WS 11-15-2010 - Laserfiche WebLink

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Memo To: Mayor and City Council From: Dean R. Lotter, City Manager Subject: 2011 Budget Proposal Date: August 11, 2010 Executive Summary In 2008 and 2009, the legislature imposed levy limits and started reducing intergovernmental aid to cities. While New Brighton was scheduled to receive $152,000 in aid; it was cut by the State of Minnesota before the City ever received it. Market Value Homestead Credit was reduced as well and New Brighton has lost all MVHC aid. In late 2009, the Council adopted a budget with a 0% tax levy. Shortly into the new year, Council directed staff to do additional work on forecasting the General Operating Fund for 2011. The forecasting exercise that staff engaged in resulted in a budget amendment which was adopted in April 2010. This amendment reduced the City's use of reserves as a revenue source and adjusted several expenditure line-items. Staff has been working on the City Budget for 2011 with the goal of proposing a 0% tax levy that also does not rely on any use of reserves. Zero Tax Levy - Operating Budget Numerous efforts have been made to prepare for a zero percent and no dollar increase in the tax levy. Very conservative union contracts were negotiated. While the Teamsters contract expires in December of 2010, I anticipate negotiations will be relatively easy due to two of three union contracts are already settled. Staffing positions that were not filled in 2010 remain unfilled in 2011 and the public safety budget will have money for 27 officers not 28. Staff also made adjustments to IT internal charges due to better management of existing dollars and better long-range planning of IT assets. The general budget attached to this packet is a draft and still shows a $32,800 deficit. I would recommend freezing non-union steps, but allowing a 2% increase in pay commensurate with the union agreements. This adjusted would almost close the deficit gap to within a few thousand dollars and would be easily manageable.