Memo - 2003 Budget Adjustments•
•
•
Memorandum
Administrative Services Department
Office of the City Manager
To: Honorable Mayor and Members of the City Council
From: Steven C. Mielke, City Manager
Date: June 6, 2003
Subject: 2003 Budget Adjustments
Anticipated Budget Shortfall
The State Legislature and Governor recently signed into law an omnibus tax bill that
includes cuts in local government aid to the City of Hopkins. According to estimates
from the League of Minnesota Cities we will be receiving $731,000 less in local
government aid in 2003 than was announced to us by the State of Minnesota under
previous law. This represents a reduction in our budgeted revenues of roughly 8.6
percent.
Budget Options
In April of 2003 the City Council requested that staff provide a list of options for
consideration by the City Council as potential adjustments to the 2003 budget, which
could be adopted mid -year. A draft was provided to the City Council that outlined more
than $1 million in potential adjustments, some of which were revenue enhancements
and others were expenditure reductions. In discussing this list, the City Council ranked
the options in light of their probability that the Council would enact those actions. The
options were ranked as high, middle, or low. The high probability options had a
cumulative total of $649,900. This list is attached.
Since that time the legislature has adjourned and staff is now prepared to recommend a
final list of 2003 adjustments.
Recommended Adjustments
In discussions with the City Council, the Council stated its desire to minimize service
impacts in 2003. They indicated a willingness to utilize budget reserves and delayed
programs in order to provide a forum for 2004 budget adjustments with residents and
taxpayers, focusing on the 2004 budget. As such, the recommended adjustments
(attached) propose modifications to the budget without significant program impacts.
Also, based on the Council's direction, it is anticipated that the 2004 adjustments may,
in fact, have significant program impacts, either through reductions in expenses and
personnel or through increased revenues from available sources.
•
•
The recommended list of adjustments includes $199,600 in permanent adjustments,
$434,300 in temporary adjustments, and $109,000 of adjustments that could become
permanent or temporary, depending on future decisions.
2004 Adjustments
The League of Minnesota Cities estimates that the City of Hopkins will lose $1.1 million
in revenues for the 2004 budget. Any permanent reductions that occur in 2003 will
assist in balancing the 2004 budget.
Please feel free to contact me if you have any questions prior to Tuesday's work
session.
Mayorcc2003budget
Recognize allowed transfer of maintenance $ from MSA I
Can stretch ERP to allow reduction for up to 4 years. 1
Savings to GF. Was restricted in 2002 as well. 1
Cancel project for one year , 1
Preparation for eventual retirement of Director. 1
Savings on negotiated settlements. 1
Re -org. positions, hire worker. ($ larger if no replace) 1
Move all communication activities to Cable fund. 1
Cancel project for one year 1
Move all communication activities to Cable fund.
Position supports the goals of the Housing fund. 1
Fee increases already approved
Reallocate department charges - street maintanance
Reallocate department charges of this position 1
Re- evaluate service as part of 2004 budget 1
Reduction of scheduling coord by 8 hrs /week 1
Social service program - eligible for CDBG 1
Delay for one year. Consider in 2004 1
delay purchase 1
!delay purchase 1
Delay of purchase 1
'Discontinue - will provide more officer flexibility 1
(Work with HCA Inc to transition position to them. 1
1 Unfilled new position. 1
1Charge for current service 1
!Allowed to charge up to 5%
!Reduction in service until other revenues allow. 1
!Utilize savings from this and prior year's budget
Transfer /Existing Rev.
Appropriation/Transfer 1
Appropriation
Appropriation
Appropriation/Transfer 1
Appropriation
Appropriation !
Appropriation/Transfer
Appropriation
Appropriation/Transfer 1
Appropriation/Transfer
Existing Revenue
Transfer /Existing Rev.
Appropriation/Transfer
Appropriation
(Appropriation
Appropriation/Transfer
Appropriation
Appropriation
{Appropriation
!Appropriation
Appropriation
Appropriation
Appropriation
1New Revenue
!New Revenue
!Appropriation
Use of Fund Balance
1 d/1
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1 d/1
1 d/1
a
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a.1--
d/1 1
d/1 1
d/1 1
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1 Md
1 ulwpv
1 Md
1 ulwpV
1 Md
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Transfer of State Aid Maintenance $ 1
•
•
Reduce Equipment Replacement Fund Transfer
Cancel Out -of -State Travel
Delay of Seal Coat program 1
Transfer Asst. to CM to Econ Dev. 1
Wage and Benefit savings 1
Eliminate 1 superintendent position in PW 1
Transfer Communications Coord. To Cable Fund 1
Delay of Sidewalk Maintenance Program
Transfer Newsletter to Cable Fund 1
■
Move 1/3 of Housing Inspector costs into Housing Fund 1
General fee increases !
Transfer of Storm Sewer funds
■
Increase inter - department charges of IT Coord. _ 1
Cancel school liaison funding for all of 2003
Reduction of business office hours at HCA
Transfer of Family Resource Center subsidy to CDBG I
•
{ Hopkins Activity Center partitions _ {
{Delay purchase of reserve pagers
rDelay purchase of computer
{Delay purchase of Radar Unit
ITOTAL
'Eliminate Police Dog Program
I
"
Reduction of Arts Coord position to PT
Delay hiring of "new" officer position
!TOTAL
(ii/ 000`091.$ = uw /05' £$ ) e0 J 1
!Franchise Fees (gas and electric) (1% = 200,000 /yr)
'Cancel second Hop -A -Ride Van
'Use GF contingency
I
'TOTAL
1000'00
000`0£
000`0£
000`0£
000`017
000`0•
000'09Z
28,0001
1000`£2
1000`L l.
009`£
009'£
009'17
009'17
000'9
000'01.
000`01.
000'91.
OOL`Z
000'1.
000'Z
'006`6179
000'09
000`02
009'1.
009'18
1 75,000
000'001. 1
000'9 1
1 1 00,000
1 283,000
(d)W /(1)H
222122
1 �H 1
2
1 LH 1
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170, - 1 1
170, 1
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1,014,400 GRAND TOTAL
1 Recognize allowed transfer of maintenance $ from MSA 1
I Can stretch ERP to allow reduction for up to 4 years. 1
(Unfilled new position.
'Savings to G Was restricted in 2002 as well.
1Cancel project for one year
1 Preparation for eventual retirement of Director.
(Savings on negotiated settlements.
Move all communication activities to Cable fund.
Cancel project for one year
Accounts for a portion of the Clerks time to PIR
Move all communication activities to Cable fund.
Assumes 2 employees - no replacement
Fee increases already approved
Reallocate department charges - street maintanance 1
',Delay this year's program
Reduction in program costs
Reallocate department charges of this position
Re- evaluate service as part of 2004 budget
Reduction of scheduling coord by 8 hrs /week
,
Social service program - eligible for CDBG
Delay for one year. Consider in 2004
delay purchase
delay purchase
Delay of purchase
'Use of Fund Balance
(Transfer /Existing Rev.
LAppropriation/Transfer
1Appropriation
!Appropriation
!Appropriation
lAppropriation/Transfer
Appropriation
LAppropriation/Transfer
Appropriation
Appropriation/Transfer
Appropriation/Transfer
Appropriation
Existing Revenue
Transfer /Existing Rev. 1
Appropriation
uoge!Jdo.Iddy
Appropriation/Transfer 1
Appropriation 1
uogeudoiddV
Appropriation/Transfer 1
Appropriation
Appropriation 1
Appropriation
Appropriation
•
d/1 1
Unallocated
Md
M l
Md
1 p at e ool l e uf
1 Md
ao y o d
Budget savings
thise Fees (gas and electric) (1 % = 200,000 /yr)
1
3F contingency
1 Light Fee ( $3.50 /mn = $150,000 /yr) 1
nate 1 superintendent position in PW
action of Arts Coord position to PT
Beilgrove Subd. Street repair project
el second Hop -A -Ride Van
1 d/1
1 d/1
d
l-
I-
I-
I-
1
'Unallocated
pateoolleuf 1
ao!lod 1
Md I
u!
1 1 1 I 1
1Admin
Md 1
s,de IIY
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(Transfer of State Aid Maintenance $
'Reduce Equipment Replacement Fund Transfer
'Delay hiring of "new" officer position
!Cancel Out -of -State Travel
Delay of Seal Coat program
Transfer Asst. to CM to Econ Dev.
Wage and Benefit savings
Transfer Communications Coord. To Cable Fund
Delay of Sidewalk Maintenance Program
I
Transfer of Special Assessment processing to PIR fund
Transfer Newsletter to Cable Fund
Early Retirement Savings
1
General fee increases (including Rental licensing fees)
I
Transfer of Storm Sewer funds
1
(Cancel Boulevard Tree Planting for 2003 7
I
Reduce Snow /Ice Equipment rental budget
Increase inter - department charges of IT Coord. 1
i
Cancel school liaison funding for all of 2003
I:
Reduction of business office hours at HCA 1
Transfer of Family Resource Center subsidy to CDBG
Hopkins Activity Center partitions
ii
Delay purchase of reserve pagers
Delay purchase of computer
11
Delay purchase of Radar Unit
TOTAL
l oo,000
1 250,000
000'09 I
1 40,000',
40,000
30,000
40,000
28,000
I
23,000
21,000
17,000
15,000
I
000`L
000`0l.
000`0£
I
1000'9
1
1000`9
I oos`b
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009'£
009'£
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2
2
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2
2
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e/u
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1 e/u I
2
2
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2
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1
ies over expenses in 2002
upto5%
lm this and prior year's budget
1 service
hire worker. ($ lamer if no replace) 1
■
lc to transition position to them.
gad sections of roadway
ice until other revenues allow.
ice until other revenues allow.
provide more officer flexibility
■
'Use of Fund Balance
1New Revenue
'Use of Fund Balance
1New Revenue
(Appropriation
Appropriation
uogeudoJddv�
1
[Appropriation
1 uo!leudo.iddV
I
Appropriation 1
N
d /1
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d/1
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o
1 d/1
Q
'Unallocated
pateoolleuD 1
pa1OolleUn
Unallocated
Md
M l
Md
1 p at e ool l e uf
1 Md
ao y o d
Budget savings
thise Fees (gas and electric) (1 % = 200,000 /yr)
1
3F contingency
1 Light Fee ( $3.50 /mn = $150,000 /yr) 1
nate 1 superintendent position in PW
action of Arts Coord position to PT
Beilgrove Subd. Street repair project
el second Hop -A -Ride Van
ce Mall Maintenance expenditures
late Police Dog Program
kL
1
1
1 1 1 I 1
I I
1
I
i i
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1
I
17
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I£
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01.
1
8/I
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2
0
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0
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0
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a
0
1,270,900 GRAND TOTAL