The URL can be used to link to this page

Home My WebLink About2013-08-14 PACKET 12.B.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 8/14/2013 . • PREPARED BY Administration Ryan Schroeder ORIGINATING DEPARTMENT DEPARTMENT HEAD ****�**��********************�***�************** COUNCIL ACTION REQUEST Workshop: Budget. SUPPORTING DOCUMENTS: ❑ MEMO/LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS r �� —_._ � ity Administrator Date ��*****:�*��:��**********�******************��*** COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER V:\nbelscamper\Templates\City CouncilWction Form.doc Cottage / Grove � Pride and PrpSPerity Meet To: City Council From: Ryan R. Schroeder, City Administrator Robin Roland, Finance Director Date: August 9, 2013 Subject: Budget Workshop At the completion of the August 7 Council meeting on the draft 2014 budget it was determined that a workshop was required on August 14 for further direction on the preliminary budget and levy. Enclosed are materials to facilitate further Council discussion in preparation for the August 21, 2013 budget open house. Enclosed, please find the following: 1 2 3 4 5 6 7 8 9 Spreadsheet of open discussion items (entitled Council Budget Decision Items 080813) Fund Cash Balance Goals Cash Balance Growth Targets 2014-2020 Pavement Management 2013-2022 Projected Debt Levies Franchise Fee 2013 Revenues Information on Fleet Internal Service Fund Storm Water Maintenance Fund Projected Operating Results 2013 Rate Study Proposed Tax Levy The intent of the workshop is to provide direction to staff on the items presented in the first exhibit. The balance of the exhibits is background narratives and data which may inform the discussion. We continue to refine assumptions and analysis regarding non-general fund cash and how those funds contribute or draw from general revenues into the future. Exhibits 2, 3, and 4 attempt to project our individual fund cash requirements and rationale for those requirements. Essentially, these exhibits suggest that most funds of the City meet or exceed our financial targets. Going forward, it is suggested that additional resources should be identified and allocated toward equipment replacement, ice arena, building replacement, golf, fleet, and information services. Additionally, debt incurred due to future pavement management projects will continue to be an area to be monitored closely by the City Council. None of the analysis noted here, however, impacts 2014 except that it suggests potential levy impacts in future years. 4 � The storm water utility is an exception to the rule for 2014. We began experiencing deficits within this operation in 2012. These deficits are projected to continue unabated into the future without revenue increases, expenditure decreases or both. Absent adjustment the fund is anticipated to have negative cash in 2014. We conducted a study of utility rates within 35 peer communities for 2013 (enclosed). The impact of the rates in peer communities if charged to the average Cottage Grove customer would be a monthly charge of $45.69. This compares to actual rates charged in Cottage Grove of $37.16 to the average customer (18.7% savings to our customers from the averaged rates charged in peer communities). We are projecting a need to increase our storm water fee by $2.40/year or $0.20/month. Staff has proposed a preliminary levy of $12,776,100. Included is an operating levy of $11,873,030 and a debt levy of $906,000 of which $327,070 is due to the 2013 pavement management program (C1, C2, and Hinton). The proposed levy relates to past levies as follows: 2008: $12,184,000 2009: $12,446,500 2010: $12,155,000 2011: $12,241,250 2012: $12,241,250 2013: $12,241,250 2014: $12,776,100 proposed Of note is that the proposed 2014 levy is but 2.648% above that which the City levied in 2009 and 4.860% above the 2008 levy. That compares to levy growth in the balance of the County (all of the other cities) from $77,093,202 in 2008 to $85,607,783 in 2012 (11.0445%). We anticipate that levies in the balance of Washington County cities will again increase for 2013. The 2013 tax rate for urban properties in Cottage Grove is 45.046 and for those in the rural taxing district the rate is 32.253. Those rates compare to our peer group 2013 levies as follows: Washington and Dakota county cities: 49.0897 Cities of population 20,000 to 60,000: 45.78 Major Metro Cities (63 cities): 47.007 At present, we are projecting that the preliminary levy as proposed will not increase the levy rate in Cottage Grove beyond the current 45.046 rate. At this projected rate we are anticipating that the owner of an average market value home will continue to pay less property tax to the City than was paid on this same home in 2004 as follows: Year Tax Rate City Tax 2004 43.66 $819.44 2005 39.17 $829.62 2006 37.93 $841.94 2007 35.81 $859.15 2008 35.19 $859.67 2009 34.63 $844.67 2010 35.42 $807.47 2011 38.10 $790.09 2012 41.42 $766.48 2013 45.04 $754.42 2014 45.04 $794.96 Council Action: Provide budget direction Councii Budget Decision Items 080813 Board Item Engineering Intern Street PSW January Hire Eliminate PW Intern Eliminate EAB Treatment Eliminate PW Lift Eliminate Ice Lift Correct Storm Fund Deficit Bi-annual Rental Inspections Correct Sealcoat Deficit Pay CGAA Insurance Fire/Paramedic Jan. Hire Convert RO to Sp Rev Fund Allocate Tower Leases to Parks Capital Fund Allow Electronic Biliboards Outsource fleet repairs Shared Siren with Woodbury Paramedic Shared Services Pave RO Trails / Road In-house Ice Arena Chiller Replacement Allocate BEC Tower Leases to BEC Continue PM Debt Issuance Note: Debt levy of $347,000* Authorize Prelim Levy @ $12,776,100 Total 2014 Gen. Fund Impact Impact Recommendation Council Decision (5,580) (1,395) One year ailocation; review for 2015 (64,500) (32,250) July Start Date as Proposed 15,550 15,550 Maintain Intern in Budget 162,000 162,000 For 2016 Budget decision - - Retain in Budget for more analysis 8,500 - Retain in Budget for more analysis - Fee increase in 2014 of 5% and 2015 of 5% Fee increase in 2014 to $75 per year, billed at $150 in the year of inspection - Fee increase in 2017 of XXX (5,800) (5,800) Cap at $5800 (80,000) (20,000) Increase Council Contingency for July - - Convert to Sp. Rev Fund 360,000 - Additional Utility Fee increase needed Allocation to Future Projects ? ? Needs more research ? ? Needs more research ? ? Needs more research � � � � $0* $0* $0* $0* 390,170 118,105 Needs more research Need budget allocation either way Future Budget decision Move from Bldg Replace to BEC Allocate to BEC *Assumed in Recommended Budget Authorize Debt issuance NA *Assumed in Recommended Budget Fund Cash Balance Goals August 2013 1. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: Strategy: 2. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Equipment Replacement $1,322,640 $2,000,000 Replacement of Fleet per 10 year Schedule Five year fleet replacement schedule @$3,543,000 2020 Internal Departments and Fund Balance Policy 2016 — 2020 billings to Depts of purchasing plus $100K annually Storm Water Maintenance $133,124 $400,000 Cash Flow for NPDES/MS4 Required Maintenance At 50% of historical annual expenditures Issues: Operating Deficits Projected beginning 2014 Cash Target Date: 2016 Source of Revenue Storm Water Utility Fees Strategy: Adopt Utility Fee increase from $48 to $50 for 2014; Cap annual expenditures @ $650,000 2014-2016; Increase rate to $52 for 2017 3. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: Strategy: Ice Arena $120, 102 $500,000 Provide for cash flow and asset replacement $1.2 million of capital outlay in ten years plus coolant change over 2023 Customer Charges and Tax Levy support Increase Levy support from 2015-2023 by $50,000 Per year with balance from customer revenues; Debt Issuance for coolant change over 4. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date Source of Revenue: Strategy: 5. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: Strategy: � EDA $250,681 $150,000 Maintain cash flow for mission support Need to continue tax levy to maintain cash 2013; Monitor Tax Levy Maintain expenditures at or below revenue ED Trust $2,198,032 $1,350,000 Maintain Resources for EDA Priority Projects EDA Goals exceed Trust resources; priority required 2013; Monitor Gifts, Grants, Interest Earnings; repayment of $1.2 Million River Oaks loan at $120K/year 2015-2024 Ensure EDA investments do not exceed available Cash; if projected grants are not received annual Operating will receive corresponding expenditure Decrease Fund Name: PIR (FKA Closed Debt/Closed Construction) YE 2013 Projected Cash: $1,835,853 Target Cash: $2,000,000 Basis of Target: Maintain Cash Flow for construction projects Issues: $3.5 million Accounts Receivable from PSCH Project Repaid 2023-2032 @ $185K/year Cash Target Date: 2016 Source of Revenue: Closed projects and retired debt funds and PSCH Strategy: 7. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Loan repayment; interest earnings Maintain Long Term Financial Plan to repay internal Loans Future Projects $2,163,292 $1,800,000 Maintain Cash for Developer, PM and Park Projects Fund is mostly designated 2013; Monitor Source of Revenue: Developer Payments, Fund Balance policy, Tower Cell Leases, Upper Ravine Major Road Fee Strategy: Ensure Project costs do not drop cash below target 8. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: 9. Fund Name: YE 2013 Projected Cash: Target Cash: Basis of Target Issues: Cash Target Date: Source of Revenue 10. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue 11. Fund Name: YE 2013 Projected Cash Target Cash: MSA Construction $57,754 $2,000,000 Historical Cash Reserve Level provides opportunity To cash flow projects; MSA annual allocation from the State is approximately $1.4 million per year; available for draw on 8/1/13 was $2,446,675 Cash reserves provide opportunity to schedule debt 2015 MSA Transfers from State and Benefit Assessments; 2013 projects total estimated $1.5 million return to the Fund; future projects create similar opportunity Municipal Building Fund $1,602,232 $2,500,000 Provide 25% of Projected Building Replacement Costs within Five Year CIP $10 million in projects in CIP for 2017 2017 Fund Balance Policy plus levy of $200,000 in Each of 2015, 2016, 2017 Park Trust $212,064 $100,000 Council Policy to maintain balance at $100K or more Informal policy to construct parks concurrent with new Subdivision development creates necessity for cash reserves 2013; monitor Developer Park Dedication Fees; interest Water Area $1,561,741 $2,500,000 Basis of Target: Apportionment of future infrastructure needs of $70,800,000 in systems plan Issues: Expenditures require nexus to funding source Cash Target Date: 2023 Source of Revenue: Payments from C/I and Residential new development if►•�111T�► .FTi'�t�'I YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: 13. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: 14. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue 15. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Sewer Area ($842,694) $1,500,000 Apportionment of future infrastructure needs of $15,000,000 in systems plan Expenditures require nexus to funding source 2023 Payments from C/I and Residential new development Storm Water Area $1,702,176 $2,500,000 Apportionment of future infrastructure needs of $43,468,000 in systems plan Expenditures require nexus to funding source 2023 Payments from C/I and Residential new development Water Operating $3,783,615 $850,000 + CIP Reserve of $875,000 =$1,725,000 25% of annual expenditures plus 25% of CIP projects Fund provides for Tower painting, miscellaneous Infrastructure repairs and pavement management Which is estimated at $3.5 million from 2013 to 2024; 2013 Utility customer charges, interest revenue Sewer Operating $2,185,532 $850,000 + CIP Reserve of $875,000 = $1,725,000 25% of annual expenditures plus 25% of CIP projects; Fund provides for miscellaneous infrastructure repairs Pipe lining, and pavement management pipe replace- ment in existing developments Issues: PM Projects from 2013 to 2024 estimated at $3.5 Cash Target Date: Source of Revenue: 16. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: 17. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target Issues: Cash Target Date: Source of Revenue: 18. Fund Name: YE 2013 Projected Cash: Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: 19. Fund Name: YE 2013 Projected Cash Target Cash: million 2013 Utility customer charges, interest revenue Street Light Operating $1,561,487 $375,000 + CIP Reserve of $1,290,000 = $1,665,000 25% of annual expenditures plus 25% of CIP projects Fund provides for conduit, maintenance, replacement Of light standards and fixtures and traffic signals; Within CIP those costs are estimated at $5,158,700 2014 utility customers; interest Golf Course ($291,454) $750,000 25% of annual revenue plus 25% of CIP projects Lease terminates in 2023; need extension for signif- icant capital improvement between 2014 and 2023 capital needs estimated at $1.2 million; debt to ED Trust of $1.2 million 2020 (with lease renewal) customer charges and levy support of $200,000/ year between 2015 and 2023 CG EMS $613, 549 $500,000 25% projected annual expenditures Health Care changes could increase write-offs 2013; monitor customer charges Self Insurance $2,323,203 $2,000,000 Basis of Target: Issues: Cash Target Date: Source of Revenue 20. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue: 21. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue 22. Fund Name: YE 2013 Projected Cash Target Cash: Basis of Target: Issues: Cash Target Date: Source of Revenue 100% of premium and projected claims/risk and Deductibles for property casualty, workers comp And health benefit lines Exposure for self insured risks require cash Coverage 2013; monitor Departmental charges, insurance rebates, interest Fleet $357,785 $500,000 25°/o of annual expenditures Cash flow needs set per GFOA 2015 Departmental Charges Information Services $72,292 $150,000 33% of projected expenditures Provide for 4 year replacernent schedule for IT hardware 2023 Departmental Charges Sealcoating $209,912 $150, 000 25% of projected expenditures Fund provides for sealcoating of streets and bit Trails, curb and sidewalk replacement, trail Replacement in existing neighborhoods, and Crack sealing material and contracted services Expenditures capped at $650,000 2014-17 2020 Franchise fees; deficits are projected through 2016; Fee increase required for 2017; base meter charge Estimated to increase to $2/meter/month up from $1.65 in 2013 Fund Balance Cash Goals 080813 Fund Equip R Storm Maint. Storm Maint. I ce EDA ED Trust PIR Future Projects MSA Building Park Trust Water Area Sewer Area Storm Area Water Operating Sewer Operating Street Light Golf EMS Self Insurance Fleet IS Sealcoating Cash Balance Growth Targets 2014-2020 Gen. F Utility Impacted General Fund Cash Allocation Goals By Year Increase impact Years 2015 2016 2017 2018 2019 2020 2015-2020 $100,000 2016-2020 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 25,000 2014-16 50,000 2017-+ $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000 $50,000 2015-2023 Maintain Maintain Current Plan $360,000 2014-+ Transfer of Cell leases Maintain $200,000 2015-2017 $200,000 $200,000 $200,000 $600,000 $200,000 $140,000 $10,000 $700,000 Increase Increase Maintain Maintain Maintain Maintain 2014-+ Supplant loss of cell leases Maintain Maintain 2015-2023 Maintain Maintain 2015 2015-2023 2017 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,200,000 $140,000 $140,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $60,000 $600,000 $560,000 $560,000 $360,000 $360,000 $360,000 $2,800,000 CITY OF COTTAGE GROVE PAVEMENT MANAGEMENT PROJECTS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 E of Jamaica, N of 80th, W of Kingston Pavement Management C1 3,783,000 E of Jamaica, S of 70th, W of Joliet Pavement Management C2 3,636,000 S of 90th, E of Islay, N of Jareau Pavement Management F1 3,025,800 S of 80th, E of W Centrai Corridor, W of E Centrai Corridor, N of Woodridge Pavement Management F2 2,602,900 S of Pinehill Elementary, N of 90th, E of Hadley, W of Harkness including Harkness Pavement Management D2 1,431,500 Various Areas Pavement Management B1 2,220,600 Jamaica Ridge, JR 2nd, E Meadow Cliff, Sandy Hills 5th, Eightieth Piace, Eightieth Place W Pavement Management F3 2,448,300 80th Place S, Pine Meadows 1 st, 3rd, 4th, & 5th, Sandy Hills 7th & 8th Pavement Management F5 3,213,000 Jenner, Jocelyn, and 79th Street: S of Kingston, N of 80th Pavement Management C3 585,700 S of 70th, N of Indian, W of Joliet, E of Keats Pavement Management C5 1,195,800 S of 90th, N of 100th, E of Hadley, Developments except Pine Glen Additions Pavement Management D1 1,789,500 S of 90th, N of 100th, E of Hadley, Pine Gien Additions Pavement Management D3 892,600 S of Kingston, N of 80th, W of Keats, E of 78th including 78th Pavement Management C4 1,317,700 Various Pavement Management F4 3,123,500 Old Cottage Grove Reconstruction Pavement Mgmt plus instali utilities 4,000,000 Pavement Management-Rural Areas Mill and overiay project 2,000,000 7,419,000 3,025,800 2,602,900 3,652,100 2,448,300 3,213,000 1,781,500 1,789,500 2,210,300 3,123,500 4,000,000 2,000,000 otherfunds 883,200 828,800 1,162,900 779,600 642,600 356,300 357,900 442,060 624,700 800,000 400,000 Assessments 2,365,000 1,361,600 1,171,300 1,643,500 1,101,700 1,445,850 801,675 805,275 994,635 1,405,575 1,800,000 900,000 City levy portion 5,054,000 781,000 602,800 845,700 567,000 1,124,550 623,525 626,325 773,605 1,093,225 1,400,000 700,000 Bond for 7,600,000 1,734,120 1,422,710 1,996,150 1,338,190 2,136,645 1,184,698 1,190,018 1,469,850 2,077,128 annual debt service (@ 5%) 675,000 162,000 132,786 186,307 125,000 199,420 110,000 111,000 135,000 194,000 less assessments 253,213 81,000 62,000 90,000 62,500 95,000 55,000 55,000 65,000 97,000 debt levy amount 421,787 81,000 70,786 96,307 62,500 104,420 55,000 56,000 70,000 97,000 Existing pavement Required Tax management other debt Levy debt levies levies total levies 2014 327,070 327,070 342,609 240,000 909,679 2015 347,000 81,000 428,000 342,609 240,000 770,609 2016� 375,325 ( 81,000 I 70,786 I I I I I � I I � � 527,111 263,141 240,000 790,252 2017 375,325 81,000 70,786 96,307 623,418 259,760 240,000 883,178 2018I 380,000 � 81,000 I 70,786 � 96,307 I 62,500 I I � I � � � � 690,593 266,086 240,000 956,679 2019 ' 385,000 ' 81,000 70,786 ' 96,307 ` 62,500 104,420 800,013 271,268 240,000 1,071,281 2020� 390,000 I 81,000 � 70,786 � 96,307 I 62,500 I 104,420 I 55,000 I � � � I ( 860,013 270,569 240,000 1,130,582 2021 - 395,000 81,000 70,786 96,307 62,500 104,420 55,000 56,000 921,013 269,456 240,000 1,190,469 2022� 405,000 � 81,000 I 70,786 I 96,307 I 62,500 � 104,420 I 55,000 I 56,000 � 70,000 I I I � 1,001,013 272,916 240,000 1,273,929 2023 420,000 ` 81,000 70,786 96,307 62,500 104,420 55,000 ' S6,000 70,000 97,000 1,113,013 270,392 240,000 1,383,405 2024I 425,000 � 81,000 ( 70,786 � 96,307 ( 62,500 � 104,420 I 55,000 � 56,000 I 70,000 � 97,000 I � I 1,118,013 87,342 240,000 1,205,355 2025 445,000 81,000 70,786 96,307 62,500 104,420 55,000 56,000 70,000 97,000 ' 1,138,013 88,917 240,000 1,226,930 2026� 450,000 � 81,000 � 70,786 � 96,307 I 62,500 I 104,420 � 55,000 I 56,000 I 70,000 � 97,000 I � I 1,143,013 48,340 240,000 1,191,353 2027 450,000 81,000 70,786 96,307 62,500 iO4,420 "55,000 - 56,000 70,000 97,000 1,143,018 240,000 1,143,013 2028I 455,000 � 81,000 � 70,786 I 96,307 I 62,500 � 104,420 I 55,000 I 56,000 � 70,000 I 97,000 � I I 1,148,013 240,000 1,148,013 2029 81,000 7p,786 96,307 62,500 104,420 55,000 `' S6,000 70,000 97,000 693,013 693,013 2030� � I 70,786 � 96,307 I 62,500 � 104,420 I 55,000 I 56,000 � 70,000 � 97,000 I I I 612,013 612,013 2031 96,307 `62,500 904,420 55,000 56,000 70,000 97,000 541,227 541,227 2032� I � I � 62,500 I 104,420 I 55,000 � 56,000 I 70,000 � 97,000 � I � 444,920 444,920 2033 104,420 55,000 56,000 70,000 97,000 382,420 382,420 2034I I I I � I I 55,000 I 56,000 I 70,000 I 97,000 � I I 278,000 278,000 2035 56,000 70,000 97,000 223,000 223,000 20361 I I ( I I I I I �o,000 � s�,000 I I I �s�,000 �s�,000 2037 97,000 97,000 97,000 8/9/2013 Franchise Fee Customer Class Electric-Xcel Residential Small C/I — N/D Small C/I — Demand Large C/I Public Street Lighting Muni Pumping — N/D Muni Pumping — Demand TOTAL # of Customers 2010/2011/2012 Annual Amount /2013 Generated Rate/Month Gas-Xcel Residential Commercial Firm N/D Commercial Firm Demand Smali Interruptible Large Interruptible Firm Transportation Interruptible Transportation TOTAL 12,482 $1.65 $247,144 0 $1.65 0 0 $8.25 0 44 $33.00 17,424 57 $3.30 2,257 0 $0.83 p 202 $8.25 19,998 $286,823 11,023 356 2 1 0 0 1 $1.65 $218,255 $4.95 21,146 $8.25 198 $16.50 198 $24.75 0 $24.75 0 $24.75 297 $240,095 Total Electric/Gas Xcel $526,918 Gas-Centerpoint Residential Commercial Firm N/D Commercial Firm Demand Small Interruptible Large Interruptible Firm Transportation Interruptible Transportation 350 $1.65 $6,930 20 $4.95 1,188 20 $8.25 1,980 1 $16.50 198 0 $24.75 0 0 $24.75 0 1 $24.75 297 Total Gas Centerpoint $10,593 Franchise Fees Xcel and Centerpoint $537,511 August 9, 2013 INFORMATION ON FLEET INTERNAL SERVICE FUND Brenda called three auto repair shops on Thursday for their labor and parts rates. She found the following information: Shop #1— CG: $ 118/hour and 25%-30% parts marl<up Shop #2 - CG: $ 105/hour and 200% parts marl<up (she was pretty sure he gave her the wrong markup) Dealership: $120/hour and 45% parts markup The shops do charge flat rates for some services that we do not. The best example is an oil change (5 quarts oil). Shop #1 charge 29.99 and Shop #2 charges 19.99. Our rate is $75/hour and 6% parts markup. As she mentioned Wednesday evening, we do not charge a parts marl<up for a vehicle that we send out to another repair facility. The fleet fund simply bills this out at the cost of the invoice. A parts marl<up had been charged several years ago on these types of repairs and we stopped this practice. Attached is the Fleet Analysis that Brenda does each year with budget. We attempt to breal< even each year. Since 2007 our net income (loss) has been: Net Income/(Loss) 2012 (32,106) 2011 18,381 2010 (37,811) 2009 22,522 2008 3,272 2007 46,404 Total 20,662 The average for this six year period is $3,443 per year. Labor Rate Each month we do a journal entry for billing the departments. In preparing that entry, Brenda verifies that we are recovering our personnel costs plus $30,000 in other costs (uniform service, mat service, communication, training, etc.) in the hourly labor charge. The labor costs billed in relation to the actual personnel cost plus $30,000 is as follows: 2012 111.82% 2011 124.35% 2010 97.96% 2009 109.48 % 2008 104.06 % 2007 112.09 % August 9, 2013 If the ratio billed in relation to these costs starts to drop, we impiement a rate increase. 2010 included the annual leave payout of an employee due to retirement. Our last rate increase was in April 2009 when the rate changed to $75/hour from $70/hour. Parts Markup The 6% markup is to help recover the other costs in the fund such as: • Property insurance (Self Insurance Fund) • MIS charge (IT Fund) • Bond payment for PW expansion (Water Fund) • Deprecation Any adjustments to the labor rate would result in a corresponding adjustment to the parts markup to offset the change. Fleet Analysis 2009-2015 75/hr 75/hr 75/hr 75/hr 70/hr 70/hr 2015 2014 2013 2012 2011 2010 2009 2008 2007 Budget Budget Budget Actual Actual Actual Actual Actual Actual Opera[in revenue Fuel Userfee�Fud 487,100 417,700 399,000 338,120 331,883 284,905 204,757 339,359 290,639 Fuel purcha�t�c 487,100 417,000 399,000 336,278 326,884 273,726 187,147 331,206 278,889 Fuel isiand/repairs - - - - 402 - 3,081 898 1,391 N�income lass fromfueloperations - 700 - 1,842 4,597 11,179 14,529 7,255 10,359 R� I U�rfee�Reet $732,600 $704,500 $681,000 $625,722 $676,638 $560,446 $608,722 $565,425 $560,777 Personal servioes 347,300 327,600 306,000 310,572 295,990 312,145 309,805 299,174 286,052 Commodities 220,700 220,500 215,600 228,483 244,977 176,828 200,412 161,392 150,193 Contractu� �ervicES 79,410 79,410 79,560 60,774 68,509 67,149 37,861 63,909 50,806 N�income Ioss fromfle�toperations 85,190 76,990 79,840 25,893 � 67,162 4,324 60,644 40,950 73,726 D reciation: Onas�s urchased 10,400 10,400 10,400 11,818 10,159 8,444 6,891 4,595 3,323 Onassarscontributed 21,900 21,900 21,900 19,612 21,859 24,105 24,105 24,105 24,105 Total depreaation 32,300 32,300 32,300 31,430 32,018 32,549 30,996 28,700 27,428 NE4income Ioss fromo erations 52,890 45,390 47,540 (3,695) I 39,741 (17,046) 44,177 19,505 56,657 Nonoperatin revenues expen�s: Investment�rnin s - - - 1,752 3,587 2,761 4,119 9,180 11,613 Miscellan�us - - - 837 6,053 7,474 5,226 5,587 9,134 Total nonoperating revenues (expense - - - 2,589 9,640 10,235 9,345 14,767 20,747 N�income loss beforeoperffiin transfers 52,890 45,390 47,540 (1,106) 49,381 (6,811) 53,522 34,272 77,404 Operatin transfers O eratin transfiertoEnter riseFund - - 31,000) (31,000) (31,000) (31,000) (31,000) (31,000) (31,000) Total o eratin transfers - - (31,000) (31,000) (31,000) (31,000) (31,000) (31,000) 31,000) N�income(loss) 52,890 45�390 16;540 (32,106) I 18;381 ;(37,811) 22,522 3;272 46,404 i NarAs�s-.lanu 1,asrestated 1,341,902 1,296,512 1,279,972 1,312,078 � 1,293,697 1,331,508 1,308,986 1,305,714 1,259,310 N�As�ets-Decernber3l $1,394,792 $1,341,902 $1,296,512 $1,279,972 $1,312,078 $1,293,697 $1,331,508 $1,308,986 $1,305,714 � � Invested in capital assets, net of related debt $ 964,687 $ 996,118 $ 1,019,835 $ 1,047,096 $1,065,106 $ 1,068,373 Unrestricted $ 315,285 $ 315,960 $ 273,862 $ 284,412 $ 243,880 $ 237,341 NetAssets $1,279,972 $1,312,078 $1,293,697 $1,331,508 $1,308,986 $1,305,714 - _ ...................- -- -- Fuel Information Increase from 2012 actual Percent Increase 12.36% 4.71% 7.26% 9.69% 21.4% 28.6% -36.0% 19.4% 9.0% Price per gallon 4.00 3.56 3.40 3.17 2.89 2.38 1.85 2.89 2.42 Average yearly increase from 20�5 to 2012 is 6.3% $3.21 is ytd paid per gallon through 6/2013 � 2014 budget is 10.9% increase over 2013 ytd ❑ 2014 and 2015 operational expenses will need to be curtailed to avoid running the fund into a deficit fund balance. ❑ Future increases in charges will be necessary to sustain system maintenance expenditures. ❑ Recommended fund balance level is 50% of annual expenditures or $400,000. 1000 g�� 600 400 200 0 .�� Revenues e Expenses Intergovernmental Total Revenue 797,836 694,594 643,400 647,400 647,400 ; _ _ ... ....... ... . ::::::.:::::::::::::::::.:::.:..::;:-::��. _ _� ;:_.- ,;;-;;.; Aei'S�,hr��[ ;::',�:':' =;-:�:'�Z� �4� ��21�8 ��l� ��3,�� 42 9f��J __...:.: _. .... � -� .::.::.::.::.:;,:.:.:..�.::.:-- ..... ........ . . ,........:_-.-.-.-_: _._._,.,...�......._..._ �......,., ..... Commodities 22,628 22,591 54,850 54,950 55,250 ��sn�ra�t�alSue ��1,8�4 ��,7�3 �Qf3,5'�#J ?�t7�� 1� Admin Charges 29,400 30,300 30,900 30,900 30,900 TotalExpenses Net Operating 1,670 (124,824) (102,900) (163,740) (101,170) -:::; ::;:::: �k�#34� 6�[��iG� Yj� 3�1,59� �8fi,�� $3,�7� �'��$��.. _��87,1��7� . � � �� - — � � � �� ,, r ,.� �� "� �' ,3 * � �• ;�- = � c� m d- �.n � � � � � 0 0 0 0 0 2013 Rate Study Utility Rate Comparison on monthly basis Ranl<ed by Water/Sewer Charge Combined Bill At CG Averages (Water 9000ga1. & Sewer 5000 ga.) Storm Total Street Water Water Sewer Water & Light Cost Cost per Rank City 9,000 5,000 Sewer per House House Total 1 New Hope 49.01 25.97 $74.98 1.50 6.30 $82.78 2 Golden Valley 43.14 18.90 $62.04 2.15 7.33 $71.52 3 Savage 34.73 22.68 $57.41 2.99 6.42 $66.82 4 Roseville 35.86 19.70 $55.56 - 3.72 $59.28 5 Shoreview 22.83 26.74 $49.57 3.16 6.44 $59.17 6 Crystal 38.00 15.60 $53.60 1.45 3.60 $58.65 7 Prior Lake 30.61 20.36 $50.97 - 5.63 $56.60 8 Richfield 28.88 18.26 $47.14 1.92 3.89 $52.95 9 Burnsville 23.88 17.21 $41.09 3.20 6.78 $51.07 10 Champlin 20.22 25.18 $45.40 - 2.50 $47.90 11 Ramsey 21.78 22.26 $44.04 3.00 3.34 $50.38 12 South St Paul 22.74 22.71 $45.45 1.83 2.50 $49.78 13 Inver Grove Heights 24.58 19.70 $44.28 - 3.82 $48.10 14 Minnetonka 17.83 21.45 $39.28 - 5.93 $45.21 15 Andover 21.74 19.79 $41.53 2.67 2.70 $46.90 16 Brooklyn Center 14.11 23.49 $37.60 1.98 4.83 $44.41 17 Edina 17.12 20.27 $37.39 - 7.20 $44.59 18 New Brighton 14.58 18.11 $32.69 7.42 3.93 $44.04 19 Oal<dale 17.08 19.96 $37.04 3.33 1.67 $42.04 20 Coon Rapids 19.84 20.59 $40.43 - 3.47 $43.90 21 Chasl<a 21.41 16.81 $38.22 - 4.75 $42.97 22 Chanhassen 19.66 18.92 $3�.58 - 3.10 $41.68 23 St Louis Park 17.97 17.53 $35.50 - 4.50 $40.00 24 Fridley 16.96 22.61 $39.57 - 1.57 $41.14 25 Apple Valley 15.77 18.48 $34.25 1.64 5.00 $40.89 2g�Cottage Glrove � 13.20 16.66 $29.86 3.30 4.00 $37.16 27 Lino Lal<es (same rates as 10; 20.14 19.33 $39.47 - - $39.47 28 Hastings � 18.66 16.76 $35.42 - 2.08 $37.50 29 Woodbury (same as 10 rates 9.63 20.84 $30.47 - 5.77 $36.24 30 Eagan 13.60 16.04 $29.64 1.95 3.04 $34.63 31 Rosemount 12.68 15.64 $28.32 - 4.79 $33.11 32 Eden Prairie 17.11 13.01 $30.12 - 2.33 $32.45 33 Lakeville 8.85 17.54 $26.39 2.60 2.33 $31.32 34 White Bear Lal<e 11.84 19.01 $30.85 - - $30.85 35 Maple Grove 12.60 16.25 $28.85 1.87 - $30.72 36 Blaine 11.75 14.90 $26.65 - 2.08 $28.73 MEAN AMOUNT $ 21.12 $ 19.42 $ 40.55 $ 1.33 $ 3.82 $ 45.69 ...-: -:a: .�z� , y .,r:, �. �.-�� .-,�.�� }v :-.1 �.. ..:.. t �.v., ;... i : ._.: , .,, _�. > . ,. , �� , z :;�. ,« i,. q ,. . ..,.. ,., r .,.,.. . 4 1 . t, �.. . . �,... . .4 .F ,t� , � Y ,....r.,t ,:i ,' < < ....o . .— . ...... t .l , i .. z , . ....�, . r . t . 1? . ,,.. �. v ' i ... ti?. t ... . . t . < t ,., c q� , z . . �>53 ti ,� . i u, .< i. . . Y n ,: . .. �� . '.,: ., , i �. r �. �.:. z i.. ., t- . s t...s v . t. ,., r .-. ,.,.... .,,. ...., ..4 . 4. �...¢ _ . v .. .; � , . t � . , . . a . F � . , . .�. e r ,, wr . s , .,..r ;� ., ,�: , . ., ,ti . , ...�.- , . t ,.. .x t. ., �t .. � . .. ol.z.i a, . ,z , z � � n . �. .g, , ., _ �+.... � ., ..... ,. ,.< >t.. Y ..s - r. _,...-.Y'.. ..�, „ i ,. � , �.t.�.,.. > e s. �.. .r . ..,.., a . , �. ,r . .. �.n- E � �, 7 f1 1 � ,. k. T. . l. a� �, . i il r i . r. \ i # t... .t� ,(*. .!,. S. .7 t 4 �� 1., i,< ..t. ;. ..1 ..t r{t. `h.... �{ n ;� :k. {s3. � i t 4.- .; x.f . t. , `� , � 4, n�a. ,' � a, . � t,, t � ! :c ,. ,. u r s . ..., , t `� .s.. � , �, .+tf. « ,... d �� , . �,,. . t� i�.� , ,. � z 1, 3 S . T.. . , . .1�d . fi ,C � . � ,,.. i . „�r S, � § f S � �? a 1 , � 1 � ✓A . ,t , � j � ,\ t. � }'� .� y� �`,�' i- i C.. . F4y =,� U �l . :.�. ....,� .. !' �:,- ..y .. . 2 4. � ..,, : �i a s, . � . , .. ,.. . . r .. �n . >. .. � } . . , .. t . _ . . 1 � . .t .. . «,r 5. _ , . ..z ,. i- .. . -i. S . . 7 . „c... t. �-„i�_. , 4`; i �, . �. 4 . �?, . :�, } .i. �.ti, c�... k.a., . tG� =a�, s.�t. �, 2� ,.1..{..,.S,L'� S .t. t. � z�... , Y i S, P.a "r it . �, s � r � ,> „�., '� k �. � 2T L =, � r t3 ' .,. r,,.. ., .�; .,.�:.�. �.3s�,:. d if�,.: ,.�.t. ....�.t... !� }.tt�`�.t.t .;,,_,l,. .t�:<..�..� _�.'�.E��,� .F�s._..�..�.,... U�s �> r„ g >., v f ti a. � s�' , t r� �., a� f � �,., r .. . J.�h �", . a � �, � t r ��.,.:- �� t � �. l, . . , t � .4„t . 'tf ,� �4"" a t , , , � fi. . � ,. �. ; � , t � {, � ., < s « `,`txr } r H �t . . ., . l.�-� , �l . �.:h, . �.,. �n � , 't�'C.. -�. c , � . .� 1 .� .,, f=' :.ti h,�. , 'i , i. h , . e�.. . i.. .l . z . „ .s �'c...., tia M � ,. ax4.. 1 r� r ..4 t , �. � .. ro.. .i . <c. , .� . �1 i..� .i ,.��, �, �r.l� .? .6 ,�i1 � . , ;+. ...�... �\ . �-. ..? _ . 3 , t � � 7 ... .., .} ,� 4, �.t� 2 v .1 n . ,. . .,�. � ,...� �c �.,�1... . .�.�U .,». �, F.. �3.� l� �! . �. �. ,. . �! s�. �. ._ u. k i: r ., �1r..is . . . , i -. t . . . . .. i � ... i . � �t ,� _� �o . . : �;�. . ... �.. . w . ., ��' S . �. . , .4. ., .. � .. Stl t � .. ,�_},.. ', ....,, � i � , � ,.<:G .6 �13. . �. Ai.S � i . .( .a , ... , i.�. :.Is" . $ .S .r.....e Ql�. �i>1c4-,. ..a..}.. �., i� s e. . �.,V . }... r.. .�..- �r _ ..�.,t .i �t.. �r, ,... .... � s . i.. . ,. ,�_7,5 ,.�r h� m a ' � t _, . ,. ..�?I �,. ,.,Y as��. � rW ., i.,.,. I,,."�iu �' , �. . �- , .m . � 1 C .1... .. � , 7t.t" fr 1. �k . h�... s,� ._ '��, "� ..... n. , i. r.,.�..au.. �;�� u5.t.. '� `� � .,.i i.�t�.,r��. � p ..i , . T � `i�' � �}� i �� Y � t . u � � � 1 k an s_ v �,, .r. ir.i� �. r'�� h � � � � i . ,� � � > S rx �, t , v � . � . I 's 1, .. , � i �. . , �W, ,�, , ,.� ,, t.ti -:.�_ �, , �, .�§'..�h..� k., . �..'i-.�..�� 7. 3r -.i l�a ,.r. }. 3 ..h: s„i, f r7 ,.,G ,.. F� . 4�.. t.. � .. Et . �. ,6 ; .7n � .� t, i � e. :. f. � , h. � :,v' i �,, a f � .E.:, „ .�-.,s�.�. .i...7. .# ,. 1 3., t,s _, t � .i. ..�.�<�7 a, , !.fi � s, ...5nr , v`"�� ,°`5 , ,,. .'�, .,� .i, + � ,. " 'l� , .. �� ,., . , r ��i . ... 3�.�x. ..��,� s., , ,.. :, v. .,,!. � , ....; r'r...� ,m .:;: ..., .,.. .. ,6 r ., �, .. , -.� , �,..t ..,�. �� '+� ..., , .3 t � ..J �i t�1. �... , ..i.... ,.. �v.t,,.i��. si u�. �� i� .. �l.i <.,. .,l.�n, .,. 1�..,..i ..,.e.. � Ca �� >.n � h: .i� .�Y.. .f. .. e�ti.� t .�- fnt.. .. � i .�. . . � � ..tt � .t L,,. c. ,s r2 �r.. ��...., ( .� � .r. h -. t i �.. . .17,,. ,�. � � _,. r:r� l . d' 'Y ,r" ,r.�t � �x� .,,i. , 7ut: - h , C t :.s � �. �.�h�...�. ., .:. , � „ � ,... : . �.7 �i . . . , e. ,�3.. v 4 .�. ..r... , su . , a: � �.. -: U . f� . � �� ..� �. . ,� 1 . t � . .. ... a F t�;Y . � � � 1, . � l' i. � , ., t C-� >4. ��.. f. i. �- .. ��.. .< �. ., , r „r .b �.. S � �. . < < :'i „t . 4 . , �.. � : t.: .� . � U?� . S t r� . <. . 14. �,. ..� . �... , kx �.> �. Z� u, t i r,n � ,. � r,ti,, � ,� � �'�' �'� �� , t f� },�,. � { .� u � �� .� �, �� i ,, « v,. , <,., � Vs �1�, '� .,: ,,�,� 4 t ..�Y S . ,....._ . 1v�`; ) z � f _ . -.s . .37tr.'t? .{S., . . . -�; y �. ca.�a . . . h. ¢� - ,�.5. ..t., rc� �i . t. G . . �! _ : `$, ., . a. � �V ,��rY, ? s .. �� ?� �� t,�. .F „ ti �. �,�,, � b � � ,�o-�.� t ` ,. �. , � ! � r , i : ( � f , . � , � =.4, � 7 . � 7i , �S �, � «� �'� rs , s. ,. � q � �i. , , . , . tl �., � ;� .. � l� �S3 � 5 . ��r,. x. �� y � t � t � ,�� r, � � v ,: � , .��5� � ., �, , , , �, . . � � s . r, .r ,f,s ,, � �� .. �r �. . ' S,. �.� , . ,.. „ ... .G..l C-.ti �f..Z:`�. ., .IS- i.n � nz t 3 ,�, f 3�.�3. � ,. ;,. .. �:�,.,.t- �, t t .E 4 i n- .. ..,.. ., , _�,.i , ;t" .>... _vl. � .�. .� .. .., r `i_ ,,.....� .�,tl„ , .t .m. ..t: r .... .:� ,.,�::, „,.> .�..,d4. � �. .. 1 f,. fi . ?,.:. i . } .... .i. r E .. �! - .:, : . _.1. , . . { ., ., �.Y�� . :�.t .:� ..S). -�,w t. .�.,: . �, . z... ,� . � , �. . . .. ., , .i .. . t ,t {_ E. � � '?m > ,�i � � �,- ..l r, ��:ct� .h t� _c.: .t. t .k. . , :.�.... wf.. .� _,. ..,.. ? . i... . f Y '.t . . . ., . . c i i . k. . . E:. .::, } �. �^i. . . t ti �� "�1h - .. r. . ( . . � ..0 . m" . . �4 f�k rr.US Y .l� r..,,...Y.. :s�'. S . ., i. .I.�., �., . �. .'zf. u. .. .� . . t � ��. 4Y �� ,. . a,... i W � ,,Y . �i ,�. �. ..rr .� . ....... �3. .,. i �,.,, � � .. �r .;'t.i . t ., i._ �!'�'.. ...! ..,... �... . m.. ..,....�.. � . t> € . 3 . ... � ... :� . { s.. �.�fl . t, . . c, .. �� , , , . � �r'.. ,. , i�. . �a' . . , . �. , 4 . .> . ,. .E : m .. . . t , ...,z. K k .,... ,. ... t. . . . ,... .. , r .._. . :., . , . . ,t� .,. . r t � r� ., ,.%�... ..'1_ � �4.... .1 ... i. .... ..5 � . : s .� . . ,.. . . s7 ..;€.. 1 .mm� .s R..� . 9� . . :i,. ; (. .-M 1 .Y ..,i t i4 s.. ... . A. .a 4 l �... ,.� :� t i....i.. .2, t . ..� 4.. ....i a. ..r. .., �v�. �.:,. .t. �..z:. ..� 5, ,.Er.....t.,. .,.......i -.f.,..�",,,. �:.,. ro, ..�`i 7 ,� , ..� .f .a. C- 3.. :.,t^", , ,. �� ."�'.. � ,�.. i €` i., .�. ..� .'sr.. .c.. 1.. _E i '�., i. �.. ,. ..;# t �, �4 t .sV �!.. i� t, t ., � � 7 t l.s 4, t.,_� tiv s �i .l� . �. t� ,_ u E,( ts . t }:� f, fi t l t, �'� > t I � , .,., >...,.., u �.. . � ..� ?r .s. e . t. � � ..i �t , � .�.. . �,�i.. , . ! .i � c „ >, .'�. � 0 ..i } .4��, t-..,4`: ..'2" .i (.__ij. �-.. 4.. .-.. I .,.F,v ... .. ........ .. s .�,. r,,. , .,�...... t.+�.4, ,..,...,.`it.,,,,.t,,;.s .� �„u ,;,,,l.,H�.s3..z �. ,.>.« .'�.ti.r.�k m,t.t. ,.�� ,r i t S„,,..��.3 �„�z.z � i�ir �n'�.� �'�g i��C� _ � �m� t�..N ,��t,�.,. �n „�,� ,,. J ,.,t �3 , y� s ti� 5�4, t�tu4 i t 1 ,.� E �, � , � , . �s General fund $10,867,000 $10,867,000 $,31,264,553 Less: LGA (59,623) PSCH Loan 550,000 500,000 Economic Dev 108,100 108,100 108,100 Other levies 60,000 60,000 ' 60,000 Total Levy subject to limit 11,035,100 11,585,100 11,873,030 3% levy lirn'it (less LGA) 2.48% Debt Existing 1,206,150 656,150 576,000 Add: 2013 PM Debt 327,070 Total Debt Levy 1,206,150 656,150 906,000 'Total Gross Le�y 12,241,250 12,241,250 12,776,100 Change in gross (evy 0.00% 0.00% 4.37%