Alice Pickering
Wyoming Area Reporter

Wyoming City Council approved its preliminary tax levy for 2007 with the amount not to exceed $1,809.793. There was disagreement among members however, for the vote was 3-2 on Sept. 5.

Of the total, $1,475,800 would be in the general operating fund which would be an increase of about 15 percent over the 2006 operating fund.

Action was necessary to meet the preliminary levy deadline of Sept. 15. A preliminary levy cannot be increased, but setting the ìnot to exceedî limit means cuts can be made to it, as a result of cuts to the proposed budget.

The certified levy must be filed by Dec. 27. That will not happen until after the Truth in Taxation hearing set 6 p.m., Monday Dec. 4.

The vote on the preliminary was split 3-2, with Council members Ted Phillips, Blake Tiedeman and Joe Zerwas supporting the plan. Mayor Sheldon Anderson and Council member Tom LaBarre were opposed.

Budget plan

In preparation of the 2007 preliminary budget, Administrator Craig Mattson used worksheets from department supervisors, made comparisons from previous years, and developed the preliminary budget. The budget is the planned spending for the city and includes projects the city hopes to complete. It has three parts: Levy expenditure, general operating budget, and capital improvement program.

Levy expenditures are the amounts the city must levy to cover specific payments. They include bridges and roads, fire hall, and tax abatement for, a total of $292,001. The EDA levy of $42,000 will bring this to $334,001.

The parts of the city budget that are adjustable are the general fund ($1,762,990) and the CIP ($369,454). These total $2,132,444 in the 2007 budget request.

Altogether, the first look at the 2007 budget request shows a total of $2,424,445.

General fund

The general fund covers the costs of general government, municipal building, professional services, police and fire, streets, parks, library and social service. The budget request for city operations is $1,762,990, up from $1,349,809.76 in 2006.

Mattson identified professional services as one area in the general government where there have been substantial increases. These include audit and accounting, legal and engineering.

Together, actual expenditures for professional services were $103,024 and $167,169, for the years 2004 and 2005, respectively, yet the 2006 budget line items totaled $97,000.

Mattson has a proposed 2007 request of $115,000, which he believes more accurately reflects actual costs. His position is that putting a low number on a budget line item does no good if the estimate is unrealistic.

Other items in general government where there are increases are costs associated with merger expenses, $45,000 for 2007. In 2006 this is $30,000.

No funds were budgeted in 2004, but just over $23,000 was spent in 2005. The $25,000 spent for the administrator search and $7000 for the wage study are one-time expenses and are not budgeted for 2007.

Line items for office supplies, training/instruction, operating supplies, and land-use planning together add a total of $15,950. Dues and subscriptions will be increased $5000 to $7500 to accurately reflect expenditures of $4615 and $6567 in the previous two years.

The municipal office staff budget will increases about $17,000 and PERA, FICA, Medicare costs add about $13,700. Municipal building operation covers office supplies operating supplies, cleaning services, utilities, repairs and maintenance. Office staff budget is primarily salaries and the increase primarily reflects having a full-time administrator.

The building inspector item shows a requested increase of about $3000 for 2007 to bring it up to $49,354. Most of this relates to salary, PERA and FICA.

Key departments

The largest expense to the city is the police department, 41 percent of the budget in 2006, and about 37 percent in 2007ís request. Salaries show an increase of $52,000 to $396,698 with overtime adding $4500. This means increases in about $39,200 for PERA, FICA, insurance, Medicare and workers comp.

The line item for departmental professional services is an increase of $14,000 to $25,000. Actual amounts spend in 2004 ($17,360) and 2005 ($27,963) but the budgeted amount for 2006 was $9000.

The department has purchased some squad cars in the past, but has shifted more recently to vehicle leasing. There were no vehicle payments for 2004, in 2005 ($1804), 2006 ($23,000), and in the 2007 request (zero). Vehicle leases for the same years show zero in 2004, were zero, $20,718 in 2005, were zero again in 2006, but in 2007 are $47,560.

Vehicle maintenance costs have a budget request for $8000 in 2007.

Rent for the police headquarters of $14,400 is included as a line item for the first time in 2007. Line items for damaged uniform, $5,400; and trash/utilities, $300; are also first time items in 2007.

Total increases proposed for the department amount to $114,146 which does not include capital improvements request of $23,915. Actual expenditures for the police in 2004 were $350,662.15; in 2005 they totaled $508,664.24. The 2006 budget is $552,828.4 and the budget request for 2007 is $681,889.

In 2005, bike patrol costs were $3000, but the program was unfunded in 2006. The request for 2007 is $2234 while the DARE program is $1000, the same as 2004 and 2006.

The cost of the fire department made up 19 percent of the budget for 2006 ($251,401) and in the 2007 budget request constitutes 15 percent of the total ($271,774). Larger requests for increases in the fire department line items are $1000 up to $1,500 for auditing, an increase of $5500 up to $9500 for communications, an increase of $1500 up to $4000 for fuels, and an increase of $3000 for vehicle maintenance.

Training and Instruction will increase $1000, and an increase of $1500 is planned for other equipment.

The budget request for 2007 the street department is $159,637, 12 percent of the budget. In 2006, the amount is $148,187.

There are small increases in salaries of about $2700 and related increases for PERA and FICA. Telephone costs increase of $1,00 to $2,500 and vehicle maintenance is increased $2000 to $10,000. Garbage disposal show an increase of $400. Street overlay supplies were not budgeted in 2006, but $3000 is requested for 2007.

Parks made up seven percent of the city budget in 2006 ($92,644). Parks budget wage budget request increase is just under $500. no increase for summer budget, hockey coordinator position is an increase of less than $100. Requests for increases of just under $7500 for summer recreation programs.

Requests for the library ($30,000) and social service contracts ($4000) are the same as 2006.

CIP areas

Capital programs are funds put aside for equipment purchases or major construction. In 2006 this part of the budget was $213,239. In 2007 the Capital portion of the budget request is $369,454.

The department capital request for 2007 is $67,000. Of this $22,000 is for a new engine, the other $45,000 is for a ladder truck. General government request for 2007 is for $25,000 and increase of $20,000 from 2006.

The police 2007 request is for $23,915 for cameras, medical bags, video cameras, preliminary breath testing kits and additional firearms.

The street department capital request is for $132,539. The request would add $10,000 to the crack-sealing and overlay line items and $20,000 for seal coating. It also included $20,000 each to save for building addition, street replacement and plow truck replacement. A truck payment for $22,369 and $1670 for paving 260th Street is included in the request. Other area are $4000 for street sign repair and $4500 for truck replacement. The request for 2007 capital spending is 36 percent of the total.

The parks department is the last part of the capital improvement request. The 2007 budget request is $121,000. In includes tennis court repair ($4000), computer ($1000), Goodview Park improvements ($70,000), Swenson Parking lot ($3000), trailer ($10,000), Sunrise Tennis Courts ($25,000), equipment fund ($5000), and Stage Coach Days Celebration ($3000). The request is 33 percent of the 2007 budget request.

Levy areas

Since the levy expenditures total is a fixed $334,001, reductions must come from the general operating budget and CIP.

Non-levy revenue comes to the city from fees, fines, licenses, permits, various forms of state aid, payments in lieu of taxes, and interest. The expected non-levy revenue for 2007 is $447,626, primarily because of an anticipated $50,000 increase in the payment from Fairview.

The difference between the 2007 budget request total ($2,424,445) and the expected total receipts for 2007 ($2,215,419) is $209,026. That is the amount which must be trimmed from the budget to get the preliminary 2007 levy request to a point not to exceed $1,809.793.

Of the receipts, $333,993 is earmarked for fixed payments; $1,475,800 of the 2007 would be for the general fund. The comparable 2006 levy is $1,280,321.

Mattson answered a question from Chip Yeager that the city and township will continue to operate as they currently are until the merger is resolved. The intent is not to increase the budget any more than necessary except for inflation and there will probably be reductions.

Resident Linda Yeager asked a question about the cost to the city of the appeal of the Writ of Mandamus decision. Rinke-Noonan, the law firm representing the city and township is assuming the $2000 cost of the appeal itself, as a matter of principal related to the decision.

Mayor Anderson said he was ìvery disappointed how it (budget) was prepared.î He expressed concern for the large increases.

Anderson asked staff to check on the amount in the park dedication fund. This can be used for park improvements, but not operating expenses.

Council member LaBarre said the proposed levy is ìway too much.î

Council member Phillips could see some incremental increase in the levy but he was not in favor of a 10 percent increase. Department heads and the administrator will have to make some cuts or the council will do it, he said.

Council member Zerwas did not agree with other members but said the city might have to levy a little more. Zerwas had not had time to check budget details but recognized the complaints about city streets and the need for more money in some departments.

Council member Tiedeman said he recognized some cuts would have to be made in the proposed budget but he could support the preliminary budget and levy. He said later this was ìan excellent challenge to work with department heads and the administrator.: What is finally determined may be the quality of life that residents want, he said.

Mattson said some parts of the budget are requirements; other parts that contribute to an improved quality of life, like parks, are discretionary. He added that it is ìimportant to establish one (budget) thatís sound; managing it through the year,î that is most effective and can contribute to a cityís reserves.

He said that ìefficiency means doing things right but effectiveness means doing the right things right.î

Typically, work sessions with council members and individual department heads are scheduled to make cuts in the proposed budget so it is more in line with an acceptable levy. To date no budget meetings have been set.

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Forest Lake Times
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Forest Lake, MN 55025
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