HomeMy WebLinkAboutItem 04.bMemorandum
To: Mayor and City Council
From: Steve Mielke, City Administrator
Dennis Feller, Finance Director
Date: November 19, 2013
Subject: Preliminary Tax Levy- Proposed Revisions
The City Council, at its November 12 work session, reviewed potential 2014 tax levy reduction
options. The 2014 tax prioritization is attached to this memo as Exhibit - A. A summary of
the potential changes is as follows:
Expenditure additions
F Street Dept: Round -about landscaping 1,870
G Parks - Tree Trust /Eagle Scout projects materials 10,000
G Parks - Tree Trust labor 1,500
G Parks - floor replacements 5,700
G Tree Plantings 12,000
Revenue Enhancements
H Transfer from the Communications Fund
ITEM 4 - b
City of Lakeville
Total incr.
Expenditure reductions
A Contingency (personnel) (238,257)
B Police - Lexipol risk management (8,950)
C Insurance premium adjustment (21,808)
D Heritage Center - capital outlay (delete) (24,263)
E Heritage Center - operations (net) (3,565) (296,843)
31,070
(55,000)
Net changes in tax levy (320,773)
Preliminary 2014 tax levy $ 23,984,269 3.9%
Proposed Revised tax levy $ 23,663,496 2.5%
The revisions are as follows:
A. Contingency. The City Council, at its November 4 meeting, approved the 2014
employee health insurance rates, a reduction of $39,760. The City Council also
directed, at the November 19 work session, a reduction of $198,497.
B. Police Department: Lexipol risk management program. The proposed 2014
budget include appropriations ($8,950) for the Lexipol risk management program to
assist with training police officers and identification of risk management issues. The
Police Department has implemented a regular in -house risk management training
initiatives and therefore is recommending removal of the Lexipol program.
C. Liability Insurance premiums. The preliminary budget provided $83,463 of
appropriations in anticipation of liability insurance premium increases. LMCIT 2014
unanticipated rebates ($21,808) can be appropriated to reduction of the premium
increases.
D. Heritage Center - capital outlay. The preliminary 2014 General Fund budget
included appropriations ($24,263) for capital outlay items to enhance the revenue
opportunities for the facility. The dishwasher will be replaced in 2013 and financed
with increased operating revenues in order to efficiently comply with Minnesota
Department of Health regulations. Based on the experiences of the first full year of
operation, 50 chairs and 15 tables are needed to accommodate facility rental
opportunities; therefore the acquisition will be financed from the decreased
expenditures and increased revenues. All other capital items will either not be
purchased or financed with donations.
E. Heritage Center /Senior Center - operations (net). Revenues from facility rentals,
memberships and punch cards continue to exceed budget estimates. The preliminary
budget for Recreation and Heritage Center as well as the tax levy can be reduced by
$3,565.
F. Street Department: round -about landscaping. Staff is recommending the budget
be amended to provide appropriations for contract landscape maintenance of the
newly constructed round -about at Dodd Blvd /Highview Avenue and 205th /Kenrick
Avenue. The financing would be derived from the tax levy reductions shown above.
G. Parks Maintenance. The proposed budget and tax levy included appropriations for
Tree Trust labor ($1,500), materials for Tree Trust and Eagle Scout projects ($10,000),
floor replacements at the Parkview warming house ($5,700) and tree plantings
($12,000). Staff is recommending these items be added back to the budget and
financed with expenditure reductions noted above
H. Transfer from Communications Fund. Authorize the transfer of $55,000 from the
Communications Fund to finance the 2014 election process. This is a one -time tax
levy reduction as there are no elections in 2015.
The City Council also directed that the levy for Capital Improvement Bonds be decreased by
$300,000 and a corresponding increase in the Equipment Fund as follows:
2014 Tax Levy
General Fund
Pavement Mgmt. Fund
Trails Fund
Equipment Fund
Debt Service
Park Refunding Bonds 2011B
Capital Improvement Bonds 2004A
Ice Arena Lease Revenue - 2006
Capital Improvement Bonds 2007D
G. 0. Improvement Bonds 2009
G. 0. Improvement Bonds 2011
G. 0. Improvement Bonds 2012
G. 0. Improvement Bonds 2013
Street Reconstruction Bonds 2003A
Street Reconstruction Bonds 2005A
Street Reconstruction Bonds 2007H
Street Reconstruction Bonds 2009A
Total
Preliminary
17,129,137
1,205,350
45,200
350,175
932,906
315,325
977,113
278,415
157,855
534,776
322,269
950,578
182,809
231,467
370,894
23,984,269
Percent of 2013 Tax Levy 3.9%
REVISED
Adjust Levy
(320,773) 16,808,364
1,205,350
45,200
300,000 300,000
350,175
932,906
315,325
(300,000) 677,113
278,415
157,855
534,776
322,269
950,578
182,809
231,467
370,894
(320,773) 23,663,496
-1.4% 2.5%
)<,-&-8%
)<,-&-8%