HomeMy WebLinkAboutItem 09September 18, 2017 Item No.________
RESOLUTION APPROVING THE PRELIMINARY 2018 PROPERTY TAX LEVY
AND PRELIMINARY 2018 BUDGET
Proposed Action
Staff recommends adoption of the following motion: Move to approve the resolution
approving the Preliminary 2018 Property Tax Levy and Preliminary 2018 Budget and setting
the Budget Public Hearing to be held on Monday, December 4, 2017 at 7:00 p.m. in the
Council Chambers.
Overview
Passage of this resolution will result in the approval of the 2018 preliminary tax levy of
$28,254,268 and preliminary 2018 General Fund budget as discussed at the August 28 Council
work session and will set the date for the budget public hearing.
The proposed 2018 levy shown below is a 5.9% increase over the 2017 levy.
Fund Proposed
2018
Levy
Change
from 2017
($)
General Fund $20,137,100 $1,295,100
Street Reconstruction 50,000 0
Pavement Management Fund 1,191,550 0
Building Fund 420,000 270,000
Equipment Fund 575,000 225,000
Park Improvement Fund 175,000 0
Trail Improvement Fund 111,200 0
Debt Service Funds 5,594,418 (215,446)
TOTAL LEVY $28,254,268 $1,574,654
The City tax capacity rate is anticipated to decrease from 37.510% to 36.661%.
The proposed 2018 City tax levy will result in an estimated $49 increase on the median value
home ($284,400) due to both a levy increase as well as a market value increase as determined
by the Dakota County Assessor.
Existing commercial properties, in the aggregate, increased in market value by 3%. The
proposed 2018 City tax levy will result in an estimated $56 increase on a commercial property
valued at $1 million with a 3% increase in value. The amount communicated at the council
workshop did not consider any valuation change.
The City Council has reviewed primary drivers of revenue and expenditure changes for the
preliminary 2018 General Fund budget. Budgets for other Funds will be discussed at
upcoming scheduled City Council work sessions.
City councils are required, prior to September 30, to certify to the County Treasurer/Auditor
the date for the budget hearing. The purpose of the hearing is to present the budget and
proposed tax levy as well as provide property owners the opportunity to ask questions and
make comments.
The budget hearing is proposed to be held on Monday, December 4, 2017 at 7:00 PM in the
Council Chambers. The final approval of the budget and tax levy is scheduled for Monday,
December 4, 2017, as well.
Primary Issues to Consider
• The City Council can adopt a final tax levy in December that is equal to or less than the
preliminary tax levy approved on September 18, 2017. 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 2018 property tax levy and preliminary 2018
budget and setting the public budget meeting;
• 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
28,254,268
Various
N/A
CITY OF LAKEVILLE
RESOLUTION No. ________
RESOLUTION APPROVING THE PRELIMINARY 2018 PROPERTY TAX LEVY AND
PRELIMINARY 2018 BUDGET
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that the
Preliminary 2018 tax levy in the amount of $28,254,268 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 2018 Budget is hereby approved and adopted as
follows:
General Fund $27,801,896
BE IT FURTHER RESOLVED by the City Council of the City of Lakeville,
Minnesota that the Public Budget Hearing will be held on Monday, December 4, 2017
at 7:00 pm in the Council Chambers.
ADOPTED by the Lakeville City Council this 18th day of September 2017
CITY OF LAKEVILLE
By: _____________________________
Douglas P. Anderson, Mayor
ATTEST:
________________________________
Charlene Friedges, City Clerk
EXHIBIT A
PRELIMINARY 2018 PROPERTY TAX LEVY
Total
Non-Debt Service Funds 22,659,850$
Debt Service:
HRA Lease Rev Ref Bonds 2016A 292,500$
Capital Improvement Ref Bonds 2014 560,918
G. O. Improvement Bonds 2009 228,415
G. O. Improvement Bonds 2011 130,135
G. O. Improvement Bonds 2012 23,438
G. O. Improvement Bonds 2013 127,258
G. O. Improvement Bonds 2014 84,470
G. O. Improvement Bonds 2015 360,048
G. O. Improvement Bonds 2016 558,294
G. O. Improvement Bonds 2017 676,559
G. O. Improvement Bonds 2018 65,000
Street Reconstruction Bonds 2009A 341,880
G. O. Refunding Bonds 2012B 1,955,897
Street Reconstruction Bonds 2014B 189,606
Subtotal Debt 5,594,418$
Total 28,254,268$
EXHIBIT B
PROPERTY TAX LEVY FOR DEBT
2018
2018 CERTIFIED
BOND DESCRIPTION SERIES DEBT LEVY DEBT LEVY
STREET RECONSTRUCTION 2009A 425,161$ 341,880$
REFUNDING 2009B 394,223$ 228,415$
IMPROVEMENT 2011A 150,135$ 130,135$
REFUNDING 2011B 83,627$ -$
IMPROVEMENT 2012A 507,441$ 23,438$
IMPROVEMENT 2012B 2,086,035$ 1,955,897$
IMPROVEMENT 2013A 327,258$ 127,258$
IMPROVEMENT 2014A 974,426$ 84,470$
REFUNDING 2014B 1,235,524$ 750,524$
IMPROVEMENT 2015A 679,209$ 360,048$
ICE ARENA LEASE REVENUE BOND 2016A -$ 292,500$
GENERAL OBLIGATION 2016B 638,708$ 558,294$
GENERAL OBLIGATION 2017A 676,559$ 676,559$
GENERAL OBLIGATION 2018 65,000$ 65,000$
8,243,305$ 5,594,418$
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 2018. 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.
2017 2017 2018
2015 2016 Adopted Amended 2017 Preliminary
Actual Actual Budget Budget Estimate Budget
Revenues (Amount) (Percent) (Amount) (Percent)
General property taxes 17,853,892$ 18,474,652$ 18,833,557$ 18,833,557$ 18,829,967$ 20,113,304$ 1,279,747$ 6.8%1,283,337$ 6.8%
Licenses and permits 2,655,873 3,008,050 2,202,952 2,202,952 2,711,469 2,350,632 147,680 6.7%(360,837) -13.3%
Intergovernmental 982,072 1,024,004 1,021,685 1,021,685 1,039,367 992,788 (28,897) -2.8%(46,579) -4.5%
Charges for services 3,388,546 3,572,203 2,666,697 2,666,697 2,586,560 2,900,495 233,798 8.8%313,935 12.1%
Court fines 369,356 406,269 466,000 466,000 422,593 425,000 (41,000) -8.8%2,407 0.6%
Investment income 55,883 71,327 90,071 90,071 81,000 90,071 - 0.0%9,071 11.2%
Miscellaneous 67,495 75,676 37,860 37,860 43,680 47,303 9,443 24.9%3,623 8.3%
Total revenues 25,373,117 26,632,181 25,318,822 25,318,822 25,714,636 26,919,593 1,600,771 6.3%1,204,957 4.7%
Expenditures - -
General government
Mayor and Council 95,965 97,000 101,090 101,090 100,193 107,230 6,140 6.1%7,037 7.0%
Committees and Commissions 73,175 83,944 75,660 75,660 85,529 87,600 11,940 15.8%2,071 2.4%
City administration 393,910 414,387 423,147 423,147 418,111 476,690 53,543 12.7%58,579 14.0%
City Clerk 139,779 193,838 139,774 139,774 141,009 203,440 63,666 45.5%62,431 44.3%
Legal counsel 68,990 56,533 57,000 57,000 78,591 80,000 23,000 40.4%1,409 1.8%
Planning 427,404 452,198 564,262 564,262 530,792 583,588 19,326 3.4%52,796 9.9%
Community and econ. development 288,720 292,609 358,272 358,272 314,029 342,808 (15,464) -4.3%28,779 9.2%
Inspections 943,737 1,156,351 1,061,584 1,061,584 1,129,108 1,245,861 184,277 17.4%116,753 10.3%
General government facilities 396,713 479,464 529,611 529,611 525,295 560,060 30,449 5.7%34,765 6.6%
Finance 684,386 681,109 759,615 759,615 745,547 764,879 5,264 0.7%19,332 2.6%
Information systems 537,181 565,595 620,742 620,742 582,912 671,337 50,595 8.2%88,425 15.2%
Human resources 433,294 502,406 520,626 520,626 500,037 509,940 (10,686) -2.1%9,903 2.0%
Insurance 322,100 182,180 182,180 182,180 285,000 285,000 102,820 56.4%- 0.0%
Public safety - 0%
Police 9,310,676 9,824,511 10,493,244 10,493,244 10,425,913 11,197,924 704,680 6.7%772,011 7.4%
Fire 1,649,260 1,714,102 1,788,770 1,788,770 1,818,148 1,859,977 71,207 4.0%41,829 2.3%
Public works - 0%
Engineering 659,432 673,021 1,005,397 1,005,397 885,466 966,080 (39,317) -3.9%80,614 9.1%
Operations and Maintenance 531,754 479,351 664,477 664,477 498,642 542,071 (122,406) -18.4%43,429 8.7%
Streets 2,753,580 2,788,385 3,276,483 3,276,483 3,234,614 3,358,292 81,809 2.5%123,678 3.8%
Parks and recreation - 0%
Parks 2,362,566 2,310,223 2,541,925 2,541,925 2,522,866 2,649,966 108,041 4.3%127,100 5.0%
Recreation 635,489 598,885 672,981 672,981 655,254 684,172 11,191 1.7%28,918 4.4%
Heritage Center 85,516 96,594 95,822 95,822 130,334 129,192 33,370 34.8%(1,142) -0.9%
Arts Center 474,266 499,436 502,337 502,337 527,627 538,879 36,542 7.3%11,252 2.1%
Other - - - - - (43,090) (43,090) 0%(43,090) 0%
Total expenditures 23,267,893 24,142,122 26,434,999 26,434,999 26,135,017 27,801,896 1,366,897 5.2%1,666,879 6.4%
Excess (deficiency) of revenues
over expenditures 2,105,224 2,490,059 (1,116,177) (1,116,177) (420,381) (882,303) 233,874 -21.0%(461,922) 109.9%
Other financing sources (uses)
Transfer from other funds 809,935 806,513 782,655 782,655 782,655 777,303 (5,352) -0.7% (5,352) -0.7%
Transfer to other funds (1,612,000) (595,000) (1,145,000) (1,145,000) (1,888,191) (644,508) 500,492 -43.7%1,243,683 -65.9%
Total other financing sources (uses) (802,065) 211,513 (362,345) (362,345) (1,105,536) 132,795 495,140 -136.6%1,238,331 -112.0%
Net change in fund balance 1,303,159 2,701,572 (1,478,522) (1,478,522) (1,525,917) (749,508) 729,014 -49.3%776,409 -50.9%
Fund balance, January 1 11,071,769 12,374,928 14,121,784 14,121,784 15,076,500 13,550,583 (571,201) -4.0%(1,525,917) -10.1%
Committed Fund Balance 45,000 - - - - - - 0%- 0%
Fund balance, December 31 12,374,928$ 15,076,500$ 12,643,262$ 12,643,262$ 13,550,583$ 12,801,075$ 157,813$ 1.2%(749,508) -5.5%
Adj Fund Balance, Dec 31 (net of restricted)11,927,644$ 14,380,670$ 11,947,432$ 11,947,432$ 12,854,753$ 12,105,245$
Ratio: Fund balance to CY expenditures 51.3%58.8%45.2%45.2%49.2%43.5%
Ratio: Fund balance to NY expenditures 45.1%55.0%43.9%43.0%46.2%42.0%
CITY OF LAKEVILLE, MINNESOTA
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
For the Year Ending December 31, 2018
Change from
2017
Estimate
Change from
2017 Adopted
Budget