HomeMy WebLinkAboutItem 08September 19, 2016 Item No.________
RESOLUTION APPROVING THE PRELIMINARY 2017 PROPERTY TAX LEVY AND
PRELIMINARY 2017 BUDGET
Proposed Action
Staff recommends adoption of the following motion: Move to approve the resolution
approving the Preliminary 2017 Tax Levy and Preliminary 2017 Budget.
Overview
Passage of this motion will result in the approval of the 2017 preliminary tax levy of
$26,950,947 and preliminary 2017 General Fund budget as discussed at the August 22 Council
worksession with adjustments made for the following:
1) Lower health and dental insurance increases;
2) Reduced police overtime due to the addition of two new officers; and
3) Reduced debt service levies due to the ice arena debt refinancing and available funds
in the Debt Service Funds.
The proposed 2017 levy shown below is a 4.95% increase over the 2016 levy.
Fund Proposed
2017
Levy
Change
from 2016
($)
General Fund $18,842,000 $288,205
Street Reconstruction 50,000 0
Pavement Management Fund 1,210,000 18,450
Building Fund 150,000 99,000
Equipment Fund 350,000 100,000
Park Improvement Fund 175,000 125,000
Trail Improvement Fund 111,200 33,000
Debt Service Funds 6,062,747 607,673
TOTAL LEVY $26,950,947 $1,271,328
The City tax capacity rate is anticipated to decrease from 38.669% to 37.919%.
The proposed 2017 City tax levy will result in an estimated $24 increase on the median value
home ($268,400) due to both a levy increase as well as a market value increase as determined
by the Dakota County Assessor. The proposed 2017 City tax levy will result in an estimated
$145 decrease on a commercial property valued at $1 million.
The City Council has reviewed primary drivers of revenue and expenditure changes for the
preliminary 2017 General Fund budget. Budgets for other Funds will be discussed at
upcoming scheduled City Council work sessions.
Primary Issues to Consider
• The City Council has the ability to adopt a final tax levy in December that is equal to or
less than the preliminary tax levy approved on September 19, 2016. The City Council
may not, however, adopt a final tax levy that is greater than the preliminary tax levy.
Supporting Information
• Resolution establishing the preliminary 2017 property tax levy and preliminary 2017
budget
• General Fund Summary
Financial Impact: $ Budgeted: Y☒ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
26,950,947
Various
N/A
CITY OF LAKEVILLE
RESOLUTION No. ________
RESOLUTION APPROVING THE PRELIMINARY 2017 PROPERTY TAX LEVY
AND PRELIMINARY 2017 BUDGET
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that
the Preliminary 2017 tax levy in the amount of $26,950,947 is hereby approved as shown
on Exhibits A and B attached hereto.
BE IT FURTHER RESOLVED by the City Council of the City of Lakeville,
Minnesota that the Preliminary 2017 Budget is hereby approved and adopted as follows:
General Fund $26,577,295
APPROVED AND ADOPTED this 19th day of September, 2016 by the City
Council of the City of Lakeville.
CITY OF LAKEVILLE
By: ________________________________
Matt Little, Mayor
ATTEST:
________________________________
Charlene Friedges, City Clerk
EXHIBIT A
PRELIMINARY 2017 PROPERTY TAX LEVY
Total
Non-Debt Service Funds 20,888,200$
Debt Service:
HRA Lease Rev Ref Bonds 2016A 293,550$
Capital Improvement Ref Bonds 2014 563,806
G. O. Improvement Bonds 2009 228,415
G. O. Improvement Bonds 2011 131,513
G. O. Improvement Bonds 2012 469,695
G. O. Improvement Bonds 2013 310,276
G. O. Improvement Bonds 2014 481,425
G. O. Improvement Bonds 2015 412,061
G. O. Improvement Bonds 2016 517,604
S treet Reconstruction Bonds 2007H 214,007
S treet Reconstruction Bonds 2009A 341,156
G. O. Refunding Bonds 2012B 1,908,398
S treet Reconstruction Bonds 2014B 190,841
Subtotal Debt 6,062,747$
Total 26,950,947$
EXHIBIT B
PROPERTY TAX LEVY FOR DEBT
Bond Description
Debt
Schedule Certified Levy
(A)(B)
Ice Arena Lease Revenue Bonds 2006 663,938$ -$
HRA Lease Revenue Refunding Bonds 2016A 293,550 293,550
C apital Improvement Bonds 2007D 1,134,118 -
Improvement Bonds 2007F 55,204 -
Improvement Bonds 2008A (246) -
Improvement Refunding Bonds 2009B 400,155 228,415
Improvement Bonds 2010A 295,000 -
Improvement Bonds 2011A 151,513 131,513
Improvement Bonds 2012A 725,629 469,695
Improvement Bonds 2013A 488,512 310,276
Improvement Bonds 2014A 978,521 481,425
Improvement Bonds 2015A 677,285 412,061
Improvement Bonds 2016B 543,484 517,604
S treet R econstruction Bonds 2007H 231,257 214,007
S treet R econstruction Bonds 2009A 429,951 341,156
Refunding Bonds 2011B 85,005 -
Refunding Bonds 2012B 2,035,635 1,908,398
Refunding Bonds 2014B 1,239,646 754,647
Debt Service Total **10,428,157$ 6,062,747$
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 2017.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.
2016 201720142015Adopted2016DepartmentActualActualBudgetEstimateRequestRevenues (Amount) (Percent) (Amount) (Percent)General property taxes 16,844,083$ 17,857,368$ 18,553,538$ 18,558,250$ 18,833,557$ 280,019$ 1.5%275,307$ 1.5%Licenses and permits 2,159,364 2,655,873 1,855,528 2,251,814 2,057,148 201,620 10.9%(194,666) -8.6%Intergovernmental 809,596 978,596 988,816 1,012,443 1,040,632 51,816 5.2%28,189 2.8%Charges for services 2,499,340 3,388,546 3,149,629 3,260,828 3,266,872 117,243 3.7%6,044 0.2%Court fines 223,642 369,356 315,000 375,000 375,000 60,000 19.0%- 0.0%Investment income 99,179 55,883 40,376 40,000 50,071 9,695 24.0%10,071 25.2%Miscellaneous 71,484 67,495 41,645 41,645 41,360 (285) -0.7%(285) -0.7% Total revenues 22,706,688 25,373,117 24,944,532 25,539,980 25,664,640 720,108 2.9%124,660 0.5%Expenditures - General governmentMayor and Council 93,122 95,965 99,866 98,983 101,090 1,224 1.2%2,107 2.1%Committees and Commissions 70,622 73,175 71,284 73,340 75,660 4,376 6.1%2,320 3.2%City administration 386,351 393,910 413,336 425,602 423,776 10,440 2.5%(1,826) -0.4%City Clerk 183,285 139,779 195,441 200,966 140,219 (55,222) -28.3%(60,747) -30.2%Legal counsel 53,495 68,990 78,178 66,740 67,000 (11,178) -14.3%260 0.4%Planning 418,192 427,404 458,036 465,616 541,161 83,125 18.1%75,545 16.2%Community and econ. development 272,594 288,720 297,952 304,927 359,291 61,339 20.6%54,364 17.8%Inspections 893,563 943,737 1,000,761 1,054,440 1,064,927 64,166 6.4%10,487 1.0%General government facilities 392,356 396,713 427,117 481,852 529,071 101,954 23.9%47,219 9.8%Finance 639,522 684,386 718,826 693,101 760,675 41,849 5.8%67,574 9.7%Information systems 472,685 537,181 543,979 630,892 661,507 117,528 21.6%30,615 4.9%Human resources 344,028 433,294 490,511 548,370 511,453 20,942 4.3%(36,917) -6.7%Insurance 289,075 322,100 182,180 182,180 262,805 80,625 44.3%80,625 44.3% Public safety - 0%Police 8,790,329 9,310,676 9,693,385 9,805,833 10,343,352 649,967 6.7%537,519 5.5%Fire 1,519,138 1,649,260 1,753,089 1,721,560 1,790,444 37,355 2.1%68,884 4.0% Public works - 0%Engineering 715,285 659,432 785,343 800,030 962,941 177,598 22.6%162,911 20.4%Operations and Maintenance 144,811 531,754 652,545 610,516 673,181 20,636 3.2%62,665 10.3%Streets 3,040,942 2,753,580 3,321,247 3,181,685 3,315,293 (5,954) -0.2%133,608 4.2% Parks and recreation - 0%Parks 2,212,461 2,362,566 2,442,197 2,324,197 2,497,723 55,526 2.3%173,526 7.5%Recreation 602,430 635,489 622,974 629,951 673,736 50,762 8.1%43,785 7.0%Heritage Center 101,236 85,516 98,770 85,399 95,822 (2,948) -3.0%10,423 12.2%Arts Center 425,771 474,266 479,173 487,964 502,715 23,542 4.9%14,751 3.0%Other - - 562,501 - 223,453 (339,048) -60.3%223,453 0% Total expenditures 22,061,293 23,267,893 25,388,691 24,874,144 26,577,295 1,188,604 4.7%1,703,151 6.8%
Excess (deficiency) of revenuesover expenditures 645,395 2,105,224 (444,159) 665,836 (912,655) (468,496) 105.5%(1,578,491) -237.1%Other financing sources (uses)Transfer from other funds 759,814 809,935 806,513 806,513 782,655 (23,858) -3.0% (23,858) -3.0%Transfer to other funds - (1,612,000) (50,000) (595,000) (450,000) (400,000) 800.0%145,000 -24.4%Total other financing sources (uses) 759,814 (802,065) 756,513 211,513 332,655 (423,858) -56.0%121,142 57.3%Net change in fund balance 1,405,209 1,303,159 312,354 877,349 (580,000) (892,354) -285.7%(1,457,349) -166.1%Fund balance, January 1 9,666,560 11,071,769 11,406,277 12,374,928 13,252,277 1,846,000 16.2%877,349 7.1%Fund balance, December 31 11,071,769$ 12,374,928$ 11,718,631$ 13,252,277$ 12,672,277$ 953,646$ 8.1%(580,000) -4.4%
Ratio: Fund balance to CY expenditures 50.2%53.2%46.2%53.3%47.7%Ratio: Fund balance to NY expenditures 43.6%49.8%49.9%46.3%
Change from2016Estimate
CITY OF LAKEVILLE, MINNESOTAGeneral FundSchedule of Revenues, Expenditures and Changes in Fund BalancesFor the Year Ending December 31, 2017
Change from2016 AdoptedBudget