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Memo- 1999 Proposed Budget• 4 • MEMORANDUM TO: Honorable Mayor and Members of the City Council THROUGH: Steven C. Mielke, City Manager FROM: Dave Johnson, Director of Recreation Services DATE: November 6, 1998 SUBJECT: 1999 Proposed Budget The 1999 Proposed Recreation Services Department Budget is actually comprised of ten divisional budgets. Of these budgets, the City of Hopkins is directly tied to budgets for Hopkins Direct Services, Joint Recreation, the Hopkins Activity Center and the Depot Coffee House. The following provides a brief program summary of each Hopkins division. JOINT RECREATION Recreation Services provides over 45 programs and services for residents of Hopkins and Minnetonka. In 1997 Recreation Services registered 21,575 participants in programs offered through the department. A listing of the programs and services offered is attached for the Council's review. All activities provided through the • Joint Recreation budget, with the exception of Shady Oak Beach, are required to be self supporting. Any reduction to the Joint Recreation budget would have to come from the administrative portion of the budget (i.e., personnel, office supplies, professional services, etc.) A description of significant adjustments to the 1999 proposed budget is also attached for Council's review. HOPKINS DIRECT SERVICES The Hopkins direct services budget includes funding for playground programs, park attendants, warminghouse attendants, and senior clubs /services. These programs are not self supporting, and do not generate any revenue from participation fees. Reductions in this budget would come in the form of reduced services such as providing fewer ice rink or playground locations. DEPOT COFFEE HOUSE The Depot budget actually consists of separate budgets for the Teen Center and Coffee House operations. Staff is preparing a budget to present to the Depot Board for approval later this month. The budget presented will be self supporting with revenues and expenditures both totaling approximately $220,000. HOPKINS ACTIVITY CENTER The proposed 1999 Hopkins Activity Center budget permits the facility to be open for 70 hours per week. The 1998 projected attendance is 38,600 people, involved in 110 programs and events. At the Counci's direction, the Activity Center staff concentrated on marketing the facility in 1998 to generate additional revenues. To date, revenue generated from increased use of the Activity Center is over $9,000, more than double the amount budgeted for in 1998. Reducing the 1999 budget would affect the Activity Center's ability to continue to operate at the same number of hours and continue to market the facility and its programs and events. • • • PROGRAM MANAGER I ACTIVITIES & SPECIAL EVENTS STAFF: PERRY VETTER Arts & Crafts (all) Biking (s) Cross Country Ski (w) Daily Programs (all) Nature Camp (s) Skating Lessons (all) Summer Festival (s) Ice Rinks (w) Day Camp (s) Cities Week (f) Safety Camp (s) Playground Programs (s) Natural Resources (all) Ice Revue (w,sp) PROGRAM MANAGER II PROGRAMS /FACILITIES STAFF: RON SCHWARTZ Adult Basketball (w) Adult Broomball (w) Adult Football (f) Adult Soccer (sp /w) Adult Softball (sp /s /f) Adult Volleyball (f /w /s) Daily Programs (all) Golf (w /sp) Hopkins PGSA (s) Youth Soccer (s,f) Tennis (all) intramurals (f,w,sp) Youth Soccer (f) Facility Scheduling (all) ( ) Season program is offered RECREATION SERVICES BASIC PROGRAMMING RESPONSIBILITIES PROGRAM MANAGER I AQUATICS & FITNESS STAFF: JENNIFER BOUGHTON Exercise (all) Libbs Lake Beach (s) Safety Camp (s) Shady Oak Beach (s) Water Aerobics (all) Swimming (all) Exercise / Fitness (all) Pool Scheduling (all) PROGRAM MANAGER I YOUTH SPORTS MANAGER STAFF: TOM MOORE Youth Basketball (f,w) Adaptive Recreation (all) Daily Programs (all) Intramurals (f,w,sp) Ball Skills (f /w) Youth Soccer (s,f) Safety Camp (s) Youth Baseball (s) Arena Advertising (all) Teen Program - Williston (all) Baseball / S.B. Training(w,sp) Outdoor Ice Schedules (w) 4- Our Youth (all) Depot Programming (all) Object No. Budget Comments 4112 Salaries- Temporary. Increases to this account of $32,500 are primarily program related and covered by increased registration fees. The most significant change relates to expanded swim programs and an increase of $28,900 for instructors. 4309 Contract Instructors /Officials. An increase of $52,600 is projected for this account in 1999. All increases are covered by increased program participation. The most significant increase of $53,800 relates to Youth Basketball and anticipates a continued relationship with a private entity to provide summer youth camps. 4367 Service Contracts. This account includes an increase of $16,100 for fees to LOGIS for the new "Class" program registration system. Funding of $22,200 for the Adaptive Recreation contract with West Hennepin Community Services has been transferred to this account from 4399. 4393 Rents and Leases. Funding for a new program in 1999 "Music in the Parks" is included in this account. It is anticipated that this program will be conducted at the new West Ridge park shelter with a portion of the $2,500 cost funded through corporate sponsorships. 4399 Other Miscellaneous. A reduction in this account of $20,000 is a result of the adaptive recreation contract now itemized under 4367. Footnote Estimated Revenue Generated. The Joint Recreation program budget includes estimated revenues of $103,000 for Shady Oak Beach in 1999. Revenues for the beach were not generated in 1998 due to construction. Program revenues for 1999 are estimated to be $757,000. ,GITY OF MINNETONKA, MN DEPARTMENT: Recreation *Fund Name: General • 1999 PRELIMINARY BUDGET Account No. 1800 35 • • • JERRE A. MILLER JEREMY S. STEINER* WYNN CURTISS • Real Property Law Specialist, certified by the Minnesota State Bar Association DATE: TO: FROM: RE: c: \file\hopcivil\memo.j ss VESELY, MILLER & STEINER, P.A. PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW 400 NORWEST BANK BUILDING 1011 FIRST STREET SOUTH HOPKINS, MINNESOTA 55343 MEMORANDUM JOSEPH C. VESELY (1905 -1989) 612- 938 -7635 FAX 612 - 938 -7670 November 12, 1998 Lori Yager, Director of Finance Steve Mielke, City Manager Jerry Steiner, Jerre Miller and Wynn Curtiss Proposed Budget for Legal Services for the period January 1, 1999 - December 31, 1999 Attached to this Memo is our Proposed Budget for legal services provided to the City of Hopkins for the calendar year beginning January 1, 1999. This budget proposes modest increases in our hourly rates for prosecution services and civil legal services. Under the Proposed Budget our rates for the time period January 1, 1999 through December 31, 1999 would be as follows: 1. Prosecution services would increase from $75.00 per hour to $77.50 per hour. 2. Civil legal services would increase from $85.00 per hour to $90.00 per hour. 3. Legal Assistant services for both civil and criminal work would remain at $40.00 per hour. The proposed increases are based on several considerations: 1. The $75.00 per hour rate for prosecution services and the $85.00 per hour rate for civil legal services have been in effect since January 1, 1997. As of January 1, 1999, it will be two years since the last adjustment in the rates for our legal fees to the City of Hopkins. During that two year period, we have experienced increases in most of our overhead expenses, including increases in rent, staff compensation and insurance costs. We believe the increased rates that we are proposing are quite modest in view of these increased overhead costs that we have incurred. 2. We believe we have established a good track record of providing cost - effective legal services to the City of Hopkins. In fact, taking into account the Court costs and fines revenue • • • generated for the City as a result of the prosecution services provided by this office, the net cost to the City of the legal services that we provide has actually been reduced by almost half over the past three years. This cost savings to the City results in large part from effective and experienced prosecution services, which we intend to continue to deliver in a cost - effective manner with a view to maximizing revenue to the City from Court fines and Court costs. 3. Based on an informal survey that we have made of rates for comparable legal services paid by other metro area municipalities, we believe the proposed rates for the 1999 fiscal year remain significantly lower than rates paid by many other municipalities for the same types of legal services. The hourly rates of $77.50 per hour for criminal work and $90.00 per hour for civil work are substantially less than our normal hourly rates for legal services, which are currently between $135.00 and $150.00 per hour, and will be increased as of January 1, 1999. We are very appreciative of the confidence the City of Hopkins has placed in this firm, and look forward to continuing our long - standing relationship with the City. We believe the proposed rates for our attorneys' fees are reasonable and appropriate, and are consistent with our objective of maintaining our excellent relationship with the City. JSS:njj Enclosure c: \file\hopcivil \memo.jss JSS, JAM and WC 2 • • PROPOSED BUDGET VESELY, MILLER & STEINER, P.A. CITY OF HOPKINS PROSECUTION AND CIVIL LEGAL MATTERS TIME PERIOD COVERED: JANUARY 1, 1999 - DECEMBER 31,1999 1. Prosecution Services (750 hours at $77.50 per hour) 2. Civil Legal Services (500 hours at $90.00 per hour) 3. Legal Assistant (civil and criminal) (400 hours at $40.00 per hour) 4. Civil and Prosecution Expenses (Based on actual expenses for first ten months of 1998. Includes subscriptions and memberships) $58,125.00 45,000.00 16 000.00 $119,125.00 4.605.00 • Total 1999 Budget: $123,730.00 c: \file\misc \budget.hop