275725 WHITE - CITY CLERK ��
PINK ' FINANC �75�7�5
CANARY - DEP MENT I T Y O F S A I N T �A U L COUIICII
s�u� - ne oR File N O.
ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED, That the Council of the City of Saint Paul, having
adopted the Budgets for the City for the fiscal year 1981 in accordance
with Section 11.04 of the City Charter, to finance that part of the
Budgets to be financed by means of appropriate tax 1evy, does hereby
levy taxes on all taxable property within the City of Saint Paul, to
be collected in 1981 in the amounts set forth below, including an amount
for tax shrinkage, and the City Clerk is hereby directed to certify
this tax levy resolution to the Ramsey County Department of Property
Taxation in accordance with the applicable provisions of the City Charter
and other laws:
Tax Estimated (a)
Description Appropriation Net Shrinkage Tax Levy
OPERATION AND MAINTENANCE $20,861,035 $417,221 $21,278,256
DEBT
Bond and Interest Redemption 14,591,642 -0= �b� 14 ,591,642
TOTAL TAX LEVY $35,452 ,677 $417 ,221 $35,869,898
(a) Projection of anticipated differences between taxes
levied and taxes collected (2�) .
(b) Dedicated Reserve in lieu of mandatory 5% as
required by M.S. 475.61.
COUNCILMEN Requestgd by Department of:
Yeas Nays
�+lunt
Levine In Favor
Maddox �
McMahon
snoweite� __ A gai n s t By
�
SEP 3 0 1980 Form Ap d by Cit torney
Ad ed by Cou il: Date —
ertified sed by C ncil e retary BY
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Ap ro d by 1�layor: D e �� ��� APP� by Mayor for on Council
By _ ` BY
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,�t=YO.� CITY OF SAINT PAUL �
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347 CITY HALL
���� SAINT PAUL. MINNESOTA 55102
GEORGE LATIMER (612) 298-4323
�.YOx August 5, 1980
Council President Ron Maddox and
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Honorable Mer�bers of the City Council
Ci ty of Sai nt Paul , P�i nnesota
Dear President Maddox and Council Members:
The general fund budget which I am proposing for .198I will have a tax
levy inrease of $1,300,000 - from $33,000,000 in 1980 to $34,300,000
in 1981, or an increase of 3.9%. Based on current property valuations,
the additional levy of $1,300,000 will require a tax rate adjustment of
_ one mill. It would have been possible to maintain the amount of the
_ : __ ,_ ___.__ =1 evy-at-1 ast year's l evel _by deferri ng certai n capi tal expendi tu res, ..
but deferrals of this type do not necessarily lead to effecting economies.
They may serve only to increase costs in the longer term.
Specifically, the capital expenditures include $650,000 to continue our
tree planting program, $480,000 to make city buildings more energy
efficient and to conduct other energy conservation programs, and $170,000
to start a comprehensive survey of our sewer system. These items total
'' ' $1,300,000 and are shown as a line item in the specified contingent reserve.
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The appropriation for tree planting will enable us ta continue our
efforts to replace the trees lost to Dutch Elm disease. Our battle
against Dutch Elm disease has been a large scale and costly program.
Since the start of this effort, we have removed a total of 109,000
trees; 53,000 from private property, and 56,000 from Eity property.
We will have planted 51,000 trees on city property by the end of 1980,
and the $650,000 will pay for about 4700 additional trees to be placed
: on city property during 1981.
In a number of areas where trees have been planted during the past
several years, there is a marked recovery from the barren appearance '
that followed the renoval of the diseased trees. We need to continue
the tree planting programs at a .level which is consistent with our
objective of campleting the replanting of our boulevards, parks and
parkways in a timely manner. To defer this expenditure is only to delay
the time when Saint Paul will have recovered from the ravages of Dutch Elm
disease and our neighborhoods will have been restored to their attractive
urban settings. ,
As you know, we have been involved in an extensive energy conservation
program. Owners of residential and commercial property have_ been
encouraged to reduce energy consumption, and I believe it is vital to
the success of this program that we in municipal �overnment take firm
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Council President Ron f4addox and August 5, 1980
Nonorable Members of the City Council
and positive action to reduce energy consumption in city buildings and '
municipal operations. A series of mini-audits has been conducted on
city buildings, and the appropriation of $480,000 from the increased
tax levy will enable us to take action on some of the recomrnendations -
wh ich resul ted from the audi ts. The funds wi 11 al so enabl e us to talce
other energy conservation steps as the opportunities become available.
During recent months, there has been a great deal of concern expressed '
over the deterioration of streets, sewer and water systems in large -
urban areas. A report on our sewer system has recently been prepared
:- by our Planning Qivision and approved by our Planning Cnmmission. The .. - -
report stresses the need for a thorough examination of the entire systan
and .recommends that $170,000 be appropriated in 1981 to fund the initial
steps in the study. I support this recommendation and accordingly have
included those funds in the 1981 budget.
With- the exception of the sewer survey, the above items are capital itens � � � �
and would ordinarily be financed fran our capital improvements program.
However, prior commitments for funding from that program as well as our • -�
.{�°•° -<...°�. --: -sel�f-imposed- bon�iing l imi t;- have restri eted the funds� that are avai j ab1 e �:_ °°���'� �-�'
for these items. The capital improvement budget will be discussed in some '
detail later in this message. :
Although the proposed budget will lead to an increase in the amount af the
tax levy, there will be a-significant reduction in the mill rate. The city
mill rate is expected to decline fran the 1980 rate of 31 mills to about 26
mills in 1981. The combined rate, including the city, county, school district
. and miscellaneous units, is expected to decline from 115 mills in 1980 to less
+ than 100 mills in 1981. These reductions will occur because of a significant
�increase in the taxable valuation of property in Saint Paul , from $1,050,000,000
in 1980 to approximately $1,300,000,000 in 1981. This increase came about
principally because of a change from the limited market value concept of developing
property valuation to the present method of utilizing full market value.
During 1980, most owners of hanestead property received a reduction in
property taxes and in some cases the reduction was substantial . Our
preliminary analysis indicates that some owners of residential property
will receive further decreases in 1981 but in other instances, there wi11
be an increase in property taxes. The direction and degree of the change
will be dictated primarily by the change in valuatian of a specific
property. - .
The budget message to this point has centered on the amount of the tax levy.
Efforts to control costs and to maintain a stable tax levy by this admini-
stration and city council have been sucessful . In 1975, the tax levy
was slightly over $35,000,000. It has been maintained at a level substan-
tially below that figure in subsequent years, and the proposed levy for
1981, with its $1,300,000 increase over 1980, will still be $700,000 below
the 1975 level .
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Council President Ron Maddox and August 5, 1980
Honorable Members of the City Council
The total general fund budget I am recommending for 1981 is $102,500,000,
an increase of $9,880,000 over the 1980 budget or 10.7%. Principal sources
of revenue that helped finance this increase in addition to the increased
tax levy include substantial growth in the franchise fee, increased state
aid, and revenue fran tr-aditional munic-ipal sources.
We remain committed to our program of constantly reviewing city expenditures
: with the aim of reducing those costs to the lowest level consistent with
the provision of essential city services that are delivered in an effective -
: and efficient manner. A prudent and sound financial program is, . I believe, `�
essential to the continuation of the growth of Saint Paul and to the
redevelopment of its neighborhoods and business districts.
As you know, the preparation of our �budget is a continuing process. A �
nunber of projects are underway which could have an effect on city
finances but have not reached the stage where their impact could be
shown in the 1981 budget. Two of these projects are a review of current
city fees for business licenses and a study that-is designed to develop
sources of revenue for a regular and systematic paving program for our �
residential streets. A number of busrness fees have not been increased
since 1966, and a few have remained at a constant level for an even
longer period of time. A review has been made of the current fees and
� tentative recommendations have been made for a series of increases. We
plan to refine this study, make recanr�endations for increases and foward
the material to you for your consideration. On the other topie, residen-
tial street paving, a more detailed- explanation is preser�ted in the capital
improvement budget transmittal letter. _
BUDGET HIGHLIGHTS . �.. :
Parks Division .
One of the results of the energy shortage has been greater use of urban
parks. The proposed budget recognizes this fact and the resulting need
� for a strengthened effort to maintain the parks and facilities by
increasing the complement assigned to this division by 11 positions-from
266 in 1980 to 277 in 1981.
Police Department
- The canpletion of Town Square, the eonstruction of more skyways and requests
for additional officers for neighborhood and park patrol led to a decision to
increase the complement of this department. The total canplement was increased
by 11.3 positions. Five of the positions are sworn personnel. In addition two
positions formerly occupied by sworn personnel are now filled by non-sworn
personnel , leading to a total of seven additional officers available for
pol ice functions. � - _.; r :;:
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Council President Ron Maddox and August 5, 1980
Honorable Members of the City Council
Libraries
Our appropriation for library books has been inadequate during recent
years. For a number of years, the appropriation had been held at a
. constant level even though the prices of books were increasing under
inflationary pressures. The result was that�our library system was able
to order fewer and fewer books as the prices increased. Last year, we took
the initial step in reversing this trend by increasing the appropriation
for books. The proposed budget for 1981 includes a further increase of
$100,000 for this purpose as another step in remedying this problem.
Tree Maintenance _ :
During the past several years, our Forestry Division has devoted practically
all of its resources to canbatting Dutch Elm disease. A substantial part
of the funding for this effort was obtained from State grants. PJow that
removal � of diseased trees is no longer being carried on at its former
levels, we need to apply more of our resources to tree trimming and main-
tenance of both our recently planted trees as well as our older established
' ` ' °° trees: In the past, when this function had been performed on a regular ' '�� ` ''
basis, it was our practice to assess fifty percent of the annual cast
against property owners in areas where this service was being provided.
It was difficult to assess these costs in an equitable manner, and the
proposed 1981 budget shows financing for this service being obtained in
its entirety from the genera7 fund.
Personnel
There is a reduction of 12.7 full-time equivalents from the 1980 Ievel °
in the combined general fund and special funds budget. An increase of
50.6 positions in the general fund budget is offset by a decrease of 63.3
positions in the special funds budgets.
Capital Improvement Projects
I am proposing the sale of $10,500,000 in general obligation bonds fQr
1981: $5,375,000 in Captial Improvement Bonds and $5,125,000 in Water
Pollution Abatement Bonds. Thp Water Pollution Abatement Bonds will be
used for Phases II and III of the Thomas-Dale Sewer Rehabilitation Project. -•
,
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Council President Ron Maddox and August 5, 1980
Honorable Members of the City Council
Major projects to be funded with the Capital Improvement Bonds include:
--Watergate Court Settlement � $1,250,000
--City Buildings Energy Retrofit 400,000
--Fire Station 14 Construction* 200,000
-Neighborhood Comercial Area Improvement Program 300,000
--Economic Base Development Opportunity Fund 600,000
. --Davern Tunnel Relief Sewer � 300,000 -.`
--Computerization of Downtown Traffic Signals 300,000
--Citywide Lighting Improvements ' 250,000
Community Development Block Grant
Community Development Block Grant funds provide the other major portion
o£ Saint Paul's capital improvement resources. Approximately $7.4 million
in CDBG funds is being recommended for projects which benef it low and
moderate income people or -eliminate blight. Major projects recommended
- - for funding through CDBG include: .
:Margaret Recreation Center Sitework - $ 220,000 -------=_�--�
--North End Multi-Service Center Site Development 288,900
--West Seventh Multi-Service Center - 160,OOQ
--Swede Hollow Development 243,000
--ITA Program and Projects 725,000 .
--Commerical Rehabilitation Loans 100,000
--Multi-Unit Structure Rehabilitation 500,000 -
--0wner-Occupied Residential Rehab Loans and Grants 1,126,000
--Residential Steet Paving and Lighting Program . 1,783,000
--Citywide Lighting Improvements 250,000
--Rehabilitation of Red School House 150,004
--Cerebral Palsy School/Workshop 429,600
The proposed capital improvement budget has been modified somewhat from �
the recommendations of the CiB Committee. All changes and the rationale
for each are e�lained in detail in the transmittal letter accompanying
- the proposed capital improvement budget. I would Iike to highlight some
of the projects which I have added, however. They include:
--Davern Tunnel Relief System • $ 300,000
--Acquistion of Burns Avenue Site 110,000 �
�Construction plan monies for Hayden Aeights
Recreation Center Gym Addition and Sitework 15,000 '
--Demolition of Mattocks School 68,000 -
--Impravements at three community libraires: Sun Ray,
St. Anthony Park, and Highland 63,500
--Swede Hollow Development II 243 000
--St. Peter/Exchange Traffic Signal : 50�000 '' `�
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In order to recammend these pro3ects, it was necessary to defer others.+,
Aowever, I believe the changes are justified. I am�recommending deferral
of:
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• Council President Ron Maddox and August 5, 1980
Honorable P�embers of the City Council
--Construction funds for Parks Central Service Facility;
--Additional funds for the DPM/Shuttle Transit;
--Additional funds for the Youth Athletic Recreational
Equipment Program; ,
--fhe Cherokee Park Comfort Station; and
--Signing bus stops.
Conclusion , _.., :;>
� The 1981 City of Saint Paul budgets are the product of cooperative and,
_ � dedicated efforts of .department and division directors, city employees, - ' -
members of my staff, and particularly in the case of the capital
improvement budget, of representatives of the community. The process
has been long, arduous and often frustrating as limited resources
were allocated to competing and worthwhile needs.
Any of the persons who participated irr the preparation of the budgets
will be pleased to_ describe_ the process that was �followed and the
basis for the decisions that are reflected in the various appropriations.
- We 1 oak •forward 'to worki ng wi th�you at�d� wi th the Ci ti zens =Budget Advi sory �`` ` "` `' �
.
Committee during the examinations of these budgets.
Sincerel , . `
�
E E LATIMER
May
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