HomeMy WebLinkAboutItem 08Approval of the 2014 Budget and Tax Levy
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Resolution
Adopting the 2014 Budget and Resolution Adopting the 2014 Tax Levy.
Approval of the motion adopts the 2014 budget and 2014 tax levy.
Overview
The 2014 budget and tax levy were presented at the December 2 Council meeting. The
attached Resolutions are consistent with the discussions at the December 2 meeting. The
proposed 2014 tax levy ($23,657,996) is $326,273 less than the preliminary tax levy approved
September 16.
Primary Issues to Consider
o What are the proposed adjustments to the Preliminary 2014 Tax Levy?
o What are the proposed 2014 Budget Adjustments?
Supporting Information
Adjustments to Preliminary Tax Levy
➢ Proposed 2014 Budget Adjustments
➢ Budget Overview
➢ Resolution adopting the 2014 Tax Levy
➢ Resolu adopting the 2014 Budget
Den nis'Financ'e'Director
Financial Impact: $ 23.657.996 (tax levy) Budgeted: n/a 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.
Total Incr.
Expenditure reductions
Contingency (personnel) (238,257)
Police- Lexipol risk management (8,950)
Streets - Overtime (2,700)
Insurance premium adjustment (21,808)
Heritage Center- capital outlay (delete) (24,263)
Heritage Center- operations (net) (3,565 (299,543)
Expenditure additions
Street Dept: Round -about landscaping
1,870
Parks - Tree Trust/Eagle Scout projects materials
10,000
Parks - Tree Trust labor
1,500
Parks - floor replacements
5,700
Tree plantings
12,000
31,070
Revenue Enhancements
Code enforcement - reinspection fees
(2,800
Transfer from the Communications Fund
(55,000
Net changes in tax levy
(326,273)
Prel i mi na ry 2014 tax levy
$ 23,984,269 3.9%
Proposed Revised tax levy
$ 23,657,996 2.5%
Proposed Budget Adjustments
General Fund
A. Property Taxes. The City Council has indicated a desire to reduce the property tax
levy. A discussion of the potential property tax levy adjustments are provided in the
previous agenda item. If approved by the City Council, the tax levy would be reduced
by $326,273. The corresponding expenditure reductions and /or revenue
enhancements are shown below.
B. Transfers 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.
C. Fire Department - Target Solutions. The 2014 Fire Department provide
appropriations for Target Solutions ($4,000) which is a web based system that
provides a wide range of firefighting training such as Hazmat, pumping operations,
operating guidelines, and medical response. The objective is to increase training
hours as noted in the ISO rating while enabling the fire fighter to establish their
training schedule based on their availability. The actual cost of the training is $8,380;
the increased cost ($4,380) will be financed with revenues received from the
Minnesota Board of Firefighting Training and Education (MBFTE).
D. Heritage 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. An
overview of Recreation and Heritage Center programs is discussed and provided with
the previous agenda item related to property tax adjustments. The net adjustment
also takes into consideration an adjustment for fund raising with a $24,263 reduction
in revenues and a corresponding decrease of expenditures.
E. 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 regular in -house risk management training
initiatives and therefore is recommending removal of the Lexipol program.
F. Liability Insurance premiums. The preliminary budget provided $83,463 of
appropriations in anticipation of liability insurance premium increases. LMCIT 2014
rebates can be appropriated to reduction ($21,808) of the premium increases.
G. Street Department: round -about landscaping and overtime. 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 205 /Kenrick Avenue. The financing would be derived from other
expenditure reductions such as Contingency as noted below. The street department
overtime budget is reduced by $2,700 due to the new Fleet Supervisor position.
H. 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.
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. The 50 chairs and 15 tables are needed to
accommodate facility rental opportunities; therefore, the acquisition will be financed
from the increased 2013 revenues. All other capital items will either not be purchased
or financed with donations.
I Contingency. The City Council, at its November 4 meeting, approved the 2014
employee health insurance rates and reduced contingency by $39,760. The
contingency was reduced by an additional $198,497 at the November 19 work session.
A summary of proposed 2014 General Fund budget adjustments as discussed above is
shown below.
General Fund
Revenues
A Property Taxes
B Transfer from Communication Fund
C MN Board of Firefighter Education and Training
Code Enforcement - reinspection fees
D Heritage Center ( Fundraising,rentals,advertising)
Total revenue adjustments
EkLuenditures
E Police Dept: Lexipol (delete)
F Insurance premium adjustment
Streets Dept: Landscaping for roundabout and
G overtime
C Fire: Training solutions
H Parks: Tree Trust /scouts materials
H Parks: Tree Trust labor
H Parks: warming house floor replacements
H Parks: Tree plantings
D Heritage Center: operating exp
D,I Heritage Center: Capital outlay
J Contingency
Total expenditure adjustments
Communications Fund
Proposed
2014
Budget
Revisions
(326,273)
55,000
4,380
2,800
( 20,140
(284,233
(8,950)
(21,808)
( 830)
4,380
10,000
1,500
5,700
12,000
(23,705)
(24,263)
(238,257
(284,233
K. Transfers from Communications Fund. Authorize the transfer of $55,000 from the
Communications Fund to finance the 2014 election process. The transfer is a one-
time tax levy reduction as there are no elections in 2015.
L. Community Survey. The Communications Fund appropriated $20,000 for the
community survey. The survey is proposed to be removed from the 2014 budget for
possible inclusion in future budgets.
Proposed
2014
Budget
Communications Fund Revisions
Revenues (55,000
K. Transfers to General Fund
Expenditures
L. Community Survey (20,000
Net Change in Fund Balance (35,000
Capital Proiects Fund
M. Equipment Fund - Servers. The Preliminary 2014 Equipment Fund budget provided
appropriations ($218,828). Recently, several of the servers scheduled for replacement
were having very significant performance issues, including those dedicated for Police
and Liquor Departments. HP assisted with the diagnostics and determined that the
systems were at high risk of failure. Due to the high importance of the servers, the
purchase was placed to replace immediately rather than risk failure in the coming
months. The actual cost was $157,817 (almost $61,000 less than budget).
N. Equipment Fund - Squad video cameras. The squad video cameras were initially
removed from the preliminary 2014 budget. The video cameras are a risk
management tool which is proposed to be re- instated with financing derived from the
reduced cost of server replacement project, elimination of the voice activated
dictation system and existing fund balances.
O. Municipal State Aid Fund - Dakota County has increased their cost estimates for the
County Road 50/ County Road 60 improvements and round - about, and Dodd Blvd
County Road 70 to County Road 46/2. The City share of costs will be financed with
Municipal State Aid funds.
P. Improvement Construction Fund. The 2014 Street Reconstruction project has been
increased by $977,283 consistent with the feasibility report. The project costs are
financed with the issuance of general obligation improvement bonds of which 60% is
repaid with property taxes and 40% repaid with special assessments to benefitted
properties.
Q. Pavement Management. Dakota County repairs the storm sewer appurtenances
adjacent to county roads. Cities are responsible for a portion of the storm sewer
repairs. The proposed budget amendment for storm sewer repairs is based on
maintenance projects contemplated by Dakota County for the coming year.
R. Water Trunk Fund. Water system improvements such as water tower construction
are proposed to be advanced one year to meet service demands. The improvements
will be financed with a Water Revenue Bond which is repaid with water connection
fees.
A summary of the proposed 2014 Capital Project Fund adjustments is as follows:
Proposed
2014
Budget
Capital Projects Funds Revisions
Equipment Fund
Expenditures
M
Server replacement
(218,828)
N
Police Squad video system
175,000
Municipal State Aid Fund
Revenues
O
MSA Advance
943,000
Expenditures
O
CSAH 50/60 Roundabout and Expansion
1,155,600
O
Dodd Blvd: CSAH 70 to CSAH 46/2
13,800
Improvement Construction
Revenues
P
Debt issuance
977,283
Expenditures
P
2014 Street Reconstruction
977,283
Pavement Management
Q
County Road Utility Improvements
25,000
Water Trunk Fund
Revenues
R
Debt Issuance
9,000,000
Expenditures
R
Well site acquisition
160,000
R
Water Tower Land acquisition
100,000
R
Water Tower Engineering and design
300,000
R
WTF Improvements - Chemical storage /feed equip
90,000
R
WTF Improvements - 600 HP High Service Pump
450,000
R
WTF Improvements - Backwash Pump
171,000
R
WTF Improvements - Backwash Air Blower
126,000
Total expenditures
1,397,000
Park Dedication Fund
The Preliminary 2014 Budget did not include the Park Dedication Fund. Staff is
recommending City Council approval of the Park Dedication Fund as shown below:
Park Dedication Fund
Statement of Revenue, Expenditures
and Changes in Fund Balance
Park Development Fees 1,130,240
Valley Park antenna 20,260
Dakota County - Trails 80,685
Escrows 9,948
Donations /Other 50,000
Total Revenues
$ 1,291,133
Expenditures
Parks
100,000
King Park
20,000
Pave parking lot
255,000
New playground
150,000
5ummerlyn Park
32,500
Aronson parking lot safety netting
40,000
Veteran Memorial irrigation
12,000
Trails
Dodd: 208th to Hwy 50
146,700
N orthc ree k Gree nway Trail
100,000
Planning and design
20,000
Developers Credit
339,000
Total Expenditures
1,095,200
Net Increase /(Decrease) 195,933
Fund Balance, Jan 1 921,960
Fund Balance, Dec 31 $ 1,117,893
Proposed park construction projects for the coming year include King Park parking lot
($225,000) and playground ($150,000) as well as Summerlyn Park ($32,500). Safety netting is
proposed for Aronson Park parking lot to reduce the risk of injury and property damage as
well as irrigation at the Veterans Memorial.
The County is anticipated to complete the trail adjacent to Dodd Boulevard from 208 Street
to Highway 50; the net cost to the City is approximately $66,000. Dakota County will use
federal funding to construct a trail adjacent to the Northcreek Greenway. In order for the
project to proceed, the City is required to finance the design ($100,000) in 2014 and
construction administration in 2015.
Proprietary Funds
S. Servers Replacement. As stated in the Equipment Fund, recently, several of the
servers scheduled for replacement were having very significant performance which
necessitated immediate replacement. The Utility and Liquor Funds are each
responsible for $8,400.
T. Water main replacement and sanitary sewer repairs. The water main project to be
replaced in conjunction with the 2014 Street Reconstruction project increased by
$705,803 as a result of the corrosive soils discovered at the project area. The costs will
be financed with the issuance of water revenue bonds which will be repaid with utility
fees.
U. Utility Rate Study. As growth continues there are improvements needed for the
water system infrastructure as outlined in the 2014 -2018 Capital Improvement Plan
provided to Council at their November 12t work session. Based on Springsted's
recommendation in their Utility Rate Study these improvements will be financed with
a combination of user charges increases for water (4.25%) and sewer (6.35%), in
addition to debt financing of $4.8 million in 2014.
V. Forester. As discussed at the November 12th work session the Forester position has
been removed along with related equipment and training costs.
W. LMCIT Premiums. The LMCIT workers compensation rebate received in 2013 is
proposed to be appropriated to reduction in service fees charged to other funds.
Proposed
2014
Budget
Proprieta[y Funds Revisions
Utility Fund
Revenues
U Water user charges $ 143,266
U Sewer user charges 281,198
Total revenue adjustments 424,464
E&penditures
5 Server replacement in 2013 (8,400)
T Watermain replacement (2014 Street Reconstruction) 705,803
T Sanitary sewer rehabilitation (2014 Street Reconstruction) (90,370)
V Forester position (includes benefits, equipment, training) (120,165
Total expenditure adjustments
Net Change in Fund Balance
Liquor Fund
5 Server replacement in 2013
Municipal Reserves
W Charges for Services - General Fund
$ 486,868
w) 4n4]
M Ann)
(21,808
T T! � 0
Municipalities organize their financial activities into separate "funds' in order to properly
manage and account for the services provided. Each fund can be thought of as a separate
business organized for a specific purpose. Each of the funds has a different purpose, different
constraints on its resources and a different method of accounting for its activities. The City
has attempted to allocate resources among its different funds in order to achieve the
Council's goals in the most cost- effective manner possible.
General Fund
The General Fund of a government unit serves as the primary reporting vehicle for current
government operations. The General Fund, by definition, accounts for all current financial
resources not required by law or administrative action to be accounted for in another fund.
2012 General Fund Review
General Fund revenues in 2012 exceeded budget estimates primarily due to reduced tax
delinquencies, increased building permits and FEMA grant awards. Revenues related to
charges for services such as those for police security, and engineering also significantly
exceeded budget estimates.
Furthermore, expenditures were less than budget estimates primarily the result of
insignificant savings in most departments. The largest of these savings came in the areas of
reduced training and hiring costs, the vacant Parks Director position, and project materials
being less than anticipated. As a result, the beginning 2013 fund balance is $1,036,534 more
than anticipated.
2013 General Fund Budget Review
Operations for 2013 are projected to result in a $466,268 increase in fund balance for reasons
similar to 201 2 — increased building permit revenues due to increased housing development,
police security charges, and engineering fees. Expenditures are exceeding budget primarily
as a result of severe winter weather conditions.
2013
General Fund
Budget
Estimate
Variance
Revenues and other financing sources
$ 20,626,178
$ 21,381,130
$ 754,452
Expenditures
21,246,903
21,535,587
288,684
Netchanges
$ (620,725)
$ (154,4
$ 466,268
21
The Fund Balance Policy states "The City will endeavor to maintain an unrestricted (committed,
assigned and unassigned) fund balance in the General Fund of an amount not less than 40% and
notgreater than 50% of the next year's budgeted expenditures of the General Fund."
During the past 5 years, the objective was to budget for a 45% fund balance to mitigate the
risks and uncertainties of the recession. With the improvements in economic conditions, the
proposed budget is therefore based on a fund balance to the 40% level. As such, $943,805 of
the 2013 balance is available for other purposes.
The proposed budget for the coming year is premised on a recommendation that the
favorable results of the 2012 and 2013 operations ($1,036,534 and $466,268 respectfully) as
well as the unassigned 2013 estimated ending fund balance in excess of 40% ($943,805) be
appropriated as follows;
(a) $1,811,607 to the Equipment Fund for equipment acquisitions resulting in a
reduction in the 2014 - 2018 tax levies.
(b) $590,000 to the Building Fund to finance the five year major maintenance projects.
(c) $45,000 "Committed" General Fund balance for offset, at least in part, the City share
of cost in the first year of Emerald Ash Borer invasion.
Sources
2012 unencumbered balances 1,036,534
2013 unencumbered balances 466,268
Fund balance reduced from 45% to 40% 943,805
Total sources $ 2,446,607
U
Equipment Fund 1,811,607
Building Fund 590,000
General Fund (Committed Fund Balance) - EAB 45,000
Total uses
$ 2,446,607
22
2014 Proposed Budget
A summary of the General Fund 2014 proposed budget is as follows:
General Fund
Expenditures
General government
2014
231,122
Public safety
Proposed
Increase/
Public works
Budget
(decrease)
Revenues
3,303,757
(5,626)
General property taxes
$ 16,794,367
$ 886,725
Licenses and permits
1,947,676
142,341
Intergovernmental
608,401
(44,824)
Charges for services
2,156,037
206,214
Court fines
274,590
-
Investment income
44,413
$ 462,674
Miscellaneous
61,461
(3,635)
Other financing sources
759,814
69,923
Total revenues
22,646,759
1,256,744
Expenditures
General government
4,579,936
231,122
Public safety
10,353,465
72,639
Public works
3,643,430
78,046
Parks and recreation
3,303,757
(5,626)
Other
303,497
263,497
Total expenditures
22,184,085
639,678
Other financing uses
-
(2,446,607)
Net changes in fund balance
462,674
3,063,673
Fund balance, January 1
8,634,300
(2,600,999)
Fund balance, December 31
$ 9,096,974
$ 462,674
Fund Balance as a % of
expenditures
41%
The proposed General Fund budget is premised on a return to residential and business
growth for the coming year. Building permits are anticipated to be issued for approximately
345 single family dwellings for 2014.
23
General Fund expenditures are anticipated to increase by $639,678. The significant factors
affecting the budget include:
General government. Elections, insurance rates, development planning and
personnel costs are the primary factors affecting the increase in 2014 proposed
budget. Insurance costs are based on an experience modifier rate which is expected
to increase from its current extremely low rate. Personnel costs will increase due to
the new Administrative Services Manager's transition costs as well as the proposed
addition of a part -time Code Enforcement Officer and cost of living increase.
➢ Public safety. Personnel costs are the primary factors for increases in the 2014
proposed budget. As the city grows so does the need for public safety services. The
police department is requesting the addition of a police investigator. Changes to the
collective bargaining agreements and mandated changes to PERA rates for police and
fire also factor into the proposed increases. The fire department is requesting
increases for Pay for Call and Pay for Training for volunteer firefighters.
➢ Public works. Population growth creates a need for traffic analysis. Thus, an increase
in professional services for traffic studies is proposed in the budget. Personnel costs
are another primary factor increasing the proposed public works budget due to
transition costs for the Assistant City Engineer and Design Engineer. Also requested in
2014 are the additions of an Engineering Technician and Street Department Fleet
Supervisor.
➢ Parks and recreation. The budget for parks and recreation is anticipated to increase
in 2014 primarily due to changes in staffing. The 2014 budget also provides funding
for park major maintenance projects.
As a service based organization, the majority of the Citys budget, especially in the General
Fund, is related to personnel costs and related services.
Since mid -2008, the City has adjusted its budget as a result of economic conditions. Services
and costs are primarily derived from personnel services; therefore, there has been a
24
2014
Proposed
Increase/
Classification
Budget
(decrease)
Personnel
$ 15,961,067
$ 583,644
Commodities
1,626,533
(233,469)
Other charges and services
4,382,922
147,868
Capital outlay
108,563
82,635
Other
105,000
65,000
Total expenditures
$ 22,184,085
$ 639,678
Since mid -2008, the City has adjusted its budget as a result of economic conditions. Services
and costs are primarily derived from personnel services; therefore, there has been a
24
corresponding reduction in the City staffing levels in the last several years. As the City
returns to growth so does the need for additional services.
The following table illustrates the changes in General and Special Revenue Fund employees
since 2007.
General Fund
Number of Employees
(Full Time Equivalent)
Compared to 2007 (2.2) (14.2) (18.5) (17.8) (15.7) (14.1) (10.7)
The proposed budget reflects a continuance of service levels in spite of the 10% reduction in
personnel which occurred in 2009. As a result of the 2008 and 2009 budget adjustments, the
staff levels decreased to and remain at 2.7 employees per thousand populations.
EMPLOYEES PER THOUSAND RESIDENTS
3.2
E
31
LU 30
0 29
f �
2.8
us
U .
0 2.7
2.6
2.5
2008 2009 2010 2011 2012 2013 2014
Special Revenue Funds
The City has two special revenue funds whereby the revenues are either legally restricted or
committed by the City Council for specific purposes. The cable TV franchise fees are
appropriated to finance the Communications Fund functions including cable TV channel 16
and channel 12 public access as well as the weekly Messages publications, the City web -site,
other forms of public communications, and long -term replacement of equipment. The
25
2008
2009
Z?10
2011
2012
2013
2014
General government
43.2
38.3
36.2
36.2
35.8
36.2
37A
Public safety
69.8
66.7
66.9
67.8
69.8
69A
70.3
Publicworks
31.9
28.7
26.0
25.8
26.3
27.0
28.3
Parks and recreation
23.9
23.1
23A
23.4
23A
24.3
24.3
Total General Fund
168.8
156.8
152.5
153.2
155.3
156.9
160.3
Compared to 2007 (2.2) (14.2) (18.5) (17.8) (15.7) (14.1) (10.7)
The proposed budget reflects a continuance of service levels in spite of the 10% reduction in
personnel which occurred in 2009. As a result of the 2008 and 2009 budget adjustments, the
staff levels decreased to and remain at 2.7 employees per thousand populations.
EMPLOYEES PER THOUSAND RESIDENTS
3.2
E
31
LU 30
0 29
f �
2.8
us
U .
0 2.7
2.6
2.5
2008 2009 2010 2011 2012 2013 2014
Special Revenue Funds
The City has two special revenue funds whereby the revenues are either legally restricted or
committed by the City Council for specific purposes. The cable TV franchise fees are
appropriated to finance the Communications Fund functions including cable TV channel 16
and channel 12 public access as well as the weekly Messages publications, the City web -site,
other forms of public communications, and long -term replacement of equipment. The
25
administrative fees received from the 2008 issuance of conduit debt are committed to the
Economic Development Fund for community economic development. Cable TV franchise
fees are the predominant source of revenue for the Special Revenue Funds.
SPECIAL REVENUE FUNDS REVENUES
/'_
Franehiae Fees
conduit fags/other
2%
MM
SPECIAL REVENUE FUNDS EXPENDITURES
35%
15% Personnel
ii M i.; Other charges and
senrioss
� ?% i -Ad ramnistrativesupport
'-'"sm
113%
As of December 31, 2013, the City of Lakeville will have approximately $108.445 million of
debt outstanding. The City issued $22.450 million of (cross -over) refunding debt in July 2012
to refinance the G.O. Street Reconstruction Bonds Series 2003A and G.O. Capital Improvement
Bonds series 2004A. The refinancing has resulted in a net present value savings of $2.235
million over the 17 year life of the debt. The refunding bonds, as well as the series 2003A and
2004A bonds, will remain as City obligations until the two refunded bonds are called and fully
retired on or before February 1, 2015.
$140,000,000
$1 20,000,000
$100,000,000
z $80,000,000
0
W
M $80,000,000
W
G
a $40,000,000
$20,000,000
LAKEVILLE BOND INDEBTEDNESS
COMPARIISoN WITH MUM 0U 5 E OLD
_
1� 7f I ndebtedness
Crossover Refunding Indebtedness
Debt per Household
$6,000
$4,000
$2,000
-4 $0
26
1 0 0 '4 '9 'Y 'bd 1§1
AS OF DECEMBER 31
Moody's Credit Rating
Moody's Investor Service has assigned the City of Lakeville a very
favorable Aal credit rating for its long -term general obligation
debt and an Aa3 rating for underlying rating on the City of
Lakeville's lease revenue debt.
The City's debt is repaid from various revenue sources. Approximately half of the debt is paid
for from property taxes, and the remaining generated by other revenue sources such as water
connection charges, state aid for street construction, special assessments, tax increments and
liquor funds.
2014 Debt Service Revenue Sources
Municipal State Aid
Liquor $904,639
Connection Charges $400,000
$1,203,893
Tax Increment
Financing
' $691,447 Other
$539,249
Special
" 't %c_Assessments
$765,271
27
Capital Projects Funds
The 2014- 2018 Capital Improvement Plan identifies the projects anticipated to be completed
in the coming years. The capital projects outlined in the Capital Improvement Plan are
budgeted in a variety of City funds, depending on the revenue source.
Building Fund
Revenues
Other financing sources
Transfer from
Special Revenue - Comnuinications $
Unity Fund
Total revenues
Expenditures - Capital outlay
Arts Center
Central Maintenance Facility
City Hall
Fie Station #1
Fire Station #2
Fire Station #3
Fire Station #4
Heritage Center
Police Statifln
Total expenditures
Net change in fimd balance
Fund balance, January 1
Fund balance, December 31
2014 2015 2016 2017 2018
270 $ 10,130 $ - $ 4,000 $ 2,570
690 26,040 - 10,290 6,600
960 36,170 14,290 9,170
35,900 19,000 15,800 36,000 1,300
55,000 16,700 17,000 29,600
150,712 303,836 - 120,000 77,000
17,400 140,800 20,000 -
17,600 - - 120,850
2,500 5,200
11,000 - - 7,200 -
70,613 81,200 60,050 4,000 7,400
17,100 - - - -
377,825 566,736 112,850 317,650 85,700
(376,865) (530,566) (112,850) (303,360) (76,530)
1,400,812 1,023,947 493,381 380,531 77,171
$ 1,023,947 $ 493,381 $ 380,531 $ 77,171 $ 641
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Equipment Fund
Revenues
General property taxes
ALF Ambulance distribution
Sale of assets
Transfer from:
L*or Fund
Total Revenues
Expenditures
Election equipment
Fire
Parks
Police
Streets
Technology
Total expenditures
Net change in fund balance
Fund balance, January 1
Fund balance, December 31
2014 2015 2016 2017 2018
$ 300,000 $ 375,000 $ 408,800 $ 445,600 $ 485,700
19,814 - - -
240,500 163,000 234,800 1 88,000 132,700
800,000
1,160,000
1,160,000
1,160,000
1,160,000
1,360,314
1,698,000
1,803,600
1,793,600
1,778,400
26,667
26,667
26,667
-
832,805
63,332
35,000
666,750
263,750
485,212
448,221
473,325
362,210
174,130
813,523
316,977
590,898
674,164
80,487
861,827
742,626
12833,675
978,294
626,871
84,902
114,043
93,764
370,256
581,656
3,104,936
1,711,866
2,503,329
3,051,674
1,726,894
(1,744,622)
(13,866)
(699,729)
(1,258,074)
51,506
3,805,630
2,061,008
2,047,142
1,347,413
89,339
$ 2,061,008 $
2,047,142
$ 1,347,413
$ 89,339
$ 140,845
Trail Improvement Fund
Revenues
General property taxes
Other
Total revenues
Expe nditure s
Capital outlay
Net change in fund balance
Fund balance, January 1
Fund balance, December 31
2014 2015 2016 2017 2018
$ 45,200 $ 85,000
4,000 2,600
49,200 87,600
297,309 257,629
(248,109) (170,029)
759,340 511,231
$ 511,231 $ 341,202
$ 125,000
1,800
126,800
242,512
(115,712)
341,202
$ 225,490
$ 165,000 $ 205,000
1,100 600
166,100 205,600
205,592 237,371
(39,492) (31,771)
225,490 185,998
$ 185,998 $ 154,227
29
Pavement Fund
Revenues
General property taxes
MSA - Maintenance
Total Revenues
Expenditures
Capital improvements
Net Increase (Decrease)
Fund Balance, January 1
Fund Balance, December 31
2014
2015
2016
2017
2018
$ 1,205,350 $
1,211,531
$ 1,217,589 $
1,22,3,677 $
1,229,795
374,335
374,335
374,335
374,335
374,335
1,579,685
1,585,866
1,591,924
1,598,012
1,604,130
2,017,469
1,207,309
1,867,020
1,723,120
2,029,183
(437,784)
378,557
(275,096)
(125,108)
(425,053)
1,673,296
1,235,512
1,614,069
1,338,973
1,213,864
$ 1,235,512 $
1,614,069
$ 1,338,973 $
1,213,864 $
788,811
Enterprise Funds
Enterprise Funds are self- supporting from retail sales and user fees. Operations are managed
in much the same way as private enterprises.
Liquor Fund
The City of Lakeville is well positioned for the future with the most profitable municipal liquor
operation in the State of Minnesota. The strategic location of stores and excellent
management will enable the City to continue to capitalize on its customer base. Net income
from operations continues to be appropriated to projects and purposes which result in lower
property taxes for Lakeville businesses and residents. Liquor Fund sales are anticipated to
continue to increase at a modest pace in spite of intense competition.
30
A summary of Liquor operations is as follows:
Revenues
Liquor sales
Cost of goods sold
Gross profit
Expenditures
Operating expenses
Operating income
Non- operating revenue
Interest expense
Bond principal
Capital outlay acquistions
Net increase before transfers
and depreciation
Liquor Fund
Increase/
2014 (decrease)
$ 15,829,693 $ 707,904
11,853,712
530,974
3,975,981
176,930
2,284,870
63,054
1,691,111
116,970
31,173
(20,628)
(153,055)
12,630
(165,000)
(5,000)
(31,833 224,828
$ 1,372,396 $ 328,800
The Liquor Fund has made significant contributions to financing capital projects and
equipment acquisitions which would otherwise have been financed with taxes. The
proposed budget provides for the Liquor Fund's continued support ($18,834) of Independent
School District 194's "School - Community Prevention Specialist" position.
The Liquor Fund 2014 net income will be appropriated to the following purposes:
Liquor Contributions
2014
Equipment Fund
Police
Streets (snowplows and trucks)
Parks
Debt Service - Police Station
General operations
Community recycling
Total Contributions
$ 208,657
385,438
205,905
400,000
159,323
1 inn
$ 1,360,523
31
Utility
Each of water, sanitary sewer, street lighting and environmental resources are budgeted and
accounted for as separate entities within the Utility Fund.
Revenues
Expenditures
MCES sewer charges
Personnel
Commodities
Contractual and other sys
Major maintenance
Total expenditures
Operating income
Utility Fund Operations
For year ending December 31, 2014
Sanitary Street
Water Sewer Lights
$ 3,398,833 $ 4,715,252 $ 742,300
-
3,297,982
948,019
677,457
349,067
84,481
1,147,250
276,999
2,421,960
284,630
4,866,296
4,621,549
Environmental
Raennrrae
$ 683,410
17,397
232,194
31
26,374
736,767
501,568
754,195
760,136
$ (1,467,463) $ 93,703 $ (11,895) $ (76,726)
As growth continues there are improvements needed for the water system infrastructure.
Based on Springsted's recommendation in their Utility Rate Study these improvements will be
financed with a combination of user charges increases for water (4.25%) and sewer (6.35%), in
addition to debt financing of $4.8 million. A street light rate increase (a $0.33 /qtr. /residential
unit rate increase) is proposed for the coming year.
32
t
i`
The preliminary 2014 property tax levy is proposed to be $23.6 million which is a $578,811
increase over the 2013 property tax levy. The increase is primarily the result of debt for street
reconstruction projects and increased costs due to growth in the City. The majority of the
increased tax levy will be financed from the tax base increase in new residential home
construction.
2014
Property
Tax Increase/
Le
Operations, including equipment
Debt- Street improvements
Debt - Public facilities
Streets pavement management
Debt- Parks and arena
Trails maintenance
Total Tax Levy
17,102,864
3,029,063
1,610,019
1,205,350
665,500
45,200
(decrease)
633,110
238,043
(276,600)
(24,650)
(36,292)
45,200
$ 23,657,996
$ 578,811
The preliminary 2014 property levy will result in a $31 increase in on the median value home
($225,000). Actual tax impacts on individual properties will vary depending on property class,
market value and changes in market value.
Homesteaded Residential
Taxes Pa able
Estimated Increase/
2014 (Decrease)
Average Home Value $
Taxes
City Taxes $
225,000 $ 8,200
873 7
33
Tax Base
The tax base will increase by 2.2% as a result of new construction of single family residential
properties. The following is a summary of the preliminary payable 2014 assessor's market
values and tax capacity values by property class types.
Real Estate & Personal Properties Values
Assessors Market Values
Increase /(decrease) due to:
Pay Market New
USG Class 2014 Total Con ciitions Construction
Totals 5,015,114,235
247,638,914
148,116,314
99,522,600
Percentage Increase
5.2%
3.1%
2.1%
Tax Capacity Values
Increase /(decrease) due to:
Pay Market New
USG Class 2014 Total Conditions Construction
A - Residential
B - Commercial
C - Industrial
Other
Totals
Percentage Increase
41,224,444
2,241,043
1,434,743
806,300
10,117,508
139,101
(103,111)
242,212
2,741,570
(54,704)
(95,174)
40,470
3,343,153
248,010
105,923
142,087
57,426,675
2,573,450
1,342,381
1,231,069
4.7%
2.4%
2.2%
34
CITY OF LAKEVILLE
RESOLUTION No.
RESOLUTION ADOPTING THE 2014 BUDGET
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that the
following 2014 budget, a copy of which is on file in the Finance Directors Office, is
hereby approved and adopted.
Fund /Department
Revenues Expenditures
General Fund
General property taxes
$ 16,794,367
Licenses and permits
1,947,676
Intergovernmental revenue
608,401
Charges for services
2,156,037
Court fines
274,590
Investment income
Miscellaneous
Transfers from other funds
Mayor and Council
Committees /Commissions
City administration
City Clerk
Legal counsel
Planning
Community and econ. development
Inspection
General government facilities
Finance
Information systems
Human resources
Insurance
Police
Fire
Engineering
Streets
Parks
Recreation
Heritage Center
Arts Center
Other
Total General Fund
44,413
61,461
759,814
N]
97,021
62,794
403,228
184,724
82,351
427,787
295,953
851,202
417,452
626,703
490,633
351,013
289,075
8,921,850
1,431,615
904,728
2,738,702
2,235,675
584,240
78,774
405,068
303,497
22,646,759 22,184,085
RESOLUTION ADOPTING THE 2014 BUDGET (continued)
Fund /Department
Special Revenue Funds
Communications
Economic Development
Debt Service Funds
Property Taxes
Special Assessments
State -aid
Tax Increment
Water Revenue
Arena Revenue
HRA Lease Revenue
Capital Projects Funds
Municipal state -aid
Pavement Management
Improvement Construction
Building
Equipment
Park Dedication
Trail
Storm Sewer
Water
Sanitary Sewer
Tax Increment
Internal Service - Municipal Reserves Fund
Enterprise - Liquor Fund
Enterprise - Utility Fund
Grand Total
Enterprise
Debt/Capital
Revenues Expenditures Improvements
620,120 640,034
3,124 7,500
4,292,319
14,930,381
2,180,966
1,676,895
837,876
838,543
695,020
602,058
987,280
987,280
184,470
183,458
631,150
599,516
4,000,000
7,131,915
1,579,685
2,017,469
10,12 9,109
10,12 9,109
960
377,825
1,360,314
3,104,936
1,291,133
1,095,200
49,200
297,309
1,134,357
915,939
10,737,090
4,467,893
315,430
302,000
190,009
1,113
458,625
477,282
15,860,866
15,771,157 196,833
9,661,040
8,744,603 3,056,539
$ 87,826,321 $
96,546,318 $ 3,253,372
APPROVED AND ADOPTED this 16th day of December 2013 by the City Council of
the City of Lakeville, Minnesota.
CITY OF LAKEVILLE, MINNESOTA
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
CITY OF LAKEVILLE
RESOLUTION No.
RESOLUTION ADOPTING THE 2014 TAX LEVY
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that the
following 2014 tax levy is hereby approved and adopted.
Total
General Fund
Public Works Reserve - Pavement Mgmt.
Equipment Fund
Trails Fund
Debt Service
Park Refunding Bonds 2011 B
Capital Improvement Bonds 2004A
Ice Arena Lease Revenue Bonds 2006
Capital Improvement Bonds 2007D
G. O. Improvement Bonds 2009
G. O. Improvement Bonds 2011
G. O. Improvement Bonds 2012
G. O. Improvement Bonds 2013
Street Reconstruction Bonds 2003A
Street Reconstruction Bonds 2005A
Street Reconstruction Bonds 2007H
Street Reconstruction Bonds 2009A
Total
231,467
370,894
$ 23,657,996
16,802,864
1,205,350
300,000
45,200
350,175
932,906
315,325
677,113
278,415
157,855
534,776
322,269
950,578
182,809
APPROVED AND ADOPTED this 16' day of December 2013 by the City Council of the
City of Lakeville, Minnesota.
CITY OF LAKEVILLE, MINNESOTA
By:
ATTEST:
Matt Little, Mayor
Charlene Friedges, City Clerk
Schedule A - Debt Service
The following is a schedule of all debt which, at the time of issuance, included a
certification of future property tax levy. The following schedule - column B - provides a
list of debt listing actual tax levies for taxes payable 2014. The difference between
certification and actual is due to changes in funding sources such as interest on
investments, liquor fund contributions, special assessments, General Fund (operating
levies) and other contributing factors.
W. IO
Capital Improvement Bonds 2004A
Ice Arena Lease Revenue Bonds 2006
Capital Improvement Bonds 2007D
Improvement Bonds 2007E
Improvement Bonds 2008A
Improvement Refunding Bonds 20098
Improvement Bonds 2011A
Improvement Bonds 2012A
Improvement Bonds 2013A
Street Reconstruction Bonds 2003A
Street Reconstruction Bonds 2005A
Street Reconstruction Bonds 2007H
Street Reconstruction Bonds 2009A
Refunding Bonds 2011 B
Refunding Bonds 20126
Debt Service Total **
$ 320,000 $
932,906
-
315,325
1,143,306
677,113
93,210
-
150,068
-
455,451
278,415
1 57,855
1 57,855
534,776
534,776
-
322,269
1,122,776
950,578
240,242
182,809
231,467
231,467
432,156
370,894
521,228
350,175
1,412,565
$ 6,815,100 $
5,304,582