HomeMy WebLinkAboutItem 10Date December 6, 2010
Primary Issues to Consider
Supporting Information
Dennis Feller, Finance Director
Public hearing: Truth in Taxation
Item No.
Proposed Action
Conduct a "Truth in Taxation" public hearing.
Minnesota Statutes require a public hearing prior to adoption of the 2011 budget and tax levy.
Overview
The purpose of the hearing is to present the proposed 2011 budget and tax levy and provide
taxpayers the opportunity to ask questions and present comments.
At the hearing, a succinct overview of the budget and tax levy will be presented. After all
persons have had an opportunity to speak, the City Council should close the hearing. Adoption of
the budget and tax levy will be at the regularly scheduled meeting on Monday, December 20,
2010.
• Budget adjustments. Copies of the exhibits relating to budget adjustments which were
discussed with the Council at the November 22 work session are attached.
•
'Fax levy. Changes to the preliminary tax levy and comparison with 2010 tax levy.
• Budget document. Please bring the document with you to the Council meeting.
Tax Levy Financial Impact: 524,036,652 Budgeted: Yes Source: Various f
Related Documents (CIP, ERP, etc.):
Notes:
Primary Issues to Consider
• Change to the tax Ievv since the Preliminary Levy was adopted on September 7.
The following is a summary of proposed tax levy changes recommended by the City Council at
the November 22 work session.
Operations (including pavement
management and equipment)
Debt levy
Total levy before MVHC
Market Value Homestead Credit
Total tax levy
The proposed 2011 tax levy compared to the 2010 tax levy is as follows:
Operati ons
Pavement Management
Equipment
Debt
Total before MVHC
Market Value Homestead
Credit
Total tax levy
2010
Adopted
$ 16,214,408
1,258,688
966,063
49,71 9,325
23,411,091
630,561
$ 24,041,652
2011 2011
Preliminary Adjust Revised
18,619,742 $ (5,000) 18,614,742
4,633,883 - 4,633,883
$ 23,253,625 $ (5,000) 23,248,625
788,027 - 788,027
$ 24,041,652 $ (5,000) 24,036,652
2011
Revised
$ 16,187,544
1,546,958
880,240
4,633,883
23,248,625
788,027
$ 24,036,652
Increase/
(Decrease)
$ (26,864)
288,270
(85,823)
(338,049)
(162,466)
157,466
$ (5,000)
GENERAL FUND
(1)
Revenues as adjusted
Expenditures as adjusted
Netlncrease /(Decrease)
Beginning Fund Balance as adjusted
Ending Fund Balance as adjusted
Fund Balance as a Percentage of Expenditures
GENERAL FUND REVENUES
GENERAL PROPERTY TAXES
Reduce 2011 tax levy ($5,000) to correspond with the elimination
of the 2011 Mayor and Council goal setting retreat facilitator.
General Property Taxes
LICENSES AND PERMITS
(1) Building permit revenue revised estimates.
Plan review fees
Building
Plumbing
Water /sewer
Mechanical
Electrical
INTERGOVERNMENTAL REVENUE
(1) Reduce State aid - police based on 2010 actual amount
received.
(2) Incr 2010 Federal grants for the final portion of the "2008
Safe Routes to School" grant to be received.
CHARGES FOR SERVICES REVENUE
Police
(1) Adjust Police security charges for Pan -O -Prog as follows:
Lakeville Lions (Security, Beer, Brats & Bingo reimb.)
VFW (Security reimbursement)
Babe's (Security, Dance reimbursement)
EXHIBIT A
MISCELLANEOUS REVENUE
(1) Pan -O -Prog Committee reimbursement for portable restrooms,
trash pickup, and staff time to deliver and pickup show mobile
Total Revenue Adjustments - Increase (Decrease)
Total Expenditure Adjustments - Increase (Decrease)
Net Adjustments to Fund Balance - Increase (Decrease)
28
2010
ESTIMATE
17,818,564
20,410,092
(2,591,528)
11, 206, 725
8,615,197
42.2%
(10,639)
(21, 390)
(537)
(537)
(985)
(
(14,043)
5,612
317
26
144
2,189
2011 2012
ESTIMATE ESTIMATE
20,616,725 21,392,282
20,840,114 21,229,680
(223,389) 162,602
8,615,197 8,391,808
8,391,808
40.3%
(5,000)
(23,929)
(57,676)
(1,521)
(1,521)
(2,417)
(2,416)
(14,043)
326
27
149
2,186
(40,828) (105,835)
(40,828) (105,835)
8,554,410
40.3%
(31,806)
(77,432)
(2,058)
(2,059)
(3,222)
(3.222)
(14,043)
335
27
153
2,063
(131,264)
(131,264)
GENERAL FUND EXPENDITURES
MAYOR AND COUNCIL
(i) Eliminate the 2011 Mayor and Council goal setting retreat
facilitator ($5,000) and a corresponding tax levy reduction.
Professional Services (5,000)
CITY ADMINISTRATION
(1) Increase professional services for an ICMA Consulting - HIPP
Reset Project.
Professional Services 2,340
COMMITTEES AND COMMISSIONS
Pan-O-Proq - 1013
(2) Adjust Pan -O -Prog expenses based on the 2010 actual as
follows:
Personnel (Fireworks event) 450 463 477
Personnel (Non - Fireworks events) 5,113 5,268 5,427
Commodities (Fireworks event) - - -
Commodities (Non- Fireworks events) 1,199 1,234 1,289
Other Charges and Services (Fireworks event) (57) (89) (121)
Other Charges and Services (Non- Fireworks events) (39) (41) (42)
INSPECTIONS
Adjust salaries and benefits based on 2010 personnel
(3) transitions.
GENERAL GOVERNMENT BUILDINGS
(4) Adjust salaries and benefits based on 2010 personnel
transitions.
HUMAN RESOURCES
(5} Add the hiring costs of replacing a Patrol Sergeant 1/1/2011 as
follows:
Professional services (psych /physicals /recruitment), No
advertising costs required on the League of MN Cities website.
(6) Add the hiring costs of replacing the Fire Chief in 2010.
Professional Services (candidate assessments). Fund from
2010 contingency.
(7) Increase professional services for a 2010 arbitration case.
Professional services (arbitration services fees)
Reduce professional services for management assessments
(8) ($5,500) and other consultant fees ($10,000) not required in
2010.
29
EXHIBIT A (cont)
2010 2011 2012
ESTIMATE ESTIMATE ESTIMATE
(4,798)
(4,206)
1,100
8,250
13,492
(15,500)
(44) 3,459
(8,735) (6,010)
GENERAL FUND EXPENDITURES (Cont.)
EXHIBIT A (cont.)
2010 2011 2012
ESTIMATE ESTIMATE ESTIMATE
POLICE
Administration - 1200
Add evaluation cost for shooting range site clean -up on a cost
share with Dakota County Sheriff. Fund from 2010 contingency.
Miscellaneous 4,100
Patrol - 1220
(10) Adjust personnel and clothing costs for a Patrol Officer to replace
a Sergeant 1/1/2011.
Wages and benefits (31,865) (41,198) (32,477)
Clothing (Uniform Initial Issue) 5,500
Police Chaplain - 1236
(11) Remove the annual cost of pager rental for the Chaplain. (250) (250) (250)
New Police Station Building Maintenance - 1281
Reduce cost of 2012 lunchroom floor covering replacement
(12) based on most recent quote. (1,500)
(
FIRE
(13) Adjust salaries and benefits based on 2010 personnel
transitions.
(14) Add emergency repairs to ladder truck L -4 hydraulic system.
Fund from 2010 contingency.
ENGINEERING
Add the cost of a Traffic Control Evaluation for the intersection of
(15) Flagstaff Avenue and 179th Street conducted by SRF
Consulting
Add the cost of a Traffic Study for Traffic Concerns related to the
(16) Lakeville South High School surrounding area conducted by SRF
Consulting
PARKS
(17) Adjust salaries and benefits based on 2010 personnel
transitions
(18) Adjust warming house attendant wages based on normal
weather patterns.
Overall
(19) Dental insurance premiums
Total Expenditure Adjustments - Increase (Decrease)
30
(7,589)
7,485
1,500
(20,842)
INTERFUND TRANSFERS OUT
(1) Transfer to Equipment Fund 270,673
CONTINGENCY
1 Reduce 2010 Estimated Contingency to be used for the transfer )
O to the Equipment Fund ($270,673). (270,673
Reduce the 2010 - 2012 Contingency amounts to be used to
(2) offset the above net budget adjustments for revenue and (6,211)
expenditures.
(19,169) (17,007)
7,500
(11,451) (9,393)
(4,054) (4,062)
(39,183) (79,968)
8,914 8,914
(40 _... (105,835) __ (131,264)
CAPITAL PROJECTS IMPROVEMENT
MUNICIPAL STATE -AID FUND
REVENUES
None
Total Revenue Adjustments - Increase (Decrease)
EXPENDITURES
Increase the City's 2011 cost of the Cedar Avenue 3rd lane -
(1) 161st Street - 179th Street trail lighting by $359,000 and a
corresponding reduction in year 2014 by same amount.
Total Expenditure Adjustments - Increase (Decrease)
Net Changes
Fund Balance Before Adjustments
Fund Balance After Adjustments
CAPITAL PROJECTS IMPROVEMENT
CONSTRUCTION FUND
REVENUES
None
Total Revenue Adjustments - Increase (Decrease)
EXPENDITURES
(1 ) Increase the City's cost share of the County Road 50/60
roundabout design consistent with Dakota County CIP.
Total Expenditure Adjustments - Increase (Decrease)
Net Changes
Fund Balance Before Adjustments
Fund Balance After Adjustments
EXHIBIT B
31
2010 2011 2012
ESTIMATE ESTIMATE ESTIMATE
2,003,684
2,003,684
359,000
359,000
(359,000)
1,736,977
1,377,977
589,377
230,377
2010 2011 2012
ESTIMATE ESTIMATE ESTIMATE
45,000
45,000 -
(45,000) -
612,127 479,477 255,727
612,127 434,477 210
CAPITAL PROJECTS - EQUIPMENT FUND
REVENUES
(1) Police Federal Byrne grant
(2) Private Donations - Fire extinguisher trainer
(3) Sale of assets (4100.5010)
Total Revenue Adjustments - Increase (Decrease)
EXPENDITURES
Police
EXHIBIT C
(185)
149
33,896
33,860
(4) Police sweeper broom. (8,016)
(5) Remove replacement tasers budgeted in 2010. (5,245)
(6) Reduce overall police 2010 expenses based on actual. (2,630)
(7) Old Police Station site Alarm System. (1,598)
Fire
(8) Reduce the cost of the 2010 SCBA replacements based on bid
awarded.
(9) Add the cost of 4 6000 PSI UN DOT Cylinders for Station #3.
(10) SCBA Seat Brackets for new SCBA purchased in 2010. (18,282)
(11) Purchase tender truck (chasis portion only) in 2010. Truck body
will be constructed in the 2011.
(12) Increase overall fire 2010 expenses based on actual.
(14) Increase overall streets 2010 expenses based on actual.
Total Expenditure Adjustments - Increase (Decrease)
Net Changes
Fund Balance Before Adjustments
Fund Balance After Adjustments
32
2010 2011 2012
ESTIMATE ESTIMATE ESTIMATE
(41,775)
4,800
79.624
2,476
(
25,976
7,884
1.385, 709
1,393,593
(91, 644)
Streets
(13) Adjust cost of 2 dump trucks with plows (23,157)
(109,926) (23,157)
109,926
888,711
1,006,521
23,157
623,350
764,317
UTILITY FUND - SANITARY SEWER OPERATION
REVENUES
None
Total Revenue Adjustments - Increase (Decrease)
EXPENSES
(1) Adjust MCES budget based on actual.
Total Expense Adjustments - Increase (Decrease)
Net Changes
EXHIBIT D
33
2010 2011 2012
ESTIMATE ESTIMATE ESTIMATE
9,001
9,001
(9,001)
Working Capital Before Adjustments 2,325,428 2,487,951
Working Capital After Adjustments 2,325,428 2,478,950
9,391
9,391
(9,391)
2,475,245
2,456,853