Loading...
1. 2008/2009 Budget UpdateCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7700 Fax - (406) 758-7758 REPORT TO: Mayor and City Council FROM: .lames H. Patrick, City Manager SUBJECT: Cash Reserves Goal DATE: September 4, 2008 BACKGROUND: The Finance Director, Department Heads and I have continued to trim the 2008--2009 budget. There have been additional reductions in the Maintenance and Operations. However, since 80% of the budget is for personal services, there must be a reduction in force. I have restricted the hiring of any more seasonal positions except for next year's pool staff (we will reduce pool hours), limited recreation personnel, and one Kidsport's assistant. I have eliminated the Parks and Recreation receptionist and a recreation coordinator. In Planning I eliminated the Code Enforcement Officer and cut back the hours on the junior planner and GIS technician. I have eliminated two positions in fire Prevention and cut the additional hours for crime analyst in the police department. I have also reduced the number of Court Clerks by one position. These cuts will significantly impact on our service delivery however; the overall effects should not be felt by the community for several years. I am prepared to go deeper. However, at Monday evening's work session I want to propose several suggestions. These include: the use minimal cash reserves, to charge a response fee to car accidents and out of city calls, eliminate several more positions, and/or a combination of these proposals. The Judge will discuss the Court's uncollectibles and how we are trying to reduce this outstanding balance. Mr. Hafferman suggested increasing our efforts for philanthropic contributions to Parks and Recreation. Attached, please find several spreadsheet outlining the changes to the Preliminary Budget. Attachment "A" is the large spreadsheet which recaps each of the General Fund budgets and shows the changes at the bottom between the Preliminary budget numbers and the Final proposed numbers. The total changes total a reduction of $570,669 as highlighted in orange. The Total budget recommendation is now $10,780,329. Attachment "B" -The Revision page shows the General Fund adjustments presented August 18th in the left hand column, the Plan B changes and the total of all adjustments, both columns, for each department. These adjustments are the same as the adjustments at the bottom of the large spreadsheet. Attachment "C" -The last page recaps the revenue estimates, the adjustments, the new Final Budget number under Plan B and the remaining cash on hand estimated for 6/30/09. At the bottom of this page are the additional necessary cuts to have the budget expenditures equal the incoming revenue. Additional cuts of approximately $167,000 would be needed. It would necessitate cutting 4 to 5 positions to save that amount of money (with notice, we would have less than 9 months savings at this point which is why it would take more: layoffs.) STAFF RECOMMENDATION: proceed with Plan B budget. Staff will monitor Revenue and Expenditures midyear and make necessary adjustments at a later date if needed to meet the cash reserves proposed. Respectfully submitted, �;2 oee J� Amy Robertson Finance Director James H. atrick City Manager GENERAL FUND APPROPRIATION SUMMARY - FY2009 Recreation Youth General city Human Mayor Media Municipal Public Central Planning Parks camps Government Manager Resources Council Specialist City Clerk Finance Attorney Court Works Garage City Hall Police Fire Department & Complex lee Rink Pool TOTAL 110 Salaries $ 111,969 $ 103,339 $ 63,139 $ 21,176 $ 74,655 $ 191,986 $ 297,225 $ 174,545 $ 36,255 $ 166,772 $ 41,216 $ 2,584,342 $ 1,616,190 $ 277,460 $ 313,655 $ 155,824 $ 21,930 $ 6,251,678 III Seasonal Salaries $ 52,580 $ 123,568 $ 157,107 $ 333,255 114 Comptime Buyback & severance 12,500 22,500 $ 35,000 121 Overtime & Spec. Assign PD,kelly-fire 2,000 1,000 1,500 500 213,500 51,265 4,200 2,000 2,500 $ 278,465 153 Health Insurance 3,500 9,090 24,144 6,060 9,002 29,262 40,882 31,821 5,542 32,554 8,245 480,703 254,682 48,808 72,465 35,616 9,903 $ 1,102,279 155 Retirement 7,313 6,585 2,015 1,158 4,883 12,050 18,925 11,112 2,354 10,240 2,515 313,174 221,482 17,662 21,264 11,528 1,783 $ 666,043 TOTAL PERSONAL SERVICES - 122,782 119,014 89,298 28,394 90,540 233,298 357,032 218,478 44,151 211,066 52,476 3,604,219 2,166,119 343,930 464,164 328,536 193,223 S 8,666,720 210 Supplies/office/computers 4,000 1,500 1,200 300 850 500 9,500 6,000 4,500 6,050 250 87,000 16,150 4,500 5,150 1,650 950 $ 150,050 218 Equipment non -capital, furniture 2,000 600 3,000 6,000 1,750 1,500 10,000 3,500 10,500 $ 38,850 230 Supplies &FUEL, chemicals, concession sup 150,000 1,250 22,900 26,471 33,500 $ 234,121 241 Tools/janitorial/uniforms,,MV parts 400 100,800 12,700 14,950 6,000 9,000 $ 143,850 SUBTOTAL SUPPLIES 4,000 3,500 1,800 300 3,000 850 500 9,500 12,000 4,900 258,600 14,450 97,000 35,850 15,000 34,050 28,121 43,450 $ 566,871 312 Postage/newsletter 16,500 $ 16,500 320 Printing & advertising 5,000 250 100 2,000 100 6,000 1,800 500 1,000 8,530 350 $ 25,630 330 Books, Dues,Memberships, filing fees 6,500 2,250 900 6,600 375 2,100 12,900 1,550 1,800 300 2,000 7,375 5,300 1,085 650 $ 51,685 338 Recruitment 6,000 $ 6,000 340 Electricity, water, natural gas 14,100 112,500 31,300 27,400 20,000 40,500 $ 245,800 345 Telephone, web, cell, radio, security cameras 1,500 150 100 400 400 150 1,200 1,400 1,000 75 15,000 11,640 800 3,500 2,000 2,400 $ 41,715 350 Professional Services 18,500 7,250 2,500 6,025 8,400 5,000 3,000 1,000 38,000 27,000 14,500 6,550 2,000 14,906 60,093 $ 214,724 362 Maint. services, building, equip,rachos,landscaping 6,600 600 1,750 31,000 31,300 18,600 19,500 8,250 6,500 $ 124,100 360 Technology services (court) 57,993 $ 57,993 370 School & Travel 3,000 4,250 5,500 2,000 4,750 6,500 500 2,500 36,000 7,750 5,500 500 600 - $ 79,350 380 Training, medical services, meetings 2,600 2,500 375 19,000 600 2,550 $ 27,625 390 Other Purchased Services 7,500 2,000 150 $ 9,650 400 Building/Construction Materials 13,700 $ 13,700 SUBTOTAL PURCHASED SERVICES 53,100 9,350 18,800 14,700 2,900 6,900 12,650 23,850 79,943 5,000 57,100 170,500 125,800 85,615 14,100 84,291 100,123 49,750 $ 914,472 500 Fixed Charges, Insurance 279,500 53,500 5,500 42,000 $ 380,500 820 Transfers out 27,000 $ 27,000 0 Contingency 30,000 $ 30,000 SUBTOTAL MISCELLANEOUS 309,500 - - - - - - - - - - 53,500 27,000 5,500 - 42,000 $ 437,500 Total M & 0 366,600 12,850 20,600 15,000 5,900 7,750 13,150 33,350 91,943 9,900 315,700 238,450 249,800 126,965 29,100 160,341 128,244 93,200 1,918,843 600 Debt Service/lease mower 19,125 104,572 37,967 161,664 940 Machinery &Equipment, radio match 15,000 18,102 $ 33,102 TOTAL CAPITAL OUTLAY - - - - - - - - - - - - 15,000 18,102 - - - 33,102 DEPARTMENT TOTAL 2009 $ 366,600 $ 135,632 $ 139,614 $ 104,298 $ 34,294 $ 98,290 $ 246,448 $ 390,382 $ 310,421 $ 54,051 $ 526,766 $ 310,051 $ 3,869,019 $ 2,415,758 $ 371030 $ 662,472 $ 456,780 $ 286,423 10,780,329 FY2009 Preliminary Budget $ 329,100 $ 195,741 $ 139,767 $ 109,198 $ 38,689 $ 96,245 $ 249.848 $ 372,238 $ 353 1-7(, $ 54,551 $ 51-1,266 $ 310,051 $ 3907,519 $ 2,579,426 $ 456,051 $ 777,522 $ 575,086 $ 294,424 S 11'350'998 INCREASES (DECREASES) S 37,500 S (60,109) S (153) S (4,900) S (4,3955) S 2,045 S (3,400) S 18,144 $ (42,855) S (500) S 14,500 S - $ (38,500) S (163,668) S (83,021) S (115,050) S (118,306) S (8,001) S (570,669) 2009 BUDGET REVISIONS Orginal Budget $ 11,350,998 General Fund Budget Adjustments: 1 st round adjmts. Gen. Gov't Election -addition $ 50,000 contingency City Manager: $ (1,000) school & travel equipment Newsletter $ (21,020) move Katherine + benefits HR: $ 1,846 Salaries $ (1,000) school & travel Council: $ (1,000) school & travel office supplies meetings City Clerk &Media Spec.: supplies $ (500) school & travel Finance: $ (1,000) school & travel contract services Attorney: $ 12,644 Salaries & benefits $ 6,000 computer software carryover $ (500) school & travel Court: Printing Contract service $ (1,500) School & travel $ 4,210 Technology fees Drug Court Clerk (9 mo) Public Works & Central Garage: $ (1,000) School & travel $ 15,000 gas & oil Police: $ (1,000) School & travel Non capital Police car Crime analyst Radio match - addition Planning $ (1,000) Contract service Code Enforcement officer (9 mo) Staff reduction FIRE: $ (85,029) Salaries, benefits union adj. Prevention Prevention Radio match - addition vehicle allowances $ (501,969) Parks: add back parks maint. Seasonal Salaries + benefits Trail Maintenance Flowers school & travel 1/2 clerk (9 mo)+ benefits Complex: Complex seasonals Equipment Recreation & Sports: Salaries 1/2 clerk (9 mo)+ benefits Rec coordinator (9mo)+benefits Seasonals Other supplies school & travel Youth Camps: Salaries shifted from sports Seasonals contract services Ice Rink: Seasonal Salaries supplies advertising contract services Pool: Salaries school & travel Training $ (527,818) <� 1 n QIQ i Qn PLAN B Total all adjtnts. $ 7,500 $ (20,000) $ 37,500 $ (1,000) $ (1,000) $ (1,500) $ (34,589) $ (60,109) $ (1,000) $ (154) $ (1,000) $ (400) $ (2,500) $ (4,900) $ (850) $ (1,000) $ (2,350) $ (2,000) $ (400) $ (3,400) $ 18,144 $ (2,000) $ (2,500) $ (1,000) $ (9,000) $ (31,065) $ (42,855) $ 14,000 $ (1,500) $ (1,000) $ (35,000) $ (15,000) $ 15,000 $ (38,500) $ (2,500) $ (37,409) $ (42,112) $ (83,021) Plan B Court Clerk Parks Clerk Rec. Coordinator Fire marshal Fire marshal Planning staff adjmts. Code Enforcement officer $ (47,799) $ (44,482) $ 18,102 $ (4,460) $ (163,668) $ 501,969 $ (73,007) $ (3,000) $ (4,000) $ (1,000) $ (15,517) $ (96,524) Parks & complex $ (12,526) total chg $ (6,000) $ (18,526) $ (115,050) $ (7,862) $ (15,517) $ (44,885) $ (6,076) $ (2,000) $ (800) $ (77,140) $ 7,862 $ (16,234) $ (17,000) $ (25,372) $ (14,204) $ (700) $ (250) Rec. total chg. $ (640) $ (15,794) $ (118,306) $ (7,500) $ (300) $ (200) $ (8,000) $ (42,851) $ (570,669) Total changes from Original budget $ 10,780,329 Final Budget GETIE-211TAiL FUND FUND: 1000 Anticipated Revenue PROPERTY TAXES: LICENSES; PLANNING & ZONING fees: planning revenue lowered $125,000 [NTERGOVERNMENTAL REVENUE: FINES AND FORFEITURES: CHARGE S FOR SERVICES: MISC. REVENUE: INVESTMENT REVENUE: Expenditure budgets Cash available 711/08 Total Revenue ORIGINAL BUDGET BUDGET FY08/09 $ 473�546 $ 55070,000 $ 298,225 21264488 59700 $ 11554x344 $ 703,365 $ 125,000 $ 10,6121422 $ 11,350,998 Total, budget adjustments (5703669) PLAN B FINAL BUDGET $ 10,1780,329 Estimated cash reserve available 6/30/09 under plan B Plan B budget uses approximately $167,907 of cash reserves PLAN C Revenue less Plan B expenditures SHORTFALL (I 67.907) Additional cuts needed to have Revenue = Expenditure: 16713,907 Plan C would require the additional lay offs, reduction in police training and elirnintaion of the parks leased mower needed -for the Athletic complex. $ 305,639 k-,ity of Kali*spell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax (406)758-7758 DATE: September 4, 2008 REPORT To: Mayor Kennedy and City Council Members FROM: Army Robertson, Finance Director James H. Patrick, City Manager SUBJECT: 2009 Budget —Other funds Council currently has tabled Resolution 5295, appropriations for "Other Funds". Changes have been made to the Impact Fee Fund, a reduction of $33,102 for the radio match because they were not on the CIP. This amount has been added to the General Fund. The Fire Truck, which is on the CIP, was presented to the Impact Fee Committee on October 17, 2007 and approved unanimously. The impact fee presentation and the tape of the meeting are available. Additionally we have received two new grants which will be added to the Fire Grants Fund 2957. The first grant is for HazMat Technician Training funded though the MT Disaster & Emergency Services office in the amount of $34,000. The training will take place in October. The second grant is for the Consolidated 911 CAD system in the amount of $915,876. The grant will flow through the City' s books with the match amount of $183,175 paid by the County 911 board. This was budgeted last year and turned down — it has now been awarded. The City is the sponsor. Because of the above listed changes the tabled resolution is no longer correct and a new resolution will be presented at the September 15 meeting. Kalispell Cloty Past Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7756 Fax - (406) 758-7754 REPORT TO: Mayor Kennedy and City Council Members FROM: Judge Heidi Ulbricht SUBJECT: Court Collection of Past Due Fines MEETING DATE: September S, 2008 BACKGROUND: Based on Court records there is approximately $1.28 million today in court collections. This is made up of $100,000 of recent fines (less than 6 months old) and the remainder goes back 10 years. In the spring of 2005, the Court began exploring the use of an outside collection agency. I met with Frank Garner, Chief of Police and the City Manager to discuss the pros and cons. In 2005 the court had approximately 1,100 active warrants for failure to pay fines with a value of roughly $900,000. The consensus was to use an outside collection agency. I decided to use Municipal Service Bureau (MSB), a company that specializes in government collections. The Court signed a contract with MSB that permitted an assessment of a collection fee to the defendant. This allows the Court in the event of a recovery to receive 100% of the amount owed with the defendant having to pay a penalty for being delinquent. The Court believes this holds a defendant accountable. The collection agency has 10 years to collect on the judgment and has resources available to locate a defendant that has left this community. Chief Garner estimated monthly it took 12 hours of a dispatcher's time to validate the warrants. In the event a warrant was served, the KPD would bring a defendant before the Court and the defendant could serve out the fines at $50 a day if space was available at the Flathead County Detention Center. I have contacted MSB to get the total amount the Court has turned over to collections and the total amount collected as of August 31, 2008. At the time I am writing this memo I do not have this data but hope to have a handout by the September S, 2008 meeting. RECOMMENDATION: Continue to use an outside collection agency for delinquent fines. 1 1 1 Municipal Judge KALISZ- ELL FIRta- DtPARTMtNT PO Box 1997 Daniel Diehl — Assistant Chief/Operations 312 First Avenue East DC Haas — Assistant Chief/Prevention Kalispell, Montana 59901 Phone: (406) 758-7764 FAX: (406) 758-7952 August 25, 2008 TG: Mayor Kennedy and City Council Members FROM: Dan Diehl, Acting Fire Chief Jaynes H. Patrick, City Manager RE: EMS Billing MEETING DATE: September 8, 2008 In our budget presentation earlier this year, the Kalispell Fire Department informed city council we thought there was additional revenue in the ambulance billing and we were instructed to research this further. The results of our research with a regional ambulance management consultant provided several. possible revenue improvements to our system. 1. Continue to utilize our current electronic billing system and personnel; she is doing a great job. 2. Utilize a contract EMS billing service to help with patient accounts and follow-up for collection. a. Filing appeals for all qualifying denials for payment. b. Delinquent account collections. c. Documentation training for Paramedics. d. Billing Motor Vehicle response and Out -of -City response fees. 3. Recommend a Fire Engine Response Fee on all. motor vehicle accidents. a. KFD had approximately 400 motor vehicle accidents last year, at $200 per response equals $80,000. 4. Recommend charging for medical supplies when insurance sources permit. 5. Recommend an Ambulance Response Fee for out of city ambulance responses. a. KFD had approximately 1000 ambulance responses out of the city last year, at $200 per response equals $200,000. I believe utilizing a contract billing service can increase our collection rate an additional 6-9% on all billing for ambulance. Additional revenue is available by implementing a Fire Engine Response Fee, Resolution 4657 signed in September 2001 allows the fire department to collect for special responses now, however I believe modification to the resolution is needed to specify motor vehicle response. The Ambulance Response Fee for out of city ambulance responses and medical supply costs would need to be added to Resolution 5086. Dan Diehl Acting Fire Chief m Patrick City Manager "Assisting our community in reducing, preventing, and mitigating emergencies. "