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HomeMy WebLinkAbout20080915 - VIII-C-3VIII-C-3 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Char Stark, Finance Director Julie Flaten, Assistant Finance Director Dave Osberg, City Administrator DATE: September 11, 2008 SUBJECT: 2009 Proposed Budget RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action approving the enclosed Resolutions which will include: a.) Setting the preliminary Tax Levy b.) Adopting the Preliminary 2009 Budget c.) Adopting the 2009 HRA Budget and Levy d.) Setting the Public Hearing on the proposed Tax Levy and Budget for December 1, 2008. BACKGROUND The Finance Committee most recently conducted a meeting on Thursday September 4, 2008 and is recommending that the City Council adopt the enclosed Resolution setting the preliminary 2009 tax levy, which will result in a stable (no change) in the proposed tax rate for 2009. While the actual amount of tax collected by the City is projected at approximately $304,000, the actual tax rate will remain stable, should the City Council choose to adopt the attached Resolutions regarding the proposed 2009 Budget. The City Council will recall that once the preliminary levy is set on Monday September 15, 2008, there can be no increase in the levy amount as part of the final adoption in 2009; only a reduction maybe considered. The Finance Committee is recommending the City Council conduct a public hearing on December 1, 2008, similar to previous years', despite the fact the total tax levy amount is at a level that technically does not require conducting a public hearing. a.) 2009 Net Tax Capacity Rate compared against 2008 b.) 2009 Proposed Capital Outlay Budget by Department c.) 2009 Proposed Equipment Revolving Fund and Inter-fund transfers d.) Proposed Power Point presentation for the September 15 City Council meeting. Other items of note in the proposed budget include the following: 1.) The Request Partners program is being eliminated due to low usage. 2.) Minor improvements at the Fire Station, such as carpet and wall paper replacement. 3.) The Police Department evidence room is being improved. 4.) Allocation of funds to improve the lighting in the Community Room at the City Hall. 5.) An allocation of $6,500 is included to allow for improvements at the Roadside Park tennis courts, along with an allocation of funding for a long term improvement plan of the tennis courts at Roadside Park, in the amount of $15,000. 6.) Staffing is eliminated at the warming house at the Kennedy site, resulting in the closing of the warming house. 7) 2°d of three years of the market rate compensation adjustment is included, along with the necessary funds for an annual adjustment in the compensation schedule. 8.) Continuation of the Finance Department internship program 9.) $19,000 is included in the budget to allow for consulting work to assist with a future well site, along with $47,000 for a study to consider implementation of a storm water utility charge. 10.) A 10% increase in the TRAC fares 1 l.) An allocation to allow for consideration of adjusting the annual compensation for the Mayor and City Council positions. 12.) A set aside amount of $31,500 to start an account for possible future expenses related to the Highway #61 Bridge project. Staff would like to express appreciation to Finance Committee members Danna Elling Schultz (Chair), Tony Alongi and Mike Slavik for their time and commitment throughout the last several months assisting with the preparation of the proposed 2009 Budget. ~~~ ~~ Char Stark J e Flaten Finance Director Assistant Finance Director ~ ~ .~. ~ ti ~ ti ti o ti CO 00 M r p J 00 O 1` O r ~ rn ti O ti O ~y ~ O~ O C7 eF O G1 r N M ~ J r r .~. 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O L{) M O o L d O r N .~ d7 r 07 r r N ... 07 C7 r r I~ O f O O O d' ~G O N ''"~ ~ t~ N~ ti n o ~ M ti ~ ~ p 'C O N M dM' ~ 000 ~ Or0 ~ O~ ~ N 7 00 ~' ~ M M N t0 ~ M O m O r O ~ r r O 07 N r r r r .-. ~ ~ W N ~ Q a i i ~ Q ~ O C ~ ~ ~ U ~ W ~ ~ ~ ~ O O N U ~ ~ ~ o ~ ~ ~ ~ U N ~ O N (a .~ Q - U > U }r O f6 Q ~ C ~ _ N ~ ~ W ~ ~ ~ T i ~ ~ O O y_ ~ ~ ~ o U O p O L ~ Y ~ U c~a n ~ ~ V _~ ~ ~ ~4+ ~ V (~ O to ~ ~ ~ ~ N ~ f6 ~ ~ ~... ~ U Q LL O U ~ ~ .~ O ~ Q U V ~ L Qom U ~ E n. ~ ~ ca a n. > .. ~ v ~ c~ ~ ~ ~ x _ °~ ca ~ ~ ~ x ° ' F- U ~ ~ c~ f- Z U °-' ~a x ~ ~ U ~ ~ x x ~ x CITY OF HASTINGS CAPITAL OUTLAY REQUESTS 2009 BUDGET Proposed Department Capital Item Purpose Fund Source Amount ~ Total City Clerk _ IT Virtualized 2 server machines with 4 - 6 servers 68,000 Rotation of PC's 48,6SS Finance Department Scanner-check conversion Convert check deposits to an electronic ACH 7,099 efficiency and cash collections 123,754 Maint.-City Hall Furniture replacement Contingency for other depts 1,000 Community Room lighting 4,000 Basement fixtures 6,000 New entry mats in CH lobby 3,000 Steelcase moveable wall system/AFD office 6,000 City hall roof 60,000 80,000 Maint: Fire Carpet replacement in offices 8,000 Wallpaper replacement in hallways 4,000 Two chairs 1,000 13,000 Maint-Police Evidence processing room for patrol staff 2,500 PD stack repair/replacement ERF S6,S00 59,000 Planning Building Inspections Police 2 squad cars Equipment Cert's 56,000 800 MHz radios for reservists 10,200 66,200 Streets Replace 1996 single axel dump truck Equipment Cert's 146,500 Replace 1999 Chevy 1/2 ton pick up Equipment Cert's 28,500 1/3 cost of Flusher Tmck purchased by Parks Equipment Cert's 47,500 222,500 Engineering Total General Fund Cable Tv's for council chambers city council meetings cable fund balance 4,900 4,900 Fire Fire Hose and Fittings 3,000 2 CO pulse oxygen 9,000 Posi-check SWCBA flow tester 13,000 Backboard replacement 2,200 Pagers 2,500 Total Fire and Ambulance 29,700 Heritage Preservation Artifacts offset by reduction in other exp 400 Art offset by reduction in other exp S00 900 CITY OF HASTINGS CAPITAL OUTLAY REQUESTS 2009 BUDGET Proposed Department Capital Item Purpose Fund Source Amount ~ Total Parks Operations Tennis Court Repairs 6,500 Trail Maintenance 29,000 Pea rock replacement 10,000 I/3 Flusher Truck Equipment Cert's 47,500 Total Parks 93,000 Arena Replace 15 doors/frames and hardware Fund balance 38,000 Total Arena 38,000 Pool Plaster/re-do lanes 100,000 ERF transfe 200,000 Total Pool 200,000 Parks Capital Repair/replace irrigation at Vet's Park 13,500 1/2 basketball court @ Eagle Bluff use ward funds 6,000 Trail connection @ Sunny Acres for handicapped access use ward funds 4,000 Total Parks Capital Fund 23,500 Economic Dev Leduc Mansion Water Painting of water tank Total Water Fund Wastewater 1/3 of Flushertruckpurchased by Parks Replace East Hastings lift station Total Wastewater Hydro Total Capital Outlay Requests HRA Vermillion Street set aside HRA properties downtown set aside Total HRA Proposed Funding Sources: Equipment Certificates ERF Transfer Cable fund balance Parks Arena Water revenues Wastewater revenues Hydro revenues SAC reserves Levy Requirement Revenues 300,000 300,000 Revenues 47,500 Revenues 200,000 247,500 1,501,954 HRA Capital Fund 300,000 175,000 475,000 326,000 241,500 4,900 10,000 38,000 300,000 47,500 200,000 334,054 Total Funding Sources 1,501,954 Equipment Revolving Fund & Inter-fund Transfers 2009 Budget Estimated Estimated Balance 2009 Transfer 2009 Transfer Balance Estimated Department Purpose 12/31/2008 In at 0°/ Out 12/31/2009 Needs When Capital SW Dump Site Environmental Cash Elections 2010 equipment Finance Software Planning Computer Phone System Police Operations Metro Radio System/Contingency Animal Control Critical Incident Engineering Future Equipment Streets Fire/Ambulance Radio/Ladder Truck Building Inspections Future Equipment-Lease Payoff Building Maintenance Balances Dome City Hall roof 09 Exterior brick 11 Stack Fence 08 HVAC Parks Future Equipment Vets Parking Lot Trail additions-Ind. Park Levee Redevelopment Tennis Courts Pool Future Equipment Pool Lanes-move back one year Arena Hwy 61 bridge Total ERF Transfers Other Transfers Water/Wastewater to General Fund Transfer to fund Compensated Absences Transfer to fund Retiree health Transfer from Agency fund to Leduc Transfer from ERF to Other Governmental Funds Total other Transfers Total All Transfers 161,160 161,160 58,667 58,667 23,126 86,558 5,000 91,558 106,500 2010 3,517 2,500 6,017 17,827 17,200 35,027 51,600 2010 3,893 5,000 8,893 676 676 66, 379 66, 379 69,939 15,000 84,939 378,870 300,000 678,870 1,000,000 2010 23,254 (3,834) 19,420 3,834 2009 34,850 (25,000) 9,850 75,000 20,000 95,000 800,000 40,000 20,000 (60,000) - 60,000 2009 90,000 30,000 120,000 300,500 2011 31,500 25,000 (56,500) - 56,500 2009 15,000 15,000 30,000 75,000 2012 23,700 23,700 20,000 17,500 37,500 80,000 2011 50,000 30,000 80,000 150,000 2010 50,000 25,000 75,000 200,000 2011 - 15,000 15,000 175,000 ? 31,574 15,000 46,574 100,000 (100,000) - 200,000 2009 17,988 5,000 22,988 - 31,500 31,500 ? 2010 1,473,477 593,700 (245,334) 1,798,718 3 258 934 3,456 - 25,000 - 50,000 - 80,000 - 245,334 - 403,790 - 997,490 (245,334) As of 9/05/08 CITY OF HASTINGS RESOLUTION # RESOLUTION ADOPTING A PROPOSED YEAR 2009 CITY BUDGET WHEREAS, the Finance Committee of the City Council has met with individual departments and division directors to discuss the proposed 2009 budget requests. The committee has also met to discuss and approve a preliminary year 2009 City budget and preliminary tax levy; and WHEREAS, provisions of the Minnesota Truth and Taxation Law require Cities to certify a Proposed Property Tax Levy and City Budget to the County Auditor by September 15, 2008; and NOW, THEREFORE BE IT RESOLVED, that the preliminary 2009 City's budget for the City of Hastings is hereby set at: $ 26,443,651. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, THIS 15th DAY OF SEPTEMBER, 2008. Ayes: Nays: Paul Hicks, Mayor ATTEST: Melanie Mesko Lee, Assistant City Administrator/City Clerk CITY OF HASTINGS RESOLUTION # RESOLUTION ADOPTING THE PROPOSED 2009 CITY PROPERTY TAX LEVY WHEREAS, the Finance Committee has met to discuss a proposed 2009 City Levy; and WHEREAS, provisions of the Minnesota Truth and Taxation Law require Cities to certify a proposed Property Tax Levy to the County Auditor by September 15, 2008 for the 2009 budget and levy year; and WHEREAS, the Finance Committee of the City Council has directed staff to prepare this resolution resulting in a 2009 Proposed Property Tax Levy; and, NOW, THEREFORE BE IT RESOLVED, that the proposed Property Tax Levy of the City of Hastings, for the 2009 City Budget to be certified is hereby adopted as follows: Proposed "General "Levy Proposed Debt Levy Total Proposed Tax Levy Proposed Levv $ 8, 895, 000 2.689.000 11,584,000 '` Amount Certified to the State of Minnesota and to Dakota and Washington County Auditors. This is the amounf the Counties will use for the calculations of the Truth in Taxation notices mailed to property owners in mid November -December 2008. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, THIS 15th DAY OF SEPTEMBER, 2008. Ayes: Nays: Absent: Paul Hicks, Mayor ATTEST: Melanie Mesko Lee, Assistant City Administrator/City Clerk CITY OF HASTINGS RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS APPROVING A PROPOSED 2009 HRA SPECIAL TAX LEVY WHEREAS, the Housing and Redevelopment Authority in and for the City of Hastings adopted Resolution 2-2007. This Resolution authorizes the Levy of a Special Benefit Tax pursuant to Minnesota Statutes 469.033 Subdivision 6; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Hastings (the "Authority") was created by the City Municipal Housing and Redevelopment Act, Minnesata Statutes. Section 469.001 to 469.047 (formerly, Section 462.411 to 462.711) ("the Act"); and WHEREAS, Section 469.033, Subdivision 6, of the Act permits the Authority to levy and collect a special benefit tax of up to .0144 percent of taxable market value in the City upon ail taxable property, real and personal, within the City; and WHEREAS, the Authority desires to levy such tax based upon the limit of .0144 % of the taxable market value, and WHEREAS, the levy of such a special benefit tax is subject to consent by Resolution of the City Council of the City of Hastings. NOW, THEREFORE BE IT RESOLVED, by the Hastings City Council that the City of Hastings HRA Special Levy be granted, subjected to the limit of .0144 percent of taxable market value as per Minnesota Statue. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS THIS 15th DAY OF SEPTEMBER, 2008. Ayes: Nays: Paul Hicks, Mayor ATTEST: Melanie Mesko Lee, Assistant City Administrator/City Clerk CITY OF HASTINGS RESOLUTION # RESOLUTION SELECTING DATES FOR THE YEAR 2009 CITY BUDGET AND TAX LEVY TRUTH IN TAXATION PUBLIC HEARING WHEREAS, the City Finance Committee members of the City Council and individual departments have met and reviewed the proposed budget for 2009, and WHEREAS, provisions of the Minnesota Truth and Taxation Law require Cities to select dates (that do not conflict with County, School or Special Taxing Districts public hearing dates) for a public hearing to receive public comment on the proposed 2009 City Budget and Tax Levy; NOW, THEREFORE BE IT RESOLVED, that the Hastings City Council will conduct a public hearing on the proposed 2009 City Budget and Tax Levy at 7:00 p.m. on Monday, December 1, 2008 in the Council Chambers of the Hastings City Hall; and BE IT FURTHER RESOLVED, that should a continuation public hearing on the proposed 2009 City Budget and 2009 Tax Levy need to be conducted, it shall be held at 7:00 p.m. on Monday, December 15, 2008 in the Council Chambers of the Hastings City Hall. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS THIS 15th DAY OF SEPTEMBER, 2008. Ayes: Nays: Paul Hicks, Mayor ATTEST: Melanie Mesko Lee, Assistant City Administrator/City Clerk