2001-11-26o
o
AGENDA
MOUND CITY COUNCIL
November 26, 2001
7:00 P.M.
Call Meeting to Order & Opening Comments - Mayor Pat Meisel
j~Additional Information
· November 9, 2001 Use Report from LMCC - Updated,
c//3. 2002 Salaries Budgets by Department - Confidential ~"
~JC. Fire Department Revised Budget
Council Discussion
A. General Fund Budgets
B. General Fund Balance
C. Property Tax Levy
D. Other Funds
1. Area Fire Service Fund
2. Liquor Store Fund
3. Recycling Fund
4. Water Fund
5. Sewer Fund
6. Docks Fund
7. Other Funds - Cemetery, Etc.
Final Discussion
Closing Comments - Mayor Pat Meisel
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Enclosed ~e ~e matefi~s for ~scussion for the 2002 Budget Workshop sched~e~ for~
7:00 p.m., Tues~y, September 4, 2001. ~e Finite Tern (Gino ~d myselO h~
created ~ agen~ ~at will be the b~is for moving systematically t~ough ~e material
~d t~ng yo~ questions. In order m be be~er prepped, however, we ~e ~g ~at
you e-m~l yo~ specific questions to me in advice. By doing so, we c~ ~en ~e
Depment Heads ~d gather ~e dam in advice, allo~g us to be~r ~swer yo~
questions ~d satis~ yo~ concerns. Plebe e-m~l, or o~e~se get m me, que~ions by
10:00 a.m., Tuesday, September 4. E-m~l address: k~dish~son~sn.com. Tha~s[
Mayor and Council, please be confident that, as the City Manager and the Finance
Director for the City of Mound, this Finance Team is committed to responsible and
ethical budgeting and spending. Be assured that we are sensitive to your priorities and to
the politics and your earlier directive being to keep increases to proximately 8-10%.
Please be advised that it is our responsibility to stay abreast of the short-term and long-
term needs of the City, and that our recommendations represent a very hands-on level of
awareness. You are encouraged to put your trust in the professionals that you have hired
to play this role.
It is the goal of the Finance Team, through some generalized discussion to, at least,
preliminarily, close in on the 2002 Budget at this meeting. Please note that, unless
considered essential, almost all capital and personnel requests have been denied. Lines fi~
the operating budget have been pared to a bare minimum, based on 2000 and year-to-date
operations. The lines have all been reexamined repeatedly and adjusted by both the
Department Heads and the Finance Team. No stone has gone unturned in looking for
places to cut and places to augment revenues.
Whereas we are presenting a budget with levy increase of 18-19% and a fund balance of
15%, we do realize we were asked to stay within 10% of the levy limit and to have a 30-
printed on recycled paper
35% fund balance. Hopefully, through ingenuity, we will resolve these differences
before the final adoption process in December.
Capital Purchases
Department Heads were required to cut to the quick in the first budget go round. Each
wa~ ~ked to eliminate all but the "mu~t have" purehase~. That reflected for capital
purchases is the bare essentials. What is reflected 'does not, in any way, meet the needs of
the departments. The limits on spending set by the State and the requirement for a
healthy fund balance preclude the implementation of an annual capital-spending plan.
Not having fleet rotation and equipment rotation plans sets the stage for continued
deterioration and more pent up demands on this and future budgets.
Personnel
In spite of the growing demands on staff, only two additional full-time staff persons
remain in this budget. First is the administrative assistant to back up public works and
parks and docks. The second is the proposal for a full-time Fire Chief. See the attached
memos describing the needs.
Walls~ Streets and Utilities
The normal life of walls, streets and underground utilities have, in most cases, exceeded
their normal life cycle. Most were installed 20 or more years ago. Commitment to the
annual seal cost project has lengthened the lives of the surfaces, but an ongoing plan for
their replacement is vital to the physical maintenance of the community.
Jim Prosser continues to remind me of the need for Mound to implement an annual
revolving infrastructure replacement program. This would provide for the incremental
replacement streets and the associated walls and utilities on a cyclical basis.
Reconstruction, to which it is referred, is normally and customarily charged in large part
to the benefiting property owner. Cities share in that process by funding the cost of such
things as street and utility over-sizing, intersections and public enhancements that benefit
the whole community. An annual project such as this also enables property owners to fix
up dilapidated walls and drives located on their private property, thus improving the
appearance of whole neighborhoods.
With the Mound budget in its current condition, an assessment project as described is the
only means to restore and maintain the walls, streets and water and sewer utilities. The
inventory taken this year will enable such a revolving project, which could be kicked off
starting in 2002. Funding of the project would be through assessment bonds.
Fire Department Improvements
A walk through the halls and spaces of City Hall shows the evidence of years of deferred
maintenance. The building fails to meet ADA accessibility requirements. It has serious
problems in connection to settling, heating and cooling, and air exchange. It has exterior
maintenance requirements. Efforts to reorganize the workspaces based on the job duties
and functions have resulted in roadblocks due to inefficient layouts and lack of space
availability.
The Fire Department just recently described similar concerns regarding the Fire Station.
It is my suggestion that to put an end to the physical decay of this City Hall building, that
its improvements be wrapped into a potential bond issue for a Fire Station or Public
Safety building. Doing so will finance these very necessary improvements without
funding them in the annual operating budget. 'Additionally, the general levy is not limited
by bonded debt, and so will not eat up dollars needed for operations or capital pumhases.
Parks
Mound finances, in their current state, do not present an optimistic future for Mound
parks. We have 27 parks that are undeveloped and underutilized. With redevelopment,
Mound will have needs that go well beyond today's needs if we are to maintain our new
downtown. Those include: maintenance of the greenway; maintenance of the trails,
including the Village at Cooks Bay; maintenance of holding ponds. This will require:
mowers, snow removal equipment, front end loaders, storage space and people power,
just to scratch the surface. These are the indirect costs of redevelopment, which the City
cannot ignore.
Irmovativeness is the only answer to not only improving and maintaining what we have
and what is to come. Innovativeness is essential to staying out in front of the needs, as
redevelopment occurs. One of the innovative ways cities may fund parks is through
charitable gambling proceeds, Although not viewed popularly by our neighboring
community, the 10% contribution requirement allowed by the State can be an answer to
funding some basic needs for cities. See attachment.
Thank you for your consideration of these comments. Thanks also for your advance
questions. We welcome your discussion.
Sincerely,
Kandis Hanson
City Manager