HomeMy WebLinkAbout3. 2013 Preliminary Budget City of Shakopee
MEMORANDUM
TO: Mayor & City Council
FROM: Mark McNeill, City Administrator
Julie A. Linnihan, Finance Director
SUBJECT: Overview for Final Budget Work Session
DATE: August 28, 2012
Action Requested
The City Council is asked to provide direction to allow staff to prepare a resolution for adoption of the
2013 preliminary property tax levy. Adoption of this resolution will then be an action item at the
September 4 Council meeting.
Introduction
Council will meet in final work session to review the attached budget information, and provide direction
to City staff for the development of the preliminary 2013 budget and property tax levy, to be levied in
2012 and collected in 2013. The final levy will not be adopted until December, 2012 and further
refinements to the budget can be discussed in the fall. The preliminary property tax levy is the highest
amount that can be levied, but can be reduced prior to the final levy adoption. The levy amount that is
approved for preliminary certification to Scott County is the amount that will be used for parcel specific
notices mailed to property owners in November, 2012.
Preliminary Budget
The 2013 departmental budgets have been presented and reviewed with Council during July and August.
This has included all areas of the General Fund revenues and expenditures. These budgets allow for a 2
wage increase, an anticipated increase for health insurance, updates to expenditures specific to
historical review and changes to known factors such as agreements and contract updates, as well as
allocation changes specific to position adjustments, such as departmental re- structuring and transitions
for retirements, etc.
As the following table reflects, staff has presented a 2013 baseline budget that reflects a $65,000, or
one -third of one percent, increase over the 2012 budget.
Expenditure Category 2012 2013
General Government 3,272,307 3,322,335
Public Safety 9,667,231 9,728,238
Public Works 2,868,352 2,883,328
Park & Recreation 3,992,289 4,026,130
Other 320,500 225,000
Total: $20,120,679 $20,185,031
Difference: +$64,352
The transfers that are included in the initial 2013 budget provide specifically for an annual transfer for
the Capital Improvement Fund (OF) for the funding of infrastructure based projects. These were
presented and discussed in July, and require a portion of the property tax levy for City portion costs.
The transfer to the EDA fund is to provide for the recently approved Facade Loan program, which
committed $150,000 for the project based on the discussion of the 8/21/2012 Council meeting.
Requested Initiatives:
The overview of the 2013 requested initiatives has been provided, showing the 2013 impact (partial year
adjustments for personnel) for position requests and project requests. The 2014 column allows for the
wages for a full year cycle, as well as reduction of the projects that are one -time expenditures. The
discussion began on 7/20 as to the status of the requests for the preliminary budget, but Council will
need to determine the placement of these items into the 2013 budget and levy.
Budget Reduction Options:
Per the request of the Mayor, a listing of potential budget reductions is being compiled by staff. This will
be available for discussion at Tuesday's work session. Council will need to determine its willingness to
make these reductions.
Property Tax Levy Options:
In previous budget work sessions, staff has provided Council with estimated residential property tax
impacts for several levy increases, ranging from holding the levy at the 2012 level to increasing the levy
by 8 %. An 8% increase is estimated to be what would be needed if all the listed budget initiatives were
to be undertaken.
The City has maintained a fairly flat levy over the past few years, which has limited the amount of
funding available for new initiatives or requests. The Council will need to determine which initiatives to
fund with potential property tax increases, or use of existing fund balance.
2013 Preliminary Budget- Revenues, Expenditures and Requested Initiatives
Note: 2013 is based on the presented budgets, the same budget has been used for 2014 taking into account the actual
full year of wages for the personnel budget initiatives and how those will affect future budgets.
2012 2013 2014
Revenues:
Property Taxes $ 13,407,920 $ 13,962,000 $ 13,962,000
Special Assessments 11,000 11,000 11,000
Licenses and Permits 1,275,300 1,316,700 1,316,700
Intergovernmental 619,760 755,500 755,500
Charges for Services 3,890,630 3,776,300 3,776,300
Fines and Forfeitures 436,000 425,000 425,000
Miscellaneous 480,400 308,500 308,500
Total Current Revenues 20,121,010 20,555,000 20,555,000
Other Financing Sources:
Transfers In from Enterprise Funds 222,400 100,000 100,000
Total Other Financing Sources 222,400 100,000 100,000
Total Revenues S 20,343,410 $ 20,655,000 $ 20,655,000
Expenditures:
General Government $ 3,272,307 $ 3,322,335 $ 3,322,335
Public Safety 9,667,231 9,728,238 9,728,238
Public Works 2,868,352 2,883,328 2,883,328
Park and Recreation 3,992,289 4,026,130 4,026,130
Unallocated 225,000 225,000 225,000
Capital Outlay 95,500 - -
Total Current Expenditures 20,120,679 20,185,031 20,185,031
Other Financing Uses Initiatives to be Discussed:
Transfers Out- EDA (2190) (Facade program approved
8/21/2012) - 150,000 150,000
Transfers Out- Capital Project Fund (4021) per 5 year CIP
program discussion 7/17/2012 - 500,000 500,000
Total Other Financing Sources - 650,000 650,000
Budget Initiatives:
Economic Development Specialist - 72,146 86,057
Communication Coordinator to Full Time - 35,000 35,000
Grants Writer (.5 time) - 14,968 25,530
Recreation Facilities Maintenance Manager - 55,570 66,284
Human Resources Technician - 67,600 67,600
6- Paid -On -Call Firefighters - 40,000 79,348
4- Full Time Firefighters - 125,000 247,962
Natural Resources Technician - 57,596 68,701
Crime Prevention Specialist - 62,151 62,151
Feasibility Studies - 20,000 -
Neighborhood Festivals - 20,000 -
Downtown Flower Baskets - 13,000 -
Security System Camera Upgrade - 16,500 -
Total Budget Initiatives - 599,531 738,632
Total Expenditures including Budget Initiatives $ 20,120,679 $ 21,434,562 $ 21,573,663
of 2012 Levy 1.7% -6.0% -7.1%
Personnel and Project Budget Initiative Requests
2013 Preliminary Budget
Personnel Budget Requests:
Start Date Estimated Full Year
Position Division/ Department BU 2013 Cost Cost
Economic Development Specialist 19 - EDA 2191 3/1/2013 $ 72,146 $ 86,057
Communication Coordinator to Full Time 12 - Communications 0125 1/1/2013 $ 35,000 $ 35,000
Grants Writer (.5 time) 12 - Administration 0121 6/1/2013 $ 14,968 $ 25,530
Recreation Facilities Maintenance Manager 67 - Recreation 0678 3/1/2013 $ 55,570 $ 66,284
Human Resources Technician 12 - Payroll 0123 1/1/2013 $ 67,600 $ 67,600
6- Paid -On -Call Firefighters 32 - Fire 0321 7/1/2013 $ 40,000 $ 79,348
4- Full Time Firefighters 32 - Fire 0321 7/1/2013 $ 125,000 $ 247,962
Natural Resources Technician 66 - Natural Resources 0661 3/1/2013 $ 57,596 $ 68,701
Crime Prevention Specialist 31 - Police 0319 1/1/2013 $ 62,151 $ 62,151
$ 530,031 $ 738,632
Project Budget Requests:
Estimated
Project Division/ Department BU 2013 Cost
Feasibility Studies 11 - Mayor & Council 0111 $ 20,000
Neighborhood Festivals 11 - Mayor & Council 0111 $ 20,000
Downtown Flower Baskets 11 - Mayor & Council 0111 $ 13,000
Security System Camera Upgrade 67 - Recreation 0671 $ 16,500
$ 69,500
Total $ 599,531 $ 738,632
Personnel and Project Budget Initiative Requests Compared to Levy
2013 Preliminary Budget
2012 Tax Levy $ 12,976,991
Personnel Budget Requests:
% of
Position Full Year Cost Levy
Economic Development Specialist $ 86,057 0.7%
Communication Coordinator to Full Time $ 35,000 0.3%
Grants Writer (.5 time) $ 25,530 0.2%
Recreation Facilities Maintenance Manager $ 66,284 0.5%
Human Resources Technician $ 67,600 0.5%
6- Paid -On -Call Firefighters $ 79,348 0.6%
4- Full Time Firefighters $ 247,962 1.9%
Natural Resources Technician $ 68,701 0.5%
Crime Prevention Specialist $ 62,151 0.5%
$ 738,632 5.7%
Project Budget Requests:
Project Full Year Cost
Feasibility Studies $ 20,000 0.2%
Neighborhood Festivals $ 20,000 0.2%
Downtown Flower Baskets $ 13,000 0.1%
Security System Camera Upgrade $ 16,500 0.1%
$ 69,500 0.5%
$ 808,132 6.2%