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Home My WebLink About7A - Truth in Taxation 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DECEMBER 1,2003 7A RALPH TESCHNER, FINANCE DIRECTOR TRUTH IN TAXATION PUBLIC HEARING FOR PROPOSED 2004 CITY BUDGETS (PUBLIC HEARING) DISCUSSION: The purpose for the public hearing tonight is to provide information to the public regarding the city's proposed 2004 Operating Budget and the amount of property taxes that the City proposes to collect in 2004. Also, it is important to give the residents the opportunity to express their opinions on the budget and those services that are important to the taxpayers. Any written comments submitted previous to the hearing are to be entered into the official record. Staff will provide a short presentation with respect to the proposed 2004 general fund budget and enterprise fund budgets that were previously adopted by the City Council on September 2, 2003. Under Truth-in-Taxation guidelines the City Council adopted the preliminary budgets and tax levies on September 2,2003. The City Council CANNOT TAKE ANY ACTION with respect to adopting the 2004 budgets during the course of the public hearing. If all public concerns cannot be addressed during this time, the Truth- in-Taxation hearing could be continued until 7:00 P.M. Monday, December 8, 2003 at the Fire Station. This meeting would be a special council meeting to conclude the public comment period. The final budgets and property tax levy would then be considered for approval by the City Council at its last regularly scheduled meeting on Monday, December 15,2003. By Minnesota Statute the final property tax levy amount must be certified to the Scott County Auditor's Office no later than 5 working days after December 20th (December 29, 2003). ALTERNATIVES: 1. Close the public hearing and direct the Staff to place this item on the December 15,2003 City Council agenda. 2. Continue the public hearing until December 8, 2003 at 7:00 P.M. if there are questions that cannot be answered on December 1st. www.cityofpriorlake.com H:\BUDGETI03tntrpt.doc Phone 952.447.4230 / Fax 952.447.4245 RECOMMENDED MOTION: Motion to either close t e public hearing or continue the hearing to 7:00 P.M., Monday D ember 8, 2003. REVIEWED BY: H:\BUDGETl03tntrpt.doc Public Infonnation Hearing DeCEMBER 1, 2003 .. *,/ 2004 Budget Process Remaining . Tonight's Truth-in-Taxation Hearing. . Truth-in-Taxation Hearing Continuation on December 8th (if necessary). . Budget and Levy adopted by City Council on December 15, 2003 regular meeting. -. ~. 2004 Budget Accomplishments General: . Provides Resources to Pursue 2020 Vision and Strategic Plan. . Addresses State Financial Cutbacks. . Done in a Taxpayer-Friendly Fashion. .. ,iJ' 2004 Budget Process to Date . City Council and Staff have conducted two work sessions on the proposed budget. . City Council adopted a preliminary Budget and Levy. . Truth-in-Taxation notices mailed. -. l':;' Conditions that Affect 2004 Budget External Factors . Located in the fastest growing County In the upper midwest, and 8111 fastest growing County in the nation. . State Imposed Levy Limits. . State LGA I Market Value Cutbacks. . National Economic Trends. Internal Factors . Existing multi-year labor agreements. . Existing multi-year service I product agreements. . Development Continuing at Robust Levels. . Prior Lake Cash Management Practices. . 2020 Vision and Strategic Plan. -. w 2004 Budget Accomplishments In Resoonse to 2020 Vision (bv Vision Element): City Financial Resources I Partnerships: . Development Fees Downtown Redevelopment: . Parking Plan . Streetscape Project . Rain Gardens . Street Reconstruction Communication: . Develop Diversified On.going Communication Pian. 1 -. f!j;,:' 2004 Budget Accomplishments In Resoonse to 2020 Vision (bv Vision Element): Economic Development: . N_ Community Development Director position . Comprehensive Plan Update Housing Quality & Diversity: . Refine Zoning Categories Natural Resources: . Complete Surface Water and Natural Resources Management Plans . Address Issue of Docks. -. m 2004 Budget Accomplishments State Cut Backs: Market Value Credit loss: Local Government Aid loss: $365.406 $ 44.590 'r (\1 tll\' 17));1 h t tt I Hil I XII 1,1 1 \\1'11 (1 , ~EDlJCTJON Ii i( ( ,', 'I, f pt( ~'i f I I t\ t I. I, I I \ I ( t:' I j( I 'I'll -,J ( I' j I 1 j I ,1 11) t)1 '/ $409,996 -.~$: Budget Differences by ActIvity for general Fund -. ~ '04ProDOlOd !Jau&t 1JJIua Ma)U&COUDCiI $SQ,973 $49,313 -3.26% -$1.660 0nIiDance $9,500 $9,500 0.00% $0 CIIy ~ 5341,665 S290,413 -15.80% -551,151 _& COIIIJIissicDs $12.824 $9,324 -2U9% -$3.500 EIoclims S3,sS3 $10,734 202.11% 57,181 Din:cIOr of Finance $111.658 $118.888 "..." S7,230 ~ S13O,045 51-43.052 10.00% $J3.007 _ Auditing S14,900 $13,400 -10.07% -$1.500 Assessing $67,900 $78,100 15.02% SIO,200 UlW S242,000 S236,OOO -H8% -$6.000 .......... $73.003 $13,696 0.91% S663 c_....._ 58 5110,609 '8Ia 5118,609 PIaulacA z..ma $191,761 S131_ -18.82% -$60,757 -. :,: . 2004 Budget Accomplishments In Resoonse to 2020 Vision (bv Vision Element): Infrastructure: . Acquire Athlellc Field site . Continue Planning for Police Station I City Hall ConstrucUon Project. Transportation: . Complete Ring Road . County Road 21 Con1dor Study . Design Main Ave I Rldgemont I TH13 I~Uon Urban Expansion Area: . Program Areas for Sewer & Water In Capital Improvement Program . Comprehensively Plan and Zone Annexation Areas. -. .;,;: . 2004 Proposed Budget by the Numbers 1IYsIul: Prior Lake's 2004 General Fund Budget as proposed is $8,751,570, which is 1.33% higher than 2003. (+115,038) Tax~: Prior Lake's net 2004 Property Tax Levy would inaease by $476,472 from 2003 and would represent a 8.4% inaease. -. l' Budget Differences by ActIvIty for General Fund Data Proccuing $92,700 $107,525 15.99% $14,825 BuiIdiDp &: PIIol $270,713 $291.133 7,$4% $20,420 PolIce $2,1ll6,318 $2,177"'7 3.40% $71,6Z9 FIre" a- S394,Z59 S44G,753 11.79% S46,494 BuiIdins ~ $428,880 $458.069 6,81% $29,189 Civil Def..... $28,150 $27,650 -L78% -$500 Aoimo1 C-..J $16,010 $16,010 0,00% $0 ~ SS15,66O $SSI,2S4 6.90% $35,594 S_ $591,117 $595,763 0,79% $4,646 Catnll c;.np 5194,195 $235,536 11.19% $41,341 Reereatloll 5687,565 $358,088 -47.91% -1319,477 Patts $917,809 $954,782 4.03% $36,973 Libnlrics $70,815 $72,335 2.1S'-. $1,520 2 -. Iii" Budget Differences by ActIvity for General Fund Eeooomle Development 567,359 5245,432 264.36% 5178,873 Debt Service $755,170 $770,260 2.00010 $15,090 Contlncency W!l.!I!!!l m.llll!l ~ ::ill..M General Fund 58,636,532 58,751,570 1.33% 5115,038 - . ~i' Budget Differences by Activity for Enterprise Fund ~ lleDart.-eat :w!IIIIul '04 PmnoMd QaIIU 1.QIaut Wilier Utility $793,472 $966,156 2L76% $172,684 Sewer Utility $1,304,552 $1,547,759 18,64% $243,207 Water Quality Utility $282,674 $294,077 4.03% $11.403 Transit Savica H1Q.lli ~ ~ ~ bterprIoe FudlI $2,851,610 $3,301,1168 15.79% $458,258 -II Y:\" City Service Costs VS. Other Service Costs Product/Service Police Protection Fire Protection Street RepairslSnow Removal Parks, Recreation & Library Water & Sewer Car Payment Newspaper Subscription Refuse Collection/Recycling Cable Television Two Movie Tickets Per Month Approximate Annual 2003 PricelTax $173 $33 $127 $147 $594 $4200 $217 $216 $420 $150 -Ill ie,-: - Impact Upon Taxpayer OfCllvAo_The School SpeclalTu 2004 BudgeI, for the District .719 District =::00 $0.2a.9 $0.07 growth experienced wIIhIn the c:onm.mIly due to new houlIing Prior Lake &Ial'tS and CCIl11II'l8IdaI $0.31 construdIon plus Scott incr8ased non-tax County nMlrnI8S. $0.33 - . ;'j:- Enterprise Fund Expenditure Changes Water Utility . Chemical Treatment New Water Meters . Well Head Protection Sewer Utility . Additional FT Employee . Sewer Replacement Project . MCES Treatment Increase Water Quality . Storm Water Plan Update Transit Services . Metropolitan Council Revenues -.. ,;; Conclusion o ~. _ Developing communities need re- investment. _ This proposed budget is responsive to the areas most in need of investment. . While spending is proposed to increase by $115,038, 100% will be borne by non-tax revenues and new valuation growth. _ The impact upon the property tax payer for an average valued home is -$2 per year. 3