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Agenda6:30 pm City Council Work Session Called to Order 6:35 pm 2004 Budget 9:30 pm Other 9:45 pm Adjourn AGENDA CITY COUNCIL WORK SESSION Tuesday, October 28, 2003 6:30 p.m. Raspberry Room • Special Revenue Funds 1. Depot Coffee House 2. Skate park 3. Hopkins Center for the Arts 4. Cable TV • Budget and Tax Levy Summary (as of 10/24/03) • Budget Issues to Resolve • Right -of -way Issues, Presidential Neighborhood Alleys, Mielke • October 24, 2003 Overview 2004 BUDGET STATUS To better understand our current status in the budget process I will explain all the scenario's which are reflected in the 2004 Budget Summary that is attached. 1. The 2004 proposed revenues are at the amount the council approved for the preliminary levy adoption. The overall levy increase is at 9.9% for all city functions. The amount reflected here is just the general fund amount which is a 10.7% increase over last year. 2. The franchise fee reflected is at $1 per utility bill per month. (see attached schedule). 3. General fund expenditures, including the adjustments recommended by the council so far, are reflected in the proposed 2004 column. This also includes a reduction to public works but the details on this department are yet to be worked out. 4. This does not reflect a furlough. It does represent an increase in wages and benefits for employees. 5. A portion of the debt service payment, $279,000, is also included in the general fund budget. This was done to maximize the preliminary levy allowed while reducing the overall debt service levy, therefore keeping the total levy increase to under 10 %. 6. The city currently has $150,000 more revenues in the 2004 budget than is needed to balance the budget. The council could decrease the levy by an amount or reduce the franchise fee to balance the 2004 budget. 7. There is an anticipated surplus in 2003 of $150,000 which could be used to offset 2004 expenditures and further reduce the levy or franchise fees or add back cuts. 8. There is also the possibility of using current reserve balances. The total general fund reserve balance is $3,376,403. It is our policy to have at least 50% of the tax levy in fund balance reserves to cover our expenditures in the general fund from January through June. Fifty percent of our projected general fund levy is $3,414,660. This amount would be reduced with a reduction in the general fund tax levy. CITY OF HOPI- 2004 BUDGET DEPOT BUDGET Special Revenue Fund Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent Revenue and Expenditure 2001 2002 2003 2003 2004 Change Highlights Revenues Intergovernmental $ 10,000 $ 10,000 $ 50,000 $ 50,000 $ 50,000 Reduce the use grant. Leases and Rentals 9,441 56,260 28,093 47,000 35,050 - 25.43% Concessions 103,844 105,261 91,100 119,000 108,500 -8.82% Contributions 48,379 19,854 32,549 10,000 19,000 90.00% Contributions, partners & others Miscellaneous 1,839 - 3,737 - 3,500 Room rents Transfer in 11,780 13,629 - General fund support Total Revenues 185,283 205,004 205,479 226,000 216,050 -4.40% Expenditures Salaries, Wages and Benefits Salaries and Wages 55,709 72,943 96,187 95,684 98,981 3.45% Full time employee & part timers Fringe Benefits 14,778 15,692 23,547 23,105 25,886 12.04% Materials, Supplies and Services Professional & Technical Services 50,419 38,010 18,494 4,313 10,475 142.87% Consulting Utilities and Maintenance 10,049 9,800 7,937 10,325 9,325 -9.69% Telephone, heat & electricity Operations 5,152 4,392 5,993 5,160 5,860 13.57% Training and miscelaneous City Support Services 835 885 932 1,015 975 -3.94% Insurance Supplies and Materials 50,282 58,481 48,358 66,750 64,050 -4.04% Concessions, supplies and equipment Capital Outlay Improvements 4,793 4,000 4,000 - 100.00% Coffee equipment Total Expenditures 187,224 204,996 205,448 210,352 215,552 2.47% Excess (deficiency) of Revenues over expenditures (1,941) 8 32 15,648 498 - 96.82% Fund Balance 1,127 1,135 1,167 16,783 1,665 - 90.08% The Depot Coffee House fund accounts for the operations of the coffee house, business and the teen center operations. Additional grant funds support these operations. 123 • Revenues Current Services Grants Interest Miscellaneous Transfer In Total Revenues Operating Expenses Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional & Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Equipment Allocation Total Operating Expenses Non - operating expenses Total Expenses Excess (deficiency) of Revenues over Expenditures Close out enterprise fund Total Fund Balance ART CENTER Revenues and Expenditures Projected Actual Actual Actual 2001 2002 2003 $ 197,321 $ 210,723 50,000 400 (852) 5,296 46,594 61,000 111,886 264,017 418,351 185,408 102,996 434,103 196,711 2,316 CITY OF HOPI- 2004 BUDGET • 350,071 (170,086) 68,280 (1,078,143) (39,982) (1,049,845) $ 225,285 $ 50,000 24,093 97,200 396,578 202,114 52,602 56,145 54,429 59,083 60,485 2.37% 2,922 1,791 1,575 1,964 1,810 -7.84% 58,485 51,734 59,037 61,950 63,800 2.99% 2,115 3,025 2,857 3,794 3,550 -6.43% 18,939 25,754 25,552 24,707 23,104 -6.49% 10,636 12,595 8,632 13,800 14,000 1.45% 1,076 355,270 41,308 (1,008,538) 125 Budget Budget Percent 2003 2004 Change 208,200 $ 224,500 7.83% 50,000 50,000 State Aid 1,200 5,600 366.67% 149,000 147,920 -0.72% Cable & Econ. Dev. 408,400 428,020 4.80% 202,570 204,723 1,076 556 331,107 350,071 355,270 368,944 372,028 0.84% 368,944 372,028 0.84% 39,456 55,992 41.91% (1,010,389) (952,546) -5.72% The Art Center fund accounts for the maintenance, operations and promotions of the center. Special Revenue Fund Revenue and Expenditure Highlights 1.06% Three and 3/4 time emplc HCA performance maint., heat, elec. & tele. Post, advert., train., misc Ins., interest expense Supplies, parts, & equip Comp & equip. allocatioi Revenues Franchise Fees Charges for Services Interest Earned Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits CITY OF HOPI'- 2004 BUDGET CABLE BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2001 2002 2003 2003 2004 Change $ 138,614 $ 146,575 $ 139,572 $ 141,600 $ 140,000 -1.13% 14,731 11,118 6,462 12,250 6,450 - 47.35% 48,501 34,386 41,921 48,603 12,702 6,560 8,889 10,543 61,551 16,316 Materials, Supplies and Services Professional & Technical Services 12,160 1,706 17,306 4,410 24,790 462.13% Utilities and Maintenance 3,722 4,160 2,932 4,300 5,275 22.67% Operations 23,117 7,579 7,941 11,560 29,060 151.38% City Support Services 15,323 8,260 7,939 7,937 14,394 81.35% Supplies and Materials 3,733 4,038 1,737 7,800 4,250 - 45.51% Special Revenue Fund Revenue and Expenditure Highlights 26.64% 1.5 Full - time 54.76% Audit and other consulting Equipment maint. & telephone. Post, print, adver., train, & misc. Space & occup., admin. fee, ins. Office and general supplies Capital Outlay Office Furniture and Equipment 32,215 73,394 20,679 40,000 - 100.00% Council Chamber Audio improve. Equipment Allocation 1,152 594 680 680 540 - 20.59% Computer and equip. allocation Transfer Out - 50,886 36,200 88,000 86,920 -1.23% Total Expenditures 152,625 191,561 146,224 223,833 243,096 8.61% Excess (deficiency) of Revenues over Expenditures 720 (33,868) (190) (69,983) (96,646) 38.10% Ending Fund Balance 327,116 293,248 ' 293,058 223,265 196,412 - 12.03% The Cable fund records the City's share of a five city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. 121 Revenues Rental Grants Interest Earnings Miscellaneous Total Revenues Operating Expenses Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional & Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Total Operating Expenses Non - operating expenses Total Expenses Net Loss Retained Earnings PAVILION Revenues and Expenses Projected Actual Actual 2001 2002 2003 Actual $ 245,279 $ 252,129 $ 255,047 $ 264,075 $ 283,325 3,302 21,474 270,055 5,692 55,525 3,384 16,308 13,865 261,512 58,298 319,810 (49,755) (107,844) CITY OF HOPI.- 2004 BUDGET 3,183 2,000 3,000 3,000 23,968 279,280 131,121 129,991 136,136 141,634 146,679 35,617 37,761 35,979 37,477 40,296 5,588 48,040 2,798 17,557 14,983 256,719 58,075 314,794 (35,514) (143,358) 8,512 265,559 6,124 52,653 1,913 17,786 9,624 260,215 61,175 321,390 (55,831) (199,189) The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer League and dry floor are recorded here. A new mezzanine rental program is being established for 2004. This should boost the net income of this facility. 157 Budget 2003 12,000 279,075 4,068 56,660 3,680 17,320 16,590 277,429 58,430 335,859 (56,784) (200,142) Budget 2004 11,500 297,825 4,268 63,190 3,830 17,950 18,090 294,303 76,150 370,453 (72,628) (271,817) Percent Change 7.29% - 4.17% 6.72% Enterprise Fund Revenue and Expenses Highlights 3.56% Two and two- thirds emply.. 7.52% 4.92% 11.52% 4.08% 3.64% 9.04% Audit and other consulting. Equip. maint., heat & elec. Post., adver., training, and misc. Administrative fee and insurance Supplies, parts, fuel, small equip. 6.08% 30.33% Depreciation 10.30% 1.71% 0.48% Pavilion Budget Summary Revenues Ice Rental Turf Rental Soccer Leagues Dry Floor Rentals Mezzanine Rentals Rental Charges For Services Open Skating Admissions Advertising Concessions Vending Machines Sale of Assets Miscellaneous Interest Earnings TOTAL REVENUE Expenditures Salaries, Wages, Benefits Materials, Supplies, Services TOTAL EXPENITURES EXCESS OF REVENUES Over (- Under) Expenditures 1999 2000 2001 2002 2003 2003 2004 Actual Actual Actual Actual Projected Budget Budget 171,837 187,134 196,350 200,723 208,712 211,525 217,325 6,495 10,116 12,535 18,509 25,981 21,500 25,000 40,038 30,834 26,114 17,033 17,161 15,500 12,500 10,729 6,030 10,046 11,057 9,411 9,750 10,500 500 18,000 229,099 234,114 245,045 247,322 261,765 258,275 283,325 213 2,893 1,908 6,185 2,792 8,025 109 2,234 2,337 950 1,974 5,608 168 2,492 1,843 8,480 1,466 7,257 118 2,344 2,295 1,900 1,913 5,337 14,862 1,400 2,800 1,000 1450 6,200 2,900 2,900 3,000 3,000 6,000 1,250 2,750 1,000 1,500 5,000 22,016 13,212 21,706 28,769 12,850 17,800 11,500 2,999 4,321 3,302 3,183 0 3,000 3,000 254,114 251,647 270,053 279,274 274,615 279,075 297,825 168,046 144,352 79,816 79,651 167,752 167,752 172,115 179,111 186,975 94,773 88,966 88,101 98,318 107,328 247,862 224,003 262,525 256,718 260,216 277,429 294,303 6,252 27,644 7,528 22,556 14,399 1,646 3,522 • GENERAL FUND Property Taxes Intergovernmental Licenses, Permits & Fines Interest Earnings Charges for Services Miscellaneous Franchise Fees SPECIAL REVENUES Chemical Asses. Team ' $ Economic Development Real Estate Sales Paratransit Housing Rehabilitation Parking Section 8 Cable Franchise Depot Coffee House Art Center Tax Increment Financing REVENUES ADOPTED 2003 $ 6,201,252 1,369,705 595,530 160,615 197,040 13,164 2003 59,545 213,000 6,000 131,714 45,100 103,000 112,000 153,850 226,000 411,900 2,106,800 $ 3,568,909 PROPOSED 2004 $ 6,841,135 375,530 593,985 100,000 220,850 9,600 290,000 Difference change $ 639,883 (994,175) (1,545) (60,615) 23,810 (3,564) 2004 $ 59,545 47,000 6,000 130,466 (1,248) 32,100 (13,000) 98,000 (5,000) 117,500 5,500 146,450 (7,400) 204,000 (22,000) 423,200 11,300 2,228,154 121,354 $ 3,492,415 $ (76,494) CITY IlkOPKINS 2004 BUDGET SUMMARY - ALL FUNDS APPROPRIATIONS 10.3% - 72.6% - 0.3% - 37.7% 12.1% -27.1% $ 8,537,306 $ 8,431,100 $ (106,206) -1.2% GENERAL FUND Council Administrative Services Finance Legal Municipal Building Activity Center Community Services Police Fire Emergency Preparedness Public Works Recreation Planning Unallocated ADOPTED PROPOSED 2003 $ 111,739 384,531 158,391 123,980 101,869 296,446 795,621 3,553,948 591,536 5,110 1,953,234 226,405 103,393 131,103 $ 8,537,306 $ 97,174 273,650 157,746 123,555 84,474 277,809 775,067 3,555,226 530,115 5,110 1,756,659 196,649 78,068 369,798 $ 8,281,100 Difference change SPECIAL REVENUES 2003 - Chemical Assess. Team $ 59,545 $ (166,000) -77.9% Economic Development 245,786 Real Estate Sales - 0.9% Paratransit 131,714 130,466 - 28.8% Housing Rehabilitation 86,073 81,770 - 4.9% Parking 139,817 135,242 4.9% Section 8 82,625 104,149 -4.8% Cable Franchise 223,833 243,176 -9.7% Depot Coffee House 210,352 204,000 2.7% Art Center 370,475 380,091 Tax Increment Financing 5,100,040 4,831,889 - 2.1% $ 6,650,260 5 6,470,619 5.8% 2004 Difference change 2004 59,545 300,291 $ (14,565) (110,881) (645) (425) (17,395) (18,637) (20,554) 1,278 (61,421) -13.0% -28.8% -0.4% -0.3% -17.1% -6.3% -2.6% 0.0% -10.4% (196,575) -10.1% (29,756) -13.1% (25,325) -24.5% 238,695 $ (256,206) -3.0% Difference change 54,505 22.2% (1,248) -0.9% (4,303) -5.0% (4,575) -3.3% 21,524 26.1% 19,343 8.6% (6,352) -3.0% 9,616 2.6% (268,151) -5.3% $ (179,641) -2.7%