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Home My WebLink AboutItem 08Approval of 2013 Budget and Tax Levy Proposed Action Staff recommends adoption of the following motion: Move to approve the Resolution Approving the 2013 Budget and Resolution Approving the 2013 Tax Levy Approval of the motion adopts the 2013 budget and 2013 tax levy. Overview The 2013 budget and tax levy were presented at the December 3 council meeting. The "Proposed Property Tax for 2013" notice to property owners, however, stated that the meeting was December 4. The City Council should therefore accept public comments on December 17 prior to approval of the budget and tax levy. Notice of the December 17 budget presentation has been published in the December 7 and Decemberl5 Messages page. The attached Resolution is consistent with the discussions at the December 3 meeting. The proposed 2013 tax levy(23,079,185) is $662,448 less than the preliminary tax levy approved September 4 and $47,775 less than the 2012 tax levy. A discussion of the tax levy and its impact on property tax statements is shown on the attached pages. Primary Issues to Consider - see attached i Proposed Adjustments to the Preliminary 2013 Tax Levy ➢ Proposed Budget Adjustments. Supporting Information a De eller, Fnance Director — - -------- — -- - - ._ - -- - - - -- Financial Impact: $ 23079 185 tax lev budgeted: _ Source: _ Variou funds Related Documents (CIP, ERP etc.): Note Primary Issues to Consider Adjustments to Preliminary Tax LM 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) GISTechnician (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 CIS 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 (184,420) (33,392) 3,129 (104,000 (318,683) 2014 (183,333) (15,600) (40,600) (42,575) (9,850) (3,800 (112,425) (183,333) (14,790) (2,061) (22,521) (17,850) (33,109) (26,817) 10,456 6,336 2,069 2,147 (43,105) (36,184) (73,955) 9,388 9,388 500 500 (662,448) (285,645) 23,7 41,633 2 4,4 5 2,243 $ 23,079,185 $ 24,166,598 (47,775) 1,087,413 -0.2% 4.7% An overview of the tax impact on residential and business properties follows. RESIDENTIAL HOMESTEADED PROPERTIES - $214,800 Market Value For: School District 194 - Vermillion Watershed District For: School District 192 - Vermillion Watershed District Actual Proposed 2013 Property 2012 2012 2013 Property Property Property Property Percentage Taxes Change Taxes Taxes Change .: Dakota County $ 692.05 $ 665.87 School District 192 Lakeville 851.62 831.34 Metro /Other taxing districts 110.17 School District 194 1,119.81 1,132.17 $ 3,156.56 $ 3,0 89.11 Metro /Other taxing districts 110.17 107.49 _ Total $ 2,773 $ 2,736.87 -1.3% For: School District 192 - Vermillion Watershed District For: School District 196 - Vermillion Watershed District Actual Actual Proposed 2013 Property 2012 2013 Taxes Change Property Property Percentage Taxes Taxes Change Dakota County $ 692.05 $ 665.87 Lakeville 851.62 831.34 School District 192 1,502.72 1,484.41 Metro /Other taxing districts 110.17 107.49 Total $ 3,156.56 $ 3,0 89.11 -2.1% For: School District 196 - Vermillion Watershed District Actual Proposed 2012 2013 Property Property Percentage Taxes Taxes Change Dakota County Lakeville School District 192 Metro /Other taxing districts Total $ 692.05 $ 665.87 851.62 831.34 1,116.10 1,055.33 110.17 107.49 $2,769.94 $ 2, 660.03 -4.0% (26) -3.8% (20) -2.4% 181 -1.2% (3 ) -2.4% '(26) -3.8% (20) -2.4% (61) -.5.4% -_ 11107 COMMERCIAL - INDUSTRIAL PROPERTIES For: School District 194 - Vermillion Watershed District 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 100,000 Market Value 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 ,7 9 6.86 $ 2,968.44 6.1% $500,000 Market Value Actual 2012 Property Taxes Proposed 2013 Property Taxes Percentage Change N-m Jncrease/ (decrease): 32 3, TM 24 6:5% 29 3.791 46 95% 3 6.5 %i 59 7A%:. 172 6.1% $ 1,793.26 2,205.69 4,726.75 2,725.30 286.32 S J55m $ 1,889.88 2,350.26 4,902.50 2,994.52 305.07 S r,Jn S9 J 1b,77L.3} .? 125,VpL. /} 6.3% $1,000,000 Market Value Actual 97 Proposed 2012 6.6% 2013 3.7% Property Property Percentage Taxes 6.5% Taxes Change $ 3,729.69 6.3% $ 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 6.3% Increase/(decrease)... 97 5.4% 145 6.6% 176 3.7% 269 9.9% 19 6.5% 365 7.0 1,070 6.3% The following is a discussion of budget proposed adjustments to the preliminary budget and tax levy which were approved on September 4 General Fund A summary of proposed General Fund expenditure adjustments are as follows: EXPENDITURES MAYOR AND CITY COUNCIL Increase MLC dues CITY ADMINISTRATION Administrative Services Manager position transition PLANNING Associate Planner transition GENERAL GOVERNMENT FACILITIES Remove vacant senior facility 2013 operating costs Major maintenance financed by Building Fund POLICE Major maintenance financed by Building Fund Patrol Sergant transition FIRE Major maintenance financed by Building Fund ENGINEERING Assistant City Engineer transition GIS transition - Effective 12/1/12 STREETS Major maintenance financed by Building Fund Street Maintenance transition ART CENTER Major maintenance financed by Building Fund PARKS AND RECREATION Parks and Recreation Director transition Open Cherryview rink effective November 2012 Remove 2012 contingency Total expenditure adjustments 2012 2013 2014 ESTIMATE ESTIMATE ESTIMATE 500 500 1,113 7,939 (5,903) (4,813) (15,600) (40,600) 21,802 (42,575) (34,320) (22,521) (17,850) 17,530 (33,109) (26,817) (9,850) 7,925 10,456 6,336 (3,800) (46,329) 2,069 2,147 3,129 9,388 9,388 (104,000) (134,263 (155,245 (18,357 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: Preliminary 2013 F Revised REVENUES 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: A summary of the proposed revenue adjustment details are as follows: 2012 2013 F 2014 REVENUES ESTIMATE ESTIMATE ESTIMATE GENERAL PROPERTY TAXES Prior year adjustments - building permits (184,420) Prior year adjustments - expenditures (134,263) Building permit revenues (183,333) (183,333) Reduce levy for major maintenance items - financed by Building Fund (112,425) Personnel adjustments (57,895) (38,245) Other 9,888 9,888 Total Tax levy adjustment (662,448) (211,690) LICENSES AND PERMITS Increase Building permit revenue Orginal estimate = 221 S.f.- revised to 247 s.f. 184,420 Orginal estimate = 160 S.f.- revised to 210 s.f. SERVICE CHARGES 183,333 183,333 Heritage Center fund raising (4,813) Planner fees - 10,000 10,000 Total Revenue Adjustments - Increase (Decrease) 184,420 (473,928) (18,357) 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. 2012 Revenues as adjusted Expenditures as adjusted Net (decrease) Beginning fund balance Ending fund balance $ 21,139,920 21,489,493 (349,573) 10,548,338 $ 10,198,765 2013 $ 20,626,178 21,246,903 (620,725) 10,198,765 $ 9,578,040 Fund balance as a percent of expenditures 47.5% 45.1% 2014 $ 21,451,908 21,604,165 (152,257) 9,578,040 $ 9,425,783 43.6% 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. 2012 2013 2014 Special Revenue Fund - Communications Water Treatment Facility- carpet (6,000) Fire Department- Interactive white board 7,443 Trail Fund Kenrick Avenue 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. CITY OF LAKEVILLE RESOLUTION No. BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that the following 2013 budget, a copy of which is on file in the Finance Directors Office, is hereby approved and adopted. Fund7Department Revenues Expenditures General Fund General property taxes $ 15,920,497 Licenses and permits 1,345,449 Intergovernmental revenue 621,226 Charges for services 1,632,580 Court fines 294,809 Investment income 32,735 Miscellaneous 63,585 Transfers from other funds 715,297 Mayor and Council $ 95,275 Committees /Commissions 82,272 City administration 392,969 City Clerk 114,964 Legal counsel 65,132 Planning 392,834 Community and econ. development 300,421 Inspection 794,978 General government facilities 442,807 Finance 610,134 Information systems 481,319 Human resources 363,195 Insurance 227,420 Police 8,736,220 Fire 1,444,532 Engineering 693,354 Streets 2,634,403 Parks 2,202,544 Recreation 578,477 Heritage Center 72,605 Arts Center 416,048 Other 105,000 Total General Fund 20,626,178 21,246,903 (continued) RESOLUTION APPROVING THE 2013 BUDGET (continued) Enterprise Debt/Capital Fund /Department Revenues Expenditures Improvements Special Revenue Funds Communications Economic Development Debt Service Funds Special Assessments Property Taxes State -aid Tax Increment Water Revenue Arena Revenue HRA Lease Revenue Capital Projects Fun Municipal state -aid Pavement Management Improvement Construction Building Equipment Park Dedication Trail Storin Sewer Water Sanitary Sewer Tax Increment Internal Service - Municipal Reserves Fund Enterprise- Liquor Fund Enterprise - Utility Fund Grand Total 598,262 574,933 3,183 7,500 4,450,854 5,061,646 1,988,819 1,375,473 847,688 848,814 704,304 585,759 1,027,980 1,027,980 185,719 186,205 569,640 593,760 690,000 4,088,100 1,604,335 1,446,535 6,358,137 6,883,887 640,676 1,020,405 1,704,851 2,128,206 626,393 370,700 826,400 1,205,754 474,056 536,603 1,051,012 1,323,593 190,170 31.3,500 226,595 208,509 370,865 401,257 15,173,590 15,572,194 421,892 9,074,568 8,189,974 _ 3,172,096 $ 70,014,275 $ 75,198,190 $ 3,593,988 APPROVED AND ADOPTED this 17th day of December 2012 by the City Council of the City of Lakeville, Minnesota. CITY OF LAKEVILLE, MINNESOTA E Mark Bellows, Mayor ATTEST: Charlene Friedges, City Clerk CITY OF LAKEVILLE RESOLUTION No. RESOLUTION ADOPTING THE 2013 TAX LEVY BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that the following 2013 tax levy is hereby approved and adopted. Total General Fund $ 15,877,519 Public Works Reserve - Pavement Mgmt. 1,230,000 Equipment Fund 592,235 Debt Service Park Refunding Bonds 201113 417,722 Capital improvement Bonds 2004A 906,506 Ice Arena I ease Revenue Bonds 2006 284,070 Capital Improvement Bonds 2007D 980,113 G. O. Improvement Bonds 2009 322,278 G. O. Improvement Bonds 2011 146,860 G. O. Improvement Bonds 2012 498,568 Street Reconstruction Bonds 2003A 1,050,193 Street Reconstruction Bonds 2005A 182,477 Street Reconstruction Bonds 200711 230,627 Street Reconstruction Bonds 2009A 360,017 Total $ 23,079,185 APPROVED AND ADOPTED this 17 day of December 2012 by the City Council of the City of Lakeville, Minnesota. CITY OF LAKEVILLE, MINNESOTA 0 ATTEST: Mark Bellows, Mayor Charlene Friedges, City Clerk The following is a schedule of all debt which, at the time of issuance, included certification of future property tax levy. The following schedule - column B - provides list of debt listing actual tax levies for taxes payable 2013. The difference betwe( certification and actual is due to changes in funding sources such as interest c investments, liquor fund contributions, special assessments, General Fund (operatic levies) and other contributing factors. Bond Description Debt Schedule Certified Levy Capital Improvement Bonds 2004A Ice Arena Lease Revenue Bonds 2006 Capital Improvement Bonds 2007D Improvement Bonds 2007B Improvement Bonds 2008A Improvement Refunding Bonds 2009B Improvement Bonds 2011 A Improvement Bonds 20i 2A Street Reconstruction Bonds 2003A Street Reconstruction Bonds 2005A Street Reconstruction Bonds 2007H Street Reconstruction Bonds 2009A Refunding Bonds 2011B Refunding Bonds 2012B Public Safety Revenue Bonds 2007 $ 280,000 S 906,506 - 284,070 1,145,931 980,113 101,829 - 148,595 - 725,826 322,278 151,988 146,860 582,609 498,5)08 1,122,101 1,050,193 240,513 182,477 230,627 230,627 437,968 360,017 513,720 417,722 1,074,377 - 154,350 Debt Service Total ** $ 6,910,434 $ 5,379,431