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HomeMy WebLinkAbout04 10 2017 2018 Preliminary Budget Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL WORK SESSION REPORT MEETING DATE: APRIL 10, 2017 AGENDA # A PREPARED BY: FRANK BOYLES, CITY MANAGER DON URAM, FINANCE DIRECTOR PRESENTED BY: FRANK AND DON AGENDA ITEM: 2018 BUDGET DISCUSSION /LONG TERM PLANNING DISCUSSION: Introduction Annually a budget and Capital Improvement Schedule, Process and Timeline is prepared by the staff for informational purposes (attached). In accordance with this document, tonight's work session is intended to start the discussion which will determine the magnitude of the resources available for the 2018 budget and Capital Improvement Program Finance Director Uram will begin by summarizing the financial results for 2016 and implications for the 2018 Budget year. Following that he has a PowerPoint which will review some of the factors which are impinging upon our 2018 Budget and Capital Improvement Program and the targets we have sought to achieve. Since we have experienced some difficulties in achieving some of our financial and staffing targets, the staff will offer some strategies which are hoped to facilitate achievement of these targets over a longer-term horizon. DISCUSSION: 1. Because the city council has the power of the purse it does ultimately determine the services the city staff delivers to the public. It has been suggested, for example, that the city absorb the total cost of road improvement and overlay costs rather than specially assess benefited properties. Where would such additional revenues be derived? 2. It has also been suggested that the general fund budget be reduced. Which expenditure areas and corresponding programs should be cut back or eliminated? 3. The city council has previously indicated that they support revenue enhancements. The staff will identify some alternatives in this category and would like to know which, if any, the city council can support? 4. The city staff believes that staffing levels need to be increased to provide services to a community which has been and is increasing in number of police calls, street, trail and sidewalk miles, numbers of parks and the like. Would the council discuss an orderly plan to address personnel needs on an ongoing basis? 5. The city has a target for city streets of a 70 OCI. This means that a specific number of miles of streets must be reconstructed, reclaimed, Page 2 overlaid and seal coated each year. These street maintenance projects have a high cost which is largely paid through debt service. Is the city council willing to relax these standards so the annual cost and levy associated with such projects can be reduced despite the fact that the long-term costs and consequences will increase? 6. Is there a maximum percentage level of tax levy increase that the city council can support? The answers to these questions will facilitate the staff’s ability to take the next steps in the budgeting and Capital Improvement Program Planning Process.