Budget Amendment FY 04MEMORANDUM
July 21, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Utility Franchise Fee
t would like to modify my recommendation for the Utility Franchise Fee.
I had recommended adoption of a 3% Utility Franchise Fee that would generate net
revenues of $1,081,997 in Fiscal Year 2004 and $1,622,184 in Fiscal Year 2005. This
3% fee included a net increase of 1% to residential, commercial and industrial
customers, because of the fact that the City 1% local option sales tax and the school
1% local option sales tax could no longer be collected. Organizations that are currently
exempt from paying all sales taxes would see a 3% increase in their cost. I did not
recommend a rebate for these groups.
My amended recommendation is for a 2% Utility Franchise Fee with a rebate for the full
2% to organizations currently exempt from sales taxes. This would mean that no
individual, business or organization would see an increase in their costs, but the City
would see an increase in general fund revenues. The 2% Utility Franchise Fee would
take the place of the City 1% local option sales tax and the School 1% local option sales
tax for those who are required to pay those taxes now. All others would receive a
rebate of the franchise fee.
Under this revised recommendation for a 2% Utility Franchise Fee, the City general fund
would receive $641,000 in Fiscal Year 2004 and $879,535 in Fiscal Year 2005. This
change would be done in conjunction with the Fire Union concessions to their overtime
pay and their acceptance in the change in dental benefits, saving the City $62,206.
To make up the remaining funds needed to balance the budget in Fiscal Year 2004
($378,791), I would suggest that the following Fiscal Year 2004 Capital Imprevemenl
Projects be canceled:
Fire Department- Station #2 Driveway and Exterior
Improvements
Fire Department - Radio to Replace Telephone Lines
Fire Department - Station #4 Improvements
Fire Department - Statio~ #5 Improvements
Leisure Services - Softball Fields at Vets
Histodc District Grants Program
TOTAL
$62,000
$17,500
$5,800
$13,600
$139,500
$139,450
$377.850
I respectfully request that the Mayor and City Council set a public hearing for Monday
July 28, 2003 at 6:00 p.m. to consider this recommendation.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Pauline Joyce, Administrative Services Manager
Jeanne Schneider, City Clerk
FRANCHISE FEE REVENUE
Sales Tax and Potential Franchise Fees on Residential, Gas and Electric Bills Within City Limits
City School
Calendar Year State Tax
2001 5.00%
2002 4.00%
2003 Jan.-June 3.00%
3.00%
Local Option Local Option
1.00% 0.00%
1.00% 0.00%
1.00% 0.00%
Franchise Fee
2.00%
2.00%
2.00%
17-Jul
I m pact on
City Residents
6.00%
5.00%
4.00%
FRANCHISE FEE REVENUE
Sales Tax and Potential Franchise Fees on Commercial and Industrial Gas and Electric Bills Within City Limits
City School
Calendar Year State Tax Local Option Local Option Franchise Fee
2002 5.00% 1.00% 0.00%
2003 Jan.-June 5.00% 1.00% 0.00%
5.00%
5.00% 2,00%
Any electricity or natural gas used in processing is exempt from sales tax, but not exempt from the franchise fee.
Impact on
Comm./Ind.
6.00%
6.00%
7,00%
FRANCHISE FEE REVENUE
Sales Tax and Potential Franchise Fees on Sales Tax Exempt Properties Within City Limits
City School Impact on
Calendar Year State Tax Local Option Local Option Franchise Fee Tax Exempt
2OO2 0.O0%
Sales tax exempt includes private nonprofit educational institutions, nonprofit private museums, tax-certifying or tax-levying body or
governmental subdivision, including state board of regents, state department of human services, state department of transportation, all
divisions, boards, commissions, agencies, or instrumentalities of state, federal, county or municipal government which do not have
earnings going to the benefit of an equity investor or stockholder.
Any electricity or natural gas used in processing Is exempt from sales tax, but not exempt from the franchise fee.
MEM
ORANDUM
July 17, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Budget
At the July 9, 2003 Public Hearing on the Fiscal Year 2004 budget amendment, the City
Council directed me to further examine a Utility Franchise Fee. After receiving citizen
input, listening to the City Council discussions over the last two months, and further
examining the available options, I respectfully request Mayor and City Council approval
of a 3% Utility Franchise Fee effective October 1, 2003, on the franchises held by Aquila
and A] [iant Energy for electricity and natural gas and that a public hearing be set for
Monday, July 28, 2003, at 6:00 p.m. to further consider this matter. In the Franchise
Fee Agreement with Aquila and Alliant Energy, the Franchise Fee is capped at 3% and
a unanimous vote of the City Council is required for approval.
The Franchise Fee would allow the restoration of many of the cuts proposed for the
Fiscal Year 2004 budget, including eliminating the non-union employee wage freeze
and bdnging down next year's projected property increase in Fiscal Year 2005 from
10.54% to 8.05%. Recognizing that over the last nine years there has not been a
property tax increase for the average homeowner for the City portion of their property
tax bill, in fact, there has been five decreases totaling 7%, this 8.05% increase in Fiscal
Year 2005 would be a 1.05% increase over a ten year pedod.
As we are all aware, the State of Iowa handed the City of Dubuque most of this problem
when the State cut funding to local governments state-wide by $60 million, which is a
cut to the City of Dubuque of $1,070,425 The State of Iowa might have inadvertently
provided a solution to a budget cdsis they created. In 2002 the State of Iowa began
phasing out the 5% State sales tax on residential utility bills. The State is reducing the
tax by 1% a year through 2006. n 2006, there will no longer be a State sales tax on
residential utility bills. Adoption of a City of Dubuque Utility Franchise Fee of 3% would
be mitigated by this drop of 5% by the State of Iowa.
1
There are further mitigating factors which lessen the impact of the 3% Franchise Fee on
residential properties. Currently, residential properties pay a 2% local option sales tax
(1% to the City and 1% to the schools) on their utility bill. State law removes the local
option sales tax from a utility bill when there is a franchise fee. Therefore, a 3% Utility
Franchise Fee only costs the residential consumer 1%.
The residential consumer would see a high of a 6% charge on their utility bills in 2003
with the State sales tax and Utility Franchise Fee, but go down to a 3% charge in 2006
and beyond, because of the State sales tax reduction and the removal of the local
option sales tax.
The City of Dubuque is struggling with a substantial budgetary shortfall - mainly the
result of a $1,070,425 funding cut from the State of Iowa. This reduction came without
warning, and it impacts every department and division within the City. Even more
unfortunate, this shortfall comes on the heels of a difficult budgeting process and
represents an additional revenue loss.
Planning for the Fiscal Year 2004 budget began with City Council goal-setting in August
2002 and included a thorough, detailed and intense examination of the City's finances.
The budget process continued with a series of public hearings in February and March.
At that time, the City Council addressed a $1 million shortfall, which included a
$312,513 state-mandated increase in police and fire pension costs and a 35% boost in
health insurance. While considering these cost increases, Council Members had to take
into account stagnating tax revenues after a national economic downturn.
Dealing with a budget shortfall is a challenging task. Througnout the process, the City
Council made the difficult, but financially responsible decisions. After approval, the
Fiscal Year 2004 budget, which included the ninth consecutive year of no property tax
~ncrease for the average homeowner, was sent to the State of Iowa for certification by
the March deadline. Unfortunately, the budget stow doesn't end there.
After the budget was certified, the Iowa Legislature passed laws that dramatically
reduced State aid to cities. The result for the City of Dubuque is a reduction of
$1,070,425 in revenue or 3.28% of the general fund operating expense. Also, health
insurance costs have continued to increase at a rate exceeding budget expectations.
The projected recurring cost in Fiscal Year 2004 to cover health insurance is an
additional $613,766 (with $315,000 in other budget shortfalls). After addressing a $1
million shortfall during the initial budgeting process, the City's operating budget now
faces a reduction of $1,799,103 in tax funds and a $200,088 shortfall in non-tax
supported funds. The State of iowa has permanently eliminated this funding to cities
making this reduction an annual, recurnng loss. Therefore, findin ~1 a solution for this
revenue loss cannot be a one-time, short-term solution.
The City of Dubuque runs a lean operation that provides excellent services at some of
the lowest rates in the State of Iowa. The following compares Dubuque with the other
large cities in Iowa:
2
Property Tax
Rank CITY TAX RATE
9 Watedoo 18.37162
8 Des Moines 17.04857
7 Iowa City 16.81344
6 Council Bluffs 16.42850
5 Sioux City 15.95108
4 Davenport 14.63000
3 Cedar Rapids 12.82969
2 Dubuque 10.2730
1 Ames 9.63962
The highest-ranked city (Waterloo) is 79 % higher than Dubuque's rate, and the $14.665 average is
42.8% higher.
Refuse Rates
RANK CiTY MONTHLY
FEE PAY AS YOU THROW
7 Ames $20.50 No (average fee for private service)
6 Cedar Rapids $12.56 Yes
5 Iowa City $12.10 Yes
4 Waterloo $11.00 Yes
3 Des Moines $10.25 No
2 Sioux City $9.50 No
1 Dubuque $7.60 Yes
The highest-ranked city (Ames) is 170 % higherthan Dubuque's rate, and the $~1.93 average is 57%
higher.
Water rates
RANK CITY WATER US ED
(800 cubic feet/residential average)
5 Ames $18.42
4 Des Moines $15.86
3 Council Bluffs $14.00
2 Dubuque $12.80
1 Cedar Rapids $12.48
The highest-ranked city (Ames) is 44 % higher than Dubuque's rate, and the $14.94 average/s I5%
higher.
3
Sewer Rates
RANK CiTY SEWER FEE
(Based on 800 cubic fi/month)
9 iowa City $31.82
8 Des Moines $21.56
7 Waterloo $18.95
6 Sioux City $17.11
5 Ames $16.78
4 Council Bluffs $15.12
3 Davenport $13.76
2 Dubuque $13,04
1 Cedar Rapids $10.73
The highest-ranked cify (Iowa City) is 144 % higherthan Dubuque's rare, and the $I7.65 average is 35%
higher.
Stormwater Utility Rates
RANK CITY RATE*
*Average Monthly Residential rate
8 Des Moines $4.60
7 Burlington $3.00
6 Garner $2.63
5 Cedar Rapids $2.25
4 Boone $1.95
3 Sioux City $1.84
2 Ames $1.50
1 Dubuque $1.29
The highest-ranked city (Des Moines) is 257 % higher than Dubuque's rate, and the $2.38 average is
85% higher.
The City of Dubuque workforce has declined by nearly 12 percent or 69 positions since
1981 in spite of adding numerous services. Initiatives dudng that time period have
included:
Yard waste and recycling
Economic development efforts
County-wide E911 dispatch
Comprehensive housing programs
Community oriented policing
DARE and other drug-related programs
~ental prope~y inspections
Operations of the new leisure pools
McAleece Recreation Complex
City Focus newsletter
industrial pretreatment and lead and copper testing programs
Fifth Street Parking Ramp
Fourth Street Parking Ramp
Hazardous materials team
4
MEMORANDUM
July 17, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Miltigen, City Manager
Budget
At the July 9, 2003 Public Hearing on the Fiscal Year 2004 budget amendment, the City
Council directed me to further examine a Utility Franchise Fee. After receiving citizen
input, listening to the City Council discussions over the last two months, and further
examining the available options, I respectfully request Mayor and City Council approval
of a 3% Utility Franchise Fee effective October 1, 2003, on the franchises held by Aquila
and Alliant Energy for electricity and natural gas and that a public hearing be set for
Monday, July 28, 2003, at 6:00 p.m. to further consider this matter, in the Franchise
Fee Agreement with Aquila and Alliant Energy, the Franchise Fee is capped at 3% and
a unanimous vote of the City Council is required for approval.
The Franchise Fee would allow the restoration of many of the cuts proposed for the
Fiscal Year 2004 budget, including eliminating the non-union employee wage freeze
and bringing down next year's projected property increase in Fiscal Year 2005 from
10.54% to 8.05%. Recognizing that over the last nine years there has not been a
property tax increase for the average homeowner for the City portion of their property
tax bill, in fact, there has been five decreases totaling 7%, this 8.05% increase in Fiscal
Year 2005 would be a 1.05% increase over a ten year period.
As we are all aware, the State of Iowa handed the City of Dubuque most of this problem
when the State cut funding to local governments state-wide by $60 million, which is a
cut to the City of Dubuque of $1,070,425 The State of Iowa might have inadvertently
provided a solution to a budget crisis they created. In 2002 the State of Iowa began
phasing out the 5% State sales tax on residential utility bills. The State is reducing the
tax by 1% a year through 2006. n 2006, there will no longer be a State sates tax on
residential utility bills. Adoption of a City of Dubuque Utility Franchise Fee of 3% would
be mitigated by this drop of 5% by the State of Iowa
1
There are further mitigating factors which lessen the im pact of the 3% Franchise Fee on
residential properties. Currently, residential properties pay a 2% local option sales tax
(1% to the City and 1% to the schools) on their utility bill. State law removes the local
option sales tax from a utility bill when there is a franchise fee. Therefore, a 3% Utility
Franchise Fee only costs the residential consumer 1%.
The residential consumer would see a high of a 6% charge on their utility bills in 2003
with the State sales tax and Utility Franchise Fee but go down to a 3% charge in 2006
and beyond, because of the State sales tax reduction and the removal of the local
option sales tax.
The City of Dubuque is struggling with a substantial budgetary shortfall - mainly the
result of a $1,070,425 funding cut from the State of Iowa. This reduction came without
warning, and it impacts every department and division within the City. Even more
unfortunate, this shortfall comes on the heels of a difficult budgeting process and
represents an additional revenue loss.
Planning for the Fiscal Year 2004 budget began with City Council goal-setting in August
2002 and included a thorough, detailed and intense examination of the City's finances.
The budget process continued with a sedes of public headngs in February and March.
At that time, the City Council addressed a $1 million shortfall, which included a
$312,513 state-mandated increase in police and fire pension costs and a 35% boost in
health insurance. While considering these cost increases, Council Members had to take
into account stagnating tax revenues after a national economic downturn.
Dealing with a budget shortfall is a challenging task. Throughout the process, the City
Council made the difficult, but financially responsible decisions. After approval, the
Fiscal Year 2004 budget, which included the ninth consecutive year of no property tax
increase for the average homeowner, was sent to the State of Iowa for certification by
the March deadline. Unfortunately, the budget stow doesn't end there.
After the budget was certified, the Iowa Legislature passed laws that d ramaticalty
reduced State aid to cities. The result for the City of Dubuque is a reduction of
$1,070,425 in revenue or 3.28% of the general fund operating expense. Also health
qsurance costs have continued to increase at a rate exceeding budget expectations.
The projected recurring cost in Fiscal Year 2004 to cover health insurance is an
additional $613,766 (with $315,000 in other budget shortfalls). After addressing a $1
million shortfall during the initial budgeting process, the City's operating budget now
faces a reduction of $1,799,103 in tax funds and a $200,088 shortfall in non-tax
supported fun(is. The State of Iowa has permanently eliminated this funding to cities
making this reduction an annual, recurring loss. Therefore, finding a solution for this
revenue loss cannot be a one-time, short-term solution.
The City of Dubuque runs a lean operation that provides excellent services at some of
the lowest rates in the State of Iowa. The followin9 compares Dubuque with the other
large cities in Iowa:
2
Property Tax
Rank CITY TAX RATE
9 Waterloo 18.37162
8 Des Moines 17.04857
7 Iowa City 16.81344
6 Council Bluffs 16.42850
5 Sioux City 15.95108
4 Davenport 14.63000
3 Cedar Rapids 12.82969
2 Dubuque 10.2730
1 Ames 9.63962
The highest-ranked city (Waterloo) is 79 % higher than Dubuque's rate, and the $14.665 average is
42.8% higher.
Refuse Rates
RANK CITY MONTHLY
FEE PAY AS YOU THROW
7 Ames $20.50 No (average fee for private service)
6 Cedar Rapids $12.56 Yes
5 Iowa City $12.10 Yes
4 Watedoo $11.00 Yes
3 Des Moines $10.25 No
2 Sioux City $9.50 No
1 Dubuque $7.60 Yes
The highest-ranked city (Ames) is 170 % higherthan Dubuque's rate, and the $11.93 average ia 57%
higher.
Water rates
RANK CITY WATER USED
(800 cubic feet/residential average)
5 Ames $18.42
4 Des Moines $15.86
3 Council Bluffs $14.00
2 Dubuque $12.80
1 Cedar Rapids $12.48
The highest-ranked city (Ames) is 44 % higher than Dubuque's rate, and the $14.94 average ia 15%
higher.
3
Sewer Rates
RANK CiTY SEWER FEE
(Based on 800 cubic fi/month)
9 iowa City $31.82
8 Des Moines $21.56
7 Waterloo $18.95
6 Sioux City $17.11
5 Ames $16.78
4 Council Bluffs $15.12
3 Davenport $13.76
2 Dubuque $13.04
1 Cedar Rapids $10.73
The highest-ranked city (iowa City) is 144 % hlgherthan Dubuque's rate, and the $17.65 average is 35%
higher.
Stormwater Utility Rates
RANK CITY RATE*
*Average Monthly Residential rate
8 Des Moines $4.60
7 Burlington $3.00
6 Garner $2.63
5 Cedar Rapids $2.25
4 Boone $1.95
3 Sioux City $1.84
2 Ames $1.50
1 Dubuque $1.29
The highest-ranked city (Des Moines~ is 257 % higher than Dubuque's rate, and the $2.38 average is
85% higher.
The City of Dubuque workforce has declined by neady 12 percent or 69 positions since
1981, in spite of adding numerous services. Initiatives during that time period have
included:
Yard waste and recycling
Economic development efforts
County-wide E911 dispatch
Comprehensive housing programs
Community odented policing
DARE and other drug-related programs
Rental property inspections
Operations of the new leisure pools
McAleece Recreation Complex
City Focus newsletter
Industrial pretreatment and lead and copper testing programs
Fifth Street Parking Ramp
Fourth Street Parking Ramp
Hazardous materials team
4
Advanced life support ambulance service
Government Channel 8 programming
Cable TV monitoring and regulation
Additional commissions including Long Range Planning, Environmental
Stewardship, Investment Oversight, Development Review Committee
Extensions of bike and hike trails
City-operated FBO functions
Increased zoning code enforcement
Developers and builders reundtables
tm plementation of riverfront plan
Downtown c~rculation study
Implementation of the Neighborhood Reinvestment Strategy
Lead paint abatement program
School resource officer program
Washington D.C. initiative
Increased security operations at the airport
Thirteen additional neighborhood parks
Reinstatement of traffic accident investigations
Police K-9 unit
Even with a Utility Franchise Fee. the amended Fiscal Year 2004 budget includes the
elimination of five additional positions for a total reduction of 74 or heady 13 percent of
the workforce since 1981. This has been accomplished despite adding certain
positions, like 15 Police Officers, since 1994.
Public safety exemplifies one of those areas where the City provides excellent service.
The Insurance Service Office (ISO) rating is a national classification system that rates a
community's fire protection capabilities with a score of 1 to 10, with 1 being the best.
The ISO rates 45,898 fire departments nationwide. The City of Dubuque finished higher
than 96.2% or 44,148 of the other fire departments in the country with a Class 3 rating.
The City of Dubuque's ability to deal with a fire is in an elite class of 1,750 departments
that are rated between I and 3. This puts the City of Dubuque in the top 3.8% of fire
departments in the country. No fire department in the State of Iowa has a higher
classification than Dubuque.
Under State of Iowa law, franchise fees may be implemented as part of a service
agreement executed between local governments and a utility company. In Dubuque,
AIliant Energy and Aquila provide electric and natural gas services to businesses and
residences. These service agreements are made to ensu re service to all customers in
a territory and outline the terms under which utility companies provide service. The
intent of these fees is to reimburse local governments for use of public rights-of-way and
other public services. A franchise fee typically is calculated on a percentage of the
revenues derived from the sales of gas or electricity to customers n that community. A
franchise fee is imposed in lieu of licenses or permits that would otherwise be required.
A franchise fee can be imposed as a percentage of gross sales, so the exact amount
would vary each month. However, the impact of a franchise fee in Dubuque would not
be as significant due to some changes in the State of Io~,a taxing system. If the City of
5
Dubuque were to implement a franchise fee in 2003, residential property would pay the
3% franchise fee in addition to the 3% iowa tax for a total of 6%. However, in 2004 the
State tax declines to 2%, while the franchise fee would remain at 3%. The total in 2004
is 5%. The total in 2005 is 4%. By the year 2006, the State tax is phased out, and only
the franchise fee remains at 3%. When a community implements a franchise fee, local
option taxes cannot be collected. In the case of Dubuque, this 2% in local option sales
taxes would come off of residential, commercial and industrial bills.
Commercial/industrial customers are not receiving a break on their state sales tax
(unless the electdc or gas is used ~n processing) therefore, their overall bill would go up
1% with the 3% franchise fee. Entities that are currently exempt from sales tax would
not be exempt from the franchise fee, but they would still be exempt from sales tax.
Safes Tax and Potential Franchise Fees on ~ Gas and Electric Bills within City Limits
City School Impact on
Calendar Year State Tax Local Option Local Option Franchise Fee City Residents
2001 5.00% 1.00% 0.00% 6.00%
2002 4.00% 1.00% 0.00% 5.00%
2003 Jan.-June 3.00% 1.00% 0.00% 4.00%
6
Sales Tax and Potential Franchise Fees on Gas and E ectric Bills within City Limits
City School Imeact on
Calendar Year State Tax Local Option Local Option Franchise Fee Comm./ind.
2002 5.00% 1.00% 0.00% 6.00%
2003 Jan.-June 5.00% 1.00% 0.00% 6.00%
~ s.oo% ~ ~ ~
2004 and beyond 5.00% 3.00% 8.00%
Any electricity or natural gas used in processing is exempt from sales tax but not exempt from the franchise fee.
Sales Tax and Potential Franchise Fees on within City Limits
Calendar Year State Tax
City School Franchise Impact on
Local Option Local Oetion Fee Tax Exempt
2002 0.00%
2004 and beyond 3.00% 3.00%
*Sales tax exempt includes private nonprofit educational institutions, nonprofit pdvate museums, tax-certifying or tax-
levying body or govemmental subdivision, including state beard of regents, state department of human sennces, state
department of transportation, all divisions, boards, commissions, agencies, or instrumentalities of state, federal,
county, or municipal government which do not have earnings going to the benefit of an equity investor or stockholder.
Any electricity or natural gas used in processing is exempt from sales ta,~ but not exempt from the franchise fee,
The revenues from a 3% Utility Franchise Fee are projected to be $1,081,997 in Fiscal
Year 2004 (9 months) and $1,622,184 in Fiscal Year 2005. Since the City would no
longer collect the City. local option sales tax the City could lose $216,399 from the Fiscal
Year 2004 CIP and $324,437 from the Fiscal Year 2004 CIP.
7
FRANCHISE FEE REVENUE
Aquila Rev. Alliant Rev. Average Taxable
by Source by Source by Source Value-FY 04
Residential 69.00% 40.50% 54.75% 49.00%
Commemial 28.00% 16.00% 22.00% 40.00%
Industrial 3.00% 42.60% 22.80% 5.00%
Utilities/Other 0,90% 0.45% 6.00%
Impact
FY 2004
Effective Date Oct. 1
Impact
FY 2005
Total 100.00%
Revenue from 3% 750,000
Loss of Sales Tax
Revenue in General Fd
Operating Budget (125,000)
Capital Budget (125,000)
Net Gain in Revenue Overall
Net Gain in Revenue for Operating budget
Net Loss in Revenue into Capital budget
100.00%
1,196,621
(199,437)
(199,437)
Total
Total
Total
100.00%
1,946,621
(324,437)
(324,437)
1,297,747
1,622,184
(324,437)
1,298,396
(216,399)
(216,399)
865.597
1,081,997
(216,399)
1.946,621
(324,437)
(324,437)
1,297,747
1,622,184
(324,437)
As directed, I met with the leadership of Teamster's Union, Local ¢421 and the
Dubuque Professional Firefighter's Association, Local #353.
The discussions with the Teamsters revolved around the Park Ranger position. The
Teamsters membership had already rejected a wage freeze and already accepted all
the requested health care changes. They asked the City to consider raising the entry
fee at Eagle Point Park from $1 to $2, which would generate over $60,000, more than
enou9 n to pay for the Park Ranger position, or cancel a Park's Division Capital
Improvement Project.
The Firefighters reiterated their wiliness to change their FLSA overtime to comp time
and accept paying their full dental premium, which is accepting part of the health care
changes accepted by other employees (except the Police umon). This will save the City
$62,206 in Fiscal Year 2004.
I have included this $62,200 savings in my revised budget recommendation.
If the City Council does not approve the Utility Franchise Fee, all the previously
approved cuts, including the non-union wage freeze and the position eliminations, will
be implemented. To fund the three Fire Equipment Operator positions, the Park Ranger
position, restore Saturday Fixed Route Bus Service and not increase Fixed Route or
paratransit fares, the funding will come from the Capital Improvement Program budget
in the amount of $307,729, and the $62,206 offered up by the Fire Union by accepting
the changes in dental premiums and allowing FLSA overtime to be compensated
through time-off, instead of overtime. The canceled ClPs are the Historic Distdct Grant
Program ($139,450), the softball field renovation at Vet's Park ($139,500) and $28,779
of the $62,000 Fire Station #2 ddveway and exterior improvements.
Canceling these CIPS merely pushes this problem into Fiscal Year 2005, which's
already looking at a 10.54% property tax increase for a maintenance level budget. This
will push the anticipated Fiscal Year 2005 property tax increase of 10.54% to 13.77%,
instead of reducing it to 8.05%, as would the implementation of a Utility Franchise Fee.
Administrative Services Manager Pauline Joyce has provided the attached additional
information on these very important issues.
Michael C. Van Miliigen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Pauline Joyce, Administrative Services Manager
9
MEM
ORANDUM
July 15, 2003
TO:
FROM:
SUBJECT:
Michael C. Van Miiligen, City Manager
Pauline Joyce, Administrative Services Manager ~
Fiscal Year 2004 Budget Amendment Hearing Follow-Up
The purpose of this memorandum is to provide follow-up information from the July 9
Fiscal Year 2004 budget amendment public hearing.
Attachment A is an updated summary with City Council actions/direction from the July
9t~ public hearing highlighted in yeflow.
The Fire Union representatives have again stated their agreement to shift the cost of
single dental coverage expense to employees and to utilize comp time versus overtime
for FLSA overtime hours if the three Fire Equipment Operator positions are maintained.
The savings associated with these changes is $62,206, leaving a shortfall of $127,794
to make up from additional cuts and/or revenue increases to save these three positions.
Attachment B is a summary of capital improvement budget reductions that are
recommended if City Council chooses to proceed with funding the extra $127,794
needed to restore the three Fire Equipment Operator positions, the $43,916 needed to
restore the Park Ranger position, and $135,075 required to restore Saturday Transit
service ano avoid the Transit fare increases. The recommended capital budget
reductions include elimination of a CIP for Realignment of the Veterans Memorial Park
Fields I and II ($139,500), eliminating the current year balance of $139,450 in the
Historic District Grant program and canceling or deferring a portion of the Fire Station
#2 Ddveway and Exterior improvements ($27,779 from the total $62,000 budgeted for
this project).
Attachment C provides additional background information and analysis on the electric
and gas franchise fee per City Council direction. Included in this packet is a summary
of the impact of the franchise fee if it were initiated in Fiscal Year 2004 in terms of the
decision package cuts that could be avoided.
GENERAL FUND
FY 04 FY 05
Cat. Priority Dept Item Amount Amount
0 City-wide
O City-wide
0 City*wide
0 Citv-wide
0 City-wide
O City-wide
0 City-wide
0 City*wide
0 City-wide
0 Citwwide
0 City-wide
0 City-wide
O City-wide
0 City-wide
Impeol of State cuts
Liquor Sales Tax Credit 269.942 269,942
Municipal Assistance 305.715 305.715
Personal Property Tax Replacement 449.968 449.968
Monies and Credit Reolacement 44,800 44,800
Homestead Tax Credit change
Imnact of health cost increases 413.678 413.678
Hiring freeze/confined space revenue 315.000 315.000
One month lag in positions cuts-Aug. 9 50.000 50,000
Unemployment costs,outplacement, 60,000 80,000
Retirement Incentive 30,000 30.000
SS and IPERS impact 4,050 4,050
Health TF savings (under)/over target 98,879 (56.438)
ICAP Co nt ribu tie n-liebilit y insurance 12,000 t2.000
Attachment A
Cumulative
Fy 04 Total Impact
269,942
575.657
· 025.625
1.070.425
These State funding reductions in credits are being passed on to property tax payers
1,799, t03
~ .849.103 August 9th for position eliminations or 30 days after Council decision
1.929.103 I! you assume that 9 positions are cut and aren't placed thru retirements/attrition
1,95g~ 103 Assuming 3 retirements--Directed to extend offer until August 31~ 2003
1,963 153
2,032,032 Target of ~236.000,only came up with 9164.805 in '04 & $190.713 in '05
2,044,032 Billing received 4122/03 which is t20,O00 higher than FY 04 budget estimate
Non-Union Wage Freeze
City-wide
{349.876) (355,187) 1,694.156
Expense Reductions That Do Not Involve Cutting City Positions in priority order with #1
2 t Police
2 3 Library
2 4 City Clerk
2 § City Manager
2 6 Emerg. Camm
2 7 City Manager
2 8 City Manager
2 9 Engineedng
2 10 Purch of Serv
2 11 Recreation
2 12 City Council
2 13 City Council
2 14 City Council
2 1E Legal Services
2 16 City Clerk
2 17 City Clerk
2 18 Annex Mainl
2 19 City Hall
2 20 City Hall
2 21 City Hall
2 22 Info Services
being cut est.
Soecialized police services overtime disc. (gl.736t {81 736)
Reduce pmgrammm{~ by 47% for all (4.285) 14,285) 1.908.135
Eliminates staff support on CS tests (1,350) (1.350) 1.606,785
Sensitivity Training {3,000) (3,000) 1,603,765
Training expense for Ride-^longs (I ,665) (1,965) 1,602,120
Eliminate employees gifts (4,072) i4,072) 1.598.048
Wellness Programming (9,700) {9.7001 I,E98,348
Eliminates ~8,000 for overtime {8,000) {8.000) 1.580.348
Reduction in altec, by 7.8% (3.945} (3,945) 1.576.403
Eliminate Ice Rink Warming Houses (5,871i (5,871) 1.570.532
Eliminate Boards and Comm. Picnic (2,400) (2,400) 1.568.132
Reduce Travel Professional Conference (13.750) (13.750) 1,554.382
Sister City Program {2.000) i2.000) 1,552,382
Eliminated Education & Training 1.552,382
Eliminate microfilming/scanning {8.260) ~4,500) 1.644,122
Drop printing of Council Proceedings {1,190) (1,210) 1.542.932
Equipment Maint. Contract 1475) {475) 1.542.457
Reduced janitorial services {5.668) (11,336) 1.536.789
Reduce property maintenance {2,299) (2.298) 1.534.49~
Reduce operating supplies tl .oEgJ (1 .O59) 1,533,432
Reduce network maint to 8hfs/5 days {5,000) (5,000) t.528,432
1,612.420 STOP. Domestic Violence overtime, accreditation,
Eliminates overtime for staff suoport. Dept staff and Commissioners would need to help
Net savings (expense less 1/3 county reimbursement)
SDiril luncheon Would continue with no gifts or service awards
Lower priority tasks will be delayed
One book would be provided to Library and one in City Clerk's Office
Monday. Wed, and Friday janitorial service and restrooms on summer weekends
GENERAL FUND
Cat. Priority Dept
2 22 Ubrar¥
2 23 Info Services
2 24 Hea~th
2 25 Health
26 Health
2 27 Info Services
2 27 Legal Services
2 28 Parks
2 29 Plannin~
2 30 Planning
2 31 City Manager
2 32 Annex Maint
2 33 Annex Maint
2 34 Annex Maint
2 35 City Manager
2 36 Econ. Day
2 37 City Manager
2 38 City Manager
2 39 City Manager
2 40 City Manager
2 41 Emerg. Corem
2 42 Emerg, Mgmt
2 43 Finance
2 44 Finance
2 45 Health
2 46 Housing Serv
2 47 Human Rights
2 48 Info Services
2 49 Info Services
2 50 Recreation
2 51 City Manager
2 52 Police
2 53 Recreation
2 54 Police
2 55 Planning
FY 04
Item Amount
Reduce materials purchased 17.4% (45,575[
Renegotiated service contract (5.000)
Eliminates ST for Animal Control Officer (1.494)
Eliminates tamp clerical {885)
Elimintes ST for Sanitarians {3.268)
Uses comp time vs paid overtime (6,535)
Splits health insurance between debts (4.30 I)
Eliminate weekend overtime (7.860)
Reduce times zoning map updated (2.000)
Eliminate ECIA contracted services (12.000i
Drop 25 Laserfiche view only licenses {1,980)
Boiler Maintenance (4§0)
Property Maintenance 12.088)
Property Maintenance {615)
Droo Dale Carnegie Training [3,431)
Washington DC Initiative reduced | 13,218)
Budget pdnting--4 copies only [5,300)
Meals for budget hearing sessions, (2.650)
Eliminate catering for meetings 12,500)
Subscriptions Services-Personnel [2,000)
CAD maintenance shifted to 911 Fund (15,3111
Increased fedora) funds (3.541)
Monitor/Collect Loans Internally-CDBG 16.000)
Recharge addl OH to parking (4,000)
State reimbursement of activities (5.000)
Shift vehicle expense.reduce supplies {2.200)
Shift $10.000 salaries to HUD funding I10,000)
Actual savings on SQL more than antic, (1,702)
Emait management moved in house (13.055)
Increase Admin. Overhead Chg to Golf (10,000)
College Reimbursement Funds (7.400)
Eliminates Graphic Artist positio~ [60,85g)
CDBG funds r~av for 60% sw~m pass (13,528)
Re)mb for tickets issued bv Police (20.O00)
Eliminate staff membership in APWA (900)
17-Jul-2003
FY 05 Cumulative
Amount Fy 04 Total Impact
(45.875) 1,482,557
[5.000) 1.477,557
1,539) 1.476.063
(902) 1,475.178
13.400) 1,471.9t0 Limited after bour time spent on inspections
16.8351 1.465,075
(4.3011 1.460.774 Same amount of savings in Police
{7.860) 1,452,914
{2,000) 1,450,914
(12,0OO} 1,438,914
(1,980) 1,430,934 Reduced from 50 to 25 and dropped 2 full licenses.
(450) 1.436.484 Reduce boiler checks from weekly to every other week during heating seaso{~
(2,086) 1.434.396 Reduce nightly custodial service and preserve restroom and floor care nightly
{615) 1.433.781 Reduce freouency of rug replacement servic from biweekly to montMy
(3,431) 1,430.350
(13,218) 1.417,132
(5,360) 1,411,772 CD ROM available to public at cost
(2,650) 1.409, 122
(2,500) 1.406.622
(2,000) 1.404.622
{15,311) 1,389.311 ~let savings (expense less 1/3 county reimbursement)
{3,541) 1,385.770
{6.O00) 1,379,770 Revenue will go to Finance instead of to financial institution
{4.000) 1.375.770
(5.400) 1,370,770 Activities performed will be reimbursed for FY 04 & 05 et min. (ia, bioterrorism)
12.200) 1.368.570
(10,000) 1.358 570 Housing cases would take priority
(16,783) 1,343,810
{10.000) 1.333,810
17~4001 1.326.410
(60,555) 1.265.552 Funds publlc information personnel in Police and Fire with Cable Franchise fees
{13,528) 1,252,024
(20,000) 1,232,024
(900) 1,231,124 Will maintain City Planner's membership
Increase in Revenues by Department-~Not Priority
3 1 Building
3 2 City Clerk
3 3 Emerg. Comm
3 4 Engineering
3 5 Engineering
Increase Business License Fees
$20 charge for each tape made
Adds traffic control permit fee 950
Increase 3ermit fee for dumpster
(17,550)
(4,950)
(2.0001
(2.500)
(5.850)
{17,650)
{12,900l
(2,O00)
(2,50Ol
(5,85OI
1.213,474 Additional 925 per contractor license fee
1.208,524 Business licenses from $50 to $75, taxicab from $5 to 910 and add special event
1.206,524
1,204,024
%198,174
GENERALFUND
Cat. Pdodty Dept
3 0 Engineering
3 7 Engineering
3 8 Fi~e
3 9 Fire
3 IO Five Flags
3 I1 Five Flags
3 12 Five Flags
3 13 Five Flags
3 14 Health
3 15 Health
3 16 Housing Serv
3 17 Legal Services
3 18 Library
3 19 Parks
3 20 Parks
3 21 Planning
3 22 Planning
3 23 Planning
3 24 Police
3 25 Recreation
3 26 Police
3 27 Recreation
3 28 Recreatio~
3 29 Recreatior
FY 04 FY 05 Cumu/atlve
Item Amount Amount Fy 04 Total
Increases license (1,800) (1,800) 1,196.374
increase Sidewalk Inspectfon fee 121,000) (21.0001 1.175.374
Adds $1.25/ capita cbarge for hazmat [33.321 {33.3211 1,142,053
Confined space charges to industries (4.500) (4.500) 1.137.553
Increase Labor Rates (4,865) 14.865) 1,132,688
Add $1.00 surcharge on tickets sold (34,500) (34.500) 1,098,188
Increases Public Skating Fees (2,050) (2.050) 1,096,138
Increase skate rental fee 81.00 to $1.50 (1,175) (1,175) 1,094,963
Incr. late penalty on dog/cat license (3,750) (3.750) 1,091,213
Increases dog/cat license fees {I0,841) (17,400) 1,080.372
Increase rental housing fees (3,595) {3,595) 1,076,777
Payment for Rd of Review tax appeals (10.000) (10,000) 1.066,777
Meeting room fees,interqibrary loan fee (4.300) (4.300) 1.062,477
Increase pavilion rental fees 15% (7.800) (7,800) 1,054.577
Increase camping fees (9.574] {9,574) 1.045,103
New billboard inspection fees 17~800~ (7,800) 1,037,303
Increase spec. exception/setback fee {2,800) (2,800) 1,034,503
Zoning fees increased in budget (58,620) (58,620} 975.883
New research fee for criminal checks (31,800) (31.8001 944,083
Impact of background check fee 1.000 1,000 945,083
Processing fee for impounded vehicles {20.400) (20,400) 924.683
ncrease Play Lot/Tot Lot fees by $5 14.000) (4.000{ 920,683
ncrease After School Sports fee by $3 (3.750) (3,750i 916.933
Increase ~'outh sports fees by 83.00 (2,610) (2,610) 914.323
17-Jul-2003
Revocable and irrevocable License processing fee for use of 9ublic rrght of way
$50 if defect is found as Dart of inspection, 830 for sidewalk permit requested at Office
Per capita for populatiol3 outside tile city vs currenttv flat fee to County of 86.000
From $3.50 to 84.00 for adults and $2.00 to $2.50 for youth
~- $2 for spayed/neutered (810), + $7 for non-spav/nonmeutered (825)
From 88,50 to 89,00 per unit last increased in 1998
Should total 193.970
Impact of Police decision package
From 810 to $18
Exoanditure Reductions That Involve Elimination of City Positions in priority order with #1 being cut last.
Fire
2 Police
4 3 Police
4 4 Parks
& 6 Library
4 7 Finance
4 8 Five Flags
9 Police
4 10 Parks
4 11 Engineering
12 Engineering
13 City Manager
4 14 Human Rights
Eliminates 3 Fire Equip Operators
Fire offer on Dental Insurance (10,667) (16.000)
Fire offer on Comp time vs overtime (51.539) (51.539)
Amount of needed to restore 3 ~osit~ons 128,738) {123,405)
Freezes Traffic Safety patrol officer (60,989) (60,989)
Canine officer itu rag. patrol. -1 officer 164.134) (64.134)
Eliminate one park ranger 143.916) (43,919)
Reduce Libraw hours from 69 to 64-65 (12.778) (12,778)
Replace FT Fiscal Coord w PT (42.206) (42,206)
Reduces Bldg Supv to pT (34,011) (34,011)
F;eezes computer programmer (46,343) (46,343)
Eliminate one maintenance worker (50.999) (50,699)
Eliminate Traffic Engineer (56.982) (56,982)
Freezes Eng g position (19,050) (19,050)
Admin. Serv Mgr-;> Budget Director (18.135) (33,272)
Eliminate Legal Intern, DDRC (13,872) (13.872)
914.323
903.656
852.117
723.379
662.390
598,256
554,340
541.562 Reduces Library hoursfmm 69 to 64 or 65 hm/week, no staffcuts, overtime reduced
499.356 PT Account Clerklforpayroll
465.345
358.303 Assigned to downtown
274,136
260,264
GENERALFUND
Cat, Priority Del~t
4 1 § Police
4 16 Library
4 17 Legal Services
4 18 Finance
4 19 Engineering
4 20 Airport
4 21 Airport
Item
Eliminates civilian computer intern
Cut Americorp program, outreach
Eliminates Intern
Eliminate Finance Intern
Sbift funds/assignment of Eng II
Savings used to hem cover NW rev.
Eliminate LEO FT and PT positions
TRANSIT FUND (part of General Fund tax asking shor~fag)
0 0 Transit
City-wide
3 2 Transit
Transit
3 3 Transit
2 I Transit
State Transit Assistance reduction
Non-union wage adjustments
Increase Fares rag $1 to ~1.gO
Charge for tours software maintenance
Eaualize garage recharge rate
Eliminate Fixed Route Saturday serv.
ROAD USE TAX FUND
0 00per. A MaJnt. Increased health Costs
0 Use non-recurnng reserves in FY 04 and replenisb in FY 05
Total. Genera( Fund.Transit. RUTF
FY O4
(11.887)
(13,494)
(7.008i
(11.934)
18,315
(73.614)
22,049
30.778
(78.694)
(0)
FY 05 Cumulative
Amount Fy 04 Total Impact
(11.587) 248.677
{13.494) 236.183
(10,011) 228,175
14.000) 228.175 Keen in FY 04 due to GASB34 changes
18,315 234,556 Aimort reeuest to usa tlmse funds to halo address revenue shortfall due to Northwest
(73,614} 160.942
8.000 160,942
{5.311) 160.942
(102,682) 160.942
(3.000) 160.942
22.049 182,991
{32.393) 182.991
~ ~ 47.916
Impact of Operations and Maint. decision package
30.778
78,694
(16.447)
78.694
Unencumbered Funds--GeneralFund
WATER OPERATING
Categ Priority Dept 0 Water
City-Wide
2 Finance
2 Water
2 Water
2 Water
3 Water
Item Amounl Amount
Increased health costs 28,028 28.O28
Non-union wage adjustments (16,757) {16.757)
Lower Step due to retirement (1 ,O71 ) (1,07 ])
Reduce hydrant repLpmventive maint. (8,200) (8,200)
Reduce consultant services tel to CIPs (2.O00) (2,000)
Reduced water demand Duebecor 58.567 58.567
Rate adjustment relative to Quebecor (58,567) {58,567)
Total. Water Operating Fund 0 O
Fy 04 TRial
Impact
Savings in Finance offset by reduced recharges to the utgitfes
Reduced cut from ~19.500 to $8,200
Rate Increase of 1.88% on too of 3% increased adonted by Council for FY 04
Use Water Operating fund balance until imoact of Ouebecor is more certain
SEWER OPERATING
Categ Priority Dept
0 ODer. & Maint
City-Wide
2 Finance
2 WPC Planl
2 WPC Planl
2 WPC Plan1
FY 04 FY OS Cumulative
Item Amount Amount Fy 04 Total
Increased health costs
Non-un(on wage adjustments
Lower Star, due to retirement
Reduce subscriptions/travel
Rebidding shifta to reduce ST
Renting oxygen generating system
Tota[, Sewer Operating Fund
28,790
{17.409)
{1,071)
(20,322)
{10.012)
28,790
(17,409)
(1,071)
(34.842)
(24,532)
Impact
Savings in Finance offset bv reduced recharges to the utilities
Can avoid this reduction of $2,475
Can avoid this reduction of $5,010
Equipment installation in FY 04
REFUSE OPERATING
Categ Priority Dept Item
0
Spar. & Maint, Increased health costs
CitY-Wide Non-onion wage adjustments
Finance Lower Ste~ due to retirement
Spar. & Maim, Increase fee from ~7.49 to $7.60/month
Spar. & Maint. Increase appliance pickup fee ~10-:> ~14
TotaL. Refuse Collection
FY 04
Amount
24,719
(2,608)
(21.700)
(O60)
FY 0S Cumulative
Amounl Fy 04 Total
24.719
(2,6081
(21,700)
Impact
Non-union wage adjustment missed on previous summary
Savings in Finance offset by reduced recharges to the utigties
Still 20% lower than the next lowest solid waster collection fee of other ten largest cities
Can avoid this increase to generate $2,000
STORMWATER OPERATING
Categ Pdodty Dept Item
2 Finance Lower Step due to retiremen!
FY 04
Amount
(1,071)
FY OS Cumulative
Amount Fy 04 Total
(1,071)
Savings in Finance offset by reduced recharges to the utilities
TotaL. Stormwater Fund (1,07 f } I1,07 II
LANDFILL OPERATING FUND
FY 04
Categ Priority Dept Item Amount
0 Ooer & Malnt Increased health costs 10.765 10,765
City-Wide Non-union wage adjustments '6.520) (6,520)
2 Ooer & Maint Use Agency's FY 04 rate increase {4,245) (4,245)
Total. Landfill Oper. Fund
FY OS Cumulative
Amount FY 04 Total
0 0
Impact
Non-union wage adjustment missed on prewous summary
No impact as covered by $.75 per ton fee increased already scheduled for 7-1-03
PARKING
FY 04
Categ Priority Dept Item Amount
Parking increased health costs 11,513
City-Wide Non*union wage adjustments (4,095)
Parking Shortfall in revenues 30,000
Finance Recharge addl OH to parking 4,000
Parking Reimburse police for tickets written 20.000
Parking Eliminate a Maintenance worker [49,91 I}
Parking Reduce Cashier hours .57 FTE I13.988)
Total. Parking Oper. Fund
{2,491)
FY 05 Cumulative
Amount Fy 04 Total
(4,095)
30,000
4.000
20.000
(2,481)
Impacl
Non*union wage adjustment missed on previous summary
4th Street Ramp
Look at rate increase decision packages in FY 05 if necessary.
UDAG FUNDS
Cate9 Priority Dept
0 Corem, Dev.
City Wide
2 Parch of Serv
FY 04 FY 05 Cumulative
Item Amount Amount Fy 04 Total
Increased heaRh costs
Non-unmn wage adjustments
Reduction in alloc, by 7.6%-Labor Mgmt
Total. UDAG Fund
717
(2,187}
(1,470)
717
12.167]
{1,470)
hnpact
Non-union wage adjustment missed on previous summary
Reduction no longer needed $717
COMMUNITY DEV. FUNDS
Categ Priority Depl Item
0 City Wide
City Wide
2 Econ. Dev.
2 Housing/CD
Increased heagh COSTS
Non-union wage adjustments
Education and Tr~inlng Funds
Rahab activity supplies reduced
FY 04
2,799
8.000)
FY 05 Cumulative
Amount Fy 04 Total
12.799
Impact
Reduction no longer needed ~2.600
Reduction no longer needed 81,470
2 Housing/CD
2 Housing/CD
2 Housing/CD
Admin supplies and services
General Liability Insurance
Rental Unit Survey eliminated
Total. Community Dev. Block Grant
(6,701) [6.701}
Reduction no longer needed $1.397
Reduced due to error in spreading costs
Reduction no longer needed $6.000
LEAD PAINT PROGRAM
Categ Priority Dept
2 Housing/CD
Housing/CD
Item
Shift vehicle expense,reduce supplies
Non-union wage adjustments
FY 04
Amount
FY 08 Cumulative
Amount Fy 04 Total
(3,616) (3,616)
Impact
Reduction no longer needed ~1.OOO
Non-union wage adjustment missed on previous summary
SECTION 8 HOUgING
Categ Priority Dept
Citv Wide
Housing/CD
2 Housing/CD
2 Housing/CD
2 Housing/CD
2 Housing/CD
2 Housing/CD
4 Flousing/CD
CABLE TV FUND
Categ Priority Dept
Cable TV
Cable TV
City Wide
Annex Maint
Coble TV
Cable TV
Cable TV
Cable TV
Cable TV
City Managers
FY 04 FY 05 Cumulative
Item Amount Amount Fy 04 Total
Increased health costs 13.853 13.853
Non-umon wage adjustments {13,343) (13,343)
Reduce postage, more internet (500) (500)
Staff to donate refreshments*FSS (200) (200)
Mileage reduced, fewer visits ~590) (590)
Reduced telephone long distance (700) 1700)
Change background checks to latel 12,250) (2,2501
Impact of increase background checks 9,000 9.000
Total, Section 8 4,760 4,760
Item
ncreased health insurance costs
FY 2004 Operating Budget Surplus
Non-union wage adjustments
Property Maintenance
Reduce membership expense
Reduce Machinery/Equip. Rental
FY 04 FY OB
Amount Amount
7,015 7.015
(12,467) (12,467)
{23,700) (23,700)
Cumulative
Fy 04 Total
Impact
Take min. amount we need to meet health insurance target
Police $ I 0 fee for background checks
Use fund balance to cover or alternate background check admin, policy
Impact
Estimate of FY 04/05 surplus $45.600/$42.000 but uncertain--negotiations in process.
Non-union wage adjustment missed on 9revious summary
Reduction no longer needed
Reduction no longer needed
Reduction no longer needed
City Managers Eliminate Cit'! Expo Event
City Managers Graphic Artist position eliminated
Police Charge Pi function of Police & Fire
(60,868] (60,858)
60,868 60,858
Total. Cable TV Fund (29,162) (29,152)
9ERVICE FUND
Categ Priority Dept Item
Engineering Increased heaRh costs-Engineering
City Wide Non-union wage adjustments
City Wide Reduce recharges based on Iowe~ rates
Oper. & Maint, Increased hea~th costs-Garage
Engineering Eliminate Traffic Engineering positio~
Engineering Shift funds/assignment of Eng g
ODer. & Maint. Equalize 9arage rates for Transil
Total Service Fund
FY 04 FY 05 Cumulative
Amount Amount Fy 04 Total
18 743 18,743
{33.7961 (33,796)
21.536 21.536
12.360 12,360
(8,727) (8.727)
11,934 11,934
{22,050) [22.050)
0 0
impact
Non-u~lion wage adjustment missed on previous summary
Increase recharges to projects and to garage recharges
Attachment B
Capital Projects that could be cancelled to support Fire and Park Ranger Positions
in FY 2004 Only -- if Franchise Fees are not adopted
Fire Department
Amount Required to Fund 3 Fire Equipment Operators
Less Amount Offered by Fire Union-dental & Comp Time
Amount Required to Fund Park Ranger
Amount Required to reinstate Saturday bus service and
avoid fare increases
Total Shortfall to be made up
Cs pital Projects to be cancelled
Historic District Grant balance from FY 03
Softball Fields at Vets
Station #2 Driveway & Extedor Improv.
Amount
(19O.944)
62,206
(43,916)
(135,075)
(307,729)
139,450
139,500
28,779
Recurring savings
Remaining in project $33,221
Total Capital Budget Reductions 307,729
MEM
Attachment C
ORANDUM
July 15, 2003
TO:
FROM:
SUBJECT:
Michael C. Van Mitligen, City Manager
Pauline Joyce, Administrative Services Manager (SP~
/
Summary of Information Developed to date on Gas and Electric Franchise
Fees
The purpose of this memorandum is to provide background information developed in
response to City Council direction to continue to look into the alternative of a gas and
electdc franchise fee.
The first information presented in Attachment 1 ~s a comparison of State, City and
School sales and local option taxes and franchise fees that would be paid by year for
residential, commercial and tax exempt properties. This demonstrates the impact on
each class of property if the City Council were to approve a 3% gas and electric
franchise fee effective October 1,2003. It is important to look at the issue by class of
property since the State's phase out of sales tax on gas and electric utilities applies only
to residential properties. Upon enactment of a franchise fee, the City's local option
sales tax and the School's local option sales tax would no longer apply to gas and
electric bills. Highlighted in yellow are the changes in each of the taxes and fees and
the final impact on the customer.
The first sheet of Attachment 1 shows the impact on Residential Property in the City of
Dubuque. Currently residential property owners are paying a 3% State Sales Tax, 1%
City Local Option Tax and a 1% School Local Option Tax for a total of 5% tax on their
electdc and gas bills, tfa 3% franchise fee is initiated effective October 1, 2003, the
School and City Local Option Taxes will no longer apply and the qet effect ill be a 1%
increase ~n taxes and franchise fees paid by the homeowner on their gas and electric
bills or a total tax of 6%. Effective January 1, 2004 the State Sales Tax is reduced from
3% to 2% and the average homeowner will be paying 5% once more on these energy
bills. This will continue to be reduced another 1% effective January 1, 2005 and 1%
January 1,2006. From January 1,2006 and beyond, the total taxes and franchise fees
for homeowners will be 3%.
The second sheet provides the same information for commercial and industrial
customers. Their taxes on energy bills are currently 7% including the 5% State Sales
Tax, the 1% City Local Option Tax and the 1% School Local Option Tax. If the
franchise fee goes into effect October 1,2003, their taxes and fee increase only 1%
because the City and School Local Option Tax no longer apply. Their rates will not
decrease over time as the State phase out of Sales Tax does not apply to commercial
or industrial properties.
The third sheet shows the im pact of a franchise fee on the tax exempt properties which
are primarily the tax levying bodies, nonprofit educational institutions and state and
federal government buildings. Also, commercial and industrial is exempt from sales tax
on electricity and gas used in processing. The impact on the sales tax exempt
properties is 3% effective October 1, 2003 and beyond.
Attachment 2 quantifies the estimated revenues that could be generated from a 3% gas
and electdc franchise fee. This summary indicates that a gas and electric franchise fee
would generate an estimated $1,081,997 for the General Fund operating budget for
Fiscal Year 2004 and $1,622,184 in Fiscal Year 2005 (full year versus 2/3 of a year).
It is also important to note that the franchise fee alternative does reduce capital budget
resources by an estimated $324,437 due to the loss of the Local Option Sales Tax.
Attachment #3 takes the estimated amount of revenue generated by a 3% franchise fee
if it were to go into effect September 1,2003 and applies that revenue to the
recommended operating budget cuts that came out of the July 9 public hearing. The
funding was used to restore the following decision packages:
· non-unionwage plan,
· avoids unemployment, outplacement, and impact of one month lag in position cut
· all education and training accounts,
· $4,165 of the total $81,736 of overtime for STOP, Domestic violence and other
specialized police services overtime
· Purchase of Services 7.6% proposed cut
· Restores $4,000 in Library materials
· Overtime for Environmental Sanitarian
· New research fee for criminal checks
· Three Fire Equipment Operator positions
· Traffic Safety patrol officer
· Canine officer
· ParkRanger position
· Library. hours from 64 back to 69 (current level)
· Five Flags Building Supervisor back to FT
· Police Computer Programmer position
· Parks Maintenance worker assigned to downtown
· Traffic Engineer
· Engineering Assistant II
· Legal Intern
· Computerlntern in Police
· Amedcorp program and other Library outreach programs
· Legal Services Intern
· Finance Intern
· Transit Saturday service restored and avoid fare increases
· Charges for tours for other City departments
As noted above, this alternative does not require reductions in the Fire, Park and
Historic District Grant capital improvement programs to balance the operating budget for
FY 04.
Since FY 05 franchise fees will be for a full year versus % of a year, the revenue
generated in FY 05 will result in an additional $392,871 of franchise fee revenues
available to address FY 05 budget difficulties, such as the anticipated 10.54% property
tax increase. If this amount were applied to reducing the FY 2005 property tax
requirements, the anticipated residential property tax increase would be reduced to
8.05%.
Attachment I
FRANCHISE FEE REVENUE
SalesTaxand PotentialFranchiseFeeson ResidentialGasand Electric Bills within CityLimits
City School
Calendar Year State Tax Local Option Local Option
2001 5.00% 1.00% 0.00%
2002 4.00% 1.00% 0.00%
2003 Jan.-June 3.00% 1.00% 0.00%
Franchise Fee
3.00%
3.00%
3.00%
3.00%
17-Jul
Impact on
City Residents
6.OO%
5.00%
4.00%
FRANCHISE FEE REVENUE
Sales Tax and Potential Franchise Fees on Commercial and Industrial Gas and Electric Bills within City Limits
City School
Calendar Year State Tax Local Option Local Option
2002 5.00% 1.00% 0.00%
2003 Jan.-June 5.00% 1.00% 0.00%
Franchise Fee
Impact on
Comm./Ind.
6.00%
6.00%
2004 and beyond
5.00%
5,00%
3.00%
Any electricity or natural gas used in processing is exempt from sales tax, but not exempt from the franchise fee
8.00%
FRANCHISE FEE REVENUE
Sales Tax and Potential Fra,~chise Fees on Sales Tax Exempt Properties within City Limits
Calendar Year
2002
City School Franchise Impact on
State Tax Local Option Local Option Fee Tax Exempt
0.00%
2004 and beyond
3.00% 3.00%
Sales tax exempt includes private nonprofit educational institutions nonprofit private museums [ax-certifying or tax-levying body
or governmental subdivision, including state board of regents, state department of human services, state department of
transportation, all divisions, boards, commissions, agencies, or instrumentalities of state federal, county or municipal
government which do not have earnings going to the benefit of an equity investor or stockholder,
Any electricity or natural gas used in processing is exempt from sales tax, but not exempt from the franchise fee
Attachment 2
Residential
Commercial
Industrial
Utilities/Other
Aquila Rev.
by Soume
69.00%
28.00%
3.00%
Total 100.00%
Revenue from 3% 750,000
Loss of Sales Tax
Revenue in General Fd
Operating Budget (125,000)
Capital Budget (125,000)
Net Gain in Revenue Overall
Net Gain in Revenue for Operating budget
Net Loss i~ Revenue into Capital budget
AIliant Rev.
by Soume
40.50%
i 6.00%
42.60%
0.90%
100.00%
1,196,621
(199,437)
(i99,437)
FRANCHISE FEE REVENUE
Average
by Source
54.75%
22.00%
22.80%
0.45%
Total
Total
Total
Taxable
Value-FY 04
49.00%
40.OO%
5.00%
6.00%
100.00%
1,946,621
(324,437)
(324,437)
1,297,747
1,622,184
(324,437)
Impa~
FY 2004
Effective Date Oct. 1
1,298,396
(216,399)
(210,399)
865.597
1,081,997
(216,399}
Impact
FY 2005
1,946.621
(324,437)
(324,437}
1,297,747
1,622,184
(324,437)
SUMMARY OF DECISION PACKAGE9 BY FUND PER ADOPTED AMENDMENT
GENERAL FUND
FY 0~- FY 09
Cat, Pdorlty Dept Item Amount Amount
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
City-wide
City-wide
City-wide
City-wide
CRy-wide
City-wide
City-wide
CRv-wide
City-wide
,CRy-wide
City-wide
City-wide
Linuor Sales Tax Credit 269,942 269,942
Municipal Assistance 306,715 305,715
Personal Property Tax Replacement 449,968 449,968
Monies and Credit Replacement 44.800 44.800
Homestead Tax Credit change
Impact of health cost increases 413,678 413,678
Hiring freeze/confined space revenue 315.000 315,000
Retirement Incentive 30,000
Health TF savings (unded/over target 68,879 (56,438)
ICAP Contribution-liability insurance 12,000 12.000
Non-Union Wage Freeze
Expense Reductions That Do Not Involve Cutting City Positions in priority order with #1 being cut last.
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
3 Library
4 City Clerk
5 City Manager
6 Emerg. Corem
7 City Manager
8 City Manager
9 Engineering
Reduce programming by 47% for 811 (4,285) (4,285)
Eliminates staff support on CS tests (1.380) (1,350)
Sensitivity Training {3,0001 {3,000)
Training expense for Ride-Alongs (1,665) (1,665)
Eliminate employees gifts (4,072) (4,072)
Wellness Programming (9.700] (9.700)
Eliminates $8.000 for overtime (8,000) [8.000)
11 Recreation
12 City Council
13 City Council
14 City Council
15 Legal Services
I0 City Clerk
17 City Clerk
~8 Annex Maint
19 City Hall
20 City Hall
Eliminate Ice Rink Warming Houses (5,871) (5,871)
Eliminate Boards and Comm. Picnic (2,400) (2,400)
Reduce Travel Professional Conference (13,750) (13,750)
Sister CRV Program (2.000) {2,000)
Eliminated Education & Training
Eliminate microfilming/scanning 18.260) 18.260)
Drop printing of Council Proceedings (1,1901 {1,190)
Enuipment Maint. Contracl (475) (475)
Reduced janitorial services IS,66g) [5,988)
Reduce property maintenance {2.298) (2.298)
Attachment
Cumulative
Fy 04 Total Impact
269.942
575,657
1.025.625
1.070,425
1,070,425 These State funding reductions in credits are being passed on to property tax payers
1,799,103
1,799,103 August 9th for position eliminations or 30 days after Council decision
1,799,103 If you assume that 8 positions are cut and aren't placed thru retirements/attrition
1.829,103 Assuming 3 retirements-Directed to extend offer until August 31, 2003
1,897.982 Target of ~236,000,only came up with $184.805 in 'O4 & $190,713 in
1.909,982 Billing received 4/22/03 which is ~20,000 Idgher than FY 04 budget estimate
827,985
870,185 Restores Education and Training
Solit savings Police OT and Library Materials
870,185 Committment b¢ Council to look at reinstating this next year.
Staff directed to come back to Council with information on utility franchise fee process.
792,614 Restores 84.165 of the 981,736 overtime for STOP. Domestic violence, accreditation
788.329
786.979
783,979
782.314
778,242
768,542
760,542
760,542
754.671
752,271
735,521 Restores 50% of Travel Professional Conference expense. Cost share on expense
736,521
736.821 Don't eliminate this training Impact is 9962
728.261 Eliminates intern to scan records and microfilming of Council records.
727.071 One book would be provided to Library and one in City Clerk's Office
726,596 Reduce regular elevator testing and prey. malnt, from monthly to every two months
720.928 Monday, Wed. and Friday janltodal service and restrooms on summer weekends
718,630 Group replace ballasts defer maintenance if necessary on other items
Lower priority tasks will be delayed
SUMMARY OF DECISION PACKAGES BY FUND PER ADOPTED AMENDMENT
GENERAL FUND
FY 04
Cat, Priority Dept Item Amounf
FY 05
Amounl
Cumulative
Fy 04 Total
Impact
21 City Hall Reduce operating sure,lies 11.059) (1.059)
22 Info Services Reduce network maint to 8hrs/§ days (S.O00) (5,O001
23 Info Services Renegotiated service contracl (5,000) [5.000J
24 Health Eliminates eT for Animal Control Officer (1.494) (1,539)
25 Hea~th Eliminates tamp cmdca; (88~) (902)
2
2
2
2
2
2
2
2 27 info Services
2 27 Legal Services
2 28 Parks
2 29 Planning
2 30 Planning
2 31 City Manager
2 32 Annex Maint
2 33 Annex Maint
2 34 Annex Maim
2 35 City Manager
2 36 Econ, Dev
2 37 City Manager
2 38 City Manager
2 39 City Manager
2 40 City Manager
2 Al Emerg. Camm
2 42 Emerg. Mgmt
2 43 Finance
2 44 Finance
2 45 Health
2 46 Housing Berv
2 47 Human Rights
2 48 Info Services
2 49 info Services
2 50 Recreation
2 51 City Manager
2 52 Police
2 53 Recreation
2 54 Police
2 55 Planning
Uses comp time vs paid overtime (6.835] (6.835)
Splits health insurance between depts {4.301 (4.301)
Eliminate weekend overtime (7,860) (7.860)
Reduce times zoning map updated (2,000)
Eliminate ECiA contracted services (12,000) (12,000)
Drop 25 Laserfiche view only licenses (1,980) (1,980)
Boiler Maintenance 1450) (450)
Property Maintenance {2.088) (2.088)
Property Maintenance (615} (61
Drop Dale Carnegie Training (3.431) (3,431)
Washington DC initiative reduced (13,218) (13,218)
Budget printing--4 copies only (5,360) (5,360)
Meals for budget hearing sessions {2,650) (2.650)
Egminale catering for meetings [2,600) (2.5OO}
Subscriptions Services-Personnel 12.OOO) (2,000)
CAD maintenance shifted to Bll Fund (15.311) (15.311)
Increased federal funds (3,541) (3.541)
Monitor/Collect Loans lnternally-CDBG (6,000) (6,000)
Recharge addl OH to parking 14.OO0) (4,000)
State reimbursement of activities (5.000) (5.400)
Shift veidcle expense.reduce supplies (2,200) (2,200)
Shift 810,000 salaries to HUD funding (10.000) {10.000)
ActuaJ savings on SOL more than antic. (1,702) {1 702)
Email management moved in hOUSe {13,056) (I 6,783)
ncrease Admin. Overhead Chg to Golf (1 O.000) I0.000]
College Reimbursement Funds (7,400) {7.400]
Eliminates Graphic Artist oosition (60,858) (B0,8§8)
CDBG fm3ds pay for 50% swim pass (13,528) (13.528)
Reimb for tickets issued by Police 120.000) (20.OOO)
Eliminate staff membersl]ip in APWA 1900) (900)
717,571
712.571
670,696
665.696
664.202
663,317
663.317
656.482
652,181
644,321
642.321
630.321
628,341
627,891
625,803
625.188
621.757
608.539
Restores $4,000 of proposed 945,875 cut
Limited after hour time spent on inspections
Same amount of savings in Pogce
Reduced from 50 to 25 and dropped 2 full licenses.
Reduce boiler checks from weekly to every other week during heating season
Reduce nightly custodial service and preserve restroom and floor care nightly
Reduce frequency of rug replacement servic from biweekly to monthly
603.179 CD ROM available to public at cost
600.529
598,O29
596,029
580.717 Net savings {expense less 1/3 county reimbursement)
577 176
571,176 Revenue will go to Finance instead of to financial institution
567,176
562.176 Activities performed will be reimbursed for FY 04 & 05 at min. (ia. bioterrorism]
559,976
549,976 Housing cases would take priority
548.274
535,216
525,216
517.816
456.958 Funds public information personnel in Police end Fire with Cable Franchise fees
443.430
423.430
422,530 Will maintain City ~lanner's membership
increase n Revenues by Department--Not Priority
3 1 Building Increased contractor license fees
3 2 City Clerk Increase Business License Fees
(17,650) {17.650)
(4,950) 112.900)
404.880 Additional ~25 per contractor license fee
399,930 Business gcenses from 950 to 975. taxicab from 95 to $ fO and add special event
SUMMARY OF DECISION PACKAGES BY FUND PER ADOPTED AMENDMENT
GENERAL FUND
Cat. Priority Dept Item
FY 04 FY 05 Cumulative
Amount Amount Fy 04 Total Impact
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3 Emerg. Corem
4 Engineering
§ Engineering
8 Engineering
7 Engineering
8 Fire
9 Fire
I0 Five Flags
11 Five Flags
12 Five Flags
13 Five Flags
14 Health
! 5 Health
)g Housing Serv
)7 Legal Services
18 Library
19 Parks
20 Parks
21 Planning
26 Police
27 Recreation
28 Recreation
29 Recreation
$20 charge for each tape made (2,000i 12.000]
Adds traffic control permit fee $50 {2,800) (2.5001
Increase I~ermit fee for dumester (5,850) (8,850)
Increases license (1,800) (1.800)
Increase Sidewalk inspection fee (21.000) (21.000)
Adds $1.25/ capita charge )or hazmat (33,321 (33,321)
Confined space charges to industries )4.5001 (4,§00)
increase Labor Rates {4,8651 {4,865)
Add 81.00 sumharge on tickets sold (34,500] {34.500)
Increases Public Skating Fees (2.0§0) 12.050)
Increase skate rental fee 81.00 to $1.50 {1.175) 1,175}
Incr. late penalty on dog/cat license {3,750) 13.7§0)
Increases dog/cat license fees (10,841) (17,400)
Increase rental housin~ fees (3,595) (3,595)
Payment for Bd of Review tax appeals (10,000) (10,0001
Meeting room fees.interqibrary loan fee (4,300) 14,300)
Increase pavilion rental fees 15% (7,800) 17.800)
Increase campm~ fees (9,§74) {9,574)
New billboard inspection fees {7.800) (7,600)
Increase spec. exception/setback fee 12.800) {2,800)
Zoning fees increased in budget (58,620} las.620)
Processing fee for/reDounded vehicles (20,400) (20.400)
Increase Pla,/ Lot/Tot Lot fees bv 85 (4,000) 14.000)
Increase After School Sports fee by 83 (3.750) (3,750)
increase youth sports fees bv ~3.00 (2.610} (2.610)
17-Jul-2003
397.930
395.430
389,580
387,780
366.780
333.459
328.959
324,094
289,594
287,544
286,369
282.619
271,778
268.183
258,183
253,883 Should total193.970
246.083
236,509
228.709
225.909
167,289
167,289
167.289 Impactof Police decision package
146.889
142,889 From ~lOto ~18
I39,139
136.529
Revocable and irlevocable License processing fee for use of public right of way
$50 if defect is found as part of inspection. ~30 for sidewalk permit requested at Office
Per capita for population outside the city vs currently flat fee to County of 8g,O00
From ~3.50 to ~4.00 for adults and ~2.00 to 82.50 for vouth
+ 82 for spayed/neutered [~ 10}. + s7 for non-spay/non-neutered [82]5)
From 88.§0 to ~9.00 per unit. last increased in 1998
Expenditure Reductions That Involve Elimination of City Positions in priority order with #t being cut lest.
Replace FT Fiscal Coord w PT
(42,206) (42,206)
136.529
74,323
74.323
74.323
74,323
74,323
32,117 PT Account CIerklforpayroll
32,117
32,117 Asslgnedto downtown
32,117
suMMARY OF DECISION PACKAGES BY FUND PER ADOPTED AMENDMENT
GENERAL FUND
FY 04 FY og
Cat. PrlorRy Dept Item Amount Amount
4
4
4
4
4
4
4
4
4
13 City Manager
14
16[
21 Airport
Admin. Serv Mgr->Budget Director (18,135) (33,272)
Eliminate LEO FT end PT positions
TRANSIT FUND (part of General Fund tax asking shortfall)
O O Transit State Transit Assistance reduction
1
3
{73.614J {73,614)
8000 8,000
3 3 Transit Equalize garage recharge rate 22,049 22,049
2
Cumulative
Fy 04 Total Impact
17-Ju[-2003
13,982
13,982
13,982
13,982
13,982
13,982 Keepin FY 04 dueto GASB34 changes
13,982
13,982 Airportrequestto usethesefundsto help address mveuue sho[tfalldue to Northwest
{59,632)
(51,632)
(51,632)
{51,632)
(31,583)lmpactof Operations and Maint. decision package
ROAD USE TAX FUND
0 00~er. & Maint. Increased health costs 30.778 30,778
0 Use non-recurring reserves in FY 04 and replenish in FY 08
TotaL. General Fund,Transit, RUTF O (732,670)
SUMMARY OF DECISION PACKAGES BY FUND PER ADOPTED AMENDMENT
WATER OPERATING
Categ Priority Dept 0 Water
City-Wide
2 Finance
2 Water
2 Water
2 Water
3 Water
Item Amount Amounl
Increased healtb costs 28.028 28.028
Lower Step due to retirement (1.071) { 1 ,O71)
Reduce consultant services roi to CIPs 12.000I {2,000)
Reduced water demand Ouebecor 58.567 58.667
Rate adjustment relative to Ouebecor 158.567) (58.567)
Total. Water Operating Fund 5,457 5.457
Fy 04 Total
Savings in Finance offset by reduced recharges to the utilities
Rate increase of 1,68% on tod of 3% increased adopted by Council for FY 04
Use Water Operating fund balance until impact of Quebecor is more certain
SEWER OPERATING
Categ Priority Dept
0 Oper. & Maint
City-Wide
2 Finance
2 WPC Plant
2 WPC Plant
2 WPC Plant
FY 04 FY 0S Cumulative
Item Amount Amount Fy 04 Total
Increased health costs 28,790 28,790
Lower Step due to retirement (1,071) (1,071)
Renting oxygen generating system 120.322} {34.842)
Total. Sewer Operating Fund (694) (7.123)
Impact
Savings in Finance offset bv reduced recharges to the utilities
Can avoid this reduction of $2.475
Can avoid this reduction of $5.61S
Equipment installation in FY 04
REFUSE OPERATING
Categ Priority Dept
0 ODer, & Maim.
City-Wide
2 Finance
3 Oper. & Maint,
3 O~er. & Major,
Item
FY O4
Amount
FY OS Cumulative
AmounI Fy 04 Total
Increased health costs 24,719 24.719
Lower Step due to retirement (1,071) (1,071)
Increase fee from 87.49 to ~7.60/month (21,700) (21,700)
Increase appliance oickup fee $10- > $14
Total. Refuse Collection 1.948 1,948
Savings in Finance offset bv reduced recharges to the utilities
Still 20% fewer than the next lowest solid waster collection fee of other ten largest cities
Can avoid tbis increase to generate ~2,O00
STORMWATER OPERATING
Categ Priority Dept Item
2 Finance Lower Step due to retiremenl
FY 04
Amount
(1,071)
FY 05 Cumulative
Amom~t Fy 04 Total
{t,07t)
Impact
Savings in Finance offset by reduced recharges to the utilities
SUMMARY OF DECISION PACKAGES BY FUND PER ADOPTED AMENDMENT
Total. Stormwater Fund 1.071 ) ( 1,071)
LANDFILL OPERATING FUND
Categ Prlodty Dept Item
FY 04 FY 05 Cumulative
Amount Amount Fy 04 Total
Oper & Maint
Citv-Wide
ODer & Malnt
Increased health costs 10,765 10,765
Non-union wage adjustments
Total. Landfill Oper. Fund 0 O
No impact as covered by 9.75 per ton fee increased already scheduled for 7-1-O3
PARKING
Categ Priority Dept
0 Parking
City-Wide
0 Parking
2 Finance
3 Parking
4 Parking
4 Parking
FY 04 FY 05 Cumulative
Item Amount Amoun! Fy 04 Total
Increased health costs 11,513 11,513
Shortfag in revenues 30.000 30.000
Recbarge addl OH to parking 4.000 4.000
Reimburse police for tickets written 20,000 20,000
Eliminate a Maintenance worker (49,911) (49,911)
Reduce Cashier hours .57 FTE (13.988) {13,988)
Total, Parking Opar. Fund 1.614 1,614
Impact
4th Street Ramp
Look at rate increase decision packages in FY 05 if necessary.
UDAG FUNDS
Categ Priority Dept
0 Comm Dev.
City Wide
2 Purch of Serv
Item
Increased heaRh costs
FY 04
Amount
717
FY 05 Cumulative
Amount Fy 04 Total
717
TotaL. UDAG Fund 0 O
Impact
Reduction no longer needed $717
COMMUNITY DEV. FUNDS
Ceteg Priority Dept Item
0 City Wide
City Wide
2 Econ. Dev.
2 Housing/CD
Increased health costs
FY 04
Amount
12,799
FY 0S Cumulative
Amount Fy 04 Total
12,799
Impact
SUMMARY OF DECISION PACKAGES BY FUND PER ADOPTED AMENDMENT
2 Housing/CD /~ l;I ~ih ~ ~ L~ j~ j~Ji~'~~~~ g{~
2 Housing/CD General Liability Insurance (1.500) (1.500)
2 Housing/CD ~P~ ~L U~¢~ ~ ~l~qt ~g~¢~~~
Total. Community Dev, Block Grant
Reduced due to error in spreading costs
LEAD PAINT PROGRAM
Categ Priority Dept
2 Housing/CD
Housing/CD
FY 04 FY OS Cumulative
Item Amount Amount Fy 04 Total
Shift vehicle exoense,reduce supplies
Impact
SECTION 8 HOUBING
Categ Priority Dept
City Wide
Housing/CD
2 Housing/CD
2 Housin0/CD
2 Housing/CD
2 Housing/CD
2 Housing/CO
4 Housing/CD
CABLE TV FUND
Categ Priority Dept
O Cable TV
0 Cable TV
City Wide
2 Annex Maim
2 Cable TV
2 Cable TV
2 Cable TV
2 Cable TV
2 Cable TV
2 City Managers
FY 04 FY 0E Cumulative
Item Amount Amount Fy 04 Total
Increased health costs 13,853 13.853
Reduce Dostage, more internet (500) (5OO)
Staff to donate refreshments-FSS (200) (200}
Mileage reduced, fewer visits (590) (590)
Reduced telephone long distance (700) (700)
Change background checks to later (2,250) {2.250)
redact of increase background checks
Total, Section 8 9,613 9.613
FY 04 FY 05 Cumulative
Item Amount Amount Fy 04 Total
ncreased health insurance costs 7.015 7,O15
FY 2004 Operating Budget Surplus {7,01§) (7,015]
Property Maintenance
qeduce membership expense
Reduce Machinery/Equip. Rental
Eliminate Promotional activities
Reduce Subscriptions
Reduce Subscriptions
Impact
Police 910 fee for background checks
Impact
Estimate of FY 04/05 surplus $45.600/~42,000 but uncertain--negotiations in process,
Reduction no longer needed
Reduction no longer needed
Reduction no longer needed
Reduction no longer needed
Reduction no longer needed
Reduction no tonger needed
City Focus to be insert in utility bills (quarterly)
SUMMARY OF DECISION PACKAGES BY FUND PER ADOPTED AMENDMENT
City Managers Eliminate City Expo Evenl
City Managers Graphic Artist position eliminated ¢60,8581 (60,858}
Police Charge PI function of Police & Fire 80.858 00,858
Total, Cable TV Fund 0 0
Position and related supplies and services $60.858
SERVICE FUND
Categ Priority Dept
FY 04 FY 0§ Cumulative
Item Amount Amount Fy 04 Total
Engineering Increased health costs-Engineering 18,743 18.743
City Wide Reduce recharges based on lower rates
Oper, & Maint. Increased health costs-Garage 12,360 12,360
Engineering Eliminate Traffic Engineering position (8,727) (8,727)
Impact
Non-union wage adjustment missed on previous summary
Increase recharges to projects and to garage recharges