CR 91-36 General Fund Contingency Plan
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. February 1, 1991 Council Report # 91-36
1991 GENERAL FUND CONTINGENCY PLAN
Purpose
The purpose of the 1991 General Fund contingency Plan is to
prepare and plan for reductions ln aid payments which have
been budgeted for 1991.
Background
The state of Minnesota certified to the city of Hopkins that
Hopkins would receive $984,900 in Local Government Aid.
Financial instability within the state's budget has led to a
revenue shortfall of 1.6 - 2.0 billion dollars over the next
biennium. Indications from Governor Arne Carlson are that
major reductions in spending will be implemented to address
the state budget problem.
High in the governor's cut list is Local Government Aid
(LGA) . Indications are that cuts of 20 - 50% of LGA are
possible. If the cuts are spread equally to all cities, the
. city of Hopkins could expect a reduction of $197,000 -
$492,458.
The legislature and Governor recently enacted a $194.5
million reduction in the state budget. This will cause a
reduction in Hopkins' LGA in the amount of $105,000 ( est. ) .
The threat of this reduction in revenue, combined with a
goal of maintaining current service levels, has resulted in
the need to plan and prepare for the cuts now so that the
impact of possible cuts can be absorbed in an orderly
fashion.
Plan summary
The contingency Plan allows for the reduction in
expenditures and increase in revenue, which would allow the
City to respond to cuts in the 1991 budget. The Plan would
accommodate cuts in LGA up to $440,000 ( 45%) .
The Plan, if fully implemented, would result in employee
layoffs or furloughs, reductions ln some services and
increased costs to citizens and customers. Since it may be
months before we know the full impact of these cuts, the
Plan is set up to be implemented as late as July and still
meet the goals.
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-Steven C. Mielke, City Manager
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. POSSIBLE BUDGET CUTS
40510-302 Cut training in half 500
40960-580 Cut window coverings & landscaping 5,000
41100-302 Cut training (LETN) 5,000
41400-570 Cut misc. office equipment 500
41800-570 Eliminate computer terminal 4,000
15,000
40410-302 Eliminate Congress of Cities 3,000
40420-247 Reduce Wellness program 1,000
40420-302 Reduce city training fund 2,500
40420-570 Eliminate office furnishings 1,500
41110-580 Cut capital outlay 2,000
41500-302 Cut Zoning & planning commission training 500
42160-580 Eliminate sign/flag 1,200
42250-520 Eliminate park signs 3,400
15,100
41100-570 Cut some equipment 1,500
42100-305 Eliminate painting of buildings 7,500
42120-570 Cut office equipment 500
. 9,500
40415 Eliminate all increases 700
40420-203 Cut 2 newsletters, postage 2,000
40420-301 Cut 2 newsletters, printing 1,000
40600-302 Eliminate national conference 1,000
41200-141 No increase in fire call rate 3,400
41200-142 No increase in fire drill rate 3,400
42130-306 Reduce curb & sidewalk repair 5,000
42160-224 Clean mall every other day 1,000
17,500
TOTAL 57,100
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. 1991 GENERAL FUND CONTINGENCY PLAN
Goals of continqency Plan
0 Respond quickly and effectively to cuts in state
Aid.
0 Attempt to maintain current service levels.
0 Balance the City Budget.
0 Attempt to avoid employee layoffs.
0 Evaluate the budget with long range implications
in mind.
Possible Responses
0 Use of Fund Reserves.
. 0 Reductions in expenditures.
0 Increases in other revenues (ie.,fees and
charges) .
Immediate Actions
0 Freeze all capital expenditures which are not
life/safety related.
0 Delay initiation of new programs or services which
are not self-sustaining programs.
0 Initiate review/update of all fees and charges for
services.
0 Initiate an early retirment program.
0 Review 5% contingency plans by March 1 to ensure
ability to cut 5% from the budget.
0 Delay the purchase of products and services when
possible
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CONTINGENCY PLAN ADJUSTMENT
0 Budget Reductions of 5% $290,000
0 Early Retirement Plan Savings 20,000
0 Revenue Increases 30,000
0 Use of Fund Balance 100.000
TOTAL $440,000
Attachments
0 1991 General Fund Contingency Plan
0 5% Budget Reduction Summary
0 5% Budget Reduction by Source
0 Department proposals for 5% reductions
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. 1991 CONTINGENCY PLAN
1991 5%
BUDGET CUT
City Council - 40410 66,300 3,315
302 - Cut National League of Cities 7,000
302 - Cut League of MN Cities 2,000
302 - Cut Policy Development Training 1,000
Total savings: 10,000
City Manager - 40420 206,100 10,305
101 - Don't hire Intern for 2nd half of year 4,800
203 & 301 - Cut 1 newsletter 1.700
203 & 301 - Cut 1 newsletter 1,700
247 - Reduce Wellness Program 1,000
302 - Cut League of MN Cities 1,300
302 - Cut ICMA Conference 1 ,400
302 - Cut 1,000 out of city training fund 1,000
570 - Eliminate office furnishings 1,500
Total savings: 14,400
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Elections - 40440 1 7,000 850
120 - Reduce expenditure for election judges 550
302 - Cut clerks school 300
Total savings: 850
City Clerk - 40510 80,800 4,040
100 - Reduce the hours that city hall is open to
the public, Receptionist on duty from
9am - 3:30 pm for 5 months. 2,200
110 - City Clerk takes minutes at Council
Mtgs ($120/month for 5 months) 600
120 - Cut additional secretarial services 400
302 - Eliminate some NIGP meetings 200
302 - Eliminate the rest of the misc. training 500
401 - Order no publications 200
Total savings: 4,100
TOTAL 29,350
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. 5% BUDGET REDUCTIONS SUMMARY
5% = $287,635
BudQet 5% Proposed
City Council $ 63,300 $ 3,165 $ 8,000
Health & Welfare 41,500 2,075 0
City Manager 206,100 10,305 13,000
Elections 17,000 850 850
City Clerk 80,300 4,015 1,900
Finance 194,000 9,700 9,700
Legal 91,000 4,550 5,000
Municipal Bldg. 161,800 8,090 5,000
Activity Center 153,000 7,650 12,400 (1)
Total Gen. Govt. $ 1 ,008,000 $ 50,400 $ 55,850
Police $ 1 .847,400 $ 92,370 $ 92,000
Fire 365,600 18,280 18,000
Civil Defense 21 ,200 1,060 1,000
Total Public Safety $ 2,234,200 $ 111,710 $ 111,000
. C.Dev,-Administration $ 96,800 $ 4,840 $ 4,800
C.Dev.-Plan. & Econ. Dev. 81,000 4,050 4,025
C.Dev.-lnspection 142,500 7,125 7,125
C.Dev.-Assessing 232,600 11,630 11,600
Total Comm. Dev. $ 552,900 $ 27,645 $ 27,550
Public Works $ 1,702,100 $ 85,105 $ 86,900
Recreation $ 124,500 $ 6,225 $ o (2)
Insurance $ 22,500 $ 1,125 $ 0
Unallocated $ 100,000 $ 5,000 $ o (3)
Other Financing $ 8,500 $ 425 $ 8,500
TOTAL $ 5,752,700 $ 287,635 $ 289,800
(1) Includes Maintenance ($7,500) and Operating ($4,900) Budgets,
. (2) Proposed increase in fees/charges,
(3) Contingency Funds should be left in tact for unanticipated expenses.
. 5% BUDGET REDUCTIONS BY SOURCE
100 3-400 200 500 700
Personal Services & Capital
Department Services CharQes Supplies Outlav Other
City Council 8,000
Health & Welfare
City Manager 4,800 2,300 4,400 1,500
Elections 550 300
City Clerk 1,000 900
Finance 6,000 3,700
Legal 5,000
Municipal Bldg. 5,000
Activity Center 7,500 4,900
Police 88,600 3,400
Fire 8,000 3,800 6,200
Civil Defense 1,000
C.D.-Administration 1,300 3,500
C.D.-Plan & Econ Dev 1,325 2,700
C.D.-Inspection 3,600 8,000
. C.D.-Assessing 7,125
Public Works 35,000 32,900 12,500 6,500
Recreation
Insurance
Unallocated
Other Financing 8,500
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TOTALS $ 140,250 $ 78,525 $ 26,800 $ 35,725 $ 8,500
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. 5% Contingency Cut of 1991 Budget
Finance Department
200 Office supplies
A/P Envelopes - delay 1991 purchases until 1992. 900
Local vendors who do not provide payment
envelopes will have to pick up their checks.
Cash Receipts - eliminate procedure of providing 900
(writing) a receipt for every transaction -
accumulate daily transactions on sheet of paper
for computer entry. Breeches accounting control
to some degree.
Calculator - (replacement) delay and live with the 400
errors caused by the present calculator which drops
a zero every now and then.
Computer supplies - eliminate requests for special 600
runs, eliminate department monthly runs, reuse
stock tabs reverse side for worksheet runs.
. 201 Uniforms
Bargain to eliminate from union contract. 500
203 postage
If envelope usage is cut for mailing vendor 400
checks and only one check per year, for
election judges, is issued and they must
pick up checks.
301 Printing
Eliminate covers on budget and financial reports 550
and eliminate purchase of technical journals and
books.
302 Travel, Conferences & Schools 2,300
Eliminate annual national GFOA conference 1,300
Eliminate annual MN GFOA conference 300
Eliminate municipals workshops and 200
meetings
Eliminate training on computer 300
Drop maintenance contracts on check 200
signer and typewriters.
303 Professional Services
Eliminate FSA employee benefit program 3,700
. (Note: adds back city share of FICA saving (1,900)
to all departments with eligible personnel
$1,900.00)
net 1,800
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. 307 Communication
Use data disk rather than modem for transmission 400
from Mankato. Disk useage is the current trend
in 1990.
401 Dues 950
After spending extra audit fees to attain 400
the CAFER certificate in 1989 and 1990, do
not apply in future.
Eliminate participation in state of MN 350
joint purchasing venture.
Dues for Municipals 200
$9,700
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C I T y 0 F H 0 D K I (\J C'
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1',TTD(;f\T R Rmlc:n ONS/POU r.F. rWPAR TMF.NT
C:ONTTN(;F.Nr.y PLAN
Tn ~be pvpn~ ~bA~ i~ is necessAry ~o rpnllC'f" our 1991 bunEp.t by five-
pprr.Pll~, tbi ,C; W01l1 d llpcessi tAt:P. rllttinE ppysonnp.1 ,
011 )- t: 0 ~rll bunEP' for 1 ggl , lpc;s (,rlpi~rll pqllipmpnt pllrcnAsP rlnn inc:111ninE
tnp Cllts t:nA~ worp mR<1p on DpC'pmber 'i 1 gg(] , is $l,R7h,400. TllP 1,rPR kcl own
i ,c; R S f n 11 ows :
Pprsonnpl sprvic:ps: $1,'ig4,lOO - 87%
Supplies, sprviC'ps, an<1 o~npr c:hRrEp.s: $217, 'WO - 13%
TOTAL $1 ,R?h, 400 - 100%
. Only 11 pprcpn, of Ollr 1.0',."1] bll<1EP~ is in non-pPTsonnp] sPTvic:ps, A fivp
per('pn~ rpr1llc:~ion in Ollr budEP' WOllIcl RmOlln' ,n $g1, 100. Tf t:bis fllll
,qmOllnt were to come from the non-pprsonne] services RreR, ovpr 3n: of onr
nOll- peT sonne 1 servicps re18ten hll<1EP~ WOllIn havE' to be Cll~.
Tbis COllI n ]W rlC',compl i shen hy laynffs Ann/or not, hi ring replAcements for
~hose who discontinue employment with the npprlr~mell~. Examplps of the
SAvings which cOllld be expected by lAying off t:bose with t,he least:
sPlliority riTE' rlS follows:
0 Prltrnl officpr - $44,100
0 Pi sprJt:cher - $1'i,ROO
0 PSO - $78,700
0 Recorns clprk - $2h,100
Thp flhovp fiEllrps Rssume, of eourse, thp rlhove position wmlld he VrlCRnt
for the Pllt:ire year. Thp I R tPT ill t:hp yeRr R person is lRin off/resigns
WOllIn rpsul~ in A YP&lct:ion in tbe amount: SRved,
Othpr RreAS thR~ we hRve ('ollsidpTPn for renuctions RrP;
n ~lndjnE for S.E,P. (SppC'iRl Enforcpmen~ Program) - $7,200
e 0 F.liminR~p prRr~ice of formal C'ompIRin~s for ~rRffic RccinPll~S
$h,OOO
1010 First Street South, Hopkins, Minnesota 55343 612/935-8474
An Equal Opportunity Employer
. Conting~ncy Plan
12-7-90
Page 2
0 Eliminate Kg program - $2,500
0 Discontinue support of school patrol program - $1,200
RECOMMENDATION: If it becomes necessary to trim $91,300 from the 1991
budget, this would be accomplished by abolishing the crime prevention
officer's position and the undercover drug enforcement officer's position
and reassigning both of those employees to the patrol unit. We would then
be forced to layoff two patrol officers, along with the reductions to the
supplies/services as indicated above.
We continue to explore ways to increase revenue by either increasing or
instituting new user fees, These arc:
0 Accident reports
0 Peddler penni ts
0 Case reports
. 0 Dog ]icenses
0 Fingerprinting
I believe we should continue explore reimbursement to the City for the use
of police personnel for special programs conducted by the Jaycees, HeMP
and Raspberry Festival, etc.
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MEMORANDUM
Date: December 10, 1990
To: steve Mielke
From: Dave Klocek
Subject: 1991 Budget Contingency
The fire department submitted a 1991 budget that was increased only
$10,000.00 over the 1990 budget. In order to do this, I had to reduce
parts of the 1991 budget that would not normally have been cut.
The $10,000.00 increase was then made up of primarily increases in the
fire volunteers compensation for fire calls, training drills, and
increased hours for the fire inspectors commercial property
inspections. We may lose most of the 1991 budget increase before the
budget is accepted by council.
. To propose further cuts in the fire department budget would have an
obvious impact on service, programs, and general operating supplies
should a 5% further reduction in budget funding occur.
I am submitting 3 plans that would impact a 5% budget reduction. Each
has varying degrees of impact on service, programs, and general
operating expenses.
Plan I would have the most serious impact on the community. Plan II
would impact the community also, and both would impact the department
most directly in reduced compensation to the firefighters. Plan III
would have an equal impact on both the community and the fire
department. This would include reductions in service, programs, and
operating expenses and supplies.
Enclosures
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PLAN I
Current Proposed Reduction Budget
Code 143 $28,000.00 $18,000.00 $10,000.00
The fire department would respond to crisis only emergency medical
calls. This would include heart attacks, severe trauma, and P.I.
accidents. The other calls even though still medical emergencies, may
not be answered under these budget reductions. This does impact the
community and other city departments as well i.e. increased time on
EMS calls for the police department.
PLAN II
current Proposed Reduction Budget
Code 140 $ 4,100.00 $ 1,000.00 $ 3,100.00
Code 143 $28,000.00 $14,000.00 $14,000.00
Code 214 $ 4,000.00 $ 2,000.00 $ 2,000.00
Code 303 $ 6,000.00 $ 1,000.00 $ 5,000.00
. This plan affects EMS calls by 50%. Other programs reduced are fire
prevention (214), fire code inspection (140) and expert and
professional services (303) . This could include the fire department
providing limited EMS response during certain time periods each day
i. e. 8:00 a.m. to 4:00 p.m. Monday through Friday.
PLAN III
General Operating supplies
Current Proposed Reduction Budget
Code 200 $ 200.00 $ 500.00 $ 1,500.00
Code 201 $9,000.00 $2,000.00 $ 7,000.00
Code 202 $6,200.00 $1,200.00 $ 5,000.00
Code 215 $1,200.00 $ 500.00 $ 700.00
Code 217 $2,800.00 $1,000.00 $ 1,800.00
Programs and Services
Code 214 $ 4,000.00 $1,000.00 $ 3,000.00
Code 140 $ 4,100.00 $1,000.00 $ 3,100.00
Code 143 $28,000.00 $7,000.00 $21,000.00
. Code 302 $16,000.00 $3,600.00 $12,400.00
Code 303 $ 6,000.00 $1,000.00 $ 5,000.00
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December 10, 1990
This plan will impact the community and the department with equal
proportions and may be the most sensible approach with only a modest
impact on all concerned.
Code 580 Self Contained Breathing Apparatus $7,800.00 will not be
considered by the fire department as an area that can be cut. Personal
protective equipment that does not meet current standards must be
replaced. Firefighter safety cannot be compromised.
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. CITY OF HOPKINS
MEMORANDUM
DATE: December 10, 1990
TO: steve Mielk~~ Manager
FROM: ' (, 't 1 t' t
Tom Harmenlng, Communl y Deve opmen Dlrec or
SUBJECT: Contingency Plan - 1991 Budget
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You requested that the various departments develop a contingency plan for
the 1991 budget representing the following:
0 5% cut in 1991 budgets and related impacts
0 possible deferrals in expenditures for 6 months
Attached are worksheets from Community Development Admin. , Planning &
Economic Development, Inspections, and Assessing which illustrates in
eletail a response to the aforementioned questions. Outlined below is a
3ummary of the attached information.
I. Budqet - Community Develo~ment Admin.
0 5% of budget to be cut - $ 4,840
0 Possible Reductions:
- 301 Advertising/Publications 1,000 (90% cut)
- 302 Travel/Conferences 1,500 (50% cut)
- 303 Expert & Professional 1,000 (90% cut)
- 102 Part-time Employees 1, 300 (65% cut)
TOTAL $ 4,800
II. Budqet - Planninq & Economic Development
0 5% of budget to be cut - $ 4,025
0 Possible Reductions:
- 301 Advertising/Publication 200 ( 2 0 % cu t )
- 302 Travel/Conferences 200 ( 7.5% cut)
. - 303 Expert/Professional 900 (90% cut)
- 401 SUbscription/Membership 25 ( 8.5% cut)
- 570 Office Equipment 2,700
($2,200 of this represents
proposed carryover from
1988)
TOTAL $ 4,025
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.III. Budget - Inspections
0 5% of budget to be cut - $ 11,630
0 Possible Reductions:
- 302 Travel/Conferences $ 1,000 ( 7.8% cut)
- 303 Expert & Professional 2,600 (52% cut)
- 570 Capital outlay 8,000
~($6,OOO of this represents
~ proposed carryover from
~ 1990)
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" TOTAL $11,600
IV. Budget - Assessing
0 5% of budget to be cut - $ 7,125
0 possible Reductions:
- 570 Capital Outlay $ 7,125
(consists of proposed
1990 Budget carryover
for computer purchases)
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TOTAL $ 7,125
GRAND TOTAL COMMUNITY DEVELOPMENT $27,550
V. Comments
The aforementioned information has been prepared to meet the request
which you made to the department heads. I, along with the other
division heads in Community Development, are concerned about the level
of the proposed cuts and their impacts.
If the City does need to make cuts later this year, I would like to
sit down with you and discuss the aforementioned cuts and the
appropriateness and fairness of an across the board cut. By and large
the Community Development Department has held the line in 1991 on
budget increases. If an across the board cut were instituted later,
Community Development would be unfairly penalized for holding the line
on its budget.
Please understand that the proposed sources for budget cuts are
preliminary and may be subject to change later.
I encourage you to read the attached memos from the various division
. heads.
XSTEVEM
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. 1991 BUDGET - CONTINGENCY PLAN
Community Development Administration
I. Proposed 1991 Budget - $ 97,300
Proposed Cut - 500 41400 - 570 Misc. Off. Equip.
$ 96,800
x 5%
$ 4,840 Contingency Reduction
II. possible Budget Reductions & Impacts
0 41400 - 301 Advertising/Publication/Print - $ 1,000
Eliminate printing of CIP and/or
strategic plan or reallocate
all or portion to 204 Fund.
0 41400 - 302 Travel/Conferences $ 1,500
Reduce by 50% attendance at seminars/
conferences, and training classes, etc.
0 41400 - 303 Expert & Professional $ 1,000
. Do not hire consultant assistance for
strategic planning, or reallocate to
204 Fund.
0 41400 - 120 Part-time Employee $ 1,300
do not hire temporary employees to
replace clerical during vacations, etc.
on a full time bases. Results in
disruptions to operations or increases
burden on clerical in other depts. or
divisions.
TOTAL CONTINGENCY REDUCTION $ 4,800
EXPENDITURE DEFERRALS
possible activities/expenditures which could be deferred until
June/July include:
0 Reduce attendance at seminars, conferences, training sessions,
etc.
0 Do not become heavily involved in strategic planning process,
or attempt to undertake all activities on a staff basis only -
no consultant assistance.
. 0 Do not hire part-time help on a full-time basis to replace
Joyce Picha when she is on vaction or ill.
0 Attempt in general to hold down expenses.
CONTPLAN
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CITY OF HOPKINS
MEMORANDUM
DATE: December 10, 1990
TO: Steve Mielke, city Manager
FROM: Jon Thiel, PUblic Works Director
SUBJECT: 1991 Budget 5% Contingency Cuts
As you requested we have reviewed the PUblic Works general fund
budgets for 5% contingency cuts and possible revenue sources.
Following is detailed line item detail cuts to meet a 5% contingency
cut (Approx. $85,000) :
BUDGET CUT DESCRIPTION AMOUNT
All P.W. - 110 Overtime 20,000
. All P.W. - 120 Part-time 15,000
All P.W. - 302 Travel, Conf, Schools 6,000
42100 - 305 Painting Buildings 8,000
42110 - 202 General Supplies 1,000
- 580 Tire Maint. Equipment 3,900
42120 - 301 Advertising, Pub, Print 400
- 303 Professional Services 500
- 304 Contract Maintenance 500
- 570 Office Equipment 500
42130 - 220 street Maint. Material 5,000
- 306 Curb & Sidewalk Repair 10,000
- 321 Seal Coating 5,000
- 580 Concrete Saw 2,100
42160 - 224 Mall Maint. Supplies 1,000
42170 - 225 Street Light Supplies 2,000
42250 - 206 Maint. - Other Improv. 2,000
- 221 Sand/Gravel 500
. - 315 Heating Fuel - Gas 1,500
- 341 Disposal Charges 500
42260 - 244 Tree Stock 1,500
- 341 Disposal Charges 500 ?
86,900
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12/10/90 Memo
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. The effect of these cuts will primarily be in the level of service in
the streets, Traffic, Parks, Forestry & Sanitation areas. All areas
would continue to function but no "extras" could be accomplished. The
minimum level of service would be performed and in some areas cut back
i.e. street maintenance (minimum patching, street cleaning etc.) park
maintenance (less turf maintenance, minimal skating rinks, etc. ) and
tree services (less tree planting, etc. ) . Capital and major
maintenance items would only be deferred to a later budget, not
eliminated as a need.
Additional cuts can be made if brush pick-up and the Fall leaf pick-up
were discontinued. At least one and possibly two maintenance
positions could be saved by furloughing maintenance Worker II
personnel on a monthly rotation. Savings possible - $30,000 (2 men/roo
for 6 months)
There are other possible cuts but any additional would cause extreme
service level decreases in all Public Works areas.
Following area possible revenue sources in the Public Works area:
Brush pick up Charge $15/stop X 2000/stops $30,000
. Assess Seal Coat Project $50,000
Increase Private utility Permit Fees (double) $ 1,000
Initiate Private utility Franchise Fees (NSP, Minnegasco, possibly
u.s. West) . This would be difficult due to resistance of utility
companies and appearance of hidden tax aspect. state law still
appears to allow this fee but there may be some restrictions on
residential fees during the heating season. Legal and operational
research would have to be undertaken and records of sales from the
utilities would have to be obtained. The current franchise fee seems
to be form 1 to 5 percent.
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MEMORANDUM
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TO: steve Mielke, City Manager
FROM: Richard Wilson, Recreation Director K-K I
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SUBJECT; 1991 Budget Reductions and Contingency Reductions Planning
DATE: December 10, 1990
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HOPKINS ACTIVITY CENTER
The staff proposes all "reductions" be from the capital improvement accounts.
BUDGET REDUCTIONS
The City Manager's December 5, 1991 memo itemized an amount of $5,000 to be reduced
from the "managers proposal" for 1991. The specific projects were Window coverings
and Landscaping. Staff proposes that be amended to:
Landscaping $2,300
Cabinets $2,700
CONTINGENCY REDUCTIONS
. The Activity Center's 5% share of $98,300 is $4,915. It is understood this amount
will not be authorized as available, until later in 1991.
Staff proposes that the specific projects to be delayed be:
Landscaping $ 700
Kitchen Storage Cabinets $2,500
Window Coverings $1,715
PROJECTS AUTHORIZED TO BE ACCOMPLISHED IN JANUARY 1991
Tableware $2,700
Window Covering $ 285
(partial for Raspberry Room and Lounge)
RECREATION DEPARTMENT- Contingency Reductions
It should be noted that the City Manager's proposed budget for Recreation is already
reduced by $23,400 from the staff estimate, to $124,500. This is approximately 19%
The Recreation Department's 5% share of $124,500 is $6,225. Priority is to credit
all departments, including Recreation, that operate in a conservative and efficient
manner in 1990, by the amount unexpended in that department in 1990. The City
Manager's proposed budget does not anticipate any surplus from 1990. Therefore, all
unexpended 1990 funds are unanticipated and can be credited to 1991, and be
available for contingencies.
. The Recreation Department's second choice of a manner to develop extra funding for a
contingency, is to begin 1991, or as soon as possible, by increasing user fees at
the rate of approximately $1 per registrant. Based on an estimated 30,000
registrants annually, the Hopkins benefit of this effort will be $10,000.
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1991 Budget Reductions and contingency Reductions Planning
December 10, 1990
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A third technique to save some funding until later 1991, involves delayed purchases
in capital improvements. The Recreation Department tentatively has $6,600 from the
combined two cities, designated for purchase of items for the Shady Oak concession
stand, office cash register and office computer hardware. Approximately one-third
of this is derived from Hopkins.
A large portion of the Recreation Department program is financed by user fees.
Therefore, it is difficult to reduce cost of operation (taxes). Taxes fund ice rink
warminghouse attendants, summer playgrounds, park guest services attendants (PGSA)
and administration.
warminghouse attendant funds are mainly expended in January-February. Playgrounds
and PGSA employees are usually committed to in April. Employment contracts can be
cancelled and the services discontinued in mid-season, only with a great deal of
difficulty.
Reductions in administration of the Recreation Department are, in the majority,
probably only possible in full-time staff reductions. The Hopkins share of the
reductions amounts to one-third of the total. There are undoubtedly other cut-backs
that can be accomplished, in an emergency. If needed, the city Council can shut
. down the Shady Oak Beach operation at a moments notice. The Recreation Department
fall, winter or both, brochures can be cancelled. Etc.
Please keep me informed of your desires.
. RLW:lmb
memoOO2
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