The URL can be used to link to this page

Memo- 2012 BudgetCITY OF HOPKINS MEMORANDUM Date: August 18, 2011 To: Mayor & City Council From: Christine Harkess, Finance Director Subject: 2012 Budget General Fund Budget FINANCE DEPARTMENT The General Fund budget has been modified further to reduce the increase down to 2.14% from 3.26%. This was done by taking another look at personnel costs and making adjustments for wage increases and taking into account two personnel who are currently serving in the military and are not due back until late next year. I also added to the contingency as a cushion against contract negotiations. The adjustments to the expenditure budget translate into a tax levy increase of 2.07%, down from 2.3% at the last review. We still do not have the specifics on how this will impact specific properties. In addition you addressed furloughs at the last work session and asked what the budget savings would be if we implemented a furlough. Shown below are specific savings under various scenarios 1 day furlough — assuming no vacation days are used General Fund Savings —NOT including Police and Fire $12,270 General Fund Savings if all GF employees gave up one day $25,195 Savings if ALL employees gave up one day's pay $31,315 Capital Improvements and Franchise Fees In this packet is information on the capital improvements scheduled for the next 5 years as defined in the CIP and the related revenue sources. Bonding is a significant source of revenue for the PIR fund and a capital levy is the revenue source for the CIP fund. Any franchise fees that are above what is currently collected will off set bonding and in turn reduce the related debt levy. I have put together two additional franchise fee increase scenarios for your consideration. 08/16/2011 CITY OF HOPKINS ANALYSIS OF GENERAL FUND EXPENDITURE BUDGET Inspections Increase Building Code Inspections 252,170 268,598 16,428 193,879 (Decrease) Fire Inspections 38,205 Materials (3,711) 34,193 2011 2012 from % 958 Supplies Capital Intergovt'I Department Budget Budget 2011 Budget Incr/(Decr) Salaries & Services Outlay Chargeback's lCity Council 71,547 68,697 2,850 -3.98%1 26,497 42,200 3,102 Administrative Services 3,566 Vacant Property Management 2,700 2,700 - - 2,700 Administration 167,300 171,090 3,790 2.82% 214,465 22,625 (66,000) Personnel 43,924 44,405 481 56,990 3,415 (16,000) Wellness 2,000 2,000 - 2,000 Information Services 238,446 251,637 13,191 244,202 29,435 (22,000) Total Administrative Services 451,670 469,132 17,462 3.87%fl Finance Budget 23,066 26,249 3,183 37,205 3,044 (14,000) Debt Management - - - 12,408 1,670 (14,078) General Accounting 129,448 134,813 5,365 144,760 40,053 (50,000) Payroll 46,729 45,075 (1,654) 59,975 5,100 (20,000) TIF Administration - - - 12,408 2,495 (14,903) Utility Billing 4,000 5,000 1,000 92,823 25,478 (113,301) Total Finance 203,243 211,137 7,894 3.88% Le al 135,000 136,000 - 0.00%1 135,000 Munici al Building 294,818 296,863 2,045 0.69% 135,592 201,271 (40,000) Rece tionist 44,172 44,846 674 1.53% 44,067 779 lAssessing 167,236 173,091 5,855 3.50% 85,313 111,778 (24,000) City Clerk City Clerk 19,360 19,738 378 38,535 6,203 (25,000) Records Management 29,833 35,673 5,840 30,437 17,236 (12,000) Elections 50,222 62,275 12,053 32,779 29,496 Total City Clerk 99,415 117,686 18,271 18.38% Inspections Building Code Inspections 252,170 268,598 16,428 193,879 74,719 Fire Inspections 38,205 34,494 (3,711) 34,193 301 Heating & Plumbing Inspections 90,400 91,358 958 87,584 3,774 Housing Inspections 134,680 135,597 917 128,156 7,441 Restaurant & Hotel Inspections 23,309 22,974 (335) 2,890 20,084 Misc. Community Inspections 75,143 78,245 3,102 74,679 3,566 Vacant Property Management 2,700 2,700 - - 2,700 Total Inspections 616,607 633,966 17,359 2.82% 12,709 Police Police Administration 480,615 501,409 20,794 400,942 100,467 Patrol 2,360,705 2,490,044 129,339 2,231,485 258,559 Heat Team 73,298 69,951 (3,347) 49,694 20,257 Reserves 33,620 34,677 1,057 26,260 8,417 Investigations 499,148 388,267 (110,881) 312,339 75,928 Metro Drug Task Force 105,737 105,292 (445) 104,102 1,190 Pawn Shop 3,436 3,493 57 3,355 138 Outreach 80,804 84,036 3,232 71,327 12,709 Fire Fire Department 833,587 852,970 19,383 503,448 349,522 Emergency Preparedness 4,671 3,865 806 - 3,865 Total Fire 838,258 856,835 18,577 2.22°/a Public Works (Decrease) Materials PW Building 2011 2012 from % Supplies Capital Intergovt'I Department Budget Budget 2011 Budget Incr/(Decr) Salaries & Services Outlay Chargeback's Communications (Dispatch) 526,782 553,145 26,363 473,752 79,393 Support Services (Records) 255,560 252,709 (2,851) 244,481 8,228 Systems Management 64,682 65,182 500 65,182 Total Police 4,484,387 4 548 205 63,818 1.42% 119,918 Fire Fire Department 833,587 852,970 19,383 503,448 349,522 Emergency Preparedness 4,671 3,865 806 - 3,865 Total Fire 838,258 856,835 18,577 2.22°/a Public Works PW Building 33,692 32,739 (953) 35,845 Equipment Services 78,446 86,229 7,783 211,693 Administration 26,478 27,442 964 161,865 Engineering 137,802 132,267 (5,535) 167,943 Street & Alleys 853,812 858,632 4,820 360,438 Snow & Ice Removal 205,615 197,550 (8,065) 119,918 Parks 628,101 652,465 24,364 434,634 Tree Service 210,454 210,780 326 126,556 Total Public Works 2,174,400 2 198 104 23,704 1.09% Recreation Playground 20,198 21,034 836 21,034 Ice Rink 12,284 12,192 (92) 12,192 Park Service 12,518 12,810 292 12,810 Joint Recreation 147,000 152,000 5,000 Skate Park 7,721 7,063 658 4,816 Total Recreation 1199,721 205,099 5,378 2.69% Activity Center Act Ctr - Community Use 274,008 264,914 (9,094) 208,608 Act Ctr - Maintenance 59,463 58,851 612 17,934 Total Activity Center 333,471 323,765 9,706 -2.91% IPlanning & Zoning 126,182 126,837 1,655 1.32% 1 130,048 Tuition Reimbursement 10,200 10,200 - 0.00% lContinciency 50,000 100,000 50,000 100.00% 66,894 17,536 13,577 29,324 610,194 77,632 217,831 84,224 152,000 2,247 56,306 40,917 16,789 10,200 100,000 (70,000) (143,000) (148,000) (65,000) (112,000) (20,000) Total Expenditures 10,299,327 10 519,463 220,136 2.147/6 8,237,356 3,271,389 989,282 78.31% 31.10% Other Financing Uses Transfers Out Total Other Financing Uses 0.00% Budget version dated 8/4/2011 10,635,191 8,403,202 3,222,158 (990,169) Reduction to budget from 8/4 (115,728) 08/16/2011 CITY OF HOPKINS ANALYSIS OF GENERAL FUND REVENUE BUDGET Finance Increase (Decrease) Licenses Charges 5,750 2011 2012 from % Property Intergovt*l Permits Investment for Current Other Franchise Department Budget Budget 2011 Budget Incrl(Decr) Taxes Revenue & Fines Earning Services Revenues Fees Unallocated 4,800 Total Finance Property Taxes - levy 8,797,414 550 (8,797,414) - Property Taxes - delinq 45,000 45,000 - 45,000 Penalties 6,000 8,000 2,000 8,000 Miscellaneous 15,000 15,000 - 15,000 Fiscal Disparities (incl w/taxes) - - 380 Rent 2,500 PERA Aid 20,510 20,510 - 20,510 MVHC - unallotment (232,850) - 232,850 - Interest Earnings 75,000 25,000 (50,000) 25,000 Franchise Fees 290,000 290,000 - 290,000 Miscellaneous 500 - (500) 1,200 Total Unallocated 9,016,574 403,510 8,613,064 95.52% 1,200 Finance 400 Current Services 5,200 5,750 550 5,750 449 Miscellaneous 4,800 4,800 - 4,800 Total Finance 10,000 10,550 550 5.500/6 360 Le al - Court Fines 115,000 115,000 0.00% 115,000 Municipal Building 380 Rent 2,500 2,500 - 2,500 449 Other Miscellaneous - - Total Municipal Building 2,500 2,500 400 Assessin - Charges for Service 1,000 1,200 200 20.00% 1,200 City Clerk 312 Licenses 7,500 5,000 (2,500) 5,000 364 Administrative Citations 3,500 8,000 4,500 8,000 400 Charges for Service 11,100 - (11,100) - Total City Clerk 22,100 13,000 (9,100) 41.18% Inspections 318 Licenses and permits 255,100 274,100 19,000 274,100 Plan Check Fees 32,000 32,000 - 32,000 Charges for Service 39,450 39,950 500 39,950 Total Inspections 326,550 346,050 19,500 5.979/6 Police 330 Federal Grant - - - - 344 State Aid 177,700 177,000 (700) 177,000 345 State Grants 4,000 10,000 6,000 10,000 345 POST Reimbursement 10,000 9,000 (1,000) 9,000 911 Service Fee - IGR 24,860 24,860 24,860 County Grants - - - 313 Licenses 95,900 96,200 300 96,200 360 Court Fines 20,000 - (20,000) - Forfeitures - Penalties 2,500 2,500 2,500 400 Charges for Services 43,500 40,000 (3,500) 40,000 449 Other Miscellaneous - 500 500 500 440 Contributions 500 500 - 500 Total Police 378,960 360,560 (18,400 -4.86% Licenses Charges Property Intergovt'I Permits Investment for Current Other Franchise Taxes Revenue & Fines Earning Services Revenues Fees 3,500 70,000 9,415 125,000 1,000 70,000 2,750 4,000 26,000 15,000 8,500 10,700 2,000 800 1,500 68,000 436,370 514,715 25,000 245,150 23,300 290,000 Total Misc 313,300 1,602,535 2012 Revenue Shortfall - LEVY NEEDED( (8,916,928) 8,881,428 No levy limits for 2012 35,500 Special Levy - PERA 2011 Levy - inicudes special levies for GF 8,797,414 8,916,928 Total Estimated TAX LEVY 1,602,535 Non tax revenues 10,519,463 Total Revenues shortfall - Increase (Decrease) 2011 2012 from % Department Budget Budget 2011 Budget Incrl(Decr) Fire 318 Licenses 3,500 3,500 320 Permits 1,800 - (1,800) Federal Grant - - 344 State Aid 85,000 70,000 (15,000) County Grants - - Administrative Citations - - - 400 Current Service 6,200 70,000 63,800 Donations - Miscellaneous - - Total Fire 96,500 143,500 47,000 48.70% Public Works 329 Licenses & Permits 9,490 9,415 (75) 344 State Aid 120,000 125,000 5,000 384 Equipment Use Charge - - - 400 Charges for Service 2,250 2,750 500 449 Miscellaneous Revenue 2,100 4,000 1,900 450 Sale of Fixed Assets - - - Total Public Works 133,840 141,165 7,325 Activity Center 380 Rent 26,000 26,000 - 400 Charges for Services 15,000 15,000 404 Memberships 8,500 8,500 440 Contributions 10,700 10,700 445 Fundraising 2,000 2,000 449 Other Miscellaneous 800 800 Total Activity Center 63,000 63,000 Planning & Zoning 320 Permits 1,000 1,000 387 Variances 1,500 1,500 400 Charges for Service - Total Planning & Zoning 2,500 2,500 Use of 2009 Budget Reserves 130,803 - Total Revenues 10,299,327 1,602,535 (8,565,989) 83.17% Total Expenditures 10,299,327 10,519,463 220,136 2.14% Licenses Charges Property Intergovt'I Permits Investment for Current Other Franchise Taxes Revenue & Fines Earning Services Revenues Fees 3,500 70,000 9,415 125,000 1,000 70,000 2,750 4,000 26,000 15,000 8,500 10,700 2,000 800 1,500 68,000 436,370 514,715 25,000 245,150 23,300 290,000 Total Misc 313,300 1,602,535 2012 Revenue Shortfall - LEVY NEEDED( (8,916,928) 8,881,428 No levy limits for 2012 35,500 Special Levy - PERA 2011 Levy - inicudes special levies for GF 8,797,414 8,916,928 Total Estimated TAX LEVY 1,602,535 Non tax revenues 10,519,463 Total Revenues shortfall - CITY OF HOPKINS ANALYSIS OF TAX LEVY 08/16/2011 Incr from Purpose 2004 2005 2006 2007 2008 2009 2010 2011 2012 Est 2011 Subject to Levy Limits General Fund $ 6,654,321 $ 7,261,263 $ 7,164,263 $ 7,516,943 $ 7,825,565 $ 8,160,614 $ 8,384,010 $ 8,539,064 $ 8.881,428 (a) Capital Levy 25,000 25,000 50,000 75,000 100,000 100,000 125,000 Total Levy subject to Limits $ 6,654,321 $ 7,286,263 $ 7,189,263 $ 7,566,943 $ 7,900,565 $ 8,260,614 $ 8,384,010 $ 8,639,064 $ 9,006,428 4.25% 2012 no levy limits 2011 levy limit was 3.04 Special Levies: PERA Levy 11,815 11,815 11,815 11,815 11,815 35,500 35,500 35,500 35,500 MVHC Levy - for unallotment of 2008 & 2009 - - - - - - 239,175 - - levied back 60% 398,492 2008 & 2009 unallotment MVHC Levy - for unallotment of 2010 - - - 222,850 levied back 95.7% 232,850 2010 unallotment Subtotal - Special Levies Other 11,815 21,815 31,815 31,815 11,815 35,500 274,675 258,350 35,500 (b) Debt Levies: 1999D GO Perm Impr Revolving Bonds 26,000 26,000 26,000 26,000 26,000 26,000 - - - 2001 GO Refunding Bonds - Improv Rev 65,000 62,000 62,000 62,000 - - - 2001 GO Refunding Bonds - Park & Rec 210,000 190,000 180,000 175,000 150,000 130,000 108,000 - 2002B GO Improv Revolving Bonds 59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000 2002 HRA Revenue Bonds 678,000 240,550 650,000 650,000 - - - - - 2003 HRA Revenue Bonds - 234,450 240,000 235,000 230,000 225,000 200,000 200,000 220,000 2023 2007B GO Improv Revolving Bonds - - - 175,000 175,000 185,000 172,000 184,500 2017 2007A Capital Improvement Bonds 642,000 642,000 715,000 710,000 765,9002022 910,900 levy requirement 2010A GO Improvement Bonds - - - 100,000 77,000 5 145,000 less - Enterprise Fund Leases 20108 Refunding (20026 Improv Bds) - - - - 59,000 2013 765,900 Subtotal - Debt Levies 5.27 1,038,000 812,000 1,217,000 1,207,000 1,282,000 1,257,000 1,267,000 1,241,000 1,306,400 Total - Special Levies $1,049,815 $ 833,815 $1,248,815 $1,238,815 $ 1,293,815 $1,292,500 $ 1,541,675 $ 1,499,350 $ 1,341,900 -10.50 TOTAL LEVIES $ 7,704,136 $ 8,120,078 $ 8,438,078 $ 8,805,758 $ 9,194,380 $ 9,553,114 $ 9,925,685 $10,138,414 $ 10,348,328 2.07 Increase over prior year $ 535,884 $ 415,942 $ 318,000 $ 367,680 $ 388,622 $ 358,734 $ 372,571 $ 212,729 $ 209,914 Percentage Incr (Decr) - Total 7.48% 5.40% 3.92% 4.36% 4.41% 3.90% 3.90% 2.14% 2.07 Tax Capacity Rate (per HC rate cards) 56.664 48.944 48.262 45.8762 45.401 47.315 48.999 55.739 CAPITAL REQUIREMENTS - 2012 to 2016 Total CIP and PIR Expenses Total CIP & PIR Funding Sources Difference - Excess (Shortfall) in Funding Options for funding with Franchise Fees Version 1 Version 2 Version 3 1,465,050 1,225,000 744,000 750,000 1,641,000 5,825,050 1,925,000 125,000 2,025,000 125,000 525,000 4,725,000 459,950 (1,100,000) 1,281,000 (625,000) (1,116,000) (1,100,050) 327,755 327,755 327,755 327,755 327,755 1,638,775 5 -year 288,191 2012 2013 2014 2015 2016 Total Capital Improvement Fund 274,115 274,115 1,370,575 Projects Scheduled Activity Center HVAC 355,000 Arts Center carpeting - Stages area 15,050 Activity Center carpet 36,000 Activity Center - gym floor 105,000 Activity Center - Rasp room roof 80,000 Fire Dept - carpet & apparatus room floor 56,000 Police - carpeting 40,000 City Hall lobby upgrade 110,000 Total CIP Fund improvements 370,050 - 36,000 - 391,000 797,050 Current CIP Funding Source - Levy 125,000 125,000 125,000 125,000 125,000 625,000 Permanent Improv Revolving (PIR) does not include special assm projects PIR Tax Levy Projects Residential Street improvements 1,000,000 850,000 500,000 500,000 1,000,000 Citywide concrete alleys 35,000 13,000 RR Quiet Zone 30,000 225,000 2nd Avenue Berm Rehab 30,000 Mainstreet Traffic Signal Upgrade 50,000 50,000 50,000 50,000 Blake Road streetscape 100,000 Hwy 7 and 5th Ave N signal replacement 145,000 Co Rd 61 - Shady Oak Road 200,000 Parking Lot 200 200,000 Total PIR Fund improvements 1,095,000 1,225,000 708,000 750,000 1,250,000 5,028,000 Current PIR Funding Source - Levy Bonds only 1,800,000 1,900,000 400,000 4,100,000 Total CIP and PIR Expenses Total CIP & PIR Funding Sources Difference - Excess (Shortfall) in Funding Options for funding with Franchise Fees Version 1 Version 2 Version 3 1,465,050 1,225,000 744,000 750,000 1,641,000 5,825,050 1,925,000 125,000 2,025,000 125,000 525,000 4,725,000 459,950 (1,100,000) 1,281,000 (625,000) (1,116,000) (1,100,050) 327,755 327,755 327,755 327,755 327,755 1,638,775 288,191 288,191 288,191 288,191 288,191 1,440, 955 274,115 274,115 274,115 274,115 274,115 1,370,575 ANALYSIS OF REVENUES GENERATED FROM INCREASED RATE£ No of Estimated No of Estimated Current Propsd Customers Quarterly 2012 Amount to VERSION 1 Percentage Current Propsd Customers Quarterly 2012 Amount to Increase Percentage Dollar to CIP Xcel Enerav Rate Rate June 2011 Revenue Annual Gen Fund to CIP Incr Incr Annualized Residential 1.00 2.00 7,915 47,490.00 189,960.00 94,484.19 95,475.81 100.00% 1.00 12.00 Small C & I Non Demand 2.00 4.00 730 8,760.00 35,040.00 16,910.11 18,129.89 100.00% 2.00 24.00 Small C & I Demand 9.00 18.00 328 17,712.00 70,848.00 34,643.40 36,204.60 100.00% 9.00 108.00 Large C & 1 63.00 126.00 62 23,436.00 93,744.00 42,556.50 51,187.50 100.00% 63.00 756.00 9,035 97,398.00 389,592.00 188,594.20 200,997.80 No of Estimated Customers Quarterly 2012 Amount to Increase Current Propsd Customers Quarterly 2012 Amount to Increase Gen Fund to CIP Centerpoint Energy Rate Rate June 2011 Revenue Annual Gen Fund to CIP 53,404.60 56,707.40 100.00% Residential/Commercial A 1.00 2.00 4,588 27,528.00 110,112.00 53,404.60 56,707.40 100.00% 1.00 12.00 Commercial B 3.00 6.00 232 4,176.00 16,704.00 6,936.00 9,768.00 100.00% 3.00 36.00 Commercial/Industrial C 9.00 18.00 325 17,550.00 70,200.00 27,459.00 42,741.00 100.00% 9.00 108.00 Small Dual Fuel A 18.00 36.00 31 3,348.00 13,392.00 4,356.00 9,036.00 100.00% 18.00 216.00 Small Dual Fuel B 63.00 126.00 10 3,780.00 15,120.00 6,615.00 8,505.00 100.00% 63.00 756.00 Large Volume Dual Fuel 63.00 126.00 5,186 52,419.00 209,676.00 100.00% 63.00 756.00 Totals 5,186 56,382.00 225,528.00 98,770.60 126,757.40 287,364.80 288,191.20 use for capital expenditures Totals 615,120.00 287,364.80 1 327,755.20 use for capital expenditures VERSION 2 No of Estimated Current Propsd Customers Quarterly 2012 Amount to Increase Percentage Dollar Xcel Energy Rate Rate June 2011 Revenue Annual Gen Fund to CIP Incr Incr Annualized Residential 1.00 2.00 7,915 47,490.00 189,960.00 94,484.19 95,475.81 100.00% 1.00 12.00 Small C & I Non Demand 2.00 4.00 730 8,760.00 35,040.00 16,910.11 18,129.89 100.00% 2.00 24.00 Small C & I Demand 9.00 15.00 328 14,760.00 59,040.00 34,643.40 24,396.60 66.67% 6.00 72.00 Large C & 1 63.00 110.00 62 20,460.00 81,840.00 42,556.50 39,283.50 74.60% 47.00 564.00 9,035 91,470.00 365,880.00 188,594.20 177,285.80 No of Estimated Current Propsd Customers Quarterly 2012 Amount to Increase Centerpoint Energy Rae Rate June 2011 Revenue Annual Gen Fund to CIP Residential/Commercial A 1.00 2.00 4,588 27,528.00 110,112.00 53,404.60 56,707.40 100.00% 1.00 12.00 Commercial B 3.00 6.00 232 4,176.00 16,704.00 6,936.00 9,768.00 100.00% 3.00 36.00 Commercial/Industrial C 9.00 15.00 325 14,625.00 58,500.00 27,459.00 31,041.00 66.67% 6.00 72.00 Small Dual Fuel A 18.00 30.00 31 2,790.00 11,160.00 4,356.00 6,804.00 66.67% 12.00 144.00 Small Dual Fuel B 63.00 110.00 10 3,300.00 13,200.00 6,615.00 6,585.00 74.60% 47.00 564.00 Large Volume Dual Fuel 63.00 110.00 74.60% 47.00 564.00 5,186 52,419.00 209,676.00 98,770.60 110,905.40 Totals 575,556.00 287,364.80 288,191.20 use for capital expenditures No of Estimated VERSION 3 Current Propsd Customers Quarterly 2012 Amount to Increase Percentage Dollar Xcel Enerav Rate Rate June 2011 Revenue Annual Gen Fund to CIP Incr Incr Annualized Residential 1.00 2.00 7,915 47,490.00 189,960.00 94,484.19 95,475.81 100.00% 1.00 12.00 Small C & I Non Demand 2.00 4.00 730 8,760.00 35,040.00 16,910.11 18,129.89 100.00% 2.00 24.00 Small C & I Demand 9.00 15.00 328 14,760.00 59,040.00 34,643.40 24,396.60 66.67% 6.00 72.00 Large C & 1 63.00 95.00 62 17,670.00 70,680.00 42,556.50 28,123.50 50.79% 32.00 384.00 9,035 88,680.00 354,720.00 188,594.20 166,125.80 No of Estimated Current Propsd Customers Quarterly 2012 Amount to Increase Centerpoint Energy Rate Rate June 2011 Revenue Annual Gen Fund to CIP Residential/Commercial A 1.00 2.00 4,588 27,528.00 110,112.00 53,404.60 56,707.40 100.00% 1.00 12.00 Commercial B 3.00 6.00 232 4,176.00 16,704.00 6,936.00 9,768.00 100.00% 3.00 36.00 Commercial/Industrial C 9.00 15.00 325 14,625.00 58,500.00 27,459.00 31,041.00 66.67% 6.00 72.00 Small Dual Fuel A 18.00 27.00 31 2,511.00 10,044.00 4,356.00 5,688.00 50.00% 9.00 108.00 Small Dual Fuel B 63.00 95.00 10 2,850.00 11,400.00 6,615.00 4,785.00 50.79% 32.00 384.00 Large Volume Dual Fuel 63.00 95.00 - 50.79% 32.00 384.00 5,186 51,690.00 206,760.00 98,770.60 107,989.40 Totals 561,480.00 287,364.80 274,115.20 use for capital expenditures