Memo-Budget Issues To ResolveMemorandum
To: Honorable Mayor and Members of the City Council
From: Steven C. Mielke, Hopkins City Manager
Date: October 24, 2003
Subject: Budget Issues to resolve
Administrative Services -
Office of the City Manager
As we approach the end of the budgeting process, several issues appear to be
unresolved. This memo is intended to outline those issues and to provide background
to them.
Public Works:
1. Reorganization Plan
a. Steve Stadler has submitted three re- organization plans. They are
attached. While none of these appear to have universal support, both
alternatives 1 and 2 would be best as far as staff is concerned. Also,
several other Cities public works organizational plans are attached.
i. Original $ 200,957 GF savings
ii. Alternative 1 $ 182,200 GF savings
iii. Alternative 2 $ 225,764 GF savings
b. Additional mechanic and or facility maintenance position. Depending on
the organizational plan that is chosen, the issue of an additional mechanic
and or facility maintenance position will need to be resolved.
2. Yard Waste
a. Staff submitted this issue to the Council several weeks ago. Council
decided to discuss this as part of the budget, or prior to next season. More
discussion with Public Works needs to be had before a decision can be
made.
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Police:
1. Lead Dispatch
a. The Council has questioned the need for a led dispatch position. Should
the Council determine it does not support the position, staff recommends
that the position be returned to a regular dispatch position, leaving a staff
of six dispatchers. An organizational chart of the PD is included in this
packet.
Fire:
1. Fire Marshal
a. The department has recommended leaving the Fire Marshal at full -time.
An option of reducing the hours to 30 has been discussed. Discussion
also centered on changing duties for the position to more closely match
the Council's desires.
2. Commercial Fire Inspections
a. As part of the fire department discussions, the concept of increasing fire
inspections was discussed. Along with this increased service would come
the potential of increased fee revenue to assist in paying for the Fire
Marshal's time to accomplish the task.
3. Fire Alarm Permits
a. The discussion on this topic was whether or not to require annual permits
rather than "perpetual" permits. This would allow for a better system and
better information for the City. The assumption includes increased
revenue.
4. Long -range Organizational Structure
a. The department is preparing to recommend a future organizational
structure, in light of future personnel changes. Those recommendations
will come in December or January.
Recreation:
1. Warming House Attendants Plan
a. The Council has indicated a preference for a plan that will reduce the
number of attendants and have the attendants work the various sites on a
rotating basis. Recreation will be developing such a plan and will submit it
to the Council.
Activity Center:
1. Hours of Operation
a. The Council indicated a willingness to reduce regular hours to 4 day per
week and rental hours for Friday through Sunday. Council needs to
confirm that plan.
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Skate Park:
1. The skate park has not generated a profit since it's first year. There are a variety
of reasons, but the City needs to determine the future of the facility. Options
range from closing the facility to leaving it as is and subsidizing it from the
general fund. Staff has considered other options as well:
a. Obtain grant funds to subsidize.
b. Lower the equipment to 4 feet allowing for the park to be open with out
staff.
c. Lower the equipment and move to a new location such as Central Park.
There is no subsidy in the current budget plans. Facility staff prefer to try and
find grant dollars, although there is certainly no guarantee. The estimated deficit
for this year is around $20,000.
Hopkins Center for the Arts:
1. The deficit for the HCA is budgeted at $86,000. The deficit is currently funded
from the Cable fund. Staff had previously recommended reducing staff time
dedicated to HCA Inc, lowering the deficit. Council asked for additional options:
a. Building Facility Charge. More information will be provided Tuesday on
this idea.
b. Placing the subsidy within the General fund.
c. Continuing the course in anticipation of increased results from current
plans.
d. The potential exists for more revenue if and when the Art's school opens.
Revenues could increase $20- 30,000 from the Arts school plans, although
time will need to be freed up from existing tenants.
General:
1. Cafeteria plan benefits:
a. A memo is attached discussing the concept of cafeteria -style benefits.
Any changes in this plan would require negotiations with the various
unions.
2. Furloughs
a. Staff has estimated a savings of $17,000 per day if all employees (except
uniformed police) were furloughed.
3. Administrative Citations
a. Several Cities have begun using administrative citations in place of state
citations. The legislature will be reviewing this practice next session and
will likely rule against cities. Staff recommends we wait until the legislature
is out to discuss this idea.
4. Street Light utility charge
a. It is estimated that a quarterly charge of $5 per resident could raise
enough money to pay for the cost of lighting streets and alleys in Hopkins.
5. Franchise fees
a. The Council has indicated a desire to consider a franchise fee on gas and
electric utilities. A hearing is scheduled for mid - November.
6. Tax Levy
a. The Council has indicted a preference to set the tax rate at an amount
that would protect the City in case of levy limits being re- imposed. This
60% levy -back is the majority of the preliminary tax levy. Any amount
below the 60% places some risk to the future of the Cities ability to levy.
This could be offset in the future with increases in the franchise fees or
other revenues.
7. Reserves:
a. The current budget does not include the use of GF reserves. Lori Yager
anticipates the ability will be there to use some reserves to off -set
increases in other areas, or to restore cuts in programs.
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