Spending/Services Reduction Alternatives

Item		Amount	
	Tax Supported Funds		
	Park Services		
1.	Close Tourtellotte Pool (Net of Revenues)
Impact: Eliminate seasonal employees.	á$85,000ñ	
2.	Eliminate Rasmussen Woods Education Program – Make Rasmussen Woods Passive Park
Impact: Layoff one full-time park employee and elimination of nature programming for Community and Alternative School.	á$34,000ñ	
3.	Eliminate Deer Abatement and Education Program
Impact: Remove all funding for public education and deer abatement.	á$30,000ñ	
4.	Close Land of Memories Campground
Impact: Eliminate seasonal employees, weekend collection of fees, supervision available only for groups who pay full fee/overtime rate.	á$15,000ñ	
5.	Eliminate Park Ranger Patrol Funding
Impact: Reduce evening/weekend CSO staffing/proactive enforcement in parks, such as Hiniker Pond/Sibley	á$5,000ñ	
6.	Eliminate Tree Trimming Contract on Boulevards
Impact: Eliminate contract cutting of boulevards, only cut by complaint at obstructive intersections.	á$85,000ñ	
7.	Eliminate City Participation and Funding Support for Boulevard Tree Planting
Impact: Discontinue funding share of boulevard trees and accordingly ongoing effort to reforest the City.	á$25,000ñ	
8.	Postpone Hubbard House Renovation and Funding Match
Impact: Do not fund matching State grants for needed restoration of house and grounds. Return grant funds to State. 	á$28,600ñ	
9.	Reduce Contribution to Summit Center by 20%
Impact: Reduce contribution to Summit Center by 20%. Senior programming absorbs the same across the board level as other city activities.	á$8,000ñ	
10. 	Eliminate Special Projects, weekend field maintenance, after hour field maintenance. 
Impact: Eliminate full-time park position. Charge association the additional labor at full-time overtime rate. Eliminate seasonal employment. Reduce seasonal labor.	á$100,000ñ	
11.	Eliminate Park Checks and Restroom Closings
Impact: Bathrooms will not be closed each evening. Facilities will be permanently closed if damaged by vandals. 	á$15,000ñ	
	Streets Services		
12.	Reduce Street Maintenance and Patching Repairs
Impact: Layoff one full-time street position. Impacts also on snowplowing, along with street repair materials. 	á$125,000ñ	
13	Eliminate Overtime – 12 Hour Shifts, Additional Plow Equipment, and Snow Removal Routes
Impact: Would significantly reduce snowplowing standards from half-day operation to two day standard through reduction of overtime, elimination of one full-time street worker (included above). Equipment and reduction of salt chemical usage would additionally affect the snow removal routes and confine removal to stagger hour shifts. 	á$200,000ñ	
14.	Reduce Mid-block Street Lighting
Impact: Eliminate power consumption and eventual removal of 170 mid-block lights.	á$20,000ñ	
15.	Reduce Right-of-Way Clean Up, City Beautification Projects, Special Maintenance Projects.
Impact: The reduction of staffing and seasonal labor impacts ability to undertake special projects.	á$50,000ñ	
16. 	Reduce Leaf Pick Up Program
Impact: Elimination of overtime and reduction of leaf pickup operation to three weeks. 	á$10,000ñ	
17. 	Reduce Overlay Projects by 20%
Impact: Less Maintenance on Streets. In long run would cost individual homeowners higher special assessment reconstruction cost. Lower overall street condition/paver rating in city.	á$75,000ñ	
	Police Services		
18. 	Eliminate funding for Crossing Guards
Impact: School District would determine reduction. 	á$68,000ñ	
19. 	Eliminate Elementary School Liaison Program
Impact: Layoff two police officers. Two remaining school liaisons will operate in high schools only, paid fully by the School District.	á$120,000ñ	
20. 	Reduce Available Staffing During Day Time Hours/Focus on Basics
Impact: Reduce one officer through attrition. Back up staffing will be provided by daytime administrative/investigative personnel. Streamline organization; focus back on Public Safety Management structure. Eliminate “special programs” to eliminate spending related to gang public education programs, motor cycle patrol, task force, etc. Eliminate overtime contributed to minimum staffing standard.	á$60,000ñ	
21. 	Reduce Community Service Officer Staffing for Stray Dogs, Evening Patrols, and Reduce Level of Parking Enforcement, Minor Traffic Accident Responses.
Impact: Layoff one full-time CSO position, and one full-time equivalent (two part-time) positions. 	á$60,000ñ	
22.
	Eliminate Police Response to Medical – Utilize Fire Shift Exclusively on Response
Impact: Less personnel at the scene to assist ambulance/MT	á$5,000ñ	
23.	Reduce, Eliminate and Defer Capital Purchases
Impact: Defer upgrade to tactical equipment, such as rifles, walk through medical detectors, wireless surveillance equipment, part time unit communications and other small equipment. 	á$43,000ñ	
	Public Safety Services		
24.	Reduce Level of Records and Dispatch Support
Impact: Layoff one full-time administrative support position, contract mail run. (Split Savings between City/County)	á$30,000ñ	
25.	Eliminate Stray Animal Impound
Impact: Do not pick up stray animals unless emergency.	á$8,000ñ	
26.	Eliminate Forgery Bad Check Follow Up Under LETTS Program
Impact: Officers on a low priority basis will resume this work.	á$26,596ñ	
27. 	Defer Civil Defense Siren Additions and Replacements.
Impact: Some areas will be under served and will have to rely on private pager system, i.e. cable TV early warning, etc. 	á$10,000ñ	
28. 	Eliminate Support to County for Crime/Computer Analysis Position.
Impact: Elimination of one-half time position reimbursement to Blue Earth County for special projects, reporting and statistical analysis elimination.	á$30,000ñ	
29.	Eliminate General Fund Contingency for Arbitration Awards. 
Impact: In the event that arbitration awards exceed 2.25% cost increase, offset costs in department with operational spending decrease. 	á$50,000ñ	
	Fire Services		
30. 	Close Fire Station Number Two and Dispose of Property
Impact: Slower response times to certain parts of the city under some circumstances. Saving in facility/upkeep maintenance Reassign live-in volunteer to Station 1 and 3.	á$15,000ñ	
31. 	Reduce Minimum Shift Overtime
Impact: Reduce overtime for call back situations during evenings and weekends. Three commanders and nine firefighters, plus one floater position assigned on (13 full-time firefighters) shift rotation. However, reductions could result in minimum staffing to fall to three at times when floater position or part-time volunteer cannot fill in. Utilize call-backs/all call volunteers.	á$35,000ñ	
32. 	Reduce Fire Loss Management and Transfer Back Rental Inspections to Community Development.
Impact: Transfer of one clerical position and one firefighter/civilian tech position to Community Development. Will enable fire personnel to concentrate on fire duties. 	á$5,000ñ	
33. 	Reduce State Fire Loss Management and DayTime Staffing Fire Marshall Position, and Deputy Commander Position, Chief Positions, and Floater position.
Impact: Layoff three full-time employees. Less fire loss management and daytime staffing will require more volunteer/part-time usage calls. More utilization of former public safety concept. 
NOTE: Number of firefighters increased by one in past 5 years, along with an additional 2-1/2 civilian employees with transfer of rental inspections to Fire management. Less inspection has been minimized with transfer of rental inspection duties.	á$160,000ñ	
34. 	Eliminate Civilian Fire Station Maintenance Position Originating with Assignment of Rental Inspections.
Impact: Eliminate contract employment services. On duty, firefighters will resume station maintenance and cleaning, as in past.	á$10,000ñ	
35. 	Eliminate Public Education Program.
Impact: Fire open house, handouts for children, and education supplies.	á$5,000ñ	
36. 	Eliminate Senior Reassurance/Call in Program
Impact: Only limited usage could be picked up by service club.	á$1,320ñ	
37. 	Reduce, Eliminate and Defer Capital Purchases
Impact: Defer defibrillator units, tools, compressors, and door opening replacement.	á$41,750ñ	
38. 	Convert to Regional Fire system, utilizing Mankato Full Time Coverage During Day, Pooling and Consolidation of Volunteers with Surrounding Cities, During Evening/Weekend. Resource/Capital Pooling for Better Economy. 
Impact: Short term would focus planning. Long term would likely provide greater coverage and response for all communities involved. Better utilization of response, training, economy and capital equipment saving. 	0	
39. 	Eliminate Non-Emergency Overtime
Impact: Eliminate Non-emergency overtime, and reduction of paid overtime for training. 	á$33,200ñ	
	Community Development Services		
40. 	Planning – Extend Review, Follow Up and Decision Making Time on Planning and Zoning Matters, Complaints, and Enforcement
Impact: Eliminate Planning interns and layoff one full-time planner position or inspection position. 	á$55,000ñ	
41. 	Reorganize Rental Inspections Under Community Development. Hire Back Planning Position, Inspector and Reassign Personnel from Fire According to Available Revenues. 
Impact: Change frequency of inspections to random, by complaint and six-year intervals. Fire Marshall conducts large apartment complex inspections and rental unit sampling, less frequent circumstance. (Savings under Fire Budget General fund Reduction). Funded by rental fees one-time inspection fees for new rentals. 	0
(See #32)	
	Engineering Services		
42. 	Contract Out Not Only Design on New Development but also Privatize More of the Construction Inspection and Administration.
Impact: Layoff one full-time engineering employee. Further issues with warranties and special assessment financing for construction. Experience shows that the City assumes responsibilities for mistakes and oversights if there are errors during the inspection phase of the construction. 	á$60,000ñ	
43.	Across the Board Reduction of Supplies and Outside Charges.
Impact: Could be picked up by an increase in rates or charges.	á$10,000ñ	
	Other General Fund Reductions		
44.	Reduce Library Support to Blue Earth County by 20%
Impact: Blue Earth County would determine reduction in City Library services.	á$105,980ñ	
45.	Eliminate Grants to Community Groups
Impact: Elimination of Grant to Symphony, City Band, Neighborhood Special Grants, Etc. 	á$27,174ñ	
46. 	Eliminate Payment to CCTV for Technology Support
Impact: Retain funding under franchise fee and reassign funding to right of way inspections and information technology activities. 	á$10,000ñ	
47. 	Reduce Outside and Civil Legal Services. Assign to Prosecution (Net Savings to General Fund)
Impact: Reduce utilization of outside attorney. More prosecution and utilization of department director/attorneys in house.	á$20,000ñ	
48.	Across the Board Reductions in General Fund Supplies, Charges Related to all Activities and Outside Services. (Exclude account already reduced) 
Impact: Will tighten the belt on the use of outside services and general supplies. However, these areas have been tightened up in the past based upon historical spending patterns and needs.	á$75,000ñ	
49.	Reduce Across the Board: Training, Travel and Conferences in General Fund.
Impact: Would proportionately reduce spending in Public Safety, Parks, Streets, all training, etc. out of state and overnight travel, along with other specialized non-mandatory training. Spending is usually focused on developing innovative methods and learning about best practices that will impact efficiently and specialized expertise within the organization.	á$50,000ñ	
50.	Volunteer Reduction in workweek by Approximately 20 Employees moving to 4/5 Time. (Assumes 50%/10 Employee Benefit to General Fund)
Impact: Savings of 8 hours per week per employee. Maintain their medical insurance participation at full amount as an incentive. Would need to be undertaken on a voluntary basis. Department Directors would have to approve the reduction and rescheduling so as to assure timely flow of work and proper coverage.	á$80,000ñ	
51.	Consolidate City Departmental/Organizational Structure (50% net Savings to General Fund)
Impact: Demotion of director level and/or deputy level positions. Consolidate department supervision. Streamline.	á$60,000ñ	
	Mass Transit Service		
52.	Convert to Automated Dispatching (Net of Cost)
Impact: Layoff dispatch support position. Change/upgrade call in system technical investment.	á$30,000ñ	
	Debt Service		
53.	Reduce General Obligation Debt Borrowing for Participation in Street Projects from $2.5 Million to $1.8 Million for One Year.

Impact: Undertake less street reconstruction projects, resulting in road condition/driveability problems in the future. Less debt service obligations for the life of the bonds. Subject to levy limit conditions would be able to utilize Levy capacity for other general obligations services. $85,000 per year/per issue.	á$85,000ñ	
BUDGET SAVINGS á$2,395,620ñ	
	Internal Service Funds		
	Intergovernmental Center		
54. 	Reduce Part Time Custodian Staffing Service
Impact: Less facility cleanup/suspend outside city/school usage. Charge higher rate for outside usage. 	á$20,000ñ	
55. 	Reduce Capital Expenditures
Impact: Defer office equipment and maintenance equipment/furnishings.	á$12,000ñ	
	Finance		
56. 	Less Timely Accounting Payment and Collection Activities and required reporting. (Net Savings to General Fund)
Impact: Layoff one accounting staff position. Could be avoided if accounting payroll is transfer from Civic Center. City pays for independent management system at Civic Center. Accounting/payroll can be folded into City system with overall savings. 	á$50,000ñ	
57. 	Reduction of Reception and Support Staffing (Net 20% Savings to General Fund)
Impact: Layoff one full-time staff support position. Longer waits for customers, more use of voice mail/auto-answering, turn around time, slower for distribution, assemble of public information. 	á$8,000ñ	
	Information Technology		
58. 	Reduce Support to General Funds, Public Safety and Regional Records System
Impact: Eliminate one Information System Technician position.	á$54,877ñ	
59. 	Reduce Capital Equipment Replacements and Upgrades (Net Savings to General Fund)
Impact: Eliminate/defer computer equipment, council chamber computers, monitors replacement in meeting rooms, etc. 	á$50,000ñ	
	Human Resources		
60. 	Eliminate Employee Assistance Program (Net Savings to General Fund)
Impact: Eliminate resource and referral for employees who are dealing with personal problems, grief related issues, family stress situations. 	á$27,742ñ	
61. 	Elimination of Independent Classification Benchmark Study (Net Savings to General Fund or Tax Support Funds)
Impact: The City is required to maintain, under State law, a pay equity system. Independent review from time to time is advised in order to assure impartiality and stability with State oversight. 	á$10,000ñ	
62. 	Eliminate Employment Law Resources (Net Savings to Tax Supported Fund)
Impact: Resource to maintain expertise in ever changing labor Human Resource environment. Keeps City up to date on the thousands of pieces of employment legislation that are introduced each year in the Legislature and Congress. Additionally, it is used as resource forever changing case law and rule regulations by Federal and State Agencies, such as DOL, EEOC, IRS, OSHA, DODOER, MDHR, MDES, etc. Compliance mistakes and labor awards result in long-term costs to City. 	á$5,000ñ	
63. 	Eliminate all Overtime, and Intern Support (Net Savings to Tax Supported Funds)
Impact: Eliminate annual intern position that provides support to Blue Earth County Intergovernmental cooperation contract and the COG/Small Cities better service by Mankato.	á$6,000ñ	
64. 	Renegotiate Contract openers with Labor Unions. Across the Board Wage Freezes for 2003 and 2004 (Net Savings to Tax Supported Funds) Total savings of $346,000/yr. is estimated 2004.
Impact: Potential savings of two to three general fund positions. Five overall city positions. 	á$178,000ñ	
	All Central Services 		
65. 	Reduce Training, Travel and Conferences by $50,000 (Net Savings to General Fund)
Impact: Would proportionately reduce training, travel, and conference in all non-general fund budgets. 	á$2,000ñ	
66.	Across the Board Reduction of General Fund Overhead Charges
from Central Services. (Insurance, Accounting, City Hall Administrative)
Impact: Will be offset with layoff in central services, and use of cash reserve in fund. 	á$140,000ñ	
	Central Garage		
67.	Decrease Shop Rates, Extend Depreciation Schedules (Net Savings to General Fund)
Impact: Layoff one full-time Central Garage support position. Will have a long-term impact on cost of maintaining fleet and operating equipment. Reduction of shop rates and overhead will save money. (Net Savings to General Fund)	á$20,000ñ	
	Public Information		
68. 	Reduce/Eliminate Publications, Newsletter, Calendar, Agenda Publication, and Radio Spots for Streets, Etc. (Net Savings to the General Fund) Eliminate $30,000 Chamber’s “Greater Mankato” campaign or alternatively incorporate in Lodging Tax.
Impact: Less communication and education of public/citizens on issues and city services. 	á$35,000ñ	
BUDGET SAVINGS á$618,619ñ

	Enterprise/Agency Funds		
	Civic Center Operation		
69. 	Eliminate Management Contract, Convert to Public Operations, Transfer Accounting and Payroll to the City ($150,000 Overall Deficit Reduction/Net Savings to General Fund is $25,000)
Impact: Improved overall accountable. Improve administrative/ insurance/finance economy/deficit reduction. City will retain most local employees. Public structure will be consistent with other City’s facilities after difficult start-up years. 	á$25,000ñ	
	Parking Fund		
70. 	Decrease Spending for Capital Projects and Increase Fees by 20% (Net Savings to General Fund)
Impact: Less maintenance in parking ramps that proportionately save tax supported funds. Could be offset by fee rate increases. 	á$1,000ñ	
	Economic Development Activities		
71. 	Decrease VIDC Contribution by 20% (Net Savings to General Fund)
Impact: General fund does not support VIDC, but could have some indirect savings allocating more time to community development employees who work on economic development matters the same fund. Many would argue that recession is not the time to cut back on economic development and recruit efforts.	á$5,000ñ	
	Eastwood Industrial Park		
72. 	Reduce Contractual Services ($2000 savings, No Net saving General Fund)
Impact: Less maintenance and appearance to the public properties and areas of Eastwood Park.	0	
	Housing Services		
73. 	Reduce Staff and Increase Central Services Contributions. Increase Payments to Central Services (Net Savings to General fund)
Impact: Layoff one housing staff. Increase funds share of central services, such as accounting, office, and overall overhead burden. 	á$5,000ñ	
	All Other Enterprise/Agency Funds		
	Utility Services	
	
74.	It is Expected that The Permit Fees, Back Charges, Health Department, DNR/MPCA Will Increase. Will Attempt to Recover State Budget Reductions and Personnel Loses With Local Government User Charges, Oversight Support, and Regulations. (No Impact on General Fund)
Impact: Layoff one full-time utility position in Public Works in order to avoid significant user rate increases.	?	
75.	Across the Board $75,000 Reductions in all Enterprise/Agency Funds in Supplies, Training, Travel.
Impact: Belt tightening has been done in the past. Training will be for mandatory licensing and required training.	N/A	
BUDGET SAVINGS á$36,000ñ
TOTAL á$ 3,050,239ñ

Revenue Enhancements Alternatives
Item		Amount	
	Tax Supported Funds		
1.	Double the Cost of Business Licenses, Liquor Licenses, Cigarette Licenses, Etc.
Impact: Current rate is not reflective of the regulatory time and responsibilities the City is required to undertake in administration/enforcement of the licenses and permits. However, the dramatic increase of fees probably will meet with severe opposition and claims of anti-business climate. 	$133,000	
2.	Increase Rental Licenses Fees. Consider Tripling Rate of $18 Year/Unit to $54/Year/Unit.
Impact: Current fees or for that matter proposed fees do not reflect the level of public expenditures associated with inspecting and administering the rental licensing program. If fees were increased to reflect public costs, the rates would be closer to $120 per year or $10 per month.	$78,000	
3.	Institute a $300 Non-Refundable Application Fee for all Properties Requesting a Rental License.
Impact: Reflective of the cost of initial inspections compliance rules and any landlord training associated with new rental license application. Fee is non-refundable. Cost is very similar to conditional use permit applicants. 	$15,000	
4.	Increase Fee for TFC Hearings on Loud Parties. Increase License Reinstatement.
Impact: Provide opportunity for landlords to amend leases or incorporate collection provisions from tenant deposits in the event the landlord is charged with license reinstatement or TFC hearing. 
	$5,000	
5.	Fee for False Alarm Responses
Impact: There are nine hundred false alarms annually. This would likely go down substantially if initial false alarms were originally charged out instead of suspended and reinstated through the warning process. $50 fee per false alarm response.	$40,000	
6.	Increase Building Permits to the Most Current State Fee Schedule (As modified by the City) so as to Keep New Residential and Repair/Remodeling Rates More Reasonable.
Impact: Overall, the building permit rates would increase approximately 40% resulting in an annual increase in revenue. Assumptions have been made for the leveling effect on building construction and impact that the new rate schedule could have on some construction. Note the State requires that the city report the fees and justify the expenditures associated with the collection/inspection. 	$250,000
	
7.	Double Permit Charges for Various Miscellaneous General Fund Permits, such as Curbcut Openings, Temporary Parking, Parade Permits, Park Shelter Fees, Etc.
Impact: Will hit non-profits and other organization the hardest. Even today we get regular request waive, a rather minute fee associated with these types of public assemblies or traffic related charges.	$10,000
	
8.	Increase Mass Transit Charges and Ridership Fees. 
Impact: Increasing ridership fees is an ongoing battle. Likewise, operational fees to other entities, such as MSU or North Mankato will discourage participation/ridership.	$10,000	
9.	Increase Special Assessment Rate from $60 to $66 per foot. Thereby Increasing the Annual General Obligation Debt Attributed to Street Reconstruction Projects.
Impact: Assessment rates will become an affordability issue during tougher economic times and recessions. However, the rate increase will lower annual debt service or the general obligation debt, enabling the City to levy more for public services provided the legislature lifts levy limitations.	$50,000	
	Other Non-Tax Funds		
10.	Levy a 5% Surcharge to all Utility Funds (Water, Wastewater, Refuse, and Storm Water.)
Impact: Generate $455,000 of revenue used to pay or reimburse the general fund for payment in lieu of property taxes. Cost of unfunded state regulation, unfunded public right of way degradation by other private utilities/telecommunications, and offset expected back charges by state agencies.	$250,000	
11.	Use of cash reserves for unemployment benefits, separation pay-outs, early retirement incentives, cobra assistance, and retaining reemployment assistance.
Impact: The City will have significant unemployment exposure, with layoffs. It is recommended a program be developed to entice early retirements, thus saving low seniority employees. The City has set aside reserves for separation pay-outs. 	$650,000	

TOTAL REVENUE ALTERNATIVES: $1,491,000