) VI 61 le Sm .... 7 - - -0 0 '0 as U as s- as = cc cc •-• so as 0 1...1 4.* < ....6 t../ 0 1. .1.• 0 WI 0 V ra LOI .. . ac ... C) ••• ... 0 0 :I a us . • 61 Cl, • C US VI C ••• C •••• < 0 <I > RI a a >. 0 20 a a < ,- la > -, C) -2 L. > (Si > N s... 1./ C ,..i < Ac 2 C) •C LI < 441 U N .0 II 4. 0 - - X L. us (5) 1.. •••• IL 0 -.Z 0 1...' C3 3 '' .0 - = C) •,0 L./ •.• L. L. '.. 0 •.. .... r. 0 .2) = .." 2 0.. r•I 03 :el CC 0 rZ.1 a. .3 = cil cc 0. 0- 0 •-• mi Pol ...? LI, . CV P.,1 P01 /..1 f.1 r,1 Pol < < < < < < < < -15- 2 o 0 0 O 0 < p 0 0 0 0 v0 Y M PT CCM M . M N N v CD N N M OO 0 . cc g0 0 C P ti _ U Cl) O N 1 y 0 0 z O Q 0 U P W 0 v U. Ni Cr W N W ' 0 0 0 0 W 0 M O 0 N0. O 0 0 OCT & N CO C 0. N CI. 0 0 pN. O P O ..... .- N N N N N N y N NNCy 0� yU y y Nn. . <� < N < Z '9 < rQ _X y 3 • 0 V s Z m p < c m o , co - 0 - �� 0 0 y . G //C/ C) f_ WO 0 . 0 0 0 00 0 I S 0- 0 0 O 0 N = o g 0 C) y pr) r 0 .p W N N N CO CD VII C ,n tet P U U N T Lia COC 'dL 0. m 0 y z g > Oc m < 0 0 i m U y t 01 .t < = CIC L I y d O CI U d 00 U Od J - .pi 0 W x y N 0 < 0 u to u \ C) Cl F- > 0 n > > ' oL > r W {lig U) r •C' < < E < W Cr 04 1 L - Q W CJ p `. .... - Y Cr y y M = V Y v U W f V Cl) 0. '0 r. © a < M 1,1M M < < < < -16- N 2 W g U L pd. P CC 00 0 /O►� 0 LL N O P 0N Q Q N �r r CO U 0 00 K 0 0 H ~ 0 N 2 v 0 0 Z OO O U O W CN N C 0CM c O y O O 0 O W 0 0 0 C M u9 N > N d ^ d M N W O 0 N N O M IX am pNI . g J Q I_y Lr O — W 77 m U L -. L L C Q N7 T N J+ Z w y 6 V. • U _C — y L y Cy , � y C. 2 u n u 0 y m y • u C) C) 0 0 T" 0- 0 00 < 0 0 0 0 0 v+ III CV N M a co. '43W N _ N - PI NTJ ,_ N C) N 0 U T VI m C- i. ^ U m 0 "1 ` W a L 201 CC O OC d d L. 0. a .+ L Cl d W 0 o • - 0. U C V o a3 7 W J CM Q. V C N < CA C >. N W U Vy y CO 0 r 0 d e N N C. N CC 1...W v a x c. O O C G ^ N Y D d d re 0.. > U 0 L > ..• 2 2 < C Z • 7 < 0 N _ 1..1 - • L u < O > U V N 2 N K C 2 .O 0. _ N m v m m m m -1i- N L 2 N 41 W C N gu > O O L S 3 2 QOO O O C O cr `g O O /}� ..,„0- CU.- O V v — I....�A N N M Oa cc P 0 O O ^ z M 0 1y O I— N N ..T CO _ IA M CIC _ o zO� O I 3 O O0 Z O O 0 W O CO 4,4, W LU 2.. 0 0 WI 0 O O O P 0 0 G N 0 0M N Cr a M Q. 0 0 O 2 pN. O Oo _^ P O v� .-OO O J4.4 M m.. N -' .., r .�. N 1 N_ _ "- ` y CI- LJ In o Cm < N O = m C m = a Cm m L CI L CI _ ," L CI • , C 7 u 7 G D G 7U U m = C1 a u3C 3 C 3 3 C? N > N > N > >N >N C1 L N >O 0 C v Cy O 4/x E E cc E s E z E cc E sCO 6. > I. L. L. L. 4J 0 L 0 L L L L N O 0 p -' C 0 C- .. — L //��� N y N N O C) = O O p C O O p G N o O O /�+� 0 O v O - VJ H a N1 N O O v W co N M M .NT ' v - N W M - N N M " O N Li T' 11.1 cd 1 CC CI to 0 01 u co y u W = C C 01 CO C 4) C C O m C EE at 0 4 a C-< a L c c z0 ).. Oc b Y N — CC N - Y C E < J W 47 J L dJ H A —0 O < O > — C� J d N y m O < N C -� Co —. H Cr ,— i— = H L 61 - C N A >. m ui 0 = L1 X N �r L L L yX C (� W )l- m 4 9 y CI CO C1 O Q V7 1 C CI L W v -„ u CA a C a c c = a > CC vL o N N U Li U U U LI Vs `O U Li U —18- ..... a u o ..c c.1 o Cui 3 4- .- O. 41.4 = -a I...1 0 • ..• g 4a >. .... > 0 0 V/ 6. 4.1 I- Cu U • L L Z t..) C ...c 0 LI 2 a a a 43 - w, ... CC .- (...D O a a a - ... a _. I_ co U a cc o l '' 1— Cu) o 0 = .../. Z 0 & La in ...* .— U.I ..._ 0 . 2 . < ... III ,- a -, > t.,., & Cl) 0 O a. 0 . ac CC 0. CL 0 0 0 0 0 0 0 CD 0 0 0 0 0 0 0 0 0 0 0 0 0 tv & - oo 0 ..s. PA P., -49- g 4, g Cu, in- .4.7 ,...... .-. IA - MI IA /A IA 01, 1‘ . Cl) Lac C .... C.3 0 DA CC 3 CJ > ..- •-• < crl ca 5 • ,... 0 Cu Cl) ca L., .... C', C C CC, C C -0 • 0 z — 0 — --• C3 0 3 -- .1 0 0 ..... Cu 0 0 ..• L ../ .• ..• 0 2 0 Cl CI -NC en ',2 CI .I4 . a C C C r- C .... 0 CD 5 = - 0 ,- 0 o 4.4 0 0 0 C3 O. 0 0 X ••••• O. 0) 0) 1".' ICJ 0 0 0 0 0 0 0 A. 0 0 0 0 0 CI 0 < 0 0 0 0 0 0 0 I X . . ... 0 0 Cu) v.% co o it' CV 1.... 7 Cl) 44 .-- -.7 b* AI 41/1 /A V1 .. 40 '.7 44 1.1.1 IA 0) A. 0) VI 0 _ . 4./ .0 5z - L 01 I- 43 CC . •••• 0 .0 CO. 2 0 -J 46 ..- 0 C d3 IA ... 3.1 cn C) c... - 1- .... ._. -I4 41) .-.. a g a X 0 Z. 46/ 4.3 0 Cd) •-- IJ-1 0 I.. •••• 0 .- CC CI. j„, ,... L 0. -_-' 1.1 ...• .14 C 4-1 L./ ..I4 .... L. 1... U.. — c... 0 1...1 4A 6. -- ... CI C I.- 0 • • 0 ...• ad -4 Cud Cl CI C) 0. 0 CI3 Le C) CZ O. ••• 0 0 O. I- O. 0 -.. 0. 0. CO > h. ..... CC ,-. .- L. .0 - C- '?.? VI .... ... VI VI i:1- o. 0 1. C.3 c.) C.) C "V ..- cri C. CP C C "- ••••• •.-- ,S: . C C, A u.1 0 C c 0- .0 - 0 - <-4 0c a U' ›t- le -1 ••••• 0 .., Q 0 IC Cull 2 . .. U = 0 ...i C. Z = 1... 111 .../ I•• X r• a ;-3 LA < < IX CL O. . .- Ad Cl) ..I. Cl' •0 /... 0 a 0 0 0 a a 0 -19- N z W g U 2 O < O & O LM L O O C.1 M O O 0 0 O Cr NO O If.:. O 0 /� 2 P N O O LL 0 M .2. N 44 ,^ r v! L3 c.— 0 1 N 0 Z 0 �p.. O U 0. CO' W N tS M S 4. W W 0 0 p M O L to Les g M O N Q a M M 0oc 1 a ^L { - P J O Q I— y W ^ U LL C > a L. > > > t, • �/ 2 V m 0 C N C y N a o CO 5 Y 0 L. C a ( Y Y C7 a O I.. 0 L In a a co C7 a C a a C) T IL 0 O 0 O 0 0 O O 0 0 01 0 0 0 O 0 0N _r- N//* cO N 00 NI O v O IA 14 IN a/ M VT O l'''' U a 0 a J Z m O co o u a j L — C a a C L C Y ....• C N Ca L Lo Y C Y C r U a O a C C a_ y a O U C v� I C w Lia V/ u z o I. o a a 0 a A IC v .� — .0 — >. C °C ra p m a -' O v C7 Cl a r 2 a N t_ N L > '� tai � X 0. V7 U 0 q a 7 L. Q W S — C 2 0 y < O 5 Z a a 0 a a x Y p CO 0. C ^ N M .t 0 0 p 3 O p —20— N i W g U S O O0 0 0 G� O O O O No < P 0 o 44 .4i M 0 M M 0 N M O O 0 0 0 M O 0 . CCI" P O O a. O - M 0 N PP M CO �fJ 0 ce O IC O N O 2 ..t Z O P O U P M W IAO . 2 LU W O > O O 0 M - W y1 N M O 0 O CI CC a. 2 IN I— N 4.— 4. U Li. CC > U u C) > > 61 > > In L L > L L CJ N N u L u u O (] N C 0 0 N In 61 N 2 G 0 CO u CJ N Cl CJ P. z u CC CC o Cr 2 Y m 0 L - Y Y (C) 0 L C . 61 L Y L L �'i o • J1 Q L m C3 0 0 v > a m o o_ C) 8. CD T• lia O O O O 0 0 O I S 0 0 0 O 0 0 0 0 _ O 0 0 0 0 O N N N M M O M 111 44 1,1 44 N C) W - N Q) VIO - u T > L z o _ u O J L N 61 L 07C L L L O. C C C u u Y u ceI - Y ,.- 61 .. ... L - Cf U U m L C!U Cl O Y u CI. 3 Y C W N C CI C T. 0 J CI - CI Y W 3 O. O L N J N - U J L O O L C U CI Q O OC 0 W " N U s -3 U L 'J O. U •- >. a C7 i - C Y 0 C Q U O 7 N W L m G O. 01 u L O U c Cl O '.3 CC 0 E S P. W U W O. S 0 .L S W 0 Z' Q cc L o. in .O A CO P O N N 0 0 0 0 0 0 co co -21- N_ 2 W g U 2 O g O ..,- PRS N 0N M O O O Vp4. O rr P O L.L. O N //� U M /9 CC O O ' .i O O O O O Z U P O V, ill N M O C G 6 W ,_ O O O O OW O MO O o O O > WNd P co— » .-M NN OMM O p O M C Cr 0. C> 0 MA O v M M J Q I— W — U CC LL S < N . LI 01 y y • U .. 0 0 2 O q 4 co ° oC CO °O O O 0 O0 rn CD 'T"'" W 00 0 0 0 O 0 c. 0 O O I O O C 00 O O coo M M O^ N NM M o• W C) . v N M C� O _ U 1 as L 0 0 O h4.3 C co m C y a GCI u G N r.. C Y 9 Y W Yy O W N 0 L � Y 0 L L. C L 9 C] O G a 01 d V C .� 0 a – N C C a � a C/ y . 0a t. n ^ . ' Q Y N W a O y C Vl C UL r C a 0 r U a a N M v I" 'O N N N N N O O O C O i O -77_ Is, = u g u 2 < ... 0. cc 0. (....1 0 o... . g 0 _ CO u = I— ce ..- vl Zx 0 .4. (..) LLI 8 LLI La.I 3- 0 0 0 0 o 0 > a U..1 1...1 0 g CO gO a in.. IA IA Q. C CC = Q. CL 0 0 0 0 g MI 0 0 0 tr% cp. u-, — CV .... I'S .J < ..... 4.. I—. C CA a ...... 14.3 CS GS fa. L.; ce > > o o < 8 L CS, k; E. - - • 0 <0 2 -. ..... - cc 4 0 ... ..... CO .... c_ ._ C c c. C C-.1 -. LI &a. 0') Cs) T- 0 o 1.1./ o ,- o 0 a 1 t X o . o 0 C\I _ a. C', 0 in 0 — 0 cn ru tol pn Cr) t&J ••• .., 1- C) cm IA - .. 0 C...1 L.) Us -) 0 at ce C CR 3. - C . (.1 2 -, > (2 2 0 ..... C 2 - a .. Ca .41 a rx ..., CM ... —4 4-.4 4.4.4 —44 = CC 31 = .- 03 C..) = C .- 0 0 (e) 0 0 -, _..1 ,..4 >.. - 3 _, ,-. 4 a .... ••• .Ir 0 ..... 0 G. ... ail U 52 — In I•••• LI > .... -- C.) (..) 52 -. -IC LI - .... LW 3 .3 6 2 -, C, .5 D CI Z 0 Z cx 0 0. 0. :C i Z 3. . ... CV 4.1 LAS US -23- 4/7 ... ,./.4 g L.) 2 ..0 cc g 0 o (3 o . CC in C. o o.. = g . 0 ...., 0 0 CU . -• .- .- ..- 44,1 64 Cr) C-3 0 12 H e- LA Z 0 ...4. gc..) LU — 0 - 2 ce LLI U4 3,- > U. 41 W> g - 0 0 a. ... • 0 CCc. 0.. o 0 o o 0 o 2 ,.., g 0, ... . 0 0 _ 0 . 0 _ co 44 MI 44 .1J < ... H g g cri ...., CI_ ,..., nc0 > 0 > 0 < acs tn i- E. ,.. - - -2 , 0 = _ 0 0 . CD . CL .- 0 --7, • CD Cr) 'l LAJ 0 0 0 4-• 0 0 0 0 I < o 0 0 0 CV _. — 0 o 0 0 0 ti) r‘.1 e• mi co CD ,... •-• 1441 CD . . 0 4.7 Ir' ' 2 0 C 5 1— 0t — uf 0 at a-. .... >. —I u) — ,... ...., ..c 0 o ... 0 0 ... U ... , ... CC 44 •C ... L. Lel CA a. ... cL ... L.44 U4 C L cc L... CC 0. . •-• es.3 1 ni ... .... ..... ... -24- N Qcc 'o 0 o COCCCC y O ps. Z w LLl c a G i W ` w 101 cea O O a CC cc J I - W Q.. 8 • 0 G CD C) rn T uJ N H /� W C) V/ - OU O N y U CC 4.1 CJ y O C- p a OC U W W K C. -25- e, z w x 6 U G 'O P //c P 0 pp P Cf) r N 2 z v.- III W O CC2 < W Y W O W pMp. O P ci O. CC A O O O O O O O O �,j.. O M O O O O M O O O O O O O 2 MI P N O v v0+ CT CO a N M N N M M M N _ V JA N M Cel LLJ ^� U W ce c _ �f rn O �i G • U S O 2 W W CD V/ r— W O O O O O O O O O Ir O O O O O O O M O I < S O O O O O O O O re O O N_ v O O O N 01 •0 ..O v O O n N CO <1v M �T 4n 0) W P P N M .t ~ N Lin M M M N N CO C) Crl O M r► LI r . d z O en O C C c. A c. m A u N cc 3 2 p 7 J U t CJ CO -.1 < N Q1 N L < W 41 N G N O O N . N N N O er u 0 G Z u u- u u u U U - N C! U U CJ L CJ W V O O C O Y d 0 HCC N 0.L. S N 0. ._ w a o tX C. O. -26- MEMO TO: Honorable Mayor and Council FROM: Dennis R. Kraft, City Administrator RE: 1992 Budget DATE: August 23 , 1991 Attached please find additional budget information for the 1992 Budget as requested by the City Council at the Committee of the Whole meeting on August 13th. This information will provide the basis for the budget discussion at the Committee of the Whole meeting scheduled for Wednesday August 28th. Page one of this attachment includes information on both unanticipated revenues for 1991 and unanticipated expenditures as well as unanticipated revenue reductions. It' s projected that the 1991 carry over will be a minimum of $22 , 000, assuming that other revenue projections and anticipated expenditures are accurate. As indicated in the footnote to this illustration, the $22 , 000 figure will probably be exceeded because of past trends which have indicated that all budgeted amounts are usually not expended. Page two of the handout includes potential sources of additional revenue. Pages three, four and five contain a detailed listing of cuts (and a few additions) which could be made which would result in additional savings of $185, 000. If the City Council agrees to all of these cuts and if the City Council approves a $121 , 000 transfer into the General Fund from Debt Service accounts there would be a potential surplus of $59 , 000 . If the City Council does not approve of the Debt Service transfer then additional cuts have been identified on the bottom of page five. This will result in additional budget cuts of approximately $68 , 000. The remaining three pages of this attachment provide additional general budgetary information. It is extremely important that the City Council carefully evaluate all of the proposed cuts and comprehend the consequences of these cuts. If all the aforementioned cuts are made the City will not be providing the same level of service that it provided in 1991 . The City Council may wish to consider establishing and participating in an exercise whereby various proposed budget cuts will be evaluated and prioritized by the City Council with the assistance of department heads. Earlier this week Mayor Laurent and I had an opportunity to discuss a systematic program evaluation and prioritization procedure with a facilitator who is working with Government Training Service (GTS) on a process that other City Council ' s have used. We would like to discuss this process with the City Council at the Committee of the Whole meeting on the 28th. 1991 Savings/Revenues (Unbudgeted) 1. Marquette Bank Rent $40,200.00 2 . Department Cuts (See Attachment #2) $39,975. 00 3 . Sale of lots 3 and 4, Blk 52 $30, 000.00 Total Savings (Revenues) $110, 175.00 1991 State Aid Cuts/Expenses (Unbudgeted) 1. Local Gov't Aid Reduction $98, 000. 00 2. Fire Dept. Prior Year Equip. Purchases $13 , 640.00 3 . Hotel/Motel Tax Payment $76, 000.00 Total Aid Cuts/Expenses $187, 640. 00 1991 Budget Shortfall ($77,465. 00) less use of Contingency Fund $1.00, 000.00 Projected 1991 Carryover 22, 535.00* * Assumes all revenue projections are accurate and expenditures do not exceed revised budgeted amounts. * Important Footnote: Traditionally General Fund Division Budgets have come in under budget by approx. 4% annually resulting in additional dollars being transferred into the General Fund Balance. For the past five years this transfer-in has been averaging around $140, 000.00 annually. However, in 1991 mid year cuts where made and several unexpected expenses have been incurred which may result in heavy reliance on the contingency appropriation. Current 1991 Budget Imbalance $307,530 Revenue Enhancements One Time Possibilities *1. Special Levy (1991 Auditor Error) 21, 000. 00 *2. Debt Service Excess Proceeds 121, 000.00 3 . General Fund Balance Usage 100, 000. 00 4 . Ongoing Possibilities 1. Equip. Cert. Indebted. (Cap. Equip. Fund Support) - 2 . Truck Scale - 3 . Increase Water Rates and SPUC Contribution - 4 . Establish Refuse License Fee or Franchise Fee - $10, 000 *5. Fee Increases 6. Increase Admin. Fee Improv. Project from 1% to 3% - $10, 000 *7. Cable Studio Rent (6 mo. ) - $3 , 000 *8. Reduce allocation for Uncoll. Taxes from 3% to 2% - $26,250 9. Increase Sewer Rates and transfer into Gen. Fund - Other Possibilities 1. Early Retirement * Changes included in attached computer run Note that proposed cuts are listed in order of priority and in two scenarios: Scenario #1 assumes Council agrees to utilize Debt Service Funds as a transfer in - $121,000 and no general fund balance. Scenario #2 asssumes Council does not want to use Debt Service Funds or General Fund Balance. This scenario includes all cuts identified in Scenario #1. 1992 Budget Changes 22-Aug-91 Change Original Imbalance (307,530) Revenue/Funding sources Auditor's Omission Error 21,413 Admin Fee on Projects increase 10,000 Cable Studio Rent 3,000 Allow for Uncoll Taxes 3X > 2% 26,250 Debt Service Transfer In (instead of CIF) 121,000 Addl Revenue 181,663 Revised Status (125,867) Council Council Temp Wages 01-4130-111-11 (5,290)Council position FICA 01-4141-111-11 (390) Trans Coalition 01-4310-111-11 (5,500)$5,000 remaining Insurance 01-4360-111-11 190 AMM Dues 01-4391-111-11 (2,500)Drop Membership Misc 01-4499-111-11 (400) Admin Comp Absences 01-4153-121-12 800 Insurance 01-4360-121-12 1,530 Capital 01-4511-126-12 (2,000)MIS Clerk Filing Fees 01-4316-131-13 (100) Insurance 01-4360-131-13 100 Finance Intern Temp Wages 01-4130-151-15 (4,000)Intern FICA 01-4141-151-15 (300) Insurance 01-4360-151-15 (500) New Emp. 01-4100-151-15 (12,150) PERA 01-4140-151-15 (545) FICA 01-4141-151-15 (930) Health Ins. 01-4150-151-15 (1,560) Legal Insurance 01-4360-161-16 1,230 Prof. Services 01-4310-161-16 (1,000) Planning Comp Absences 01-4153-171-17 400 Intern 01-4130-171-17 (2,900) FICA 01-4141-171-17 (220) Postage 01-4320-171-17 (750) Insurance 01-4360-171-17 (300) Cut CDC 01-4100-176-17 (13,770) " 01-4140-176-17 (620) " 01-4141-176-17 (1,050) " 01-4150-176-17 (940) " 01-4210-176-17 (250) " 01-4310-176-17 (500) " 01-4319-176-17 (1,500) " 01-4320-176-17 (250) " 01-4321-176-17 (100) " 01-4330-176-17 (900) " 01-4350-176-17 (1,000) " 01-4360-176-17 (300) " 01-4390-176-17 (500) " 01-4391-176-17 (100) " 01-4100-121-12 13,770 " 01-4140-121-12 620 " 01-4141-121-12 1,050 " 01-4150-121-12 940 Govt. Bldg. New Emp. Custodian 01-4100- (9,360) PERA 01-4140- (420) FICA 01-4141- (715) Health Ins. 01-4150- (2,340) Library Carpet 01-4232-182-18 (7,500) Insurance 01-4360-182-18 65 Insurance 01-4360-183-18 120 Insurance 01-4360-184-18 140 Insurance 01-4360-185-18 1,600 Utilities 01-4370-185-18 (7,000) Bank Taxes 01-4982-185-18 49,000 Police Comp Absences 01-4153-311-31 5,000 Overtime 01-4112-312-31 (3,500) Overtime 01-4140-312-31 (420) Animal Control 01-4310-361-31 (6,000)Drop Program Fire Workcomp 01-4151-321-32 (800) Fire Paint Bays 01-4230-321-32 (3,000) Insurance 01-4360-321-32 500 Conferences 01-4390-321-32 (1,500) Dues/Subscriptions 01-4391-321-32 (200) Supplies 01-4210-320-32 (100) Bldg Maint 01-4230-320-32 (250) Equip. Maint 01-4232-320-32 (100) Capital 01-4511-321-32 (5,000) Inspection Workcomp 01-4151-331-33 (465) Dues & Subscriptions 01-4391-331-33 (775) Asst. Insp. Current Employee 01-4100-3 -33 (35,550) PERA 01-4140-3 -33 (1,595) FICA 01-4141-3 -33 (2,720) Health Ins. 01-4150-3 -33 (2,680) Unemployment 01-4151-3 -33 6,900 Contract Insp 01-4310-333-33 12,480 Street Supplies 01-4210-420-42 (200) St. Total Wage 01-4100-4 -42 (5,000) PERA 01-4140-4 -42 (225) FICA 01-4141-4 -42 (380) Reception Current Employee 01-4100-421-42 (9,350) " PERA 01-4140-421-42 (400) " FICA 01-4141-421-42 (700) " Health Ins. 01-4150-421-42 (1,200) " Unemployment 01-4151-421-42 3,000 " Current Employee 01-4100-621-62 (6,240) " PERA 01-4140-621-62 (280) " FICA 01-4141-621-62 (475) " Health Ins. 01-4150-621-62 (1,200) Street Correction Surface Mat. 01-4215-426-42 (16,000) Surface Mat. 01-4215-427-42 11,000 Fuel 01-4222-421-42 (900) Equip. Maint. 01-4232-426-42 (2,300) Shop Shop Total Wage 01-4100-4 -44 (4,750) PERA 01-4140-4 -44 (210) FICA 01-4141-4 -44 (360) Bldg. Maint. 01-4230-441-44 (1,000) Pool Supplies 01-4210-611-61 (500) Bldg. Maint. 01-4230-611-61 2,000 Equip. Maint. 01-4232-611-61 2,000 Telephone 01-4321-611-61 (200) Printing 01-4350-611-61 (500) Insurance 01-4360-611-61 (2,180) Park Staff Allocation 01-4100-62 -62 (10,000) PERA 01-4140-62 -62 (450) FICA 01-4141-62 -62 (765) Insurance 01-4360-621-62 (2,580) Rents 01-4380-621-62 (200) Recreation New Employee Recreation Staffing 01-4100-641-64 (25,000) PERA 01-4140-641-64 (1,120) FICA 01-4141-641-64 (1,840) Health Insurance 01-4360-641-64 (215) Recept.6/30/92Current Employee 01-4100-641-64 (10,350) PERA 01-4140-641-64 (465) FICA 01-4141-641-64 (793) Health Insurance 01-4360-641-64 (1,340) Unemployment 01-4152-641-64 5,000 Rink Attend. 01-4130-641-64 (1,500) Rink Attend. 01-4141-641-64 (115) Insurance 01-4360-641-64 (800) Supplies 01-4210-640-64 (25) Bldg Maint 01-4230-640-64 (100) Equip. Maint 01-4232-640-64 (100) Capital Equip. 01-4511-641-64 (12,200) Unalloc. Contingency 01-4991-911-91 (25,000) Expenditure Changes (185,178) Revised Status 59,311 Street Capital - Computer 01-4511-421-42 (3,500) Inspection Contract Insp 01-4310-333-33 (12,480) Recreation Recept.12/91 Current Employee 01-4100-641-64 (10,350) PERA 01-4140-641-64 (465) FICA 01-4141-641-64 (793) Health Insurance 01-4360-641-64 (1,340) Police Clerk 1/2 Current Employee 01-4100-311-31 (10,610) PERA 01-4140-311-31 (475) FICA 01-4141-311-31 (810) Health Ins. 01-4150-311-31 none Unemployment 01-4151-311-31 (2,500) Engineering Conference 01-4390-411-41 (1,500) Travel 01-4330-411-41 (750) Prof Services 01-4310-411-41 (1,000) Supplies 01-4210-411-41 (500) Street Temp Wages 01-4130-4 -42 (4,300) FICA 01-4141-4 -42 (330) Conference 01-4390-4 -42 (600) Supplies 01-4210-4 -42 (2,500) Shop Temp Wages 01-4130-4 -44 (4,800) FICA 01-4141-4 -44 (365) Park Temp Wages 01-4130-6 -62 (5,400) FICA 01-4141-6 -62 (410) Supplies 01-4210-6 -62 (2,500) (68,278) Revised Status 127,588 ro tri st' rx1 C) C) r=, trl m o Z a CD 00 co CD ° 0 Zz+ roroG�'b 1-3 `i (D r• cD O 0 cD N w r x 0 0 CD 0 CDD N r bd G. cD En rt r1 cD cn H U) 0 0" Cr 0 0 H cn 0 W rt 0 cD X 0 rt 0 0 0 rt h' t--' N 0. 0 0 cD rt CD CD 0 0 0 0 PO I'' rt cn rt CD CD H. r• n r. rt 0 UI oa rt 0 r• cn CD tri 0I-' rt U1 0 trl N r-' 0 0 0 0 rt A) r cD 00 U) W z n oI1 1--. wr )--.. n ~' r N Uo U) r' til o CD Cn 'b CD Cil 1/40 0 CD n w 0 fD rn tr1 0 0 0 w 0 N ,C 0 ¢. rn CDD y y r-' 0 0 U� 06 0 0• k 0 to rt N m 0 ,71 rot r't 0 UM C'' ea 0 �' Ul CD r 0. CD cn x m C H) (D CD ro U m C rt rt m g 0 0 0 a' N CDs•-,v CD '< p1 C7 '1 rt cr rt 0• N N• rpt 0 rt CD rt rtto n cD rt 0 0 Un co cn C UC 0 F... C i cDCD rt H t+. CD CD CO 0'a m UI 0 1-40 N I~-' ham-' N w r-' I--' w '-C '-C - B to .. -S .. _ r ' Ln I-1 F-' In N w w h. N) O. C) I-' 1" CO 4' N 0 h' W .D rwN Co 4' V 0OCUn In h. rn '04- r-, w rt .0 p N 14' CD VD O CN0oCaw C N0NV O Na Z 00 b 00 V N V V .0 O. CO w N CS N VI O N O. a\ P--' rt P. N CS Lk) CV N 00 In O. N1-+ N O. In '0V Ver-+ Cn cD Co Cn O. w N Co w Co 0 CO .D h' OS V w CO co I. w O. v 5-.. {J> h' 1w r h. w to I-' .O i w CO O. . w I-' N V In h' VD .D N) h' 0 h' CN V 4' V 4' V Coh' OCnUn F. w0. 4, O00 CO rt .0 4 N h' 4' h-' 4- 0 V .O. Ln Ln 4, N) OS O .. w h' S; Co Ln O. f-+ CO O w NCO4- .0V w Nwh-" 00NI--' N ah'' V V.> N '0 VI w 0 w V 00 CO VI w w V L� N 1/40 4- 0 LA P. 1h' O w co r .0 0 r w oo 10 '.0 r 1/40 h' P. r 4- q v N '� W h' r-' w h' O r r In N CO w N w CO VI r ON .o N .n 0 r V N O Co h' N h' O. h' 0 Cn O. Co N V 4> P. V N rt .0 v0 1 4 r--' O 4> r .o V Un Ln co ON Na In I-. .0 r Ln Co Ln CO to CO Ln O 4- CnO. O4> Ln V 4' C, V O, w h. Lo w N O In .0 w .0 h' N4' h' .0 O. V 00 NV O CO .O N N O V V V Ln Co -.4 Ln O O. 4' Ln CO .0 CO {o dA I-, I ^ J-` h' r 4" h' h' �o ✓ r V to O rw4woo 0 N CoO4' 4> 0 r-' 4- B O Ln .0 Ln N) h' I--' h' O ,I -4 o ON .0 h' O .0 rt .0 U I .0 00 Ln w h' 4' O. N Ln co Ln I--' l> CO h-' Co Cn C 00 N N I--' O. Ln . 0VI V In w N-- 0 ' N O I-' O. 00 N V ' CO I CO V V N 4> In 4' In O CO V In VI .o .0 r+ In L...) N Ln .0 N Na Co V V CO 4, N O O. O. N V O .0 N v v I-' ^ 4' I-' I-. w h' {A .-. -- L...) 4- 0. U, N h' w 4' 4' .0 00 I-' V V w CO 0 h' Co O In 4, .0 V Ln Co N) N) co V O. O. 4> t.n Cn O rt 1/40 .o BN cn ix CIN V r 4- lnlnh 4" 4- 00 h' r4' 4 0 .o O 1. In Cn .O O 0 .ONNww O .0 V 4' .ON O. N-' O .0 N CO N Ln N Ln Co I--' Co Cn h' N .0 CO 4' h' N V ✓ N O• O .0 Ln h' O N) h' .D .0 0. N) CO N h' w O N `. v �.. I- . • r r 4> N t', U./ N 4 4- In r 4- In 4- .0 0 r Co to w 0 rt r L..) 1 In Ln U V .2U, I-' O .0 I. CN .0 .o w .0 r• .o •0 Cn Ln Na -.4 .0 N CO Co O. 4h V 4' 4' N N 9 .0 h.O. N CO CO h' V CO CO Ln Na Co V .0 h' N O. Ln rt .0 N CO CO .0 N Na O O. 00 h' Ln Ln Ln CO O CO CD ✓ N 9 .n Un In In Cn O O In O O O O C) 0 O v '=i tri Q'' tri 0 0 tri Ell M cD 0 b 0n rt 0" O n M '.bbbG7'x M 'ziC) r-1r' CnHC a• cD rt CD cD m C CD H. m g m cD r• H. 0' p H.b w CD d a' m rt rt CD m H m A a' Or' 0 d H m p W rt n CD >C 0 Co Q. CD cn rt m 0 0 rt r, r- cD ¢. 0 0 co rt cD cD 0 CD g 03 r• rt c fn rt N cD r• H. rt H. rt N moa rt 0 H. m cD r✓ rt .. In 0 t=i•-, W r w n n w rt W I moa m w tr cn p. cD g >C p. r r rr r g r-, r N m 0 cD 1-, d rt o cD CO rt d Co w r• cn rt N d C m 0 N tr M A cD M tri 0 0 0 03 C) CD M p R. rt) cD 9 m m rt H. CD p H. X cD 0 rt rt, O m cD tD 0 rt W m G f?+ m r m a r• m 0 x m 0 C 0 hi rt 0 d m co 0 m p rt (t, a, m m rpt CD En rri cn cD °' c(n m rt n rt n r. hp, cD d IV m 9 CD _0 ' rt cD H. 11 rt CD CD m m rt m 0 ~ r II ri• rt II 70 Pj W m fD (D m CD rt m En 4 C N cD cD cD m 00 g g co cD En m r, I .-. ^ to F--' In P. r. h. . N tri O 1 Co V 0 h. N U' 0' CA O 0 I--' kr) ON N) 0 rt r-' Co A 0 'D 'D V N ., I-' '0 \O V OT ON N) O) 0 r• '.D N II ---J N .1D 1--' O. O W O. 1-' to to I--. cn V N 6 In Co 'D Co In In '0 0 V CO V O h+ ON VD 4, c7 N O. co CO r, N O r, Co W Co MD m0 0 N O W cD cm r .P, Cn o 00tnCD Ln Ln u, Otnv 0 o A v Ln ' 1--' ' .A, N r r [2i <A 1 -CO .-. .. ,. ., .. .. m 0N 4" In VD O N In In In N 0 'D rn N N ft N N 0 In ON 0) W t0 VD r-' N.) '.0 CO 0) N) .0- O. O W 10 N 'D V V 0 W In N L� W W V In C1 .0- cr. B '.0 N VD W co In . F. '.D VD O N In O ON O. .' O 0. Co h'' I In Co Co 00 Co Co 4' Ln V A O O 0) N O In cD N 4' 4, Co N) O O 4- F. ON O 0 co In 0 N v -En. --. In r-' F. r-' . N [-xi {1? 1 .Cn .-, - ,. ,. .. r-' I In . 1/4.0 N) N) Om Ch In 1--' N kD O\ N N rt r-' i-, 0 'D '0 4' 4' r- V 4, 0) l� rn0" In4, VD N r• %D V .0- r, to to N cm N V '.0 Co .D V 'D 0 a ..0 w 01 I 0' Co tD W CO 0\ N In O W In O F. 01 4' 0N et I--' I O CO CO O r-' r-' N 01 V N O O V N O N cD r-' 1 r . In 0) '.D OA Na -.D '.D r-' 0 0 0 Ln 0 0\ - I ^ F. U rrr' 4' N t=i [/> 1 -CA .. .. .. .. .. In . 0 .0- N 0) 0) ON N W '.D ON N co Cr I-. ON 1 Co kfo V W In I-, Co ON r-' to ON V CO - O) N r• kr) ON N W W V N O\ W O\ Ina. CO r-' In V 4- 0 3 Co N VD CO CO V Ln O VD VD co VD to O O 0" 4, 4, Cr to Co 11 4' Co co V W Or. V Oh 4, OONN0 O cD In A 0' . 0 CO NJ 0 h. N) W Co 0 0 W In O O v A v .y F. 11--' r-' In r-, I-. r-' 4' r-' N trl M 0' I 1-' r-' 0) N 0) V 0' N 4' 0 OA N 4, rt I-' N In Ln r-. ON In 0) 0' V In F. V F. 1- 0) W W VD W 1 V V N N O 0 Co F. In CO co O1 V In 8 '.D ON W W CO ON W I-, N 4, In O N ON 4, O% rt VD In In O Co N O In 'D Ln O 0 MD N O co cD 4' '.D V) VD CO O Co F. V O O O N) In O co v v .' '17PCI roCA0CACArijII 'xi roG) ror 'TJC C) r 0 O N p' 0 0. rt 0 0 r• O O r CD r• r O O . fO-i H N rt 0 rt H. rt O rt Q4 CA rt r"' C pJ W 0 M 0 .O y rtrmnn' 9a'bCDr•bmr• 0 r to 0 N (D 0 (D n rt 0 I--, 0 p 0 N ' 0 0 rt i i-..fro rt m 0 CD H. o r• r• 0 0 F.Cn 0 rt rt 0 CD CD rt to 0 CD 0 m rwt H. GQ n H. 0 CM rt 0 II CD 0 o N H. 0 r rt O Cl) O r 04 ¢' w R ' 0 C7 r J'' CC)i Jr• 0 IV rt y r• Z trl H. y0 til 0 0• a 0 0 w H Z a Z CM Z CD t'i rt co 0 CA y i9 1 0 1 -Cart I 4. r `C p V ,..I F" N N ONN r r r N N r 0 r 1/44 B CO Un r r 0 .o mD CA CN C CO In Ln CN . COCO r V rt '0 1 O Co 4- Ln O\ (,n CN N 4- W N N N N Co V N W r Z co CI co W ON N N la 4'.• W V O. 0 4- In .D N N Co .0 0 V N I--+ .O < 1 V t0V O CO rOr V NN Co W ° ~, r ~I ' y I r• to 0 -CA 1Co O. N InNr (V r r rrrr 0 F. �I N In to r N .O O Ln CO r ON W CO V V .O V O .D r rt .O pH Ln 4, In O\ N N CO r ON V r .O W W In ON Co W V Ilit In .O .O O. In N r W W r W .O .D N co N .O Co r r 0 V N W In C. .0 0 .D N O. Co .0 C1 .O In r In .O N) .0 F. 00r V 4, V .DOCo V 0 .OtvC'. 0. OLnOO 1 In r 1--. Nr4- O. NrrN rrrrNtn 1 In V In - O cla F" 0In . rNIn V C 4, . 4- 0Co0N) rn 0 ;s' .o i N V N In r r CO CO V O. 4- 4- O. V .O ON In r In 'U 0 .O r V .DrV ln4, O. .OWr4' V V V CO N r CO rt H.F. 1 .0 N 4> Vr04-- +, r1--. 4rrC 4, W V 4r In In In 0000000tH cnOln 00000 H Ln m' Ir N NNr4, O. Nr -- Nrh NrNtn .o pl r+ V N O W r Co V V co In Co In In N .D N O N C. rt r 4> O4> 0000 Co JUi4> 0 .DrrnCo . m rt .'o 9 Co In 4- 4> 4- V VNV 0LnV WCOW rt D N r O O C. 4- In Co V N C\ V O. N In In V to O. Co 1 O O Lit Cln O000LIt00 tn00000O rt MEMO TO: Honorable Mayor and Council FROM: Dennis R. Kraft, City Administrator RE: 1992 Budget DATE: August 23 , 1991 Attached please find additional budget information for the 1992 Budget as requested by the City Council at the Committee of the Whole meeting on August 13th. This information will provide the basis for the budget discussion at the Committee of the Whole meeting scheduled for Wednesday August 28th. Page one of this attachment includes information on both unanticipated revenues for 1991 and unanticipated expenditures as well as unanticipated revenue reductions. It' s projected that the 1991 carry over will be a minimum of $22 , 000, assuming that other revenue projections and anticipated expenditures are accurate. As indicated in the footnote to this illustration, the $22 , 000 figure will probably be exceeded because of past trends which have indicated that all budgeted amounts are usually not expended. Page two of the handout includes potential sources of additional revenue. Pages three, four and five contain a detailed listing of cuts (and a few additions) which could be made which would result in additional savings of $185, 000 . If the City Council agrees to all of these cuts and if the City Council approves a $121, 000 transfer into the General Fund from Debt Service accounts there would be a potential surplus of $59 , 000 . If the City Council does not approve of the Debt Service transfer then additional cuts have been identified on the bottom of page five. This will result in additional budget cuts of approximately $68 , 000 . The remaining three pages of this attachment provide additional general budgetary information. It is extremely important that the City Council carefully evaluate fill of the proposed cuts and comprehend the consequences of these cuts. If all the aforementioned cuts are made the City will not be providing the same level of service that it provided in 1991. The City Council may wish to. consider establishing and participating in an exercise whereby various proposed budget cuts will be evaluated and prioritized by the City Council with the assistance of department heads. Earlier this week Mayor Laurent and I had an opportunity to discuss a systematic program evaluation and prioritization procedure with a facilitator who is working with Government Training Service (GTS) on a process that other City Council ' s have used. We would like to discuss this process with the City Council at the Committee of the Whole meeting on the 28th. Current 19911' Budget Imbalance $307 , 530 Revenue Enhancements One Time Possibilities *1. Special Levy (1991 Auditor Error) 21, 000. 00 *2 . Debt Service Excess Proceeds 121, 000. 00 3 . General Fund Balance Usage 100, 000 . 00 4 . Ongoing Possibilities 1. Equip. Cert. Indebted (Cap. Equip. Fund Support) - 2 . Truck Scale - 3 . Increase Water Rates and SPUC Contributions - 4 . Establish. Refuse License Fee or Franchise Fee - 10, 000. 00 *5. Fee Increases - 6 . Increase Admin. Fee Improv. Project from 1% to 3% - 10, 000 . 00 *7 . Cable Studio Rent (6 mo. ) - 3 , 000 . 00 *8 . Reduce Allocation for Uncoil. Taxes from 3% to 2% - 26, 250. 00 9 . Increase Sewer Rates and Transfer Into General Fund Other Possibilities 1. Early Retirement * Changes included in attachment computer run. Scenario #1 assumes Council agrees to utilize Debt Service Funds as a transfer in - $121 , 000 and no General Fund Balance. Scenario #2 assumes Council does not want to use Debt Service Funds or General Fund Balance. This scenario includes all cuts identified in Scenario #1. ** With the exception of certain procedural changes made by the Finance Director, all other budget cuts are prioritized utilizing an A (highest) to C (lowest) priority ranking. 7_ 4-ti) )-1 <hiz -- •to P ‘A‘4t { -:_ ,e61,<A4t I Scetiar ,a * A -÷ e -f- C c.4.4A pc4.4.LL-t: -&a,etutet sc' ;6Il A k_ e,,, t1 -P.Pcutr �� 4 9 19 40 Fl acdA � _ ,UfidetAa �( � 18 (2 13 U S c e i.,4 r o c -?�- 2 A II wk LE64.144,r4u cr.-CAA � ) Gam, c( Z ura46.0 h2G.u.P/1 wt a. �o�..�i�..F �cuc�2 * i8 00 (40A. .1.tlu,6 1-udod a d dl.raN icet Al ¢cun4 coxtu-5; v � 4 e of.. 1992 Budget Changes 22-Aug-91 Change Original Imbalance (307,530) Revenue/Funding sources Auditor's Omission Error 21,413 Admin Fee on Projects increase 10,000 Cable Studio Rent 3,000 Allow for Unroll Taxes 3S > 2% 26,250 Debt Service Transfer In (instead of CIF) 121,000 Add1 Revenue 181,663 Revised Status (125,167) ScfNARto if 1 Council CouncLi ATep Wages 01-4130-111-11 (5,290)Councll position PICA 01-4141-111-11 (390) ATrans Coalition 01-4310-111-11 (5,500)55,000 remaining �.I�rnnssurance 01-4360-111-11 190 G Dues 01-4391-111-11 (2,500)Drop Membership Misc 01-4499-111-11 (400) luLtin Comp Absences 01-4153-121-12 800 Insurance 01-4360-121-12 1,530 . Capital 01-4511-126-12 (2,000)MIS Clerk Filing Fees 01-4316-131-13 (100) Insurance 01-4360-131-13 100 Finance intern Temp Wages 01-4130-151-15 (4,000)Intern bFIG 01-4141-151-15 (300) assurance 01-4360-151-15 (500) New E^p. 01-4100-151-15 (12,150) APERA 01-4140-151-15 (545) FICA 01-4141-151-15 (930) Health Ins. 01-4150-151-15 (1,560) Legal Insurance 01-4360-161-16 1,230 Prof. Services 01-4310-161-16 (1,000) Planning Comp Absences 01-4153-171-17 400 A Intern01-4130-171-17 (2,900) FICA 01-4130-171-17 (220) Postage 01-4320-171-17 •4„, (750) Insurance 01-4360-171-17 (300) Cut CDC 01-4100-176-17 (13,770) 01-4140-176-17 (620) 01-4141-176-17 (1,050) " 01-4150-176-17 (940) 01-4210-176-17 (250) " 01-4310-176-17 (300) 01-4319-176-17 (1.500) A01-4320-176-17 (250) 01-4321-176-17 (100) " 01-4330-176-17 (900) " 01-4350-176-17 (1,000) 01-4360-176-17 (300) " 01-4390-176-17 (500) -- 01-4391-176-17 (100) 01-4100-121-12 13,770 01-4140-121-12 620 Insurance 01-4360-611-61 (2,180) Paris Staff Allocation. 01-4100-42 -62 (10,000) PERA 01-4140-62 -62 (450) FIG 01-4141-62 -62 (765) Insurance 01-4360-621-62 (2,380) Rents 01-4380-621-62 (200) Recreation New Employee eoreation Scaffing 01-4100-641-64 (23,000) APERk 01-4140-641-64 (1,120) FIG 01-4141-641-64 (1,840) Qealth Insurance 01-4360-641-64 (215) Recept.6/30/ urrent Employee 01-4100-641-64 (10,350) PERA 01-4140-641-64 (465) n PICA 01-4141-641-64 (793) B Health Insurance 01-4360-641-64 (1,340) Unemployment 01-4152-641-64 5,000 Rink Attend. 01-4130-641-64 (1.500) C Rink Attend. 01-4141-641-64 (115) Insurance 01-4360-641-64 (800) Supplies 01-4210-640-64 (25) 11dg ?taint 01-4230-640-64 (100) Equip. !Saint 01-4232-640-64 (100) / Capital Equip. 01-4511-641-64 (12,200) Unalloc. ontingency 01-4991-911-91 (25,000) Expenditure Changes (185,178) Revised Status 59,311 ScEVAt2.10 4 ‘2, Street Apital - Computer 01-4511-421-42 (3,300) Inspection C Contract Insp 01-4310-333-33 (12,480) Recreation Recept.12/91 urrent Employee 01-4100-641-64 (10,350) A PERA 01-4140-641-64 (465) FICA 01-4141-641-64 (793) Health Insurance 01-4360-641-64 (1,340) Police Clark 1/2 urrent Employee 01-4100-311-31 (10,610) A PERA 01-4140-311-31 (475) `(�, PICA 01-4141-311-31 (810) Health Ins. 01-4150-311-31 none Unemployment 01-4151-311-31 (2,500) Engineering fonference 01-4390-411-41 (1,500) Travel 01-4330-411-41 (750) Prof Services 01-4310-411-41 (1,000) Supplies 01-4210-411-41 (500) Street Temp Wages 01-4130-4 -42 (4,300) n FICA 01-4141-4 -42 ' (330) D Conference 01-4390-4 -42 (600) Supplies 01-4210-4 -42 (2,500) Shop Temp Wages 01-4130-4 -44 (4,100) FICA 01-4141-4 -44 (365) Park Temp Wages 01-4130-6 -62 (5,400) FIG 01-4141-6 -62 (410) Supplies 01-4210-6 -62 (2,300) (1,278) Revised Status 127,588 " 01-4141-121-1,2 1.050 " 01-4150-121-12 940 Govt. Bide- Nev F..-.p. C_atodlan 01-4100- (9,360) B PERA 01-4140- (420) IBCA 01-4141- (715) Health Ins. 01-4150- (2,340) Library ^ carpet 01-4232-182-18 (7,500) l� Insurance 01-4360-182-18 65 Insurance 01-4360-183-18 120 Insurance 01-4360-184-18 140 Insurance 01-4360-185-18 1,600 Utilities 01-4370-115-18 (7,000) lank Taxes 01-4982-185-18 49,000 Police Comp Absences 01-4153-311-31 5,000 Overtime 01-4112-312-31 (3.500) Overtime 01-4140-312-31 (420) cell . Animal Control 01-4310-361-31 (6,000)Drop Program Fire Workcomp 01-4151-321-32 (800) A Flre Paint Bays 01-4230-321-32 (3,000) Insurance 01-4360-321-32 500 Conferences 01-4390-321-32 (1,500) Dues/Subscriptions 01-4391-321-32 (200) Supplies 01-4210-320-32 (100) 11dg Maint 01-4230-320-32 (250) Iquip. Maint 01-4232-320-32 (100) ACapital 01-4511-321-32 (5,000) Inspection Workcomp 01-4151-331-33 (465) Dues L Subscriptions 01-4391-331-33 (775) Asst. Insp. Current Employee 01-4100-3 -33 (35,550) PERA 01-4140-3 -33 (1,595) FICA 01-4141-3 -33 (2,720) Health Ins. 01-4150-3 -33 (2,680) Unemployment 01-4151-3 -33 6,900 Contract Insp 01-4310-333-33 12,480 Street Supplies 01-4210-420-42 (200) St. Total Wage 01-4100-4 -42 (5,000) PERA 01-4140-4 -42 (225) FICA 01-4141-4 -42 (380) Reception Current Employee 01-4100-421-42 (9,350) e PERA 01-4140-421-42 (400) • FICA 01-4141-421-42 (700) - Health Ins. 01-4150-421-42 (1,200) t Unemployment 01-4151-421-42 -'* 3,000 = Current Employee 01-4100-621-62 (6,240) PERA01-4140-621.62 (280) l = TIG 01-4141-621-62 (475) \` Health Ins. 01-4150-621-62 (1,200) Street Correction Surface Mat. 01-4215-426-42 (16,000) Surface Mat. 01-4215-427-42 11,000 Fuel 01-4222-421-42 (900) Equip. Maint. 01-4232-426-42 (2,300) Shop Shop Total Wage 01-4100-4 -44 (4,750) PERA 01-4140-4 -44 (210) FICA 01-4141-4 -44 (360) 11d5. Maint. 01-4230-441-44 (1,000) Pool Supplies 01-4210-611-61 (300) Bldg. Maint. 01-4230-611-61 2,000 Equip. Maint. 01-4232-611-61 2.000 Telephone 01-4321-611-61 (200) Printing 01-4350-611-61 (500) 42Z106— TO: Dennis R. Kraft, City Administrator FROM: Gregg Voxland, Finance Director RE: 1992 Budget Follow Up Questions DATE: August 28, 1991 1. Tax revenue projections. The City has used an allowance for uncollectible of 4% for several recent years. Based on the experience of the last five years, an allowance of 2% seems reasonable. See attached chart. The collection of delinquent taxes is treated as current revenue when collected. The balance sheet of the General Fund shows delinquent taxes as a receivable but also shows an offsetting deferred revenue account, therefore the delinquent taxes are current revenue when collected. The projection of future years taxes in the budget is simply a compounding of the 1992 tax amount by a percentage factor. 2. Penalties and interest on delinquent taxes are retained by the county. The city receives penalties and interest on delinquent special assessments. 3. The last date to adopt the Capital Improvement Plan is not a firm date. The plan should be built into the 1992 budget - capital projects funds and possibly other funds. Therefore, it should be adopted at least two weeks before the final budget document is prepared or three weeks before the public hearing on the budget. The normal process for the CIP should have Council adoption in June - before the departments put together their budget requests. 4. Contingency for 1991 that will not be used is estimated at this time as shown below; 1991 Contingency appropriation $126,225 Normal contingency appropriation 100,000 Less lodging tax budget amendment 76,000 Less fire equip prior year purchase 13.640 Balance of normal contingency 10,360 5. G.O. Bond - project funding. Example of a project funding: $45,000 Water fund paid in cash 50,000 sewer fund paid in cash at end of construction year 25,000 Storm fund paid in cash at end of construction year 75,000 Bonded - tax levy payment 25.000 Bonded - special assessment payment 220,000 Total project cost 6. Sources and uses of funds by fund type. General Fund Sources - Variety - see budget Use - Operational and capital costs of operation departments Residual - Fund Balance Special Revenue Funds Park Reserve Fund Sources - Park Dedication Fee, Grants, Contributions Use - Park improvements Residual - Fund Balance Transit Fund Sources - State Aid, Fares Use - Transit operational costs Residual - Fund Balance HRA Fund Sources - Tax Levy, Administrative fees Use - Permitted redevelopment activities, operational costs Residual - Fund Balance Capital Equipment Fund Sources - SPUC contribution, sale of equipment Use - Transfer to General Fund to pay for major equipment Residual - Fund Balance Debt Service Funds Sources - Tax levy, Special assessments Use - Debt service payments Residual - council discretion Capital Projects Funds Sources - Grants, bond proceeds, state aid construction, special assessments Uses - Specific construction projects (CIF (Capital Improvement Fund) available for general construction projects) Residual - transfer to related debt service fund (CIF goes into fund balance) Enterprise Funds Sources - User fees Use - operation costs, system improvement costs, equipment Residual - goes into retained earnings (fund balance) Trust and Agency Funds No sources or uses of funds, monies are held pending specific remittances or held in escrow for specific purpose Table 3 CITY OF SHAKOPEE, MINNESOTA Property Tax Levies and Collections Years 1981 Through 1990 Ratio of Accumulated Percentage Delinquent Collections Percentage Collections of Total Accumulated Taxes to Year Tax of Current of Levy of Prior Total Collections Delinquent Current Collected Levy Years Taxes Collected Years Taxes Collections To Tax Levy Taxes Years Taxes 1981 $1,059,006 $ 967,682 912 $ 18,578 $ 986,260 93% $ 90,030 8.50% 1982 1,277,373 1,185,897 93% 23,561 1,209,458 95% 113,085 8.85% 1983 1,268,043 1,221,983 96% 34,068 1,256,051 99% 130,194 10.27X 1984 1,407,043 1,328,780 94% 58,990 1,387,770 99% 147,541 10.49% 1985 1,432,043 1,342,987 94% 50,863 1,393,850 97% 136,234 9.51X 1986 1,514,535 1,491,390 98% 83,262 1,574,652 104% 80,586 5.32% 1987 1,431,000 1,378,150 962 32,850 1,411,000 99% 100,586 7.03% 1988 1,763,729 1,673,476 95X 74,949 1,748,425 99% 84,900 4.812 1989 1,760,198 1,700,687 97% 41,113 1,741,800 99% 103,298 5.87% 1990 2,197,859 2,121,935 97% 35,790 2,157,725 98% 123,604 5.62% Source: Scott County Auditor 1. Tax levy is gross levy. Collections include state paid homestead credit and fiscal disparities which are reductions from gross levy. 2. The above data does not include tax increment districts but does include HRA and City. 4/1 TO: Mayor and Council FROM: Gregg Voxland, Finance Director RE: 1992 Proposed Budget Resolution DATE: August 15, 1991 Introduction Attached is Resolution Number 3456 which sets the maximum proposed 1991/92 tax levy. Background Time frames The existing law requires that Shakopee certify a proposed budget, budget hearing date and proposed maximum tax levy to the county by September 3. The City has to publish notice and hold a hearing, adopt the final tax levy and adopt the budget at the hearing, and then certify the final levy to the county by December 30. This memo and proposed Council action is based on certifying the maximum proposed levy. Tax Levy The proposed maximum tax levy for 1991/92 is $2,624,403 which is a 7% increase over last year and includes $25,000 for fire pension and $193,978 for debt service. The levy for fire pension was a special levy (not subject to general levy limit) in previous years. The levy amount last year was $5,000. Due to the increase in pension benefits, the levy for this year would have been about $25,000. However, the Legislature has deleted the pension levy as a special levy and folded the $5,000 amount into the general limited levy. The result is an additional $20,000 of demand on the limited levy. The $25,000 figure is an estimate since the Fire Relief Association has not yet submitted the needs certification to Council which state law requires be submitted by August first. The proposed levy also includes $21,413 for a special levy for auditor's error/omission. I am awaiting a determination by the state department of revenue that the levy will qualify based on documentation that I have submitted. General Fund Budget The Council is supposed to certify a proposed budget to the County Auditor by September 3rd. Council may change the amount up or down for the final budget. The resolution includes a blank to be filled in for the expenditure amount. Action Discuss the preliminary maximum tax levy and possible amendments to the proposed resolution. Offer Resolution Number 3456, A Resolution Setting Proposed Maximum 1991 Tax Levy, Collectable In 1992, and move its adoption. RESOLUTION NO. 3456 A RESOLUTION SETTING PROPOSED MAXIMUM 1991 TAX LEVY, COLLECTIBLE IN 1992 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, COUNTY OF SCOTT, MINNESOTA, that the following sums of money be levied as the proposed maximum tax levy in accordance with existing law for the current year upon the taxable property in the City of Shakopee, for the following purposes: GENERAL FUND LEVY $2,409,425 SPECIAL LEVIES: Auditor's Error of Omission 21.413 TOTAL GENERAL FUND 2,430,838 DEBT SERVICE SPECIAL LEVY 1985A Improvement Bonds $ 5,545 1986A Improvement Bonds 34,380 1986B Improvement Bonds 31,072 1987A Improvement Bonds 4,386 1988A Improvement Bonds 1 043 1990A Improvement Bonds 81,292 1991A Improvement Bonds 22.260 193.978 TOTAL LEVY $2,624,816 BE IT FURTHER RESOLVED, that the proposed appropriations for the General Fund Budget for 1992 is $ BE IT FURTHER RESOLVED, that the City Clerk is hereby instructed to transmit a certified copy to this resolution to the County Auditor of Scott County, Minnesota. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of 1991. Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form City Attorney S TO: Dennis R. Kraft, City Administrator FROM: Gregg Voxland, Finance Director RE: 1992 Budget Hearings DATE: August 19, 1991 Introduction Council needs to set the date for the public hearing on the 1992 budget and inform the County Auditor by September 3, 1991. Background Pursuant to the truth in taxation law, Council must hold a public hearing on the 1992 budget between November 15 and December 20, 1991. The attached calendar indicates the available dates. Council should select the hearing date and a continuation date in case the hearing is continued. Action Discuss and set a public hearing date and a continuation date for the 1992 budget. NOVEMBER SUN MON TUE WED THU FRI SAT 10 1 1 12 13 14 15 16 17 18 19 : 20 21 '22 23 L. , , y c. 24 25 26 27 28 29 30 / \ uhuhruhii SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 1s i, 191 8 'I. 10 1 1 12 13 14 ZSQ .' d 15 16 17 18 ' 9 ' 20 21 134 ,' / �`� TO: Dennis R. Kraft, City Administrator FROM: Gregg Voxland, Finance Director RE: Disposition of SCR Assets DATE: August 27, 1991 Introduction ISD 720 Superintendent, Business Manager, City Administrator and City finance Director met this morning to review the disposition of assets for the former SCR operation. Background The former SCR operation was a joint venture between the City and ISD 720. The school district withdrew from the venture as of 12/31/90. The assets of the former operation have continued in use by the new city recreation department. The above personnel have met and achieved consensus on the disposition of the assets as follows. City department will keep: Pop/candy supplies 500 6 wood chairs 300 6 picnic kits 300 Typewriter SC 300 1 PA system - portable 150 IBM computer 400 Paper stock 300 Slide projector 50 Art/craft supplies 500 IBM wheelwriter typewriter 200 2 adjustable tables 150 Total 3,150 ISD 720 will take upon city hall move to bank building: Legal file 4dr 75 Legal file 4dr 75 Lateral file 5dr 75 Lateral File 4dr 75 Camera Minolta 300 4 folding tables 200 1 PA system portable 150 14 folding chairs 280 Fund Balance (cash) 1.453 (Payable now) Total 2,683 The following assets will be sold and the proceeds split equally: 1985 Ford LTD 2,700 Couch/chair set 75 3 Chairs 75 Copier cabinet 50 Cash register 50 5 Chairs 125 Cannon copier 150 Desk - small 50 Shelving Store room 200 Storage cabinet 25 Shelving - attic 300 Table 75 Desk/right return 150 Desk - directors 75 Chair 25 Desk 75 Total 4,200 The car has low usage - based on the first half of 1991, the annual milage rate is about 2,000 to 2,500 miles per year. The city may have the opportunity to sell it in the Hennepin County auction next month. Recreation staff has access to the city hall staff car or can use another vehicle from another department when available. Based on low usage, availability of other vehicles and the milage reimbursement policy of the City, the City Administrator and the Finance Director recommend that Council direct staff to proceed with the sale of the former SCR vehicle. Action Move top direct staff to proceed with the sale of the former SCR vehicle and concur with the proposed disposition of SCR assets between the City and ISD 720.