HomeMy WebLinkAboutItem 081
i
Date December 5, 2011 Item No.
Public Hearing: Truth in Taxation
Proposed Action
Conduct a "Truth in Taxation" public hearing.
Minnesota Statutes require a public hearing prior to adoption of the 2012 budget and tax
levy.
Overview
The purpose of the hearing is to present the proposed 2012 budget and tax levy and
provide taxpayers the opportunity to ask questions and present comments.
At the hearing, a succinct overview of the budget and tax levy will be presented. After all
persons have had an opportunity to speak, the City Council should close the hearing.
Adoption of the budget and tax levy will be at the regularly scheduled meeting on
Monday, December 19, 2011.
Primary Issues to Consider (Refer to responses starting on page 2)
• Adjustments to the Preliminary Tax Levy
• Budget Adjustments
Supporting Information
• Budget document. Please bring the document with you to the Council meeting.
DenursFeller. ante uector°
Tax Levy Financial Impact: $2 Budgeted: Yes Source: Various fiords
Related DOCUments (CIP, ERP, etc.)
Notes:
Primary Issues to Consider
Adjustments to Preliminary Tax Levy
The following is a list of adjustments which have transpired since the 2012 Preliminary
Budget was approved on September 6 that have affected the tax levy.
Budget item
Fund
2012
2013
2011 Budget Adjustments
1 011
Total
Increase /(dec. )
Revenues: Police State Aid
General
$ (5,004)
$
Revenues: Fire State Aid
General
(12,883)
(249.610)
Revenues: Police safety grants
General
(9,560)
(121,065) -0.5%
Finance - Senior Accountant
General
(1,446)
(788,027)
City Engineer
General
(30,5 36)
$ (909,692)
Gravel Tax
General
(8,907)
2012 -2013 Budget Adjustments
Revenue State Aid
General
(5,004)
(5,004)
Revenues: Fire State Aid
General
(12
(12,883)
Revenues: Gravel tax
General
(8,907)
Landscaping contracts
General
(14,561)
(14
Electric Inspector (contract)
General
( 31,082)
(45,887)
Economic Development - Greater MSP
General
(25,000)
(25,000)
Finance - Senior Accountant
General
(442)
(446)
Engineering - schools
General
(840)
(840)
Parks - Ice rinks - flighview Hills
General
7,000
7,000
Contingency
General
(81,178)
($9.295)
Fund b xl ancc ad)usirnent
General
-
(60,2)4)
Park Bonds - Series 2011 B (est.)
Debt
(9
(5,742)
Total adjustment
(249,610)
(252,616)
Preliminary tax levy
23376,570
23.999,701
Preliminary tax levy - Revised
S 23,126,960
$ 23,747,035
The estimated revised tax levies will result in an estimated five tenths of one percent
(.5' %) decrease (before reductions for Market Value Homestead Credit) in 2012 as
shown below.
2
2012
1 011
Total
Increase /(dec. )
Preliminary Fax Levy
5 2,?48,625 $
23376,570
S 127,945 0.64)
Adjustment
(249,610)
(249.610)
Net levvb /4:MVI W
23248,625
23.126,960
(121,065) -0.5%
Market Value Home. Cr
788,027
-
(788,027)
Ist Revised 'IaxLevy
$ 24,036,652 $
23,126,960
$ (909,692)
2
Tax Impact — Residential
The net impact of the revised tax levy on residential property is as follows:
Market Value - Pay 2011
S 234,600
Market Value - Pay 2012
S 229,700
City
Other
Total
School District 192 (Farmington)
Preliminary taxes - 2012
860
2,313
3,173
Increase /(decrease) compared to 2011
(')
42
35
Revised taxes - 2012
849
2,313
3,162
Increase /(decrease) compared to 2011
(18)
42
_ 24
Increase /(decrease) compared to Preliminary 2012
(11)
-
(11)
School District 194 (Lakeville)
Preliminary taxes - 2012
860
1,919
2,779
Increase /(decrease) compared to 2011
3
(3)
-
Revised taxes - 2012
849
1,919
2,768
Increase /(decrease) compared to 2011
(8)
(3)
(11)
Increase /(decrease) compared to Preliminary 2012
(11)
-
(11)
School District 196 (AV - Rosemount)
Prelfinmary taxes - 20t2
860
1,915
2,775
lncrcase /(decrease) compared to 1 .011
6
33
39
Revised taxes - 2012
849
1,915
2,764
increase /(decrease) compared to 2011
(S)
33
28
Increase /(decrease) compared to Preliminary 2012
(1.1)
-
(11)
The tax impact was based on the average decrease in values. Valuations and actual resultant
taxes may vary for individual parcels depending on property and structure characteristics and
classification.
3
Tax Impact— Commercial and Industrial properties
The net impact on a business property valued at $1 million for both 2011 and 2012 is as
follows:
Fiscal Disparities -
31%
The majority (60 %) of
the property taxes on
businesses are for the
State Tax levy and
Fiscal Disparities.
Other
Schc
State Tax - 28%
........ City - 13%
✓ -10%
4
City
Other
Total
S cho o l District 192 (Farmington)
Preliminary taxes -2012
4,638
33,123
37,761
Increase /(decrease) compared to 2011
232
2,120
2,352
Revised taxes - 2012
4,581
33,123
37,704
Increase /(decrease) compared to 2011
175
2,120
2,295
Increase /(decrease) compared to Preliminary 2012
(57)
-
(57)
School District 194 (Lakeville)
Preliminary taxes -2012
4,638
30,865
35,503
Increase /(decrease) compared to 2011
232
1,658
1,890
Revised taxes - 2012
4,581
30,865
35,446
Increase /(decrease) compared to 2011
175
1,658
1,833
Increase /(decrease) compared to Preliminary 2012
(57)
-
(57)
School District 196 (AV - Rosemount)
Preliminary taxes - 2012
4,638
30,766
35,.404
Increase /(decrease) compared to 2011
232
1,808
2.040
Revised taxes - 2012
4,581
30,766
35,347
Increase /(decrease) compared to 2011
175
1,808
1,983
Increase /(decrease) compared to Preliminary 2012
(57)
-
(57)
Fiscal Disparities -
31%
The majority (60 %) of
the property taxes on
businesses are for the
State Tax levy and
Fiscal Disparities.
Other
Schc
State Tax - 28%
........ City - 13%
✓ -10%
4
The Council has, since September 6, provided direction to modify the preliminary budget. Exhibit A
provides an overview of the pending adjustments and the net impact on fiord balances.
A summary of the changes to the General Fund are as follows.
General Fund
2011
Estimate
Revenues
Preliminary
Proposed Adjustments
Revised revenues
Expenditures
Preliminary
Proposed Adjustments
Revised expenditures
Net increase /(decrease)
Fund balance January I
Fund balance, December 31
Ratio: fund balance to expenditures
$ 20,789,338
46,329
20,835
2012
Proposed
$ 20,616,051
(20 6,30
20, 409, 748
2013
Estimate
$ 21,330,322
(1 77,74
21,152,5
20,616,288
(21,337)
20,
240,716
9,395,928
$ 9,6 36,644
47%
21,204,087
( 275,193)
20,928
(519,146)
9,636,644
$ 9,11 7,498
44%
21,651,305
(541,95
21,109,348
43,234
9,117,498
$ 9 ,160,732
43%
Exhibit A
Budget •:
As of •
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
GENERALFUND
ADJUSTED GENERAL FUND SUMMARY
Revenues as adjusted
Expenditures as adjusted
Netlncrease /(Decrease)
Beginning Fund Balance as adjusted
Ending Fund Balance as adjusted
Fund Balance as a Percentage of Expenditures
20,835,667
20,409,748
21,152,582
20,594,951
20,928,894
21,109,348
240,716
(519,146)
43,234
9 ,395,928 9,636,644 9,117,498
9,636,644 9,117,498 9,160,732
47% 44% 43%
(1) 'Eliminate partnership with Greater MSP
(2) Transition electrical inspections to contractor
(3) Senior accountant transition
(25,000)
(25,000)
(31,082)
(45,887)
(442)
(446)
(4) Add Highview Heights ice rink
(5) Fire state aid
(6) Police state aid
(7) Reduction in health insurance premiums
(8) Reduce schools and conferences for Engineering dept
(9) Reduce levy for use of fund balance
(10) Gravel tax
(11) Landscape contracts
(12) Reduce levy for adjustments to 2011 budget
Senior accountant transition
City engineer transition
Fire state aid Page 1
7,000
7,000
(12,883)
(12,883)
(5,004)
(5,004)
(81,178)
(840)
(8,907)
(14,561)
(1,446)
(30,536)
(12,883)
(89,295)
(840)
(60,234)
(14,285)
Exhibit A
• • A •
Police state aid
Gravel tax
Police traffic safety grants
OTHER REVENUES
(1) Increase Fire State Aid to actual
(2) Increase police state aid to actual
(3) Increase police traffic safety grants based on actual
(4) Dakota County - gun range clean up
(5) Gravel tax
TRANSFERIN
(1) Eliminate Liquor Fund transfer for Econ Dev marketing strategy (to be
transferred from Communications Fund)
(2) Transfer from Communications to fund Econ Dev marketing strategy
(previously funded with Liquor transfer)
Total Revenue Adjustments - Increase (Decrease)
Total Expenditure Adjustments - Increase (Decrease)
Net Adjustments to Fund Balance - Increase (Decrease)
COMMUNITY AND ECONOMIC DEVELOPMENT
(1) Eliminate Greater MSP partnership
(1) Eliminate electrical inspector position
Wages
Overtime
PERA
FICA
Health insurance
Life insurance
LTD
Dental
Workers comp
Unemployment compensation
Motor fuels
Clothing
Equipment parts
Cell phone
Schools and conferences
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
(5,004)
(8,907)
(9,560)
22,858
22,858
22,858
5,004
5,004
5,004
9,560
(6,764)
(26)
(26)
(1,839)
41,272
8,907
8,907
(396)
(396)
(X000)
(20,000)
(2,213)
30,000
20,000
46,329 (206,303) (177,740)
(21,337) (275,193 (541,957
67,66 68,890 364,217
(25,000) (25,000)
(71,413) (71,413)
(103)
('103)
(5,158)
(5,158)
(5,471)
(5,471)
(6,764)
(6,764)
(26)
(26)
(171)
(171)
(508)
(508)
(396)
(396)
14,716
(2,213)
(2,213)
(160)
(160)
(400)
(400)
(345)
(354)
(408)
(408)
Page 2
Exhibit A
• • A •
(2) Senior accountant to full time
Wages
2011
2012
2013
PERA
ESTIMATE
ESTIMATE
ESTIMATE
Dues and subscriptions
1,266
(102)
(102)
Electrical license
115
(80)
(2) Contract electrical inspections
47,840
47,840
GENERAL GOVERNMENT FACILITIES
85,700
11,000
(1) Landscaping contracts
(1,599)
(1,513)
FINANCE
(1) Senior accountant transition (new hire 11-01-2011)
9,975
9,975
9,975
Wages (including sick and vacation)
(24,219)
(413)
(417)
Severence - vacation
9,197
15,196
PERA
(1,756)
(30)
(30)
FICA
(1,149)
(32)
(32)
Health insurance
(2,275)
Life insurance
(9)
LTD
(60)
(6)
(6)
Dental
(169)
Workers comp
(104)
(3)
(3)
Flex
(32)
42
42
(2) Senior accountant to full time
Wages
16,549
PERA
1,200
FICA
1,266
Workers comp
115
POLICE
(1) Gun range cleanup
85,700
11,000
(2) Landscaping contract
(2,215)
(2,215)
FIRE
(1) Increase Fire State Aid to actual (1305.6045)
9,975
9,975
9,975
(2) Landscaping contract
4,427
4,427
(3) Fire Relief pension obligation
15,196
ENGINEERING
(1) City Engineer Retirement
Wages
(26,840)
PERA
(1,946)
FICA
(327)
Health insurance
(1,138)
Life insurance
(4)
LTD
(48)
Dental
(85)
Workers comp
(134)
Flex
(14)
Page 3
Exhibit A
Budget Adjustments
As of December 1
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
(2) Reduce Schools and Conferences after further review. Many of the
CEU's can be obtained through the conferences currently listed. (840) (840) (840)
PARKS
(1) Add Highview Heights ice rink for 2011 -2012 season (to be paid from
contingency)
Overtime
600
925
925
Seasonal wages
670
3,343
3,343
Electrical
190
850
850
Warming house rental
1,000
1,000
Phone service
50
150
150
Other
732
732
(2) Landscape contracts
(5,335)
(4,083)
RECREATION
(1) Senior Center landscaping contract
(532)
(1,977)
ART CENTER
Move most of the other contractual costs for technicians and
(1) instructors to salaries - temporary (get listing from Human Resources
Manager).
Sound /Light technician
600
1,200
1,300
Sound /Lighttechnician
(600)
(1,200)
(1,300)
Theater technicians
800
1,600
1,600
Theater technicians
(800)
(1,600)
(1,600)
Directors /staff
21,251
29,000
29,000
Directors/staff
(21,251)
(29,000)
(29,000)
Art instructors
7,000
7,000
7,000
Art instructors
(7,000)
(7,000)
(7,000)
Directors /staff
1,680
2,400
2,400
Directors /staff
(1,680)
(2,400)
(2,400)
Pottery instructors
700
7,000
7,000
Pottery instructors
(700)
(7,000)
(7,000)
Miscellaneous instructors
1
2,500
2,500
Miscellaneous instructors
(1,250)
(2,500)
(2,500)
(1) Reduction in health insurance premiums (81,178) (89,295)
(2) Contingency (159 (407,299)
(3) Gun range clean up (85,700)
Total Expenditure Adjustments - Increase (Decrease) _ ( 21,337 ) (275 (541,957)
Page 4
Exhibit A
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
S pecial ® C ommuni c a t io ns
EXPENDITURES
(1) Reduce community visioning process
(2) Reduce community survey
(3) Eliminate City Hall meeting room study
(4) Transfer to General Fund for Econ Dev marketing strategy
Total Expenditure Adjustments - Increase (Decrease)
Net Changes
Fund Balance Before Adiustments
Fund Balance After Adjustments
(15,000)
(15,000)
(20,000)
30,000
20,000
20,000
20,000
- 20,000
(20,000)
843.286 751,35
72 2.503
843,286 771,353
722,503
D eb t ° °
REVENUES
(1) Property Taxes
Total Revenue Adjustments - Increase (Decrease)
EXPENDITURES
(1) Refund 2001 C State Aid Street Bands & 2003B Park Refunding
Bonds
Total Expenditure Adjustments - Increase (Decrease)
Net Changes
Fund Balance Before Adjustments
Fund Balance After Adjustments
(8,377) (5,742)
(6,377 (5,742
(8,377) (5,742)
_ 4.587,38 4.162,012 4 2 2 13,760
4,58 7,384 4,1 62,012 4,213,760
Page 5
Exhibit A
••'• A•,
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
C ap it a l ® ® a
REVENUES
Improvement Construction Fund
Municipal State Aid Fund:
Park Dedication Fund
Total Revenue Adjustments - Increase (Decrease)
County Road 70/1 -35 Interchange - Final
County Road 60 1Cty Rd 50 improvements
Dodd Blvd: 183rd - Hayes
Dodd Blvd: County Road 70 - Scott County
Trail: 185th: Jamaica - Ipava
Total Expenditure Adjustments - Increase (Decrease)
1,726,950
(6,800)
(760,815)
1,280,450
-
(90,428
966,135
1,183,222
2,675,809
206,031
(190,000)
(225,000)
(760,815)
1,406,250
166,34
99,200
Fund Balance After Adjustments
90,428)
2,675,809 ( 760 2 815)
1,1 90,022
CAPITAL PROJECTS - BUILDING FUND
REVENUES
(1) Cable TV Fund -City Hall cooling unit (Move to 2011) 16,031 = (16,031)
Total Ad.. I n ...... ........i 19
�ustme n - incase (Decrease/
l
(1) Move Administrative office project to 2012
_1190,000
19 0,0 00
Total Expenditure Adjustments - Increase (Decrease)
_,_ (190,000 )
190
Net Changes
206,031
(190,000)
(16,031)
Fund Balance Before Adjustments
645,855
166,34
88,696
Fund Balance After Adjustments
851,886
182,372
88,696
CAPITAL PROJECTS - EQUIPMENT FUND
REVENUES
(1) Push transfer from Liquor Fund for snowmobile to 2013
-
_ (110,068 )
110,068
Total Revenue Adjustments - Increase (Decrease)
------------
(11 01068)
_110,068
EXPENDITURES
Parks
(1) Provide analysis on showmobile
110,068)
1 10,068
Total Expenditure Adjustments - Increase (Decrease)
_
(110,068
110,068
Net Changes
-
-
-
Fund Balance Before Adjustments
987,944
1,254,006
937,584
Fund Balance After Adjustments
987,944
1,254,006
93 7,584
Page 6
Exhibit A
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
Utility Fund - Water
EXPENSES
(1) Landscape contract
(2) Water main replacement
Total Expense Adjustments - Increase (Decrease)
Net Changes
Working Capital Before Adjustments
Working Capital After Adjustments
(1,359) (904)
912 ,000
9 10,641 (904)
(910,641) 904
_ 6,842,851 6,259,6 6,421,113
6,8 5,348,971 5,511,
Utility •'
EXPENSES
0 } Increase MCES disposal fees as a result of a correction in metering of
sewer flows and MCES letter dated November 6, 2011.
(2) Landscape contract
Total Expense Adjustments - Increase (Decrease)
Net Changes
Working Capital Before Adjustments
Working Capital After Adjustments
66,416 66,416
(397)
(358)
66,019
66,058
(66,019)
(66,058)
2,624,457 2.383,55
2,387,16
2,624,457 2, 317,537
2,255,087
Page 7
Exhibit A
•t• A•
i • � • 1
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
Utility • Envir R es o urces
REVENUES
(1) Reduce recycling grant to estimated
Total Revenue Adjustments - Increase (Decrease)
EXPENSES
(1) Advertising in park and recreation brochure
(2) City wide recycling
(3) Promotional items
Total Expense Adjustments - Increase (Decrease)
Net Changes
Working Capital Before Adjustments
Working Capital After Adjustments
_ (1 (2,031
( 1,096) (2,031
975 975 975
100 100 100
(1,075) (2,171) (3,106)
55 _ 492,580 _ 562,682
556,448 492,580 562,682
Li
EXPENSES
(1) Eliminate capital outlay for land acquisition
INTERFUND TRANSFERS
(1) To match General Fund Transfer In
(2) Eliminate transfer to General Fund for Econ Dev marketing strategy
(to be funded by Communications)
(3) Transfer to equipment fund for showrnobile pushed to 2013
(4) Landscaping contract
Total Expense Adjustments - Increase (Decrease)
Net Changes
Working Capital Before Adjustments
Working Capital After Adjustments
(2,800,000)
1,519 2,276 (1,004)
(30,000) (20,000)
(110,068) 110,068
(1,249) (1,249)
1,519 _ (2,939,641 ) 87,815
(1,519) 2,939,041 (87,815)
_ 5,939,521 1 ,9 72 ,107 1,448,929
5,938,0 4 ,909,629 4, 298,636
Page 8
Exhibit A
Budget Adjustments
As of December
2011 2012 2013
ESTIMATE ESTIMATE ESTIMATE
Compensated Liability
REVENUES
(1) None
Total Revenue Adjustments - Increase (Decrease)
EXPENSES
(1) Adjustment for actual benefits paid out in 2011
Engineer - Severance /PTO 32,078
Engineer - FICA 2,454
Total Expense Adjustments - Increase (Decrease) 34,53
Net Changes (34,532)
Working Capital Before Adjustments _820, 913 _ 1,005,987
Working Capital After Adjustments 786,047 879,143 971,455
Page 9