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HomeMy WebLinkAbout1994 11-21 CCP Work Session CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER NOVEMBER 21, 1994 7 p.m. Council Budget Work Session CITY HALL COUNCIL CHAMBERS 1. Call to Order 2. Roll Call 3. Continuation of Proposed 1995 Budget • Resume review of budget beginning with the police department budget • Special request to approve MDT equipment for police department • Request for budget consideration for funding Hwy. 100 Council • Recommendations from advisory commission for funding certain service programs 4. Proposed 1995 Enterprise Fund Budgets 5. Discussion of Council Meeting Call -In Program 6. Adjournment MEMORANDUM TO: Mayor and Members of the City Council FROM: Gerald G. Splinter, City Manager Charles Hansen, Finance Director cti DATE: November 8, 1994 SUBJECT: Questions Raised at Budget Work Session There were a series of questions raised by the Mayor and City Council Members at the October 17, 1994 work session. The following is a list of those questions and staff's answers to them. 1. What is the breakdown of the budget increase? • A breakdown of revenues can be found on the green page number 3. • A breakdown by organizational unit can be found on the green page number 5. • A breakdown by object classification can be found on the green page number 7. • A breakdown by General Fd department can be found on white page number 4. 2. Are salary increases for the City Council in the budget? Yes, the increases approved by the City Council are in the Personnel line in the City Council budget on white page 1. 3. What makes u the Contractual Services for 1 in h nil budget? p $56, 50 t e City Council y The major items are the following: a. Northwest Cable TV to air City Council meetings. $3,500 b. Secretarial service to produce minutes for City Council meetings. 12,000 c. Cost of joint meeting of City Council & Advisory Commissions 750 d. Dues: League of Minnesota Cities 13,500 Assoc of Metro Municipalities 6,900 LMC Labor Relations Consulting Service 4,000 U.S. Conference of Mayors 1,850 North Metro Mayors Association 9,000 National League of Cities 1,300 e. Expenses for City Council conferences & schools 3,000 f. Miscellaneous 350 4. Where is the money for the joint meeting of City Council & Advisory Commissions? It is in the City Council budget under contractual services in the amount of $750. 5. Will the Human Rights Commission spend $8 in 1995? Yes. As in the past, we plan to contribute $1,000 in 1995 to the Heritage Festival. This leaves $7,000 to be spent on a comprehensive, city -wide cultural diversity training and follow -up sessions. We expect to use outside consultants and agencies such as Northwest Hennepin Human Services Council to do extensive training with our staff including staff from city hall, the police department, Heritage Center, civic center, and maintenance divisions as well as our liquor stores. At the present, no internal staff member is trained in this specialized area of providing diversity training to our work force. Thus, we are looking for outside agencies to help us with this program. 6. What is the cost of converting the City Manager /E.D.A. part-time secretary to full -time? If the position remained part -time at 1,300 hours in 1995, the total cost would be $15,460. If it is converted to full -time, the total cost would be $32,535. Either way, the cost is split 40% City Manager and 60% E.D.A. The net increase is $6,830 for the City Manager and $10,245 for the E.D.A. The cost increase is driven by the following factors: 1. Total hours paid increase from 1,300 to 2,080. Z. The hourly pay rate increases from $10.37 to $12.02. 3. Insurance benefits of $3,862 are included. 7. In the City Manager's Capital Outlay budget, why does the fax machine cost $3,900? When the budget was put together in the spring of 1994, we used the state contract purchasing documents to price out a plain -paper fax machine for city hall. As you know, our current fax machine was the machine previously used in the police department. It is a thermal -paper fax machine. The fax machine in the budget is for a plain -paper fax which would eliminate the need to have staff make plain -paper copies on our copy machine of faxes that come across on our thermal fax machine at present. In looking at the current state bid, a plain -paper fax machine costs as follows: Fax Machine $2,416 Toner 96 Master drum 240 Memory 324 Service 325 Total $3,401 Sales Tax at 6.5 % 221 Total for Plain Paper Fax Machine $3,622 We expect that cost estimates should be slightly lower by approximately $200 after the first of the year based on new state bid and improvements and technology. The plain - paper fax that was quoted is through Metro Sales and is on the current state bid. It has additional memory which will allow us to feed in documents into the memory eliminating unnecessary staff time waiting by the machine to send a fax if lines are busy. We need to purchase a service contract for the machine. When you purchase the new fax machine, it comes with a 90 -day service guarantee. After that time frame, a service contract is needed. The price of a service contract is based on the number of faxes in and out of the machine per year. This fax also comes standard with a printer interface allowing for the future. For instance, if a computer is installed at the front receptionist desk it could be hooked into the fax machine to be used as a standard printer for that PC. All in all, the fax priced in this memo is a mid -line machine and price for a plain -paper fax with memory. 8. In the Elections Budget, what is the incremental cost of each precinct? How much money could be saved by combining precincts? Could our elections be combined with school district elections to share costs? a. The precincts with larger numbers of voters need more election judges to handle the volume. Therefore, costs for larger precincts are higher due to salaries of election judges. b. None. The recincts must be divided so that approximately the same number f P PP Y 0 voters are in each precinct. Since Senate District 46 encompasses Precinct 8, we are bound by having our other precincts approximately the same size. Also, there is not enough room to maintain order if there is excessive numbers of voters for one precinct. C. State Law governs when school board elections are held. Recently, the uniform election procedures law governed school districts to establish school board elections in the fall of the even- or odd - numbered years. Most school districts are choosing the odd - numbered years. Since the State and our City elections are held in the even - numbered years, it would not be possible to combine elections unless the school districts chose to do so. This year, Independent School District No. 281 has its school board election on the ballot. We are working with the school district to help defray costs to the City on a per voter basis. 9. How much training is included in the Data Processing budget and what is it for? In the Contractual Services category, $17,260 out of the $26,238 is for training. It is for the following purposes: 1. Training for users of desktop publishing (Pagemaker) software $1,900 2 Training for users of database management software $4,360 3. Training for all city staff to improve skills in using spreadsheet and wordprocessing software. This was started in 1994 with an appropriation of $10,000 and focused on spreadsheets since we purchased an upgrade to Excel that year. The focus in 1995 will be on wordprocessing since it is budgeted to purchase an upgrade to that software. The goal is to have all City employees trained to a level of proficiency on the software they need to do their jobs by 1996. $11,000 10. Could money be saved in the Data Processing capital outlay budget by purchasing less expensive personal computers and upgrading some older 286 computers to 486s instead of buying all new computers? Everyone keeps telling us that we should try to run the City more like a business. Like business, we are purchasing the latest versions of wordprocessing, spreadsheet, and specialized software. Current versions of wordprocessing and spreadsheet software don't run well unless the PC is a 486 with 8 megs of ram. Specialized software which we currently have includes ArcView, Hansen Utility Management, Auto Cad, and Pavement Management. LOGIS is acquiring new recreation management and vehicle management software which will do the processing on the PC instead of on the mainframe. Suppliers of LOGIS's financial and payroll software are also coming out with new versions which will do some processing on the PC rather than the mainframe. All of these applications require at least a 486DX66 PC with 12 or 16 megs of ram and extra video ram in order to perform well. Also like a business, we try to instill in our employees the idea that efficiency and productivity are important. That message is lost when the employee is forced to work on an obsolete PC which is slow and frequently is broken down for days on end. The average secretary costs the City about $138 in wages and fringe benefits for each day worked. If you assume that the person's efficiency is cut by 50% on days when the PC is down, then there is a $69 productivity loss for this person each day. Other employees have higher or lower compensation and may be more or less dependant on the PC. In 1990 and 1991, we bought state of the art PCs which were 386s and had a maximum of 4 megs of ram. Today, only 4 years later, these can't be expanded beyond 4 megs and are obsolete. They don't even run the latest wordprocessing software efficiently. It is my expectation that we will be able to get five years of service from the PCs we propose to buy. The only enhancement they should need will be to expand the ram, which will be easy to do since they have mother boards with slots for expanding the memory. My fear is that today's economy model PC won't be adequate to handle the wordprocessing software of three years from now. We try to get as much mileage as possible out of our PCs. This is done by purchasing PCs which are at or near state of the art. Today that would be a PC with a Pentium processor. We are proposing 486s, which are a step below that. The powerful new PCs are placed with our most knowledgeable users and those who run specialized programs requiring new PCs. After a couple of years, these users again get new ones, and the old PCs are placed within the organization with someone who does primarily wordprocessing. In this way, we are usually able to get five years of service out of a PC before performance becomes too much of an issue. The PCs we are proposing to retire in 1995 are all 8086s or 286s which are 5 to 8 years old and can not run our current programs under Windows. Attached is a memo from Barbara Gallo which gives more detail on the maintenance and performance problems we have experienced. 11. How do we dispose of old PCs and other equipment? If they are still in running condition, they are usually placed in the City's yearly auction in the spring. An old PC may sell for $50 to $ 150. It is impossible to get any more in view of the fact that a brand new economy model PC will do more and costs about $1,000. In fact we have been debating the wisdom of selling the old PCs at all. They have all had 5 to 8 years of service with us which means they are about to break down if they haven't already. Selling a PC which disappoints the buyer with its poor performance and soon breaks down, does nothing to help the City's image. PCs which are broken are sent to a vendor who scraps them for the metals inside. City of Brooklyn Center A great place to start. A great place to stay. MEMORANDUM Date: November 2, 1994 To: Gerald Splinter and Charlie Hansen From: Barbara A. Gallo Subject: 1995 Data Processing Budget Request for Microcomputers Per Charlie Hansen's request, I have prepared an evaluation and justification of our personal computer purchases. Charlie informed me that a question as to why we purchase name brand computers such as Hewlett Packard and Compaq over PC clones has arisen. In addition, it has been suggested that we take the HP ES/ 12 computers and upgrade them to a 486 computer. In this time of tight budgets, it appears that buying new HP or Compaq may be unwise because clone computers are less expensive to buy at the time of purchase and to upgrade would be cheaper than buying new. I believe the following will justify why we are planning to spend about $400 more per computer than a clone. In August 1990 we purchased the first clone computer for the City of Brooklyn Center offices. This computer was assigned to the city assessor. We were concerned about buying clones because we did not know if they would be compatible and as reliable as the Hewlett Packard computers we had been buying. This first computer worked well. No compatibility problems surfaced. There was a small problem that needed service within the first 6 months. A service technician was out within four hours. We were encouraged by this experiment. Therefore, in 1991 we purchased ten PC Express machines, followed by nine in 1992 and nine more in 1993. Until the beginning of 1993 the service provided by PC Express was good. Starting in 1993, the service went from four hours and next day to two or more days. Also the quality of the components do not seem to be as good. Five out of the 9 PC Express machines purchased in 1993, had to have their mother - boards replaced in the first month after delivery. The quality of service to date has not improved. Just recently I waited three weeks for a replacement power supply for a computer. Just today, I received replacement memory for a PC Express computer that I ordered two weeks ago. As a result of having to use a computer with defective memory, the user estimates her productivity during that period was down by 40 percent. With the defective memory, her applications did not run properly and often locked up the computer which then has to be rebooted. We do not have PCs I can keep out of use to use as spares. The Hewlett Packard machines have performed better over time. Out of three HP's purchased in 1993, none have had a problem with the CPU and its components. One did need the CTX monitor purchased with the computer replaced within 90 days of purchase. 6301 Shingle Creek Pkwy, Brooklyn Center, YIN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action/ Equal Opportunities Employer The HP 386 computers we purchased in 1990 and 1991 have not needed repairs for the most part. As I recall, one out of five PCs needed a new communications board. When service is needed we can call OPM Information Systems and they will have a technician out in half a day. With PC Express we end up waiting days for parts or a technician. This results in the user not being able to do the work needed to be done. It often requires a lot of my time to diagnose the problem, order the parts or request a technician, and to follow up on delays. Since I am the only person the City has to manage the computer operations and provide technical support, my time spent dealing with down computers leaves me less time to work on the many other tasks I am expected to do. The clone alternatives I have looked at are PC Tailors and PC Express. They both offer five limited warranties. PC Express and PC Tailors provides on -site service the first year. they both provide carry in service after that period or on -site for a fee. It costs us $100 every time a PC Express technician comes on -site to repair a computer. From our experience with PC Express, it appears that the money saved initially is not really a savings. Over time we loose money ecause of computer Q for on -site service or down time waiting for arts paying Y , , g P P Y my time to fix the computer. The average savings per computer that I calculated if we purchased a PC Tailors or PC P P P Express machine would be $400. The computer is a 486 DX 2/66 with 12 MB RAM, a network card, 1 MB SVGA video, 14 inch monitor, 325 MB hard drive minimum and one floppy drive. Multiplying $400 by 11 computers may seem significant, but it isn't when You look at the long term. The life of a computer here at the City is running five -plus years currently. When you purchase a HP or Compaq computer you know you can get service from a variety of vendors. From our experience their computers need less repairs over time. When we need repairs we can be sure they stand behind their product. That means savings because users don't have to suffer long down time. It means savings because my time is not taken up trouble - shooting, following -up, and repairing. When a HP or Compaq computer that is under warranty needs service, I can call any authorized HP or Compaq service center. They can provide service under the terms of the warranty. Buying from a clone dealer means the service options are limited. This limitation can mean the computer is out of service for days or weeks. I strongly believe given our experience with PC Express and my personal experience with PC Tailors that the $400 more we will spend initially will be money well spent. I believe that it would be a mistake to sacrifice quality and experience to save some initial funds. I feel the same for any other clone we might purchase. In regards to upgrading the Hewlett Packard ES /12 computers to 486 computers, I believe we would be disappointed. I met with Joe Oster, the MIS coordinator for the City of Maple Grove. In 1993, he looked into having all their HP ES/ 12 computer upgraded to 486 computers. In fact, he did have one done to see how it would work. Maple Grove found the upgraded PC to be unsatisfactory. Once into the upgrade the company found they had to replace everything except the keyboard and the VGA monitor. They replaced the motherboard, processor chip, hard drive, memory, power supply, VGA card, communication ports card and case. All of these parts needed replacement because of the architecture used in the ES /12 computers. The upgraded PC is a 486SX 25 MHz computer with 4 MB RAM. I tested its access speed with that of a HP 486 25N computer. This is a 486 DX 25 MHz computer with local bus video and 4 MB RAM. The upgraded ES /12 computer took 3 minutes from initial boot up to load Windows fully. In comparison, the 486 25N took 1 minutes 9 seconds from initial boot up to load Windows fully. The upgraded computer took 1 minute 10 seconds to load Windows from DOS. The 486 25N took 22 seconds to load Windows from DOS. These tests demonstrate that there is little advantage with the upgraded ES /12. Yes, you can run Windows, but the speed is very slow when compared to a true 486 computer. To give users upgraded ES/ 12 computers will slow down the productivity of the users significantly. They will have to wait long periods of time for programs to load, files to be saved, and screens to paint. The Windows environment is a graphically intensive one. A computer needs the video speed and disk I/O speed, in addition to memory and the processor to work effectively in the +� environment. After upgrading the one ES/ 12, Maple Grove decided the upgrades were an unsatisfactory solution. In fact they have given the upgraded PC to the nursery school for the children to use. Based on Maple Grove's experience and what I have heard and read, I do not believe upgrading the ES /12 computers - p� g p ters is a cost effective, viable alternative for us. I believe we would spend the money and be terribly dissatisfied with the results. In the end, we would end up buying replacements for them without receiving any pay -back on our upgrade investment. If you have any questions concerning my evaluation and justification, please feel free to ask questions. MEMORANDUM TO: Mayor Todd Paulson Mayor -elect Myrna Kragness Councilmember Barb Kalligher Councilmember Kristen Mann Councilmember Dave Rosene Councilmember Celia Svardal Councilmember -elect Debra Hilstrom Councilmember -elect Kathleen Carmody FROM: Gerald G. Splinter, City Manager Z �W DATE: November 18, 1994 SUBJECT: 1995 Budget Request for Mobile Digital Terminals (MDTs) In early November I contacted the City Council stating that I would be requesting on Monday evening your consideration of a proposal to authorize Brooklyn Center to join the cities of Eagan, St. Louis Park, and Golden Valley in a Mobile Digital Terminal (MDT) system through LOGIS. To accomplish this request, the City Council is requested to pass a motion authorizing the city manager to expend $32,049 in startup costs in 1994 and authorize the 1995 budget request for $45,000 in funding for the lease and operational costs. The four cities and LOGIS spent the first eight to nine months of 1994 evaluating options for providing Mobile Digital Terminal service to the four cities. They evaluated five different sources for this service and have chosen the RAM Mobile Data Services Solution (see attached LOGIS recommendation report dated June 24, 1994). In July LOGIS Board approved the recommendation and instructed its staff and the four cities to finalize all the cost and technical details. That process was completed approximately a month ago, and the costs and details for providing this service to the four cities has been finalized. The recommendations in this report are based on these costs. The cities of Eagan, St. Louis Park, and Golden Valley have approved this project, and they are now awaiting Brooklyn Center's decision. The other cities have requested a decision in the affirmative or negative from Brooklyn Center as soon as possible so they can proceed with ordering equipment and the initial development stages of this project as soon as possible. We believe the provision of Mobile Digital Terminals to ten of our squad cars would provide our police department and its officers with significant added flexibility, safety, and effectiveness. Because this type of system will allow our officers to bypass the dispatch center and ao directly to information sources without using dispatchers, it will take an i k Memo to Council -2- November 18, 1994 additional workload off the dispatchers and the dispatch system. The current dispatch system is being taxed heavily by our current workloads and would be a significant relief to that overworked system. The choice of the proposed system will allow for significantly expanded initial capabilities with the option of easily adding additional capabilities. Initially the system will provide for digital communications car to car, dispatch to car, executing driver's license and vehicle registration checks, access to police information system, and an on -line interface to information on the Computer Aided Dispatch (CAD) system and other local databases. In other communities where the MDTs are used, it has been demonstrated to improve the service delivery of the police department by cutting emergency response time, providing critical data in real time as events unfold, and addressing the issue of officer safety by providing additional and alternate methods of communication. It provides the added ability in emergency situations of providing an alternate wireless data communication network for officers and dispatchers which would allow them to maintain communications in the event of a failure of our first line radio communication system. Once we have this type of system installed, it will allow us the flexibility to add such features as magnetic strip reading card systems to handle the new state driver's licenses, fingerprint scanning, automated field report systems, photo imaging applications, automatic vehicle location systems, and the datalink which could be used by other departments such as assessing and inspections in the use of their field computers. It is your staffs recommendation you pass a motion at your budget work session on November 21, 1994, approving: 1) the expenditure of $32,049 from the 1994 police department budget for MDT startup costs; 2) the proposed 1995 budget appropriation of $45,000 for lease and operating costs of the MDT system; and 3) authorization for the city manager to take the necessary steps to allow Brooklyn Center to join the LOGIS MDT group implementing this system as soon as possible. Attachments LOGIS MDT /MCD COMMITTEE Recommendation Report June 24, 1994 Recommendation: Of the MDT /MCD systems investigated by the committee, the RAM Mobile Data solution appears to satisfy the selection criteria better than any of the other systems. Of the criteria, flexibility is the major outstanding factor that RAM provides. All other systems investigated except the US WEST system are based on proprietary equipment (that is, limited to one brand), and the cellular system was considered by the committee to be a technology that is not adequate for our needs. The RAM system is an open architecture design, meaning that agencies are not tied to any one brand of hardware except for the special multiple- frequency radio modem. In addition, RAM representatives have indicated that adjusting the number of units on the system will be easy to do, further enhancing flexibility. The RAM Mobile Data network is compatible with our HP Computer -Aided Dispatching (CAD) system, due in part to the strategic partnership agreement between RAM and OCS Technologies. In addition, RAM Mobile has direct experience in providing this service to public safety agencies; in fact, they have experience in providing service to multiple- agency organizations, similar to LOGIS. According to the information provided, the system will provide excellent response times, and it has the reliability needed for public safety applications. This combination of factors should allow us to bring the benefits of using an integrated MDT /MCD system to the participating police departments in an efficient, cost - effective way. There is also the possibility for other city departments to make use of the system for data transmissions to and from LOGIS, and RAM has indicated an interest in pursuing this aspect. If this works out, it could provide some further help in sharing the initial costs of setting up the system. Page 9 Revised 6127194 i t LOGIS MDTIMCD COMMITTEE Recommendation Report June 24, 1994 Recommendation (continued): Another important factor in our decision is that the system offered by RAM is available and in place today. Besides Hennepin County and US WEST, it is the only other choice we saw that could say this. RAM Mobile has a proven record of system reliability (including disaster recovery planning), the ability to keep their system capacity ahead of demand, and a 24' hour monitoring and management system. These items have a cost that we pay for, but relief from building, maintaining, and managing a network of our own reduces other costs that we would incur. Even so, the rates that RAM is likely to charge are in line with the service we would receive. The last point to be made goes back to flexibility. If conditions in the . Minneapolis /St. Paul metropolitan area change significantly in two or three years, the RAM Mobile solution would make it easy to change equipment or to move to a different system entirely. The LOGIS agencies would not have a significant investment in antennas, transmitters and receivers, and the resulting management structure to deal with. Since RAM Mobile Data meets our other selection criteria, this ability to adapt quickly to changes in technology and to the availability of other systems is a compelling argument for this solution. Estimated costs are outlined in the following section. Page 10 Revised 6127194 Police LOGIS EA Depts Ah — LOGIS HP3000 DEC CADS stem MS -100 MDT System SNA MicroVAX Message Switch Gateway aL, iC l/ r Dispatch OCS CAD Software OCS Externals rt `� Terminals OCS Externals Software Software D S U Etectrocom OCS CAD -MDT Software D S U MDT Software OCS RMS - MDT Software` Eagan MDT System I nk Modem D S U Modem Dispatch Terminals i l Land data lines Modem ; j —1^ PC's with Radio Modems Modem D S U :sr_s Emulation Software State Computer RAM Mobile Data Police Car MDT's from MDT Vendor BCA, St Paul With Radio Modems Proposed LOGIS CAD to MDT Connections City of Brooklyn Center Memorandum To: City Manager Gerald G. Splinter Mayor Todd Paulson Councilmember Barb Kalligher Councilmember Kristen Mann Councilmember Dave Rosene Councilmember Celia Scott ������ F ROM: Nancy Gohman, Assistant City Manager � DATE: November 1, 1994 SUBJECT: 1995 Budget Funding Request - North Metro Highway 100 Council We have recently received a funding request from the North Metro Highway 100 Council for the 1995 budget in the amount of $3,000. The information regarding this funding request is attached in a letter dated October 24, 1994, from Duane Ostlund, President, North Metro Highway 100 Council. As you recall, the Brooklyn Center City Council has contributed to this ro'ect in the past, P J P specifically in 1994 in the amount of $2,000. Since we are into the 1995 budget process, I ask that you consider this item at the next budget work session on November 21, 1994. Attachment cc: Charlie Hansen File First Bank Ro bbinsdale i 4000 West Broadway Duane C. Ostlund Robbinsdale, Minnesota 55422 President October 24, 1994 Mr. Jerry Splinter City Manager 6301 Shingle Creek Parkway Brooklyn Center, MIN 55430 Dear 1%1r. Splinter: The North Nfetro Highway 100 Council respectfully requests inclusion in the city's 1995 budget, the amount of $3,000. Attached is the Highway 100 Council's 1994 budget. The 1995 budget is currently being drafted and will be forwarded to your attention following its approval. Please note, the city contributed to the efforts of this Council last year in the amount of $2,000. Promotional, marketing and governmental relations expenditures are expected to be significantly higher in 1995. In 1995 efforts wig be channelled to secure financial support from the local business corn- munities as welt. The Highway 100 Council's goai is to expedite the upgrading and expansion of Hinhwa.v 100. Cu=:ently, iriayors and city manaversradn- jinistrators from the communities of Ro "';iasdale, il.w Hope, Brooklyn Center and Crystal have been active participants. Notable successes include. • Successful production of a local cable special featuring comments from a variety --f ke; individuals (i.e. corridor community representatives and MN/DOT). A copy of this video is available per your request. • The final drafts are being completed on a Position Statement. This document is compiled with the assistance of MN/DOT and the Metropolitan Council for the purpose of outlining key issues associated with the corridor i.e. schedule funding, ( etc.. A co g design, ) PY of the draft is attached for Y our review. • On numerous occasions, the Council has had an opportunity to network with a variety of individuals and entities. 'i'hese meetings have been very • . ry ana encouraging A presentation can be made to the City Council regarding this request and the current status the roadway. To schedule, lease coat - Y , p act me at 536 5329. Sincerely, Duane Ostlund President, North Metro Highway 100 Council President, First Bank Robbinsdale Enclosures Member First Bank System North Metro Highway 100 Council BUDGET REVENUE 1994 Member Communities $8,000.00 Business Community -0- NMMA 1,000.00 Hennepin County -0- Total Revenue 9,000.00 OPERATING EXPENSES ]$7 4 Accounting 0.00 • Administration 1,500.00 Clerical .300.00 Governmental Relations 2,500.00 Meeting Expense 500.00 Postage 250.00 Printing 900.00 Marketir�&'Promotional Materials 1,800.00 Total Operating Expenses $8,00.00 POSITION STATEMENT FOR TRUNK HIGHWAY 100 September 29, 1994 PROJECT SCHEDULE The Minnesota Department of Transportation (MN /DOT) is continuing the work on the Trunk Highway 100 reconstruction project, The following is an estimate on the time necessary to complete the Environmental Impact Statement (EIS) portion of the project. ► Draft EIS Release Spring 1995 * Draft EiS /Public Hearing & Information Meeting Summer 1995 ► Final EIS Spring 1997 ► Final EIS Adequacy Determination Fell 1997 ► Record of Decision Winter 1997 -1998 PROJECT LIMITS • Trunk Highway 100 From Glenwood Avenue North to 50th Avenue North Munlcipalltles: Brooklyn Center, Crystal, Golden Valley, and Robbinsdale PROJECT ALTERNATIVES MN /DOT proposes to reconstruct the above referenced section of TH 100 to freeway standards. This work will result in the removal of all at -grade intersections and access locations. Existing intersections at 38th Ave. N., County State Aid Highway 81 (CSAH 81), and France Ave. N. will be replaced with new interchanges. The existing Interchanges at TH 55, Duluth Street (CSAH 66), and 42nd Ave. N. will be redesigned to current standards. Direct access to TH 100 will be closed at Holiday Lane, Thotland Road, Lindsay Street, Unity Ave., 29th Ave: N., 32nd Ave. N., 34th Ave. N., 35th Ave. N., 39th Ave, N,, Indiana Ave., and 50th Ave. N. Overpass bridges at the Chicago and Northwestern RR, the Burlington Northern RF1, Broadway Avenue (CSAH 8), and the Soo Line RR will be replaced, Two mainline build alternatives are being considered: a Four -Lane Alternative (two travel lanes in each direction) and the Six - /Four -Lane Alternative (three travel lanes in each diroction south of CSAH 81 /two travel lanes in each direction north of CSAH 81). The six -lane section of the latter alternative could have all lanes dedicated to mixed traffic or, as a subalternative, the two inside lanes (one lane In each direction) could be dedicated to high occupancy vehicle (HOV) use. Under the subalternative design, HOV vehicles transferring between TH 100 and 1 -394 would be required to • SEGMENTS / COST ESTIMATE The TH 100 project is currently divided into four segments, This numerical order is for clarity in the development process, and is not a reflection of construction staging. Estimated Costs' Construction Right-of-Way Segment 1 Glenwood Ave. to 29th Ave, N. intarchange Reconstruction/arldge Replacements $20 $12 Segment 2 29th Ave. N. to 39th Ave. N. interahange Construotion $ 9 $ 20 Segment 3 39th Ave. N. to Indiana Ave, interchange c onstruction>3 ridg e Replacements $13 $3.5 Segment 4 Indiana Ave, to 50th Ave. N. Interchange Construction/Bridge Replacements ALL $3,5 $39 ` Millions of Dollars TOTAL $47 °t tii t b J .................... .................... .....� .. .....:......� • 7R0 KLYN NTSR low h {{ CR . t ......... L .... n i7 PLY HO UTN NEw i ^_••d i a y !tops L > G I .w�.x � 0eettXSD LP 3 7 C... I "• H.fMLLM •. COLD N VAL EY L y ... ........ w OI�wAIi' .. ..iA- 1 1 ........... ... w M *a 0 MINNESOTA 0 Remnstrxt Dusting interchange JEFARTMENT ❑ New Interclwrize OF TRANSPORTATION 40 Portion of TH 100 to be Recnnstructid Primary Contact: Secondary Contact: Tim Stahl Ron Erickson • Project Manager Pre Design Engineer 582- 1305 582- 1285 IMemorandum !To: Gerald Splinter, City Manager Charlie Hansen, Finance Director From: Nancy Gohman, Assistant City Manager! i Date: November 18 1994 jRe: Prioritization and recommendation from Human Rights and Resources Commission regarding funding requests for contractual services. i Average 1 2 3 4 5 6 7 Funding Request 1 North Hennepin Mediation 96 92 71 91 71 77 94 77 $ 5,000 2 NW Hennepin Human Serv. '93 97 67 84 71 70 92 76 $ 15,136 3 CEAP 88 90 54 85 83 50 91 77 $ 9,000 4 Five Cities Transportation 79 70 82 36 75 83 59 69 $ 11,010 5 Brooklyn Peacemaker Ctr. 721 86 73 0 55 75 86 58 $ 10,000 $ 50,146 total funds requested • $ 40,860 1995 proposed budget funding limit The Human Rights and Resources Commission evaluates funding requests made yearly from nonprofit organizations.' The HRRC invites representatives from nonprofit contractual services agencies who request funding from the City to a commission meeting to make a presentation regarding their program. In the fall of 1994, the HRRC interviewed North Hennepin Mediation, NW Hennepin Human Services Council, CEAP, and Five Cities Transportation. The HRRC ranked the funding and service requests as shown above, with 1 being the highest rating and 5 being the lowest. The 1995 Manager Recommended City Budget shows funding limited to $40,860, which is lower than the total requests for funding listed above. Therefore, a priority ranking by HRRC should help the Council in making its budget funding decisions for 1995. I One final note, the City Manager does not recommend funding of CEAP. This service is more directly related to Hennepin County services than services provided by the city. I s i e' MEMORANDUM TO: Mayor and Members of the City Counci ? FROM: Gerald G. Splinter, City Manager DATE: November 18, 1994 SUBJECT: 1995 Enterprise Funds Budgets Attached are proposed budgets for the City's enterprise funds. Formal budgets for most of these funds have never been adopted before. This is not to say they have been without any control. The City Council has annually adopted rate studies for the Water, Sanitary Sewer, Storm Drainage, and Recycling Funds which amounted to budgets. In fact, the budgets for those four funds draw their numbers from the rate studies the City Council approved earlier this fall. The Earle Brown Heritage Center has been controlled by a budget which was part of the Economic Development Authority budget in the past. The Liquor Fund and Centerbrook Golf Course Fund have not had officially adopted budgets but were closely scrutinized by the City Manager. This is part of an effort we are making this year to significantly improve our overall budget process. One major focus has been the activity budget presented for the General Fund. This is the other focus, to extend budgetary control over all important City funds. F LIQUOR STORES 1995 Budget POLICIES: + Assure and enforce state and local liquor laws to insure that alcoholic products are not sold to minors and those who are obviously intoxicated. + Identify the tastes and interests of the community and develop products lines accordingly. + Provide a balance of products and services for a variety of age groups. + Continue to review the trends of new and changing product lines. It is our ultimate goal to maintain a safe community by dispensing alcoholic products to our citizens in a lawful manner and still maintain a reasonable profit. ACTIVITIES: Percent of Sales Budget STAFFING: Humboldt Liquor Store 29% 1.00 Liquor Stores' Manager Boulevard Liquor Store 34% 2.00 Liquor Store Supervisors Northbrook Liquor Store 37% 0.85 Office Assistant 100% 11.40 Cashier /Clerk 15.25 Full -time Equivalents Actual Actual Estimated Requested Manager Budget 1992 1993 1994 1995 Recommend REVENUES: Liquor Sales $835,493 $860,914 $862,798 $875,000 $875,000 Wine Sales 286,302 265,333 266,891 267,000 267,000 Beer Sales 1,373,225 1,318,596 1,372,455 1,400,000 1,400,000 Other Sales 170,731 171,030 165,375 170,000 170,000 Investment Earnings 1,203 3,125 3,300 3,300 3,300 Total Revenues $2,666,954 $2,618,998 $2,670,819 $2,715,300 $2,715,300 Less: Cost of Sales $2,011,069 $1,975,491 $2,016,468 $2,047,561 $2,047,561 Gross Profit $655,885 $643,507 $654,351 $667,739 $667,739 EXPENDITURES: Personnel $343,674 $356,468 $371,937 $362,256 $362,256 Supplies 8,357 6,481 5,098 8,500 8,500 Other Contractual Services 51,499 51,705 54,813 35,330 35,330 Building Rent 36,031 38,897 35,128 35,950 35,950 Insurance 30,550 31,534 12,266 13,220 13,220 Utilities 20,367 23 119 65 1 23, 5 23,8 0 23,810 Depreciation 28,765 29,043 10,215 25,895 25,895 Interest Expense 17,757 16,193 14,547 12,640 12,640 Capital Outlay 4,253 6,069 2,000 12,000 12,000 Contingency 0 0 0 9,050 9,050 Total Expenditures $541,253 $559,509 $529,659 $538,651 $538,651 Operating Income $114,632 $83,998 $124,692 $129,088 $129,088 General Fund Transfer $65,000 $100,000 $100,000 $100,000 $100,000 Net Income $49,632 ($16,002) $24,692 $29,088 $29,088 Staffing (FTE) 15.8 15.1 15.3 15.3 15.3 COMMENTS: The Liquor Stores experienced significant cash outflows in 1994 due to the purchase of a new cash register /inventory control system. Profits in 1994 and 1995 are needed to get the fund back to the cash position it held at the end of 1993. FUND: LIQUOR FUND Activity: HUMBOLDT STORE Activity Description This activity accounts for the Humboldt Municipal Liquor Store located at 1500 69th Avenue North. Percent of Total Sales Budget 29% 1995 Objectives 1) To increase sales. 2) To decrease shoplifting. 3) To try and maintain a constant level of part -time staff. 4) Improve efficiency due to the new liquor inventory control system & cash registers. Recommended 1995 Budget REVENUES: Liquor Sales $252,875 Wine Sales 77,163 Beer Sales 404,600 Other Sales 49,262 Investment Earnings 1,100 Total Revenues $785,000 Less: Cost of Sales $591,845 Gross Profit $193,155 EXPENDITURES: STAFFING: Personnel $115,509 0.50 Liquor Stores' Manager Supplies 3,000 0.85 Office Assistant Other Contractual Services 11,800 3.80 Cashier /Clerk Insurance 4,230 Utilities 9,280 5.15 Full -time Equivalents Depreciation 11,105 Interest Expense 12,640 Capital Outlay 4,000 Contigency 2,800 Total Expenditures $174,364 Operating Income $18,791 Comments: This budget includes a capital outlay request for the purchase and installation of surveillance equipment. FUND: LIQUOR FUND Activity: BOULEVARD STORE Activity Description This activity accounts for the Boulevard Municipal Liquor Store located at 6250 Brooklyn Boulevard. Percent of Total Sales Budget 34% 1995 Objectives 1) To increase sales. 2) To decrease shoplifting. 3) To try and maintain a constant level of part-time staff. 4) Improve efficiency due to the new liquor inventory control system & cash registers. Recommended 1995 Budget REVENUES: Liquor Sales $301,000 Wine Sales 91,848 Beer Sales 482,872 Other Sales 58,480 Investment Earnings 1,100 Total Revenues $935,300 Less: Cost of Sales $705,321 Gross Profit $229,979 EXPENDITURES: STAFFING: Personnel $121,344 0.25 Liquor Stores' Manager Supplies 3,000 1.00 Liquor Store Supervisors Other Contractual Services 12,600 3.80 Cashier /Clerk Insurance 4,540 Utilities 6,880 5.05 Full -time Equivalents Depreciation 6,185 Capital Outlay 4,000 Contingency 3,000 Total Expenditures $161,549 Operating Income $68,430 Comments: This budget includes a capital outlay request for the purchase and installation of surveillance equipment. FUND: LIQUOR FUND Activity: NORTHBROOK STORE Activity Description This activity accounts for the Northbrook Municipal Liquor Store located at 1966 57th Avenue North. Percent of Total Sales Budget 37% 1995 Objectives 1) To increase sales. 2) To decrease shoplifting. 3) To try and maintain a constant level of part-time staff. 4) Improve efficiency due to the new liquor inventory control system & cash registers. Recommended 1995 Budget REVENUES: Liquor Sales $321,125 Wine Sales 97,989 Beer Sales 512,528 Other Sales 62,258 Investment Earnings 1,100 Total Revenues $995,000 Less: Cost of Sales $750,395 Gross Profit $244,605 EXPENDITURES: STAFFING: Personnel $125,403 0.25 Liquor Stores' Manager Supplies 2,500 1.00 Liquor Store Supervisors Other Contractual Services 10,930 3.80 Cashier /Clerk Building Rent 35,950 Insurance 4,450 5.05 Full -time Equivalents Utilities 7,650 Depreciation 8,605 Capital Outlay 4,000 Contigency 3,250 Total Expenditures $202,738 Operating Income $41,867 Comments: This budget includes a capital outlay request for the purchase and installation of surveillance equipment. LIQUOR STORES 1995 Budget Detail of Capital Outlay Total Manager Description Store Cost Requested Recommended 1. Surveillance Equipment 3 @ 4000 $12,000 12,000 Total Capital Outlay $12,000 $12,000 CENTERBROOK GOLF COURSE 1995 Budget POLICIES: + Continue to provide an outstanding par three golf course which can be enjoyed to the utmost by the golfers of this area. ACTIVITIES: Percent of Budget STAFFING: Golf Operations 68% 1.00 Grounds Supervisor Grounds Maintenance 32% 2.00 Club House 0.75 Course Rangers 100% 1.50 Course Maintenance 0.25 Golf Lessons 5.50 Full -time Equivalents Actual Actual Adopted Department Manager Budget 1992 1993 1994 Requested Recommend REVENUES: Green Fees $216,491 $213,469 $241,400 $243,200 $243,200 Merchandise Sales 20,545 19,918 21,000 18,000 18,000 Concessions 18,599 17,348 18,000 18,000 18,000 Other Sales 29,288 29,298 29,600 29,500 29,500 Investment Earnings 3,633 2,332 0 Total Revenues $288,556 $282,365 $310,000 $308,700 $308,700 Less: Cost of Sales $28,102 $29,352 $30,000 $28,500 $28,500 Gross Profit $260,454 $253,013 $280,000 $280,200 $280,200 EXPENDITURES: Personnel $119,645 $121,636 $125,800 $111,567 $111,567 Admin. Services Transfer 6,500 7,000 6,800 6,200 6,200 Supplies 13,883 16,061 16,900 17,800 17,800 Other Contractual Services 10,219 17,801 18,545 17,940 17,940 Insurance 3,769 3,767 8,000 8,150 8,150 Utilities 9,770 8,943 10,375 9,500 9,500 Vehicle /Equipment Charges 0 0 22,000 19,800 19,800 Depreciation 25,435 23,236 13,365 15,725 15,725 Interest Expense 56,000 54,000 54,000 54,000 54,000 Total Expenditures $245,221 $252,444 $275,785 $260,682 $260,682 Net Income $15,233 $569 $4,215 $19,518 $19,518 Staffing (FTE) 5.6 5.8 5.5 5.5 5.5 COMMENTS: The Golf Course experienced significant cash outflows in 1994 due to the reconstruction of the pedestrian bridge and the need to transfer cash to the Central Garage Fund for past depreciation on equipment. Profits in 1995 are needed to get the fund back to the cash position it held at the end of 1993. Any excess cash is used to pay down the loan from the Capital Improvements Fund. DEPTSUM.XLS,1 1 /17/94 DEPARTMENT: Golf Course ACTIVITY: Golf Operations Activity Description This activity provides for the people wishing to play golf at Centerbrook such as purchasing green fees, buying golf equipment, and helping them to understand the rules and regulations of the course. Percent of Total Dept. Budget 68% 1995 Objectives 1) Conduct a marketing study to increase the number of golfers and improve service. 2) Increase the number of people taking lessions. 3) Make sure that the golfers are able to play at a good pace. Part -time Employees Recommended 1995 Budget Revenues Staff Allocation Green Fees $184,420 Club House 2.00 Merchandise Sales 18,000 Course Rangers 0.75 Concessions 18,000 Golf Lessons 0.25 Other Sales 29,500 Total 3.00 Total Revenues $249,920 Less: Cost of Sales $28,500 Gross Profit $221,420 Expenditures Personnel $50,471 Admin. Services Transfer 6,200 Supplies 7,100 Contractual Services 15,340 Insurance 8,150 Utilities 9,500 Depreciation 15,725 Interest Expense 54,000 Total $166,486 Comments: DEPARTMENT: Golf Course ACTIVITY: Grounds Maintenance Activity Description This activity provides for the maintenance of the golf course. Percent of Total Dept. Budget 32% 1995 Objectives 1) To improve the appearance of the course by adding more flowers and trees. Part -time Employees Recommended 1995 Budget Revenues Staff Allocation Green Fees $94,196 Grounds Supervisor 1.00 Course Maintenance 1.50 Total $94,196 Total 2.50 Expenditures Personnel 61,096 Supplies 10,700 Other Contractual Servi 2,600 Vehicle /Equipment Cha 19,800 Total $94,196 Comments: EARLE BROWN HERITAGE CENTER 1995 Budget POLICIES: + To provide meeting facilities which will attract multiple day events thereby providing revenue to area hotel, restaurant, and retail facilities. + To provide the highest level of product and service in the meeting industry. + To develop new corporate, social, and trade show clients while retaining current users. + To preserve the historic redevelopment of Brooklyn Farm by maintaining the physical plant and grounds. Mission Statement: Earle Brown Heritage Center is dedicated to providing unique facilities for meetings, conferences and special events with style, courtesy and superior service. ACTIVITIES: Percent of Sales Budget STAFFING: Convention Center 81% 1.00 Manager Inn on the Farm 10% 1.00 Maintenance Supervisor Earles Restaurant 5% 1.00 Sales Director Office Rentals 4% 3.00 Sales Managers 100% 1.00 Maintenance Custodian 1.00 Secretary 1.00 Receptionist 1.00 Innkeeper 1.00 Asst. Innkeeper 8.00 Set -up Crew 1.45 Custodian 1.40 Maintenance Worker 0.72 Office Assistant 1.60 Night Auditor 2.60 Hostess/Cook 2.00 Housekeeping/Laundry 28.77 Full -time Equivalents Actual Actual Adopted Estimated Budget Budget 1992 1993 1994 1994 1995 REVENUES: Room Rentals $ 484,003 $605,776 $654,400 $676,644 $795,000 Food & Liquor Sales 73,689 908,371 919,800 1,254,996 1,399,227 Equipment Rents 48,291 73,014 63,000 86,600 101,310 Office Rents 108,842 112,823 116,363 111,498 103,803 Other 80,332 112,111 125,735 120,854 137,899 Total Revenues $795,157 $1,812,095 $1,879,298 $2,250,592 $2,537,239 EXPENDITURES: Personnel $550,601 $587,078 $617,425 $620,004 $722,727 Contract Personnel 0 291,289 309,764 396,521 456,863 Management Fees 0 75,271 94,150 109,372 122,500 Food & Liquor Costs 19,975 236,303 249,461 322,976 368,051 Supplies 60,577 127,029 160,858 136,991 146,588 Utilities 120,713 128,653 128,690 134,375 137,575 Other 252,096 331,158 308,653 367,370 336,245 Capital Outlay 38,862 30,824 22,537 35,581 82,656 Contigency 0 18,947 0 22,090 Total Expenditures $1,042.824 $1,807,605 $1,910,485 $2,123,190 $2,395,295 Operating Income ($247,667) $4,490 ($31,187) $127,402 $141,944 Administrative Services (54,240) (38,160) (42,192) (42,192) (51,916) Property Taxes (62,541) (65,679) (71,800) (64,499) (67,196) Interest Paid to the City (9,141) (14,298) (8,000) (20,711) (22,832) Net Income (Loss) ($373,589) ($113,647) ($153,179) $0 $0 Staffing (FTE) 23.8 24.4 24.3 25.0 28.8 COMMENTS: See following page for budget comments. EBHC 1995 BUDGET ADDITIONAL COMMENTS The 1995 budget is aggressive. The Heritage Center has the growth potential to sustain this budget. The very high level of service provided to the clients does require a commitment to staffing increases to meet the demand. However, current staff is stretched and will not be able to support the additional sales volume development without the additions requested. The addition of Earle's to the Inn, while still in its first year start -up mode, is providing the additional exposure we had hoped to see. Reservations are increasing and the guest response to the concept has been overwhelming. Area hotels, restaurants and shopping are benefiting from the Centers presence in the community. The trickle down effect in 1994 should be close to half a million dollars. The facility also has provided visibility and recognition to Brooklyn Center in terms of uniqueness, product value, and service levels. These intangible assets are of great value. FUND: EARLE BROWN HERITAGE CENTER Activity: CONVENTION CENTER Activity Description The Convention Center provides a unique conference, social, and trade show environment where guest service and client satisfaction build a solid base of repeat customers. Catering provides food and beverage services to the facility as a whole while maintaining the highest service standards, exceptional food product, and consistent level of profitability. Percent of Total Sales Budget 81% 1995 Objectives Convention Center 1) Continue to develop new clients through direct mail campaigns and on -site facility exposure. 2) Continue prior trends of yearly business increases by booking an additional 24% over 1994. 3) Continue ongoing maintenance & painting required to present the facility in the best possible light. Catering 1) Continue to provide the finest quality of food and beverage to Heritage Center clients. 2) Develop additional revenue by increasing some food prices and by creating new menus to satisfy repeat clients. 3) Aggressively market and sell catering services to reflect a sales increase consistent with the increased room rental budget. 1993 1994 1995 Actual Estimated Budget REVENUES: Room Rentals $408,456 $460,000 $585,000 Food & Liquor Sales 900,703 1,202,982 1,260,875 STAFFING: Equipment Rentals 73,014 86,600 101,310 0.80 Manager Other 100,254 100,498 111,102 0.73 Maint. Supervisor Total Revenues $1,482,427 $1,850,080 $2,058,287 1.00 Sales Director 3.00 Sales Manager EXPENDITURES: 0.73 Maint. Custodian Personnel $384,872 $395,179 $500,166 1.00 Secretary Contract Personnel 291,289 381,976 431,630 0.94 Receptionist Management Fees 75,271 105,172 110,500 8.00 Set -up Crew Food & Liquor Costs 218,127 274,020 305,885 1.05 Custodian Supplies 102,850 111,667 116,307 1.05 Maint. Worker Promotion/Advertising 69,984 54,825 57,053 0.72 Office Assistant Repairs & Rentals 54,295 53,318 59,662 19.02 FTE's Utilities 104,909 108,591 111,660 Other 121,423 123,620 130,409 Capital Outlay 29,530 34,374 70,808 Contingency 0 0 17,126 Total Expenditures $1,452,550 $1,642,742 $1,911,206 Operating Income (Loss) $29,877 $207,338 $147,081 Administrative Services (21,200) (26,370) (28,842) Interest Paid to the City (7,820) (11,654) (12,157) Net Income /(Loss) $857 $169,314 $106,082 Comments: See following pages for budget comments, capital outlay and personnel justifications. CONVENTION CENTER 1995 BUDGET ADDITIONAL COMMENTS Revenues reflect the effect of a 24% increase in room rentals. This is a very aggressive goal which requires the addition of one sales position and a half -time clerical position. The Heritage Center has developed a solid customer - oriented service reputation. Maintaining this reputation creates high staffing demands. Capitol Outlay: Carpet in the Stable is worn, stained, has some burns and needs replacing. We rent chairs too often due to higher occupancy and need to purchase 200 (minimum order for price break). Computers are six years old, technologicaly outdated, and need upgrading to allow quicker response to clients and increased help to staff. Sales revenues have continued to grow at a pace of 12 -15% year to year for the last three years. Catering revenues reflect increased volume due to the anticipated higher level of business in 1995 and due to a small (approximately 3 %) price increase over 1994 prices. The following chart will clearly show the growth of activity in terms of number of events held by year: 1990 (April to December) 135 events 1991 (Full year) 237 events +75.5% 1992 (Full year) 401 events +69% 1993 (Full year) *467 events + 16.4% 1994 (10 Month actual,2 month est.) *497 events +6.2% *Increased booking of multiple day events. CONVENTION CENTER 1995 Budget Detail of Capital Out i Total Manager Description Unit/Cost Requested Recommended 1. Remodel Loft Area $6,000 $6,000 2. Carpet - Captains /Estate 13,557 13,557 3. Action Stacker Chairs 200 @ 121 24,192 24,192 4. Sound System - C Barn 1,820 1,820 5. Hand -Held Microphone 1 @ 1086 1,086 1,086 * 6. Buhl Overhead & Cara 1 @ 902 902 902 * 7. 10 x 10 First Fold Screen 1 @ 602 602 602 " 8. Television & Cart 1 @ 771 771 771 * 9. Network Computer 1 @ 4500 4,500 4,500 10. Personal Computers 6 @ 2260 13,560 13,560 11. Mail Server Pack 1 @ 455 455 455 12. Microsoft Office Upgrade 3 @ 282 846 846 13. Microsoft Office 3 @ 479 1,437 1,437 14. Computer Training 1,080 1,080 Total Capital Outlay $70,808 $70,808 Comments: The noted capital outlay items are supported by rental charges to clients. Expected payback period for the microphone, overhead & cart, and screen is less than one year. FUND: EARLE BROWN HERITAGE CENTER Activity: INN ON THE FARM Activity Description The activity of the Inn is a two -fold process: 1. A historic preservation which serves as a showcase for much of the community's past; and 2. Serving as a working Country Inn serving social, corporate, and travel clientele who are visiting and /or doing business in the North Metro Area. Percent of Total Sales Budget 10% 1995 Objectives 1) To continue development of corporate clients who are the base of our repeat business. 2) To maintain the strong occupancy levels experienced during 1994. 3) To develop direct mail or other promotions to increase winter occupancy. 1993 1994 1995 Actual Estimated Budget REVENUES: Room Rentals $183,360 $203,244 $210,000 Meal Sales 7,668 19 ,975 25,200 STAFFING: Facility Rentals 13,960 13,400 13,100 0.10 Manager Other 6,635 15,527 8,533 0.10 Maint. Supervisor Total Revenues $211,623 $252,146 $256,833 0.10 Maint. Custodian 0.80 Innkeeper EXPENDITURES: 0.80 Asst. Innkeeper Personnel $179,672 $186,068 $175,491 0.06 Receptionist Supplies 18,299 19,182 21,915 1.60 Night Auditor Food Costs 18,176 37,931 30,550 2.60 Hostess /Cook Other Services 25,331 28,825 24,674 2.00 Housekeeper Advertising 25,851 17,606 15,126 Repairs & Rentals 15,511 12,784 8,531 8.16 FTE's Insurance 1,381 3,719 3,884 Utilities 17,023 18,528 18,572 Capital Outlay 740 1,207 8,726 Contingency 0 0 3,618 Total Expenditures $301,984 $325,850 $311,087 Operating Income (Loss) ($90,361) ($73,704) ($54,254) Administrative Services ($12,720) ($10,548) ($14,421) Property Taxes (29,133) (28,626) (29,816) Interest Paid to the City (6,478) (9,057) (10,675) Net Income /(Loss) ($138,692) $1� ($109,166) Comments: See following pages for budget comments, capital outlay and personnel justifications. i INN ON THE FARM 1995 BUDGET ADDITIONAL COMMENTS Revenue from overnight accommodations reflects an occupancy rate of 68% at an A.D.R. (average daily rate) of $85.00. Room prices have been raised up to $20.00 per room per night to create a unified single price structure (except for suite). Corporate rate continues at $72.00 weekdays, $90.00 weekends. Occupancy levels have grown from 16% in 1991 to approximately 65% for 1994, and has averaged over 75% since June. Seminar and retreat business has strongly developed in the last two years from 67 to 170 (est.), an increase of 253 %. The high occupancy levels, increased corporate seminar business, and addition of a restaurant require that the Innkeeper have an assistant trained in the management of the Inn. Hours projected for this position are deleted from part -time hours. The additional cost of the position is the benefits package which will aid in keeping that trained staff person. Capitol outlay requires purchase of 22 chairs for the Sunroom. Original chairs purchased are worn out, unraveling and need to be replaced. New chairs speced are similar in appearance but are far more durable and comfortable for day long seminar use. INN ON THE FARM 1995 Budget Detail of Capital Outlay Total Manager Description Unit/Cost Requested Recommended 1. Commercial Washer and Commercial Dryer 2 @700 $1,400 $1,400 2. Chairs for Sunroom 22 @ 333 7,326 7,326 Total Capital Outlay $8,726 $8,726 FUND: EARLE BROWN HERITAGE CENTER Activity: EARLES Activity Description Earles serves a complement to the Inn and the Heritage Center as a whole by offering the complete package of overnight accommodations and a dining opportunity. Earles features Midwest cuisine of the past and present which is in keeping with the spirit of a historic preservation. Percent of Total Sales Budget 5% 1995 Objectives 1) Develop a minimum occupancy average of 32 covers. 2) Maintain exceptional food quality while promoting regional gourmet cuisine. 3) Provide unparalleled service to guests. 4) Increase exposure to the Inn through Earle's guests. 1994 1995 Estimated Budget REVENUES: Meal Sales $26,039 $96,512 Liquor Sales 6,000 16,640 Total Revenues $32,039 $113,152 EXPENDITURES: STAFFING: Personnel $5,970 $18,316 0.05 Manager Contract Personnel 14,545 25,233 0.02 Maintenance Supervisor Management Fees 4,200 12,000 0.02 Maintenance Custodian Supplies 768 985 0.20 Innkeeper Food & Liquor Costs 11,025 31,616 0.20 Asst. Innkeeper Other Services 1,396 10,904 Advertising 9,444 4,399 0.49 FTE's Repairs S Rentals 0 1,028 Opening Costs 44,789 0 Contingency 0 287 Total Expenditures $92,137 $104,768 Operating Income (Loss) ($60,098) $8,384 Administrative Services $0 ($2,885) Net Income /(Loss) ($60,098) $5,499 Comments: Food revenues are based on 32 reservations (covers) per night, two nights a week (104 nights for the year), at a per person cost of $28.50. Liquor revenues are based on the same reservation basis at a $5.00 per person cost. Occupancy is figured at 40 %. Earle's is still in its first year start up mode. The critic's reviews of food and concept have been very complimentary. Guests continue to express delight at the concept and content. Saturday reservations are running about 25 covers, with Friday at lower levels. As with the Inn and Convention Center, growth will come with exposure. FUND: EARLE BROWN HERITAGE CENTER Activity: OFFICE RENTALS Activity Description The H and D Barns provide commercial office rental space for a variety of tenants under leases to the Heritage Center for specified terms. Percent of Total Sales Budget 4% 1995 Objectives 1) To maintain 100% occupancy of the commercial office space. 2) To continue to provide appropriate maintenance to maintain current high standards. 3) To respond to tenant concerns, if any, in a timely manner. 1993 1994 1995 Actual Estimated Budget REVENUES: Office Rents $112,823 $111,498 $103,803 Cleaning Services 4,288 4,529 4,620 Other 934 300 544 Total Revenues $118,045 $116,327 $108,967 EXPENDITURES: STAFFING: Personnel $22,534 $32,787 $28,754 0.05 Manager Supplies 5,880 5,374 7,381 0.15 Maint. Supervisor Other Services 7,322 7,782 14,634 0.15 Maint. Custodian Repairs & Rentals 8,650 7,133 3,525 0.40 Custodian Insurance 1,410 2,129 2,416 0.35 Maint. Worker Utilities 6,721 7,256 7,343 Capital Outlay 554 0 3,122 1.10 FTE's Contingency 0 0 1,059 Total Expenditures $53,071 $62,461 $68,234 Operating Income (Loss) $64,974 $53,866 $40,733 Administrative Services (4,240) (5,274) (5,768) Property Taxes (36,546) (35,873) (37,380) Net Income /(Loss) $24,188 $12,719 ($2,415) Comments: Revenues reflect: 1. Loss of Farm Journal in "H" Barn. 2. Move of North Metro CVB from Stable to "H" Barn. 3. Use of former CVB space for Heritage Center Catering staff. See following pages for capital outlay justifications. OFFICE RENTALS 1995 Budget Detail of Capital Outlay Total Manager Description Unit/Cost Requested Recommended 1. Paint Sprayer 1 @ 2024 $1,622 $1,622 2. Remove Office Walls 1,500 1,500 Total Capital Outlay $3,122 $3,122 WATER UTILITY FUND 1995 Budget POLICIES: + Maintain a comprehensive system for water pumping, storage and distribution + Identify infrastructure needs and develop funding mechanisms which are fiscally responsible while providing adequate revenue This fund accounts for the provision of water to customers. Administration, wells, storage, and distribution are included. The fund is managed by the Public Services Director and has been established as an enterprise fund. Enterprise funds are self supporting activities of the city which render services on a user charge basis to the general public ACTIVITIES: Percent of Budget STAFFING: Well Maintenance & Repair 18% 0.48 Public Utilities Supervisor Tower Maintenance & Repair 1% 4.43 Maintenance II General Maintenance & Repair 37% 0.58 Part Time Work for Customers /Contractors 21% 5.49 Full -Time Equivalents Water Quality /Safety 11 % Administration & Billing 12% 100% Actual Actual Estimated Department Manager Budget 1992 1993 1994 Requested Recommend REVENUES: Service to Customers $843,697 $772,401 $943,000 $1,032,000 $1,032,000 Meter Sales 18,401 30,346 20,000 19,000 19,000 Penalties 34,759 45,387 30,000 30,000 30,000 Investment Earnings 286,501 280,860 237,644 219,531 219,531 Special Assessments 28,283 30,101 19,000 20,000 20,000 Other Revenue 1,767 820 1,000 1,000 1,000 Total Revenues $1,213,408 $1,159,915 $1,250,644 $1,321,531 $1,321,531 EXPENDITURES: Personnel $244,213 $228,702 $221,967 $215,193 $215,193 Supplies 105,388 68,699 90,312 92,700 92,700 Other Contractual Services 173,799 127,291 148,542 199,099 199,099 Utilities 134,905 128,901 135,346 142,113 142,113 Depreciation 233,447 267,279 246,500 260,000 260,000 Interest and Fiscal Fees 1,940 0 0 0 0 Capital Outlay 0 0 0 31,000 31,000 Total Expenditures $893,692 $820,872 $842,667 $940,105 $940,105 Operating Income $319,716 $339,043 $407,977 $381,426 $381,426 Vehicle Maint. Reimbursement $0 $16,925 $39,414 $43,218 $43,218 Admin. Services Transfer 104,100 88,581 102,635 115,652 115,652 Total Transfers $104,100 $105,506 $142,049 $158,870 $158,870 Net Income $215,616 $233,537 $265,928 $222,556 $222,556 Staffing (FTE) 5.5 5.5 5.5 5.5 5.5 COMMENTS: The above schedule does not include proposed substantial capital outlays associated with street or utility improvement projects. Please see the attached utility rate study for a more complete picture of the utility's financial condition. Substantial profits are needed to provide the cash flow for construction projects. WATER UTILITY RATE STUDY: 1995 OPTION 1: Publutil \watrat95 08-Se p 95 .. i 1992 .. > ... 1999 1;994 ) 995 19'96 3'997 °.19$8 EXPENDITURES 1) Operations Personal Service 348,313 317,283 324,083 330,845 344,079 357,842 368,577 Contractual 173,799 144,216 148,542 152,999 157,589 162,316 167,186 Supplies & Materials 105,388 68,699 90,000 92,700 95,481 98,345 101,296 Heat, Light & Power 134,905 128,901 135,346 142,113 149,219 156,680 164,514 Interest on Debt 1,855 0 0 0 0 0 0 Vehicle Operating Costs 39,414 43,218 45,000 49,000 54,000 State Connection Surcharge 0 0 46,100 46,100 46,100 46,000 46,000 Depreciation Expense 233,447 267,279 246,500 260,000 297,000 325,000 339,000 TOTAL EXPENDITURES $997,707 $926,378 $1,029,986 $1,067,975 $1,134,468 $1,195,184 $1,240,573 REVENUES 2) Billing Revenues $843,697 $772,401 $943,000 1,032,000 1,080,000 1,128,000 1,164,000 Water in MGAL 1,320,000 1,150,000 1,150,000 1,200,000 1,200,000 1,200,000 1,200,000 .. ..... ; :::..::.::.... . ::, RATE 113(10 {3/�L :: ,:.: >;il 64 �0 73 .::... , �� :..: ...:.::...;:...:...:....:. 3) Miscellaneous Operating 53,160 75,733 60,000 60,000 60,000 60,000 60,000 4) Miscellaneous Non- operating 30,050 30,921 10,000 10,000 10,000 10,000 10,000 5) 1/2 Interest Earnings (Phased Out By 1996) 114,600 84,258 47,529 21,953 0 1 0 0 TOTAL REVENUES $1,041,507 $963,313 $1,060,529 $1,123,953 $1,150,000 $1,198,000 $1,234,000 :;::> . $4 AQ: G 93.5.:: : �a4.3 S55 :978' ::.. .... t 532:..: < >" :::: ... ::> :: <: >:<'.... 57.3 ) PROJECTED 1NG OR 3 -0� . ....::. ,8 . . .:. : . .::::::.:.:::...::.< ..: • :..::.:::.:.:.:,.:.:... ! .3 ... ....:. ... : .... 6) 1/2 Interest Earnings (100% By 1996) 171,901 196,602 190,115 197,578 216,509 213,061 203,105 213 537 220 55J 253'556 $232` 1 X215 877':::: > >: >: > >:196'532 IVET.1fUGOI111E OF�LC55 ::: »:;;: <> >`:'. »::.;: .... :: ..5,7131: ::;:.::... .................... ::.... ...... ..::. ..::::.::..: :... 1392 :: 1X96 1994 1935 19.9.6., EFFECT ON CASH & INVESTMENTS: 7) Start of Year Cash & Inv $4,450,204 $4,665,394 $4,752,886 $4,390,625 $4,330,181 $4,261,222 $4,062,100 8) Capital Outlay (188,958) (413,324) (829,420) (574,000) (598,000) (740,000) (200,000) 9) Net Income or Loss 215,701 233,537 220,659 253,556 232,041 215,877 196,532 10) Bond Debt Retired (45,000) 11) Depeciation Add -back 233,447 267,279 246,500 260,000 297,000 325,000 339,000 7.52 886 �4 . 9(1625 94 3303 1 >81 2"6 t 222 $�# 1162 141Q ....... 4 39763Z;: 1 €2 End: of Y.sar> Cash. & :Inv .....:.:......:::>: : >:`: > <:::+4,6C5,3..::..: ::..:� ... .,.... .... , ......:::::....:.R ... ....... .... .,. . ................ I .............:.:..: ;.:: ; >.::: >;:::.:.....................................::::.::.:.::.::::.::::::.::...:::::::.:.::.::::..:::::.:.....::...:..::...::::::.:...:...:.:....:....:.:.:.:.::.:..:.:.::.:..:..:..::.:...:.:.:.:.::...::...::::.::..:.::..:::.:.............:..::........::..:... .................:.::.:......:: . Restricted Inv 3,700,000 3,700,000 3,700,0001 3,700,000 3,700,000 3,700,000 3,700,000 Unrestricted Inv 965,394 1,052,886 690,625 630,181 561,222 362,100 697,632 DEPARTMENT: Water (156) ACTIVITY: Well Maintenance And Repair Activity Description This activity includes: 1) Maintenance of the city's nine wells, which includes buildings, equipment and property. 2) Monitoring the Jordan Aquifer, which is the city's source of water. Percent of Total Dept. Budget 18% 1995 Objectives 1) Continue six year maintenance cycle for wells. Pull, inspect and make necessary repairs. 2) Monitor static /pumping levels and well depths as required by the MN Dept. of Health. 3) Maintain chemical feed equipment. Repair, replace and continue preventative maintenance. 4) Make necessary emergency repairs in a timely fashion. 5) Preventative maintenance on electrical controls and SCADA telemetry system. 6) Building and grounds repair and maintenance. 7) New electric controls at wells 5, 6 and 7. Requested 1995 Budget Revenues Property Tax/Misc $16,800 Service Charges 180,116 Total $196,916 Expenditures Staff Allocation FTE's Personnel $51,647 Public Utilities Supervisor 0.04 Supplies $25 029 Maintenance II 0.99 PP , Utility Charges ges $38,371 Part -time 0.03 Contractual Services $0 FTEs, this activity 1.06 Vehicle Services $11,669 Depreciation $70,200 Total $196,916 Comment DEPARTMENT: Water (156) ACTIVITY: Tower Maintenance And Repair Activity Description This activity includes: Maintenance of the city's three elevated storage tanks, which have a combined total of three million gallons. Percent of Total Dept. Budget 1% 1995 Objectives 1) Routine inspections, interior and exterior, to maintain integrity. 2) Maintain tower coatings to insure structural integrity, complying with all state and federal rules and regulations pertaining to application. 3) Maintain proper fluctuation during winter months to avoid possible damage to structures. 4) Maintain accurate calibration of all tower levels. 5) Landscape tower #1. 6) Paint tower #2 Requested 1995 Budget Revenues Property Tax/Misc $700 Service Charges 6,832 Total $7,532 Expenditures Staff Allocation FTE's Personnel $2,152 Public Utilities Supervisor 0.01 Supplies $927 Maintenance II 0.01 Utility Charges $1,421 Part -time Contractual Services $0 FTEs, this activity 0.02 Vehicle Services $432 Depreciation $2,600 Total $7,532 Comment i DEPARTMENT: Water (156) ACTIVITY: General Maintenance And Repair Activity Description This activity includes : Maintenance and emergency repair of the water distribution system and its appurtenances. The city has 115 miles of water main, 1,411 water valves and 837 fire hydrants. Percent of Total Dept. Budget 37% 1995 Objectives 1) Routine maintenance and emergency repair of fire hydrants. 2) Routine maintenance and emergency repair of gate valves. 3) Repair of water main breaks. 4) Seasonal and routine flushing of water mains 5) Update SCADA hardware and software. Requested 1995 Budget Revenues Property Tax/Misc $18,900 Service Charges 384,610 Total $403,510 Expenditures Staff Allocation FTE's Personnel $58,102 Public Utilities Supervisor 0.06 Supplies $27,810 Maintenance II 0.94 Utility Charges $42,634 Part -time 0.20 Contractual Services $152,999 FTEs, this activity 1.20 Vehicle Services $12,965 Depreciation $78,000 Capital Outlay $31,000 Total $403,510 Comment DEPARTMENT: Water (156) ACTIVITY: Work For Customers And Contractors Activity Description This activity includes : Maintenance of meters, locating water mains and services and providing services for customers and contractors. The city has 8,336 metered residential connections and 375 metered commercial /industrial connections. Percent of Total Dept. Budget 21% 1995 Objectives 1) Change, read and repair residential and commercial water meters. 2) Provide locating services as per Gopher State One Call. 3) Inspect new water services and mains and disconnects. 4) Provide field accounting such as red tags and shut offs. 5) Provide public information related to ordinances, rules and specifications. 6) Provide fire flow information and assist insurance companies in gathering additional information as needed. i.e. assist with fire flow testing. Requested 1995 Budget Revenues Property Tax/Misc $20,300 Service Charges 214,276 Total $234,576 Expenditures Staff Allocation FTE's Personnel $62,406 Public Utilities Supervisor 0.02 Supplies $29,664 Maintenance II 1.14 Utility Charges $45,476 Part -time 0.11 Contractual Services $0 FTEs, this activity 1.27 Vehicle Services $13,830 Depreciation $83,200 Total $234,576 Comment DEPARTMENT: Water (156) ACTIVITY: Water Quality And Safety Activity Description This activity includes: 1) Testing of the municipal water supply as required, plus additional proactive testing. 2) Training in chemical handling and safety, machine and work zone safety and other training deemed necessary. Percent of Total Dept. Budget 11% 1995 Objectives 1) Eight bacteria samples taken weekly, as required by the state health dept. 2) Daily flouride samples collected and tested in house. Monthly report to the state. 3) Lead /copper and other samples collected as required by the state health dept. 4) Proactive samples collected and tested in house and by contracted labs. 5) Training sponsored by the MN Dept. of Health 6) Yearly training by the city in right to know, confined space entry and work zone safety and other training as deemed necessary. Requested 1995 Budget Revenues Property Tax/Misc $6,300 Service Charges 112,970 Total $119,270 Expenditures Staff Allocation FTE's Personnel $19,367 Public Utilities Supervisor 0.02 Supplies $9,270 Maintenance II 0.37 Other Contractual $46,100 Part -time 0.01 Utility Charges $14,211 FTEs, this activity 0.40 Depreciation $26,000 Vehicle Services $4,322 Total $119,270 Comment Capital outlay items include; a truck and truck mounted drill rig and a cut off saw. • DEPARTMENT: Water (156) ACTIVITY: Administration & Billing Activity Description This activity includes : Administration of water department functions, practices, rules and procedures. Percent of Total Dept. Budget 12% 1995 Objectives 1) Begin preparing public facilities plan as required by the metropolitan council. Plan is due by January 1, 1996. 2) Maintain records and prepare regular and special reports as required. 3) Supervise operation and maintenance of the municipal water supply system. 4) Monitor operational budget and authorize expenditures in compliance with policies and procedures. 5) Supervise programs to monitor water consumption and enforce policies related to delinquent accounts, as well as work by others which may impact the public utilities system. 6) Review and evaluate the performance of utility personnel and provide training, positive reinforcement and constructive directives. 7) Enforce safety and environmental rules and regulations. 8) Keep divisional personnel currently informed of City polices /procedures and accountable for their job responsibilities. 9) Evaluate and coordinate the appropriate response to emergency situations. Requested 1995 Budget Revenues Property Tax/Misc $7,000 Service Charges 130,171 Total $137,171 Expenditures Staff Allocation FTE's Personnel $21,519 Public Utilities Supervisor 0.33 Supplies $0 Maintenance II 0.13 Admin Services $115,652 Part -time 0.00 Contractual Services $0 FTEs, this activity 0.46 Capital Outlay $0 Total $137,171 Comment WATER UTILITY FUND 1995 Budget Detail of Capital Outlay Total Manager Description Unit/Cost Requested Recommende 1. Truck Mounted Drill Rig 1 @13,000 $13,000 $13,000 Z. Truck - replacement for existing 1 @ 17,000 17,000 17,000 truck, to be fitted with drill rig 3. Cut Off Saw 1 @1,000 1,000 1,000 Total Capital Outlay $31,000 $31,000 SANITARY SEWER FUND 1995 Budget POLICIES: + Maintain a comprehensive system for collection and pumping of sanitary sewage + Identify infrastructure needs and develop funding mechanisms which are fiscally responsible while providing adequate revenue This fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift stations. Sewage is treated by the Metropoiltan Council Wastewater Services, whose fees account for approximately 72% of this fund's expenditures. The fund is managed by the Public Services Director and has been established as an enterprise fund. Enterprise funds are self supporting activities of the city which render services on a user charge basis to the general public ACTIVITIES: Percent of Budget STAFFING: Lift Station Maintenance 7% 0.42 Public Utilities Supervisor General Maintenance 14% 2.20 Maintenance 11 Work for Customers 2% 0.20 Part Time Administration & Billing 5% 2.82 Full -Time Equivalents M.C.W.S. Charges 72% 100% Actual Actual Estimated Department Manager Budget 1992 1993 1994 Requested Recommend REVENUES: Service to Customers $1,920,796 $2,114,429 $2,229,978 $2,237,415 $2,237,415 Investment Earnings 221,547 201,091 166,124 152,647 152,647 Other Revenue 560 921 1,000 1,000 1,000 Total Revenues $2,142,903 $2,316,441 $2,397,102 $2,391,062 $2,391,062 EXPENDITURES: Personnel $95,890 $93,861 $112,680 $123,696 $123,696 Supplies 12,995 13,999 14,699 15,434 15,434 Other Contractual Services 71,898 58,315 79,002 82,952 82,952 M.C.W.S. Charges 1,411,582 1,364,719 1,341,382 1,394,964 1,394,964 Utilities 16,889 17,762 18,650 19,583 19,583 Depreciation 194,879 126,055 132,000 152,000 152,000 Capital Outlay 16,520 16,520 Total Expenditures $1,804,133 $1,674,711 $1,698,413 $1,805,149 $1,805,149 Operating Income $338,770 $641,730 $698,689 $585,913 $585,913 Vehicle Maint. Reimbursement $0 $16,925 $18,650 $68,237 $68,237 Admin. Services Transfer 104,100 88,569 82,450 77,102 77,102 Total Transfers $104,100 $105,494 $101,100 $145,339 $145,339 Net Income $234,670 $536,236 $597,589 $440,574 $440,574 • Staffing (FTE) 2.8 2.8 2.8 2.8 2.8 COMMENTS: The above schedule does not include proposed substantial capital outlays associated with street or utility improvement projects. Please see the attached utility rate study for a more complete picture of the utility's financial condition. Substantial profits are needed to provide the cash flow for construction projects. SAN95.XLW,11 /18/94 SANITARY SEWER RATE STUDY: 1995 OPTIONI: PURateslsewrat95 09-Sep-95 EXPENDITURES 1) Operations Personal Service 199,990 182,430 187,903 200,798 206,822 213,027 219,417 Contractual Service 71,898 75,240 79,002 82,952 87,100 91,455 96,027 Supplies & Materials 12,995 13,999 14,699 15,434 16,206 17,016 17,867 Heat, Light, & Power 16,889 17,762 18,650 19,583 20,562 21,590 22,669 Vehicle Operating Costs 60,000 68,237 75,000 83,000 91,000 Depreciation Expense 194,879 126,055 133,000 152,000 198,000 244,000 259,000 Subtotal: City O &M Expense $496,651.00 $415,486.00 $493,253.95 $539,003.60 $603,688.97 $670,086.98 $705,980.80 MCWS Charges $1,411,582.00 $1,364,719.00 $1,341,312.00 $1,394,964.48 $1,450,763.06 $1,508,793.58 $1,569,145.32 TOTAL EXPENDITURES $1,908,233.00 $1,780,205.00 $1,834,565.95 $1,933,968,08 $2,054,452.03 $2,178,880.56 $2,275,126.12 REVENUES 2) Billing Revenues $1,920,796 $2,114,429 $2,229,978 $2,237,415 $2,340,541 $2,479,453 $2,539,945 Residential Accts 6,845 6,827 6,650 6,610 6,480 6,455 6,430 Etuatterf Char a $t3 75 ?fq0 $42::54 Y. ,., ,...9.. .. ; .. 511 ; S!i5;0i1 -_ .$4713Q , $49 Senior Accts 1,625 2,170 2,100 2,150 2,000 2,025 2,050 Ctuerferiy Chg►9 4 : ..:.::.. 9 G . 32� ov> sz3?ao s23 an :..... .....�a�s ...... ...: .:¢2s 93 ¢26s$: ................ . Apartment Accts 3,523 3,545 3,515 3,515 3,510 3,510 3,500 Quarterly Charge $25.03 $28.00 $29.75 $29.75 $31.50 $33.25 $33.95 Non - residential Water 234,600 285,000 285,000 290,700 296,500 302,400 308,400 RATEYE 10q..OGAL........ $9:Q3 $1 BO $17A $1 7q : >.... .. $l :Bp .. ... ...:...$ .. $1,9d 3) Miscellaneous Operating 0 O 0 0 0 0 O 4) Miscellaneous Non- operating 560 921 1,000 1,000 1,000 1,000 1,000 5) Interest Earnings (Phased Out By 1996) 88,619 60,327 33,225 15,265 TOTAL REVENUES $2,009,975 $2,175,677 $2,264,202 $2,253,680 $2,341,541 $2,480,453 $2,540,945 0... $95 4721*29 '2 .... .: .. $.i ..... :.:. .:.:..: ...:.::. 36.............. 6) Interest Earnings (100% By 1996) 132,928 140,764 132,899 137,382 190,401 211,521 206,889 ::.L�5 :.:::::::::...::.:::.;; ::.::.,:.::::,...::.;< ..:..:23.. 6::0.. » >:53$ 236::: »::::.::::;:::56"..5.35::!.57 09 7: �$ 5 ::::.:::.: :::::.:.;•...;..:.....:..:.:... ;.:•, ....<::......� ..: ..,..:..::..:::.:. :. : :...:.........:...:.:...::._ �..:,......::.::.:::.:.:.....:, !�.:::.::..:...��'�..,..... U ..::::.> �513,U93 : 1992 :...:: `c:..:.::. 7:993:; : >:< ^•: ;; . ...:.::1 994:... <:; :.::::: °;;....:1:995:. ' z . " . 5 :;:::<:::;.z<: _. <..• .> ... ::... .:9..99 1997:;.:. >•,:::.; ...... 1!98 EFFECT ON CASH & INVESTMENTS 7) Start of Year Cash & Inv $3,566,312 $3,060,463 $3,322,469 $3,052,934 $3,808,028 $2,644,018 $2,586,111 8) Capital Outlay (935,398) (400,285) (965,070) (1,854,000) (1,579,500) (564,000) (630,000) 9) Net Income or Loss 234,670 536,236 562,535 457,094 477,490 513,093 472,708 10) Debt Service 2,000,000 (260,000) (251,000) (268,500) 11) Depreciation Add -back 194,879 126,055 133,000 152,000 198,000 244,000 259,000 1 # e < 3' 7 2l end a Y, arast1. &.lnv .....:::........:.......: $3 060x::.. .::..:...::.3,322.456 r848,OZ8.,:: _ :.:.... :.:..:.. :. .. _:.::.. ;::. ;.;...:.:....::... ........ ............... Restricted Investments 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Unrestricted Investments 2,760,463 3,022,469 2,752,934 3,508,028 2,344,018 2,286,111 2,119,319 DEPARTMENT: San. Sewer (157) ACTIVITY: Lift Station Maintenance Activity Description This activity includes : Maintenance of the city's ten lift stations, which includes buildings, equipment and property. Percent of Total Dept. Budget 7% 1995 Objectives 1) Continue established preventative maintenance program. 2) Monitor inflow and pump efficiency. 3) Preventative maintenance on electrical controls and Intrac alarm system. 4) Building and grounds repair and maintenance. Seal #2 lift, entire building. 5) Begin engineering /design phase for replacement of #1 lift and force main. Requested 1995 Budget Revenues Property Tax/Misc $320 Service Charges 137,575 Total $137,895 Expenditures Staff Allocation FTE's Personnel $38,346 Public Utilities Supervisor 0.01 Supplies $6,020 Maintenance II 0.60 Utility Charges $7,637 Part -time 0.06 Contractual Services $0 FTEs, this activity 0.67 Vehicle Services $26,612 Depreciation $59,280 Total $137,895 Comment • DEPARTMENT: San. Sewer (157) ACTIVITY: General Maintenance And Repair Activity Description This activity includes : Maintenance and emergency repair of the city's sanitary sewer collection system and its appurtenances. The city has approximately 105 miles of sanitary sewer ranging from 8" to 24" in diameter and 8,798 service connections. Percent of Total Dept. Budget 14% 1995 Objectives 1) Continue root sawing of approximately 20 miles of main and identify trouble spots on a yearly basis. 2) Step up routine line cleaning to remove grit, grease, and roots. 3) Televise all project areas and trouble spots as identified by city staff. 4) Establish repairs and or repair projects from information obtained in 1995. 5) Reline 24" cmp from 69th avenue to #1 lift. 6) Monitor inflow and infiltration. Take necessary action to eliminate or reduce. Requested 1995 Budget Revenues Property Tax/Misc $380 Service Charges 268,618 Total $268,998 Expenditures Staff Allocation FTE's Personnel $47,004 Public Utilities Supervisor 0.01 Supplies $7,408 Maintenance II 0.67 Utility Charges $9,400 Part -time 0.14 Contractual Services $82,952 FTEs, this activity 0.82 Vehicle Services $32,754 Capital Outlay $16,520 Depreciation $72,960 Total $268,998 Comment DEPARTMENT: San. Sewer (157) ACTIVITY: M.C.W.S. Charges Activity Description This activity includes : Charges for sewage treated by the Metropoiltan Council Wastewater Services. Percent of Total Dept Budget 72% 1995 Objectives 1) Develop financial plan to ensure sufficient funds to cover charges. 2) Maintain records and prepare regular and special reports as required. Requested 1995 Budget *Revenues Property Tax/Misc $0 Service Charges 1,394,964 Total $1,394,964 Expenditures Staff Allocation FTE's Personnel $0 Public Utilities Supervisor 0.00 MCWS Charges 1 394 964 9 $ . Maintenance II 0.00 Total $1,394,964 Part-time 0.00 FTEs, this activity 0.00 Comment i DEPARTMENT: San. Sewer (157) ACTIVITY: Work For Customers and Contractors Activity Description This activity includes : Locating sanitary sewer mains and services and providing services for customers and contractors. The city has 8,798 residential /commercial service connections. Percent of Total Dept. Budget 2% 1995 Objectives 1) Provide locating services as per Gopher State One Call. 2) Inspect new installations as well as repairs on mains and services. 3) Provide public information related to ordinances, rules and specifications. 4) Continue to work with MCWS on a proactive basis. Requested 1995 Budget Revenues Property Tax/Misc $110 Service Charges 46,680 Total $46,790 Expenditures Staff Allocation FTE's Personnel $13,607 Public Utilities Supervisor 0.01 Supplies 2,006 Maintenance II 0.21 Utility Charges 2,546 Part -time 0.00 Vehicle Services 8,871 FTEs, this activity 0.22 Depreciation 19,760 Capital Outlay 0 Total $46,790 Comment Depreciation $16,720 DEPARTMENT: San. Sewer (157) ACTIVITY: Administration & Billing Activity Description This activity includes : Administration of sanitary sewer department functions, practices, rules and procedures. Percent of Total Dept. Budget 5% 1995 Objectives 1) Begin preparing public facilities plan as required by the metropolitan council. Plan is due by January 1, 1996. 2) Maintain records and prepare regular and special reports as required. 3) Supervise operation and maintenance of the sanitary sewer collection system and the city's ten lift stations. 4) Monitor operational budget and authorize expenditures in compliance with polices and procedures. 5) Supervise and monitor preventative maintenance programs, as well as, work by others which may impact the sanitary sewer system. 6) Review and evaluate the performance of utility maintenance personnel and provide training, positive reinforcement and constructive directives. 7) Enforce safety and environmental rules and regulations. • 8) Keep divisional personnel currently informed of City polices /procedures and accountability of their job responsibilities. 9) Evaluate and coordinate the appropriate res onse to emergency situations. P 9 Y Requested 1995 Budget Revenues Property Tax/Misc $200 Service Charges 101,641 Total $101,841 Expenditures Staff Allocation FTE's Personnel $24,739 Public Utilities Supervisor 0.32 Admin. Services $77,102 Maintenance II 0.11 Repair & Maint Services $0 Part -time 0.00 Contractual Services $0 FTEs, this activity 0.43 Total $101,841 Comment SANITARY SEWER FUND 1995 Budget Detail of Capital Outlay Total Manager Description Unit/Cost Requested Recommend 1. Air Compressor w /accessories 1 @13,600 $13,600 $13,600 additional equipment for Vactor 2. Air Knife I for excavating soil 1 @ 2,300 2,300 2,300 3. Two -Way hand held Radio 1@ 620 620 620 Total Capital Outlay $16,520 $16,520 i STORM DRAINAGE FUND • 1995 Budget POLICIES: + To develop a proactive system for storm water drainage, while keeping utility costs as affordable as possible + Identify infrastructure needs and develop funding mechanisms which are fiscally responsible and provide adequate revenue The storm drainage fund accounts for the operations and improvements of the storm drainage system. It incorporates not only the storm sewer system, but also water structures such as holding ponds and facilities to improve water quality. Fees are based on the amount of water running off a property and vary with both size and absorption characteristics of the parcel. The fund is managed by the Director of Public Services and is established as an enterprise fund. Enterprise funds are self supporting activities of the city which render services on a user charge basis to the general public. ACTIVITIES: Percent of Budget STAFFING: Maintenance 67% 0.00 Watershed Districts 33% 0.00 100% 0.00 0.00 Full -time Equivalents Actual Actual Estimated er Department Manager 9 Budget 1992 1993 1994 Requested Recommend REVENUES: Service to Customers $494,456 $639,837 $702,000 $780,000 $780,000 Investment Earnings 14,030 28,138 16,035 21,365 21,365 Total Revenues $508,486 $667,975 $718,035 $801,365 $801,365 EXPENDITURES: Supplies 3,481 0 0 0 0 Other Contractual Services 103,946 60,044 47,000 49,500 49,500 Vehicle Maint. Reimburse 7,000 9,728 9,728 Depreciation 0 6,685 7,000 29,000 29,000 Total Expenditures $107,427 $66,729 $61,000 $88,228 $88,228 Operating Income $401,059 $601,246 $657,035 $713,137 $713,137 Admin. Services Transfer 100,000 100,000 100,000 100,000 100,000 Net Income $301,059 $501,246 $557,035 $613,137 $613,137 Staffing (FTE) 0.0 0.0 0.0 0.0 0.0 COMMENTS: The above schedule does not include proposed substantial capital outlays associated with street or utility improvement projects. Please see the attached utility rate study for a more complete picture of the utility's financial condition. Substantial profits are needed to provide the cash flow for construction projects. SDU95.XLW,11/18/94 STORM DRAINAGE UTILITY RATE STUDY: 1995 OPTION 1: PURATES:sdurat95 09-Se . 1. 6 !1 . . �............ 197 : .. : .. ::: ........ : .... : . : ... :: EXPENDITURES 1) Operations $204,025 $166,729 $154,000 $159,228 $163,000 $164,000 $165,000 Storm Sewer Maintenance 62,388 60,000 60,000 60,000 60,000 60,000 60,000 Street Sweeping 40,000 40,000 40,000 40,000 40,000 40,000 40,000 Watershed District Dues 34,868 33,581 45,000 47,500 50,000 50,000 50,000 Local Plan 66,213 15,000 0 0 0 0 0 Vehicle Operating Costs 6,685 7,000 9,728 11,000 12,000 13,000 Public Education 556 2,000 2,000 2,000 2,000 2,000 2,000 Depreciation 29,000 114,000 121,000 136,000 2) Capital Outlay $3,402 $394,662 $1,177,500 $3,430,000 $275,000 $710,200 $525,000 Repair or Replace Defective Sections 0 10,000 100,000 550,000 100,000 300,000 200,000 Water Quality Improvement Projects 3,402 20,000 0 0 0 0 0 Facilities & Equipment 0 10,000 67,500 0 0 85,200 0 Improvement Projects 0 300,000 1,010,000 2,880,000 175,000 325,000 325,000 TOTAL EXPENDITURES $207,427 $561,391 $1,331,500 $3,618,228 $552,000 $995,200 $826,000 REVENUES 3) Billing Revenues $494,456 $639,837 $702,000 $780,000 $832,000 $858,000 $884,000 REF Acres 6,500 6,500 6,500 6,500 6,500 6,500 6,500 _ .. ASfw RATE PEW ACA ..:.......... $4 QQ .::::..::;.��QQ. .:...::...:....:... $3Q >`[:: 4 t :::.::::::.:....:...:...::.. ::........:..::::.::::::.:::::: ; :..:.. ,::::.::::......................... :: Residential rate per lot $4.50 $6.00 $6.75 $7.50 $8.00 $8.25 $8.50 Schools & govt buildings per acre $22.50 $30.00 $33.75 $37.50 $40.00 $41.25 $42.50 Multiple family & churches per acre $54.00 $72.00 $81.00 $90.00 $96.00 $99.00 $102.00 Commercial and industrial per acre $90.00 $120.00 $135.00 $150.00 $160.00 $165.00 $170.00 4) Interest Earnings 14,030 28,138 16,035 21,365 82,191 27,757 91354 TOTAL REVENUES $508,486 $667,975 $718,035 $801,365 $914,191 $885,757 $893,354 ......................:.::.::::..:.:................................:..::.:............................:..::::.::.:..:....................... ..........:.:..:.......:..::.:: - 0 R t3::>::::>:<<' ::««::.::: >:: >:::::;: >:::.:;':; ;;::<::::St1 (�;:: °:: >: >: >:<:: i.Q4:;;: >:::: >::::.:1* <:: >; >_ $``81 13 >::::: »< <: > <: 3 � 11: >:::: >:<<: >143 `<::[::::;;:;:: : ;. 6c; �! � .....................:. t: �! ��.........................:..:' t. S94:....::::::::.:::.:.;::;.;::.;:.. 19�a.::::.:::....................... J; 16.................>::>::>:::::::;::; 1. �g...................::.::; :::: >:::::::1:�9$:::::: >::;<::: EFFECT ON CASH & INVESTMENTS 5) Start of Year Cash & Inv $19,649 $320,708 $427,292 $1,643,827 $114,959 $346,965 $116,928 6) Net Income or Loss 301,059 106,584 (613,465) (2,816,863) 362,191 (109,443) 67,354 7) Debt Service 1,830,000 (241,005) (244,185) (241,595) (243,520) 8) Special Assessment /Other 1,500,000 9) Depreciation Add Back . 29,000 114,000 121,000 136,000 �:( .. rtd.c� #.:: fealr:: dash: &;It�> :;:::>::::>::> :: >:<::::....:: > <:<::::: >:< >:.....�. $! �� 3. 27. �4 X53........ � �6� ...............�.1.. ?tea ;��5............... ..................................................................................................................a................................................................... r.................................................... ............................... t....... ............................... r.................... ...................�........... • DEPARTMENT: Storm Sewer (158) ACTIVITY: Watershed Districts Activity Description This activity includes the development of short and long range work plans, define necessary equipment and manpower needs, list needed permits, pollution issues, government conformance, develop financing plans for capital improvements Percent of Total Dept. Budget 33 %, 1995 Objectives 1) Initiate preventive maintenance program 2) Establish revenue schedule for capital improvements 3) Assure compliance with current regulations 4) Develop 1996 work plan Requested 1995 Budget Revenues Service Charges 62,550 Total $62,550 Staff Allocation FTE's Public Utilities Supervisor 0.00 Maintenance II 0.00 Expenditures Part -time 0.00 Contractual Services $49,500 FTEs, this activity 0.00 Vehicle Services $0 Depreciation $13,050 Total $62,550 Comment DEPARTMENT: Storm Sewer (158) ACTIVITY: Maintenance Activity Description This activity includes the initiation of a cleaning program beyond emergency needs, schedule and, repair failing storm sewer structures (30 to 40 per year), prioritize and schedule future maintenance including relining and replacement Percent of Total Dept. Budget 67% 1995 Objectives 1) Clean 8000 feet of storm sewer line 2) Televise all storm sewer line in project areas, plus 2000 additional feet as needed 3) Rebuild 30 storm sewer structures (manholes or catch basins) 4) Additional repair of structures and lines as necessary Requested 1995 Budget • Revenues Service Charges 125,678 Total $125,678 Staff Allocation FTE's Public Utilities Supervisor 0.00 Maintenance II 0.00 Expenditures Part -time 0.00 Admin Services $100,000 FTEs, this activity 0.00 Vehicle Services $9,728 Depreciation $15,950 Total $125,678 Comment • RECYCLING FUND Preliminary 1995 Budget POLICIES: To continue an effective program of curbside recycling, while keeping costs as affordable as possible + Identify program needs and develop funding mechanisms which are fiscally responsible and provide adequate revenue The recycling fund accounts for the operations and administration of the cities, state mandated, curbside recycling program. It is primarily comprised of fees paid to the Hennepin Recycling Group (HRG) for recycling services and, the charges to households to cover those costs. Fees are collected on a per household /per month basis. The fund is managed by the Director of Public Services and is established as an enterprise fund. Enterprise funds are self supporting activities of the city which render services on a user charge basis to the general public. ACTIVITIES: Percent of Budget STAFFING: 0.00 Curbside Recycling 100% 0.00 100% 0.00 0.00 0.00 Full -time Equivalents Actual Actual Estimated Department Manager • Budget 1992 1993 1994 Requested Recommend REVENUES: Service to Customers $103,862 $106,196 $108,000 $213,366 $213,366 Investment Earnings $4,792 $4,388 $4,100 $3,900 $3,900 Container Sales 399 567 600 600 600 Total Revenues $109,053 $111,151 $112,700 $217,866 $217,866 EXPENDITURES: Supplies 399 567 600 600 600 Other Contractual Services 98,604 98,604 103,500 208,404 208,404 Logis Charges 4,930 4,923 6,000 6,000 6,000 Total Expenditures $103,933 $104,094 $110,100 $215,004 $215,004 Operating Income $5,120 $7,057 $2,600 $2,862 $2,862 Net Income $5,120 $7,057 $2,600 $2,862 $2,862 Staffing (FTE) 0.0 0.0 0.0 0.0 0.0 COMMENTS: The rates and expenses for recycling are increased substantially for 1995 due to the reduction in reimbursements from Hennepin County. Collection costs increased by $1.00 per household per month, but the rate increase was held to $.90 per month. This was accomplished by the addition of the City of Brooklyn Park to the HRG, thereby allowing more efficient administration. a RECYCLE.XLS,11/18/94