Part 3 of 4
7:15pm Admin & Finance continued
* 2005 Preliminary Budget Review
Asst. super. Siggelkow presents the proposed budget: -Most of the operational budget comes from property taxes and an ever diminishing amount comes for state LGA (local government aid). -Cost of maintaining current service levels is a 4.7% increase over 2004 budget. -Maximum property tax levy increase will only generate 2.6%. -Need a 2.1% reduction in operating expense or $1.02 million to balance the budget as part of the Interim Superintendent's recommended budget. -One time sources cannot be used as a direct funding source to balance ongoing expenses [thankfully, or we'd see accounting tricks like they do in the Pawlenty administration]. -2005 recommended budget is $49,901,888 compared to 2004 of $48,631,091. -2005 superintendent's budget does not include any impacts that WILL result from Minneapolis pulic school closures. -Estimates on current positions that will be held vacant next year provide $353,000 in savings. Remaining budget gap is $667,000. -A total of $345,000 in service reductions, service eliminations and fee increases are proposed which reduce the budget gap to $322,000. These proposals are: -1. Environmental Education Program service reductions and fee increases for $135,000. -2. Eliminate park police horse patrol: $36,000. -3. Reduce Summer Playgrounds by 50%: $85,000. -4. Increase adult sports fees by 15%: $21,000. -5. Charge field use fee of $500 to traveling teams: $25,000 [currently FREE??] -6. Eliminate contributions to Midtown Greenway $25,000 and the Coyle Center $18,000. -Last strategy to balance remaining gap of $322,000 is to use one-time money to reduce ongoing operating costs through investments and debt service pay downs. They are: --Create an Investment Fund to provide funding for projects that reduce operating costs or increase operating revenues. Initial projects for 2005: --1. Energy management systems update at rec centers: cost $75,000, annual savings $15,000, 5 year pay back. --2. Install well at White Elephant Neiman Complex: cost $85,000, annual savings $45,000, 2 year pay back [then why did they spend $2 million to run a water line out there from the city? Why not just build the well in the first place and save $1,915,000?] --3. Build a mini golf center at Lupient Water Park: cost $100,000, annual income $80,000 [really?], less than 2 year pay back. --4. Invest in aquatics operations to improve operations, increase income and reduce operating costs: invest up to $75,000; annual operating savings and income of $75,000; 1 year pay back [really? just like magic?] --5. Reduce operating costs by $256,000, the payment amount on mortgage on the Taj Mahal HQ building, by paying mortgage off with one time sources. [and you got a mortgage in the first place because why?] Payoff of mortgage will save $1,500,000 over scheduled interest payments over next 13 years.
-Other uses of one time funding: -1. $500,000 emergency stump removal in 2005. -2. $500,000 to establish emergency tree removal fund in addition to 5% operating reserve. -3. "The reserve for the Tax Operating Fund after these changes is $2.5 or a 5% reserve level" [you figure it out, that's a literal quote]
Remaining Steps in the Budget Process
* PUBLIC INPUT on the interim superintendent's recommended 2005 budget will be held November 10 at 5:30pm. * 2005 budget preliminary approval on November 17 by Admin & Finance Committee. * Preliminary 2005 budget approval at full board on December 1. * Truth in Taxation Public Hearing December 6. * Full board review, budget approval and taxy levy approval on December 13.
* Commissioner Mason has several remarks: (1) Should move this before the full board instead of just admin & fin. on November 17. (2) Find other ways to pay off Ft. Snelling [the White Elephant Neiman Complex] rather than using the system-wide golf course revenues as they do now, and then redirect those golf course enterprise revenues to other programs. Need an innovative solution as we are losing $75,000 a year at Ft. Snelling. [I know, why don't you sell it to a private developer? Know anyone who will pay $16 million for it? Cut your losses and get out now.] (3) Tin Fish is a good example of innovative new revenue source. (4) Total fund balances are $17 million, but need details, especially on how much and where much of that balance is already allocated. (5) Preplanning Fund could be used for VIP projects.
* Commissioner Young has several remarks: (1) Is opposed to cutting Environmental Education program. (2) Is against eliminating mobile recreation center in the summer. (3) Better use of funds, do we need a new ??? [can't read my own writing!] and can the Foundation help somewhere? (4) Mini golf location doesn't seem right. Lots of golf in north and northeast, and nothing in Phillips or surrounds. (5) No discussion of Wind Energy Project? (6) Placement of buildings, possible rec center closures as some areas have many and others none.
* Chair Hauser cuts Young off before she finishes citing time constraints.
* Comr. Erwin says he would like more information, not just the numbers in the proposed budget, but those last year and last 5 years and the change. He believes they should make Ft. Snelling [White Elephant] a zero loss operation, by making it stand on its own [its own revenue pays its own operating expenses, I assume]. He also wants more details on the fund balances that Mason mentioned, and says that solar lighting might be another one time investment that would pay off in operational cost savings.
* Comr. Dziedzic has some questions. (1) Page 4, maximum property tax revenue increase is 2.6%. Does that include increase in assessed values? (2) City covers independent boards with 10% budget reserve, why do we have one? (3) Do we need reserve for Standard & Poore's rating?
* Siggelkow answers: (1) Yes. (2) No, city does not cover Park Board. (3) No, staff recommends a reserve of 5% but commissioners can make it whatever they feel is prudent.
* Kummer suggests increasing and using Minnehaha Park revenue via food sales and parking fees to LRT users.
* Olson is concerned about the 50% cut in Summer Playgrounds program. Lots of kids have no other place to go. Cutting it is "out of the question."
* Berrgy Graves concurs with Olson and with Young on the Environmental Education program. Says they need to brainstorm to find ways not to cut such crucial programs.
* Hauser is also concerned about Summer Playgrounds. She asks what are better places to cut?
** Administration & Finance Committee Adjourns
7:52pm
** Regular Meeting is reconvened.
8.1 is removed from the agenda.
8.2 to approve policies and procedures for Superintendent Search [this was a circus]
* Young: when are we going to discuss criteria, etc. We are short on time [before hire date].
* Olson: we will discuss it tonight to avoid getting behind.
* Hauser asks for staff presentation.
* Asst. super. Siggelkow sits in for Mary Page of Human Resources. Staff needs answers to a variety of questions: 1. How long will each finalist inteview be, and what are the questions that will be asked? 2. Public Input Process - suggests that public submit questions in writing to Mary Page who will filter them for the December 1 presenting to finalists. 3. Need to decide whether commissioners will or will not contact finalists directly. 4. Appointment date is December 8, some blanks need to be filled in.
* Erwin states the decisions need to be made tonight. Suggests deciding on how many finalists board can vote for before getting into the process, maybe 4 or 5.
* Olson says there are currently 8 semi-finalists and there will be 3 to 5 finalists.
* Young says in the public input process, she wants to see all of the public's questions sent to Mary Page, even if only some of them can or will be asked. She says commissioners should not contact finalists.
* Olson conducts a straw poll on contacting finalists. 5 in favor of NOT contacting, so there will be no contact.
* Berry Graves wants a records and background check done on the 3 to 5 finalists.
* Olson thinks it is an excellent idea and conducts another straw poll. 5 in favor, so that is the policy.
* Mason says she heard there were 14 semi-finalists, but Olson said 8. Clarify who are the 8.
Answer: the 8 semi-finalists are in the superintendent search report handed out tonight.
* Hauser wants to group questions [from the public] together into similar questions and only ask one/once. It will take 3 days for Mary Page to do so. Friday before the interviews [Dec. 1?] will be deadline for public input.
* Dziedzic asks if they can get a list of questions they are NOT allowed to ask?
* Olson says no, but Mary Page will handle it. Someone else mentions they had been given data practices guidelines before and can go by those.
* Erwin suggests setting half an hour per finalist for public questions to keep it from going too long. He asks if they can get a copy of the video interviews that Oldani did.
* Olson says whether a video exists or not depends on circumstances, not all on video.
End of part 3 of 4.
-- Chris Johnson - Fulton
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