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Home My WebLink About[03] 2020 Preliminary Budget Council Agenda Item 3 MEETING DATE: September 23, 2019 AGENDA ITEM: 2020 Preliminary Budget SUBMITTED BY: Administration/Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The EDA and Fire Board submitted their budget proposals and are included in the preliminary city budget. PREVIOUS COUNCIL ACTION: Councilmembers were given the opportunity to discuss their budget priorities at each meeting since June. Updates were added to the agenda as recommendations were received. Council also reviewed the debt management study provided by Northland Securities in August. Council reviewed park projects, staffing, membership dues and capital plans. Council hired Flaherty and Hood to conduct a pay/organizational study in July 2018. th BACKGROUND INFORMATION: The draft budget presented to the Council on September 5 included all the requests discussed by council. The draft 2020 levy represented was $2,928,835 resulting in an estimated tax rate of 67.6%. A couple items were reduced to match current proposed estimates. The 2019 street improvement bonds debt levy was reduced $45,600 to $75,000 due to additional prepaid assessments since the bonds were issued. The Community Service Officer (CSO) was changed from grade 6 to grade 4 based on additional information regarding the position was received. This position still needs a formal job description before a new hire is made. The grade reduction results in a budget savings of $7,315. The raft levy estimate below is the current values with the reductions to the 2019A bonds debt levy and CSO grade classification. General Levy $1,989,010 Debt Levy $886,910 Total Levy $2,875,920 Estimated Tax Rate 66.4% To reiterate previous budget discussions, the following items impacted the 2020 budget: Staffing: CSO full time $61,600 (plus $30k in non-wage/benefits) Recreation Director (+ program staffing) $82,000 (plus $13,500 non-wage/benefits) Maintenance Worker $76,000 (plus $3,500 non-wage/benefits) Planning Intern $4,845 (plus $500 non-wage/benefits) Estimates included for implementation of Organizational/Pay study & Personnel Policy Estimates included for LELS/AFSCME contracts Estimates for insurance rates Operations: Professional services: based on historical costs, anticipated projects and notification of fee increases, the professional services budget increased. Membership dues/Community Support presented in budget binders Capital Equipment Plan: Capital purchases (includes issuing an Equipment Certificate): Admin Police Public Works Fire EDA Park Board Handguns/ Turnout Business Monument Computers Leathers Seal Coat Gear Development Park Repairs Election Squad lease Extrication Millstream Equipment buyout 1575 Tractor Equipment Floor Coating Mobile East Park Sedan Laptops Fuel Tank Air Packs Development Welcome Surveillance Ladder 2 Signs Cameras Garage Bids Pickup Street Sweeper Dredge Pond Trail Maint. Plan OAA Pavement Mgmt Plan Capital Improvement Plan: Capital improvements for 2020 have been proposed by the Engineer and prioritized by both the Engineer and Public Works Director. The following projects have been included in the 2020 budget. If council agrees to the street improvements, the council should consider commissioning feasibility studies this fall to be ready to bid earlier in 2020. ~ 2020 street overlays/includes crack sealing in OAA ~ Minnesota St. streetscaping repairs th ~ 18 Ave improvements/intersection repairs th ~ 20 Ave SE improvements to Dale St. ~ Alley improvements ~ Millstream/Memorial Parks parking lots st ~ CIPP sewer main improvements – 1 Ave NE As a reminder, completing the CIP projects and 2020 Equipment Certificates will not directly impact the 2020 levy as the projects/equipment funded with these funding sources are bonded with the first payment in 2021. th The preliminary levy must be set by September 30. The final levy can be reduced after negotiations and personnel policies are reviewed in the fall. BUDGET/FISCAL IMPACT: see above ATTACHMENTS: Request for Council Action– 2020 Preliminary General Budget/Levy REQUESTED COUNCIL ACTION: Discuss draft levy and consider adopting resolution setting the preliminary levy.