08-27-2018 Council Work Session Packet

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3) Minnetonka Beaches police cost are frozen for 2019. Spring Park's will increase by $10,500 (2.5%) which is equivalent to the negotiated wage increase in the officer's labor contract. The Mound service contract includes an inflator based on the CPI -U from July 1, 2017 to June 30 of 2018. At this time the increase will be around 2.8% which is equal to $51,480. 4) As part of the budget process staff has been reviewing the Administrative Charges to the Enterprise Funds. The Administrative Charge is designed to cover the overhead and wage expenses incurred by the administrative and finance staff. It was determined that between the Water, Sewer, and Storm Water Funds, a total of 30% of the overhead costs should be recovered. This resulted in an increase of $165,000 to the Administrative fee revenue line. The overall increase for the revenues totals $387,720. It is likely that the revenues for building related revenues will again be over budget. In the past, these additional revenues were not budgeted because they will eventually decrease to normal levels. At the July work session, it was suggested that building permit fees could be budgeted with a small increase of $25,000 to a total of $400,000. Expenditures: Increases 1. The COLA and step increases due to employees in 2019 total $250,000. The wage study has been completed. At this point Local 12 has not requested to reopen the wage portion of the contract. Staff is looking for direction on the COLA increase for non-union employees. An increase of 2.5% is included in the budget. Each 1% increase in non-union pay equals an $8,250 increase in expenditures. Over all employee groups, a 1% wage increase equals a $51,000 increase in expenditures. $45,281 of this increase would be in the General Fund. The only council input needed is for non-union employees. The Union increases all already set at 2.5%. 2. The Building and Zoning Department are looking to add a Code Enforcement Official that is shared with the Police Department. Staff feels that this position is needed to enforce our existing codes to the Council's satisfaction. 3. The Building and Zoning Department has an additional $40,000 budgeted for re- writing the Zoning and Subdivision Code. Decreases 1. 2018 was an election year. The 2019 budget will see a decrease in election expenditures $18,400. This is a one year decrease and 2020 will wee an increase. 2019 Budget — Page 2