HomeMy WebLinkAbout9A - 2009 Prior Lake Budgets and Property Tax Levy
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
DECEMBER 15, 2008
9A
Jerilyn Erickson, Finance Director
CONSIDER APPROVAL OF RESOLUTION ADOPTING 2009 PRIOR LAKE
BUDGETS AND CERTIFYING FINAL 2009 CITY OF PRIOR LAKE
PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION
Introduction
The purpose of this agenda item is to consider approval of the 2009 budgets
for the City of Prior Lake's General Fund and Enterprise Funds and to
determine the City's final 2009 property tax levy for certification to the Scott
County Department of Taxation office.
Historv
The official budget process started in the middle of April with the Council
approving an initial budget timetable. This timetable outlined the budget
development process and required truth-in-taxation steps necessary to
prepare and eventually adopt the City's 2009 operating budgets.
The Council conducted its first 2009 budget workshop on June 2, 2008. The
discussion that took place was fairly general. The objectives of the proposed
2009 general operating budget were reviewed along with possible program
additions. Also, the City Council was approached as to any specific service
priorities that should be incorporated into the budget for 2009. At the
conclusion of the first budget study session, Council direction was for Staff to
prepare an operating budget for 2009 that would accomplish these primary
objectives while minimizing the property tax impact.
Following this meeting the Council conducted its initial review of the proposed
2009 budget requests, including the General, Water and Sewer, Water
Quality, and Transit enterprise fund budgets, at its second workshop on
August 12, 2008. An explanation of the proposed property tax levy was
reviewed along with an explanation of new proposed budget expenditures. At
the conclusion of the workshop Council direction was for a property tax
outcome that would represent a decrease in taxes to the average valued
residential property.
On September 15, 2008 the City Council approved the preliminary budgets for
the General Fund and Enterprise Funds and the initial levy under Resolution
08-127 with a proposed property tax levy increase of approximately 5.5% but
with a slight tax decrease in the city portion of the property taxes for the
average valuation home in Prior Lake. Following public notification in the Prior
Lake American and individual parcel mailings, the truth-in-taxation (TNT)
hearing was then conducted on December 1, 2008. Three citizens attended
the TNT hearing. One resident presented comments at the hearing which
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centered primarily on valuation concerns. The minutes from the TNT hearing
are part of this agenda packet.
Following the TNT hearing, the Council further discussed the tax impact of the
tax levy and budgets that were being considered. Council directed staff to
come up with options for up to $200,000 in budget reductions and the impacts
which these reductions could have on City services. The City Council will
receive a report on this subject before the budget workshop scheduled for 4:30
p.m. on December 15.
Current Circumstances
The 2009 General Fund budget submitted for your consideration totals
$12,702,974 which includes necessary taxing for general operating
expenditures, capital outlay and debt service levies.
Highlights of the proposed General Fund budget include the following major
items:
o Personnel additions - full-time fire chief and part-time police secretary
o Legal (general/prosecution)
o Property/liability insurance
o Building utilities
o Fuel
o Debt service
o Contingency
The 2009 Enterprise Fund budgets submitted for your consideration are as
follows:
Water & Sewer Fund
Water Quality Fund
Subtotal Utilities ...
Transit Fund
$ 5,191,706
421,806
$ 5,613,512
810,120
$ 6,423,632
Total.. .
Highlights of the proposed Enterprise Fund budgets include the following major
items:
o Brooksville Hills (phase II)
o Inflow/infiltration improvements
o Lift station controls standardization upgrade
o Lake water quality program
DRain garden/shoreland restoration
o Stormwater pond dredging
o Outlet box and channel improvements
o Additional transit services
FINANCIAL
IMPACT:
The proposed General Fund budget of $12,702,974 represents an increase of
$276,543 or 2.23% above the current level of expenditures. The proposed
property tax levy represents an increase of $516,118 or 5.51 % above the 2008
levy. The levy is comprised of the following elements:
ALTERNATIVES:
RECOMMENDED
MOTION:
ReVie~J)
Frank BOYJ
PurDose
General levy
Referendum debt levies
EDA building bond levy
Revolving equipment fund levy
CIP special debt levies
Total Proposed Property Tax Levy
Amount
$7,004,828
1,039,614
586,120
250,000
1,000,993
$9,881,555
On average, the market valuation of Prior Lake residential properties increased
by .03% for taxes payable 2009. The average-valued home of $300,000 will
experience an approximate .67% decrease in the city portion of their property
tax.
The proposed enterprise fund budgets, $6,423,632, represent an increase of
$433,379 or 7.23% above the current level of expenditures. These funds
support our water and sewer utilities, water quality and transit systems.
The following alternatives are available to the City Council:
1. Approve Resolution Adopting 2008 Prior Lake Budgets and Certifying
Final 2008 City of Prior Lake Property Tax Levy to Scott County
Department of Taxation.
2. Amend Resolution according to specified Council changes.
Alternative 1. Staff would recommend that the City Council approve the
resolution as submitted or with amendments as may be appropriate following
the budget workshop held prior to this last regular meeting date in 2008. The
final property tax levy amount must be certified to the Scott County
Department of Taxation Office no later than 5 working days after December
20th (December 29, 2008) as prescribed by Minnesota statute.
RESOLUTION ADOPTING 2009 PRIOR LAKE BUDGETS AND
CERTIFYING FINAL 2009 CITY OF PRIOR LAKE PROPERTY TAX LEVY
TO SCOTT COUNTY DEPARTMENT OF TAXATION
Motion By:
Second By:
WHEREAS, The City Council of the City of Prior Lake conducted a Truth in Taxation public hearing
on December 1, 2008 pursuant to state requirements; and
WHEREAS, The City Council hereby adopts the following 2009 budgets; and
General Fund
Water & Sewer Fund
Water Quality Fund
Transit Fund
Total
$ 12,702,974
5,191,706
421,806
810,120
=l!~, 126,60_~
WHEREAS, The City of Prior Lake's General Fund operating budget tax levy is hereby equivalent to
$8,630,562; and
WHEREAS, The Revolving Equipment Fund levy amount is $250,000; and
WHEREAS, Special debt levies account for an additional tax levy of $1,000,993 of which the Scott
County cooperative agreement appropriation of $159,023 for CSAH 82 is included; and
WHEREAS, The total property tax levy approved has been determined to be $9,881,555.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. That the proposed tax levy be distributed upon the taxable property in said City for the following
purposes in payable 2009:
Puroose Amount
* For General City Purposes $ 7,004,828
* Revolving Equipment Fund 250,000
* G.O. Improvement Bonds '99 (Candy Cove) 39,000
* G.O. Improvement Bonds '00 (Oak Ridge) 65,000
* G.O. Improvement Bonds '01 (Frog Town) 55,000
* G.O. Improvement Bonds '02 (Pixie Point) 55,000
* G.O. Improvement Bonds '03 (150th Street) 100,000
* G.O. Improvement Bonds '04 (Breezy Point) 157,000
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Phone 952.447.9800 1 Fax 952.447.4245
."
G.O. Improvement Bonds '05 (Fish Point)
CSAH 82 Improvement Appropriation '06
G.O. Street Reconstruction Bonds '07
G.O. Improvement Bonds '08 (Brooksville I)
G.O. Building Bonds '05 (EDA)
Fire Hall Referendum Bonds '08 (Refunding)
Park Referendum Bonds '97
Fire Station Referendum Bonds '06
Total...
100,000
159,023
179,970
91 ,000
586,120
166,053
660,206
213.355
$ 9,881,555
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Note: Single starred funds shall be spread over the entire consolidated City of Prior Lake.
Note: Double starred funds represent market value based referendum taxes and shall be spread over
the entire consolidated City of Prior Lake.
Note: All other bond issues have sufficient fund balances to cover debt requirements.
PASSED AND ADOPTED THIS 15TH DAY OF DECEMBER, 2008.
YES
NO
Haugen
Erickson
Hedberg
LeMair
Millar
Haugen
Erickson
Hedberg
LeMair
Millar
Frank Boyles, City Manager
R:\Council\2008 Agenda Reports\ 12 15 08\Resolution - 2009 Budget & Tax Levy - 12.15.2008.doc