HomeMy WebLinkAbout12 21 2015 Budget Worksession Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL WORK SESSION REPORT
MEETING DATE: DECEMBER 21, 2015
PREPARED BY: DON URAM, FINANCE DIRECTOR
PRESENTED BY: FRANK BOYLES
DON URAM
AGENDA ITEM: BUDGET DISCUSSION
DISCUSSION: Introduction
At the meeting on December 14, Councilmembers had a few questions about
the 2016 budgets that due to time constraints were not adequately answered.
Since then, the Council has been asked to submit additional questions that
they may have so a response could be prepared for the workshop scheduled
on December 21. Later that evening the Council will be asked to approve the
2016 tax levy and budgets.
Current Circumstances
Questions asked at the meeting requiring further explanation include:
1. Detailed description of Police Overtime – attached is a memo from
Chief Elliott describing the various components of police overtime. It
appears that over time that this account became the repository for
expenditures other than overtime which account to some extent for the
substantial growth. Attached is a memo from Chief Elliot on this subject
which provides detailed information.
2. Police Station Garage Doors – These garage doors as you might
image receive intense use seven days a week and twenty four hours a
day. When the building was built the doors had a planned life
expectancy of 10 years so the budget included a replacement for
2016. There have been a few problems with the doors not working in
recent years. After several maintenance calls they are currently
functioning properly so they do not need to be replaced today.
We will continue to monitor the functioning doors until mid-year and
make the decision as to the timing of replacement then. It is not our
intention to replace the doors unless absolutely necessary but if the
funds are not reflected in the budget the ability to replace them is
complicated.
3. Revolving Equipment Fund – Parks – There are two categories of
expenditures in this account which are vehicles and machinery and
equipment. Total budget for 2016 is $544,149. Of that, $279,645 is for
vehicles and $264,504 is for machinery and equipment (attached is a
list of the planned purchases). Similar to the City’s other replacement
plans, each vehicle/equipment has an estimated useful life which is the
starting point for budgeting for its replacement. As that date
2
approaches, the equipment is evaluated to determine its condition. If
better than expected, the vehicle/equipment map be deferred a year or
so and vice versa if worse than expected. The vehicles/equipment
listed in the 2016 Equipment Revolving Fund budget are necessary
purchases. Any purchase over $20,000 will be brought to the City
Council for review and approval.
Other Items included in the packet are:
1. Tax Levy History – included is a table showing the City’s tax levy
history compared to inflation from 2010 to 2016 and a graph showing
the same information back to 2000. During this time, CPI averaged
about 1.8% while the increase in tax levy averaged about 1.9%. In
2016, the proposed levy per household is $1,207 while the expected
levy per household based on CPI is $1,199.
2. County Wide Average Taxable Values and Tax Levy – Attached is a
spreadsheet prepared by Cindy Geis, Scott County Property and
Customer Services Director that compares the taxes for all cities in the
county on the same average valued home in the county each year
since 2007. Taxes calculated for each of the cities in 2016 are based
on preliminary levies that were submitted in September. In 2015, total
City taxes on the average valued home ranged from a high of
$2,317.93 in Belle Plaine to a low of $929.17 in Prior Lake, a spread of
over $1,388.76. The average city tax bill of all cities (not including
Prior Lake) in 2015 was $1,538. Based on the numbers from the
County, Prior Lake continues to have the lowest city tax levy compared
to surrounding communities.
Staff will be prepared to answer other questions or provide further detail on
any budgeted at the workshop on Monday.
Police Department overtime budget:
Overview:
The police department provides police and emergency medical response services to the City of Prior
Lake. The department provides these services 24 hours a day, 7 days a week, 365 days a year. We
provide services every weekend, every holiday,during every snowstorm, rainstorm and tornado
warning. Many of the services we provide cannot be delayed because an employee is sick,or has
training, is on vacation, is at court, or has a funeral to go to. This is an important consideration because
we must have minimum staffing levels to cover calls for service at all times. While we can adjust
employee's schedules if we have advanced notice of shortages,we do not always have that notice, and
it does not always make sense to do so because at times adjusting a schedule only creates a hole in the
schedule somewhere else.
Overtime:
The proposed overtime budget for 2016 is$190,500. This number was derived from taking the average
overtime expenditures over the past 5 years (2010-2014)$175,201 and adding in the negotiated salary
increase of 3%($5,256) and adding in a 5.5% increase ($10,043)due to 3 existing retirements that won't
have a trained officer in place for 25%of the year, and 1 additional retirement expected in February that
won't have a trained officer in place for 50%of the year, and a sergeant vacancy for the first 25%of the
year. Those shortages will result in some shifts needing to be backfilled.
The overtime budget for 2015 was set at$123,000. This was no doubt done as a cost saving measure
due to the tax levy increase in 2015, however, as can be seen from the average for the previous 5 years
this was set unrealistically low. There would have needed to be a drastic reduction in service levels or
increases in staffing in order to hit that amount. 2015 saw a vacant officer position for the first 5
months of the year due to a resignation from 2014, and also one long term injury, and two retirements
in the 4th quarter,which all caused staffing shortages. The projected 2015 overtime expenditures will be
over the 5-year average.
Breakdown of overtime expenditures spent on additional hours worked by officers:
The overtime budget is in place to cover the payment for hours worked in excess of the officers standard
scheduled work time,which is 80 hours every two weeks. The biggest drivers of the overtime budget
are officers completing calls and reports they are on at the end of their shifts, and backfilling the
schedule where we are short. This is approximately 45%of the overtime budget. Training is the next
biggest expense at 18%. Training a workforce and staying current with POST mandated training is
important in order to have proficient officers,with legal, and procedural knowledge of many aspects of
criminal,family and civil law, as well as first aid, mediation, social work, and counseling skills. A
proficiently trained police work force provides better service and reduced liability exposure to the
citizens and the city. It is not efficient,or effective to train one officer at a time,so it is often necessary
to move an officer off of their shift in order to accomplish the training. Many trainings are only offered
during the day so night officers must be moved to a dayshift to go to the training. Additionally, sending
them to training pulls them off of their regular work shift, and with an already lean staffing rate,this
means backfilling with overtime.
Court appearances account for 15%of the overtime budget. Because of the nature of the work police
officers do,they must occasionally appear in court to give testimony on traffic and criminal cases they
investigate. Officers that have to make a court appearance outside of their normal work shift are paid
overtime.
Contractual overtime and grant activities make up 11%of the overtime budget. These activities are paid
for by grant funding or by the business or group that hires the officers,such as the TZD traffic safety
grant, or Lakefront music fest. This portion of the overtime budget is fully reimbursed to the city
general fund.
SWAT team training and related callouts, Investigations, and other activities combined make up the
remaining 11%.
Additional expenses paid out of the overtime budget:
In addition to the hours worked, unused holiday hours paid out at the end of the year are paid to the
officers out of this account. Officer are given the same 96 hours of holiday hours as other city
employees, however due to rotating schedules and the contract provision to pay officers overtime for
working on holidays,the officers usually have many holiday hours unused at the end of the year. By
contract they are paid out these unused hours at the end of the year, and that payout comes out of the
overtime budget.
Senior officer pay is also paid out of this account, since we do not have supervisors working every shift,
the senior officer is in charge and is paid an additional 50 cents an hour for those hours.
Breakdown of the 2016 overtime budget:
2015 budgeted 2015 actual *thru12/17 2016 proposed budget
Regular overtime $48,594 109,993 62,500
Holiday payout 74,406 73,900 77,000
Holiday overtime $0 49,453 51,000
worked
Total 123,000 243,603 190,500
Overtime Expenditures 2010-2015:
2010 2011 2012 2013 2014 2015*thru12/17 Average
159,036 $174,464 $153,215 $180,146 $209,144 $243,603 186,601
Dept 45200.00-PARKS
55530.00 Infrastructure 2,685
55550.00 Vehicles 95,394 108,000 108,000 279,645 158.93 171,645
546 1-Ton Dump w/Plow 1 @ 52015=52015
521 Hook Truck w/Box and flushing system 1 @ 227630=227630
GL#FOOTNOTE TOTAL: 279,645
55570.00 Machinery and Equipment 23,495 264,504 264,504
501 Skidloader with Attachments 1 @ 54899=54899
539 Utility Vehicle 1 @ 22660=22660
512 Sod Cutter 1 @ 12875=12875
51 of 71
503 Mower-16 ft. 1 @ 93215=93215
525 Mower-6 ft.1 @ 32960=32960
526 Mower-6 ft.1 @ 32960=32960
268 Tiller Attachment for Tractor 1 @ 8240=8240
252 Post Hole Auger 1 @ 6695=6695
GL#FOOTNOTE TOTAL: 264,504
Totals for dept 45200.00-PARKS 121,574 108,000 108,000 544,149 403.84 436,149
12/18/2015
2010 2011 2012 2013 2014 2015 2016
Levy SI0,079.186 310,114,124" $9,414,124 39,414,124 59,448.918 $10,394,086 311,178,361'
PY$Change 3197,631 334,938 ($700,000) $0 $34,794 3945,168 $784,275
Actua0
PY%Change 2,0% 0.35% (6.92%), 0.00% 0.37% 10.00% 7.55%
Actua0
CPI-U(MSP) 1.80% 3.60% 2.30% 1.9% 1.4% 1.0% 1.0%
Est Est
METRO
AVERAGE
LEVY" 3.7% 2.0% 0.3% 2.2% 1.6% 4.1%
TaxLevy/HH $1,193 $1,184 $1,089 $1,067 $1,049 $1,137 $1,207
Tax Levy/HH $1,073 $1,112 $1,137 $1,159 $1,175 $1,187 $1,199
w/CPI
Startribune 12 7'14 Avg CPI-U = 1.88% Avg City = 1.91%
Tax Levy History
Property Tax Levy Per Household
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
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County Wide Average Taxable Values
Elko New New Prague Prior Lake Shakopee
Average Taxable Belle Plaine Jordan City Market City New Prague New Prague City Total Prior Lake Prior Lake City Total Savage NTC Savage RMV Savage City Shakopee Shakopee City Total
Year Value NTC City Total Tax Total Tax Total Tax NTC Tax RMV Tax Tax NTC Tax RMV Tax Tax Tax Tax Total Tax NTC Tax RMV Tax Tax
2016 $ 272,400 $2,724 $ 2,544.78 $ 1,861.87 $ 1,341.86 $ 1,694.10 $ - $ 1,694.10 $ 918.19 $ 102.40 $1,020.58 $ 1,362.49 $ 38.41 $ 1,400.90 $ 1,033.25 $ 16.48 $ 1,049.73
2015 $ 259,100 $2,591 $ 2,317.93 $ 1,657.40 $ 1,208.75 $ 1,674.91 $ - $ 1,674.91 $ 828.82 $ 100.35 $ 929.17 $ 1,340.65 $ 38.40 $ 1,379.05 $ 981.00 $ 13.89 $ 994.89
2014 $ 237,400 $2,374 $ 2,189.91 $ 1,810.11 $ 1,271.20 $ 1,670.07 $ - $ 1,670.07 $ 729.67 $ 95.32 $ 824.98 $ 1,312.29 $ 38.20 $ 1,350.49 $ 983.70 $ 12.44 $ 996.14
2013 $ 234,500 $2,345 $ 2,178.59 $ 1,679.10 $ 1,274.17 $ 1,747.85 $ 29.31 $ 1,777.16 $ 747.75 $ 94.18 $ 841.93 $ 1,301.65 $ 39.58 $ 1,341.24 $ 984.81 $ 10.95 $ 995.76
2012 $ 253,500 $2,535 $ 2,127.78 $ 1,823.64 $ 1,147.31 $ 1,776.61 $ 26.85 $ 1,803.45 $ 753.91 $ 111.64 $ 865.55 $ 1,295.97 $ 40.43 $ 1,336.40 $ 929.21 $ 8.75 $ 937.96
2011 $ 258,900 $2,589 $ 1,742.90 $ 1,570.49 $ 1,136.89 $ 1,659.03 $ 27.11 $ 1,686.13 $ 795.09 $ 110.06 $ 905.15 $ 1,249.92 $ 39.95 $ 1,289.87 $ 899.19 $ 8.85 $ 908.05
2010 $ 275,000 $2,750 $ 1,686.80 $ 1,673.10 $ 1,088.44 $ 1,641.53 $ 27.97 $ 1,669.49 $ 809.64 $ 110.14 $ 919.78 $ 1,301.72 $ 41.88 $ 1,343.61 $ 927.02 $ 15.26 $ 942.28
2009 $ 295,900 $2,959 $ 1,598.54 $ 1,560.46 $ 1,093.85 $ 1,558.71 $ 26.75 $ 1,585.46 $ 826.95 $ 109.72 $ 936.67 $ 1,361.52 $ 41.93 $ 1,403.45 $ 965.52 $ 19.26 $ 984.78
2008 $ 299,800 $2,998 $ 1,653.01 $ 1,530.15 $ 1,114.09 $ 1,541.03 $ 28.90 $ 1,569.93 $ 841.36 $ 112.51 $ 953.87 $ 1,449.71 $ 46.71 $ 1,496.42 $ 957.11 $ 16.10 $ 973.21
2007 $ 285,500 $2,855 $ 1,568.22 $ 1,350.04 $ 1,018.86 $ 1,454.17 $ 32.20 $ 1,486.37 $ 811.82 $ 115.28 $ 927.10 $ 1,431.93 $ 47.71 $ 1,479.63 $ 911.86 $ 20.78 $ 932.64