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90-1428 ► �RIGINA!„ Council File # Q— d Green Sheet # RESOLUTION F SAINT PAUL, INNESO Presented By . Referred T v 1 2 �3 4 5 6 7 8 WHEREAS, the City Council's proposed "1991" Budget Goals and Policies" establish 9 financial policies and guidelines necessary for City service delivery priorities within 10 the constraints of available revenues and reasonable taxing policies; and 11 12 13 WHEREAS, the Mayor has established the foundation for the "1991 Budget Goals and 14 Policies" with the publication of the City Council adopted "City of Saint Paul 1990 15 Budget Goals and Policies" , which has now been revised with City Council recommendations 16 based upon extensive public hearings held by the Finance, Management and Personnel 17 Comrnittee, the Housing and Economic Development Committee, the Human Services, Regulated 18 Industries and Rules and Policy Committee, the Intergovernmental Relations Committee, 19 the Neighborhood Services Committee, the Public Works, Utilities, and Transportation 20 Committee; 21 22 23 NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Saint Paul hereby adopts 24 the attached document entitled, "1991 City of Saint Paul Budget Goals and Policies" ; and 25 26 27 BE IT FURTHER RESOLVED, that the Council of the City of Saint Paul is requesting that 28 the Mayor use this document as a guide in the establishment of his recommended 1991 29 Operating and Debt Service Budget; and 30 31 32 BE IT FURTHER RESOLVED, that the Mayor is requested to hereafter provide annual 33 recommendations for the refinement of this budget policy guide to be submitted for City 34 Council review prior to the City Council budget policy hearings; 35 36 37 BE IT FURTHER RESOLVED, that the City Council will use this document as a guide in the 38 establishment of the 1991 Operating and Debt Service Budget; and 39 40 1 . ��d,,��d 2 ORIGINAL 3 4 S 6 7 BE IT FINALLY RESOLVED, that the City Council extends its formal appreciation for the 8 professional work performed by the Mayor's Administration, the Budget Office, the 9 Finance, Personnel and Management Committee, the Housing and Economic Development 10 Committee, the Human Services, Regulated Industries and Rules and Policy Committee, the 11 Intergovernmental Relations Committee, and the Public Works, Utilities and 12 Transportation Committee. � Yeas Navs Absent Requested by Department of: imon v oswitz v on �� v acca ee ettman v un e v i son � By= Q Adopted by Council: Date AU6 1 4 199� Form Approved by City Attorney Adoption C tified by Council Secretary By: By° Approved by Mayor for Submission to Approved b Mayor: Date AUG 1 5 1990 Council By: �� By: PliBIfSHED tiU� 2 51990_ 0(-�ICE OF T�E CITY COL��CIL 9 �—/��J' , �'/�/9� DISTRIBUTI0�1 T0: D�ATE: au�ust ��, 1990 Al Olson City Clerk (386 CH) �'�1; Councilperson Janice Rettman's Office xx Necessary action Read an� Eonvard Prepare response f��r your inforn�atiai R�ead and return Cait�c:t �e �� Attached are revised�a�es 4�43 and 4�48 of the 1991 City of Saint Paul Budget Goals & Policies. Please insert in proper place in document. Thank you. . . ��`/��' . . _ . 43 The amount of CDBG revenue to be transferred from the PED Operations Fund to the Housing Information Office Fund in 1991 shall at least be equal to the percentage of the total entitlement that was budgeted in 1990 for the Housing Information Office. If other City funds provide direct upport services for CDBG activities, they shall be reimbursed throu a contract for se vice agreement financed from the PED Operations Fun . F-34 COUNTY AID OR ROAD MAINTENANCE County Aid for oad and bridge maintenance re ived from Ramsey County shall be budgete at 60% for construction pr jects in the City's Capital Improvement Budget nd 40X for maintenance activities. Of the maintenance money re ived, 25% shall be udgeted in the General Fund for the Traffic Program an 75% in the Stre t Repair and Cleaning Fund ��225 for the Street Program. The Budget Office and Publi Works epartment shall study, with the Ramsey County Public Works De ar ent, alternative financing formulas and service delivery methods for m " taining county roads and bridges in Ramsey County. Recommendatio or change shall be proposed to the Ramsey County Board and the int aul City Council by June of 1991. F-35 HOTEL-MOTEL TAR DISTRIB ION: PROMOTE INT PAUL Background: Current Minnesota tate law allows the City t impose a lodging tax of SX. A 5% tax is/� evied against hotel room rate with fifty or more rooms. A 2X ta�t is levied against hotel room ra s with less than fifty rooms. The 1 � requires the City to dedicate 25X f the 3X tax to debt service on t e Ci�ic Center bonds 4nd 95% of the 2X ax to fund a convention ur2au to market and promote the City. Th City has discretion ry use of 75% of the 3X tax and S% of the 2 tax. From 1986 through 90 the City had an agreement with the Saint Pa 1 Convention Bureau, ivic Center Authority, and the Downtown Council y distribution of the discretionary portion of the hotel motel tax. The 'ty's General Fund eceived 50% of the 3% tax and SX of the 2% tax. The City wishes to increase the 2X lodging tax to 3%. The City will propose this increase as a part of its 1991 legislative package. The City also wishes to renegotiate a distribution of the discretionary portion of the hotel motel tax. The highest priority for use will be for those activities that attract people to Saint Paul. These activities will include tourism, recreation, shopping, eating, entertainment, new retail, businesses, and workers. Promotion should include all areas of the City. By January 1, 1991, the City will sign performance based contracts with organizations who agree to carry out these promotion activities. Objectives and evaluation criteria will be clearly specified . . ��-��z�' 48 review is ',completed (prior to the 1991 budget implementation) , profits from the e�vent should be spent on community festivals and other . community needs only as designated by City Council resolution. There will be no General Fund contribution to support this enterprise activity. , S-7 WATERGATE 'MARINA ENTERPRISE Watergate M rina is a City of Saint Paul owned facility n the Mississippi iver which provides harbor services to r, reational boat owners. The budget for perations and maintenance shal e prepared as an enterprise activ'ty. The General Fund will t subsidize operations unless there is s�iecific approval by the M or and City Council due to an emergency. , .'\\ �. S-8 YOUTH FUND �� Chapter 404.10(6) of the S int aul Legislative Code authorizes that 10% of the proceeds received fr ambling activity be granted to eligible recipients on the list estab shed pursuant to Section 409.235. In lieu of contributing directly *0 1" ible recipients, proceeds may be contributed to the City's uth und which will remain in existence and disburse the money to eli ble yo th-serving organizations. Staff costs for adminis ering the pr ram (Parks & Recreation) and for auditing the use of mo ey for public rpose (the Accounting Division) will be financed in t e general fund bu et. The Mayor and City ouncil will evaluate t 's program annually. CONTRACTED SERVICES WI H NON-PROFIT ORGANIZATIONS S-9 CIVIC NON-PRO T ORGANIZATIONS The City pro ides some services through contracts with non rofit organizatio s. The City will annually appropriate money in 'ts budget for Civic n-Profit Organizations. The amount of the approp iation will incre�se or decrease depending on the City's current fina ial condition. No organization is guaranteed funding in any given year, , irrespective of a prior history of receiving support. Contracts may be provided for financial support, planning assistance, multi-program coordination, data sharing and grant application assistance. . -. ' � �',��d �/,��' CITY OF SAINT PAUL 1991 BUDGET GOALS AND POLICIES ��0 '/�/�� 1990 CITY OF SAINT PAUL BUDGET GOALS AND POLICIES: GENERAL FUND, SPECIAL FUNDS AND DEBT SERVICE FUNDS PaQe GOALS FOR BUDGET PREPARATION Mission for the City of Saint Paul General Budget Goals 2 Service Level Goals 2-3 Financing Goals 4 BUDGET PREPARATION POLICIES GENERAL POLICIES: B-1 Annual Adoption of Comprehensive Financial- Plan 5-6 B-2 Two-Year Budget Planning 6 B-3 Budget Amendments During The Year: Charter Policy 6-7 B-4 Budget Amendments During The Year: General Policy 7 B-5 Multi-Year Policy Direction Approved By City Council 8 B-6 Capital Improvement Bu3get And Gperating Budget Coordination 8-9 B-7 Multi-Year Revenue And Expenditure Forecasts 9 B-8 Budget Preparation And Control: Authority, Responsibility And Accountability Of The Mayor, City Council, Budget Director, City Managers, , Department/Office Accountants And The Accounting Div3.sion Of The Department Of Finzuce And Management Services 10-1?_ B-9 Performance Budgeting 12 B-10 Budget Document Detail 12-13 B-11 Budget Excellence 13 BUDGET CONTROL AND MONITORING: B-12 Good Management Practices 13-14 B-13 Accounting System Budget Control Levels 14 B-14 Mid-Year Revenue Shortages 14 � - C�i=yo��'°��' ' PaQe B-15 Year Lnd Encumbered Balances 15 B-16 Budget Requirements For Contributions And Donations And Special Activities With Public Purpose 15-16 B-17 Solicitation By Employees 16-18 B-18 Mid-Year Budget Adjustments: Authorized Workforce 18-19 B-18A Special Fund Budget 19 CASH FLOW: B-19 Minimum Cash Balance Guidelines 19 B-20 Preparation Of Multi-Year Plan For Special Funds With Negative Cash Flow 19-20 B-21 General Fund Cash Advances Limited To Special Funds With Negative Cash Flow 20 B-22 Use Of Cash Flow Loans From Special Funds 20 B-23 General Fund And General Debt Service Fund Short Term Borrowing 20-21 B-24 Public Improvement Revolving Fund Cash Flow 21 B-25 Priorities And Procedures For Disbursing Capital Project Financing 21 B-26 Monthly Cash Receipt Estimates With Budget Amendments 21 , OPERATING RESERVES AND YEAR-END FUND EALANCE: 22-23 B-27 General Fund - Appropriated Reserves 23 B-28 General Fund - Designated Fund Balance Reserves 23 B-29 General Debt Service Fund - Designated Fund Balance Reserves 23-24 B-30 Appropriated Reserves - Salary Fringes 24 B-31 Fund Balance 24-25 B-32 Use Of Fund Balances/Retained Earnings 25 . . � 9�" �y� � Pas�e B-33 Civic Center Authority - Retained Earnings Priorities 25-26 DEBT SERVICE - TERM OF BOND ISSUE: B-34 Bond Repayment Schedules 26-27 B-35 Certified Levies For General Obligation Bonds 27 B-36 Scheduling Of Bond Sales 27 FINANCING POLICIES GENERAL POLICIES: F-1 Financing Estimates For The City's Annual Financial Plan 28-29 F-2 New Revenue Options 29 PROPERTY TAR FINANCING: F-3 Property Taxes For The General Fund 30 F-3A Neighborhood Health Clinics - Ramsey County Contribution 30 F-4 Property Taxes For The General Debt Service Fund 30-31 F-5 Certified Tax Levy Requirements For Delinquencies 31 CITY BONDING FOR 1988 AND 1989 (BIENNIAL CIB) : F-6 Maximum Amount Of General Obligation Bonding Financed With A Citywide Property Tax Levy 32 F-7 Special Assessment Bonding For Street Paving 32 F-8 Sewer Separation 32 F-9 Tax Increment Bonding For Economic Development 32-33 F-10 Refunding Of General Obligation Bond Issues 33 GENERAL FUND TRANSFERS FOR THE FINANCING OF SPECIAL FUNDS: F-11 General Fund Limits 33 � � �r�o- �� Pa�e F-12 Building Inspection And Design Fund Billing Limit 33-34 F-13 Street Repair And Cleaning Fund 34 SERVICE CHARGE/ASSESSMENT FINANCING FOR OPERATING AND MAINTENANCE BUDGETS: F-14 General Guidance For Assessment And Service Charge Financing For Operations 34-35 F-15 Street Maintenance 35 F-16 Town Square Park 35 F-17 Extraordinary Operating And Maintenance Costs For Installation Of Above Standard Public Improvements 35 F-18 Shade Tree Program 35-36 F-19 Skyway Operations, Security, And Maintenance 36 UTILITY RATES: F-20 Sewer Service Rates 36-37 F-21 Water Service Rates 37-38 F-22 Franchise Fees 38 FEES FOR RESPONSIVE SERVICES: F-23 Business License Fees 39 F-24 Paramedic Fees 39 F-25 Parking Meter, Lots, and Ramp Rates 39-40 F-26 Swimming Facility Use Fees 40 F-27 Recreational Enterprises: Fees For Service 40 F-28 Fees For Obtaining Government Data 40-41 F-29 Variance And Registration Fees 41 , F-30 Public Health Services Provided To Non-City Residents 41 F-31 New Enterprises - Business Plan Requirement 41-42 . . ��o-�� PaQe F-32 Deposit of Revenue Into Fund Where Spending Occurs 42 REVENUE SOURCES SHARED BY MORE THAN ONE FUND: F-33 Community Development Block Grant: Establish Appropriation For Human Service Programs 42-43 F-34 County Aid For Road Maintenance 43 F-35 Hotel-Motel Tax Distribution: Promote Saint Paul 43-44 F-36 Municipal State Aid 44 F-37 Parking Meter Revenues And Parking Fines � 44 F-38 Trunk Highway Maintenance 44 GRANT REVENUES AND MANDATED PROGRAMS: F-39 Approval of Grant Applications Required By City Council 45 F-40 Long Term Operating And N:aintenance Cost Increase 45 F-41 Maximize Grant Funding For Mandated Programs 45 F-42 Harriet Island 45 SPENDING AND SERVICE LEVEL POLICIES , SERVICE DELIVERY TO RESIDENTS: S-1 Service Program Analysis And Priorities 46 S-2 Service Level Retrenchment Focus 46-47 S-3 Basic Level Of Service For Libraries And Recreation Centers 47 S-4 Library Materials Budget 47 S-5 Requirements For Service Level Expansion 47 , S-6 Riverfest Enterprise 47-48 S-7 Watergate Marina Enterprise 48 . . (1�v qo - /y.?�/ PaQe S-8 Youth Fund 48 CONTRACTED SERVICES WITH NON-PROFIT ORGANIZATIONS: S-9 Civic Non-Profit Organizations 48-49 5-10 Citizen Participation 49-50 S-11 Energy Resource Center Financial Support 50 MANDATED SERVICES, SPENDING FOR SUPPORT SERVICES, INCREASED PRODUCTIVITY, AND REVENUE GENERATION: S-12 Automation And Information Systems Support 50-51 5-13 Other Communications Technologies 51 5-14 Spending For Cable Communications Support 52 5-15 Consultant Usage 52 5-16 Training and Development 52 S-17 Occupational Health And Wellness Plan 53 S-18 Risk Management Coordination 53 S-19 Faci�.ities And Internal Energy Management 53 5-20 City Matching Funds Approved By City Council 54 5-21 Budgeting For 1991 Salary Settlements 54 , 5-22 Public Works And Park Levies 54 S-23 Multi-Year Planning For Comparable Worth Compliance 55 5-24 Overtime Pay For Ordinance Enforcement Activities 55 5-25 State Property Tax Reform: Computer Analysis Services SS 5-26 Implementation of Truth In Taxation Law 55 5-27 1990 Census Follow-Up By PED 55 , S-28 Studies To Be Conducted In Calendar Year 1991 56 5-29 Underground Storage Tank Security 56-57 IL-OL s�uno��y asuadxg g-p OL s�uamazt�ag puy suoZ�owoza zo3 �uZ�a�png L-0 � �SNOIZ�ZI�IZ �NIQN�dS OL-69 ��?Zod �aoM oy uzn�ag - uoZ�ssuad�o� ,s�axaoM 9-0 69 susta �uZpuads ,saz�zni�oy oy s�so� uoz�ssuad�o� ,szaxaoM �o uoi�s�oZZy S-0 69 spun3 Z�ZOads oZ s�so� �zpny aj�uZs �o uoi�s�oZZy �-p 69-89 susZd �uipuadg spun3 Zsi�ads zo3 sa�s� �i�auag a�uia3 £-0 ' 89 s�so� a�inzas ZB��ua� oy uoZ�nqiz�uo� Z-0 89-L9 ��zadoad paucnp-��i� os sa��su� a�zn�as puy s�uamssassy Z-p �ss��Qns SIIOI2IdA SSO��d SZSO� 30 NOIZIIgI�ZSIQ S�I�IZOd �KZS�x�ao 99-59 uoz�saz�a� puy sxasd 0�-S 59-�9 �ua��zsdaQ azi3 6£-S �9-£9 �uam�zEdaQ a�Zjod 8£-S Z9 sanssI zoZUaS L£-S Z9-19 sanssI q�1BaH 9�-S Z9-09 spaaH uazz�Z� oy anisuodsag saoin�a5 S£-S 09-65 saZZims3 pus q�no� `uaaptiq� zo3 sa�in�aS h£-S 6S sallim83 up sn�o3 ££-S gs sapo� q�ZBag puy �uZSnoH auy �p �uama�zo�ug Z£-S 85-LS a�uEijdmo� uO�Eg-SZAEQ T£-S �s�zszxoz�a ��zn��s LS usZd a�usua�uzs� puy suoi�szadp so�saqsy a�aZd-uI 0£-S a� ��i// IO�� . o.,�.��` �q PaQe 0-9 Mayor's Expense Account 71-72 0-10 Fair Labor Standards Act Overtime Pay 72 0-11 Out-of-Town Travel 72-73 0-12 Parking Expense Reimbursement 73 0-13 Repair Of Police And Fire Vehicles Involved In Accidents 73 r t . w ti � ��a '��-� i CITY OF SAINT PAUL MISSION AND BUDGET PREPARATION GOALS GENERAL FUND, SPECIAL FUNDS, AND DEBT SERVICE FUNDS MISSION FOR THE CITY OF SAINT PAUL: Ensure the provision of high quality services, which meet the people's priority needs and which enhance the long term common good of the community within the constraints of available financing sources and reasonable taxing policies. - City services must: be responsive to citizen needs and requests; produce effective results that are measurable and quantified; be delivered efficiently, in a manner which is both timely, courteous, and cost effective; be in conformance with applicable laws; be delivered within the context of high moral and ethical standards; foster neighborhood livability, assist in �ob training, job creation, and job retention; and involve citizens in the decision making process. Service delivery includes those which provide public safety, health and general welfare. Services are to strengthen all the neighborhoods as places to live, work, play, be educated and raise families. City employees are essential to the delivery of quality services. The City is committed to providing a quality work place and quality services to the citizens, business community, and employees of St. Paul. . r _ � �;��o'i�� . 2 GENERAL BUDGET GOALS: GG 1 Maintain the fiscal integrity of the City's operating, debt service and capital improvement budgets in order to provide services and to construct and maintain public facilities, streets and utilities. GG 2 Maintain a responsible and prudent fiscal condition and high bond rating in order to minimize long-term interest expense when financing capital improvements with an ongoing systematic bonding prograan which spreads the cost of the improvements to benefitting citizens. GG 3 Prepare and annually refine written goals, policies, and job and performance standards to guide the preparation of financing, spending and activity plans for the City budget. GG 4 Coordinate decision making for the capital improvement budget with the operating budget to make effective use of the City's limited resources for operating and maintaining facilities. Require departments, divisions, and offices to prepare life- cycle maintenance plans as part of operating budget. GG 5 Present budget data to citizens, City managers, and elected officials in a form that will facilitate annual budget decisions based on a multi-year strategic planning perspective. GG 6 Prepare and evaluate activity performance plans that relate to financing and spending plans in the City budget. GG 7 Encourage citizen involvement in the budget decision-making process through public hearings. SERVICE LEVEL GOALS: SG 1 Budget decisions to increase a service level or add a new program will be financed with either a new revenue source or tax increase, or by a deliberate reduction in, or/elimination of existing services. Base decisions to reduce service levels or eliminate programs on citywide priorities and needs if revenue sources are inadequate to maintain existing services at current program levels. r , , . � �,�`l�'�`�� 3 Maintain programming flexibility to address priority user needs based on historical usage and demographic trends within service areas if a service is provided at many facilities throughout the City and a service level reduction is necessary. SG 2 Incorporate self reliance in both the day to day operation of the City and the development of its long range plans. SG 3 Avoid duplication of services and foster positive cooperation with other units of government. Seek joint use opportunities for public facilities with both governmental units and non-profit organizations when effective service delivery can be provided at less cost to the City or enhance services. SG 4 Recognize that City employees are City government's most valuable asset, and, as such, their concerns, participation, and morale are crucial to delivering high quality, efficient services to the residents and taxpayers of Saint Paul. SG 5 Employ good management practices when planning for service delivery by including in budget requests money to pursue activities, such as: - office automation and computer applications that increase productivity; - equipment modernization; - work-flow simplification; - risk management/employee safety, and wellness; - preventive maintenance; - energy conservation; - life cycle costing and purchasing of equipment; - lease-purchase options for high cost equipment purchases which reduce operating expenses; - performance planning, reporting and evaluation; - employee training; - employee well being; - employee child care; and - competitive bidding for certain services. SG 6 Modernize the physical and organizational structure of City departments and offices to facilitate better management of resources. Create an environment which encourages innovative problem solving and pursuit of opportunities to improve service delivery within existing budgets. SG 7 Provide adequate budget resources to address the long-term program needs for essential human service delivery coordination, better neighborhoods and economic development. , � �ya-��-��' 4 FINANCING GOALS: FG 1 Finance essential City services or public services under contract which have a citywide benefit in the budget with revenue sources which are generated from a broad base, i.e. property taxes, state and federal aids, annual service charges and franchise fees. Finance responsive services (where the fndividual served controls the use of the service) with dedicated revenue and user fees which directly relate to the level of service provided. Minimize General Fund financing assistance to those responsive service activities which have a common good community benefit but cannot totally finance expenses with user fees. FG 2 Minimize the impact and use of property tax financing by controlling costs and by seeking alternative financing for City services which focus on user fees for responsive services and by the upgrading and/or enhancement of the property tax base and aggressive aplication for state, federal, and other funds as approved by the Mayor and City Council. FG 3 Refine existing assessment financing formulas and user fee rate structures to more accurately charge the costs of service provided to the benefitting property owners and customers served, while being sensitive to the needs of low income people. FG 4 Support federal and state legislation that provides property tax relief and direct aid to cities, without reliance on regressive forms of taxation. Strive to eliminate local funding of regional and state responsibilities. Oppose legislation which imposes local service mandates without federal, state, or regional funding. FG 5 Seek reform of Minnesota property tax laws to target property tax relief to cities to reduce tax base disparities, and to more fairly reduce the tax burden disparity among the different classes of property. � �z� �.�yo i 6 assessments and annual service charges, special revenue, trust and agency funds) . The annual debt service budget provides for the payment of interest and principal on short and long term general obligation debt. It also provides cash for payment of the following year's debt service. Primary financing sources for debt service budgets are property taxes, interest earnings and dedicated revenues such as tax increments, special assessments to benefitted properties, annual service charges and utility user charges. Revenue bond debt service for a self-supporting governmental enterprise is appropriated in the enterprise's operating budget. The annual capital improvement budget (CIB) provides for the construction or purchase of projects having an estimated useful life in excess of three years (other than the acquisition of office or mechanical equipment, minor remodeling or repairs of existing structures) . The CIB must identify all projects which are proposed to be financed with the proceeds of general obligation or revenue bonds, all aids, grants and special revenues received by the City for financing capital improvements and all monies appropriated by the City Council in the General Fund and Special Fund budgets for capital projects. The capital improvement budget does not finance vehicles or mobile equipment. The annual capital improvement budget is part of the five-year capital improvement program prepared annually to finance and plan the physical development and redevelopment of City-owned land, facilities and infrastructure, as well as the inducement of private development of Saint Paul's housing stock and business properties. B-2 TWO-YEAR BUDGET PLANNING Existing City Charter and ordinances require annual adoption of the budget. City Offices and Departments shall prepare budget requests based on a two-year budget planning process in order to provide the Mayor and City Council with better and a more complete inventory of long range operation, maintenance needs, and job performance. Two- year budget planning makes transitions and shifts in programs easier to implement. The two year budget planning process is currently being phased into the budget process. As of 1992, the two year budget planning process will be implemented for all city departments. The Budget Office shall prepare for the Mayor and City Council two-year spending, financing and performance plans. B-3 BUDGET AMENDMENTS DURING THE YEAR: CHARTER POLICY Annual budgets may be amended during the current budget year in one of four ways, in accordance with the City Charter: 1) Budgets can be increased by Council resolution if the Mayor �yo-��z�` � certifies that there are available for appropriation total revenues in excess of those estimated in the budget. 2) The Mayor may transfer by administrative order part of or all of unencumbered appropriation balances within a department, office, or agency. Upon the recommendation of the Mayor, the Council may by resolution transfer part or all of any unencumbered appropriation balance from one department, office, or agency to another. 3) The City Council may by resolution adopted by unanimous affirmative vote of all members of the Council make appropriations to meet a public emergency as defined in Section 6.06 of the Charter. 4) If the Mayor reports to the Council that the revenue available will be insufficient to meet the amount appropriated, the Council shall take such action as it deems necessary to prevent or minimize any deficit and for that purpose it may reduce by resolution one or more appropriations. If the Mayor notifies Council of a revenue shortage, budget amendments may be recommended or executive authority may be used to control spending so as not to exceed available revenues. B-4 BUDGET AMENDMENTS DURING THE YEAR: GENERAL POLICY 1) Use of Fund Balance as a financing source for budget amendments, should only occur when the spending plan covers one-time expenses or pro�ects. Normally, fund balance will not be used to finance ongoing operating liabilities in mid-year budget adjustments. Mid-year budget adjustments for ongoing operating commitments should be financed with an ongoing revenue source or a transfer from another fund which has an adequate ongoing revenue source. All fund managers should strive to maintain operating reserves that provide sufficient financing security to ensure provision of basic services authorized in the annual budget and in accordance with the polices enumerated in this document. 2) A mid-year budget amendment must include a Fiscal Impact Analysis which includes an estimate of subsequent years budget impacts for both spending and financing. Additionally, budget amendments via administrative order shall be in compliance with policy direction as established in the adopted budget. 3) If the Mayor reports to Council that both revenue and reserves available will be insufficient to meet the amount appropriated, the Council shall take such action as it deems necessary to prevent or minimize any deficit and for that purpose it may reduce by resolution one or more appropriations or apply additional reserves. If the Mayor notifies Council of a revenue shortage, budget amendments may be recommended or executive authority may be used to control spending so as not to exceed available revenues. o-�� 8 B-5 MULTI-YEAR POLICY DIRECTION APPROVED BY CITY COUNCIL The Mayor shall recommend for City Council approval, written policy statements to guide the preparation of the City's and HRA's annual comprehensive financial plan. The City Budget Director shall be responsible for the coordination of four policy documents which provide multi-year policy direction and bring focus to strategic budget decision making for elected officials. The documents to be prepared and updated for the appropriate budget cycle are: - Budget Goals and Policies: Operating and Debt Service - General Obligation Debt Policy For Issuing Bonds - Capital Allocation Policies For The Capital Improvement Budget and Program - Housing and Redevelopment Authority Budget Policies B-6 CAPITAL IMPROVEMENT BUDGET AND OPERATING BUDGET COORDINATION Coordination and recognition of the interrelationships between the City's operating budget and capital improvement budget is an integral part of sound budgeting. To help assure understanding of the impact appropriations proposed within one budget will have upon the other and to minimize negative impacts: a. A priority for capital improvement budgets through 1994, will be projects which reduce operating and/or maintenance expenses. Of primary importance will be sewer separation projects, including street reconstruction and lighting when appropriate; in addition, review of Police and Fire Station facilities and equipment, and handicapped accessibility, will be priorities when it can be documented that the pro�ect(s) will reduce operating and/or maintenance expenses. b. Remodeling or major repair of any facility which may be closed due to staffing limitations is—prohibited. c. Requests for new or expanded service programs must be accompanied by a multi-year analysis of the fiscal impact on both the capital improvement budget and the operating budget. d. The Mayor's Proposed Capital Improvement Budget document shall include an estimate of the impact on operating budgets for the next five years for all capital improvement projects recommended for financing. e. City Council will hold a combined public hearing to hear testimony on annual service charges for street maintenance and Town Square Park, the Capital Improvement Budget and the General Operating Fund Budget. By September 1, 1990, the City Council must "adopt" a proposed budget and tax levy, in order to comply with the State's Truth in Taxation Law for providing budget information to the County Auditor for the preparation of a notice of proposed o�� 9 property tax statements by individual parcel. After considering the Mayor's proposed budget and holding the required Truth in Taxation public hearing, the City Council shall adopt the annual budget no later than twelve (12) days (December 6) before the adoption date required by law (December 20) . f. Consistent with Policy B-6, Extraordinary Capital Maintenance, in the "Saint Paul Capital Allocation Policies", appropriations requests for : 1) Routine, systematic, preventive maintenance of buildings, equipment and facilities, shall be financed in the operating budget and routine energy conservation improvements; 2) Extraordinary capital maintenance, handicapped accessibility, and extraordinary energy improvements shall be financed in the Capital Improvement Budget; 3) Life cycle replacement of structural building parts costing more than $75,000 (e.g. , wiring, roofs, furnaces) shall be financed in the Capital Improvement Budget 4) Initial purchase and life-cycle replacement of all mobile equipment and vehicles shall be financed in the operating budgets, except bookmobiles. Bookmobiles shall be financed in the Capital Improvement Budget if dedicated revenues are not available 5) Furniture and equipment for new buildings shall be financed in the Capital Improvement Budget, and replacement furniture and equipment for remodeling projects shall be made in operating budgets. 6) Lease-purchase financing should be considered as an alternative to immediate purchase, especially for high priced equipment with a life expectancy of less than five years. B-7 MULTI-YEAR REVENUE AND EXPENDITURE FORECASTS In order to provide elected officials with pertinent data to make decisions for multi-year budget policy direction, the Budget Director shall annually provide, with the assistance of affected departments, the following multi-year forecasts: - A three-year General Fund revenue and spending forecast, and General Fund fund balances. - A five-year revenue forecast for the Capital Improvement Budget and Program, and corresponding fund balances. - A five-year spending forecast for the General Debt Service Fund. - A three-year revenue and spending forecast for all special funds and corresponding fund balances. 0,��8� �� o B-8 BUDGET PREPARATION AND CONTROL: AUTHORITY, RESPONSIBILITY AND ACCOUNTABILITY OF THE MAYOR, CITY COUNCIL, BUDGET DIRECTOR, CITY MANAGERS, DEPARTMENT/OFFICE ACCOUNTANTS AND THE ACCOUNTING DIVISION OF THE DEPARTMENT OF FINANCE AND MANAGEMENT SERVICES A comprehensive financial plan for the City of Saint Paul's next calendar year must be recommended by the Mayor, and is considered and adopted by the City Council. The comprehensive financial plan is composed of budgets for operating, debt service and capital improvements. The Budget Director is responsible for gathering and analyzing department and office budget requests, and for preparing the various budget documents for the Mayor's proposal and the City Council's adoption. While the Mayor has ultimate control over the implementation of all budgets approved by City Council, the authority and responsibility for managing departments'/offices' suthorized budgets is delegated to Department and Office Directors. Budget management includes long range planning, annual budget preparation, implementing spending decisions, recording revenues, implementing revenue collection procedures (collection of fines, tickets, fees, etc.) , and evaluation of results. Directors may delegate budget management responsibilities to Division Managers, and fund and activit� managers. A budget is a fiscal plan for a specific period of time that estimates financing sources and provides spending authority for the performance of City services, programs and improvements. A fund is a fiscal account for designating money and other resources for the purpose of providing service, programs and pro�ects or attaining objectives in accordance with Mayoral and City Council intent, administrative and legislative policies, and State and Federal laws. An activity is a sub-unit of a fund. Each fund contains one or more activities, a specific and distinguishable budgetary unit of work or service. Activities are detailed levels of budget spending authority created to accomplish one or more of the approved objectives of the fund. Fund managers are accountable to and receive suthority from their Department/Office Director or Division Manager, and ultimately from the Mayor, City Council and City residents and taxpayers. Each fund manager is responsible for correctly preparing and submitting the portion of the City's comprehensive financial plan that is provided by their fund. This includes a properly completed budget request consisting of performance, spending and financing plans. The performance plan is the fund manager's estimate of the affordable service level desired by the Mayor, City Council and the residents of the City. The spending plan appropriates money to provide the estimated resources required to effectively accomplish the performance plan. The financing plan identifies the source of money to pay for the spending plan. Fund managers have primary responsibility for the control of budgeted expenditures, monitoring the collection of budgeted revenues, monitoring that sufficient revenues exist to o-�y�� =� �� finance expenditures, cash flow planning and the delivery of service in accordance with the adopted performance plan. In order to conform with the requirements of Chapter 10.10 of the City Charter, fund managers are responsible for holding spending to the limits appropriated in the budget by Council resolution or administrative order. Fund managers are also responsible for forecasting significant performance, spending or financing variances, determining their cause, and recommending a solution to their Department Director, Office or Division Director, and the Budget Director. Managers of accounts where fines, fees, or other revenue sources are to be collected, must initiate, implement, and carry out collection of said resources. Whenever possible, solutions should be considered and implemented in time to prevent a projected variance. When additional spending authority is needed or budgeted revenues will not be realized, a fund manager must notify his or her supervisor, the Department/Office/Division Director and Budget Director within three working days. Each activity manager shares in the authorities and accountabilities of the £und manager (as described above) as delegated to him or her. Activity managers are responsible for attaining performance objectives, approving spending payments and guiding the day-to-day operations of their activity. Activity managers report budget implementation progress to the fund manager. Each fund and activity manager shall see that services are provided within the context of high ethical and moral values, and in accordance with the city rules and policies for accounting, affirmative action, human rfghts, personnel and purchasing. The fund and activity managers and Directors have the employees of the Mayor's Office, the Budget Office, the Human Rights Department, the Personnel Office, the City Attorney's Office and the divisions of Accounting, Citywide Information Services, Purchasing, Risk Management and Treasury available to them as resources to assist in carrying out these responsibilities. Each ma�or department also provides staff support for accounting and timekeeping subject to Finance and Management Services Department policies. Department/office accountants are responsible for assisting their department's/office's fund and activity managers in the preparation and control of budgets; for providing technical budget, accounting, and payroll information and training to their managers; and for providing timely financial status reports to their Department/Office Director, Division Managers, and fund and activity managers. City managers will take aggressive action in all revenue collection procedures. The Mayor's Administration is to implement administrative procedures for aggressive revenue collection effective January 1, 1991. In the event that actual spending exceeds budgeted appropriations or actual revenues are less than budgeted, the department/office accountant shall immediately notify the fund manager, Department Director, Chief Accountant and Budget Director. The Budget Director �-�� , . . �� 12 shall take action to resolve the problem in accordance with Budget Policies. The Accounting Division of the Department of Finance and Management Services is responsible for determining, in accordance with Chapter 10.10 of the City Charter, that sufficient unencumbered appropriations exist prior to approving purchase orders, and payment of invoices and payroll. B-9 PERFORMANCE BUDGETII�G An Activity Performance Plan shall be prepared for each operating budget activity. 'A performance plan is a manager's realistic estimate of the service level desired or mandated by the Mayor, City Council, or other governmental entities, and the citizens of Saint Paul. The plan must identify ongoing program objectives and corresponding performance indicators. The indicators measure the quality, quantity, effectiveness and efficiency of the on-going objectives. The plan should also include specific project objectives which will have results during the budget year. All performance at the activity level must be consistent with the mission statements at the division, office, department and City level, and must meet the budget goals and policies established by the Mayor and City Council. All activity managers must commit to performing at the authorized service level once budgeted resources are confirmed. This promise is made evident by the manager's signature on the Activity Performance Plan. It is critical then, that the objectives are significant, measurable, attainable, and accurately reflect the managers' plans, including significant changes from past practices. During the budget year, a manager must prepare a "performance variance report" whenever there is a significant variance in meeting the objectives identified in an Activity Performance Plan. The responsible Office/Department Director shall inform the Mayor's Office whenever a variance has a critical impact on planned service delivery. The Administration shall prepare a Citywide executive summary of the managers quarterly performance reports and submit it to the Mayor and City Council for their review. Performance indicators will be set and approved by the City Council for each department, office, and division; and will be reviewed annually for compliance. B-10 BUDGET DOCUMENT DETAIL The Mayor's Proposed Budget shall contain major object level and line item detail for the activity spending plan, a personnel summary report listing types of positions for each activity, and a corresponding activity performance plan. It shall also contain division, department and fund summaries for spending and personnel; as well as a detailed financing plan for the fund. Spending, financing and performance plan detail shall be listed for the current year's budget and for actual C�yo-��' , � 13 � The City Council's Adopted Budget shall contain the same data as the Mayor's Proposed, except that the spending plan for each activity shall be summarized at the major object level. The City's automated, integrated financial management system shall maintain the line item spending and financing detail, and provide access to managers through on-line computer inquiry and print-outs of management reports and financing. B-11 BUDGET ERCELLENCE The City shall strive for budget excellence. Annually the Budget Office staff shall review and evaluate budget process and format with the process participants in order to identify enhancement opportunities. The Budget Office should submit the City's budget documents to Government Finance Officers Association (GFOA) for review and rating, and should strive to obtain the Award For Distinguished Budget Presentation with special emphasis on the communication of City policy and performance planning, reporting, and evaluation. BUDGET CONTROL AND MONITORING: B-12 GOOD MANAGEMENT PRACTICES Good management practices shall be employed in preparation and execution of the City's financing, spending and performance plans by including: - Responsiveness to citizen needs and requests. - Performance planning, reporting and evaluation. - Two-year budget planning. - Productivity opportunities such as office automation, work flow simplification and new technology applications that increase service delivery. - Equipment modernization. - Risk management/safety programs. - Preventive maintenance. - Energy conservation. - Employee training and recognition - Life cycle equipment purchasing and leasing. - Use of flex hours and job sharing hours to benefit employees and enhance services. - Use of job sharing hours. - Use of voluntary leave where needed for employee development and budget shortfall. - Enforcement of affirmative action. - Employee training, recognition, and review of job performance. - Re-training of employees to minimize use of outside job consultants. - Creation of career ladders for individual employees. - Encourage labor, management, and employee dispute resolution procedures and problem solving techniques. � � e -i��.� , , , � 14 - Retraining of employees to prevent proliferation of job titles. - Organization, planning and development. B-13 ACCOUNTING SYSTEM BUDGET CONTROL LEVELS The Accounting Division, in the Department of Finance and Management Services, shall enforce the intent of Section 10.10 of the City Charter which requires that no payment shall be made or obligation incurred against any appropriation unless there is a sufficient unencumbered balance in the appropriation and unless sufficient funds are or will be available to cover the claim or meet the obligation when it becomes due and payable. The Accounting Division shall maintain a spending control system for processing purchase orders, and payment of invoices and payroll. The control system shall allow for ordering and payments for operating and debt service funds when an unencumbered appropriation balance exists at the major object level. Capital project funds shall be controlled at the activity level, and the Water Utility Fund at the fund level. In the unlikely event that immediate disbursements are required, where no budget authority exists, for unanticipated needs such as emergency services, and contractual pass-throughs of money for another government or non-profit agency, the Mayor shall immediately request the City Council President to authorize unanticipated disbursements and shall recommend a budget amendment to the City Council. In such cases the Council President shall approve or disapprove the disbursement. The Mayor's recommended budget amendment shall be placed on the next Council agenda. If the Council President is not available, then the Mayor shall seek disbursement approval in the following order: Council Vice President, Finance Committee Chairperson, other Councilmembers, in order of seniority. B-14 MID-YEAR REVENUE SHORTAGES The authority to make expenditures in accordance with a City Council approved spending plan is only valid as long as the actual revenue for the budgets is equal to or greater than estimated. If during the year, the actual revenues for a fund are forecasted to be less than the City Council approved financing plan, the fund manager shall notify the Budget Director, Mayor, and City Council of all significant variances. The Budget Director, through consultation with the Department Directars, shall determine if spending reductions can be made to offset the revenue loss. If significant service level cuts would be required, the Budget Director shall inform the Mayor and City Council of the amounts and service level impact. If there is a desire to maintain service levels and use fund balance or request a transfer from another fund, the affected Department or Office may request and the Mayor may recommend to City Council a budget amendment for their consideration. ►�f"�,�C'0-/�� , � � is B-15 YEAR END ENCUMBERED BALANCES Governments recognize their financial obligations for approved contracts for goods and services that have not yet been paid because service delivery is not complete, as "encumbering". The amount of City spending authority encumbered for contracts in process lapses at year end, creating a "Reserved" fund balance. This "Reserved fund balance is used to finance the reappropriation of authority to pay for the previous year's contracts from the new year's budget. The Accounting Division shall prepare a listing of encumbrances carried forward to the current budget and roll forward the encumbrance obligation of the past year. This method of recording and reporting prior year end encumbered balances does not represent an increase or decrease in net spending authority. It merely facilitates the recording and reporting of all expenditures incurred in the current year against the current year budget. B-16 BUDGET REQUIREMENTS FOR CONTRIBUTIONS AND DONATIONS AND SPECIAL ACTIVITIES WITH PUBLIC PURPOSE All private money donated, contributed, or lent to the City for operations, maintenance, purchase of equipment, supplies, land or capital facilities shall be deposited in the appropriate City fund and accounted for as public money through the City's existing budget process and accounting system. The use of private dollars to offset part of the cost of special activities, such as recreation programs, special benefits and exercise and training programs, shall be included in a special memo budget to be approved by City Council resolution. The use of these private monies may be accounted for by special checking accounts which allow for efficient, responsive service delivery to the user of the special activity, without the normal time delay associated with check writing and disbursements from a City account. All contributions, donations, and outside donations shall be accepted in accordance with the solicitation policy (Chapter 41 of the St. Paul Administrative Code) adopted by the City Council in May 1990. Donations shall include cash, checks, or property value. All donations of any type, in any amount of value, shall be received and processed in accordance with proper and accepted accounting practices; be received and accepted by City Council actions according to the ordinance; be public and subject to audit. The use of private monies and special checking accounts will meet the procedures established by the Finance Department, appropriate department, office, or division. Organizations, such as booster clubs, Friends of the Library, etc. , provide a valuable service to the citizens of St. Paul through their donations of money, time and effort. All fund managers should strive to maintain operating reserves that provide sufficient financing security to ensure provision of basic services authorized in the annual budget and in accordance with the policies envisioned by the City Council �9�,��' , .. . 16 and without reliance on contributions and donations as an ongoing revenue source for operations management. B-17 SOLICITATION BY EMPLOYEES Chapter 41 of the Saint Paul Administrative Code specifies the policy regarding soliciting on behalf of the City. In 1990 the City Council amended Chapter 41. Adherence to the Code is expected by all offices, departments, divisions, and City personnel. Chapter 41.01 of the Saint Paul Administrative Code specifies that, "No officer or employee of the City of Saint Paul shall solicit any funds or property for any employer-related or occupational-related purposes. This shall include solicitation for groups or organizations that exist because of an employee-employer relationship in organizations that are sponsored primarily by city funds." "Solicit shall mean requesting donations, funds or other financial assistance by any method. This shall not include any federal government, state government or foundation grants that require a formal application process, and receipt of which is acknowledged by the city council." SOLICITATION PROCEDURES NEW POLICY A: SOLICITATION BY EMPLOYEES Chapter 41 of the Saint Paul Administrative Code specifies the policy regarding soliciting by employees on behalf of the city. Sec. 41.03 provides that "This provision shall not prohibit the City from accepting donations. . . ." A. Estimated, unsolicited donations of money or property shall be included in the annual budget under ob�ect code number xxx. B. All unsolicited donations shall be deposited with the city treasurer under the procedures outlined in the Accounting Procedures Manual, section IV (D) . C. The fund or account manager shall maintain a list of donors showing date of donation, donor, and amount donated. A copy of this list of donors shall be filed quarterly with the city clerk's office by the last day of the month following the close of a quarter. 1. The document shall show the current quarter's additions by date of donation, donor, amount donated, and the beginning and total amount collected for the current and previous quarter or quarters of the current calendar year. D. If no unsolicited donations were anticipated at the time the budget was prepared, a budget amendment shall be prepared by the fund or activity manager under ob�ect code number xxx showing the donor, �qo_r�z� , � �� amount of donation, and date of donation--or, by the anticipated total unsolicited donations under budget code number xxx expected for the remaining current year. The amendment shall be approved by the council and mayor prior to acceptance of any donations. Upon approval of the budget amendment, procedures B & C shall be followed. Sec. 41.04. provides that, "Nothing contained in this chapter shall prohibit or prevent the Mayor of his or her designated person, or any Council person or his or her designated person, from soliciting funds on behalf of the city or on behalf of any city sponsored function or organization. . . ." A. Estimated, solicited donations of money or property by designated persons shall be included in the annual budget or in a budget amendment approved prior to the beginning of solicitation under object code number xxx. B. A supplemental page to the budget or budget amendment document shall be prepared and attached to the budget or budget amendment document showing the person or persons designated to solicit, the dates of the solicitation, the purpose of the solicitation, projected solicitation revenue, and projected solicitation expenses for each type of solicitation. 1. Changes in designated persons or dates of solicitation may be made by filing with the city clerk a statement listing the new or additional designated persons or dates of solicitation, and signed by the mayor. C. Any funds collected shall be deposited with the city treasurer under the procedures outlined in the Accounting Procedure Manual, section IV (D) . D. The fund or activity manager shall prepare a list showing the donor, date of donation, and amount or donation. A copy of this list of donors shall be filed quarterly with the city clerk's office by the last day of the month following the end of a quarter. The lists shall be maintained for each solicitation purpose. 1. The document shall show the current quarter's additions by date of donation, donor, amount donated, and the beginning and total amount collected for the current and previous quarter or quarters of the current calendar year. Section 41.06. states that, "Notwithstanding the provisions of this chapter, any charter department of the city, the office of the Mayor, and the City Council may enter into a contract with a fund raising agency to raise donations or funds for department or city wide purposes. . ." A. Estimated, solicited donations of money or property by fund raising agencies shall be included in the annual budget or a budget amendment under object code number xxx. B. A supplemental page to the budget document or amended budget document shall be prepared showing the name of the fund raising agency, dates of solicitation, purpose of the solicitation, projected gross revenue, and projected solicitation expenses for each type of solicitation. �'�-9��/`�a� . . � 1$ C. The contract between the city of Saint Paul and the fund raising agency shall show the dates of solicitation, purpose of solicitation, projected gross revenue, projected solicitation expenses for the solicitation project, and the agency's agreement to be audited by a city appointed auditor, approved by the city attorney's office, signed by the fund raising agency and those parties as required by the city charter and administrative code after approval of the budget or budget amendment, and filed with the Accounting Division of the Department of Finance and Management Services prior to the beginning of solicitation. D. Funds received shall be deposited with the city treasurer under the procedures outlined in the Accounting Procedures Manual, section IV (D) . E. Financial statements concerning solicitation conducted under the terms of the contract, including a balance sheet and statement of revenues and expenses, shall be filed by the fund raising agency, either annually by the 15th day of the third month following the city's year end, or by the 15th day of the third month following the ending date of the solicitation period, whichever is earlier. The statements shall be prepared by the fund raising agency on a calendar year basis using generally accepted accounting principles. B-18 MID-YEAR BUDGET ADJUSTMENTS: AUTHORIZED WORKFORCE Sec. 10.074 of the City Charter gives the Mayor the authority to transfer any time during the year any part or all of any appropriation balance within a department, office, or agency. Transfers from one department, office or agency to another require a Council resolution. The City's policy for mid-year budget ad,justments of salary dollars for allowable full-time equivalent (FTE) positions where there is no material impact on service level is: A) Approval by Budget Director: 1) Trade high paid FTEs for more low paid FTEs only when there is no expansion of a program. Salary dollars including fringe benefit costs must not increase after the trade. 2) Transfer Personal Service Contract dollars for salary and fringe dollars only if: a) Part-time contracts equal part-time civil service positions b) Special project contracts equal temporary civil service employment B) Conceptual approval by City Council Prior To Taking Any Action: 1) Trade of low paid FTEs for fewer high paid FTEs. (Reduces service level) 2) Desire to increase FTE's to expand service level program for ongoing basis 3) Desire to convert personal service contract for a short term project into ongoing City employment Any FTE change made administratively by the Mayor during the course of the year, does not necessarily commit the Mayor or City Council to budgeting that FTE in the corresponding year's budget. ��o,�� 19 The FTE changes approved by the Mayor will be communicated to City Council by having the City Clerk transmit a copy of the Administrative Order to the City Council and by including a log of changes in the "Analysis Document For Mayor's Proposed Budget" . B-18A SPECIAL FUND BUDGET 1. Funds or activities within special revenue funds that receive General Fund support shall be specially reviewed to determine whether it is appropriate to retain them as special funds. 2. Special funds with annual operating budgets that do not reflect separate and distinct programs should be merged into another fund, bringing its revenue along into the fund. This assumes there are no legal requirements prohibiting such a merge. 3. If Revenues are deposited into one fund that supports the expenditure activities of another fund, the first use of those revenues should be cost recovery for the source fund. 4. The revenue center concept should be encouraged: 1) to ensure sound fiscal management of all funds; and 2) where there is potential for generating additional sources of non-property tax revenues in the normal course of conducting City business. CASH FLOW POLICIES: Background: A basic rule of governciental finance is that municipalities recognize revenues and expenditures according to fund accounting principles. A fund is a fiscal entity with a self-balancing set of accounts that record cash and other resources together with related expenditures, liabilities and residual balances. These accounts are used to report on the provision of particular services. Each existing fund is considered a separate financial entity. B-19 MINIMUM CASH BALANCE GUIDELINES Each fund manager shall prepare their fund's annual financing plan with the goal of maintaining a positive cash flow. Fund balances should be held for cash flow purposes in accordance with the policies enumberated in this document. B-20 PREPARATION OF MULTI-YEAR PLAN FOR SPECIAL FUNDS WITH NEGATZVE CASH FLOW �a.��/�� . 20 " ' A written multi-year plan for correcting a projected negative cash flow in any fund shall be required as a part of the annual budget request process. The fund manager's plan must be submitted to the Budget Director and be acceptable to the Director of Finance and Management Services. The City Council may not adopt a budget for any fund which has a pro�ected negative cash position unless it has an approved written multi-year plan for correcting the negative cash flow. If service or user fees are part of the financing plan for funds which are operating in a negative cash position, the fee established should include an amount for working capital that is consistent with the approved plan for correcting the negative cash flow. Cash advances will not be made to funds with a negative cash flow unless there is a multi-year plan prepared which identifies how and when the advance will be repaid. B-21 GENERAL FUND CASH ADVANCES LIMITED TO SPECIAL FUNDS WITH NEGATIVE CASH FLOW Normally, the only circumstance in which the General Fund will provide cash to address negative cash flow will be for special operating funds which are financed primarily with special assessments or service charges. Any cash advance from the General Fund will be considered a recoverable loan. A plan for repaying the cash advance must be prepared and accepted at the time City Council authorizes a cash advance. B-22 USE OF CASH FLOW LOANS FROM SPECIAL FUNDS Recoverable loans can be made to funds that are operating with a negative cash flow from special funds that have sufficient cash reserves. The cash-poor fund will pay interest to the cash-rich fund on its loan at a rate agreed upon by the fund managers and the Director of Finance and Management Services. Inter-fund cash flow borrowing must be recognized by an interest-expense appropriation in the budget, adopted or amended, of the cash-poor fund, and by a revenue estimate for interest income in the budget of the cash-rich fund. B-23 GENERAL FUND AND GENERAL DEBT SERVICE FUND SHORT TERM BORROWING The Budget Director, City Treasurer and Director of Finance and Management Services shall jointly recommend to the Mayor and City Council whenever they believe it is necessary to short term borrow to address cash flow shortages. It is the City's intent to maintain adequate reserves to preclude the necessity for expensive, short-term borrowing. The City may issue Tax Anticipation Certificates (TAC's) or negotiate and repay short term loans, as needed, in order to maintain a positive Ci/_7��1��0 . . � 21 cash balance in the General Fund and in the General Debt Service Fund. As required by the City Charter, any short-term TAC's will be repaid before March 1 of the year following the date of issuance. B-24 PUBLIC IMPROVEMENT REVOLVING FUND CASH FLOW No General Fund money will be advanced to the Public Improvement Revolving Fund for cash flow. Construction pro�ects financed with special assessments will require the issuance of special assessment bonds to provide cash to finance construction contracts. B-25 PRIORITIES AND PROCEDURES FOR DISBURSING CAPITAL PROJECT FINANCING In order to maximize allowable interest earnings on cash investments, fund and activity managers and the departmental accountants will conform with the following when paying bills for capital projects: 1) An interdepartmental invoice for transfer of money between funds will accompany each pay voucher which equals or exceeds $50,000; 2) An interdepartmental invoice for transfer of money between funds will be completed at the end of each month to cover all pay vouchers which totalled less than $50,000; 3) If a capital project has multiple sources of financing available, spending will be charged against funds in the following order, subject to the qualifications listed below: - Reimbursable grant funds--these funds should be spent first with prompt request for reimbursement; - Bond funds sold in 1987 or after; - Cash grants which have interest limitations; - Bond funds sold prior to 1987; - Cash grants which do not have interest limitations. The following qualifications should also be applied: 1) Grants with time restrictions should be spent within the allowable period. 2) If the budget for a project exceeds the project's final cost, cash grants should be used to the full extent allowable leaving other financing sources available for reappropriation. B-26 MONTHLY CASH RECEIPT ESTIMATES WITH BUDGET AMENDMENTS Each fund manager shall prepare an estimate of monthly cash receipts whenever a Special Fund's annual financing plan is being amended by Council resolution to increase or decrease revenue sources or receive transfer amounts. o-j�� d �y , . , 22 OPERATING RESERVE AND YEAR-END FUND BALANCE: Background: City budgets can contain two types of operating reserves: one can be provided for in the spending plan, where money is appropriated for contingencies; and a second can be a designated fund balance. A description of both types of reserves follow: 1) Contingent reserves are normally appropriated in the General Fund budget. Traditionally, the City has had both a "General Contingent Reserve" and a "Specified Contingent Reserve." The General Contingent Reserve provides an appropriation for unexpected expenditures during the budget year. The Specified Contingent Reserve, is a special appropriation dedicated for a number of particular uses. Although City Council recognizes the need for the particular uses identified in the Specified Contingent Reserve, they establish conditions to be met before the money may be released. A Council Resolution is required to transfer money from both the General and Specified Contingent reserves. A transfer from the contingent reserve to a department office's budget does not cause a net increase in total spending authorized. 2) The second type of operating reserve is a designated fund balance which is money remaining from a prior year's budget. It is used to cover unanticipated revenue loss, or for specific spending needs which will require City Council approval to increase total spending authority. In limited circumstances, a fund balance designated for cash flow and revenue loss security may be used to finance unexpected expenditures. A Council Resolution is required to increase spending authority. The existence of this type of operating reserve reduces the need for cash flow borrowing. In 1981 and 1982 state aids to Minnesota Cities were reduced in the middle of a budget cycle when the state had to balance its budget to offset a reduction in income and sales tax revenues when the state's economy weakened. In 1982 the State Auditor recommended that all municipalities in Minnesota maintain a designated fund balance operating reserve in their General Fund budget equal to one-half of their city's expected Local Government Aid (LGA) payment. In Saint Paul, for 1990, based on the current LGA law, this revenue reserve would amount to $23,487,000. A 1982 survey by the League of Minnesota Cities indicated that most municipalities maintain fund balance reserves in the range of SX to 12% of their estimated budget. The City of Saint Paul's designated fund balance for revenue shortage was significantly lower than these figures, but has been improving. In 1980 the City had a revenue reserve of only $500,000, or less than 1� of the estimated budget. The designated revenue reserve grew to 1.3% for 1981 and 1982, was 2X in 1983, was 4X in 1984, and has remained at SY since 1985. The 1989 budget had a 5X Designated Fund Balance of $6,245,323 for Revenue Estimate Security and Cash Flow (less than one-third of the amount recommended by the State Auditor) . Recent years` experience with mid-year revenue loss to the City highlights the need for this reserve. After the 1982 budget was adopted, Local Government �".�o,�.�1 � • ' 23 Aid was cut by $3,686,000, Homestead Credit Payments were reduced by $708,000 and Northern States Power (NSP) Franchise Fee receipts were $395,000 short of estimates. After the 1983 budget was adopted, NSP notified the City that the franchise fee revenue estimate would be reduced by $500,000. In the Spring of 1986, the financing plan for the adopted budget had to be adjusted to recognize a $2,055,000 revenue loss: $1,030,000 in NSP franchise fees, $918,000 in General Revenue Sharing, $30,000 Community Health Services Aid and $77,000 in interest earnings. In 1987 the financing plan had to be reduced by $1,352,000 to offset shortages in taxes, franchise fees, municipal state aid and parking revenues. B-27 GENERAL FUND - APPROPRIATED RESERVES The City will appropriate a "General Contingent Reserve" in the General Fund that will provide a minimum of $250,000 for unexpected expenditures. The maximum for this unspecified reserve (in Activity 09060) should not exceed 0.5% of the total General Fund spending plan. The City will continue to appropriate a "Specified Contingent Reserve" in General Fund Activity 09061 that will provide an amount for unanticipated employee promotions, position regradings and other specific needs as appropriated by the City Council. The City will appropriate a "Reserve for Negotiated Increases" in all budget activities which have salary costs. This reserve for each activity will be based on actual salary settlements when contracted with a bargaining unit, and projected salary settlements as determined by the policies enumberated in this document, when settlements are pending. B-28 GENERAL FUND - DESIGNATED FUND BALANCE RESERVES The City should strive to establish General Reserves in an amount provided by the formulas in B-31. The designation of these reserves should be as follows: The General Fund's Designated Fund Balance for Revenue Estimate Security and Cash Flow shall be no less than SX of the annual spending plan. According to the Risk & Insurance Management Society and a 1983 consultant's report, the budget should include a Designated Fund Balance equal to .SX - 1.5% of the General Fund operating budget for the following liabilities: - Tort Liability - Employee Insurance - Workers' Compensation B-29 GENERAL DEBT SERVICE FUND - DESIGNATED FUND BALANCE RESERVES The City shall continue to maintain the mandatory 5X General Debt Service Fund reserve in order to provide for potential tax delinquencies in lieu of a S% over-levy, as required by state law. q��v�� , • � � 24 In accordance with the Bond Counsel's recommendations for financing the first year's debt service for planned bond sales, the City shall levy property taxes instead of relying on estimated future revenues. This will result in a more positive fund balance. In addition, the City shall establish and maintain a designated fund balance reserve for Tax Abatements in the General Debt Service Fund equal to 2.0% of the annual debt service tax levy. The debt service reserve shall be established over a four year period beginning in 1990 and ending in 1993. In accordance with the federal arbitrage provisions of the Tax Reform Act of 1986, the City must rebate earnings on investments which are in excess of the rate on the bonds. The rebate rules apply to bonds issued on or after 9-1-86. The City shall designate an Arbitrage Rebate Reserve for the amounts owed the federal Treasury. The City shall budget the payout to the U.S. Treasury for the budget year it is due. B-30 APPROPRIATED RESERVES - SALARY FRINGES All budgets will include an appropriated reserve for expected salary and fringe benefit increases. This applies to all budgets. B-31 FUND BALANCE All fund managers should strive to maintain fund balances that provide sufficient financing security to ensure provision of basic services authorized in the annual budget and to maintain positive cash flow for the fund. In addition, the General Fund shall meet the cash-flow requirements provided in the policies enumberated in this document. Minimum fund balances should be established according to the following guidelines: 1. For cash flow: For Funds that rely on assessments or property taxes, lOX of annual operating expenditure. For Funds financed with user fees, charges, grants or any other non-property tax, non-assessment revenue, an amount to cover operating expenditures for a period equal to the fund's billing lag. 2. For revenue security: A percentage of revenues equal to the largest historical revenue shortfalls in the last ten years. 3. For emergency security: 2% of operating expenditures. ��9��y�P� � � � " 25 4. For planned capital improvements: Any Council approved amount. 5. For Debt Service: The amount necessary to meet bond requirements. Fund balances in excess of the minimum provided by this policy may remain in the fund or shall be used in accordance with Policy B-32. B-32 USE OF FUND BAI.ANCES/RETAINED EARNINGS Where fund balances exceed those needed to establish the reserves set forth in B-31, those fund balances should be used as follows: l. Retained earnings not needed for cash flow or capital internal service funds should be used to stabilize rates charged to user departments. 2. In funds supported by assessments and/or user fees, fund balances/retained earnings not needed according to the formula above should remain within the fund to stabilize rates, or be used to support specific expenditures related to the mission of the fund, as approved by the Mayor and the City Council. 3. Funds supported by revenues other than user fees, assessments or the General Fund should use fund balances in accordance with an expenditure plan developed by the department and approved the Mayor and Council. 4. Fund balances consisting of unspent transfers from the General Fund for annual operating expenditures should be returned to the General Fund at year end. B-33 CIVIC CENTER AUTHORITY - RETAINED EARNINGS PRIORITIES Civic Center Authority Resolution No. 2505 established priorities for the establishment and reserve of retained earnings for the purpose of providing security for the financing of future lease payments under the Civic Center Lease Agreement, for use for major repair and maintenance projects and for new capital improvement projects. The resolution clarifies that the cumulative, rather than annual, excess of revenues over expenses is available for allocation. Retained earnings is defined as the cumulative excess of revenues over expenses as reported on the Civic Center Operating fund balance sheet. The priorities are: 1) Maintenance of an adequate working cash balance in the Civic Center Operating Fund. 2) Repayment of any advances from the City of Saint Paul General Fund. �,�o'�y.�� r ' 26 3) Major repair/maintenance projects as approved by the Civic Center Authority. 4) Annual payment to the City's Civic Center Lease Fund for the financing of Civic Center lease payments in accordance with the Sale/Leaseback Financing Plan, which allowed for the remodeling of the Civic Center Ramp and Wilkins Auditoriwn. 5) Establishment and maintenance of a Sale/Leaseback Maximum Lease Payment Reserve for the purpose of providing security for the financing of future Civic Center lease payments. 6) New capital improvement pro�ects as approved by the Civic Center Authority and the Saint Paul City Council after review by the Long Range Capital Improvement Budget Committee. 7) After consideration of items one through six above, any remaining unreserved retained earnings will be available to the City's General Debt Service Fund for debt service payments on general obligation bonds issued to construct the Civic Center Arena and Parking Ramp. Deviation from these general priorities must be approved by resolution by both the Civic Center Authority and City Council. DEBT SERVICE - TERM OF BOND ISSUE: Background: When bonds are issued, the interest rate charged and the total interest expense incurred by the City are dependent on the length of time over which the principal is repaid. Interest rates are one consideration in determining the term and structure of bond issues. In market conditions with a normal yield curve, a bond issue that is repaid over 10 years will receive a lower interest rate and will require less interest expense than one which is repaid over 20 years. In a flat yield curve environment, interest rates will not be higher for longer term bonds. In addition to interest rates, the term and structure of a bond issue depend on other facts such as the useful life of a project, revenue projections, and other overlapping debt service. Payment schedules for General Obligation Bonds usually require interest payments twice yearly, starting approximately six months after the date of issue; and principal payments once yearly, starting approximately 12 months after the date of issue. Normally bonds are issued in February or March before the beginning of the spring construction season. B-34 BOND REPAYMENT SCHEDULES Bond repayment schedules should be structured as follows: 1) The maximum term of Capital Improvement Bonds authorized by state law is 10 years. 2) The term of Sewer and Water Revenue Bonds for the City's sewer pro�ects will depend on market conditions and the useful life of the project being financed and City Council approval. .. . i. �"---90�/�/.Z� 27 3) The term of Tax Increment Bonds will be the shortest time possible to minimize interest expense within the limits of the tax increments available to finance annual debt service payments. 4) The term of Revenue Bonds will be structured to match the useful life of the project being financed and the revenue stream supporting the debt service. Elements of this policy may need to be modified in response to changing regulations and conditions in the debt market. On a yearly basis, the Director of Finance and Management Services, the City Treasurer and the Budget Director, together with the City's fiscal consultant and bond counsel, should analyze these issues and if conditions require that a bond sale be structured in a manner that is not consistent with this policy, City Council approval shall be obtained by preliminary resolution in advance of the bond sale. B-35 CERTIFIED LEVIES FOR GENERAL OBLIGATION BONDS The City shall certify the tax levies required for each General Obligation bond issue to maintain a positive cash flow. The annual budget will include the required amount designated for subsequent year's debt service. The annual budget for the General Debt Service fund shall include an appropriation for debt service payments for pending bonds proposed to be issued in that year. The appropriation shall be for both the current and subsequent year payments. The levies amounts should be based on proposed bonding—recommended by the Mayor and City Council in keeping with the policies in this document. B-36 SCHEDULING OF BOND SALES The City shall strive to sell its General Obligation bonds before March 15 each year in order to have bond proceeds in hand before spring construction contracts are let. If it is necessary to sell Tax Anticipation Certificates, they shall be issued at the same time the City issues its long-term debt. Bonds will be sold in a manner which will minimize payment of penalties on arbitrage earnings. Financing for capital improvernent pro�ects must be scheduled so that all bond financing is used within two years of the date of the bond issue. If necessary, design and or construction should be contracted out to assure timely completion of a project. Projects which are not proceeding according to schedule will be evaluated and a determination made as to whether bond proceeds should be reallocated. � � , , 0-/�'��` . . . � ,� 28 FINANCING POLICIES The following Financing Policies relate to the ma�or sources of financing for City budgets: property taxes, state aids, bonding, utility charges, assessments, annual service charges, user fees, grants and fund transfers. The policies address issues of financing priorities, limits and estimation in a general and specific manner. GENERAL POLICIES: Background: Since 1982, the annual budget preparation process for the City has emphasized generation of non-property tax revenues. Given recent fluctuations in General Fund revenue sources and federal grants, prudent projections are preferred when estimating revenues. F-1 FINANCING ESTIMATES FOR THE CITY'S ANNUAL FINANCIAL PLAN A detailed financing plan (revenues, transfers in from other funds and use of fund balance) must be prepared for all City funds showing public purpose, in order to ensure that the City's Annual Financial Plan is comprehensive and complete. The financing plan for each budget being prepared should be estimated in the following manner, unless prudent judgment dictates otherwise: 1) Revenue controlled by state law will be estimated at the level specified by the law, or the amount estimated by the State Department of Finance, whichever is more current. 2) Revenue from Federal, State or foundation grants will be estimated at 100% of the expected grant amount, if a grant award notice has been received. For pending grants, the revenue should be estimated at 90% or less depending upon the history of success for the particular grant source. 3) Revenue that is subject to fluctuation will be estimated at 97X of actual expected collections. 4) "Transfers In" can be recognized as a financing source only if there is a corresponding "Transfer Out" in the spending plan for the fund where the money is to be transferred from. S) An estimate of use of undesignated fund balance will be prepared by the fund manager, and will be consistent with the fund balance policies identified in this document. For the General Fund budget, department revenue estimates for the i ' ' A-/�/��' � �� 29 actual amount expected to be received should be submitted to the Budget Director. In order to prepare General Fund cash flow estima�es, department personnel must also submit an estimate of cash receipts by month for each revenue estimate, F-2 NEW REVEN[1E OPTIONS If existing General Fund financing sources are not adequate to maintain all existing services at current levels, the following revenue sources will be considered for use in financing City services, with appropriate action by the Mayor and adopted by the City Council: - Skyway Operation and Maintenance Assessments and Service Charges - Street Lighting and Traffic Control Assessments and Service Charges - Winter Street Maintenance Assessments and Service Charges - Paramedic Fee For First Aid Services Without Transport - Economic Planning Service Fees - Civic Center as an appropriate source for new revenue In addition the City will actively lobby for Federal, State and Metropolitan funding for the operation and maintenance of Como Zoo and Conservatory and the Science Museum complex, Metropolitan funding for the acquisition and development, and operation and maintenance of regional parks; and Ramsey County funding for roads and bridges. During 1991, the following will be pursued by the Mayor and City Council: The City will work with the Metropolitan Council regarding a regional sales tax to support parks, arts, and other cultural activities; Work with the Metropolitan Council and State legislators to assist in the financing of the Combined Sewer Overflow and Inflow & Infiltration projects. Seek legislation that would provide payments in lieu of taxes for property taken off the tax rolls by tax exempt entities inside an existing T.I.F. district. This will help prevent loss of anticipated revenue to refund local bond obligations. Pursue an adjustment in the LGA formula to offset property tax losses due to tax-exempt properties existing pursuant to state and federal statutes. Pursue state legislation to create a fund from present sales tax revenues to be targeted to cities for economic development that focuses on increasing the level of retail activity. . �ye_,y�� r � 30 PROPERTY TAX FINANCING: Back rQ ound: The financing o£ City services has shifted toward local sources, primarily the property tax and user fees, due to federal and state budget policies enacted while the economy was in a recession and efforts to "reform" federal and state tax laws. A major Saint Paul budget goal continues to be "to minimize the impact and use of property tax revenue by controlling costs, and by seeking alternative financing for City services and by the upgrading and/or enhancement of the property tax ba�e." F-3 PROPERTY TARES FOR THE GENERAL FUND The City shall strive to have the percentage increase for the property tax levy for the General Fund budget equal to or less than the average annual rate of inflation, as measured by the Consumer Price Index (CPI) for the Minneapolis/Saint Paul area. Where the percentage increase in the property tax levy is greater than the CPI-measured inflation rate, the City will first attempt to achieve a balance via spending plan reductions or other revenue increases before considering an increase in the property tax levy. F-3A NEIGIiBORH00D HEALTH CLINICS - RAMSEY COIINTY CONTRIBUTION The Budget Office is directed to negotiate with Ramsey County to have the County assume the financing for Saint Paul's contribution to the neighborhood health clinics. If negotiations are successful, the Budget Office is requested to bring back a proposal, for acceptance by Council resolution, to transfer the City's property tax levy authority for the neighborhood health clinics to Ramsey County. The transfer would be contingent upon the Ramsey County Board giving assurance that there would be no net decrease in clinic support. F-4 PROPERTY TARES FOR THE GENERAL DEBT SERVICE FUND The City shall minimize the property tax levy for debt service for General Obligation bonds. Earnings on bond proceeds shall be deposited into the General Debt Service Fund rather than into the Capital Projects Fund, unless otherwise specified by Council resolution or Federal laws pertaining to arbitrage. All interest earned on the $14,402,000 Capital Reimbursement proceeds from the 1988 Sewer Revenue Bond issue shall be used to reduce property tax levies for general obligation bond issues. � . o-il��' ��9 . , . � 31 Debt servi�ce for all outstanding General Obligation Bonds issued for sewer cons,truction (both Capital Improvement bonds and Water Pollution Abatement bonds) shall be financed with user fees collected in the Sewer Service Fund instead of a citywide property tax levy. F-5 CERTIFIED TAX LEVY REQUIREMENTS FOR DELINQUENCIES For the General Fund budget, an amount equal to two percent of the property tax revenue identified in the adopted financing plan shall be included in the certified tax levy for delinquencies (shrinkage) . For the General Debt Service Fund budget, no excess property taxes shall be levied for anticipated tax delinquencies. Instead, the City shall maintain a five percent mandatory reserve as a designated fund balance to offset tax delinquencies and to improve cash flow. CITY BONDING FOR 1990 and 1991 (BIENNIAL CIB): Background: The 1986 Joint Debt Advisory Committee, representing the Saint Paul Board of Education, the Saint Paul Port Authority, the City of Saint Paul and Ramsey County, established the following major goal: "By 1992, the Maximum Amount of Overlapping General Obligation Debt For The Saint Paul Tax Base Should Not Exceed 3.5% of the Estimated Market Value Of Taxable Property. " In order to meet the 1992 overlapping debt goal, the Saint Paul City Council on March 12, 1987 adopted the following goal: "The City of Saint Paul will strive to have its direct debt be less than 2.5% of the Estimated Market Value of its taxable properties by 1992." Based on the bond issue assumptions submitted to the Joint Debt Advisory Committee, the annual average amounts for new general obligation debt for the City of Saint Paul between 1987 and 1992 are: $2,000,000 for tax increment financed bonding, $2,900,000 for special assessment street paving bonding, $13,300,000 for property tax financed bonding, and $4,800,000 for interest free state loans for the combined sewer separation program NOTE: In 1987, the Council did adopt the following goal to strive to have its direct debt be less than 2.5X of the Estimated Market value of its taxable properties by 1992. . , C�� 32 F-6 MARIMUM AMOUNT OF GENERAL OBLIGATION BONDING FINANCED WITH A CITYWIDE PROPERTY TAR LEVY Capital Improvement Bonds will be the only general obligation bond issue in 1991 to be supported by a citywide property tax levy. High priority redevelopment activities which were previously financed with Urban Renewal Bonds will now be financed with Capital Improvement Bonds. Debt service for general obligation bonds issued for sewer projects shall be financed by sewer user revenues instead of tax levies. The 1989 Joint Debt Advisory Committee projected the sale of up to $14,800.00 in Capital Improvement Bonds in 1991. The C.I.B. Committee and Mayor should limit Capital Improvement bonding to $12,600,000 in 1991. City Council may increase the amount if (1) there is additional unanticipated state revenue assistance, (2) the 1991 property tax levy for the General Fund Operating Budget is less than the 1990 levy after adjustment for inflation, or (3) a combination of (1) and (2) . F-7 SPECIAL ASSESSMENT BONDING FOR STREET PAVING The City will issue special assessment bonding to finance 25X of the cost of paving streets for those projects prioritized in conjunction with the Combined Sewer Separation Program. It is anticipated that the amount of bonds issued will be approximately $3,000,000 for 1991. F-8 SEWER SEPARATION The City will aggressively work with the State of Minnesota and the legislators to assist in financing the Combined Sewer Separation Program. Equally, the Mayor and �ity Council will review the poter�tiai of refinancing the Combined Sewer Overflow Program. The criteria for such refinancing will be to assist in the stablizing of sewer rates and to assure that future users assist in paying installation costs. Refinancing criteria would also minimize sewer rate increases during the - next five to ten years. F-9 TAR INCREMENT BONDING FOR ECONOMIC DEVELOPMENT Revenue bonds are preferred to general obligation bonds for the purpose of financing the public improvement component of economic development or redevelopment programs. Projects proposed for financing with Tax Increment Bonds must meet the requirements established in the 1990 City Council adopted guidelines for the T.I.F. The use of general obligation tax increment bonding will be limited to those projects where there is a significant public purpose _ � . � �;�--�,,�a,�/�� 33 involving a City owned facility when revenue bond financing security is inadequate, and provided a contractual agreement exists with the benefitting developers of the related private taxable development. No General', Obligation Bonds will be considered as a financing source for the Tax Increment Districts without Mayor and City Council approval, and in accordance with all documents adopted by the City Council regarding T.I.F. F-10 REFUNDING OF GENERAL OBLIGATION BOND ISSUES If interest rates for general obligation bonds drop below the rates of the bonds outstanding for existing general obligation debt, the City will consider refunding allowable bond issues if the projected savings exceed issuance costs plus $50,000, and provided no significant up front cash payments are required. The calculation of savings must use present value analysis. GENERAL FUND TRANSFERS FOR THE FINANCING OF SPECIAL FUNDS Backg;round: In recent years, money from the General Fund has been transferred as financing for several Special Fund budgets. Transfers have been made for the following program areas: Planning and Economic Development, Winter Street Maintenance, Tree Trimming, Swimming Pools, Municipal Stadium, Housing Information, Utility Rate Investigation, Cable TV, Employee Picnic and Training, Joint Purchasing, Building Inspection and Design, and Alarm License Activities. F-11 GENERAL FUND LIMITS For 1991, the General Fund BUDGET REVENUE IS EXPECTED TO INCREASE NO MORE THAN SX over 1990. F-12 BUILDING INSPECTION AND DESIGN FUND BILLING LIMIT For 1991, the General Fund appropriation to finance the City Architect's general annual inspection of City owned buildings will be limited to $50,000. Payment will require a bill with a description of services provided. All design costs, incurred by the City Architect's Office for designing capital improvements to modify existing City owned buildings, shall be charged to a department's capital improvement project account. City departments do not have to pay for design costs incurred by the City Architect which exceed the preliminary estimate unless a capital � � e.,�� P' , � �=� 34 improvement budget amendment is obtained prior to incurring design cost overruns. F-13 STREET REPAIR AND CLEANING FUND Citizen requests for improvements in winter street maintenance will attempt to be met first with no extra cost solutions. Examples of these are better enforcement of snow bird ordinance and changes in deployment of snow plowing equipment. Solutions that have extra costs will be reviewed by the Mayor and City Council, and in accordance with all legal parameters which exist. SERVICE CHARGE/ASSESSMENT FINANCING FOR OPERATING AND MAINTENANCE BUDGETS Back r�ound: Special assessments and service charges are levied annually against individual properties to finance public services that benefit those properties. The primary advantage of using assessment and service charge financing is that, in theory, those who benefit from a particular service are those who pay for the service. Assessment and service charge financing also allows for the recovery of the costs of providing public services from properties that are generally exempt from other forms of taxation. T�ao disadvantages associated with assessment and service charge financing are its disregard for the property owner's ability to pay the assessment or service charge, and the negative cash flow resulting from collecting the assessment or service charge after the service is provided and all costs have been incurred by the City. In recent years, street maintenance, tree trimming, ar.d Tcwn Square Park opera�ing and maintenance services have been financed with annual seraice charges, general fund, or CIB dollars. While street sprinkling costs have been collected since the early 1900s, property owners have been annually charged to cover 60% of the cost of summer street maintenance, in a six category service level program, since 1973. A recent history of the rates charged per foot of street frontage for residential street maintenance service category is: 1980 1981 19 2 1983 1984 1985 1986 1987 1988 1989 1990 .44 .SO .78 .77 .65 .65 .69 .82 .92 .94 .97 F-14 GENERAL �UIDANCE FOR ASSESSMENT AND SERVICE CHARGE FINANCING FOR OPERATIONS It is appropriate to use assessment and service charge financing only for City services where direct benefit and the cost of providing the � ' �� 35 particular service to a given property can be reasonably measured. The assessment and service charge financing will cover the total cost of the service provided, less any available revenue source dedicated to the service program and less any available General Fund contribution. The approval of assessment and service charge rates, and the operation and maintenance costs financed by assessments and service charges is included in the annual budget process. This requires that the necessary public hearings regarding proposed assessments and service charges be held by City Council prior to their adoption of the budget, F-15 STREET MAINTENANCE The General Fund will continue to finance the cost of winter street maintenance as a transfer to the Street Repair and Cleaning Fund. Beginning with the 1987 budget, a nine-year plan to recover General Fund cash advances for street maintenance totaling $4,485,067 was implemented. Beginning in 1988 and for the next seven years, the Street Repair and Cleaning Fund will repay the cash loan at the rate of $542,500 per year, with a ninth year payment of $145,067. The 1991 calendar year represents year three of the eight years. The service charges levied annually shall finance th� loan principal repayment expense. No interest will be charged. The ninth year payment will be in 1995. F-16 TOWN SQUARE PARK The annual costs of operating and maintaining Town Square Park shall be charged against downtown properties. F-17 ERTRAORDINARY OPERATING AND MAIIZTENANCE COSTS FOR INSTALLATION OF ABOVE STANDARD PUBLIC IMPROVEMENTS. Whenever piroperty owners petition for the construction of public improvemen��ts (such as street work, lighting, sidewalks and decorative streetscap�e items) which are above the City's standard design specifications, those property owners shall be charged annually for 100% of the extraordinary operating and maintenance expense associated with the installation of above standard improvements. As of 1990, the City Council adopted a new street lighting standard. As of August 1990, the Council is clarifying further the policy which will be implemented in the 1991 budge�t. F-18 SHADE TREE PROGRAM The budget for tree trimming, diseased tree removal and stump removal in public parks and on boulevards shall be financed by the General Fund. � � ��o��' 36 Tree trimming, diseased tree removal and stump removal on private property will be financed by special service fees. Tree planting will be financed by the Capital Improvement Budget. Where fiscally possible and prudent, the Tree Master Plan will be accelerated to be implemented within five years (1995) . Boulevard trees vandalized, damaged, diseased, or dead will be replaced within one planting cycle. The shade tree program does not impact the trees being planted in conjunction with the (CSSP) separated sewer program. F-19 SKYWAY OPERATIONS, SECURITY, AND MAINTENANCE The annual costs of operations, maintenance (both current and preventive) and roof replacements for skyways should be assessed or charged to the property owners of the buildings linked by the system. Additionally, a capital replacement reserve will be established and an appropriate amount charged to the property owners. The Department of Planning and Economic Development and the Real Estate Division of the Department of Finance and Management Services will recommend to the Mayor and City Council, in 1990, an assessment and annual service charge plan which meets the long term capital maintenance needs, skyway security needs, etc. , of the system. The Saint Paul Building Owners and Management Association (BOMA) and the Downtown Council will have been given an opportunity to assist in the development of such a formula. UTILITY RATES: F-20 SEWER SERVICE RATES Federal and State legislation on environmental and safety issues are mandating that the city implement new programs and/or increased service levels. The Gopher State One Call Excavation Notice System required by Minnesota Statutes Chapter 216D, has required an increased service level to mark existing sewer utility facilities and the proposed USEPA Stormwater Rules, published in the December 7, 1988 Federal Register, will mandate a Stormwater Outlet Permit and monitoring program. Other mandates may be forthcoming. The City of St. Paul should aggressively pursue appropriate federal and state revenues for the implementation and the staffing of such mandates. Sewer rates may increase at a rate greater than inflation for sewage treatment costs controlled by the MWCC and for part of the City's financing plan for separating combined sewers. The accelerated combined sewer separation program, as required by state law, is scheduled to be completed by 1995. Rather than use Sewer Availability Credits and Lake Overflow Credits to reduce annual bills for the cost of sewage treatment, the Public Works Department will use the credits to finance sewer separation projects. The sewer separation projects, when implemented, will significantly reduce the flow of sewage to the Metropolitan Waste Control Commission Treatment Plant, and thus, significantly reduce ongoing, long-term treatment costs. � � � ��-�� 37 The City of St. Paul will begin negotiations with the MWCC to establish a three-year rate adjustment formula for actual usage in prior years rather than adjusting rates annually based on estimated future use. The administration is to provide on going updates to the Council during the calendar year 1991 on the negotiation status. The sewer rates will be established annually for the Sewer Service Fund finance the debt service payments (interest and principal) on General Obligation bonds issued to finance sewer construction. Correspondingly, the property tax levies certified for those General Obligation bonds shall be cancelled annually. During the 1991 calendar year, a review of refinancing the combined sewer overflow program (to assist in stablizing sewer rates and to assure that future users assist in paying installation costs) will be conducted. The administration is requested by the City Council to continue to work on the inflow/infiltration program and lobby for financing options from the MWCC, state and federal, etc. , arenas. The City shall finance its local share of sewer construction projects primarily with revenue bonds financed by the Sewer Service Fund. Depending upon affordability the City may finance some sewer construction projects on a pay as you go basis. Background for Water Service Rates: The Water Utility Enterprise Fund provides for a potable and adequate supply of water to all customers in the service area for domestic, commercial, industrial and fire fighting purposes. The service area includes all of Saint Paul and most of suburban Ramsey County, as well as some adjacent communities. The rates for water utility service are determined by the Board of Water Commissioners. F-21 WATER SERV2CE RATES The water utility rates should finance 100% of the cost of operation, maintenance, construction, repair and debt service for bonds issued. Rates should provide for the payment to the City of Saint Paul for all direct and indirect services provided to the Water Utility. Rates should address the financing of a multi-year construction program to install a remote mettering system to reduce long term meter reading costs. The rate structure should recognize that suburban cities should pay a higher annual rate for water purchased to fairly compensate for the fact that Saint Paul customers have paid for the acquisition, construction, and repair of the water treatment plant and expanded distribution system. As drinking water is becoming a more valuable resource, the rate structure should encourage conservation through such means as water saving devices and a rates structure which discourages volume consumption. � � �r-ya-��' , . 38 The City will continue a water service rate surcharge on water sold to customers in the City of Saint Paul to finance reconstruction of local water lines that are required as part of the Combined Sewer Separation Program. The surcharge rate will be 5 cents per hundred cubic feet. The surcharge will be discontinued in 1995, when the major sewer construction is completed. Background for Franchise Fees: The Saint Paul City Charter requires that "Every corporation or person exercising any franchise in, over, under, or upon any of the streets or public places or elsewhere in the city, shall pay to the city a franchise fee in a sum equal to at least five percent of the gross earnings derived or accruing from the exercise or enjoyment within the city of the franchise. . . . " F-22 FRANCHISE FEES The City of Saint Paul shall maintain the following franchise agreements: 1) Northern States Power Company with franchise fees ranging from 6.SX - 8.6% depending on class of usage and requirements of state law. 2) District Energy Inc. , Saint Paul with an 8.7X franchise fee and a deferred payment schedule. Franchise fee on Empire Builder being paid on a current basis. 3) Energy Park Utility Company with an 8.7% franchise fee. 4) Norenco Steam Line Permit Agreement with payments escalating annually until June 30, 2001 beginning with $260,000 in fiscal year 1989- 1990. (Past due amounts were settled by a lump sum payment of $500,000 on or before June 30, 1988) Council File Ordinance No. 17567, adopted May 31, 1988. 5) Continental Cablevision with a 5% franchise fee on gross revenue. The Mayor shall recommend to the Council closure on the five-year evaluation prior to the 1991 budget adoption. Pursuant ta the energy system franchise and the district heating franchise, the City collects $15,000 from each of the franchisees which is to be used for payment of part of the annual salary of the individual appointed by the City Attorney whose activities are reasonably related to the regulation of those franchises. During 1991, the administration will review the possibility of increasing the annual franchise figure. FEES FOR RESPONSIVE SERVICES: Background: It is appropriate City policy to set fees to cover up to 100% of the cost of service delivery, unless such amount prevents an individual from obtaining an essential service. Fees or service charges should not be established to generate money in excess of the cost of providing service. In some instances, . ' , � ��a��P' 39 City Council may deem it appropriate to set fees at a level below the actual cost of service delivery, if they determine it to be affordable public policy. F-23 BIISINESS LICENSE FEES Criteria for business license fees are as follows: 1) Fees for licenses and permits should be set to cover costs of administration and enforcement unless there is an express policy decision approved by the Mayor and City Council to subsidize costs. Fees should be ad�usted annually. 2) Fees collected should be credited to the department, division or office doing administration or enforcement according to actual budget needs. 3) The License Division should take action to ensure that all businesses required by law to get licenses obtain them. F-24 PARAMEDIC FEES The Fire Department will maintain fee structures which recover all costs associated with providing paramedic services. A basic transport fee will be charged whenever an individual is transported to a hospital. An advance life support fee will be charged when paramedics provide specialized emergency care. There may be a fee charged for non-transport services. Fees will be adjusted annually, and collection will be sought through insurance companies and through other third party payors, such as Medicare. The collection of fees for uninsured persons will be based on ability to pay. F-25 PARKING MF�TER, LOTS, AND RAMP RATES Parking m�ter rates should be increased after analysis indicates revenues from the change will cover costs within six months. Rates should be consistent with the Downtown Parking Plan. The hourly, daily and monthly contract rates for City owned parking facilities should be adjusted annually to reflect the market place prices determined by the privately owned parking facilities. Annual fee adjustmenCs should relate to the objectives of the Downtown Parking Plan: development incentives, space availability, business promotions, and traffic control. The issue of providing flexibility of rates in regard to other developmental goals should be studied. , ' , �,�9p'�� 40 All parking lots and ramps should meet the security and lighting standards set by the City Council in 1989. License renewals should reflect light and security measures for each parking lot and ramp. F-26 SWIMMING FACILITY USE FEES The fees charged for the Oxford Indoor Swimming Pool should generate the maximum annual revenue for the facility. The General Fund budget may subsidize pool operations, if money is available and Council approves the subsidy. Otherwise a reduction in pool hours and maintenance will be necessary. The fees charged for the City's three outdoor swimming pools should cover all costs for normal summer weather operation. If summer weather is cooler than normal, the General Fund budget may subsidize operations, if hours cannot 1�e reduced. F-27 RECREATIONAL ENTERPRISES: FEES FOR SERVICE Fees charged for the Municipal (Adult) Athletics Program shall cover all program costs plus their fair share of field and facility maintenance at sites used by the Program. Fees charged for use of Municipal Stadium should generate the maximum annual revenue for the facility. The General Fund budget may subsidize stadium operations if money is available and Council approves the subsidy. OCherwise, a reduction in stadium hours and maintenance will be necessary. Fees charged for the use of the Watergate Marina shall, as a minimum, cover operation, maintenance, and repair of the existing facility, and repayment of cash advances from the General Fund. Fees may be increased to fir.ance debt service on revenue bonds if they are issued for the expansion of the facility. Fees charged for all other recreational activities administered by the Parks and �ecreation Division should cover 100X of the direct program costs, and when the market price will allow, 100% of indirect costs such as facility maintenance and program administration, unless there is explicit clirection from the Mayor and City Council to approve a subsidy for specific programs. F-28 FEES FOR OBTAINING GOVERNMENT DATA Pursuant ,�to the Minnesota Government Data Practices Act (M.S. c. 13) and unless ot;herwise provided for by Federal law, State Statute or rule, fees for obtaining government data shall be determined by departments based on the costs of providing such service. Fees shall not be charged for �z� ` �� . � � 41 for the proposed enterprise mustSPecial rate or a commercial rate. market ana�.ysis and identify a t budget must provide for operatic�age basis. The Flat Rate shall e construction and repair, and del�uested records, documents, e current Flat Rate is 25 cents per the cost of providing data exceeds F-32 DEPOSIT OF' REVENIIE INTO FUND ��des actual costs of providing data, Al1 fines, , fees and revenues gen for, retrieving, compiling, activity/f�Znd where costs for ensted data. management—is incurred. Al1 rec'vernment data may not be charged for deposited with the City Treasure. within 24 �ours of receipt. The�nd retrieving data. The costs o and reportlsignificant exception�a cannot be charged to the Council. , ;,ity n►aY �eri edataewhi h hasf ee in over REVENUE SOURCES SHARED BY MORE THAN Ol��ula, pattern, data base or system ture of public funds. BackQround: ate (i.e. , the actual cost of art of harge which reflects all or p Various federal and state revenues andrectly to the data. than one City fund. The split depends where authorized spending is budgeted Form" has been designed to use of the revenue source. Whenever p;ing and collection °f i986 outlines declining revenue source to finance ca"eQS dated November 1, used to finance an operating budget, i�) either project �dministration or impro• operations. ' F-33 COMMUNITY �pEVELOPMENT BLOCK GRANT�inance should be set �t� T�svel to SERVICE PROGRA1�fS trative costs of the p g Beginning in 1989, the City began money for l�uman services delivery. entitlement from the federal govexNON-CITY RESIDENTS projects amd redevelopment prograa written Budget; another portion of the ent�lic Health services, es/municipalities will be established Fund for project administration, p� ree to contract activities, and housing informatid• If they do not ag her fee for the budgeted for eligible human servic1ts Taay be charged a hig 1989 Administration 20.0X Capital Projects 72.SX QUIREMENT Human Services 7.SX a business plan financed by user fees, TOTAL 100.0% � �� =i�2�' � 43 The amount of CDBG revenue to be transferred from the PED Operations Fund to the Housing Information Office Fund in 1991 shall at least be equal to the percentage of the total entitlement that was budgeted in 1990 for the Housing Information Office. If other City funds provide direct support services for CDBG activities, they shall be reimbursed through a contract for service agreement financed from the PED Operations Fund. F-34 COUNTY AID FOR ROAD MAINTENANCE County Aid for road and bridge maintenance received from Ramsey County shall be budgeted at 60�C for construction projects in the City's Capital Improvement Budget and 40% for maintenance activities. Of the maintenance money received, 25Y shall be budgeted in the General Fund for the Traffic Program and 75% in the Street Repair and Cleaning Fund ��225 for the Street Program. � The Budget Office and Public Works Department shall study, with the Ramsey County Public Works Department, alternative financing formulas and service delivery metho�s for maintaining county roads and bridges in Ramsey County. Recommendations for change shall be proposed to the Ramsey County Board and the Saint Paul City Council by January of 1991. F-35 HOTEL-MOTEL TAX DISTRIBUTION: PROMOTE SAINT PAUL Background: Current Minnesota State law allows the City to impose a lodging tax of 5%. A 5% tax is levied against hotel room rates with fifty or more rooms. A 2Y tax is levied against hotel room rates with less than fifty rooms. The law requires the City to dedicate 25y of the 3% tat to debt � service on the Civic Center bonds and 95% of the 2% tax to fund a convention bureau to market and promote the City. The City has discretionary use of 75% of the 3� tax and SY of the 2% tax. From 1986 through 1990 the City had an agreement with the Saint Paul Convention Bureau, Civic Center Authority, and the Downtown Council for distribution of the discretionary portion of the hotel motel tax. The City's General Fund received SO% of the 3% tax and S% of the 2% tax. The City wishes to increase the 2% lodging tax to 3y. The City will propose this increase as a part of its 1991 legislative package, and will be dedicated to the Convention Bureau. The City also wishes to renegotiate a distribution of the discretionary portion of the hotel motel tax. The highest priority for use will be for those activities that attract people to Saint Paul. These activities will include tourism, recreation, shopping, eating, entertainment, new retail, businesses, and workers. Promotion should include all areas of the City. By January 1, 1991, the City will sign performance based contracts with organizations who agree to carry out these promotion activities. Objectives and evaluation criteria will be clearly specified . � , � �y��Y � . . 44 so the City can annually reevaluate the effectiveness of the organizations in carrying out promotion activities. F-36 MUNICIPAL STATE AID Municipal State Aid received from the State of Minnesota shall be budgeted at 75% for construction projects in the City's Capital Improvement Budget, and 25X for maintenance activities. Of the maintenance money received, 25% shall be budgeted in the General Fund for the Traffic Program and 75% in the Street Maintenance Fund ��225 for the Street Program. F-37 PARKING METER REVENt1ES AND PARKING FINES All parking meter revenues and the City's SOX share of parking fines shall be deposited in the Parking and Transit Fund ��130. After the payment of City Council authorized parking and transit related expenses, the balance of the revenues will be transferred to the General Fund for property tax relief. For 1990, this amount is $495,704. For 1991, this amount is estimated to be $660,000. F-38 TRUNK HIGI�WAY MAINTENANCE 25% of the Trunk Highway Maintenance Aid received from the State of Minnesota shall be budgeted in the General Fund for the Traffic Program and the reraaining 75% shall be budgeted in the Street Repair and Cleaning Fund ��225 for street maintenance. Negotiations shall begin with the State of Minnesota for the City of St. Paul to obtain maintenance funds for l_ocal streets identified as trunk highways or regional roads maintained entirely by the City of St. Paul. GRANT REVENUES AND MANDATED PROGRAMS: Back rt� ound Depending on resources and program objectives, limited grant monies from federal, state, and county goverrunents, and from private foundations, organizations and individuals are available at various times to finance eligible capital projects, and program operation and maintenance. Grant monies available for capital projects will often require a long term City commitment to finance ongoing operation and maintenance expenses. Grant monies available for operation and maintenance will often require that the City finance the related capital improvement. Both types of grants then, may require a match of local resources. . � . �yo-i�1� � , � ., . 45 F-39 APPROVAL OF GRANT APPLICATIONS REQUIRED BY CITY COUNCIL Before any City Department, Office, or Division submits a grant application for a capital project or for services to any government agency, or private foundation, organization or individual, the application must be reviewed by the Mayor and approved by City Council Resolution. ' The application must identify the immediate City budget ramifications and long range cost impacts. For all gra�t awards made to the City, a Council resolution must be passed accepting the terms and conditions of the grant award, before acceptance of any money by the requesting City Department, Office, or Division. Also, the City's budget shall be amended by Council resolution to approve a financing and spending plan for the grant program at the time of approval of the grant award. An estimate of future years financial obligations, once the grant has been terminated, shall be identified on the resolution. F-40 LONG TERM OPERATING AND MAINTENANCE COST INCREASE No grant applications shall be made for new City facilities if they result in additional operation and maintenance expense, unless a new dedicated revenue is made available to finance those ongoing costs. F-41 MARIMIZE GRANT FUNDING FOR MANDATED PROGRAMS Whenever the City is required by Federal or State legislation to provide new or expanded services, every effort will be made to maximize Federal and State grants and aids to finance the required service delivery. F-42 HARRIET ISLAND The City should aggressively pursue federal, state, and regional park funds for the reconstruction of Harriet Island as it continues to be a regional facility. Also work with state and federal legislators in procuring such funds. . . �'�-9e�-�� 46 SPENDING AND SERVICE LEVEL POLICIES The following policies will guide decision making for spending and service levels. The policies relate to service delivery to residents, services contracted with non-profit organizations and spending for organization support services, increased productivity, cost avoidance and revenue generation. Back r�: The objective for City spending of taxpayers money is to produce results which positively address both short-term and long term needs of the residents of Saint Paul. While decision making for and regulation of service delivery cost money, the primary focus on spending is the production of a "street level" result which addresses a need which is deemed to be for the common good of the community. Spending for organization support services compliments the production of "street level" results. - SERVICE DELIVERY TO RESIDENTS: S-1 SERVICE PROGRAM ANALYSIS AND PRIORITIES All City services will be annually subjected to cost savings analysis. All City services will be in accordance with the budget goals and policies for 1991 and will be expected to complete or exceed all goals and objectives enumerated in the 1991 adopted budget. Al1 City services and contracts for services will be annually subject to analysis based on the following criteria: - Responsiveness to citizen needs and requests; - Job performance star_dards; - Good management practices (Policy B-12) ; - Productivity; - Cost Analysis; - Efficient and effective budget practices; and - Use of volunteers. S-2 SERVICE LEVEL RETRENCHMENT FOCUS If General Fund financing sources are not adequate to maintain all existing services at current levels. City services within the following , categories will be considered first for reduction, reorganization or elimination: l. Services which are the primary responsibilities of another unit . . ��' 47 of government. 2. Services provided by contracts for services with non-profit organizations, when the service provided is not consistent with the City's mission. 3. S�rvices provided at decentralized sites, when citywide a�ternatives are available. 4. O�ganization support services, when they will not adversely affect "street level" service. S-3 BASIC LEVEL OF SERVICE FOR LIBRARIES AND RECREATION CENTERS The closing, reduction of staff or hours of operation at recreation centers and libraries will not be acceptable as a cost saving measure. These basic services to the public will, at a minimum, be maintained at their current levels. The operating Department will continue to seek alternative and creative ways to increase the level of service provided. S-4 LIBRARY MATERIALS BUDGET The amount of spending authority for purchase of library books and materials will be annually adjusted to keep pace with the Consumer Price Index (CPI) . This is to insure the quality of the materials collection is not diminished due to inflationary factors. S-5 REQUIREMENTS FOR SERVICE LEVEL EXPANSION Unless mandated by state or federal statutes or laws, expansion of an existing service program or addition of a new service program shall be , considered only when a new revenue source other than property taxes can support all of the ongoing costs, or, when the requesting department can identify an existing service which can be reduced or eliminated. The Mayor and City Council will review service programing and estimate the future years financial obligations. S-6 RIVERFEST ENTERPRISE Riverfest, an annual entertainment event sponsored in part by the Parks and Recreation Division, shall be budgeted as a Special Fund Enterprise with a separate activity to isolate costs and revenues. _ The City Council wishes to review the results of the previous year's event, review a profit/loss statement for it and the draft contract for services for the following year's event before Parks and Recreation Division enters into a contract. By Council Resolution, the City Council is in the process of reviewing policy governing the expenditures of profits from the event. Until that � a�/�� 48 policy governing the expenditures of profits from the event. Until that review is completed (prior to the 1991 budget implementation) , profits from the event should be spent on community festivals and other community needs only as designated by City Council resolution. There will be no General Fund contribution to support this enterprise activity. S-7 WATERGATE MARINA ENTERPRISE Watergate Marina is a City of Saint Paul owned facility on the Mississippi River which provides harbor services to recreational boat owners. The budget for operations and maintenance shall be prepared as an enterprise activity. The General Fund will not subsidize operations unless there is specific approval by the Mayor and City Council due to an emergency. ,-- S-8 YOUTH FUND Chapter 404.10(6) of the Saint Paul Legislative Code authorizes that 10% of the proceeds received from gambling activity be granted to eligible recipients on the lis� established pursuant to Section 409.235. In lieu of contributing directly to eligible recipients, proceeds may be contributed to the City's Youth Fund which will remain in existence and disburse the money to eligible youth-serving organizations. Staff costs for administering the program (Parks & Recreation) and for auditing the use of money for public purpose (the Accounting Division) will be financed in the general fund budget. The Mayor and City Council will evaluate this program annually. CONTRACTED SERVIC�ES WITH NON-PROFIT ORGANIZATIONS S-9 CIVIC NON-PROFIT ORGANIZATIONS The City provides some services through contracts with non-profit organizations. The City will annually appropriate money in its budget for Civic Non-Profit Organizations. The amount of the appropriation will increase or decrease depending on the City's current financial condition, but in 1991 will not exceed the 1990 budgeted allotment. No organization is guaranteed funding in any given year, irrespective of a prior history of receiving support. Contracts may be provided for financial support, planning assistance, multi-program coordination, data sharing and grant application assistance. . ��yo-i/��" 49 The City Council will make funding decisions based on the following principles: . 1) Funding decisions and contract terms will be based on City Council policies and priorities; 2) P�eservation of support for health centers by leveraging Ramsey County', funds for these programs will be among the Council's highest priori�ies for 1991; 3) The City will fund services that are supplementary or complementary to existing City services, and will consider which services can be provided more effectively or with less expense if they are retained in the non-profit sector rather than provided by the City; 4) The City will support programs which work in partnership with other governmental bodies, non-profit organizations or private sources of funds in order to leverage other investments and encourage cooperation in the provision of services. City staff shall provide a uniform application form and shall make information freely available as to the funding schedule and policy guidelines established by the Council. The Council shall develop a plan for evaluation of performance of non-profit organizations under the terms and conditions of the grant. The City Council will refine direction of the COPP in 1991. 5-10 CITIZEN PARTICIPATION The City provides operating funds for seventeen Citizen Participation , Districts which have been recognized by City Council through a recognition process established by resolution in 1975. These runds provide support for District Council personnel, office, supplies and neighborhood communication. There is a federal requirement for a citizen participation plan. Because the City's federal Community Development Block Grant continues to be reduced and because federal requirements for formal citizen participation processes change, it is necessary to annually determine the level of General Fund dollars available for citizen participation. There will be no reduction in spending for communication activities (Early Notification System) . Spending for community organizers and staff support of District Councils will be measured against the need for and availability of other established service priorities in the City. , Contracts-for-Service will be required with each District Council, with measurable goals, policies, and a work plan. Equally, each District Council will be expected to provide a forum for land use activities that are in keeping with the spirit and intent of the 1970's directive of the Federal Government. District Councils should be aggressively marketing their grass roots image and actively seeking fund sources other than government units. . . ��_,��' So The City shall provide funding for District Councils based on a calendar year, and not the federal fiscal year. When periodic reevaluation of the basis of funding for District Councils occurs, per capita basis funding should be considered for refining formulas, as well as other funding options. S-11 ENERGY RESOURCE CENTER FINANCIAL SUPPORT City financial support for part of the operating costs for the Energy Resource Center for 1988 shall be no more than 80% of the amount appropriated in the 1987 adopted budget. The City will gradually reduce its level of operating support by 50% over the next five years. � As in 1990, 100% of this activity's financial support for 1991 will come from N.S.P. revenues. The City's budget will serve as a pass-through mechanism for the revenues. MANDATED SERVICES, SPENDING FOR SUPPORT SERVICES, INCREASED PRODUCTIVITY, AND REVENUE GENERATION: 5-12 AJTOMATION AND INFORMATION SYSTEMS SUPPORT The major functions of Citywide Information Services are to design and implement Central support systems and to facilitate planning for and control of departmental systems. This is consistent with the mission of CIS as listed in the City's Administrative Code, Section 5.08. Therefore, the budget for CIS shall remain in the General Fund. The funding resources for designing, purchasing and running software , programs which serve only the affected department shall be appropriated in thaz department's budget. Since Citywide Information Services Division (CIS) provides some measure of support to each City department in the information systems arena, it has the lead role in guiding and monitoring implementation of the Citywide Information Services Master Plan as developed with the guidance of Public Administration Service (PAS) and Public Technology, Inc. (PTI) and refined by the Information Systems Policy Advisory Group (ISPAG) in March, 1989. Based upon the Master Plan, CIS has responsibilities in the following areas: - Implementing distributed processing. , - Providing citywide data base management and network management support to distributed processing. - Providing support to departments and offices in developing their own departmental/office information systems plan. - Continuing development and support of core administrative systems automation projects: - Support to the Information Systems Policy Advisory Group . . /�,",-f4�/�� U 51 (ISPAG) and its committees. - Microcomputer and Local Area Network training and support_. CIS's role began in 1989 to change from one of producing systems that automate existing routine, manual functions to a role that creates access to information at many levels for decision-making about municipal government service delivery. It is estimated that this transition process will be fully phased in by 1995 and will require greater involvement by the City's senior management team in both recommending central information service priorities and in establishing interdepartmental information system policies and procedures. In order to begin this transition while continuing to meet existing automation obligations, additional staff and equipment resources for CIS were recornmended in the Master Plan. These resources would provide for: - A technical services function - A systems and programming function for developing and maintaining automation systems - Implementation of a new-techniques/new-technology to be used in the division - Consultant support to provide assistance directly to departments for preparing departmental Information Systems Plans, which are to be maintained and updated by departments pursuant to the guidelines of the Information Systems Policy Committee. Finally, the City will invest no further in creating new controlled-environment computer rooms nor in expanding/updating existing computer zooms. Computer machinery acquired will be office-environment technology or will be located in the Citywide Computer Center in the Public Safety Annex, thereby taking advantage of existing computer-support capability at that location. 5-13 OTHER COMN:iTNICATIONS TECHNOLOGIES The Department of Finance and Management Services shall continue to study and make recommendations regarding the use of cable communications for City service delivery. Citywide Information Services Division proposes continuation of CENTREX/CENTRON Customer Management System (CMS) through the life of the 3-year City, County and Medical Center CENTREX Rates Stabilization Agreement, which was renewed in May 1990. CMS, which Citywide Information Services tested in 1990, provides for cost-free telephone line-swapping and cost-free reassignment of pooled CENTREX features on the City's 1300 CENTREX lines. This flexibility will be important to _ the City during the renovation of CHCH. The cost of CMS, at $0.25 per line, and of the features pool, should be budgeted in the CIS 01115 activity. . . C/C yp'�y�p' s2 S-14 SPENDING FOR CABLE COMMUNICATIONS SUPPORT By ordinance the Office of Cable Communications (OCC) has the lead role in overseeing the Cable TV franchise and stimulating creative use of the cable system by elected officials and staff. For this reason, franchise fees should be allocated to adequately support both the OCC and the City Council Cable TV staff. In 1989 and 1990, it is estimated that the cable franchise fee will finance cable-related equipment purchases for General Fund activities. Citywide Information Services (C.I.S.) will be responsible for the preparation and administration of the Master Plan for Video Facilities. Equipment purchased for operating department budgets must be consistent with the Master Plan for Video Facilities. CIS shall provide for a comprehensive evaluation- of the first five year's performance of Continental Cablevision. The evaluation shall determine how well the terms and conditions of the franchise agreement have been met. This five-year review will be submitted from the Mayor's office to the City Council before the 1991 budget adoption. The 1991 budget will reflect Council adopted policy direction for the cable operations of the City. 5-15 CONSULTANT USAGE Any office, department, or division will submit to the Mayor and City Council all requests for consultants prior to RFP's being submitted for bid. Prior to June 1991, an indepth review by the administration on the use of consultants will be submitted to the Council. The review will focus on retraining and retooling of City employees to minimize the use of consultants. (This should be done in-house without the use of , consultants) 5-16 TRAINING AND DEVELOPMENT The Training and Development Division of the Personnel Office shall continue to plan for, coordinated and evaluate training activities that cross all City departments and offices. The Training and Development Division will bring together the City resources needed to implement the training and will coordinate all efforts with appropriate departments and offices. The Training and Development Division shall coordinate closely with the , Personnel Office's Organizational Development function to provide development and management support services for departments and city administration in: - Solving training and development problems - Facilitating performance improvement efforts . . ��90 - ��' 53 5-17 OCCUPATIONAL HEALTH AND WELLNESS PLAN Provide adequate budget resources in order to develop and implement the City's Occupational Health and Wellness Plan which describes citywide efforts in health promotion, health screening, physical fitness opportunities, OSHA compliance, the employee assistance program, health care coverage and pre-employment physical standards. 5-18 RISK MANAGEMENT COORDINATION Through performance contracts with individual departments, offices, and divisions, the Risk and Employee Benefit Management Division provides management and planning services necessary to coordinate Citywide identification, measurement, treatment, and cost benefit financing to reduce risks due to accidental loss and to reduce lost productivity. More specifically, the Division will: 1) Coordinate the development of City programs necessary to reduce the financial impact of accidental losses. 2) Foster a safer, healthier work force and work environment. 3) Increase employee productivity through loss control programs. 4) Support managers and employees by providing direct management, planning, and reporting services. 5) Provide annual performance reports. 5-19 FACILITIES AND INTERNAL ENERGY MANAGEMENT The objectives of the City's Facilities and Internal Energy Management System will be to assist departments in implementing a uniform automated facility and internal energy system to be used in connection with: , 1) The planning, programming and budgeting for new improvements and retrofitting of existing facilities. 2) Day to day physical maintenance/management operations. 3) Collection and analysis of internal energy usage of the facilities in order to identify usage problems and make more effective management decisions. 4) Technical energy analysis of a specific facility improvement project as well as a cost/benefit analysis based on time/value/life theory. S) Comprehensive recycling in City offices, departments, and divisions. The imple;mentation of the objectives enables not only more effective and systematic management decisions to be made about routine and extraordi!nary improvements but play a significant role in risk management and recycling. The Department of Finance and Management Services shall work with Ramsey County to develop and maintain a comprehensive recycling program within City offices. Equally, aggressively pursue potential sources of recycling finance tools for the Mayor and City Council approval. - �yo,�vzd� 54 5-20 CITY MATCHING FUNDS APPROVED BY CITY COUNCIL Appropriations intended as leverage for revenue generation, for maintenance of existing services, for economic development or special activities, will be considered whenever the projected payback to the City is at least two-for-one. Matching contributions to federal, state or other grants will only be allowed when the service provided by the grant is determined by the City Council to be necessary and affordable. Financial impact analysis will be required for each request. Future staffing needs and maintenance needs, etc. , will be included in the financial impact analysis. All solicitations, contributions, and donations will be in accordance with the policies included in this document. - S-21 BUDGETING FOR 1991 SALARY SETTLEMENTS The City granted increases in most multi-year bargaining agreements between 1984 and 1987 that were significantly higher than the actual cost of living as measured by the Consumer Price Index for the Twin Cities area. For exampie, the CPI inflation rate for 1987 was 2.9%, while the average salary settlements, with comparable worth adjustments, was approximately 8%. In 1988, the average salary settlement was slightly under 4% (including comparable worth adjustments) , while consumer price index (CPI) inflation was 5%. Budgets for 1991 shall be prepared with the assumption that negotiated general wage and fringe benefit increases for bargaining units will be , at 2.SX and that comparable worth salary adjustments will be made in accordance with existing bargaining contracts. CPI inflation rates include the increase in health care services. Given this inclusion, salary settlements are anticipated to be less than CPI inflation if the City's share for health insurance premiums is increased. Budgets for 1991 and 1992 shall be prepared with the assumption that the negotiated total package increase will be less than the CPI, and will be through the collective bargaining process. 5-22 PUBLIC WORKS AND PARK LEVIES The administration will work cooperatively with Ramsey County to address , the possibilities of separating the City and County levies for Public Works and Parks similar to the way Library levies are separated. This may include a legislative change. . . ��yo-��- 55 5-23 MULTI-YEAR PLANNING FOR COMPAR.ABLE WORTH COMPLIANCE To ensure compliance with the 1984 Minnesota Local Government Pay Equity Act (Comparable Worth Law) , the City shall attempt to negotiate limitations to annual salary increases for those positions that have been clearly shown to be over the corridor of the comparable worth line, after allowing for the appropriate market studies of those positions pursuant to the requirements found in M.S.A. 471.993. S-24 OVERTIME PAY FOR ORDINANCE ENFORCEMENT ACTIVITIES Activity managers are responsible for implementing all policies in this document in lieu of overtime pay. Managers should be encouraged to use flextime to accommodate enforcement and recreational activities. Overtime pay for enforcement activities which occur outside of normal business hours will be included in the annual budget. Enforcement activities include noise enforcement, animal control, food inspection at community festivals, etc. 5-25 STATE PROPERTY TAX REFORM: COMPUTER ANALYSIS SERVICES For 1991 the City shall budget $120,000 in the General Government Account for computer analysis of various options to reform the State property tax system. The City shall further commence the development of a plan to establish an independent computer capability by 1992. 5-26 IMPIEMENTATION OF TRiJTH IN TAXATION LAW As mandated by the Minnesota Truth In Taxation Law of 1988, the City must pay Ramsey County government its proportionate share of preparing and mailing preliminary property tax notices to all parcels in Saint Paul. This mandate will again require the City to budget $50,000 in a General Government Account. S-27 1990 CENSUS FOLLOW-UP BY PED In 1991, various City documents are to be updated with the new information gained by the census. A work plan to update City documents to relect the census will be established. The Department of Planning and Economic Development is directed to begin preparations for a 1992 housing survey based on 1990 census data. �ya-,�,�.�' 56 5-28 STUDIES TO BE CONDUCTED IN CALENDAR YEAR 1991 (a) The City will review the feasibility of creating a Department of Public Safety, which would include both the Police and Fire Divisions under one Director. Such a review will not predetermine the positives or negatives of such a creation, but rather focus on cost savings, duplications, Charter language, union scenarios, and financing sources; as well as the positives and negatives. (b) There have been several studies on a potential merger of the Police and Fire communication systems. The City Council has not acted affirmatively on such a merger; however, the Council does believe that both communication-centers should move toward civilization of the personnel. Any civilization of personnel should take place with the appropriate bargaining units being active participants. During the remainder of 1990 and throughout 1991, the Council will review the various reports on consolidation with all effected parties. (c) The City Council believes that a Youth Leadership and Enterprise Development Program should be created to assist youth with employment opportunities. Such a program should be non-duplicative and wark in conjunction with all public, private, and governmental entities to maximize potential. The program components should be to the Council for review as soon as possible in 1991. (d) Where financially feasible, the City should identify funding sources for "gap" street reconstruction as related to the Separated Sewer Proj ect. (e) The administration is requested to work closely with the County and State officials to evaluate mass transit objectives, the funding sources, fund allocations, and LRT funding during 1991. Equally, by resolution, the City of St. Paul is on record in support of LRT along the University Avenue-Midway Corridor alignment. Further , discussions will be continuing in regard to viable alternatives for the downtown connections. (f) The City Council is aware of the valuable resource volunteers provide. With the appropriate bargaining units, and all offices, departments, and divisions, a review of volunteer services should be undertaken. Creative explorations of volunteerism should be explored while keeping strong the current volunteer pool serving throughout our City. 5-29 UNDERGROUND STORAGE TANK SECURITY , In accordance with federal laws promulgated by the Environmental Protection Agency, the City has analyzed, with the assistance of a consultant, the condition of its 38 underground chemical storage tanks to determine what corrective and replacement actions must be taken by December 1993. The Risk and Employee Management Division will continue to take the �9�� 57 necessary action to assure City compliance with Federal laws promulgated by the Environmental Protection Agency concerning underground storage tanks. 5-30 IN-PLACE ASBESTOS OPERATIONS AND MAINTENANCE PLAN In anticipation of probable regulations being developed by the Environmemtal Protection Agency in accordance with the Federal Asbestos Hazard Emergency Response Act ("AHERA") , the City should complete a more thorough analysis of its public buildings to develop an in-place asbestos management program until cost-effective removal can occur. The Risk Management Division shall coordinate the analysis, planning process and in-house training efforts. The costs shall be appropriated against the Special and General Funds in proportion to related uses. A prioritized, phased action plan shall be prepared for future implementation consideration by the City Council during 1991. SERVICE PRIORITIES S-31 DAVIS-BACON COMPLIANCE Davis-Bacon Act compliance is a requirement under all federal grants received by the City. The Davis-Bacon Act requires that all laborers employed by contractors on construction work financed in whole or in part with federal assistance shall be paid wages at rates not less than those prevailing on similar construction work in the locality. In order to help insure compliance with the Davis-Bacon Act, the following , should be done: 1. Training of managers involved in construc*ion contracts should take place at a minimum of once per year. This training is to include informing the managers of Davis-Bacon requirements and monitoring procedures. Videotape should be used for training sessions where possible. 2. Pre-construction conferences, which include informing the awarded contractor of Davis-Bacon requirements, are to be held for all federally-funded construction contracts in which Davis-Bacon applies. 3. All bidders of federally-funded construction contracts are to be , required to sign a statement, which will be submitted as part of their bid, which requires them to comply with the federal Davis- Bacon Act. 4. On construction projects where an extremely low bid is received in comparison to other bids, City Purchasing should use their judgment �9�-,�� S8 as to requiring additional labor detail from the low bidder prior to contract award. 5. Davis-Bacon monitoring forms and procedures used in the Department of Planning and Economic Development have been recognized by U.S. Department of Housing and Urban Development and the State Auditor as a model for the City of Saint Paul. All City departments are, therefore, to use the PED forms and procedures for their monitoring of Davis-Bacon. 6. Withholding of contractors' payments should be used as a method to enforce contractor compliance with the Davis-Bacon Act when necessary. 5-32 ENFORCEMENT OF THE HOUSING AND HEALTH CODES It is imperative that all offices, divisions, and departments involved with housing and health ordinances take a proactive stance in the enforcement of the same. Duplication should be minimized, coordination maximized; and above all, the neighborhoods should be positively impacted by such enforcement tactics. Sweeps should be inter- departmental, maximizing City resources, and minimizing the negative drain nuisance properties have on a neighborhood. The City Council will review tha recommendations by the 3PR Task Force during 1990 and 1991, and will adopt by resolution findings that can be implem�nted in a timely fashion. Nighttime and weekend hours must accommodate neighborhood groups. The Division of Public Health shall take a proactive role in determining needed changes in State law for property rights. Neighborhood groups such as Block Clubs, Crime Watch Groups, District Councils, etc. , will be encouraged to participate in setting priorities for the clean-up and betterment of their neighborhoods. The Certificate of Occupancy will enforce th2 Housing and Building Code equally with the Fire Code, and will take swift action to correct violations through the Housing Court. Both the Division of Health and Certificate of Occupancy will work closely with the Police, PED rehabilitation office, and the Building and Zoning Divisions to assist the neighborhoods. Vacant structures meeting the criteria of the Nuisance Ordinance will be expected to be in front of the City Council within ninety (90) days. The Housing Information Office will continue to provide housing counseling to families and individuals needing housing assitance, home ownership opportunities, or housing relocation. . � . .. ��o-��' 59 BACRGROIIND In order for the City Council to give clear policy guidance to the Administration, the following directives will be implemented by the appropriate Department, Office, or Division. S-33 FOCIIS ON FAMILIE3 DOMESTIC VIOLENCE 1. Formalize and implement new city policy which no longer uniformly bars prosecution in domestic assault cases where the.re are n� visible inj�;ries or corroborating witnesses. . 2 . Reduce rate of dismissal for domestic assault cases below 25 percent and keep accurate statistics which reflect reasons for dismissal. 3 • The City will work with the Saint Paul School District, the Ramsey County Family Violence Team and members of other organizations working to end domestic abuse and sexual violence to support education in all Saint Paul Schools to change attitudes which foster battering and sexual violence. 5-34 SERVICES FOR CHILDREN, YOIITH AND FAMILIES 1. The Department of Community Services will develop the capacity to advocate for and coordinate services to children, youth and families in a non-duplicative way, working to make city services more responsive to the needs of children, youth and families and to collaborate with other public and non-profit entities to support children, youth and families in Saint Paul. The highest priorities of this effort to advocate and coordinate services for ehildren, youth and families will be: *Encourage development of high quality affordable child care througho�at Saint Paul by actions including, but not limited to promoting neighborhood initiatives which increase child care options in short supply, lobbying for increased child care subsidies for low-income families, and providing information and assistance to child care providers so they can bett�r use City and community resources to improve their programs. � � ' � /a,—�� y�/� � (�`- 60 *Use city resources, such as recreation centers, library facilities, and staff where such resources are available, to support high quality, affordable before and after-school child care, drop-in child care and sick child care throughout Saint Paul. Structure hours and enrollment in programs and/or make space available to other public or non- profit entities to provide children with safe and supervised after school activities. *Use city resources and advocacy to support programs which prevent teen age pregnancy and which prevent youth from dropping out of school. *Support development of positive alternatives for youth recreation and socialization, such as chemical-free clubs and youth events. � *Support early childhood development and child care programs which include support for development of parenting skills. *Coordinate available city resources with other public and private entities to develop places for children and youth to find short-term refuge from family violence, such as crisis nurseries and safe houses. 2 • Initiate action to end duplication of State regulation of � child care centers. Support child care centers and work with the I state to provide health inspections and practices which protect the health and safety of children without City duplication of State regulations and inspections. Pursue contracts with state to provide services through public health nurses as approved by the Mayor and City Council. 3 . Support and encourage development of shared living ' situations that match complementary skills and abilities, i financial needs, and family needs. Examples of matches are ; persons with di�abling conditions with persons having no disabilities; single parents sharing child care and living responsibilities; and senior citizens with limited mobility with persons of low or moderate income who are fully mobile. 4 . Support development and availability of child care centers by providing low interest loans to child care providers for renovations to meet licensing requirements. Work with other organizations to provide child care downtown for City employees and other downtown workers. S-35 SERVICES RESPONSIVE TO CITIZEN NEEDS '-• Involve community members in the process of developing � � : . � .. . �,�-yv-,��' 61 schedules for neighborhood recreation centers and branch and area libraries which respond to the needs of the community, and is within budget constraints. Encourage development of volunteer support for services. Specific options which must be available to any community willing to trade off customary hours and/or provide volunteers to extend service hours should include: *Saturday and Sunday hours for recreation centers, from community centers through third tier centers, and branch and area libraries. *Evening (after 9 p.m. ) open gym hours for recreational centers. The use of the options will be at a neighbonc�ods discretion and will be in accordance with the appropriate . bargained labor contracts. 2 . Recreational centers will take affirmative steps to develop and recruit participation of girls and children of culturally and racially diverse backgrounds in sports teams and other, non- athletic recreational programs. Department staff will set objective, measurable goals to increase such participation and will report back to the Mayor and City Council biannually. 3 , Libraries will initiate programs which involve parents as well as children for whom English is a second language in programs such as story hours which encourage reading. Libraries will continue and expand literacy programs for both adults and children. S-36 HEALTH ISSIIES 1, The City will make enrollment of Saint Paul children in the Minnesota Children' s Health Plan a high priority. The City will: *Provide a condition in contracts for health care services that requires a plan to enroll eligible children in the Children's Health Plan. *Organize volunteers and other outreach activity to inform parents of the avail,ability of Children's Health Plan and other health benefits and resources. *Seek funds from other agencies to assist families in paying .fees required for enrollment in the Children' s Health Plan. *Continue outreach to parents and children to communicate the need for preventive health care, such as immunizations, � � �. . � �;�o��/��' 62 prenatal care and nutrition. 2 . Preserve core of public health services in Saint Paul that relate to proactive housing code enforcement, communicable disease control, basic preventive health and dental services, animal control and removal of blighting influences in neighborhoods. S-37 SENIOR ISSIIES 1. Support and encourage development of Block Nurse, Living- at-Home, chore assistance and other programs of neighborhood- based home health care and self-sufficiency for seniors and other persons throughout the City where there is a need for such services. 2 . Support and encourage accessibility and participation by seniors in full range of City services by providing appropriate recreational opportunities for all age levels, library services for persons who have vision or hearing impairments, and accessibility for persons with mobility impairments to all City facilities. � - . :� Cr-�y�-��' 63 BACKGROUND In order for the City Council to give clear direction to the Administration, where financially prudent and possible, the following policies shall be adopted and implemented by the appropriate Department, O�ce, or Division. S-38 POLICE DEPARTMENT - Develop and implement a City policy educating the youth of the City in the negati�✓e aspects of the use of drugs. This pclicy shall incorporate the coniinued support for the D.A.R.E. program in all St. Paul elementary schools. Other programs may include � presentations and group discussions involving the City's youth and community programs which bring the City's youth into contact with people who are currently or have in the past experienced problems with drugs. These programs can both educate the youth and provide a helpful service. This effort should be co-ordinated with the Independent School District and Ramsey County. - Develop and implemer�# an on-going training policies for police officers to assist in making them knowledgeable and prepared to encounter gang problems, problems of drug use, racial tensions, harassment of citizens, domestic and sexual assault, the gathering of evidence, etc. - The City shall maintain a policy which will provide an appropriate response time based on a priority system for calls from the Police Department. Equally the Police Department should receive review and input from district councils, including but not limited to: a. Maintaining a high�quality call-in network system. b. Providing an adequate number of officers and police vehicles. - The Police will conduct a semi-annual analysis of its level of service which will include: a. Response time b. Community relations c. Unmet service goals which need to be accomplished - The Police shall re�ognize the service levels of volunteer resources a. Determine where volunteer resources can be utilized b. Assist block clubs with training of volunteers - Where fiscally prudent, implement Police and Community Together (PACI� program using Crime Prevention Officers in each of the four Police Team areas and civifian �,� ' � �9� ��` 64 Community Crime Coordinators to increase decentralization of police decision-making, responsiveness of the police to community needs, and ability of police o�cers to work � with community groups to prevent crime. a. All departments shall work together with crime prevention officers to address problems posed by problem properties, problem businesses, gang violence and other crime and neighborhood problems. THIS SHALL NOT BE CONSIDERED ONLY A DIRECTIVE TO THE POLICE DEPARTMENT BUT TO ALL DEPARTMENTS, OFFICES, AND DIVISIONS - Continue support for Nsighborhood Crime Preveniion grants p�ogram to strengthen block clubs and other grass-roots efforts to prevent crime and prevent deterioration of � neighborhoods. - Provide high visibility patrols, using vehicle patrol as well as a walking beat to deter crime and increase the perception of security in areas targeted by police and communities working together. - Recognize downtown as a neighborhood in determining patrol strategy #or streets and skyways. S-39 FIRE DEPARTMENT - The City shall maintain a policy which will provide an immediate response time from the Fire Department in order to do the following: a. Maintain a high quality call in network and strive to reduce response time even further to all parts of the city. b. Provide an adequate number of personnel, equipment, and locations. c. The City shall not cut the number of fire companies now in service. - The master Plan is the Fire Department's #1 priority where financially prudent. a. During 1990 and 1991, the City Council shall review the master plan and implement any aspects of this study which will be a benefit to the City. b. The Fire Department's budget shall reflect any changes to be implemented as part of the adoption of specific master plan recommendations by Council Resolution. , _ - �a:-��.��' � 65 - The Fire Department wiil analyze its level of services as an on-going activity which will include: � a. Response time b. Unmet service goals which need to be accomplished S-40 PARKS & RECREATION - Continue to develop alternative funding resources through: a. Rental for the use of �ity proaerty when not in use b. Seek Federal, State, County, and Metropoiitan Council funding c. Special events and promotions in coordination with non- governmental promotional groups: i.e. district councils, convention bureau d. Co-ordinate with the School District, Community Education, trade and college centers to avoid duplication of resources - Develop procedures which will continually provide services which meet the changing needs and wants of the citizens of St. Paul. Division staff shall meet annually with district councils, division support groups, concerned citizens, and the Park Commission to layout the upcoming year's plan for maintenance, needed financial resources, volunteer resources, and programs. These annuaf ineetings shall be held before January 31 of the upcoming year. - Enhance program delivery service through use of volunteer resources a. Using a FTE framework for volunteers, determine where there are shortages in volunteer hours (This would be done in conjunction with the Labor Unions and the bargaining aggreements) b. Prograrr� and maintain a system which uses volunteer services to their maximum c. Submit a plan which balances the use of volunteer services and City employees when possible thru bargaining agreements. Also identify the shortfalls in the use of volunteer services vs. City employees. d. Volunteer needs and resources shall be analyzed annually e. Study and develop a possible perk program for volunteers for review by the Mayor and City Council f. Review c�reer ladder for entry level Recreation Leaders to access other jobs - Identify new capital projects and programs as in years past with an emphasis on: a. Determining the short and long term capital budgets for these projects �and programs b. Submit the programing and maintenance needs of these capital projects and programs - . �. , ��--90'��' ss c. Conduct a 5 year analysis of capital projects and programs identifying future demands on budget, personnel, facilities and estimated reduction of services in other areas - Identify the un-used land resources in the City a. Distinguish current park land and City property which is not being used to its fullest potential b. Present the reasoning behind this lack of use c. Determine the projected costs of the use of this land d. Propose cost saving idea like: gravel trails vs. asphalt trails e. Develop plans to make the Burlington Northern Trail and Lilydale Park accessible and user friendly while holding costs for any improvements to a minimum f. Work with the County and State for the development of a complete Munger Trail - Maintain and preserve the City's public parks, open space areas, natural resources and recreation facilities - Complete planning for Harriet Island park and marina in consultation with users and district councils. Review of the Marina should be in front of the City Council in 1990. Such a review should have broad notification elements and should address the plan and the rationale of the same--including funding sources. -Complete the Como Conservatory, Como Zoo, and Como Park Renovation. Work with the County to safely remove sand bars and algea from Lake Como. This will need some legislative action and action by the Metropolitan Council. � ��o-i/� 67 OPERATING POLICIES The following Basic Operating Policies provide specific direction for preparing budgets. The policies generally relate to technical issues which impact all department and office budgets or common accounting and budgeting practices. DISTRIBUTION OF COSTS ACROSS VARIOUS BUDGETS: 0-1 ASSESSMENTS AND SERVICE CHARGES TO CITY-OWNED PROPERTY Assessments for capital improvements and service charges for annual operations to City owned property will be paid for out of Special Funds, when the £und directly relates to the property benefitting from the improvements or services, e.g. , assessments and service charges on property owned by the Housing and Redevelopment Authority will be paid for by the HRA General Fund. Assessments for capital improvements include projects such as sewer separation, above standard street lighting and street paving. Service charges include street maintenance, storm sewer system charge, Town Square Park, and County Waste Management. The Real Estate Division of the Department of Finance and Management Services will collect assessments for capital improvements and annual service charges from property owned by other units of government. The City's General Fund will pay for City-established service charges and City-initiated capital improvement assessments for City owned parks, playgrounds, open space, libraries, fire and police facilities, and for any unit of government not obligated by law to pay these assessments and charges. The General Fund will also pay the Town Square service charges for downtown churches. Assessments and service charges for City owned buildings that are leased to non-profit organizations will be paid for by the non-profit organization. Assessments and service charges for all other tax exempt property will be paid for by the owners or lessees of the property. Assessments and service charges against City-owned golf courses, swimming pools and the municipal stadium will be paid from Special Fund budgets. If enterprise revenue is insufficient, a General Fund contribution can be requested by the Mayor and adopted by the City Council. BackQround for Celntral Service Cost Allocation The allocation of central services cost is intended to distribute proportionately all costs of a service. This allocation procedure is applied to budgets that are financed by federal and state grants, user fees and service charges. Good cost accounting practices require that these costs be distributed equitably to all funds using central services. �-.�e_ i�.�� 68 In 1979 the City entered into a contract with the consulting firm of David Griffith and Associates to develop a model cost accounting allocation system for central service costs. The model was established, and cost allocations have been produced since 1979. 0-2 CONTRIBUTION TO CENTRAL SERVICE COSTS Budget requests will reflect an estimated amount for central services cost. The basis for determining the amount for the 1991 Budget will be Saint Paul's 1987 Cost Allocation Plan. The Budget Director will consider a particular fund's ability to pay central service costs when preparing budget decision making options for the Mayor and City Council. The Accounting Division of the Department of Finance and Management Services is responsible for maintaining the cost allocation plan. Background for Fringe Benefit Charges: Since 1979 each activity budget, has been assessed a charge for the City's contribution to employees' fringe benefits. Beginning in 1983 there are no exceptions to this assessment. The fringe benefit charge is a fixed percentage of the salary dollars expended in every activity budget. The percentage is determined annually by the Budget Section. A recent history of the rates charged is as follows: Others, Others� Years Fire Sworn Police Sworn Full Time Part Time 1981 38.655 34.302 22.594 2.209 1982 40.694 34.224 23.471 2.963 1983 44.333 38.773 26.694 3.245 1984 50.572 39.533 25.750 3.469 1985 49.743 38.461 24.809 3.436 1986 50.267 39.308 25.293 3.859 1987 49.692 38.847 22.158 2.624 1988 45.749 32.669 23.443 3.259 1989 41.709 30.798 23.698 3.165 1990 38.022 25.581 24.548 4.871 0-3 FRINGE BEN�FIT RATES FOR SPECIAL FUNDS SPENDING PLANS All Special Fund budgets, except for the Water Utility , will include an estimated amount for fringe benefits based on rates developed using prior year fringe benefit and salary cost ratios. For 1991, budgets will be prepared using fringe benefit rates of: / � ` ��`/s/�� o The City has established a light duty/return to work program. In order to return injured employees to appropriate work as soon as possible the Workers Compensation section will provide all departments, the Mayor, and City Council: - Periodic lists of long term disability employees who are released to return to work but with restrictions that prevent them from returning to their job at the time of the in�ury. - A brief resume of the employees's injury, medical status, work restrictions involved and the identity of the QRC assigned. The cost of the program will be shared by the department hiring the injured employee as we11 as the department where the injury occurred. SPENDING LIMITATIONS: Backeround for Budgeting For Promotions• During budget planning, managers often propose to upgrade positions and to promote employees. Typically, a position must be audited in order to be upgraded and an employee must pass the appropriate civil service test in order to be promoted. Often, the results of these processes are not available to the manager at budget preparation time. 0-7 BUDGETING FOR PROMOTIONS AND RETIREMENTS All budgets must include appropriations for planned salary increases and retirement savings. Activity managers must estimate for their budget: (1) anticipated position upgrades and employee promotions, and (2) the replacement of expected retirements with lower paid individuals. The Budget Office shall request an appropriation in the Specified Contingent Reserve for those promotions and reclassification costs which cannot be reasonably anticipated by the Activity managers. Anticipated merit increases will continue to be included in all spending plans. 0-8 ERPENSE ACCOUNTS Expense Accounts may be established in an elected official's or Director's budget activity using object code 0528 (Expenditure from Contingent Fund) . Payment for public purpose expenses may be made from this account, according to the following allowances, once a pay voucher, signed by the elected official or Department director (a designee is not acceptable) , and accompanied by a receipt or invoice and a statement of City benefit has been submitted, Expenses of a personal nature are unacceptable. .. ` . � ��.�o ��,��' �� In a City Attorney opinion, public purpose has been generally construed to mean ". . .such an activity as will serve as a benefit to the community as a body and, at the same time, is directly related to the functions of government. " In addition to elected officials, the Council Research Director and Directors of Community Services, Finance and Management Services, Fire and Safety Services, Planning and Economic Development, Police, and Public Works; along with the Executive Assistant to the Mayor, the Deputy Mayor, the Budget Director, the City Attorney, the City Clerk, the Personnel Director, the Director of Human Rights, and the Managing Director of the Civic Center and Water Utility may be eligible. Up to $2,000 will be allowed per official per year. When employees are not traveling out of town, meal expenses will generally not be allowed. Payment or reimbursement for local professional or civic organization lunches, meetings or seminars where the topic is related to the function of the Director will be allowed. Reimbursement for business meals will be allowed, in accordance with the Runzheimer Index, when business cannot be done at an alternative time. The Director will be responsible for determining the benefit to the City, and specifying the public purpose in writing. No payment will be allowed if only City employees are present. Reimbursement for coffee and pastry for department head meetings is permissible if City employees are present. The Director will be responsible for determining the benefit to the City, and specifying the public purpose in writing, including copies of minutes kept. Contributions up to fifty dollars to City employee recognition and retirement commemorations on behalf of the Director will be allowed when he or she is representing the City. Payment or reimbursement will be allowed of up to fifty dollars for flowers and other token gifts for well wishes and sympathetic greetings for employees. Payments for the following items are specifically disallowed by this policy: alcoholic beverages, membership to a private club, expenditures budgeted for in other line item accounts; including but not limited to professional association dues not required as a condition of employment, furniture or office supplies and transportation expense. 0-9 MAYOR'S EXPENSE ACCOUNT The Mayor may establish an expense account in the Mayor's Office budget activity using object code 0528 (Expenditure from Contingent Fund) . Payment for' public purpose expenses may be made from this account, according to the following allowances, once a signed pay voucher and accompanied by a receipt or invoice and a statement of City benefit has been submitted. Expenses of a personal nature are unacceptable. In a City Attorney opinion, public purpose has been generally construed to mean " . . .such an activity as will serve as a benefit to the community as a body and, at the same time, is directly related to the � � �yo��y��' . . �2 functions of government.". Up to $5,000 will be allowed and may be used for gifts for visiting dignitaries and officials, gifts for designated sister cities, entertainment, lobbying expenses, travel, speeches and any other type of expenditure which has public purpose similar to expenditures in the adopted budget with a maximum of $200 per gift. 0-10 FAIR LABOR STANDARDS ACT OVERTIME PAY Departments must plan enough spending to comply with the Fair Labor Standards Fict (FLSA) . FLSA became binding on public employers in 1986 and regulates minimum wage and overtime benefits for employees. In regards to overtime, the act identifies who is eligible and guides how a rate is set and computed. Background for Travel and Training Expenditures: By attending national conferences, City staff stay informed of developing technologies; maintain communication links with their counterparts in other locations; learn of, and transfer successful operating methods to Saint Paul; analyze and compare many national equipment and service vendors in one location, and receive specific training not available elsewhere. However, there is a need to balance the value in having City staff attend national conferences with the cost of sending them to out-of-town locations. 0-11 OUT-OF-TOWN TRAVEL Department and Office Directors will limit the number of employees attending the same out-of-town national conference. The following factors should be considered if more than one employee is authorized to attend: 1) An employee is willing to pay for a portion of the travel expenses; or 2) The employee holds an elected or appointed position with the national organization involved; or 3) The employee has been invited by the national organization to participate in discussion panels, seminars, etc; or 4) The employee is required to attend because of state or federal grant rules; or 5) The employee will learn about useful new developments and products most effectively and efficiently by attending a national conference when the information is not available locally-; or 6) There remains a specific line item in the budget to accommodate the expenditure. r - • �1�� ' ,• r 73 City managers should encourage their employees to participate in local conferences. 0-12 PARRING ERPENSE REIMBURSEMENT � Mileage allowance for elected officials shall be set by Council resolution'. The Mayor and the Directors of the Police Department, and the Fire and Safety Seri,�ices Department shall have a City owned car provided them because they are on call for service twenty-four hours a day. The following Directors shall be required to use their personal cars for City business and thus shall receive mileage and a $105.00 per month parking expense reimbursement: Budget, Deputy Mayor, City . Attorney, City Council Research, City Clerk, Civic Center, Community Services, Executive Assistant to the Mayor, Legislative Aides, Finance and Management Services, Human Rights, Planning and Economic Development, Public Works, Water Utility, and Personnel. .. 0-13 REPAIR OF POLICE AND FIRE VEHICLES INVOLVED IN ACCIDENTS Departments should annually budget for routine and ordinary maintenance - of vehicles. Expected estimates for repairs of vehicles involved in accidents should be offset by the estimated revenue from insurance proceeds. The City will give insurance companies the option of reimbursing City garages for vehicle repairs rather than a private body repair shop. A private shop must meet the satisfaction of the City. - � � �y�-�� CITY OF SAINT PAUL MISSION AND BUDGET PREPARATION GOALS GENERAL FUND, SPECIAL FUNDS, AND DEBT SERVICE FUNDS MISSION FOR THE CITY OF SAINT PAUL: Ensure the provision of high quality services, which meet the people's priority needs and which enhance the long term common good of the community within the constraints of available financing sources and reasonable taxing policies. City services must: be responsive to citizen needs and requests: produce effective results that are measurable and quantified; be delivered efficiently, in a manner which is both timelyy-a�� courteous, and cost effective; be in conformance with applicable laws; s� be delivered within the context of high moral and ethical --��standards:- foster neighborhood livability. assist in job trainin�job creation. and job retention: and involve citizens in the decision making process. Service delivery �� includes those which provide public safety, health and general welfare. '"��Services �e�2 are to strengthen all the neighborhoods as places to live, work, play, be educated and raise families A-��e�ai��_,�1 s�_r�_:r:==-----• City employees �e are essential to the -�-~�.� delivery�rg of quality -o=---- s e rv i c e s-�._r�e�-e�rs��g-��e-s�te�es s-�tr�--a��s�i�ex� n f P a r ah 7 ;ah a rl o�A 1 q, �°°��. The City is committed to providing a quality work place and quality services to the citizens. business community, and employees of St. Paul ��1p_iy�� 2 GENERAL BUDGET GOALS: GG 1 Maintain the fiscal integrity of the City's operating, debt service and capital improvement budgets in order to provide services and to construct and maintain public facilities, streets and utilities. __ GG 2 Maintain a responsible and prudent fiscal condition and high bond rating in order to minimize long-term interest expense when financing capital improvements with an ongoing systematic bonding program which spreads the cost of the improvements to benefitting citizens. GG 3 Prepare and annually refine written goals�-e�� policies, and job and performance standards to guide the preparation of financing, spending and �°°��activitv plans for the City budget. GG 4 Coordinate decision making for the capital improvement budget with the operating budget to make effective use of the City's limited resources for operating and maintaining facilities. Require departments. divisions. and offices to preQare life- cycle maintenance plans as nart of operating budget. GG S Present budget data to citizens. City managers� and elected officials in a form that will facilitate annual budget decisions based on a multi-year strategic planning perspective. GG 6 Prepare and evaluate activity performance plans that relate to financing and spending plans in the a�a� City budget. GG 7 Encourage citizen involvement in the a�e� budget decision-making process through public hearings -�~-' :~F-°-~�, �g• , , '�..-: , :,Fe-flae�sge�te-� e€-��r�ge�€e�--FFe-s-�e�a�*� °- ....��-�Tm��-�age�rs--�e s�3e�rs-i��e-€e�-�#e-e-�eetr�rar�€ � , � . �ya-��`�� 3 SERVICE LEVEL GOALS: SG 1 Budget decisions to increase a service level or add a new program will be financed with either a new revenue source or �ax increase, or by a deliberate reduction in, or/elimination �f existing services. Base decisions to reduce service levels or eliminate programs on citywide priorities and needs if revenue sources are fnadequate to maintain existing services at current program levels. Maintain programming flexibility to address priority user needs based on historical usage and demographic trends within service areas if a service is provided at many facilities throughout the City and a service level reduction is necessary. SG 2 Incorporate self reliance in both the day to day operation of the City and the development of its long range plans. �e�€ �e-�i-a�t 6 i-��ce�-g�es�e�tts e e��t-�e-s e�-e�s�� e-�l�e—er - - _a ....._ ---- - c,... a ��......� VL i r€e—�+to-r�s��€�ee�s e�F�e��e°" _�� , �� == ,=='-=---=' -..,__�_ _a ..�.,. a:....a__.._�..,.,.a L. 1.7� L .7 l. 1. .i l • _...1 . 0 o v � f '� �l^^ TPAT1�a nf f ni nt Rniil _ � � �== =°„o ='-- r==c-= ° °°- °° °- SG 3 Avoid duplication of services and foster positive cooveration with other units of government. Seek joint use opportunities for public facilities with both governmental units and non-profit organizations when effective service delivery can be provided at less cost �-�-�-=� to the City or enhance services. SG 4 Recognize that City employees are City government's most valuable asset, and, as such, their concerns, participation, and morale are crucial to delivering high quality, efficient services to the residents and taxpayers of Saint Paul. SG 5 Employ good management practices when planning for service delivery by including in budget requests money to pursue activities, such as: - office automation and computer applications that increase productivity; - equipment modernization; �9s�� 4 - work-flow simplification; - risk management/employee safety. and wellness; - preventive maintenance; - energy conservation; - life cycle costing and purchasing of equipment; - lease-purchase options for high cost equipment purchases which reduce operating expenses; - performance planning, reporting and evaluation; - employee training; - employee well being; - employee child care; and - competitive bidding for certain services. SG 6 Modernize the physical and organizational structure of City departments and offices to facilitate better management of resources. Create an environment which encourages innovative problem solving and pursuit of opportunities to improve service delivery within existing budgets. SG 7 Provide adequate budget resources to address the long-term program needs for essential human service delivery coordination, better neighborhoods and economic development. . �;: _ p�/�� y s FINANCING GOALS: FG 1 Finance essential City services or public services under contract which have a citywide benefit in the budget with revenue sources which are generated from a broad base, i.e. property taxes, state and federal aids, annual service charges and franchise fees. Finance responsive services (where the individual served controls the use of the service) with dedicated revenue and user fees which directly relate to the level of service provided. Minimize General Fund financing assistance to those responsive service activities which have a common good community benefit but cannot totally finance expenses with user fees. FG 2 Minimize the impact and use of property tax financing by controlling costs and by seeking alternative financing for City services which focus on user fees for responsive services and by the upgrading and/or enhancement of the property tax base and aggressive aplication for state. federal, and other f�nds as avproved by the Mavor and City Council. FG 3 Refine existing assessment financing formulas and user fee rate structures to more accurately charge the costs of service provided to the benefitting property owners and customers served, while being sensitive to the needs of low income people. FG 4 Support federal and state legislation that provides property tax relief and direct aid to cities, without reliance on regressive f�rms of taxatian. Strive to eliminate local funding of regional and state responsibilities. Oppose legislation which imposes local service mandates without federal, state, or regional funding. FG 5 Seek reform of Minnesota property tax laws to target property tax relief to cities to reduce tax base disparities, and to more fairly reduce the tax burden disparity among the different classes of property. , �< , . ��°`�.�' S BUDGET PREPARATION POLICIES The Budget Preparation Policies which follow provide specific practices to be employed during budget preparation. The policies cover planning, preparing, controlling and monitoring for issues such as multi-year forecasting, authority and accountability, cash flow, reservesi, s�-debt repayment, and job performance standards. Background: The approval of and adherence to the following budget preparation policies is a critical factor in maintaining the sound fiscal health of the City of Saint Paul. The City's fiscal integrity is a concern of the citizens and businesses of Saint Paul, of the buyers of the City's bonds and of the bond rating agencies. Therefore, policies which reflect prudence, long range planningi s�good management_, and performance standards are essential. GENERAL POLICIES: B-1 ANNIIAL ADOPTION OF COMPREHENSIVE FINANCIAL PLAN In accordance with the City Charter and State law, the Mayor shall propose to City Council, by the date set by Council resolution, a comprehensive financial plan for the next calendar year. By ��ts��September 1. 1990, the City Council must "adopt" a proposed budget and tax levy, in order to comply with the State's Truth In Taxation Law for providing budget information to the County Auditor for the preparation of a notice of proposed property taxe-g statements by individual parcel. After considering tne Mayor's pronosed budget and holdin� the required Truth in Taxation public hearine, the City Council shall adopt the annual budget no later than twelve (12) days (December 6) before the adoption date required by law (December 20)�9e�ek�e�-��. Final �property tax levies must be certified to the County Auditor by o��e�e�-�3December 20. The comprehensive financial plan for the City of Saint Paul is composed of spending, financing and performance plans for three types of budgets: operating, debt service and capital improvements. All budgets must be fiscally sound: the spending plan (expenditures and transfers-out) must equal, or be less than the financing plan (revenues, transfers- in, and use of fund balance) . . � . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v qO/�j '� �! 6 The annual operating budget is a 12-month financial plan which provides for delivery of City services; support and planning for service delivery; routine maintenance; minor remodeling and repairs of existing structures; acquisition of vehicles, mobile, mechanical and office equipment (except for the Bookmobile) ; and other activities having an estimated useful life of less than three years. Primary financing sources for the operating budget are property taxes, federal and state aids, dedicated revenues, user charges, fee income and grants. Two budget documents are prepared annually: the General Fund and the Special Funds (internal service, enterprise, special assessments and annual service charges, special revenue, trust and agency funds) . The annual debt service budget provides for the payment of interest and principal on short and long term general obligation debt. It also provides cash for payment of the following year's debt service. Primary financing sources for debt service budgets are property taxes, interest earnings and dedicated revenues such as tax increments, special assessments to benefitted properties, annual service charges and utility user charges. Revenue bond debt service for a self-supporting governmental enterprise is appropriated in the enterprise's operating budget. The annual capital improvement budget (CIB) provides for the construction or purchase of projects having an estimated useful life in excess of three years (other than the acquisition of office or mechanical equipment, minor remodeling or repairs of existing structures) . The CIB must identify all projects which are proposed to be financed with the proceeds of general obligation or revenue bonds, all aids, grants and special revenues received by the City for financing capital improvements and all monies appropriated by the City Council in the General Fund and Special Fund budgets for capital projects. The capital improvement budgat does not �inance vehicles or mobile equipment. The annual capital improvement budget is part of the five-year capital improvement program prepared annually to finance and plan the physical development and redevelopment of City-owned land, facilities and infrastructure, as well as the inducement of private development of Saint Paul's housing stock and business properties. �'`�0�/�� s B-2 TWO-YEAR BUDGET PIANNING Existing City Charter and ordinances require annual adoption of the budget. , , ity Offices and Departments shall prepare budget requests based on a two-year budget planning process in order to provide the Mayor and City Council with better and a more complete inventory of long range operation� s�d-maintenance needss and job performance. ltao-year budget planning makes transitions and shifts in programs easier to implement. The two year budeet vlanning process is currently being phased into the budget process. As of 1992. the two vear budget planning process will be imvlemented for all cit de artments o__:__r__ :_ �nnn :�e Budget 'L—P -�o--------o - Office shall prepare for the Mayor and City Council two-year spending, financing and performance plans-�Frr--��e�eg�g. . � �''�o`��' �o B-3 BUDGET AMENDMENTS DURING THE YEAR: CHARTER POLICY Annual budgets may be amended during the current budget year in one of four ways, in accordance with the City Charter: 1) Budgets can be increased by Council resolution if the Mayor certifies that there are available for appropriation total revenues in excess of those estimated in the budget. 2) The Mayor may transfer by administrative order part of or all of unencwnbered appropriation balances within a department, office, or agency_ Upon the recommendation of the Mayor, the Council may by resolution transfer part or all of any unencumbered appropriation balance from one department� office, or agency to another. 3) The City Council may by resolution adopted by unanimous affirmative vote of all members of the Council make appropriations to meet a public emergency as defined in Section 6.06 of the Charter. 4) If the Mayor reports to the Council that the revenue available will be insufficient to meet the amount appropriated, the Council shall take such action as it deems necessary to prevent or minimize any deficit and for that purpose it may reduce by resolution one or more appropriations. If the Mayor notifies Council of a revenue shortage, budget amendments may be recommended or executive authority mav be used to control spending so as not to exceed available revenues. �'�>a�� 12 B-4 BUDGET AMENDMENTS DURING THE YEAR: GENERAL POLICY 1) Use of Fund Balance as a financing source for budget amendments, should only occur when the spending plan covers one-time expenses or projects. Normally, fund balance will not be used to finance ongoing operating liabilities in mid-year budget adjustments. Mid-year budget adjustments for ongoing operating commitments should be financed with an ongoing revenue source or a transfer from another fund which has an adequate ongoing revenue source. All fund managers should strive to maintain operating reserves that vrovide sufficient financing security to ensure provision of basia services authorized in the annual budget and in accordance with the polices enumerated in this document. 2) A mid-year budget amendment must include a Fiscal Impact Analysis which includes an estimate of subsequent `�� yearis budget impacts for both spending and financing. Additionally, budget amendments via administrative order shall be in compliance with policy direction as established in the adopted budget. 3) If the Mayor reports to Council that both revenue and reserves available will be insufficient to meet the amount appropriated, the Council shall take such action as it deems necessary to prevent or minimize any deficit and for that purpose it may reduce by resolution one or more appropriations or apply additional reserves. If the Mayor notifies Council of a revenue shortage, budget amendments may be recommended or executive authority may be used to control spending so as not to exceed available revenues. �.:,: y` ��y��.�' � 14 (NO CHANGED TO B-5) B-5 MULTI-YEAR POLICY DIRECTION APPROVED BY CITY COUNCIL The Mayor shall recommend for City Council approval, written policy statements to guide the preparation of the City's and HRA's annual comprehensive financial plan. The City Budget Director shall be responsible for the coordination of four policy documents which provide multi-year policy direction and bring focus to strategic budget decision making for elected officials. The documents to be prepared and updated for the appropriate budget cycle are: - Budget Goals and Policies: Operating and Debt Service - General Obligation Debt Policy For Issuing Bonds - Capital Allocation Policies For The Capital Improvement Budget and Program - Housing and Redevelopment Authority Budget Policies _ �l�-�y�� 16 B-6 CAPITAL IMPROVEMENT BUDGET AND OPERATING BUDGET COORDINATION €s��eea��tt��e�-ert��eg�eee�etr�-e�t-��t�es�-i�Ge�x��er� s�ec�ees- Coordination and reco�nition of the interrelationships between the City's onerating budget and capital improvement budget is an integral part of sound budgetin�,. To help assure understanding of the imuact anpropriations proposed within one budget will have upon the other and to minimize negative impacts: a. �e�e-€e��a A priority for �#e capital improvement budgets through 1994, will be �-`�� projects which reduce -- - ---' °-'-�- operating and or maintenance expenses. Of primary importance will be sewer separation projects, including street reconstruction and lighting �e when appropriate; in addition, ------'_-'_---en nf rrar�rr+ntin» ti".ra�o.�° �n'� �„� -r.ur��-- ��•• .� �b....a.�..... review of Police and Fire Station facilities and equipment, and handicapped accessibility, will be priorities when it can be documented that the project(s) will reduce operating and/or maintenance expenses. b. Remodeling or major repair of any facility which '�-- - ' ='--' =�------' e�e-�g may be closed �� due to staffing limitations �� is be-prohibited. c. �-� Requests '�_ _________ for new or expanded service programs must be accompanied by s �_..__:, __,__ _F....� a multi-year analysis of the fiscal impact � -- ------ ----.. ---- �ee rr-��e�e�e�--b�-t�re.�eq�es-�-�ega�t�te�-�-e�-e�e�a� ��-�rs�-es��e-t-�r��ae-� ou both the capital improvement budget and the �erating budget. d. The Mayor's Proposed Capital Improvement Budget document shall include an estimate of the impact on operating budgets for the next five years for all capital improvement projects recommended for financing. e• , City Council will hold a comb�ned public hearing ��g to hear testimony on annual service charges for street maintenance and Town Square Park, the Capital Improvement Budget and the General Operating Fund Budget. Bv Sentember 1. 1990. the City Council must "ad,o�t" a proposed budEet and tax levy, in order to complv with the State's Truth in Taxation Law for providing budget information to the CountX Auditor for the preparation of a notice of proposed property tax statements by individual parcel. After considering the Ma o� r's pronosed budget and holding the reauired Truth in Taxation public hearine, the City Council shall adopt the annual budget no later than twelve (12) days (December 6) before the adoption date required by law (December 20) . �'��-��' �� f. Consistent with Policy B-6, Extraordinary Capital Maintenance, in the "Saint Paul Capital Allocation Policies", appropriations requests for : 1) Routine, systematic� �—preventive maintenance of buildings, equipment and facilities, shall be �e financed in the operating budgets__and routine ener�v conservation improvements: 2) Extraordinary capital maintenance, handicapped accessibilit,� and extraordinary ener�y improvements shall be �e financed in the Capital Improvement Budget,i 3) Life cycle replacement of structural building parts costing more than $75,000 (e.g. , wiring, roofs, furnaces) shall be �e financed in the Capital Improvement Budget 4) Initial purchase and life-cycle replacement of all mobile equipment and vehicles shall be �e financed in the operating budgets, except bookmobiles. Bookmobiles shall be financed in the Capital Improvement Budget if dedicated revenues are not available 5) Furniture and equipment for new buildings shall be �e financed in the Capital Improvement Budget, and replacement furniture and equipment for remodeling projects shall be made in operating budgets. 6� Lease-vurchase financin� should be considered as an alternative to immediate purchase especially for hi�h priced eQUinment with a life expectancy of less than five years _ o-i�� , , �� 19 B-7 MULTI-YEAR REVENUE AND ERPENDITURE FORECASTS In order to provide elected officials with pertinent data to make decisions for multi-year budget policy direction, the Budget Director shall annually provide, with the assistance of affected departments, the following multi-year forecasts: - A three-year General Fund revenue and spending forecast, and General Fund fund balances. - A five-year revenue forecast for the Capital Improvement Budget and Progrann, and corresponding fund balances. - A five-year spending forecast for the General Debt Service Fund. - A three-year revenue and spending forecast for ��eall special funds and correspondin� fund balances:— o�o�-��; > > � Rta i 1 d i-n v T na.�r+rit i nn a -� T o r •b • �=��-��' 21 B-8 BUDGET PREPARATION AND CONTROL: AUTHORITY, RESPONSIBILITY AND ACCOUNTABILITY OF THE MAYOR, CITY COUNCIL� BUDGET DIRECTOR, CITY MANAGERS, DEPARTMENT/OFFICE ACCOUNTANTS AND THE ACCOUNTING DIVISION OF THE DEPARTMENT OF FINANCE AND MANAGEMENT SERVICES A comprehensive financial plan for the City of Saint Paul's next calendar year must be recommended by the Mayor, and is considered and adopted by the City Council. The comprehensive financial plan is composed of budgets for operating, debt service and capital improvements. The Budget Director is responsible for gathering and analyzing department and office budget requests, and for preparing the various budget documents for the Mayor's proposal and the City Council's adoption. While the Mayor has ultimate control over the implementation of all budgets approved by City Council, the authority and responsibility for managing departments'/offices' authorized budgets is delegated to Department and Office Directors. Budget management includes long range planning, annual budget preparation, implementing spending decisions, recording revenues, implementing revenue collection procedures (collection of fines tickets fees . etc and evaluation of results. Directors may delegate budget management responsibilities to Division Managers, and fund and activity managers. A budget is a fiscal plan for a specific period of time that estimates financing sources and provides spending suthority for the performance of City services, programs and improvements. A fund is a fiscal account for designating money and other resources for the purpose of providing service, programs and projects or attaining objectives in accordance with Mayoral and City Council intent, administrative and legislative policies, and State and Federal laws. An activity is a sub-unit of a fund. Each fund contains one or more aci,ivities, a specific and distinguishable budgetary unit of work or service. Activities are detailed levels of budget spending authority created to accomplish one or more of the approved objectives of the fund. Fund managers are accountable to and receive authority from their Department/Office Director or Division Manager, and ultimately from the Mayor, City Council and City residents and taxpayers. Each fund manager is responsible for correctly preparing and submitting the portion of the City's comprehensive financial plan that is provided by their fund. This includes a properly completed budget request consisting of performance, spending and financing plans. The performance plan is the fund manager's estimate of the affordable service level desired by the Mayor, City Council and the residents of the City. The spending plan appropriates money to provide the estimated resources required to effectively accomplish the performance plan. The financing plan identifies the source of money to pay for the spending plan. Fund managers have primary responsibility for the control of budgeted expenditures, monitoring the collection of budgeted revenues, monitoring that sufficient revenues exist to � ��0-/`l�� 22 finance expenditures, cash flow planning and the delivery of service in accordance with the adopted performance plan. In order to conform with the requirements of ChaptQr 10.10 of the City Charter, fund managers are responsible for holding spending to the limits appropriated in the budget by Council resolution or administrative order . Fund managers are also responsible for forecasting significant performance, spending or financing variances, determining their cause, and recommending a solution to their Department Director� Office or Division Director. and the Budget Director. Managers of accounts where fines. fees or other revenue sources are to be collected must initiate implement and carrv out collection of said resources Whenever possible, solutions should be considered and implemented in time to prevent a projected variance. When additional spending authority is needed or budgeted revenues will not be realized, a fund manager must notify his or her supervisor, the Department/Office/Division Director and Budget Director within three working days. Each activity manager shares in the authorities and accountabilities of the fund manager (as described above) as delegated to him or her. Activity managers are responsible for attaining performance objectives, approving spending payments and guiding the day-to-day operations of their activity. Activity managers report budget implementation progress to the fund manager. Each fund and activity manager shall see that services are provided within the context of high ethical and moral values, and in accordance with the city rules and policies for accounting, affirmative action, human rights, personnel and purchasing. The fund and activity managers and Directors have the employees of the Mayor's Office, the Budget Office, the Human Rights Department, the Personnel Office, the City Attorney's Office and the divisions of Accounting, Citywide Information Services, Purchasing, Risk Management and Treasury available to them as resources to assist in carrying out these -responsibilities. Each major department also provides staff support for accounting and timekeeping subject to Finance and Management Services Department policies. Department/office accountants are responsible for assisting their department's/office's fund and activity managers in the preparation and control of budgets; for providing technical budget, accounting, and payroTl information and training to their managers; and for providing timely financial status reports to their Department/Office Director, Division Managers, and fund and activity managers. Citv manaeers will take aggressive action in all revenue collection procedures. The Mayor's Administration is to implement administrative procedures for aggressive revenue coilection effective January 1 1991. In the event that actual spending exceeds budgeted appropriations or actual revenues are less than budgeted, the department/office accountant shall immediately notify the fund manager, Department Director, Chief Accountant and Budget Director. The Budget Director ��'��" 23 shall take action to resolve the problem in accordance with Budget Policies. The Accounting Division of the Department of Finance and Management Services is responsible for determining, in accordance with Chapter 10.10 of the City Charter, that sufficient unencumbered appropriations exist prior to approving purchase orders, and payment of invoices and payroll. , d�.---�a-i�� 25 B-9 PERFORMANCE BUDGETING An Activity Performance Plan shall be prepared for each operating budget activity. A performance plan is a manager's realistic estimate of the service level desired or mandated by the Mayor, City Council� or other �overnmental entities and the citizens of Saint Paul. The plan must identify ongoing program objectives and corresponding performance indicators. The indicators measure the quality, quantity, effectiveness and efficiency of the on-going objectives. The plan should also include specific project objectives which will have results during the budget year. All performance at the activity level must be consistent with the mission statements at the division, office. department and City level, and must meet the budget goals and policies established by the Mayor and City Council. Al1 activity managers must commit to performing at the authorized service level once budgeted resources are confirmed. This promise is made evident by the manager's signature on the Activity Performance Plan. It is critical then, that the objectives are significant, measurable. attainable, and accurately reflect the managers' plans,l includin� significant chan�es from past practices. During the budget year, a manager must prepare a "performance variance report" whenever there is a significant variance in meeting the objectives identified in an Activity Performance Plan. The responsible Office/Department Director shall inform the Mayor's Office whenever a variance has a critical impact on planned service delivery. The Administration shall prepare a Citywide executive summary of the managers quarterly performance reports and submit it to the Mayor and City Council for their review. Performance indicators will be set and approved by the City Council for each department office and d?vision: and will be reviewed annually for compliance o,,��' �� 2� i B-10 BUDGET DOCUMENT DETAIL The Mayor's Proposed Budget shall contain major object level and line item detail for the activity spending plan, a personnel summary report listing types of positions for each activity, and a corresponding activity performance plan. It shall also contain division, department and fund summaries for spending and personnel; as well as a detailed financing plan for the fund. Spending, financing and performance plan detail shall be listed for the current year's budget and for actual expenditures, revenues.�eee-�s and performance of the two prior years, with vast 10 years available upon request. The City Council's Adopted Budget shall contain the same data as the Mayor's Proposed, except that the spending plan for each activity shall be summarized at the major object level. The City's automated, integrated financial management system shall maintain the line item spending and financing detail, and provide access to managers through on-line computer inquiry and print-outs of management reports and financing,. t ��%'��I� . . 29 (NO CHANGE TO B-11) B-11 BUDGET EXCELLENCE The City shall strive for budget excellence. Annually the Budget Office staff shall review and evaluate budget process and format with the process participants in order to identify enhancement opportunities. The Budget Office should submit the City's budget documents to Government Finance Officers Association (GFOA) for review and rating, and should strive to obtain the Award For Distinguished Budget Presentation with special emphasis on the communication of City policy and performance planning, reporting, and evaluation. o-�� 31 BUDGET CONTROL AND MONITORING: B-12 GOOD MANAGEMENT PRACTICES Good management practices shall be employed in preparation and execution of the City's financing, spending and performance plans by including: - Resvonsiveness to citizen needs and requests - Performance planning, reporting and evaluation. - Two-year budget planning. - Productivity opportunities such as office automation, work flow simplification and new technology applications that increase service delivery. - Equipment modernization. - Risk management/safety programs. - Preventive maintenance. - Energy conservation. - Employee training and recognition - Life cycle equipment purchasing and leasing. - Use of flex hours and job sharing hours to benefit emplovees and enhance services. - Use of job sharing hours. - Use of voluntary leave where needed for employee development and budget shortfall. - Enforcement of affirmative action - Emnlovee trainin�, recognition and review of job performance - Re-training of employees to minimize use of outside job �onsultants. - Creation of career ladders for individual employees - Encourage labor. management and employee dispute resolution vrocedures and problem solving techniaues - Retraining of employees to prevent proliferation of job titles. - The Ten Commandments. - Organization.�lanning and development ��'�� 33 (NO CHANGE TO B-13) B-13 ACCOUNTING SYSTEM BUDGET CONTROL LEVELS The Accounting Division, in the Department of Finance and Management Services, shall enforce the intent of Section 10.10 of the City Charter which requires that no payment shall be made or obligation incurred against any appropriation unless there is a sufficient unencumbered balance in the appropriation and unless sufficient funds are or will be available to cover the claim or meet the obligation when it becomes due and payable. The Accounting Division shall maintain a spending control system for processing purchase orders, and payment of invoices and payroll. The control system shall allow for ordering and payments for operating and debt service funds when an unencumbered appropriation balance exists at the major object level. Capital project funds shall be controlled at the activity level, and the Water Utility Fund at the fund level. In the unlikely event that immediate disbursements are required, where no budget authority exists, for unanticipated needs such as emergency services, and contractual pass-throughs of money for another government or non-profit agency, the Mayor shall immediately request the City Council President to authorize unanticipated disbursements and shall recommend a budget amendment to the City Council. In such cases the Council President shall approve or disapprove the disbursement. The Mayor's recommended budget amendment shall be placed on the next Council agenda. If the Council President is not available, then the Mayor shall seek disbursement approval in the following order: Council Vice President, Finance Committee Chairperson, other Councilmernbers, in order of seniority. ��a'��' � 35 B-14 MID-YEAR REVENUE SHORTAGES The authority to make expenditures in accordance with a City Council approved spending plan is only valid as long as the actual revenue for the budgets is equal to or greater than estimated. If during the year, the actual revenues for a fund are forecasted to be less than the City Council approved financing plan, the fund manager shall notify the Budget Directors Mayor, and �City Council �n ��—of all significant variances. The Budget Director, through consultation with the Department Directors, shall determine if spending reductions can be made to offset the revenue loss. If significant service level cuts would be required, the Budget Director shall inform the Mayor and City Council of the amounts and service level impact. If there is a desire to maintain service levels and use fund balance or request a transfer from another fund, the affected Department or Office may request and the Mayor may recommend to City Council a budget amendment for their consideration. �r�-�.y�,��' 37 B-15 YEAR END ENCUMBERED BALANCES Governments recognize their financial obligations for approved contracts for goods and services that have not yet been paid because service delivery is not complete, as "encumbering". The amount of City spending authority encumbered for contracts in process lapses at year end, creating a "Reserved" fund balance. This "Reserved fund balance is used to finance the reappropriation of authority to pay for the previous year's contracts from the new year's budget. The Accounting Division shall prepare a listing of encumbrances carried forward to the current bud�?et and roll forward the encumbrance obligation of the�ast year - ^--•----=' "��'-•�'-- � This method of recording and reporting prior year end encumbered balances does not represent an increase or decrease in net spending authority. It merely facilitates the recording and reporting of all expenditures incurred in the current year against the current year budget. a �. �� 39 B-16 BUDGET REQUIREMENTS FOR CONTRIBUTIONS AND DONATIONS AND SPECIAL ACTIVITIES WITH PUBLIC PURPOSE All private money donated, contributed, or lent to the City for operations, maintenance, purchase of equipment, supplies, land or capital facilities shall be deposited in the appropriate City fund and accounted for as public money through the City's existing budget process and accounting system. The use of private dollars to offset part of the cost of special activities, such as recreation programs, special benefits and exercise and training programs, shall be included in a special memo budget to be approved by City Council resolution. The use of these private monies may be accounted for by special checking accounts which allow for efficient, responsive service delivery to the user of the special activity, without the normal time delay associated with check writing and disbursements from a City account. All contributions. donations. and outside donations shall be accepted in accordance with the solicitation policy (Chapter 41 of the St Paul Administrative Code) adopted by the City Council in May 1990 Donations shall include cash checks or property value All donations of anv type, in any amount of value shall be received and processed in accordance with proper and accepted accounting practices• be received and accepted by City Council actions accordin� to the ordinance: be public and subject to audit The use of private monies and snecial checking accounts will meet the procedures established bX the Finance Department. a,ppropriate department office or division Organizatfons, such as booster clubs. Friends of the Library etc. , nrovide a valuable service to the citizens of St Paul throueh their donations of money time and effort Qo��bat-�ens e��s-�r�t-t�e--e� - :a,.....a ,� . All fund mana�ers 5hould strive to maintain operating reserves that provide sufficient financing security to ensure provision of basic services authorized in the annual budget and �n accordance with the policies envisioned by the Citv Council and without reliance on contributions and donations as an ongoin� revenue source for operations management �-yo'�� 42 B-ll SOLICITATION BY EMPLOYEES Chapter 41 of the Saint Paul Administrative Code specifies the policy regarding soliciting on behalf of the City. In 1990 the City Council amended Chavter 41. Adherence to the Code is expected bv all offices denartments. divisions and Cit�personnel ..�a�i�i.-ag�e�fii s�-e�9--d�eedrii e�� -aTt�6 e�t :, , _ Chavter 41.01 of the Saint Paul Administrative Code specifies that "No officer or em�loyee of the City of Saint Paul shall solicit anX funds or nrouerty for any employer-related or occupational-related purvoses. This shall include solicitation for �roups or organizations that exist because of an em_ployee-employer relationship in or�anizations that are sponsored primaril�y city funds " "Solicit shall mean requestinQ donations funds or other financial assistance by any method. This shall not include any federal �overnment. state �overnment or foundation �rants that require a formal avvlication process. and receipt of which is acknowledged bX the city council. " SOLICITATION PROCEDURES NEW POLICY A: SOLICITATION BY EMPLOYEES Chapter 41 of the Saint Paul Administrative Code specifies the policy regarding soliciting by employees on behalf of the city. Sec. 41.03 provides that "This provision shall not prohibit the City from accepting donations. . . . " A. Estimated, unsolicited dor�ations of money or property shall be included in the ann�al budget under object ccde number xxx. B. All unsolicited donations shall be deposited with the city treasurer under the procedures outlined in the Accounting Procedures Manual, section IV (D) . C. The fund or account manager shall maintain a list of donors showing date of donation, donor, and amount donated. A copy of this list of donors shall be filed quarterly with the city clerk's office by the last day of the month following the close of a quarter. l. The document shall show the current quarter's additions by date of donation, donor, amount donated, and the beginning and total amount collected for the current and previous quarter or quarters of the current calendar year. D. If no unsolicited donations were anticipated at the time the budget was prepared, a budget amendment shall be prepared by the fund or activity manager under object code number xxx showing the donor, amount of donation, and date of donation--or, by the anticipated total �� 46 (NO CHANGE TO B-18) B-18 MID-YEAR BUDGET ADJUSTMENTS: AUTHORIZED WORKFORCE Sec. 10.074 of the City Charter gives the Mayor the authority to transfer any time during the year any part or all of any appropriation balance within a department, office, or agency. Transfers from one department, office or agency to another require a Council resolution. The City's policy for mid-year budget adjustments of salary dollars for allowable full-time equivalent (FTE) positions where there is no material impact on service level is: A) Approval by Budget Director: 1) Trade high paid FTEs for more low paid FTEs only when there is no expansion of a program. Salary dollars including fringe benefit costs must not increase after the trade. 2) Transfer Personal Service Contract dollars for salary and fringe dollars only if: a) Part-time contracts equal part-time civil service positions b) Special project contracts equal temporary civil service employment B) Conceptual approval by City Council Prior To Taking Any Action: 1) Trade of low paid FTEs for fewer high paid FTEs. (Reduces service level) 2) Desire to increase FTE's to expand service level program for ongoing basis 3) Desire to convert personal service contract for a short term project into ongoing City employment Any FTE change made administratively by the Mayor during the course of the year, does not necessarily commit the Mayor or City Council to budgeting that FTE in the corresponding year's budget. The FTE changes approved by the Mayor will be communicated to City Council by having the City Clerk transmit a copy of the Administrative Order to the City Council and by including a log of changes in the "Analysis Document For Mayor's Proposed Budget". , ��e-,�z�' 48 B-18A SPECIAL FUND BUDGET 1. Funds or activities within special revenue funds that receive General Fund support shall be speciallX reviewed to determine whether it is appropriate to retain them as special funds. 2. Special funds with annual operatine budgets that do not reflect separate and distinct urograms�n_-_��= should be mer�ed into another fund, bringing its revenue alon� into the fund. This assumes there are no le a�l reQUirements prohibiting such a merge. 3. If Revenues --`-°••�-� are devosited into �ke one fund that suvports the expenditure activities of another fund, the first use of those revenues should be cost recovery for the source fund. 4. The revenue center concept should be encouraged• 1) to ensure sound fiscal manag,ement of all funds: and 2) where there is potential for generating additional sources of non-propertv tax revenues in the normal course of conducting City business. �ya-,�.�' 49 CASH FLOW POLICIES: Background: A basic rule of governmental finance is that municipalities recognize revenues and expenditures according to fund accounting principles. A fund is a fiscal entity with a self-balancing set of accounts that record cash and other resources together with related expenditures, liabilities and residual balances. These accounts are used to report on the provision of particular services. Each existing fund is considered a separate financial entity. A...,...t.....,. t.. '�-i�H��9�--9�9t3i}f,�-�}R@TLeiB�� @icas@�Eilc-�9 c9�aircz.arrrs F� C'E�t�'iir�-p�fti�-=��p v9g=o�i-�cB^i:sv�c-��i } , �21�iR�9--iS��tlzi�r��rti.['ezirsc-i-fl�� e�-�T@ e :,, �_ _ _�. ae�e�-��r��€r�t�g-i-s-�eeei.�=��Re-a�aaeQ��-e€�ea=-e�r� B-19 MINIMUM CASH BALANCE GUIDELINES CONSENSUS Each f_und mana�er shall prepare their fund's annual financing plan with the eoal of maintaining a positive cash flow Fund balances should be held for cash flow vurposes in accordance with the policies enumberated in this document. �`'.. ..� ege�e��rg-e��g e�t��t�es—�4a�sge�-e��re13--�� 9it9��E—�9 "�.."_o:"o eec��ret�e @9it�izr - a �.. ic� cvrrc�v�z--vPC� 9}!—, -9ttC�-E1t�E��li�l�e--�t*ii�"'.r� -9�29 F*�� "-�-�-�_ �,]g��r TTti 7 ;rv T----e�g�e��t�-at3� �#e�ei�e� °_ _ a�rr-�ilBeTCC�e@iT�-��?E-�i`-�e��-�@i`iiic c-ciz�vica-scc.a cro c�-pi uo-c-�cac�C. �•9�€9 �',�9a,��z�' . , 43 unsolicited donations under budget code number xxx expected for the remaining current year. The amendment shall be approved by the council and mayor prior to acceptance of any donations. Upon approval of the budget amendment, procedures B & C shall be followed. Sec. 41.,04. provides that, "Nothing contained in this chapter shall prohibit or prevent the Mayor of his or her designated person, or any Council person or his or her designated person, from soliciting funds on behalf of the city or on behalf of any city sponsored function or organization. . . . " A. Estimated, solicited donations of money or property by designated persons shall be included in the annual budget or in a budget amendment approved prior to the beginning of solicitation under object code number xxx. B. A supplemental page to the budget or budget amendment document shall be prepared and attached to the budget or budget amendment document showing the person or persons designated to solicit, the dates of the solicitation, the purpose of the solicitation, projected solicitation revenue, and projected solicitation expenses for each type of solicitation. l. Changes in designated persons or dates of solicitation may be made by filing with the city clerk a statement listing the new or additional designated persons or dates of solicitation, and signed by the mayor. C. Any funds collected shall be deposited with the city treasurer under the procedures outlined in the Accounting Procedure Manual, section IV (D) . D. The fund or activity manager shall prepare a list showing the donor, date of donation, and amount or donation. A copy of this list of donors shall be filed quarterly with the city clerk's office by the last day of the month following the end of a quarter. The lists shall be maintained for each solicitation purpose. 1. i�e document shall show the current quarter's addi�ions by date of donation, donor, amount donated, and the beginning and total amount collected for the current and previous quarter or quarters of the curr�nt calendar year. Section 41.06. states that, "Notwithstanding the provisions of this chapter, any charter department of the city, the office of the Mayor, and the City Council may enter into a contract with a fund raising agency to raise donations or funds for department or city wide purposes. . . " A. Estimated, solicited donations of money or property by fund raising �gencies shall be included in the annual budget or a budget amendment under object code number xxx. B. A supplemental page to the budget document or amended budget document shall be prepared showing the name of the fund raising agency, dates of solicitation, purpose of the solicitation, projected gross revenue, and projected solicitation expenses for each type of solicitation. (�yo-��z�' 44 C. The contract between the city of Saint Paul and the fund raising agency shall show the dates of solicitation, purpose of solicitation, projected gross revenue, projected solicitation expenses for the solicitation project, and the agency's agreement to be audited by a city appointed auditor, approved by the city attorney's office, signed by the fund raising agency and those parties as required by the city charter and administrative code after approval of the budget or budget amendment, and filed with the Accounting Division of the Department of Finance and Management Services prior to the beginning of solicitation. D. Funds received shall be deposited with the city treasurer under the procedures outlined in the Accounting Procedures Manual, section IV (D) . E. Financial statements concerning solicitation conducted under the terms of the contract, including a balance sheet and statement of revenues and expenses, shall be filed by the fund raising agency, either annually by the 15th day of the third month following the city's year end, or by the lSth day of the third month following the ending date of the solicitation period, whichever is earlier. The statements shall be prepared by the fund raising agency on a calendar year basis using generally accepted accounting principles. ��' 46 (NO CHANGE TO B-18) B-18 MID-YEAR BIIDGET ADJUSTMENTS: AUTHORIZED WORKFORCE Sec. 10.074 of the City Charter gives the Mayor the authority to transfer any time during the year any part or all of any appropriation balance within a department, office, or agency. Transfers from one department, office or agency to another require a Council resolution. The City's policy for mid-year budget adjustments of salary dollars for allowable full-time equivalent (FTE) positions where there is no material impact on service level is: A) Approval by Budget Director: 1) Trade high paid FTEs for more low paid FTEs only when there is no expansion of a program. Salary dollars including fringe benefit costs must not increase after the trade. 2) Transfer Personal Service Contract dollars for salary and fringe dollars only if: a) Part-time contracts equal part-time civil service positions b) Special project contracts equal temporary civil service employment B) Conceptual approval by City Council Prior To Taking Any Action: 1) Trade of low paid FTEs for fewer high paid FTEs. (Reduces service level) 2) Desire to increase FTE's to expand service level program fo-r ongoing basis 3) Desire to convert personal service contract for a short term project into ongoing City employment Any FTE change made administratively by the Mayor during the course of the year, does not necessarily comrnit the Mayor or City Council to budgeting that FTE in the corresponding year's budget. The FTE cY�anges approved by the Ma.yor w�ll be communicated to City Council b� having the City Clerk transmit a copy of the Administrative Order to the City Council and by including a log of changes in the "Analysis Document For Mayor's Proposed Budget" . �qo-��" < , 48 B-18A SPECIAL FUND BUDGET l. Funds or activities within special revenue funds that receive General Fund support shall be speciallX reviewed to determine whether it is appropriate to retain them as special funds. 2. Special funds with annual operating budgets that do not reflect separate and distinct programs�e should be merged into another fund. bringin� its revenue along into the fund. This assumes there are no le� reQUirements prohibitint� such a merge. 3. If Revenues --`--••�-� are deposited into �ke one fund that supports the expenditure activities of another fund, the first use of those revenues should be cost recovery for the source fund. 4. The revenue center concept should be encouraged: 1) to ensure sound fiscal manag,ement of all funds: and 2) where there is potential for generating additional sources of non-propertv tax revenues in the normal course of conducting City business. �� 49 < . CASH FLOW POLICIES: Background: A basic rule of ;governmental finance is that municipalities recognize revenues and expenditures according to fund accounting principles. A fund is a fiscal entity with a self-balancing set of accounts that record cash and other resources together with related expenditures, liabilities and residual balances. These' accounts are used to report on the provision of particular services. Each existing fund is considered a separate financial entity. ��b�e-��e e� settrt��s��egeate-�� .r�:_ epe��ee9��-e�de��e-�ee-� etz�e�r�-e�rea��trr . �e-€�e�-�—�e�e�aflrg��'�--�-�� -�R�i-�r�t��-«�e-€�e ;�e-��n� -'-��e�e i�g-ts-�eee i�fe� ��}3e s eee�r�-�ra�e€-��te-�� :i i t.,. ..i.. a..r:E�-�--tkR�ii—rlFtl3�Ft�'—3=EE.'�YbRE��C---aiavFs B-19 MINIMUM CASH BALANCE GUIDELINES CONSENSUS Each fund mana�er shall pr�pare their fund's annual financin�`ulan with the goal of maintaining a positive cash flow. Fund balances should be held for cash flow purposes in accordance with the policies enumberated in this document. 9ttgee��a�kks�g��eee�re�e-eet3��t�e�t�-s-x�-�s�,L�r299 ee�aT-a a� > > �e-��e�-H�i��rt�e�g�s e-�tt�r�-str�-�#��--�e�ree ��t��es-�e ee�*e�t�re-�� e�-� e€-��re--e�e�-�s e�e . : �. .. �,�� 51 (NO CHANGE TO B-i20) B-20 PREPARATION OF MULTI-YEAR PLAN FOR SPECIAL FUNDS WITH NEGATIVE CASH FLOW A written multi-year plan for correcting a pro�ected negative cash flow in any fund shall be required as a part of the annual budget request process. The fund manager's plan must be submitted to the Budget Director and be acceptable to the Director of Finance and Management Services. The City Council may not adopt a budget for any fund which has a projected negative cash position unless it has an approved written multi-year plan for correcting the negative cash flow. If service or user fees are part of the financing plan for funds which are operating in a negative cash position, the fee established should include an amount for working capital that is consistent with the approved plan for correcting the negative cash flow. Cash advances will not be made to funds with a negative cash flow unless there is a multi-year plan prepared which identifies how and when the advance will be repaid. ��,�� 53 (NO CHANGE TO B-21) B-21 GENERAL FUND CASH ADVANCES LIMITED TO SPECIAL FUNDS WITH NEGATIVE CASH FLOW Normally, the only circumstance in which the General Fund will provide cash to address negative cash flow will be for special operating funds which are financed primarily with special assessments or service charges. Any cash advance from the General Fund will be considered a recoverable loan. A plan for repaying the cash advance must be prepared and accepted at the time City Council authorizes a cash advance. �'�y�,i�„z�' SS (NO CHANGE TO B-22) B-22 USE OF CjP,SH FLOW LOANS FROM SPECIAL FUNDS Recoverable loans can be made to funds that are operating with a negative cash flow from special funds that have sufficient cash reserves. The cash-poor fund will pay interest to the cash-rich fund on its loan at a rate agreed upon by the fund managers and the Director of Finance and Management Services. Inter-fund cash flow borrowing must be recognized by an interest-expense appropriation in the budget, adopted or amended, of the cash-poor fund, and by a revenue estimate for interest income in the budget of the cash-rich fund. ��z�' S� (NO CHANGE TO B-23) B-23 GENERAL FUND AND GENERAL DEBT SERVICE FUND SHORT TERM BORROWING The Budget Director, City Treasurer and Director of Finance and Management Services shall jointly recommend to the Mayor and City Council whenever they believe it is necessary to short term borrow to address cash flow shortages. It is the City's intent to maintain adequate reserves to preclude the necessity for expensive, short-term borrowing. The City may issue Tax Anticipation Certificates (TAC's) or negotiate and repay short term loans, as needed, in order to maintain a positive cash balance in the General Fund and in the General Debt Service Fund. As required by the City Charter, any short-term TAC's will be repaid before March 1 of the year following the date of issuance. �,�90-��1�� ' ' S9 (NO CHANGE TO B-24) B-24 PUBLIC IMPROVEMENT REVOLVING FUND CASH FIAW No General Fund money will be advanced to the Public Improvement Revolving Fund for cash flow. Construction projects financed with special assessments will require the issuance of special assessment bonds to provide cash to finance construction contracts. � �. �'�o'i��' 61 (NO CHANGE TO B-25) B-25 PRIORITIES AND PROCEDURES FOR DISBURSING CAPITAL PROJECT FINANCING In order to maximize allowable interest earnings on cash investments, fund and activity managers and the departmental accountants will conform with the following when paying bills for capital projects: 1) An interdepartmental invoice for transfer of money between funds will accompany each pay voucher which equals or exceeds $50,000; 2) An interdepartmental invoice for transfer of money between funds will be completed at the end of each month to cover all pay vouchers which totalled less than $50,000; 3) If a capital project has multiple sources of financing available, spending will be charged against funds in the following order, subject to the qualifications listed below: - Reimbursable grant funds--these funds should be spent first with prompt request for reimbursement; - Bond funds sold in 1987 or after; - Cash grants which have interest limitations; - Bond funds sold prior to 1987; - Cash grants which do not have interest limitations. The following qualifications should also be applied: 1) Grants with time restrictions should be spent within the allowable period. 2) If the budget for a project exceeds the project's final cost, cash grants should be used to the full extent allowable leaving other financing sources available for reappropriation. _ _ ��9a'�� 63 B-26 MONTHLY CASH RECEIPT ESTIMATES WITH BUDGET AMENDMENTS Each fund manager shall prepare an estimate of monthly cash receipts whenever a Special Fund's annual financing plan is being amended by Council resolution to increase or decrease revenue sources or receive transfer amounts, ��1�-�S�2p' 65 (NO CHANGES) OPERATING RESERVE AND YEAR-END FUND BALANCE: Background: City budgets can contain two types of operating reserves: one can be provided for in the spending plan, where money is appropriated for contingencies; and a second can be a designated fund balance. A description of both types of reserves follow: 1) Contingent reserves are normally appropriated in the General Fund budget. Traditionally, the City has had both a "General Contingent Reserve" and a "Specified Contingent Reserve." The General Contingent Reserve provides an appropriation for unexpected expenditures during the budget year. The Specified Contingent Reserve, is a special appropriation dedicated for a number of particular uses. Although City Council recognizes the need for the particular uses identified in the Specified Contingent Reserve, they establish conditions to be met before the money may be released. A Council Resolution is required to transfer money from both the General and Specified Contingent reserves. A transfer from the contingent reserve to a department office's budget does not cause a net increase in total spending authorized. 2) The second type of operating reserve is a designated fund balance which is money remaining from a prior year's budget. It is used to cover unanticipated revenue loss, or for specific spending needs which will require City Council approval to increase total spending authority. In limited circumstances, a fund balance designated for cash flow and revenue loss security may be used to finance unexpected expenditures. A Council Resolution is required to increase spending authority. The existence of this type of operating reserve reduces the need for cash flow borrowing. In 1981 and 1982 state aids to Minnesota Cities were reduced in the middle of a budget cycle when the state had to balance its budget to offset a reduction in income and sales tax revenues when the state's economy weakened. In 1982 the State Auditor recommended that all municipalities in Minnesota maintain a designated fund balance operating reserve in their General Fund budget equal to one-half of their city's expected Local Government Aid (LGA) payment. In Saint Paul, for 1990, based on the current LGA law, this revenue reserve would amount to $23,487,000. A 1982 survey by Che League of Minnesota Cities indicated that most municipalities maintain fund balance reserves in the range of S% to 12X o£ their estimated budget. The City of Saint Paul's designated fund balance for revenue shortage was significantly lower than these figures, but has been improving. In 1980 the City had a revenue reserve of only $500,000, or less than 1% of the estimated budget. The designated revenue reserve grew to 1.3X for 1981 and 1982, was 2% in 1983, was 4% in 1984, and has remained at 5X since 1985. The 1989 budget had a 5% Designated Fund Balance of $6,245,323 for Revenue Estimate Security and Cash Flow (less than one-third of the amount recommended by the State Auditor) . �'9o,i�� 66 Recent years` experience with mid-year revenue loss to the City highlights the need for this reserve. After the 1982 budget was adopted, Local Government Aid was cut by $3,686,000, Homestead Credit Payments were reduced by $708,000 and Northern States Power (NSP) Franchise Fee receipts were $395,000 short of estimates. After the 1983 budget was adopted, NSP notified the City that the franchise fee revenue estimate would be reduced by $500,000. In the Spring of 1986, the financing plan for the adopted budget had to be adjusted to recognize a $2,055,000 revenue loss: $1,030,000 in NSP franchise fees, $918,000 in General Revenue Sharing, $30,000 Community Health Services Aid and $77,000 in interest earnings. In 1987 the financing plan had to be reduced by $1,352,000 to offset shortages in taxes, franchise fees, municipal state aid and parking revenues. ��a-��' ' ` 68 B-27 GENERAL FUND - APPROPRIATED RESERVES The City will appropriate a "General Contingent Reserve" in the General Fund that will provide a minimum of $250,000 for unexpected expenditures. The maximum for this unspecified reserve (in Activity 09060) should not exceed 0.5% of the total General Fund spending plan. The City will continue to appropriate a "Specified Contingent Reserve" in General Fund Activity 09061 that will provide an amount for unanticipated employee promotions, position regradings and other specific needs as appropriated by the City Council. The City will appropriate a "Reserve for Negotiated Increases" in all budget activities which have salary costs. This reserve for each activity will be based on actual salary settlements when contracted with a bargaining unit, and projected salary settlements as determined by the policies enumberated in this document. when settlements are pending. , ��se--e�-��z��be �e-$�e� t�e-6�t-�-Fe��-'�P-�e-�i�e�z �e�e�tpe�-a�-��-�e�"e'�-ga�e�e�e�rs es �e�-$-�e-p$�t-�e��r€re�i€-a �ee��ea�-�s�e�ee i�es--�e�e-t�t�es�t}�e��ae�E-ers�F��e�rt�tr�g�-� tke-6��&etrrte_'_ i�?-es-��e�r��e stt��e�e-��s�tr�e�te� �c�--�#e-6��6ett�e��ne�etx�te=�z�sT� '- '' '��e;��te� ��te--1�4e�e�s�i$�-see� ��9�tt�ee�te�r�-e��r� --�� e-�e�es�i��e-��e� 6e��-V-�ee-F�e-s r��~`n�i�i�ee-6 e��ee-6#�g e�s�e-�_ w'�'�$�@nTCI�9� �-e�a ea�e� 4 Pil 1 A�7--�!' �� ' �o B-28 GENERAL FUND - DESIGNATED FUND BALANCE RESERVES The City should strive to establish General Reserves in an amount vrovided by the formulas in B-31 The designation of these res�erves should be as follows• The General Fund's Designated Fund Balance for Revenue Estimate Security and Cash Flow shall be no less than 5X of the annual spending plan. ,�_v:_ � }� ��'' ai.ic`-rtcrrra�� {}�� es�—�A�8�ne�e=e=e �E-1°Eacrrc-air �vccra nc According to the Risk & Insurance Management Society and a 1983 consultant's report, the budget should include a Designated Fund Balance equal to .SX - 1.SX of the General Fund operating budget for the following liabilities: - Tort Liability - Employee Insurance - Workers' Compensation *�ase��b�T�=es�n 9i-�ac�c�ixrei'ea3�1�@9 @�ot�9 �9z,��--v��Yc e��, �tE-i`E�9��Y-"�i�e9-��tG�llt��-�@--�ihcc2a9 e� �9 � .�.�rNi�rrr�ic G,�9e�'�y�' � . �2 (NO CHANGE TO B-29) B-29 GENERAL ;DEBT SERVICE FUND - DESIGNATED FUND BALANCE RESERVES The City shall continue to maintain the mandatory 5X General Debt Service Fund reserve in order to provide for potential tax delinquencies in lieu of a S% over-levy, as required by state law. In accordance with the Bond Counsel's recommendations for financing the first year's debt service for planned bond sales, the City shall levy property taxes instead of relying on estimated future revenues. This will result in a more positive fund balance. In addition, the City shall establish and maintain a designated fund balance reserve for Tax Abatements in the General Debt Service Fund equal to 2.0% of the annual debt service tax levy. The debt service reserve shall be established over a four year period beginning in 1990 and ending in 1993. In accordance with the federal arbitrage provisions of the Tax Reform Act of 1986, the City must rebate earnings on investments which are in excess of the rate on the bonds. The rebate rules apply to bonds issued on or after 9-1-86. The City shall designate an Arbitrage Rebate Reserve for the amounts owed the federal Treasury. The City shall budget the payout to the U.S. Treasury for the budget year it is due. �',r�yo��' 74 B-3 0 aF$6 T"T �T�'��B£'>--�ii°��c^v°r�I-A�E�B F�E$�$ APPROPRIATED RESERVES - SALARY FRINGES All s�ee;.�� budgets will include an appropriated reserve for expected salary and fringe benefit increases. 8�e-n�e� ��—�k�s�es e�o=e-�e��e-�e�,*—€rs ea�e-��- A� e��e�--e��e��ia�e�—�ese��tes�s-��e�r�-s�ee�e�ts�es- This applies to all budgets. ��o��y�� 76 B-31 FUND BALIANCE All fund managers should strive to maintain �ri�r-i�r-fund balances that provide sufficient financing security to ensure provision of basic services authorized in the annual budget and to maintain positive cash flow for; the fund. In addition, the General Fund shall meet the cash- flow reauirements provided in the policies enumberated in this document. Minimum fund balances should be established according to the following guidelines: l. For cash flow: For Funds that rely on assessments or property taxes, 10% of annu�l operating expenditure. For Funds financed with user fees� charges, �rants or any other non-�roperty tax. non-assessment revenue an amount to cover operating expenditures for a period equal to the fund's billing lag. 2. For revenue security: A percentage of revenues equal to the largest historical revenue shortfalls in the last ten years. 3. For emergency security: 2% of operating expenditures. 4. For planned capital improvements: Any Council approved amount. 5. For Debt Service: The amount necessary to meet bond requirements. Fund bal�nces in excess of the minimum provided bv this policy may remain in the fund or shall be used in accordance with Policy B-32 ��.�,�:_ �'�-ya-��' �$ ��9 RT�I.A�.Dd..2"TL•►8�6�."'-TrA��r-�la—�1£�6�6�T--L•a�ii-�oiA�T---r'�'d�d-B—°nA�Pti�i�6� �,�_ A{-�---s-�#r�-s�tet�� be �a�fett �e eeh�e*aP R (�P9 o a r a ,� � r �e�r8-,4 e-�t�e--et�rt�a�-s�e�r�=�rg��n��g --- - _ �... . ....a . �9�i`@'ox2i��-@'f9�-e�-3p�ccz"'srrcca craac=rn�Frcccor�- B-32 USE OF FUND BALANCES/RETAINED EARNINGS Where fund balances exceed those needed to establish the reserves set forth in B-31. those fund balances should be used as follows: 1. Retained earnings not needed for cash flow or capital internal service funds should be used to stabilize rates charged to user departments 2. In funds suuported by assessments andJor user fees fund balances/retained earnings not needed according to the formula above should remain within the fund to stabilize rates. or be used to supvort specific exnenditures related to the mission of the fund as apvroved by the Mayor and the City Council 3. Funds supported by revenues other than user fees� assessments or the General Fund should use fund balances in accordance with an expenditure plan developed by the department and approved the Mayor and Councfl. 4. Fund balances consisting of unspent transfers from the General Fund for annual operating expenditures should be returned to the General Fund at year end ��'�� 80 B-33 CIVIC CENTER AUTHORITY - RETAINED EARNINGS PRIORITIES Civic Center Authority Resolution No. 2505 established priorities for the establishment and reserve of retained earnings for the purpose of providing security for the financing of future lease payments under the Civic Center Lease Agreement, for use for major repair and maintenance projects and for new capital improvement projects. The resolution clarifies that the cumulative, rather than annual, excess of revenues over expenses is available for allocation. Retained earnings is defined as the cumulative excess of revenues over expenses as reported on the Civic Center Operating fund balance sheet. The priorities are: 1) Maintenance of an adequate working cash balance in the Civic Center Operating Fund. 2) Repayment of any advances from the City of Saint Paul General Fund. 3) Major repair/maintenance projects as approved by the Civic Center Authority. 4) Annual payment to the City's Civic Center Lease Fund for the financing of Civic Center lease payments in accordance with the Sale/Leaseback Financing Plan, which allowed for the remodeling of the Civic Center Ramp and Wilkins Auditorium. 5) Establishment and maintenance of a Sale/Leaseback Maximum Lease Payment Reserve for the purpose of providing security for the financing of future Civic Center lease payments. 6) New capital improvement projects as approved by the Civic Center Authority and the Saint Paul City Council after review by the Long Range Capital Improvement Budget Committee. 7) After consideration of items one through six above, any remaining unre�erved retained earnings will be available to the City's General Debt Service Fund for debt service payments on general obligation bonds issued to construct the Civic Center Arena and Parking Ramp. Deviation from these general priorities must be approved by resolution by both the Civic Center Authority and City Council. �qo�� 82 ��4---0�'�:��E�6� €i�re�ee--��s-�eea�s#a�e e��e-�$-�es�-ee�ts t-��e-��e��r�g��a�� i`6��i�e9Ei`�at@9-9�iBtt�� @9�B��9ri"rc� �9—ccCC9ticrc-�9r�i�G6irTC1`�kE�f-9i3 ��y�,,��' 84 a-3� S��'6��r��fri�A�i�B 6��A�H�+T6 F _-__'"__ ___ __"_"__ 'b ..".. `-.,...�... ......... ......�-�b..,.....a..,.. �.. .�._._�....�.... .... ....�- ��-'�� . � 86 D-J G�ZQri T�O� OSUTRLIT� Z7SOZZ2TC'1 C�IfS=I��2II7 v�I7 .TTL7T O A T A L7/� . 1...., 1......., l�:1 l :.,.,_.. � �ee�--�ro�s-� °�e��re—�eao=e-a�e��a-r ��i�—€�e�ee�►c ------ -------o- � ��i2--�eFt�l,`'"'-azzmi�� c c"'c—iiiir��"aiBi�TL�',}��ri-ir@�c'�E�cC�z��9rc��-@i3icci-err ��o��s�a�' . . 88 D-J7 �TLZL�rI'IITmiT�TTVLrD-DITL3iL'IVII f f f ��o-,�� . 90 DEBT SERVICE - TERM OF BOND ISSUE: Background: When bonds are issued, the interest rate charged and the total interest expense incurred by the City are dependent on the length of time over which the principal is repaid. Interest rates are one consideration in determinine the term and structure of bond issues. , In market conditions with a normal yield curve, a bond issue that is repaid over 10 years will receive a lower interest rate and will require less interest expense than one which is repaid over 20 years. ^- ~'-- --�'�--- '-----', In a flat yield curve environment, interest rates will not be higher for longer term bonds In addition to interest rates. the term and structure of a bond issue depend on other facts such as the useful life of a project revenue .projections and other overlapping debt service. ~'-- -a---~'--ge—e€-�ettge�—�e� be��s�s—�ks��ke Payment schedules for General Obligation Bonds usually require interest payments twice yearly, starting approximately six months after the date of issue; and principal payments once yearly, starting approximately 12 months after the date of issue. Normally bonds are issued in February or March before the beginning of the spring construction season. B-3$ 34 BOND REPAYMENT SCHEDULES Bond repayment schedules should be structured as follows: 1) The maximum term of Capital Improvement Bonds authorized by state law --='��is 10 years. 2) The term of Sewer and Water Revenue Bonds for the City's sewer proj ects will be-�9�ea�s e�-�-egs, depend�rg on market conditions and the useful life of the project being financed and City Council approval. 3) The term of Tax Increment Bonds will be the shortest time possible to minimize interest expense within the limits of the tax increments available to finance annual debt service payments. 4) The term of Revenue Bonds will be structured to match the useful life of the project being financed and the revenue stream supporting the debt service. �?=._ _________a .._�'_: �?:� ----=°=- �r...,___� �'�r Elements of this policy may need to be modified in response to changing regulations and conditions in the debt market. On a yearly basis, the Director of Finance and Management Services, the City Treasurer and the Budget Director, together with the City's fiscal sge� cansultant and bond counsel, should analyze these issues and if 9C�22��T�@-��1��iE-�6i��i}�t�2iT�i�te��iE—��6pic� btt�g�-� T�--�nFe-� conditions require that a bond sale be structured in a manner that is not consistent with this policy, City Council1-s approval shall be obtained by pzeliminary resolution in advance of the bond sale. �,cr1o'�/,��' 92 B-39 35 CERTIFIED LEVIES FOR GENERAL OBLIGATION BONDS The City shall certify the tax levies required for each General Obligation bond issue to maintain a positive cash flow. The annual budget will include the required amount designated for subsequent year's debt service. The annual budget for the General Debt Service fund shall include an appropriation for debt service payments for pending bonds proposed to be issued in that year. The appropriation shall be for both the current and subsequent year payments. The levies amounts should be based on proposed bonding ' recommended by the Mayor and City Council in keeping with the volicies in this document. . , 94 � 9�'�� B-48 36 SCHEDULING OF BOND SALES The City shall strive to sell its General Obligation bonds before March 15 each year in order to have bond proceeds in hand before spring construction contracts are let. If it is necessary to sell Tax Anticipation Certificates, they shall be issued at the same time the City issues its long-term debt . Bonds will be sold in a manner which will minimize pavment of nenalties on arbitrage earnings. Financin� for cagital improvement projects must be scheduled so that all bond financing is used within two years of the date of the bond issue. If necessarv. design and or construction should be contracted out to assure timely completion of a proj ect. Projects which are not proceeding according to schedule will be evaluated and a determination made as to whether bond proceeds should be reallocated. r a ��`�4 �� 26 FINANCING POLICIES The following Firiancing Policies relate to the ma�or sources of financing for City budgets: property taxes, state aids. bonding, utility charges, assessments. annual service charges, user fees, grants and fund transfers. The policies address issues of financing priorities, limits and estimation in a general and specific manner. GENERAL POLICIES: Back r�ound: Since 1982, the annual budget preparation process for the City has emphasized generation of non-property tax revenues. Given recent fluctuations in General Fund revenue sources and federal grants, prudent pro,jections are preferred when estimating revenues. , . �►��'��' � 2� F-1 FINANCING ESTIMATES FOR THE CITY'S ANNUAL FINANCIAL PLAN A detailed financing plan (revenues, transfers in from other funds and use of fund balance) must be prepared for all City funds showing public purpose, in order to ensure that the City's Annual Financial Plan is comprehensive and complete. The financing plan for each budget being prepared should be estimated in the following manner, unless prudent judgment dictates otherwise: 1) Revenue controlled by state law will be estimated at the level specified by the law, or the amount estimated by the State Department of Finance, whichever is more current. 2) Revenue from Federal, State or foundation grants will be estimated at 100X of the expected grant amount, if a grant award notice has been received. For pending grants, the revenue should be estimated at 90% or less depending upon the history of success for the particular grant source. 3) Revenue that is subject to fluctuation will be estimated at 97X of actual expected collections. 4) "Transfers In" can be recognized as a financing source only if there is a corresponding "Transfer Out" in the spending plan for the fund where the money is to be transferred from. 5) An estimate of use of undesignated fund balance will be prepared by the fund manager, and will be consistent with the fund balance policies identified in this document. For the General Fund budget, department revenue estimates for the actual amount expected to be received should be submitted to the Bu3get Direc*or. In order to prepare General Fund cash flow estimates, department personnel must also submit an estimate of cash receipts by month for each revenue estimate. � , o,,��P' �� 29 F-2 NEW REVENUE OPTIONS If existing General Fund financing sources are not adequate to maintain all existing services at current levels, the following re-venue sources will be co�nsidered for use in financing City services, with appropriate action by the Mayor and adopted by the City Council: - Skyway Operation and Maintenance Assessments and Service Charges - Street Lighting and Traffic Control Assessments and Service Charges - Winter Street Maintenance Assessments and Service Charges - Paramedic Fee For First Aid Services Without Transport - Economic Planning Service Fees - Ci�vic Center as an appropriate source for new revenue In addition the City will actively lobby for Federal. State and Metropolit�n funding for the operation and maintenance of Como Zoo and Conservatory and the Science Museum complex, Metropolitan funding for the acquisition and development, and operation and maintenance of regional parks; and Ramsey County funding for roads and bridges. During 1991, the following will be pursued by the Mayor and Citv Council: The Ci�y will work with the Metropolitan Council regarding a regional sales tax to support parks, arts, and other cultural activities: Work w�ith the Metropolitan Council and State legislators to assist in the financing of the Combined Sewer Overflow and Inflow & Infiltration projects. Seek lg�islation that would provide pavments in lieu of taxes for proper� taken off the tax rolls by ta:c exempt entities inside an existi�� T.I.F. district. This will help prevent loss of anticipated revenue to refund local bond obligations. Pursue an adjustment in the LGA formula to offset property tax losses due to tax-exempt properties existin�pursuant to state and federal statutes. Pursue state legislation to create a fund from present sales tax revenues to be targeted to cities for economic development that fo_cuses on increasing the level of retail activity. � . �j,4-i��'' 31 PROPERTY TAR FIN;ANCING: Background: The financing of City services has shifted toward local sources, primarily the property tax and user fees, due to federal and state budget policies enacted while the economy was in a recession and efforts to "reform" federal and state tax laws. A major Saint Paul budget goal continues to be "to minimize the impact and use of property tax revenue by controlling costs, and by seeking alternative financing for City services and by the upgrading and/or enhancement of the property tax base." �� o-��' � 32 F-3 PROPERTY TARES FOR THE GENERAL FUND The City shall strive to have the percentage increase for the property tax levy for the General Fund budget equal to or less than the average annual rate of inflation, as measured by the Consumer Price Index (CPI) for the Minneapolis/Saint Paul area. Where the percentage increase in the property tax levy is greater than the CPI-measured inflation rate, the City will first attempt to achieve a balance via spending plan reductions ---' =--`=-- -� =______ _____ -__; or other revenue increases � -«--------- - before considering an increase in the property tax levy. s...�z�sat�e�ti��.. a r ' ..�,. �r V�v rV":-•_ "" ��=�==----- -..._i :..,. � 'b -rr----- 1-�—T�t��e--�-s��€e�e�l-�-�e�tte�reit-rR-egses s�etr� r__�__:__ �_= ---o - - , __a ;_�.._��;_, a_---�- - - - - - �-�-; ____� �� FtPiJ E,'6--��"' ., -___- �___=_r�_== ��0-��.2�' 33 F-3A NEIGHBORHOOi,D HEALTH CLINICS - RAMSEY COUNTY CONTRIBUTION The Budget Office is directed to negotiate with Ramsey County to have the County assume the financing for Saint Paul's contribution to the neighborhood health clinics. If negotiations are successful, the Budget Office is requested to bring back a proposal, for acceptance by Council resolution, to transfer the City's property tax levy authority for the neighborhood health clinics to Ramsey County. The transfer would be contingent upon the Ramsey County Board giving assurance that there would be no net decrease in clinic support. . ��-��-�' 35 F-4 PROPERTY TARES FOR THE GENERAL DEBT SERVICE FUND The City shall minimize the property tax levy for debt service for General Obligation bonds. Earnings on bond proceeds shall be deposited into the General Debt Service Fund rather than into the Capital Projects Fund, unless otherwise specified by Council resolution or Federal laws pertaining to arbitrage. All interest earned on the $14,402,000 Capital Reimbursement proceeds from the 1988 Sewer Revenue Bond issue shall be used to reduce property tax levies for general obligation bond issues. Debt service for all outstanding General Obligation Bonds issued for sewer construction (both Capital Improvement bonds and Water Pollution Abatement bonds) shall be financed with user fees collected in the Sewer Service Fund instead of a citywide property tax levy. . � �,��' 37 F-5 CERTIFIED TAX LEVY REQUIREMENTS FOR DELINQUENCIES For the General Fund budget, an amount equal to two percent of the property tax revenue identified in the adopted financing plan shall be included in the certified tax levy for delinquencies (shrinkage) . For the General Debt Service Fund budget, no excess property taxes shall be levied for anticipated tax delinquencies. Instead, the City shall maintain a five percent mandatory reserve as a designated fund balance to offset tax delinquencies and to improve cash flow. R ��o'��' 39 CITY BONDING FOR 1990 and 1991 (BIENNIAL CIB): Backg.round: The 1986 Joint Debt Advisory Committee, representing the Saint Paul Board of Education, the Saint Paul Port Authority, the City of Saint Paul and Ramsey County, established the following major goal: "By 1992, the Maximum Amount of Overlapping General Obligation Debt For The Saint Paul Tax Base Should Not Exceed 3.5% of the Estimated Market Value Of Taxable Property." In order to meet the 1992 overlapping debt goal, the Saint Paul City Council on March 12, 1987 adopted the following goal: "The City of Saint Paul will strive to have its direct debt be less than 2.SX of the Estimated Market Value of its taxable properties by 1992." Based on the bond issue assumptions submitted to the Joint Debt Advisory Committee, the annual average amounts for new general obligation debt for the City of Saint Paul between 1987 and 1992 are: $2,000,000 for tax increment financed bonding, $2,900,000 for special assessment street paving bonding, $13,300,000 for property tax financed bonding, and $4,800,000 for interest free state loans for the combined sewer separation program NOTE: In 1987, the Counci.l did adopt the following goal to strive to have its direct debt be less than 2.SX of the Estimated Market value of its taxable properties by 1992. (i1`'l�'f'/�/�� 41 F-6 MARIMUM AMO�[TNTT OF GENERAL OBLIGATION BONDING FINANCED WITH A CITYWIDE PROPERTY TAX LEVY Capital Improvement Bonds will be the only general obligation bond issue in 1991 to be supported by a citywide property tax levy, High priority redevelopment activities which were previously financed with Urban Renewal Bonds will now be financed with Capital Improvement Bonds. Debt service for general obligation bonds issued for sewer proj ects shall be financed bv sewer user revenues instead of tax levies. The 1989 Joint Debt Advisory Committee ��projected the sale of up to , , S14.800.00 in Capital Improvement Bonds =-- �nnn _.,,a �3�8�9�A8A-in 1991. , , I�e�6�eps��-�es�3�-e��e�--�e eb� �e��e�tes s e r -- -- - , The C.I.B. Committee and Mayor -�_ __i�__`-� �� should limit�tg-6-��- Capital Improvement bonding to , , a�-$12,600,000 in 1991. > > 9�e�e�ge�a�.�t�a�r-€e�gi�e�—�ke Citv Council may increase �risthe amount if (1) there is additional unanticipated state revenue assistance, (2) the �9�981991 property tax levy for the General Fund Operating Budget is less than the �35�91990 levy after adjustment for inflation, or (3) � a combination of (1) e� and (2) . �e-6.-r�. � . e-ase-t�te-6et�e�-rs--a��e �te�esse-�l�e-6�.��g-�r�=-�-t� t�re�-€t�ee��e�t�e�-�e�e=�e�e�g�ae�'- -°'-:- -- -'-:-'� �e�-6e�te�-�-9b�}e�r-$e�t�s-�ss�xe�-re�seore� _ '-°'-- ='-_„ '-- C-'J'--- r• . . (�9e-��'�� 43 F-7 SPECIAL ASS�ESSMENT BONDING FOR STREET PAVING The City wiill issue special assessment bonding to finance 25% of the cost of pav�ing streets for those projects prioritized in conjunction with the Combined Sewer Separation Progr ��. It is anticipated that the amount of bonds issued will be approximate'ly , , , , , , , 53.000.000 for 1991. �yo��' 45 �' 8—="��6��-� • �tE.'-6��-8��2��-�1`9�-�t@�cac�v Fx-zii-ixirc99�cazi�tcrc�z-Frrcc-�-�6 ��-��e--e�r-aeee�e��e� ee�b�r��eiae�e��e�'$t�e�i-e��ne-rT86 �P-grs��g�-ia$s �e�-t�re 6��e-pa�bse#-t-ke-p��i�-�ne�r�-a� �� , n.. ,.:---'. i re�tia��r--�w �`� n�t�x-��T ��6,�o it��tt8� ��$ ��vv xi�uai—i��-OV� a—* � • r � ..�-.� *--��r�6;�La9--�a-rl� be-�eee�ae��-�3*--t�te-6�-t�es--�a1��6�rc9 �,-�=�6�i— �.�� T,. -•-i� _e� t,. _ a a_�_� - i - . F=8 SEWER SEPAR{ATION The City will aggressively work with the State of Minnesota and the le�islators to assist in financing the Combined Sewer Separation Program. EQUally, th� Mayor and City Council will review the potential of refinancing the Combined Sewer O��erflow Program. The criteria for such refinancing will be to assist in the stablizin� of sewer rates and to assure that future users assist in payin� installation costs Refinancing criteria would also minimize sewer rate increases durin�he next five to ten years. � � �-�-ye,i/�� 47 F-9 TAR INCREMENT BONDING FOR ECONOMIC DEVELOPMENT Revenue bonds are preferred to general obligation bonds for the purpose of financing the public improvement component of economic development or redevelopment programs. Projects proposed for financing with Tax Increment Bonds must meet the requirements established in the 1990 � > > > • City Council adopted guidelines for the T.I.F. The use of general obligation tax increment bonding will be limited to those projects where there is a significant public purpose involving a City owned facility when revenue bond financing security is inadequate, and provided a contractual agreement exists with the benefitting developers of the related private taxable development. No General Obligation Bonds will be considered as a financing source for the Tax Increment Districts without Mayor and City Council approval, and in accordance with all documents adopted by the City Council re ag rding T.I.F. �ge-�-8€€�ee-p�ege�-e-�s-t-��trs-�e�e�� e�--e�-e.e�s-��trg-�a��-� ��ta'�te-��• . �'c.9�'/�/-?-� 49 (NO CHANGES TO F-10) F-10 REFIINDING OF GENERAL OBLIGATION BOND ISSUES If interest rates for general obligation bonds drop below the rates of the bonds outstanding for existing general obligation debt, the City will consider refunding allowable bond issues if the projected savings exceed issuance costs plus $50,000, and provided no significant up front cash payments are required. The calculation of savings must use present value analysis. . . G�`✓qo��' 51 GENERAL FUND TRANSFERS FOR THE FINANCING OF SPECIAL FUNDS BackQround: In recent years, money from the General Fund has been transferred as financing for several Special Fund budgets. Transfers have been made for the following program areas: Planning and Economic Development, Winter Street Maintenance, Tree Trimming, Swimming Pools, Municipal Stadium, Housing Information, Utility Rate Investigation, Cable TV, Employee Picnic and Training, Joint Purchasing, Building Inspection and Design, and Alarm License Activities. � A�--�s�ee-ie�—€tttt�-�tt�ge�s�rait��e��cEee� t�r�e�eerit�ge �e��esge e�—�ke F-11 �Hi�-6i3 GENERAL FUND LIMITS For i�46 1991, the General Fund BUDGET REVENUE IS EXPECTED TO INCREASE NO MORE THAN 5% over �� 1990. `L�` F_.________ ______C___ __ _...,...I..l --o -r----- ��=ee� e��48�tx�ge��-5�6—��ts�..� , : e��re��;-_-=ixb��e=a��e� t�tat—�}e-�erRa 1-9^^ __-_a:_- ---=�-�aP ;a-:�qa -r----- -o e • r i .. �i.._... �t,. i non �L,. ..a �..a_..� ____ ___—__ ____ _.... .._...__..«....�.. ........b.�.... � � o�,��' �� 53 — F-12 BUILDING INSPECTION AND DESIGN FUND BILLING LIMIT For �A 1991, the General Fund appropriation to finance the City Architect's general annual inspection of City owned buildings will be limited to $50,000. Payment will require a bill with a description of services provided. Al1 design costs, incurred by the City Architect's Office for designing capital improvements to modify existing City owned buildings, shall be charged to a department's capital improvement project account. City departments do not have to pay for design costs incurred by the CitX Architect which exceed the preliminary estimate unless a capital improvement budget amendment is obtained prior to incurring design cost overruns. � � �y�o.�y��' SS F-13 STREET REPAIIR AND CLEANING FUND =e-- T�tie��ee�t�Fe-irrte�a�ee- Citizen requests for improvements in winter street maintenance will attempt to be met first with no extra cost solutions. Examples of these are better enforcement of snow bird ordinance and changes in deployment of snow plowing equipment. Solutions that have extra costs will be f�*_�►_��?�� -;='`�*,��++=`� reviewed bv the Mayor and City Council, and in accordance with all legal parameters which exist. � � �;�yo-��' 5� SERVICE CHARGE/ASSESSMENT FINANCING FOR OPERATING AND MAINTENANCE BUDGETS Background: Special assessments and service charges are levied annually against individual properties to finance public services that benefit those properties. The primary advantage of using assessment and service charge financing is that, in theory, those who benefit from a particular service are those who pay for the service. Assessment and service charge financing also allows for the recovery of the costs of providing public services from properties that are generally exempt from other forms of taxation. 1�ao disadvantages associated with assessment and service charge financing are its disregard for the property owner's ability to pay the assessment or service charge, and the negative cash flow resulting from collecting the assessment or service charge after the service is provided and all costs have been incurred by the City. In recent years, street maintenance, tree trimming, and Town Square Park operating and maintenance services have been financed with annual service charges. �eneral fund, or CIB dollars. While street sprinkling costs have been collected since the early 1900s, property owners have been annually charged to cover 60% of the cost of summer street maintenance, in a six category service level program, since 1973. A recent history of the rates charged per foot of street frontage for residential street maintenance service category is: 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 .44 .50 .78 .77 .65 .65 .69 .82 .92 .94 .97 ._,.. _�___:,,,. _�,..v_.... __..v.. ..,.... ,.a ��_ �e�e�-e�ea�s, o-- .... �_ ____-__-- -_-- -------�� s�r� esek��-s t��t-�eee��e� s e��*�ees e�ee-e;�e��=e . e�t�e-�-��es-e�s�ge�-�e��e e�e . �J ��rrr��z .�'�z�� e@ �g---&C:�i-�d�-�@9 Hei`@ ----. .._---- --•° ---.._... ---- •---- -°---i------� ---------- ------ =---- o-----= --- -- - - + r • r • . ` ��A-�� S8 (NO CHANGE TO F-14) F-14 GENERAL GUIIANCE FOR ASSESSMENT AND SERVICE CHARGE FINANCING FOR OPERATIONS � It is appro riate to use assessment and service charge financing only for City se�vices where direct benefit and the cost of providing the particular �service to a given property can be reasonably measured. The assessment and service charge financing will cover the total cost of the service provided, less any available revenue source dedicated to the service program and less any available General Fund contribution. The approval of assessment and service charge rates, and the operation and maintenance costs financed by assessments and service charges is included in the annual budget process. This requires that the necessary public hearings regarding proposed assessments and service charges be held by City Council prior to their adoption of the budget. . . U,�"yD�/�/°�� 60 F-15 STREET MAIN�'ENANCE The General Fund will continue to finance the cost of winter street maintenance ,as a transfer to the Street Repair and Cleaning Fund. {�ee � • Beginning with the 1987 budget, a nine-year plan to recover General Fund cash advances for street maintenance totaling $4,485,067 =-�'�� was implemented. �e�-t�e-�e�- ' - Beginning in 1988 and for the next seven vears, the Street Repair and Cleaning Fund will repay the cash loan at the rate of $542,500 per year, with a ninth year payment of $145,067. The 1991 calendar year represents year three of the eight ,years. The service charges levied annually shall finance the loan principal repayment expense. No interest will be charged. The ninth �r payment will be in 1995. . �o-�/a�' 62 , (NO CHANGE IN F-1��6) F-16 TOWN SQUARE PARK The annual costs of operating and maintaining Town Square Park shall be charged against downtown properties. . G�qe��'�P' 64 F-17 ERTRAORDINARY OPERATING AND MAINTENANCE COSTS FOR INSTALLATION OF ABOVE STANDARD PU�LIC IMPROVEMENTS. Whenever property owners petition for the construction of public improvements (such as street work, lighting, sidewalks and decorative streetscape items) which are above the City's standard design specifications, those property owners shall be charged annually for 100% of the extraordinary operating and maintenance expense associated with the installation of above standard improvements. As of 1990, the Citv Council adopted a new street lighting standard. As of August 1990, the Council is clarif�g further the policy which will be implemented in the 1991 budget. . . �',�°'iy�� 66 F-18 SHADE TREE PROGRAM The budget for tree trimming, diseased tree removal and stump removal in public parks and on boulevards shall be financed by the General Fund. Tree trimming, diseased tree removal and stump removal on private property will be financed by special service fees. Tree planting will be financed by the Capital Improvement Budget. Where fiscally possible and nrudent, the Tree Master Plan will be accelerated to be implemented within five years (1995) . Boulevard trees vandalized damaged diseased. or dead will be replaced within one plantin�ycle The shade tree uroeram does not impact the trees being planted in conj unction with the (CSSP) separated sewer program• . r �`"��/�1.� 68 F-19 SKYWAY OPERATIONS, SECURITY, AND MAINTENANCE The annual �osts of operations, maintenance (both current and preventive) and roof replacements for skyways should be assessed or charged to the property owners of the buildings linked by the system. Additionally, a capital replacement reserve will be established and an appropriate amount charged to the property owners. The Department of Planning and Economic Development and the Real Estate Division of the Department of Finance and Management Services s��will recommend to the Mayor and City Council, in ��5� 1990, an assessment and annual service charge plan which meets the long term capital maintenance needs,,. skywav security needs. etc. , of the system. The Saint Paul Building Owners and Management Association (BOMA) and the Downtown Council sk�s� �e will hav� been given an opportunity to assist in the development of such a formula. . . i ��o��l��P� �o UTILITY RATES: ��et�--€e�--6�e� S�e�u��°��T � , � �� T-��6-��-�a}ees-�e�tae�r�3�e�-t�e-��es��e�r�ef a=-_-.._,. __ ��._ ,�_�_--_, : --- T_,==== -o- -r---~ �� F-20 SEWER SERVICE RATES �t?-�''-`ee'== =- ge�te�-��e� €e�e�-g e�€e�a�}*-t�re-�ep$�t�e��€ n"�G�rC71"iEP—R1T2� �L..� t ' L. �L.,. e--�e�s-�te�-e�e�� i-�r€l��r�� .,......_.�:__ _t _a;.._..�� _.._--;�_a L,.,......._ _� a..,.�:,._,. :_ ..�... _.._�..v ..� ..�....r,.�.,.. „� a�..��J�.a , , ��-s��,�ee��e� s�o*�e e-��of�-i��ees es e��a�e�-�H--��egr-eat3— �-e��e�}e� Federal and State legislation on environmental and safety issues are mandating that the city implement new programs and/or increased service levels. The Gopher State One Call Excavation Notice System required by Minnesota Statutes Chapter 216D, ��has required an increased service level to mark existing sewer utility facilities and the proposed USEPA Stormwater Rules, published in the December 7, 1988 Federal Register, will mandate a Stormwater Outlet Permit and monitoring program. Other mandates mav be forthcomin�. The City of St. Paul should aggr�ssively pursue appropriate federal and state revenues for the implementation and the staffing of such mandates. Sewer rates may increase at a rate greater than inflation for sewage treatment costs controlled by the MWCC and for part of the City's financing plan for separating combined sewers. The accelerated combined sewer separation program, as required by state law, is scheduled to be completed by 1995. Rather than use Sewer Availability Credits and Lake Overflow Credits to reduce annual bills for the cost of sewage treatment, the Public Works Department will use the credits to finance sewer separation projects. The sewer separation projects, when implemented, will significantly reduce the flow of sewage to the Metropolitan Waste Control Commission Treatment Plant, and thus, significantly reduce ongoing, long-term treatment costs. The City of St. Paul will begin negotiations with the MWCC to establish a three-year rate adjustment formula for actual usage in prior � rather than adjusting rates annually based on estimated future use. The administration is to provide on goin� uvdates to the Council during the calendar year 1991 on the negotiation status. The sewer rates will be established annually for the Sewer Service Fund finance the debt service payments (interest and principal) on General Obligation bonds issued to finance sewer construction. Correspondingly, ��o-��' �� the propert� tax levies certified for those General Obligation bonds shall be ca�celled annually. Durin�? the 1991 calendar year, a review of refinancing the combined sewer overflow program (to assist in stablizing sewer rates ,and to assure that future users assist in paving installatior� costs) will be conducted. The administration is requested by the City Council to continue to work on the inflow/infiltration program and lobby for financing options from the MWCC. state and federal. etc. , arenas. The City shall finance its local share of sewer construction projects primarily with revenue bonds financed by the Sewer Service Fund. Depending upon affordability the City may finance some sewer construction projects on a pay as you go basis. ��:� °��e-�as�e�t-�te �s��-s e�--- - -- _�.,.,, ,�,. d�€€e-�e�rt�s�e€�-�t9�-�ae��=s rl-e��e�r-��e gt��te��e-�ec�� • r �fa'�7�� 73 Back¢round for W�ter Service Rates: The Water Utilit� Enterprise Fund provides for a potable and adequate supply of water to all �+ustomers in the service area for domestic, commercial, industrial and fkre fighting purposes. The service area includes all of Saint Paul and most of 'suburban Ramsey County, as well as some adjacent communities. The rates for water utility service are determined by the Board of Water Commissioners. F-21 WATER SERVICE RATES The water utility rates should finance 100X of the cost of operation, maintenance, construction, repair and debt service for bonds issued. Rates should provide for the payment to the City of Saint Paul for all direct and indirect services provided to the Water Utility. Rates should address the financing of a multi-year construction program to install a remote metering system to reduce long term meter reading costs. The rate structure should recognize that suburban cities should pay a higher annual rate for water purchased to fairly compensate for the fact that Saint Paul customers have paid for the acquisition, construction, and repair of the water treatment plant and expanded distribution system. As drinking water is becoming a more valuable resource, the rate structure should encourage conservation through such means as water saving devices and a rates structure which discourages volume consumption. The City will continue a water service rate surcharge on water sold to customers in the City of Saint Paul to finance reconstruction of local water lines that are required as part of the Combined Sewer Separation Program. The surcharge rate will be S cents per hundred cubic feet. The surcharg�e will be discontinued in 1995, when the major sewer construction is completed. � e,��' ��9 75 Back¢round for Fr�anchise Fees: The Saint Paul City Charter requires that "Every corporation or person exercising any franchise in, over, under, or upon any of the streets or public places or elsewhere in the city, shall pay to the city a franchise fee in a sum equal to at least five percent of the gross earnings derived or accruing from the exercise or enjoyment within the city of the franchise. . . ." F-22 FRANCHISE FEES The City of Saint Paul shall maintain the following franchise agreements: 1) Northern States Power Company with franchise fees ranging from 6.Sx - 8.6% depending on class of usage and requirements of state law. 2) District Energy Inc. , Saint Paul with an 8.7% franchise fee and a deferred payment schedule. Franchise fee on Empire Builder being paid on a current basis. 3) Energy Park Utility Company with an 8.7% franchise fee. 4) Norenco Steam Line Permit Agreement with payments escalating annually until June 30, 2001 beginning with $260,000 in fiscal year 1989- 1990. (Past due amounts were settled by a lump sum payment of $500,000 on or before June 30, 1988) Council File Ordinance No. 17567, adopted May 31, i988. S) Continental Cablevision with a 5% franchise fee on gross revenue. '3'h[�-�i�v hn 1, „ � - �n o� � � L, J �b i i e°•°��s�te#�se—�le e��e��ne-��G��e#�-se ��,�._.,, �.. __ ..:c��,a��'�-t-�re�e-�-�ee��e-�e-e�a�ttat�etz--e�-t-�e firvt fivr�v o � �' n i.t„ r r � �� - - �'^T"F� ' ``' `' ` "''' -- The Mavor shall recommend s�- to the Council closure on the five-year evaluation prior to the 1991 budget adoption. Pursuant to the energy system franchise and the district heating franchise, the City collects $15,000 from each of the franchisees which is to be used for payment of part of the annual salary of the individual appointed by the City Attorney whose activities are reasonably related to the regulation of those franchises. During 1991. the administration will review the nossibility of increasing the annual franchise fi u�, re i . � N��/�� 77 FEES FOR RESPONS�VE SERVICES: Back�round: It is appropriate City policy to set fees to cover up to 100X of the cost of service delivery, unless such amount prevents an individual from obtaining an essential service. Fees or service charges should not be established to generate money in excess of the cost of providing service. In some instances, City Council may deem it appropriate to set fees at a level below the actual cost of service delivery, if they determine it to be affordable public policy. F-23 BUSINESS LICENSE FEES �e��r�e-a�r-��ee-e��-trs��e�-�e�e€�eet _-r,_--_----.. =`'_-'--� =� -o— �.. F....... _.L.S_L .7_ _ __ ..F _ .�.]G........_. -T1fAYPPIfIPTI� A'F ...,..... _ ._ � _.._ .� _....�.. ._�.�_.. _-__"__ ___'- ""__' �_ "__ __ '__ ____- _- _"_____-__'_-, _"-____-__ . � s'--�oe �a�-ge� �e-s'_'_r==-_�ees�t3e-��t��rte�r-��e#� . ��e e-�ee s� e€ �e��ee�etr-€e . Criteria for business license fees are as follows: � Fees for licenses and permits should be set to cover costs of administration and enforcement unless there is an express policv decision approved bv the Mayor and City Council to subsidize costs. Fees should be adjusted annually. � Fees collected should be credited to the department, division or office doing administration or enforcement according to actual budget needs. � The License Division should take action to ensure that all businesses �equired by law to get licenses obtain them. � o,��' �� 79 F-24 PAR.AMEDIC F$ES The Fire Department will maintain fee structures which recover all costs associated with providing paramedic services. A basic transport fee will be charged whenever an individual is transported to a hospital. An advance life support fee will be charged when paramedics provide specialized emergency care. There may be a fee charged for non-transport services. Fees will be ad�usted annually, and collection will be sought � through insurance companies and through other third party payors, such as Medicare. The collection of fees for uninsured persons will be based on ability to pay. . r d-/�� 81 F-25 PARKING METER, LOTS, AND RAMP RATES Parking meter rates should be increased after analysis indicates revenues from the change will cover costs within six months. Rates should be consistent with the Downtown Parking Plan. The hourly, daily and monthly contract rates for City owned parking facilities should be adjusted annually to reflect the market place prices determined by the privately owned parking facilities. Annual fee adjustments should relate to the objectives of the Downtown Parking Plan: development incentives, space availability, business promotions, and traffic control. The issue of providing flexibility of rates in regard to other developmental �;oals should be studied. All parking lots and ramps should meet the securitv and lighting standards set by the City Council in 1989. License renewals should reflect light and security measures for each�arking lot and ramp. • [ �q�/�� 83 (NO CHANGE IN F-2li) F-26 SWIMMING FAGILITY USE FEES The fees charged for the Oxford Indoor Swimming Pool should generate the maximum annual revenue for the facility. The General Fund budget may subsidize pool operations, if money is available and Council approves the subsidy. Otherwise a reduction in pool hours and maintenance will be necessary. The fees charged for the City's three outdoor swimming pools should cover all costs for normal summer weather operation. If summer weather is cooler than normal, the General Fund budget may subsidize operations, if hours cannot be reduced. ��yv��y��' 85 F-27 RECREATIONAI� ENTERPRISES: FEES FOR SERVICE Fees charged for the Municipal (Adult) Athletics Program shall cover all program cos�s plus their fair share of field and facility maintenance at sites used by the Program. � Fees charged for use of Municipal Stadium should generate the maximum annual revenue for the facility. The General Fund budget may subsidize stadium operations if money is available and Council approves the subsidy. Otherwise, a reduction in stadium hours and maintenance will be necessary. Fees charged for the use of the Watergate Marina shall, as a minimum, cover operation, maintenance, and repair of the existing facility, and repayment of cash advances from the General Fund. Fees may be increased to finance debt service on revenue bonds if they are issued for the expansion of the facility. Fees charged for all other recreational activities administered by the Parks and Recreation Division should cover 100% of the direct program costs, and when the market price will allow, 100% of indirect costs such as facility maintenance and program administration. unless there is explicit direction from the Mavor and City Council to approve a subsidv for specific pro r� ams. i , + ��"�� 8� F-28 FEES FOR OBTAINING GOVERNMENT DATA Pursuant to the Minnesota Government Data Practices Act (M.S. c. 13) and unless otherwise provided for by Federal law, State Statute or rule, fees for obtaining government data shall be determined by departments based on the costs of providing such service. Fees shall not be charged for viewing of data only. Fees may be charged on a flat rate, a special rate or a commercial rate. The Flat Rate is calculated on a per-page basis. The Flat Rate shall be charged when the cost of providing requested records, documents, publications, or data is minimal. The current Flat Rate is 25 cents per page. The Special Rate shall be charged when the cost of providing data exceeds the Flat Rate. The Special Rate includes actual costs of providing data, including costs incurred in searching for, retrieving, compiling, certifying and making copies of requested data. Persons who are the subject of the government data may not be charged for the costs incurred in searching for and retrieving data. The costs of separating public from not public data cannot be charged to the requestor. Minnesota Statutes provide that the City may charge a reasonable fee in addition to the Special Rate for public government data which has commercial value and is an entire formula, pattern, data base or system developed with a significant expenditure of public funds. The Commercisl Rate is the Special Rate (i.e. , the actual cost of providing data) with an auditional charge which reflects all or part of tne developMent costs that relate directly to the data. The "Information Disclosure Request Form" has been designed to accommodate and facilitate the charging and collection of fees. (Policy Statement: Data Retrieval Fees dated November 1, 1986 outlines additional specifics on this policy. ) . . ��y��' 89 F-29 VARIANCE AND REGISTRATION FEES Fees for variance from the noise ordinance eit��e-- `'�= ° --=--`---�=�~ --F -=o---------- - should be set at a level to recover all � `--' -��'-� enforcement and administrative costs of the pro�rams. o�/.� ��y 91 (NO CHANGES TO F-30) F-30 PUBLIC HEALTH SERVICES PROVIDED TO NON-CITY RESIDENTS If non-residents use Saint Paul Public Health services, written agreements with the affected counties/municipalities will be established to recover the cost of the services. If they do not agree to contract for these services, the non-residents may be charged a higher fee for the services. ��Io-il.��' 93 (NO CHANGES TO F-�1) F-31 NEW ENTERPRISES - BUSINESS PLAN REQUIREMENT If demand for new services can be financed by user fees, a business plan for the proposed enterprise must be prepared. The plan must include a market analysis and identify a three year budget for the enterprise. The budget must provide for operation and maintenance expense, capital construction and repair, and debt service and positive cash flow. ��y��' 95 F-32 DEPOSIT OF R�EVENUE INTO FUND WHERE SPENDING OCCURS All fines, fees and revenues generated �—a—�esrrl��a—irc�9c=�o'�c2 shall be deposited into the budget activity/fund where costs for enforcement, implementation and/or management °� ``� - �--;-- is incurred. All receipts, cash and checks, shall be deposited with the City Treasurer or directiv in the City's bank account within 24 hours of receipt. The City Treasurer shall monitor deposits and report significant exceptions to the above, to the Mayor and City Council. . � ��9�� 97 REVENUE SOURCES S�IARED BY MORE THAN ONE FUND: i, Back�round: Various federal a�d state revenues and some dedicated taxes are shared by more than one City fund. The split depends on the purpose for the revenue source, where authorized spending is budgeted and laws and regulations which authorize use of the revenue source. Whenever possible, it is appropriate to use a declining revenue source to finance capital projects. If the revenue can be used to finance an operating budget, it is appropriate to use the money for either project administration or improvement maintenance, instead of ongoing operations. F-33 COMMUNITY DEVELOPMENT BLOCK GRANT: ESTABLISH APPROPRIATION FOR HUMAN SERVICE PROGRAMS Beginning in 1989, the City �-i-r� began a phasing plan to use 15% of the CDBG money for hwnan services delivery. One portion of the annual CDBG entitlement from the federal government shall be budgeted for capital projects and redevelopment programs in the City's Capital Improvement Budget; another portion of the entitlement shall be budgeted in the CDBG Fund for project administration, planning support, citizen participation activities, and housing information. The remaining portion will be budgeted for eligible human service programs as follows: 1989 1990 1991 Administration 20.OX 20.0% 20.0% Capital Projects 72.SX 70.0� 67.5% Human Services 7.SX lO.OX 12.5� TOTAL 100.OX 100.0�6 100.0� The amount of CDBG r�venue to be transferred from the PED Operations Fund to the Housing Information Office Fund in �8 1991 shall at least be equal to the percentage of the total entitlement that was budgeted in �$9 1990 for the Housing Information Office. If other City funds provide direct support services for CDBG activities, they shall be reimbursed through a contract for service agreement financed from the PED Operations Fund, r � �yo,�� 99 F-34 COUNTY AID FOR ROAD MAINTENANCE County Aid for road and bridge maintenance received from Ramsey County shall be budgeted at 60X for construction projects in the City's Capital Improvement Budget and 40X for maintenance activities. Of the maintenance money received, 25X shall be budgeted in the General Fund for the Traffic Program and 75X in the Street Repair and Cleaning Fund ��225 for the Street Program. The Budget Office and Public Works Department shall study, with the Ramsey County Public Works Department, alternative financing formulas and service delivery methods for maintaining county roads and bridges in Ramsey County. Recommendations for change shall be proposed to the Ramsey County Board and the Saint Paul City Council ` -�'�- '""^ '�--'--` �--=-`--- by June of 1991. ---o-= -______>-.. ��o�� o� F-35 HOTEL-MOTEL', TAX DISTRIBUTION: PROMOTE SAINT PAUL Ge�e��i��8b , �e�-�'�86, �se-s t-ke-r�v�r�4e��'��ze� 3� �e `� . , 1�-�o�te�rr-6e��tei��—$19(�98�-ic�-��B�Z'190-;-988-�ri-�48� , , �noo ei cn nnn i nec� _,a-i�nn nnn �nnn. �v � . r � • > > 1 A� ��V��r��VCr��J�e��C"'TD�V��0ITGVA2I—V��•..:1 , /�.....��...�� D....^.... ....� �L... • f ) 1!l� �i�eee�-ee�-�e��e�-�t� �epes��e�-�x�e�v��-3��$°, +�'�== `___=a r��P„r4 � , _a.. __„_..�_a __a a.._.. zrz �e�}*a}��*-��8. i%�-I��-P�e��ea 'F-s�_- - --- -----=-- ---- sT�e� - r------- — --r-- �e-��1�-�i�ee-�rr-e�e��ret3-se-�i�v-i�res ±� ?-q -----_ --}�a `'-�` `'-- °-°� -�---- ixixt�2e�r�j--ii-i�-eett�l�t��e-�`�-'n�n n n :_ �n 8'-r;q 1 ,�^^v9-12�-1�8 S;-�-59-,�88 i�11}8�9-�-�q� ,4t�-^�-'-��e t-#e-�6�e�t�ex�te��t�� l�3��k9i`��9-�l�i�?no --, _�Y---r-�-o �BC� �6—�9�9i9� --- ~�°- =�r�°==°___°°°�=ii--6�-8 1 Y�C��'�1..�'8TT tR'Ql��"tR��lE'[T�L'V3' a_L._ ____.]S_._�.S.._' -F - _—__—_-- --——_—_— — .,F ry e e �t.....:�...a � i Z'!IC"VL ZT1TC CCR..�PCTC��AL�"DCi'r '� a�L,. T..�..,.�-.�..... ..' Ll._ ,.� u.. ..l T.. �-i. .^.7: ..�...7 _ ..ti ..l _� _ L.....:.. C.. T1.7 LVl Background: Current Minnesota State law allows the City to impose a lod�ing tax of 5X. A 5% tax is levied against hotel room rates with fifty or more rooms. A 2% tax is levied aeainst hotel room rates with less than fiftv rooms. The law requires the Citv to dedicate 25X of the 3X tax to debt service on the Civic Center bonds and 95X of the 2% tax to fund a convention bureau to market and promote the City. The City has discretionarv use of 75% of the 3% tax and SX of the 2% tax. From 1986 through 1990 the City had an agreement with the Saint Paul Convention Bureau, Civic Center Authority. and the Downtown Council for f � ��'�� 102 distributio�} of the discretionary portion of the hotel motel tax. The City's Gene�al Fund received SOX of the 3X tax and SX of the 2% tax. The Citv wishes to increase the 2X lodgin� tax to 3X. The City will propose this increase as a part of its 1991 legislative package. The City also wishes to renegotiate a distribution of the discretionary portion of the hotel motel tax. The highest prioritv for use will be for those activities that attract people to Saint Paul. These activities will include tourism, recreation, shopping, eatine. entertainment. new retail, businesses, and workers. Promotion should include all areas of the City. By January 1. 1991, the City will sign performance based contracts with organizations who agree to carry out these promotion activities. Objectives and evaluation criteria will be clearly specified so the City can annually reevaluate the effectiveness of the organizations in carrying out promotion activities. � ' �,��' �=� 104 (NO CHANGES TO F-36) F-36 MUNICIPAL STATE AID Municipal State Aid received from the State of Minnesota shall be budgeted at 75% for construction projects in the City's Capital Improvement Budget, and 25X for maintenance activities. Of the maintenance money received, 25% shall be budgeted in the General Fund for the Traffic Program and 75� in the Street Maintenance Fund ��225 for the Street Program. � � �,�yo-�� 106 F-37 PARKING METER REVENUES AND PARKING FINES All parking meter revenues and the City's SO% share of parking fines shall be deposited in the Parking and Transit Fund �8 130. After the payment of City Council authorized parking and transit related expenses, the balance of the revenues will be transferred to the General Fund for property tax relief. For 1990, this amount is � `-a '-� '-� � �495.704. For 1991. this amount is estimated to be 5660,000. � ' �y��a y �o$ F-38 TRUNK HIGHWAY MAINTENANCE 25X of the Trunk Highway Maintenance Aid received from the State of Minnesota shall be budgeted in the General Fund for the Traffic Program and the remaining 75% shall be budgeted in the Street Repair and Cleaning Fund ��225 for street maintenance. Ne�otiations shall ber�in with the State of Minnesota for the City of St. Paul to obtain maintenance funds for local streets identified as trunk highways or regional roads maintained entirelv by the City of St. Paul. �� ' ��o GRANT REVENUES AND MANDATED PROGRAMS: Background Depending on resources and program objectives, limited grant monies from federal, state, and county governments, and from private foundations, organizations and individuals are available at various times to finance eligible capital projects, and program operation and maintenance. Grant monies available for capital projects will often require a long term City commitment to finance ongoing operation and maintenance expenses. Grant monies available for operation and maintenance will often require that the City finance the related capital improvement. Both types of grants then, may require a match of local resources. F-39 APPROVAL OF GRANT APPLICATIONS REQUIRED BY CITY COUNCIL Before any City Department1 e�-Office, or Division submits a grant application for a capital project or for a�e�-services to any government agency, or private foundation, organization or individual, the application must be reviewed by the Mayor and approved by City Council Resolution. The appl�cation must identify the immediate City budget ramifications and long range cost impacts. ._ as s=sT��-e�rge�tg-€i�at��r�e�€--e��-��e-��ee-�e�t�s-��ee�--�re�� For all grant awards made to the City, a Council resolution must be passed accepting the terms and conditions of the grant award, before acceptance of any money by the requesting City Department1 e�-Office� or Division. Also, the City's budget shall be amended by Council resolution to approve a financing and spending plan for the grant progran at �he time of approval of the grant award. An estimate of future years finar.cial obligations1 once the grant has been terminated. shall be identified on the resolution. ��e,i�� F-40 LONG TERM OPERATING AND MAINTENANCE COST INCREASE No grant applications shall be made for new City facilities if they result in additional operation and maintenance expense, unless a new dedicated revenue is made available to finance those ongoing costs. fl� .�atr�� ee�e��e-�}e—e�e�e-t�e�e� � F :,: , « ��Y�� 116 F-42 HARRIET ISLAjND The Citv shauld aggressivel�pursue federal, state, and regional park funds for the reconstruction of Harriet Island as it continues to be a regional facilitv. Also work with state and federal legislators in procuring such funds. � �/�0 � � C�rl� l SPENDING AND SERVICE LEVEL POLICIES The following policies will guide decision making for spending and service levels. The policies relate to service delivery to residents, services contracted with �on-profit organizations and spending for organization support services, increa�ed productivity, cost avoidance and revenue generation. Background: The ob�ective for City spending of taxpayers money is to produce results which positively address both short-term and long term needs of the residents of Saint Paul. While decision making for and regulation of service delivery cost money, the primary focus on spending is the production of a "street level" result which addresses a need which is deemed to be for the common good of the community. Spending for organization support services compliments the production of "street level" results. � � �,��-� . � �"y 47 SERVICE DELIVERIY TO RESIDENTS: S-1 SERVICE PROGRAM ANALYSIS AND PRIORITIES All City services will be annually sub�ected to cost savings analysis. All Citv services will be in accordance with the budget �oals and policies for 1991 and will be expected to complete or exceed all o� als and obiectives enumerated in the 1991 adopted budget 6��-: � .i�_ _t_.,i i t._ P@RS�E�Pi`P��93`—�i`9�fttfl--�RB�rv�sz—irr9 9 E'-- s' � 8 a..�Q°�T'=R-'r'`'"'`�irs'cr-aicvciBi��E�Si�tR�t�-9i`-8��le�*-9r�oiirns�cr r � �.. f�t'-�}ez $C1Y1PP4 "317 ��-"ciin�iixa�E,'� e��u�sc��ECi�ES3�E-i�� • '9'��'��L�CC[e��..�1 Y"��};Q CeTG E��E,—cx�fi@�e9�9—o=—sci�v=cc Y. .�� }�� All Citv services and contracts for services will be annually subject to analvsis based on the followin� criteria• - Resnonsiveness to citizen needs and requests• - Job performance standards: - Good mana�ement practices (Policy B-12) • - Productivitv: - Cost Analysis: - Efficient and effective budget practices• and - Use of volunteers t �`.. / . , �C��-/�f'��i 49 (NO CHANGES TO S-'�2) S-2 SERVICE LEVEL RETRENCHMENT FOCUS If General Fund financing sources are not adequate to maintain all existing services at current levels. City services within the following categories will be considered first for reduction, reorganization or elimination: 1. Services which are the primary responsibilities of another unit of government. 2. Services provided by contracts for services with non-profit organizations, when the service provided is not consistent with the City's mission. 3. Services provided at decentralized sites, when citywide alternatives are available. 4. Organization support services, when they will not adversely affect "street level" service. �� . �y 49 (NO CHANGE TO S-3) S-3 BASIC LEVEL OF SERVICE FOR LIBRARIES AND RECREATION CENTERS The closing, reduction of staff or hours of operation at recreation centers and libraries will not be acceptable as a cost saving measure. These basic services to the public will, at a minimum, be maintained at their current levels. The operating Department will continue to seek alternative and creative ways to increase the level of service provided. i �� 9� /� 5� (NO CHANGE TO S-4) S-4 LIBRARY MATERIALS BUDGET The amount of spending authority for purchase of library books and materials will be annually adjusted to keep pace with the Consumer Price Index (CPI) . This is to insure the quality of the materials collection is not diminished due to inflationary factors. , , �ya-��' 53 S-5 REQUIREMENTS FOR SERVICE LEVEL E%PANSION Unless mandated by state or federal statutes or laws. �expansion of an existing service program or addition of a new service program shall be considered only when a new revenue source other than property taxes can support all of the ongoing costs, or, when the requesting department can identify an existing service which can be reduced or eliminated. �e�g�e�rs��a�e��rt-�r-g�s�rt�e�es s#�1��ea-i�t s�ee-=-a�� . The Mayor and City Council will review service programing and estimate the future years financial obligations. --- .=��E' � ey _...a n<«.. n-----i -1'-i� �__ `.�� ...__ .___ ��.�� -� �r€a�a�s�-ga�e�e�-}�t-t�r��g 6e��s-te ��r'T��o-r� e�zi�� $�'R�T$��Te$t e'��B10� . � �_,�� y SS S-6 RIVERFEST ENTERPRISE Riverfest, an annual entertainment event sponsored in part by the Parks and Recreation Division, shall be budgeted as a Special Fund Enterprise with a separate activity to isolate costs and revenues. The City Council wishes to review the results of the previous year's event, review a profit/loss statement for it and the draft contract for services for the following year's event before Parks and Recreation Division enters into a contract. F,�,.._.'�.�i�r�r�e��ett�s �e t-e�_ �L_ __-- _--- �" -� _��__� ��' �__�_-- `-_ -cr--- �J "J" By Council Resolution. the City Council is in the process of reviewing policy �overning the expenditures of profits from the event Until that review is completed (prior to the 1991 budget imnlementation) �profits from the event should be spent on ��L=_ -- ___ -- "��,:� _:a '_'_��_..�__.,.. r-- -� �8��9 i° ��2�-�F9—Stt�—FE@�`e-s�=6i3—Q�ccic� svEiivrC@ �t#rc�-ra-1`Qs�6 L"-e��6 �re��-��re--ea�e��aia-�e�t�exte�rt�-ef ?��?-a=��--�--.-�-'_�.communit,y festivals and other community needs onlj� as designated b�y Council resolution. There will be no General Fund contribution to support this enterprise activity. v � � , �-�a �� 57 S-7 WATERGATE MARINA ENTERPRISE Watergate Marina is a City of Saint Paul owned facility on the Mississippi River which provides harbor services to recreational boat owners. The budget for operations and maintenance shall be prepared as an enterprise activity. The General Fund will not subsidize operations unless there is specific approval by the Mayor and Citv Council due to an emergency. , . , . �� o-�� y 59 (NO CHANGES TO S-'$) S-8 YOUTH FUND Chapter 404.10(6) of the Saint Paul Legislative Code authorizes that 10% of the proceeds received from gambling activity be granted to eligible recipients on the list established pursuant to Section 409.235. In lieu of contributing directly to eligible recipients, proceeds may be contributed to the City's Youth Fund which will remain in existence and disburse the money to eligible youth-serving organizations. Staff costs for administering the program (Parks & Recreation) and for auditing the use of money for public purpose (the Accounting Division) will be financed in the general fund budget. The Mayor and City Council will evaluate this program annually. . �9�� 61 CONTRACTED SERVI�ES WITH NON-PROFIT ORGANIZATIONS S-9 CIVIC NON-PROFIT ORGANIZATIONS •,•,..,. .•: :.,,. ..�..v _�.. _��_ ��. _c: ---- '"-- -�--- - -_..... _..- ----- ----- - ---------- ------ ----- � ---- .,.__....... _.. .,. °---- --•••- - ..,. _ __ _..._ --- - � r-- -- --a- r— 66ttih��R@9; __�----- —...a _... -----=— ?=�_---_.._a t_.. �i.,. �r�_ r- r-- —� " -� ��-—�T� ��s—�-t-�—�ee�a�—�te�r-��e€�—e�-g-e�ri�s-t�e�rs�e--�-�e=a�� _.:,, be—€e�t-keg � ..l..t..l.. ..FFI..1.....�1" _«.7 ,.FG..,.�•"..�.. �.,..__�.•,7.. ........7,..7 �,..5,.,�5�_. ..,....__I...... _.L.:..L. "'_____' ______="__J "" _______'__J r-- •--- --_—�_� r------� —_— -—=== -----=-- r r e r • 1TlA� F^._.7_._— "_11 L_ �L_ __"__ �_'_� __ __F�____� _'" �L_ _�.._�_.7 L^A_..� --o —r— —o—— r The City provides some services through contracts with non-profit organizations. The City will annually appropriate money in its budget for Civic Non�Profit Or�anizations. The amount of the appropriatior� will increase or decrease depending on the City's current financial condition. No organization is �?uaranteed funding in any given � irrespective of a prior history of receivin�, support. Contracts inay be provided for financial support, planning assistance, multi-program coordination, data sharing and grant application assistance. The City Council will make funding decisions based on the following principles: 1) Fu�din� decisions and contract terms will be based on City Council policies and priorities: 2) Preservation of support for health centers bv levera�ing Ramsey County £unds for these programs will be among the Council's highest priorities for 1991: 3) The City will fund services that are supplementar�or � o, ,��' �y 62 complem;entary to existin�; City services, and will consider which service�s can be provided more effectively or with less expense if they ar�e retained in the non-profit sector rather than provided by the Citv: 4) The Citv will support programs which work in partnership with other �overnmental bodies. non-profit organizations or private sources of funds in order to levera$e other investments and encourage cooperation in the provision of services. City staff shall provide a uniform application form and shall make information freelv available as to the funding schedule and policy guidelines established by the Council. The Council shall develop a plan foz evaluation of Qerformance of non-Qrofit organizations under the ternas and conditions of the grant. The City Council will refine direction of the COPP in 1991. �yo-i�/��' 64 S-10 CITIZEN PARTICIPATION The City provides operating funds for seventeen Citizen Participation Districts which have been recognized by City Council through a recognition process established by resolution in 1975. These funds provide support for District Council personnel, office, supplies and neighborhood communication. There is a federal requirement for a citizen participation plan. Because the City's federal Community Development Block Grant continues to be reduced and because federal requirements for formal citizen participation processes change, it is necessary to annually determine the level of General Fund dollars available for citizen participation. There will be no reduction in spending for communication activities (Early Notification System) . Spending for community organizers and staff support of District Councils will be measured against the need for and availability of other established service priorities in the City. f� -------- — ------� -- �_�.. �c.___ _.�......,.�...,., �.. �.... ...... ...........,...�� nI t F'ti"'i(il1lQ liP�'ll PHP 1!'Q CIIA� G Ai1l�—l;P� ` •••• ••••.••.•'•• _-_J __"_"__"O� __"��.� �....., b.,....�... ........ .,.�.��...,� ..,�..�.�..," �.:��.>�L.:��.." �a�t-��t�� ee�rs-��e�e��—m-�n�___�-�1-�-e�t�e�r:-- Contracts-for-Service will be required with each District Council�with measurable goals. policies. and a work plan. Equally. each District Council wi�l be expected to provide a forum for land use activities that are in keeping with the spirit and �ntent cf the 197Q's directive of the Federal Government. District Councils should be aggressively marketing their �r�� roots image and actively seeking fund sources other than government units. �ge�_e��-e-�—��.,. .., �tt�g�s—€e�� `'�••�-=' - -'-�••'a '-- '��-�-' The City shall provide fundin� for District Councils based on a calendar year, and not the federal fiscal year. When periodic reevaluation of the basis of funding for District Councils occurs, per capita basis funding should be considered for refining formulas, as well as other fundin�ption�. i � � . l� ya �� 66 S-11 ENERGY RESOURCE CENTER FINANCIAL SUPPORT City financial support for part of the operating costs for the Energy Resource Center for 1988 shall be no more than 80X of the amount appropriated in the 1987 adopted budget. The City will gradually reduce its level of operating support by SO% over the next five years. � As in 1990, 100X of this activity's financial support for 1991 will come from N.S.P. revenues. The City's budget will serve as a pass-through mechanism for the revenues. . o.��' �q 68 SPENDING FOR SUPPORT SERVICES, INCREASED PRODUCTIVITY, COST AVOIDANCE AND REVENUE GENERATION: 5-12 AUTOMATION AND INFORMATION SYSTEMS SUPPORT The major functions of Citywide Information Services are to design and implement Central support systems and to facilitate planning for and control of departmental systems. This is consistent with the mission of CIS as listed in the City's Administrative Code, Section 5.08. Therefore, the budget for CIS shall remain in the General Fund. The funding resources for designing, purchasing and running software programs which serve only the affected department shall be appropriated in that department's budget. Since Citywide Information Services Division (CIS) provides some measure of support to each City department in the information systems arena, it has the lead role in guiding and monitoring implementation of the Citywide Information Services Master Plan as developed with the guidance of Public Administration Service (PAS) and Public Technology, Inc. (PTI) and refined by the Information Systems Policy Advisory Group (ISPAG) in March, 1989. Based upon the Master Plan, CIS has responsibilities in the following areas: - Implementing distributed processing. - Providing citywide data base management and network management support to distributed processing. - Providing support to departments and offices in developing their own departmental/office information systems plan. - Continuing development and support of core administrative systems automation projects: - Support to the Information Systems Policy Advisory Group (ISFAG) and iL-s committees. - Microcomputer and Local Area Network training and support. CIS's role �eg��rr bg egan in 1989 to change from one of producing systems that automate existing routine, manual functions to a role that creates access to information at many levels for decision-making about municipal government service delivery. It is estimated that this transition process will be fully phased in by 1995 and will require greater involvement by the City's senior management team in both recommending central information service priorities and in establishing interdepartmental information system policies and procedures. . , a_,��' �� 69 In order to begin this transition while continuing to meet existing automation obligations, additional staff and equipment resources for CIS were recommended in the Master Plaii. These resources would provide for: - A technical services function - A systems and programming function for developing and maintaining automation systems - Implementation of a new-techniques/new-technology to be used in the division - Consultant support to provide assistance directly to departments for preparing departmental Information Systems Plans which are to be P4e�--'-r,�,�-maintained and updated by departments pursuant to the guidelines of the Information Systems Policv Committee. Finally, the City will invest no further in creating new controlled-environment computer rooms nor in expanding/updating existing computer rooms. Computer machinery acquired will be office-environment technology or will be located in the Citywide Computer Center in the Public Safety Annex, thereby taking advantage of existing computer-support capability at that location. . , �ya_,��' �o S-13 OTHER COMMUNICATIONS TECHNOLOGIES The Department of Finance and Management Services shall continue to study and make recommendations regarding the use of cable communications for City service delivery. , > , Citywide In£ormation Services Division�roposes continuation of CENTREX/CENTRON Customer Mana�ement System (CMS) throu�?h the life of the 3-year City, County and Medical Center CENTREX Rates Stabilization A�reement, which was renewed in Mav 1990. CMS, which Cit� Information Services tested in 1990, provides for cost-free telephone line-swappir�� and cost-free reassignment of pooled CENTREX features on the City's 1300 CENTREX lines. This flexibilitv will be important to the City durin� the renovation of CHCH. The cost of CMS, at $0.25 per line, and of� the features pool, should be budgeted in the CIS 01115 activitv. , , a-��' �� 2 5-14 SPENDING FOR CABLE COMMUNICATIONS SUPPORT By ordinance the Office of Cable Communications (OCC) has the lead role in overseeing the Cable TV franchise and stimulating creative use of the cable system by elected officials and staff. For this reason, franchise fees should be allocated to adequately support both the OCC and the City Council Cable TV staff. In 1989 and 1990, it is estimated that the cable franchise fee will finance cable-related equipment purchases for General Fund activities. Citywide Information Services (C.I.S.) will be responsible for the preparation and administration of the Master Plan for Video Facilities. Equipment purchased for operating department budgets must be consistent with the Master Plan for Video Facilities. CIS shall provide for a comprehensive evaluation of the first five year's perfott'mance of Continental Cablevision. The evaluation shall determine how well the terms and conditions of the franchise agreement have been met. This five-year review will be submitted from the Mayor's office to the City Council before the 1991 budget adoption The 1991 budeet will reflect Council adopted policy direction for the cable operations of the City. �. . • . . �-/t��' �� 74 . L` DAOIPTl�T7]ATTAL7 T�7 [�TL^T t n rini�v iv � ' _�� S-15 CONSULTANT USAGE Anv office. denartment or division will submit to the Mayor and Citv_ Council all reauests for consultants prior to RFP's being submitted for bid. Prior to June 1991 an indepth review by the administration on the use of consultants will be submitted to the Council The review will � focus on retrainine and retooling of Ci� emplovees to minimize the use of consultants. (This should be done in-house without the use of consultants) �� . (�,C y�-�� 76 S-16 TRAINING AND DEVELOPMENT The Training and Development Division of the Personnel Office shall continue to plan for, coordinated and evaluate training activities that cross all City departments and offices. The Training and Development Division will bring together the City resources needed to implement the training and will coordinate all efforts with appropriate departments and offices. The Training and Development Division shall °'_== r==-:'_'� coordinate closelY wi�th the Personnel Office's Organizational Development function to provide development and management support services for departments and city administration in: - Solving training and development problems - Facilitating performance improvement efforts Rlnnninc orrl i ..a.. _.a s_• a � o r 6 ba` �C�9 � i�� .��0 U" �a � � . �re � I 1e�e� �ae , , o ar�be 55 eal�r � ae�e,, ae'c� �-�"��ra�` b � SS 4Z,Q► ae� tio wri�r s��a e ,yo ` .�y�yti o� ,�ar �c. Gat�c �ti �.r S 4 �r 5�,s , .C�� v,�ces 1�,t�es �eer ee as a,yas � a � ��soa�r 1�e e� Go s�a�3 ,\ a� �ea,1 i � ea �r r 5� al � o.�a�- omoG °�a�� erti \, ✓ �� °�m 1 1� ;a�' �gt�p' �e.eR` \ �e�e ara ` a � , , �� \� ,�. .._..__., . . I, \�9aJ�r I�_ / I o n O L S-19 FACILITIE� AND INTERNAL ENERGY MANAGEMENT The objec ives of the City's Facilities and Internal Energy Management System wi 1 be to assist departments in implementing a uniform automated facility nd internal energy system to be used in connection with: 1) The p anning, programming and budgeting for new improvements and retro itting of existing facilities. 2) Day t day physical maintenance/management operations. 3) Colle tion and analysis of internal energy usage of the facilities in or er to identify usage problems and make more effective manag�ment decisions. 4) Techn'cal energy analysis of a specific facility improvement pro�ject as we l as a cost/benefit analysis based on time/value/life theory. 5 Com r hensive rec clin in Cit offices de artments and divisions. The imple entation of the ob�ectives enables not only more effective and systemati management decisions to be made about routine and extraordi ary improvernents but play a significant role in risk managemen _ and recycling. The Depar ment of Finance and Management Services shall work with Ramsey County to develop and maintain a comprehensive recycling program within City offi es. E uall a ressivel ursue otential sources of rec clin finance tools for the Ma or and Cit Council a roval. , . . �-,�� y 84 �I S-20 CITY MATC�iING FUNDS APPROVED BY CITY COUNCIL sAppropriations intended as leverage for revenue generatio , for maintenance of existing service� e� for economic developme t or special activities, will be considered whenever the pro,jected payback to the City is at least two-for-one. Matching ontributions to federal, state or other grants will only be allowed w�en the service provided by the grant is determined by the City Council t� be necessary and affordable. Financial impact analysis will be re uir d for each re uest Future staffin needs and maintenance needs et , will be included in the financial im act anal sis. All solicitat ons contributions and donations will be in accordance with the olic es included in this document. � ,, I I J �� p / 86 EMPLOYEE COMPEI�SATION: 5-21 BUDGETIN FOR ��-98 1991 SAIARY SETTLEMENTS The City ranted increases in most multi-year bargaining agreements between 1984 and 1987 that were significantly higher than the actual cost of living as measured by the Consumer Price Index for the Twin Cities ar a. For example, the CPI inflation rate for 1987 was 2.9%, while the average salary settlements, with comparable worth ad�ustments, was appro imately 8%. In 1988, the average salary settlement was slightly nder 4X (including comparable worth ad�ustments) , while consumer rice index (CPI) inflation was 5X. Budgets f r �9�9 1991 shall be prepared with the assumption that negotiate general wage and fringe benefit increases for bargaining units wil be at 2.SX and that comparable worth salary ad�ustments will be made i accordance with existing bargaining contracts. A- s-_�_,,,._ ae�age- CPI inflation rates include the increase in health care servi ces. Given this inclusion, salary settlements are anticipated to be les than CPI inflation if the City's share for health insurance . premiums s increased. Budgets for 1991 and 1992 shall be prepared with the assum tion that the ne otiated total acka e increase will be less than the PI and will be throu h the collective bar ainin rocess , I I < , I � � , ��° /�� 88 , , , S-22 PUBLIC WO S AND PARK LEVIES The admini tration will work coo erativel with Ramse Count to address the ossib lities of se aratin the Cit and Count levies for Public Works and arks similar to the wa Librar levies are se arated. This ma includ a le islative chan e � I . ,,��' �90 90 S-23 MULTI-YE PLANNING FOR COMPARABLE WORTH COMPLIANCE To ensur compliance with the 1984 Minnesota Local Government Pay Equity Act (Com arable Worth Law) , the City shall attempt to negotiate limitati ns to annual salary increases for those positions that have been cle rly shown to be over the corridor of the comparable worth line, after al owing for the appropriate market studies of those positions pursuant to the requirements found in M.S.A. 471.993. i i . . � s,�� 92 I 5-24 OVERTIME AY FOR ORDINANCE ENFORCEMENT ACTIVITIES Activit ana ers are res onsible for im lementin all olicies in this document n lieu of overtime a . Mana ers should be encoura ed to use flextime o accommodate enforcement and recreational activities. Overtime ay for enforcement activities which occur outside of normal business ours will be included in the annual budget. Enforcement activitie include noise enforcement, animal control, food inspection at community festivals, etc. . � ��y��' �� 94 ERTRAORDINARY SP�NDING: S-25 STATE PROP RTY TAX REFORM: COMPUTER ANALYSIS SERVICES For i-�38 1 91 the City shall budget $��8;899 120 000 in the General Government Account for computer analysis of various options to reform the State roperty tax system. The City shall further commence the developmen of a plan to establish an independent computer capability by 1992. I I I I . . ' ., D-/�� '9 i 96 �I S-26 IMPLEMENTATION OF TRUTH IN TARATION LAW I As mandat�d by the Minnesota Truth In Taxation Law of 1988, the City must pay amsey County governments its proportionate share of preparing and maili�g preliminary property tax notices to all parcels in Saint Paul. Th�s mandate will again require the City to budget $50,000 i a General Government Account. �I � a-i�z P' �� 98 S-27 1990 CENS�S �:f�frE&�#6E FOLLOW-UP BY PED � , � � In 1991 arious Cit documents are to be u dated with the new informati n ained b the census A work lan to u date Cit documents to relect the census will be established. The De artment of Plannin and Econo ic Develo ment is directed to be in re arations for a 1992 housin s rve based on 1990 census data. I � I . . ��o��y i � �oo D L'S A�TSW�LVD 1 f f S-28 STUDIES TO BE CONDUCTED IN CALENDAR YEAR 1991 � The Ci will review the feasibilit of creatin a De artment of Public Safet which would include both the Police and Fire Divisi ns under one Director Such a review will not redetermine the o itives or ne atives of such a creation but rather focus on cost s vin s du lications Charter lan ua e union scenarios and financ n sources• as well as the ositives and ne atives � There ave been several studies on a otential mer er of the Police and Fi e communication s stems. The Cit Council has not acted affirm tivel on such a mer er• however the Council does believe that b th communication-centers should move toward civilization of the e sonnel. An civilization of ersonnel should take lace with the a ro riate bar ainin units bein active artici ants. Durin the re ainder of 1990 and throu hout 1991 the Council will review the va ious re orts on consolidation with all effected arties. ,�c� The Ci Council believes that a Youth Leadershi and Enter rise Develo ment Pro ram should be created to assist outh with em lo ent o ortunities. Such a ro ram should be non-du licative and wo k in con unction with all ublic rivate and overnmental entiti s to maximize otential The ro ram com onents should be to the Co ncil for review as soon as ossible in 1991 �Where inanciall feasible the Cit should identif fundin sources for " " street reconstruction as related to the Se arated Sewer Pro ect. � The a inistration is re uested to work closel with the Count and State officials to evaluate mass transit ob ectives the fundin soure s fund allocations and LRT fundin durin 1991 E uall b resol tion the Cit of St. Paul is on record in su ort of LRT alon the Universit Avenue-Midwa Corridor ali nment. Further discu sions will be continuin in re ard to viable alternatives for the d wntown connections. � , � .� a./��' �y �o� � The C�ty Council is aware of the valuable resource volunteers rovi e With the a ro riate bar ainin units and all offices de ar ments and divisions a review of volunteer services should be under aken. Creative ex lorations of volunteerism should be ex lo ed while kee in stron the current volunteer ool servin throu hout our Cit I i � , . ��o.-�� i ios I 5-29 UNDERGROU D STORAGE TANK SECURITY In accord nce with federal laws promulgated by the Environmental Protectio Agency, the City �� has analyzed. with the assistance of a consultan the condition of its 38 underground chemical storage tanks to determ'ne what corrective and replacement actions must be taken � December 1993. The Risk nd Em lo ee Mana ement Division will continue to take the necessar action to assure Cit com liance with Federal laws romul ated b the E ironmental Protection A enc concernin under round stora e tanks. � ��1�0�0 , , �� 105 S-30 IN-PLACE t�SBESTOS OPERATIONS AND MAINTENANCE PIAN In anticivation of probable regulations being develo ed b the Environmental Protection A enc in accordance with the Federal A estos Hazard Emergency Response Act ("AHERA") , the City �� should complete a more thor gh analysis of its public buildings to develop an in-place asbestos anagement program until cost-effective removal can occur. The Risk Mana ement Division shall coordinate the analysis, planning process and in-ho se training efforts. The costs shall be appropriated against the Speci 1 and General Funds in proportion to related uses. A prioritiz d, phased action plan shall be prepared for future implement tion consideration by the City Council during 1991. � I . . � ��,��' � �o� s 3��x�z� S-31 DAVIS-BACO COMPLIANCE Davis-Bacon Act om liance is a re uirement under all federal rants received b the Cit T Davis-Bacon Act re uires that all laborers em lo ed b contractors on c nstruction work financed in whole or in art with federal assistance shall be aid wa es at rates not less than those revailin on similar construction work in the localit . In order to hel insure com liance with the Davis-Bacon Act the followin should be done: 1. Traini of mana ers involved in construction contracts should take lace t a minimum of once er ear This trainin is to include inform n the mana ers of Davis-Bacon re uirements and monitorin roced res Videota e should be used for trainin sessions where ossib e 2. Pre-co struction conferences which include informin the awarded contra tor of Davis-Bacon re uirements are to be held for all federa 1 -funded construction contracts in which Davis-Bacon applie� 3. All bi ders of federall -funded construction contracts are to be re uir d to si n a statement which will be submitted as art of their id which re uires them to com 1 with the federal Davis- Bacon �,ct. 4. On con truction ro'ects where an extremel low bid is received in com ar son to other bids Cit Purchasin should use their ud ment as to e uirin additional labor detail from the low bidder rior to contra t award. 5. Davis- acon monitorin forms and rocedures used in the De artment of Pla nin and Economic Develo ment have been reco nized b U.S. De art ent of Housin and Urban Develo ment and the State Auditor as a mode for the Cit of Saint Paul All Cit de artments are theref re to use the PED forms and rocedures for their monitorin of Dav s-Bacon. 6. Withho din of contrac ors' a ents should be used as a method to enforc contractor com liance with the Davis-Bacon Act when necess r . � ��,�� , . �""9 � � �o$ S-32 ENFORCEMEI�,T OF THE HOUSING AND HEALTH CODES It is imp�rative that all offices, divisions. and departments involved with hous n and health ordinances take a roactive stance in the enforceme t of the same. Du lication should be minimized coordination maximized and above all the nei hborhoods should be ositivel im acted such enforcement tactics. Swee s should be inter- de artmen al maximizin Cit re ources and minimizin the ne ative drain nui ance ro erties have on a nei hborhood. The Cit Council will review th recommendations b the 3PR Task Force durin 1990 and 1991 and will do t b resolution findin s that can be im lemented in a timel fa hion. Ni httime and weekend hours must accommodate nei hborh od rou s. The Divis on of Public Healt shall take a roactive role in determinin needed ch n es in State law for ro ert ri hts Nei hborhood rou s such as B ock Clubs Crime Watch Grou s District Councils etc. will be encour ed to artic ate in settin riorities for the clean-u and bettermen of their nei hborhoods The Certificate of Occu anc will enforce t e Housin and Buildin Code e uall with the Fire Code and will take swift action to correct violat ons throu h the Housin Court. Both the ivision of Health and Certificate of Occu anc will work closel w th the Police PED re abilitat'on office and the Buildin and Zonin Di isions to assist the nei hborhoods. Vacant s uctures meetin the criteria of the Nuisance Ordinance will be ex ected to be in front of the Cit Council within ninet 90 da s. The Hous Information Office will continue to rovide housin counseli to families and individuals needin housin assitance home ownershi o ortunities or housin relocation. i � ,,�.�� , � , �qa � BACRGROOND I In order for �the City Council to give clear policy guidance to the Administr tion, the following directives will be implemented by the approp�iate Department, Office, or Division. 5-33 FOCIIS N FAMILIES DOMESTIC VIO NCE 1. Formaliz and implement new city policy which no longer uniformly bar prosecution in domestic assault cases where there are no visibl injuries or corroborating witnesses. 2 . Reduce r te of dismissal for domestic assault cases below 25 percent and k ep accurate statistics which reflect reasons for dismissal. 3 . The Ci y will work with the Saint Paul School District, the Ramsey Co nty Family Violence Team and members of other organizations working to end domestic abuse and sexual violence to support ed cation in all Saint Paul Schools to change attitudes whi h foster battering and sexual violence. '� 8-34 SERVIC�ES FOR CHILDREN, YOUTH AND FAMILIES 1. The Depa tment of Community Services will develop the capacity to a vocate for and coordinate services to children, youth and fam' lies in a non-duplicative way, working to make city services more responsive to the needs of children, youth and families and o collaborate with other public and non-profit entities to s pport children, youth and families in Saint Paul. The highest p iorities of this effort to advocate and coordinate services for hildren, youth and families will be: *Encoura e development of high quality affordable child care througho t Saint Paul by actions including, but not limited to promo ing neighborhood initiatives which increase child care opt'ons in short supply, lobbying for increased child care sub idies for low-income families, and providing informat'on and assistance to child care providers so they can bett r use City and community resources to improve their programs. *Use cit resources, such as recreation centers, library faciliti s, and staff where such resources are available, to I , , �� a-��/� 9 support igh quality, affordable before and after-school child ca e, drop-in child care and sick child care througho t Saint Paul. Structure hours and enrollment in programs and/or make space available to other public or non- profit e�tities to provide children with safe and supervised after sc�ool activities. *Use cit resources and advocacy to support programs which prevent een age pregnancy and which prevent youth from dropping out of school. *Support development of positive alternatives for youth recreati n and socialization, such as chemical-free clubs and yout events. *Support early childhood development and child care programs which in lude support for development of parenting skills. *Coordin te available city resources with other public and private ntities to develop places for children and youth to find sho t-term refuge from family violence, such as crisis nurserie and safe houses. 2 . Initiat action to end duplication of State regulation of child care ce ters. Support child care centers and work with the state to prov'de health inspections and practices which protect the health an safety of children without City duplication of State regulat'ons and inspections. Pursue contracts with state to provide se ices through public health nurses as approved by the Mayor and City Council. 3 . Support and encourage development of shared living situations th�t match complementary skills and abilities, financial nee s, and family needs. Examples of matches are persons with isabling conditions with persons having no disabilities; single parents sharing child care and living responsibilit'es; and senior citizens with limited mobility with persons of lo or moderate income who are fully mobile. 4. Support development and availability of child care centers by providing ow interest loans to child care providers for renovations t meet licensing requirements. Work with other organizations to provide child care downtown for City employees and other dow town workers. 5-35 SERVIC 8 RESPONSIVE TO CITIZEN NEEDS 1. Involve community members in the process of developing schedules for neighborhood recreation centers and branch and area libraries whi h respond to the needs of the community, and is within budget constraints. Encourage development of volunteer support for s�rvices. Specific options which must be available I � _ �� . , �-'yo �� , to any commun�ity willing to trade off customary hours and/or provide voluniteers to extend service hours should include: *Saturdaly and Sunday hours for recreation centers, from coxnmuni�y centers through third tier centers, and branch and area li raries. *Evenin (after 9 p.m. ) open gym hours for recreational centers. The us of the options will be at a neighborhoods discretion a d will be in accordance with the appropriate bargained la or contracts. 2 . Recrea ional centers will take affirmative steps to develop and recruit articipation of girls and children of culturally and racially div rse backgrounds in sports teams and other, non- athletic rec eational programs. Department staff will set objective, m asurable goals to increase such participation and will report ack to the Mayor and City Council biannually. 3 . Libra ies will initiate programs which involve parents as well as chil ren for whom English is a second language in programs suc as story hours which encourage reading. Libraries will continu� and expand literacy programs for both adults and children. 5-36 HEALT� ISSIIES 1. The C ty will make enrollment of Saint Paul children in the Minnesot Children's Health Plan a high priority. The City will: *Provid� a condition in contracts for health care services that re ires a plan to enroll eligible children in the Childre 's Health Plan. *Organi�e volunteers and other outreach activity to inform parents of the availability of Children's Health Plan and other h�alth benefits and resources. *Seek f nds from other agencies to assist families in paying fees re ired for enrollment in the Children's Health Plan. *Contin e outreach to parents and children to communicate the nee for preventive health care, such as immunizations, prenata care and nutrition. 2 . Prese e core of public health services in Saint Paul that relate to pr active housing code enforcement, communicable disease cont ol, basic preventive health and dental services, animal contr 1 and removal of blighting influences in i , , � ��p-lf�� neighborhoodsl. �' 5-37 SENIORIISSIIES 1. Support nd encourage development of Block Nurse, Living- at-Home, chor assistance and other programs of neighborhood- based home he lth care and self-sufficiency for seniors and other persons throu hout the City where there is a need for such services. 2. Support �nd encourage accessibility and participation by seniors in fu 1 range of City services by providing appropriate recreational pportunities for all age levels, library services for persons w o have vision or hearing impairments, and accessibility for persons with mobility impairments to all City facilities. � o-��' � � �=� BACKGROUND In order for the C�ty Council to give clear direction to the Administration, where financially pruden and possible, the following policies shall be adopted and implemented by t e appropriate Department, Office, or Division. S-38 POLICE EPARTMENT - Develop and im lement a City policy educating the youth of the City in the negative aspects of the us of drugs. This policy shall incorporate the continued support for the D.A.R.E. prog am in all St. Paul elementary schools. Other programs may include presentations an group discussions involving the City's youth and community programs which ring the City's youth into contact with people who are currently or have in the past perienced problems with drugs. These programs can both educate the youth and pr ide a helpful service. This effort should be co-ordinated with the Independent Sch ol District and Ramsey County. - Develop and im lement an on-going training policies for police officers to assist in making them kn wledgeable and prepared to encounter gang problems, problems of drug use, racial t nsions, harassment of citizens, domestic and sexual assault, the gathering of evid ce, etc. - The City shall m intain a policy which will provide an appropriate response time based on a priori system for calls from the Police Department. Equally the Police Department shoul receive review and input from district councils, including but not limited to: a. Maintain ng a high quality call-in network system. b. Providin an adequate number of officers and police vehicles. - The Police will c nduct a semi-annual analysis of its level of service which will include: a. Respon time b. Commu ity relations c. Unmet s rvice goals which need to be accomplished - The Police shall ecognize the service levels of volunteer resources a. Determi e where volunteer resources can be utilized b. Assist bl ck clubs with training of volunteers - Where fiscally pr dent, implement Police and Community Together (PAC� program using Crime Prev ntion Officers in each of the four Police Team areas and civilian � � � . ' ��ya-��' � Community Crim Coordinators to increase decentralization of police decision-making, responsiveness o the police to community needs, and ability of police officers to work with community g�roups to prevent crime. a. All depa�tments shall work together with crime prevention officers to address problems posed by problem properties, problem busines�es, gang violence and other crime and neighborhood problem . THIS SHALL NO BE CONSIDERED ONLY A DIRECTIVE TO THE POLICE DEPARTMENT UT TO ALL DEPARTMENTS, OFFICES, AND DIVISIONS - Continue suppo for Neighborhood Crime Prevention grants program to strengthen block clubs and ther grass-roots efforts to prevent crime and prevent deterioration of neighborhoods. - Provide high vis bility patrols, using vehicle patrol as well as a walking beat to deter crime and increa e the perception of security in areas targeted by police and communities wor ing together. - Recognize dow town as a neighborhood in determining patrol strategy for streets and skyways. j S-39 FIRE DEPG4RTMENT - The City shall m�intain a policy which will provide an immediate response time from the Fire Departm�nt in order to do the following: a. Maintain a high quality call in network and strive to reduce response time even fu er to all parts of the city. b. Provide n adequate number of personnel, equipment, and locations. c. The City shall not cut the number of fire companies now in service. - The master Pla is the Fire Department's #1 priority where financially prudent. a. During 1990 and 1991, the City Council shall review the master plan and implem�nt any aspects of this study which will be a benefit to the City. b. The Fire� Department's budget shall reflect any changes to be impleme�ted as part of the adoption of specific master plan recomm�endations by Council Resolution. I 2 I , � h I�, ��9a�/fr•�-� c. Conductj a 5 year analysis of capital projects and programs identifying future de ands on budget, personnel, facilities and estimated reduction of servic s in other areas - Identify the un-u ed land resources in the City a. Distingui h current park land and City property which is not being us d to its fullest potential b. Present e reasoning behind this lack of use c. Determin the projected costs of the use of this land d. Propose�cost saving idea like: gravel trails vs. asphalt trails e. Develop lans to make the Burlington Northern Trail and Lilydale Park acc ssible and user friendly while holding costs for any i provements to a minimum f. Work wit� the County and State for the development of a complete Munger Trail - Maintain and pre erve the City's public parks, open space areas, natural resources and recreation faci ities - Complete plannin for Harriet Island park and marina in consultation with users and district councils. R view of the Marina should be in front of the City Council in 1990. Such a review sho Id have broad notification elements and should address the plan and the rationale o the same--including funding sources. -Complete the Co o Conservatory, Como Zoo, and Como Park Renovation. Work with the County to afely remove sand bars and algea from Lake Como. This will need some legislati e action and action by the Metropolitan Council. I , I 4 I I � � . ��D�� I 57 OPERATING POLICIES The following Bas'c Operating Policies provide specific direction for preparing budgets. The policies generally relate to technical issues which impact all depart ent and office budgets or common accounting and budgeting practices. i DISTRIBUTION OF C STS ACROSS VARIOUS BUDGETS: 0-1 ASSESSMENTS AND SERVICE CHARGES TO CITY-OWNED PROPERTY Assessments for capital improvements and service charges for annual operations o City owned property will be paid for out of Special Funds, when the f d directly relates to the property benefitting from the improvemen s or services, e.g. , assessments and service charges on property o ed by the Housing and Redevelopment Authority will be paid for by the HRA General Fund. Assessments for capital improvements include pr jects such as sewer separation, above standard street lighting a d street paving. Service charges include street maintenance, storm sewe system charge, Town Square Park, and County Waste Managementt The Real E�tate Division of the Department of Finance and Management Services w 11 �� collect assessments for capital improvements and annuallservice charges from property owned by other units of government. The City's General Fund will pay for City-established service ch�rges and City-initiated capital improvement assessments for City owned parks, playgrounds, open space, libraries, fire and police facilities, and for any unit of government not obligated by law to pay these assessments and charges. The General Fund will also pay the Town Square se ice charges for downtown churches. Assessments and service charges f r City ow*ied buildings that are leased to non-profit crganizat'ons will be paid for by the non-profit organization. Assessmen s and service charges for all other tax exempt property will be paid f r by the owners or lessees of the property. Assessmen s and service charges against City-owned golf courses, swimming ools and the municipal stadium will be paid from Special Fund budgets. If enterprise revenue is insufficient, a General Fund contribut on can be requested by the Mayor and adopted by the City Council. I i � '/�� , . � �9� 59 Background for Cen�ral Service Cost Allocation: The allocation of entral services cost is intended to distribute proportionate� al� costs of a service. This allocation procedure is applied to budgets that ar financed by federal and state grants, user fees and service charges. �ood cost accounting practices require that these costs be distributed equit ly to all funds using central services. In 1979 the City ntered into a contract with the consulting firm of David Griffith and Asso iates to develop a model cost accounting allocation system for central servi e costs. The model was established, and cost allocations have been produce since 1979. 0-2 CONTRIBIITION TO CENTRAL SERVICE COSTS �Budget requests will reflect an estimated amount for central se ices cost. The basis for determining the amount for the �8 1991 B dget will be Saint Paul's 1987 Cost Allocation Plan. The Budget irector will consider a particular fund's ability to pay central se ice costs when preparing budget decision making options for the Mayor a�nd City Council. The Accoun ing Division of the Department of Finance and Management Services i� responsible for maintaining the cost allocation plan. I I I I � , . � � � � �9a �� ' 61 Back round for Frin e Benefit Char es: Since 1979 each a tivity budget, has been assessed a charge for the City's contribution to e ployees' fringe benefits. Beginning in 1983 there are no exceptions to thi assessment. The fringe benefit charge is a fixed percentage of the salary dollars expended in every activity budget. The percentage is det rmined annually by the Budget Section. A recent history of the rates charged is as follows: Others, Others, Years Fire worn Police Sworn Full Time Part Time 1981 38. 55 34.302 22.594 2.209 1982 40.694 34.224 23.471 2.953 1983 44.333 38.773 26.694 3.245 1984 50.572 39.533 25.750 3.469 1985 49.I743 38.461 24.809 3.436 1986 50.�267 39.308 25.293 3.859 1987 49�692 38.847 22.158 2.624 1988 45 749 32.669 23.443 3.259 1989 41 709 30.798 23.698 3.165 1990 38fi022 25.581 24.548 4.871 0-3 FRINGE BEN�FIT RATES FOR SPECIAL FUNDS SPENDING PLANS Al1 Speciall Fund budgets, except for the Water Utility , will include an estima�ed amount for fringe benefits based on rates developed using prior yea� fringe benefit and salary cost ratios. For �9-98 1991, budgets wi111 be prepared using fringe benefit rates of: Others, Fir Sworn Police Sworn Full-Time Part-Time 0.0 28.0 26.0 7.0 Budgets w'th employees in certain trades occupations must also include an amount in addition to the fringe estimate based on these rates. The City will bill the Water Utility for actual fringe benefit costs incurred, rather than the fringe benefit rate, which is an average cost. , ��e��e��--ee��s� f�-_�_,. �.__--°_r_ �,=�r --o- - � i r . yp,��' � � � 63 (NO CHANGES MADE T� 0-4) � Background for Sin��zle Audit Costs: The U.S. Executiv� Office of Management and Budget, through Circular A-102 ("Uniform Administ�ration Requirements for Grants-In-Aid to State and Local Governments") , ha� set forth the audit standards for governments receiving federal assistanc�. These standards require a single, independent audit of all financial ope�kations across the entire organization. The costs of performing this at�dit is an allowable budget item in federal grants. 0-4 ALLOCATION F SINGLE AUDIT COSTS TO SPECIAL FUNDS Fund manage s of special funds receiving federal assistance must include a p ovision in their spending plans for single audit costs. The Chief countant has recommended that 1/2 of 1% ( .005) of the activity's total spending plan be budgeted as audit costs. The actual amount wil be determined by the Budget Director during budget deliberati ns. � � . . A,��' �� I 65 n'=�� ' �'��'� � �a�--- Pl`�E@i�G9"""'2ii�-es�t9ii-e99-�-9-crc-cce9ittT�2E�-�9i`-1-i3-9i�e . � �� i . , . � 0-5 ALLOCATION F WORKERS' COMPENSATION COSTS TO ACTIVITIES' SPENDING PLANS For the 1991 budget, Workers' Compensation costs will be reported by activit in order to identify the source of the costs and to provide an incenti e for activity managers to control costs where possible. The specif"c cost allocation plan will be developed by the staff of the Risk Manag�ent Division and the Workers Compensation Program. The General.l� Fund will maintain an adequate amount in fund balance as a reserve to cover catastrophic Workers' Compensation cases that cannot be borne b individual activity budgets and to fund future years commitment arising from current workers' compensation cases {�ee . The Risk Management Division will provide the Budget Office th Ma or and Cit Council with the reserve amount. . . � o_,��' �� 67 0-6 WORKERS' COI�[PENSATION - RETURN TO WORK POLICY The City ' has established a light duty/return to work program. In order to return injured employees to appropriate work as soon as possible the Workers Compensation section will provid all departments, the Mayor, and City Council: - Periodi lists of long term disability employees who are released to retu n to work but with restrictions that prevent them from returni g to their job at the time of the injury. - A brief resume of the employees's injury, medical status, work restric ions involved and the identity of the QRC assigned. The cost of the program will be shared by the department hiring the injured emp oyee as well as the department where the injury occurred. i � I I ,I I . . � ,��' �9d 69 1lAli7Al�CllC•i�T TL7/�CL7�T[7L'C�. IIISZ'RS�TLITZ . $S��E�1 II e . . . � • � e � e r r � � � � I I I . . y� i��' � � � �� , . , . , . , , i � i � . . ' �90_ i��' I, 73 o-4�=iS£P�-�A�3��^�=i6-S�£�6��4�Td��B6�6H-��0� � . , � � • I I 'i � �I I I I �I . . �J -�--ja,/�/.1� I �S SPENDING LIMITAT�ONS: Back round for B d etin For Promotions: During budget pl nning, managers often propose to upgrade positions and to promote employee . Typically, a position must be audited in order to be upgraded and an mployee must pass the appropriate civil service test in order to be promoted. Often, the results of these processes are not available to the manager at b dget preparation time. 0-�$ 7 BUDGET NG FOR PROMOTIONS AND RETIREMENTS All budgets �� must include appropriations for planne salary increases and retirement savings. Activity managers �� mus estimate for their budget: (1) anticipated position upgrades a d employee promotions, and (2) the replacement of expected retirement with lower paid individuals. The Budget Office sk�er�� shall requ st an appropriation in the Specified Contingent Reserve for those prora tions and reclassification costs which cannot be reasonably anticipate by the Activity managers. Anticipate� merit increases will continue to be included in all spending p ans. - - 0_��P' ��9 � � „ � , . , . , , , , , , , � � . _ �� -/ 79 , � , I . . � a,� �1� � �� 8� 0-�3 8 ERPENS� ACCOUNTS Expense Acc�ounts may be established in an elected official's or Director's 'budget activity using object code 0528 (Expenditure from Contingent Fund) . Payment for public purpose expenses may be made from this accou t, according to the following allowances, once a pay voucher, s"gned by the elected official or Department director (a designee i not acceptable) , and accompanied by a receipt or invoice and a stat ment of City benefit has been submitted, Expenses of a personal n ture are unacceptable. In a City ttorney opinion, public purpose has been generally construed to mean ". . .such an activity as will serve as a benefit to the community s a body and, at the same time, is directly related to the functions of government.". In additionl to elected officials, the Council Research Director and Directors o Community Services, Finance and Management Services, Fire and Safety ervices, Planning and Economic Development, Police, and Public Work ; along with the Executive Assistant to the Mayor, the Deputy Mayo , the Budget Director, the City Attorney, the City Clerk, the Personn 1 Director, the Director of Human Rights, and the Managing Director of the Civic Center and Water Utility �� mav be eligible. Up to $2,00, will be allowed per official per year. When employ es are not traveling out of town, meal expenses will generally n�t be allowed. Payment or reimbursement for local professiona}� or civic organization lunches, meetings or seminars where the topic iis related to the function of the Director will be allowed. Reimburseme�t for business meals will be allowed, in accordance with the Runzhei er Index, when business cannot be done at an alternative time. The �irector will be responsible for determining the benefit to the City, a�d specifying the public purpose in writing. No payment will be all wed if only City employees are present. Reimbursement for coffee and � astry for department head meetings is permissible if City employees a e present. The Director will be responsible for determining the benefit to the City, and specifying the public purpose in writing, including copies of minutes kept. Contributio� s up to fifty dollars to City employee recognition and retirement ommemorations on behalf of the Director will be allowed when he or he is representing the City. Payment or reimbursement will be allowed f up to fifty dollars for flowers and other token gifts for well wishes and sympathetic greetings for employees. Payments fo the following items are specifically disallowed by this policy: al oholic beverages, membership to a private club, expenditure budgeted for in other line item accounts; including but not limited�to professional association dues not required as a condition o� employment, furniture or office supplies and transportat on expense. I . . �-/�/°�� C� � 83 i 0-�-4 9 MAYOR'� ERPENSE ACCOUNT The Mayor �nay establish an expense account in the Mayor's Office budget activity u ing object code 0528 (Expenditure from Contingent Fund) . Payment fo public purpose expenses may be made from this account, according o the following allowances, once a signed pay voucher and accompanie� by a receipt or invoice and a statement of City benefit has been submittted. Expenses of a personal nature are unacceptable. In a City t�ttorney opinion, public purpose has been generally construed to mean " . .such an activity as will serve as a benefit to the community s a body and, at the same time, is directly related to the functions f government.". Up to $5,0 0 will be allowed and may be used for gifts for visiting dignitarie and officials, gifts for designated sister cities, entertaimm �t, lobbying expenses, travel, speeches and any other type - of expendi ure which has public purpose similar to expenditures in the adopted bu get with a maximum of $200 per gift. , , . - I D,/�/�� f 85 �I 0-�3 10 FAIR LA�OR STANDARDS ACT OVERTIME PAY Departments must plan enough spending to comply with the Fair Labor Standards A t (FLSA) . FLSA became binding on public employers in 1986 and regulat s minimum wage and overtime benefits for employees. In regards to vertime, the act identifies who is eligible and guides how a rate is s t and computed. I I I - - �yv-�� 8� Background for T�avel and Training Expenditures: By attending nat�onal conferences, City staff stay informed of developing technologies; ma ntain communication links with their counterparts in other locations; learn of, and transfer successful operating methods to Saint Paul; analyze and comp re many national equipment and service vendors in one location, and re�eive specific training not available elsewhere. However, there i� a need to balance the value in having City staff attend national confere ces with the cost of sending them to out-of-town locations. 0-�-6 11 OUT-OF TOWN TRAVEL Department and Office Directors will �_-�-= limit the number of employees ttending the same out-of-town national conference. The following actors should be considered if more than �ee one employees a�e is aut orized to attend: 1) An emp oyee is willing to pay for a portion of the travel expenses; or 2) The em loyee holds an elected or appointed position with the nation 1 organization involved; or 3) The em loyee has been invited by the national organization to partic pate in discussion panels, seminars, etc; or 4) The em loyee is required to attend because of state or federal grant �ules—: or 5) The em loyee will learn about useful new developments and products most e fectively and efficiently by attending a national conference when t e information is not available locally-: or � There emains a s ecific line item in the bud et to accommodate the ex end ture. City manag rs should encourage their employees to participate in local conference . aY _ . � �'F��" �� I 89 i 0-i-� 12 PARKIN4 ERPENSE REIMBURSEMENT Mileage all�owance for elected officials shall be set by Council resolution.l The Mayor nd the Directors of the Police Department, and the Fire and Safety Se ices Department shall have a City owned car provided them because th are on call for service twenty-four hours a day. The follow' g Directors shall be required to use their personal cars for City b siness and thus shall receive mileage and a $105.00 per month parki g expense reimbursement: Budget, Deputy Mayor, City Attorney, City Council Research, City Clerk, Civic Center, Community Services, E ecutive Assistant to the Mayor, Legislative Aides, Finance and Manage nt Services, Human Rights, Planning and Economic Development, Public Works, Water Utility, and Personnel. I I , i , I I - . . � ��9°-��` I 91 i I 0-�-8 13 REPAIF� OF POLICE AND FIRE VEHICLES INVOLVED IN ACCIDENTS Departmenb�s should annually budget for routine and ordinary maintenance of vehiclels. Expected estimates for repairs of vehicles involved in accidents �Should be offset by the estimated revenue from insurance proceeds. The City w'll give insurance companies the option of reimbursing City garages fo vehicle repairs rather than a private body repair shop. A private sh p must meet the satisfaction of the City. I �I �I I� � �