HomeMy WebLinkAboutItem 08Date December 3, 2012 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 2013 budget and tax
levy.
Overview
The purpose of the hearing is to present the proposed 2013 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 17, 2012.
Primary Issues to Consider (Refer to responses starting on page 2)
• Adjustments to the Preliminary Tax Levy
• Budget Adjustments
Supporting information
e Budget document. Please bring the document with you to the Council meeting.
De eller, Fin e Director
Tax Levy Financial Impact: $23,079,185 Budgeted: Yes Source: Various funds
Related Documents (CIP, ERP, etc.):
Notes:
Primary Issues to Consider
Adjustments to Preliminary Tax Levy
There a number of proposed adjustments to the preliminary tax levy as shown below.
2013
Property Tax Levy adjustments
Prior Year (2012) Activities
Building permit revenue adjustments
Personnel transitions - vacancies
Police (2012)
21,802
Engineering (2012)
(34,320)
GIS Technician (2012)
17,530
Streets Maintenance (2012)
7,925
Parks (2012)
(46,329
Total personnel transitions
Ice rink- Cherryview (2012)
Contingency (2012)
Total adjustments due to prior year (2012)
Building permit revenue adjustments
Original single family estimate (160)- revised (210)
Major Maintenance Items financed by
Building Fund
General Government Facilities
Police
Fire Stations
Central Maintenance Facility
Arts Center
Personnel adjustment - Administrative
Services Manager
Personnel transitions - vacancies
Engineering
GIS Technician
Streets Maintenance
Parks
Total personnel transitions
Equipment Fund
Ice rink- Cherryview
League of Minnesota Cities - dues
Total property tax levy adjustments
Preliminary Property Tax Levy
Proposed Revised Property Tax Levy
Increase /(decrease) compared to prior year
9,388
500
(662,448)
23,741,633
$ 23,079,185
(47,775)
-0.2%
An overview of the tax impact on residential and business properties follows.
(184,420)
(33,392)
3,129
(104,000
(318,683)
(183,333)
(15,600)
(40,600)
(42,575)
(9,850)
(3,800 (112,425)
(14,790)
(22,521)
(17,850)
(33,109)
(26,817)
10,456
6,336
2,069
2,147
(43,105)
2014
(183,333)
(2,061)
(36,184)
(73,955)
9,388
500
(285,645)
24,452,243
$ 24,166,598
1,087,413
4.7%
2
RESIDENTIAL HOMESTEADED PROPERTIES - $214,800 Market Value
For: School District 194 - Vermillion Watershed District
2012 2013 ?r- -, - ` -= -
Win"
Property Property Percentage - ., A
Taxes Taxes Change Increase /(decrease)
Dakota County $ 692.05 $ 665.87 (26) -318%
Lakeville 851.62 831.34 (20) -2.4%
School District 194 1,119.81 1,132.17 12 1.1%
Metro /Othe r taxi ng districts 110.17 107.49 (3 ) ' -2.4%
Total $ 2,773.65 $ 2,736.87 -1.3% (37 -1.3%
For: School District 192 - Vermillion Watershed District
Actual Proposed 4
2012 2013
Property Property Percentage7x
Taxes Taxes Change Increase/(decrease)
Dakota County $ 692.05 $ 665.87 (26) -3.8%
Lakeville 851.62 831.34 (20) -2.4%
School District 192 1,502.72 1,484.41 (18) -1.2%
Metro /Othertaxing districts 110.17 107.49 (3 ) -
Total $3,156.56 $3,089.11 -2.1% 67 ) -2.1%
For: School District 196 - Vermillion Watershed District
Actual Proposed
2012 2013 -"
Property Property Percentageui'
Taxes Taxes Change Increase /(decrease)
Dakota County $ 692.05 $ 665.87 (26) 3.8%
Lakeville 851.62 831.34 (20) -2.4%
School District 192 1,116.10 1,055.33 (61) -5.4%
Metro /Other taxi ng districts 110.17 107.49 (3 ) -
Total $2,769.94 $ 2,660.03 4.0% (110 -4.0%
3
Actual P
Proposed
-
a
3
COMMERCIAL - INDUSTRIAL PROPERTIES
For: School District 194 - Vermillion Watershed District
100,000 Market Value
Dakota County
Lakeville
State General Tax
School District 194
Metro /Other taxing districts
Fiscal Disparity Tax
Total
Dakota County
Lakeville
State General Tax
School District 194
Metro /Other taxing districts
Fiscal Disparity Tax
Total
Dakota County
Lakeville
State General Tax
School District 194
Metro /Other taxing districts
Fiscal Disparity Tax
Total
Actual
Proposed
2012
2013
Property
Property Percentage
Taxes
Taxes Change
$ 294.84
$ 306.47
359.16
382.72
766.50
795.00
477.76
523.35
46.43
49.47
852.17
911.43
$ 2,796.86
$ 2,96 8.44 6.1%
$500,000 Market Value
Increase/(decrease)
12
3.9%
24.
6.6%
29
3.7%
46
9.5%
3
6.5%
59
'7.0%
Actual
2012
Property
Taxes
Proposed
2013
Property
Taxes
Percentage
Change
mI ffis , 6
,
'�'":
mw
Increase /(decrease)
$ 1,793.26
$ 1,889.88
Taxes
97 5.4%
2,205.69
2,350.26
4,887.67
145 6.6%
4,726.75
4,902.50
6,150.93
176 3.7%
2,725.30
2,994.52
269 9.9%
286.32
305.07
19 6.5%
5,255.03
5,620.52
365 7.0
$ 16,9 92.35
$ 18,06
6.3%
1,070 6.3%
111 1'11
Actual
Proposed
2012
2013
Property
Property
Taxes
Taxes
$ 3,729.69
$ 3,932.99
4,587.04
4,887.67
9,836.75
10,202.50
5,594.81
6,150.93
595.86
634.87
10,936.14 11,696.75
$ 35,280.29 $ 37,505.71
Percentage
Change
6.3%
Increase/ /decrease)
203
5.5%
301
6.6%
366
3.7%
556
9.9%
39
6.5%
761
7.0%
2,125
6.3%
4
The following is a discussion of budget proposed adjustments to the preliminary budget and
tax levy which were approved on September 4`h
General Fund
A summary of proposed General Fund expenditure adjustments are as follows:
5
2012
2013
2014
ESTIMATE
ESTIMATE
ESTIMATE
EXPENDITURES
MAYOR AND CITY COUNCIL
Increase MLC dues
500
500
CITY ADMINISTRATION
Administrative Services Manager position transition
1,113
7,939
PLANNING
Associate Planner transition
(5,903)
GENERAL GOVERNMENT FACILITIES
Remove vacant senior facility 2013 operating costs
(4,813)
Major maintenance financed by Building Fund
(15,600)
POLICE
Major maintenance financed by Building Fund
(40,600)
Patrol Sergant transition
21,802
FIRE
Major maintenance financed by Building Fund
(42,575)
ENGINEERING
Assistant City Engineer transition
(34,320)
(22,521)
(17,850)
GIS transition - Effective 12/1/12
17,530
(33,109)
(26,817)
STREETS
Major maintenance financed by Building Fund
(9,850)
Street Maintenance transition
7,925
10,456
6,336
ART CENTER
Major maintenance financed by Building Fund
(3,800)
PARKS AND RECREATION
Parks and Recreation Director transition
(46,329)
2,069
2,147
Open Cherryview rink effective November 2012
3,129
9,388
9,388
CONTINGENCY
Remove 2012 contingency
(104,000)
Total expenditure adjustments
(134,263
(155,245
(18,357
5
A discussion of the proposed expenditure details follows:
a) The estimated 2012 expenditures are anticipated to be reduced by $134,263 as a
result of personnel transitions (i.e. Police Sergeant, Engineering and Parks and
Recreation Director), elimination of the contingency and the addition of the
Cherryview ice rink.
b) 2013 expenditures are proposed to be reduced by $155,245 as a result of:
• Employee transitions
• Transfer major maintenance projects to the Building Fund
• Addition of the Cherryview ice rink
• The expenditure reductions for the maintenance and utilities at the old senior
center ($4,813) result in a corresponding reduction in fund raising revenues.
The revised fundraising commitments by user groups is as follows:
A summary of proposed General Fund revenue adjustments is as follows:
REVENUES
GENERAL PROPERTY TAXES
Prior year adjustments - building permits
Prior year adjustments - expenditures
Building permit revenues
Reduce levy for major maintenance items - financed
by Building Fund
Personnel adjustments
Other
Total Tax levy adjustment
LICENSES AND PERMITS
Increase Building permit revenue
Orginal estimate =221 S.f.- revised to 247 s.f.
Orgi nal estimate= 160 S.f. - revised to 210 s.f.
SERVICE CHARGES
Heritage Center fund raising
Planner fees
Total Revenue Adjustments - Increase (Decrease)
2012 r 2013 r 2014
ESTIMATE ESTIMATE ESTIMATE
(184,420)
(134, 263)
(183,333) (183,333)
(112,425)
(57,895) (38,245)
9,888 9,888
(662,448) (211,690)
183,333 183,333
(4,813)
- 10,000 10,000
184,420 (473,928) (18,357)
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Preliminary
Revised
Budget
Adjust
Budget
Senior Citizens
4,000
(2,139)
1,861
Yellow Ribbon
2,500
(1,337)
1,163
Historical Society
2,500
(1,337
1,163
Total
$ 9,000
$ (4,813
$ 4,187
A summary of proposed General Fund revenue adjustments is as follows:
REVENUES
GENERAL PROPERTY TAXES
Prior year adjustments - building permits
Prior year adjustments - expenditures
Building permit revenues
Reduce levy for major maintenance items - financed
by Building Fund
Personnel adjustments
Other
Total Tax levy adjustment
LICENSES AND PERMITS
Increase Building permit revenue
Orginal estimate =221 S.f.- revised to 247 s.f.
Orgi nal estimate= 160 S.f. - revised to 210 s.f.
SERVICE CHARGES
Heritage Center fund raising
Planner fees
Total Revenue Adjustments - Increase (Decrease)
2012 r 2013 r 2014
ESTIMATE ESTIMATE ESTIMATE
(184,420)
(134, 263)
(183,333) (183,333)
(112,425)
(57,895) (38,245)
9,888 9,888
(662,448) (211,690)
183,333 183,333
(4,813)
- 10,000 10,000
184,420 (473,928) (18,357)
29
A summary of the proposed revenue adjustment details are as follows:
a) The 2012 budget estimated has approximately $184,420 increase in building permit
revenues as a result of continued strength in single family home construction. As of
October 31 permits have been issued for 215 single family units, senior housing with
101 dwelling units and 8 townhomes /duplexes. Permits are anticipated to be issued
for an additional 32 units before year end.
b) The 2013 General Fund Taxes are proposed to be reduced by $662,448 as a result of
• increased 2012 building permit revenue,
• personnel transitions in 2012 and 2013,
• major maintenance expenditures to be financed from the Building Fund,
• addition of Cherryview ice rink and adjustments to fund balance.
c) The estimated 2014 tax levy will decrease by $211,690 due to expenditure reductions
and adjustments in fund balance.
The proposed adjustments to the preliminary General Fund budget will result in a balance
which is within the guidelines of the Fund Balance Policy.
2013
$ 20,626,178
21,246,903
(620,725)
10,198,765
$ 9,578,040
45.7%
2014
$ 21,451,908
21,604,165
(152,257)
9,578,040
$ 9,425,783
43.6%
7
2012
Revenues as adjusted
$ 21,139,920
Expenditures as adjusted
21,489,493
Net (decrease)
(349,573)
Beginning fund balance
10,548,338
Ending fund balance
$ 10,198,765
Fund balance as a percentof
expenditures
47.5%
2013
$ 20,626,178
21,246,903
(620,725)
10,198,765
$ 9,578,040
45.7%
2014
$ 21,451,908
21,604,165
(152,257)
9,578,040
$ 9,425,783
43.6%
7
Otherfunds
The following is a list of expenditure adjustments in other funds.
The City received approximately $73,955 from FEMA for use of City equipment during the
June 19th storm cleanup. The funds from equipment use will be deposited into the
Equipment Fund and appropriated to reduction of the 2014 tax levy.
8
2012
2013
2014
Special Revenue Fund - Communications
Water Treatment Facility - carpet
(6,000)
Fire Department - Interactive white board
7,443
Trail Fund
KenrickAvenue Trail: 186th to 205th Street
(451,600)
957,121
Building Fund
Major Maintenance - facilities
112,425
Central Maintenance Facility- generator upgrade
47,500
Arts Center irrigation system
16,023
Heritage Center irrigation system
(9,000)
Heritage Center Building Construction Fund
Heritage Center irrigation system
13,510
Equipment Fund
Police - shut -off equipment
2,500
Fire Department- Interactive white board
(7,443)
Liquor
Arts Center irrigation system
(14,000)
Water Operating Fund
Water Treatment Facility - carpet
6,000
Clays Acres water main
1,441,790
Utility Maintenance transistion
(7,118)
(8,018)
(2,829)
Generator - EPA compliance
71,500
Sanitary Sewer
MCES disposal fee adjustment
53,077
53,077
Clays Acres sanitary sewer improvements
128,300
Utility Maintenance transistion
(4,004)
(4,510)
(1,592)
The City received approximately $73,955 from FEMA for use of City equipment during the
June 19th storm cleanup. The funds from equipment use will be deposited into the
Equipment Fund and appropriated to reduction of the 2014 tax levy.
8