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Home My WebLink About12-13-04 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING. TRUTH IN TAXATION PUBLIC HEARING DECEMBER 13, 2004 Mayor Johnson called the meeting to order at 7:00 p.m. Roll call was taken. Present: Council Members Bellows, Wulff, Rieb, Luick anal Mayor Johnson. Also present: S. Mielke, City Administrator; D. Feller, Finance Director; C. Friedges, City Clerk. Mayor Johnson opened the public hearing on the proposed 2005 budget ..and tax levy. Finance Director Dennis Feller provided an overview of the proposed budget and tax levy. He explained that the Governor and State Legislature, in an effort to address the State's $4 billion budget crisis, have imposed severe fiscal constraints on cities. As a result of the redistribution of state aid utilizing a new formula, the City of Lakeville will receive no Local Government Aid (LGA) in 2005 or future years. The permanent loss of $499,000 of LGA will result in an increase in taxes for Lakeville residents. There are no levy limits for payable 2005; however, there is reason to believe that levy. limits. will be re-imposed for taxes • payable 2006. Mr. Feller provided information on the General Fund, Special Revenue Funds, Internal Service Funds, Capital Projects Funds and Enterprise Funds. He explained that Lakeville's housing market continues to be very strong, and the City's Liquor Fund operation. has been instrumental in providing financing for city projects such as Fire Station #4. Lakeville has the second lowest water ..rates in Dakota County; and there are no proposed increases in water or surface water management fees for the coming year. Mr. Feller explained that the tax levy shown on the Truth in Taxation notices was based on a preliminary 2005 tax levy of $15,249,473. The final levy will be reduced by $17,156 for the repayment of General Obligation Capital Improvement Bonds issued to finance the construction of the Central Maintenance Facility. .This reduction is attributable to a very favorable AA3 municipal credit rating from Moody's Investor Service and the corresponding low interest rate received for the. bonds. The final tax levy is $15,232,317. For more than a decade, he stated, Lakeville has had one. of the lowest tax capacity rates in Dakota County fior cities over 5,000 in population. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING DECEMBER 13, 2004 PAGE 2 (An Executive Summary of the budget presentation is attached to these minutes ) Mr. Mielke stated that adoption of the final budget and tax levy will be considered at the regularly scheduled City Council meeting of December 20, 2004. There were no questions or comments from the audience. 04.156 Motion was made by Rieb, seconded by Luick to close the public hearing on the proposed 2005 budget and tax levy. Roll call was taken on the motion. Ayes, Bellows, Johnson, WulfF, Rieb, .Luick. There. being no further business, Mayor Johnson adjourned the meeting at 7:20 p.m. Respectfully submitted, Charlene Friedges, City erk Robert D. John ,Mayor Proposed budget City akeville :and State Aid ses Tax Levy 2003 oa • Local Godt Aid (LGA) $ 499,158 $ 494, 8 • Market Value H.Credit $ 656.230 656 23 Total $1,155,388 $1,155,388 December 3, 2 4 OS Residenh Growtk O ortunities an hallen es • No LGA As of Nov. 30 Es 'ma d - Results -higher taxes 2003 2004 2 5 • No Levy Limits Single Family 422 355 300 • State Budget -uncertainty? Townhomes 367 515 400 • Residential Growth Total 789 870 700 Gen 1 Fund Gen 1 Fund Revenu Expens 2004 Increase/ Revenues Estimate Proppos (Decrease) 2004 20 Increase/ Expenditures Estimate Propose ~(pecrease) General property taxes $ 9,099,081 $ 11,234,28 $ , 5,201 General Government 4,008,790 4,103,910 120 Licenses and permits 2,783,840 2,512,291 (271,5 Public Safety 6,719,378 7,031,184 311,80 Intergovernmental revenue 643,041 686,965 41 y24 Public Works 3y511,075 3,300,453 210,622) Charges for services 1,815,284 1,832,409 7,125 parks and Recreation 2,228,694 2,412,183 3,489 Court fines 157,551 190,176 3 625 Other .133,410 473,054 33 ,644 Miscellaneous 265,571 2S6,T77 20, O6 Total expenditures $ 16,601,347 $ 17,320,784 $ 719, 37 Interfund transfers 696,514 582,315 (114,1 9) Total revennes $ 15,462,882 $ 17,324,615 $ 1,861,7 1 Proposed S Budget Expenditl Per Capita • Pavement Management $414,426 stso • Voice over IP (telephone) 5,766 steo o~~e-w;ae ,Y ~ • Salt-only snowplow routes $ 82, s~zo ®c;ty°r • 15 Rookie firefighters $ ,854 sioo sso • Warming house attendants $ 41, 18 $60 • Community Survey $ 20,7 1 sio , , - ~ - - • Central Maintenance Facility -Sept 2 5 s ~ -T • Street Lights -rate incr ase ~~s v~ ° 0'0 n t • Personnel G` 4 4° 4'D City o akeville Special R nue Funds Proposed General d Balances zoos Proposed Expenai and Transfers 2004 05 Cable TV $ 0,159 Revenues S 15,462,882 $ 7,32 , 5 Environmental Recycling 42, 2 Expenditures 16,601,347 l 20,784 Employee Benefit Net increase/(decrease) (1,138,465) ,831 Surface Water Management 4 ,997 Fund balance, Janaary 1 8,756,931 7,618, 66 Oak Wilt Suppression Grant 12 00 Fund balance, December 31 $ 7,618,466 $ 7,622,2 7 Economic. Development Revolving Loan g q Fnnd balance as a % Total $983,3 of expenditures 45.9 % 44.0° Interne ervice Fund ~tal Proiects Municipal Res es Fund Equipme and 2005 Proposed Ex ses Liability, Property and ~ 2005 Casualty premiums $ 256, ~ Police $ 406,045 Fire 131,263 ~ Claims and deductibles 40,00 Streets 227,123 Parks 132,326 Administrative 37.212 Total $ 896,757 Total $ 333,216 2 a ital Projects Built Fund Liquo and Expenditures 2005 VokeoverlntemetProtocolsystem 255,166 2004 OS Increase/ Cky Hall 938 Estimate Pro_ s (Decrease) Police (Station facititystudy) - 0,0 Saks $ 10,357,852 $ 10,783; 425,338 CivDDefense 1 00 Cost of goodssoW (7,533,014) (8,167,70 4,686) Fire Station #1 5 Gross profit 2,524,838 2,615,490 90, Fire Station #3 -renovation 22,37 Operating expenses (1,524,480) - (1,597,956) (73,476} King Park Atbktk Compka (platting and Operating kcome 1,000,358 .1,017,534 17,176 engineering and road construction) 250,000 Debt service (162,970) (162',240) 730 Parks major maintenance - 58,756 Capkal outlay (75,734) (12,663) 53,071 Recreation software replacement 69,298 Other revenue 18,457 22,847 4,390 ListServ 17,484 Senior Center: (Paint interior) 2,432 Net income before transfers $ 780,111 $ 555,478 $ 7 ,367 Total Expenditures $ 739,520 Li Fund ater Contributions to mmunity Operatin and Zoos Revenues 1,801 200 Expenses 18 6 General Fund $ 142,7 Bu>7ding Fund 347,927 Net operating income .284., 80 Fire Station #4 debt 193,051 Major projects (115,00 Total $ 683,687 Interfund transfers (112,502 Capital outlay acquisitions _(27,152] Net increase $ 29,526 ' ry Sewer Operatin and Quarterly Resi e 'al Utility Bill ~ Zoos Revenues 56,099 2004 2005 ase MCES sewage treatment (2,3 water $17.87 $17.87 Expenses 746 34 State testing fee 1.35 1.35 - Sanitarysewer 45.86 47.12 1.2 Net operating income 276,6 4 Street Light 5.40 5.75 0.35 Interfund transfers (110,421 Surface Water Fee 4.75 4.75 - Capital outlay acquisitions 28 152 Total $75.23 $ 76.84 $1.61 Net increase $ 138,061 • 3 mparson with ax Levy Neigh Cities z0o5 Operations Quarterly Utr ' Bill General Fund $ 11,133,644 Employee Benefit Fund 155,354 Sanitary Surface Public Works Reserve Fund 414,426 Equipment Fund 0;000 City Sewer Water Water Li_ otal Certificates oflndetxedness ,058, Btunsville $ 53.38 $39.92 $ 17.00 $ 7. $117. VoterApproed Apple Valley 47.70 34.20 11.94 4.38 98.22 1986PazkBonds I ,227. Rosemount 45.20 36.06 9.26 - 90.82 1994 Pazk Bonds 26 65 Farmin on 44.10 28.80 7.75 - 0.65 Improvement Projects ~ 2000 G.O. Improvement Bonds 322,7 Lakeville 47.12 19.17 4.75 5.75 7 .79 2001 G.O. Irrg~rovement Bonds 58,65. 2003 G.O. Street Reconstruction Bonds 609,572 2004 G.O. Capital Improvement Bonds 719,357 Total Taxl~vy $ 15,232,317 Tax Capa ' Rate Market e Rate .Percentage 2004 2 Chan2_e Pro_ e Tax Capacity Rate Market Value $ 4,312,2 , 00 Tax levy 12,568,744 14,984,308 19. Tax Levy for 1994 Park Bonds 265,16 Fiscal disparities -distribution (1,410,454} (1,327,151) -5.9% Taa rate based on market value 0.0000615 Neoax levy 11,158,290 13,657,157 22.4% Net Tax Capacity 37,133,545 43,530,441 7.2% Tax Capacity Rate 0.30049 0.31374 .4% Area Tax Ca city Rates Proposed budget and Rosemount 0.4 West St. Paul Oa4933 Tax Levy Farmington OA4253 Bnrnsv0le 0.38506 South St. Paul 0.36886 Apple VaOey 0.36741 Lake~ir~e o.313~a December 3, 20 ~s.,;~ \ Eagan 0.28173 c \ Mendota Heights 0.27766 ~ / \ `1 = 4