HomeMy WebLinkAbout20090316 - VIII-C-2MEMORANDUM
TO: Honorable Mayor and City Councilmembers
FROM: Dave Osberg, City Administrator
DATE: March 12, 2009
SUBJECT: Resolution-2009 Budget Amendments
RECOMMENDED CITY COUNCIL ACTION
It is the recommendation of the Finance Committee and City Staff that the full City Council take action
approving the enclosed "Resolution of the City Council of the City of Hastings Identifying Items Intended
for Amendments to the 2009 Budget Due to Reductions in Aid from the State of Minnesota."
BACKGROUND
Finance Committee members Danna Elling Schultz (Chair), Tony Alongi and Mike Slavik conducted a
meeting on Monday March 2 and discussed possible reductions in the 2009 City Budget, as a result of the
pending reductions in Local Government Aid and Market Value Homestead Credit from the State of
Minnesota. The City is projected to receive $549,692 in Market Value Homestead Credit (MVHC) and
$361,324 in Local Government Aid (LGA), for a total of $911,016 in 2009. On January 27, 2009
Governor Pawlenty outlined a budget, that if implemented would result in the City of Hastings losing
approximately $603,000 in State Aid; a combination of MVHC and LGA. Until such time as the State
Legislature and the Governor pass and sign a final bill, the final amount of State Aid reductions to the
City of Hastings is unknown.
The Finance Committee is recommending that items be identified for possible amendments to the 2009
Budget later this year, once the final legislation is adopted which will identify reductions in State Aid to
the City of Hastings. The Resolution identifies items that will be considered for final budget amendment,
with an understanding that until action is taken later this year, spending items identified will be frozen and
any consideration to expend these items prior to final budget amendments will require discussion by the
Finance Committee and approval by the City Council.
Prior to the end of the year, the City Council will be asked to complete action that would result in the
"calling" of the Hydro Electric Plant Bonds. That action, combined with a delay of two years in the de-
watering of the Hydro Plant would allow for a transfer of $125,000 from the Hydro Plant Fund to the
General Fund, to assist with the "balancing" of the budget.
Since the Finance Committee meeting on March 2, Park and Recreation Director Barry Bernstein and I
have communicated and would recommend a slight change in the proposal from the Finance Committee
discussion, resulting in the inclusion of the $6,500 tennis court repair, and eliminate in its entirety the full
$10,000 al ation for pea rock replacement. Should that prove to be acceptable to the full City Council
the Res u 'on would be modified accordingly.
i
David M. Osberg
City Administr~.tc
Resolution #
Resolution of the City Council of the City of Hastings
Identifying Items Intended for
Amendments to the 2009 Budget
Due to Reductions in Aid from the State of Minnesota
Whereas, The City of Hastings is projected to receive approximately $549,692 in
Market Value Homestead Credit from the State of Minnesota in 2009; and
Whereas, The City of Hastings is projected to receive approximately $361,324 in
Local Government Aid from the State of Minnesota in 2009, for a total of $911,016; and
Whereas, On January 27, 2009 Governor Pawlenty outlined a budget proposal
that if in the event it became law, would result in the total elimination of the City of
Hastings Local Government Aid payment of $361,324 and a reduction in the Market
Value Homestead Credit by an amount of $241,999, thus totaling $603,323; and
Whereas, Since final legislation identifying the final reductions in State Aids is
likely several months from implementation; and
Whereas, The City Council seeks to identify items intended for amendments to
the 2009 Budget due to reductions in Aid from the State of Minnesota, to provide certain
direction to the City Staff and all the employees; and
Whereas, The Hastings City Council's Finance Committee consisting of City
Councilmembers Danna Elling Schultz (Chair), Tony Alongi and Mike Slavik conducted
a meeting on Monday March 2, 2009 to review certain items under consideration for
amendments to the 2009 Budget; and
Whereas, The Hastings City Council's Finance Committee is recommending that
items be identified for amendment to the 2009 Budget due to reductions in aid from the
State of Minnesota;
Whereas, The Hastings City Council's Finance Committee recommends final
budget amendments be completed only after adoption of the final legislation identifying
reductions in State Aids;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF HASTINGS AS FOLLOWS:
a.) It is the intent of the City Council of the City of Hastings that the following items will
be considered for amendments to the 2009 Budget, upon final adoption of State Law
implementing the reductions in Market Value Homestead Credit and Local Government
Aid.
b.) Until such time as final budget amendments are discussed and reviewed by the
Finance Committee and approved by the City Council, these items will remain "frozen"
and any consideration to expend these items prior to the final budget amendments shall
require approval by the City Council.
COMPLETE ELIMINATION
IT-Virtualized Servers $68,000
IT-Finance Check conversion scanner $ 7,099
Facility-Furniture Replacement $ 1,000
Community Room Lighting $ 4,000
City Hall Basement Fixtures $ 6,000
Finance Dept. Steel Case Office Fixtures $ 6,000
Certain Carpet Replacement $ 8,000
Fire Station Wall Paper $ 4,000
Fire Department Chair Replacement $ 1,000
Police Evidence Processing Room $ 2,500
Fire SWBCA flow tester $ 9,000
Parks Tennis Court Repairs * $ 6,500
Building Department Summer Help $ 6,720
Finance Department Intern $ 5,000
Police Officer Position remain vacant $84,525
Fire Fighter Position remain vacant $61,014
Computer Phone System Upgrade $17,200
Highway #61 Bridge Project Contingency $40,500
TOTAL $ 338,058
PARTIAL REDUCTIONS
Annual PC Replacement $ 24,328 (50%)
Fire hose and fittings $ 1,500 (50%)
Fire backboard replacements $ 1,100 (50%)
Fire pagers $ 1,250 (50%)
Parks Pea Rock Replacement * $ 3,000 (30%)
Fire Dept ERF: Aerial Ladder Truck $100,000 (33%)
Variety of Building Maintenance ERF $ 36,000 (33%)
Vets Parking Lot, Trail Additions, Levee Park,
Tennis Courts $ 28,875 (33%)
TOTAL: $196,053
OPERATIONAL REDUCTIONS
Power $ 20,700
Heat $ 7,721
Workers Compensation Insurance $ 10,000
Liability Insurance Fee $ 3,400
Excess Liability Coverage $ 11,000
LTD $ 9,500
Position Change and OT Budget $ 11,577
Office Supplies $ 4,000
Conference, Schools and Training $ 8,538
Eliminate one Newsletter $ 5,500
Parks Consulting Fees $ 2,000
Parks Part Time/Seasonal Staff $ 5,000
Recreational Supplies $ 1,000
Parks Signs $ 1,000
Fire Department OT $ 5,000
Engineering Expert and Consultant $ 10,000
Planning Items $ 1,000
Economic Development items $ 3,000
Public Works Seasonal Staff $ 5,000
Police Department OT $ 10,000
Public Works OT $ 5,000
TOTAL: $139,936
OTHER
Delay Dewatering of Hydro Plant
GRAND TOTAL:
$125,000
$799,047
Adopted by the City Council of the City of Hastings,
This 16th Day of March, 2009
Ayes:
Nays:
Paul Hicks
Mayor
Melanie Mesko Lee
City Clerk
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