HomeMy WebLinkAbout10B City Budgets and Property Tax LevyAV
U 4646 Dakota Street SE
\ Prior Lake, NiN 55372
y s
N O -
CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 6, 2011
AGENDA #: 10B
PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR
PRESENTED BY: JERILYN ERICKSON
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ADOPTING PROPOSED 2012
CITY BUDGETS AND CERTIFYING PRELIMINARY 2012 CITY OF PRIOR
LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF
TAXATION
DISCUSSION: Introduction
State Statute 275.065 requires that each "taxing authority" adopt a proposed
budget and certify a preliminary tax levy for payable 2012 property taxes to the
County Department of Taxation on or before September 15, 2011. The attached
resolution fulfills this statutory requirement.
The 2009 Legislature made some significant changes to the Truth in Taxation
process for 2010 and beyond. At the meeting at which the City Council adopts a
proposed budget and tax levy (September 6), the Council must announce the
time and place of the council meeting at which the 2012 budget and levy will be
discussed and which allows for citizen input (December 5 here in the Prior Lake
City Council Chambers). This information must also be included in the meeting
minutes.
History
The Council held a workshop on August 15 to discuss and provide direction on
the preliminary 2012 budget and tax levy.
Council directed Staff to remove the personnel costs associated with the
Economic Development Director position from the General Fund Economic
Development department (50% of position was allocated to this budget) and
reflect those costs in the EDA Special Revenue Fund. This change would result
in reducing the General Fund levy to zero and the EDA Special Revenue Fund
would reflect a higher use of fund balance reserves. This change would also
reflect the need of additional funding sources for the EDA Special Revenue Fund
such as the transfer of funds from other economic development - related funds. A
consent agenda item on the 09/06/2011 addresses this transfer of funds.
The Council requested clarification of the additional funding being requested to
upgrade the emergency sirens. The FCC has mandated that all non - Federal
public safety licensees using 25 kHz radio systems migrate to narrowband 12.5
kHz channels by January 1, 2013. Agencies that do not meet the deadline face
the loss of communication capabilities. Our current public safety radio system
operates at 25 kHz. This mandated change will directly affect the cities' outdoor
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
warning sirens and will render them inoperable without the needed programming
upgrades. It will not affect any other radio service.
Prior Lake currently has sixteen outdoor warning sirens in our system. Fifteen
need to be upgraded to make them compatible with the narrowband system. The
oldest siren was installed in 1975 and because of its location was never replaced
and will be phased out. The other sirens range in age from 1990 to 2007 and
because of that requires different levels of upgrades to make them narrowband
compatible. The older sirens cost more to update. The General Fund Emergency
Management preliminary 2012 budget includes $28,400 for siren upgrades.
General Fund Intergovernmental revenues include $12,700 in estimated grant
revenues for these upgrades.
Current Circumstances
Preliminary 2012 Budget
The preliminary budgets prepared reflect the direction given to Staff during the
August 15, 2011 council workshop.
In addition, the following changes were made:
1) The Sewer Fund reflects an increase in the Municipal Wastewater Charge
per notification received on August 25, 2011;
2) The Sewer Fund and the Water Fund both reflect a decrease in
professional services to correspond with the Cartegraph position (more
information below);
3) The Transit Fund State Aid revenues were increased to reflect recent
updates regarding the interpretation of new legislation; and
4) The General Fund reflects a decrease in Intergovernmental Revenues due
to a reduction in grant revenues.
Council members had requested a reconciliation of the impacts of the
Reorganization. The following chart reflects all of the personnel changes
(reorganization and new positions) that are included in the preliminary 2012
budget:
Reorganization:
(1.00) Community Development/Natural Resources Director
Al
(1.00) Building7Transit
Service Director
81
(1.00) Director of Public
Works/City Engineer
C1
(1.00) Parks, Fleet & Facilities Maintenance Supervisor
D1
(1.00) Assistant City Engineer
El
(1.00) Economic Development Director
F1
(1.00) Streets/Utllities:Maintenance Supervisor
G1
1.00 Assistant City Manager
82
1.00 Planning Coordinator
F2
1.00 Community
D+evelopment/f onomic Development 0inector
A2
1.00 Natural
Resource- Facillt1wFleet Manager
D2
1.00 City Engineer /inspections Director
E2
1.00 Maintenance Superintendent
G2
1.00 Public Works /Natural Resources Director
C2
1.00 Cartearaoh
H
1.00 Total changes from Reorganization
New Positions:
1.00 Accourrtant
1.00 Police Supervisor J
0.20 Utility Billing Clerk - increased 8 hours per week K
;0,03 Part Time secretaries � Increased total of 1 hour per week L
2.23 Total New Positions
3.23 Total Change in Personnel
The 2011 Staff Reorganization has the impact of increasing the employee count
by one (1) full- time - equivalent (FTE). I have added codes on the right side to
correlate the change in titles with the change in responsibilities from the
Reorganization. For example, the Community Development/Natural Resources
Director position (A1) was changed to Community Development/Economic
Development Director (A2).
Codes F1 /F2 and H require some additional clarification. The Economic
Development Director position (F1) as it was budgeted in 2011 was a full -time
position that would commence on or about July 1, 2011 (half year funding). As
part of the Reorganization, the funding for this position was allocated to funding
the Planning Coordinator position (F2).
The Cartegraph position (H) existed as a full -time position in 2010. The individual
that was in this position resigned in 2010 and Staff sought to use professional
consultants to fill some of the responsibilities during 2011. As part of the 2011
Reorganization, Staff evaluated the technology needs and determined that it was
more cost effective to reinstate the position in the 2012 preliminary budget and
reduce the corresponding professional service budgets. The difference between
the amounts budgeted in professional services and the anticipated personnel
costs is an additional $20k.
The following chart shows the changes "by Fund" from the Reorganization and
new positions added:
CHANGES TO THE FUNDS BY THE REORGANIZATION
General Fund (1.00) Community Development/Natural Resources Director
Al
(0.25) Building/Transit Service Director
B1
(0.50) Director of Public Works /City Engineer
C1
(1.00) Parks, Fleet & Facilities Maintenance Supervisor
D1'
(1.00) Assistant City Engineer
E1
(1.00) Economic Development Director
F1
0.25 Assistant City Manager
B2' , ,
1.00 Planning Coordinator
F2
0.50 Community Development/Economic Development Director
A2
1.00 Natural Resource- Facilities -Fleet Manager
02
1.00 City Engineer /Inspections Director
E2
0.50 Maintenance Superintendent
02
0.25 Public Works /Natural Resources Director
C2
0.25 Cartegraph
H
- Total change for General Fund
EDA Special Revenue Fund 0.50 Community Development/Economic Development Director A2
0.50 Total change for EDA Special Revenue Fund
Water Fund (0.25) Director of Public Works /City Engineer C1
0.25 Maintenance Superintendent G2,
(1.00) Streets /Utilities Maintenance Supervisor G1
0.25 Public Works /Natural Resources Director 02
0.35 Cartegraph H
(0.40) Total change for Water Fund
Water Quality Fund 0.25 Public Works /Natural Resources Director C2
0.05 Cartegraph H
0.30 Total change for Water Quality Fund
Transit Fund (0.75) Building/Transit Service Director B1
0.75 Assistant City Manager 62=
- Total change for Transit Fund
Sewer Fund (0.25) Director of Public Works /City Engineer C1
0.25 Maintenance Superintendent G2'
0.25 Public Works/Natural Resources Director C2
0.35 Cartegraph H
0.60 Total change for Sewer Fund
1.00 Recap of Total Changes among Funds - Reorganization
CHANGES TO THE FUNDS BY THE NEW POSITIONS & ADDITIONAL HOURS
General Fund 1.00 Accountant 1
1.00 Police Supervisor J
0.03 Part Time Secretaries - increased total of 1 hour per week L
2.03 Total Increase for General Fund
Water Fund 0.10 Utility Billing Clerk -increased 4 hours per week K
0.10 Total Increase for Water Fund
Sewer Fund 0.10 Utility Billing Clerk -increased 4 hours per week K
0.10 Total Increase for Sewer Fund
2.23 Recap of Total Increases among Funds - New Positions & Addl Hours
3.23 Total Change in Personnel
As you can see, there is some movement of FTEs between Funds due to the
Reorganization, resulting in no change to the General Fund and Transit Fund,
increases to the EDA Special Revenue Fund, Water Quality Fund and Sewer
Fund, and a decrease in the Water Fund. This is primarily due to realigning
positions and corresponding responsibilities to the appropriate funding sources.
Specifically, fifty (50) percent of the Community Development/Economic
Development Director is being charged to the EDA Special Revenue Fund, the
Public Works /Natural Resources Director and the Maintenance Superintendent
personnel costs are being allocated to the funds /departments for which they have
oversight and the Cartegraph position is being reinstated for which professional
service budgets were reduced.
The new positions (including some minor increases in hours for two part-time
secretarial positions and one utility billing position) result in increases to the
General Fund, Water Fund and Sewer Fund. The preliminary budget includes the
Accountant position for a full -year and the Police Supervisor position for seven (7)
months.
Budget Overview
The Budget Overview reflects preliminary figures for the 2012 budget for the
following funds:
• General Fund
• Debt Service Funds (includes all debt)
• Revolving Equipment Fund
• EDA Special Revenue Fund
• Water Fund
• Sewer Fund
• Water Quality Fund
• Transit Fund
The second page of the Budget Overview shows tax levy and budgetary
comparisons from the 2011 adopted budget to the preliminary 2012 figures.
Summary Revenue and Expenditure Reports
Summary reports are provided for each of the funds noted above.
Significant changes are as follows:
General Fund Revenues
• Eliminated reduction of negative MVHC Aid revenue per tax changes
adopted in the 2011 special legislative session.
• Increased property tax revenues by $74,855 of which $37k is for operating
expenditures and $47k is for market value referendum debt and the EDA
lease revenue bond. NOTE. This increase is offset by a decrease in the
debt service levies resulting in a zero change in the overall tax levy.
• Increased State road and bridge aid (based on 2011 amount received),
grant revenue for sirens, franchise fees and interest earnings;
• Reduced Township fire agreement revenues and Tower/ Communication
Site lease revenues (Clear Wire terminated the Crest Avenue agreement);
• Use of Fund Balance reserves for funding the $150k transfer to the
Facilities Management Fund.
General Fund Expenditures
• Addition of full -time Accountant and Police Supervisor;
• Addition of .5 hour /week for two part-time secretaries;
• Other personnel costs moved to reflect the impact of the 2011 Staff
Reorganization;
• Established "Natural Resources" department by moving costs previously
accounted for in the Parks Department budget;
Agreements for all three bargaining units expire on 12/31/11. Personnel
costs reflect an estimated COLA and steps for represented and non -
represented groups, anticipated changes for insurances, etc.
The Council had also requested a reconciliation of the movement of expenditures
to establish the Natural Resources Department in the General Fund. The
following chart shows this movement:
2011 Budget
$1,326,359 2011 Budget
$ 0
Personnel: Reduce by Park
(82,206) Personnel: Add 50% of Parks,
86,705
Supervisor (1 FTE); add 25%
Fleet & Facilities Maintenance
of Maintenance
Supervisor and 25% PW /NR
Superintendent
Director
Other Personnel Adjustments
8,614 Other Personnel Adjustments
1,249
— salary & benefits*
— salary & benefits*
Current Expenditures — Move
( 28,570) Current Expenditures — Moved
28,570
from Parks to Natural
from Parks to Natural
Resources
Resources
Other Current Expenditure
Adjustments:
Add maintenance of trails &
10,000 Add professional services for
4,650
sidewalks
Pike Lake Park & Comp Plan
update
Less miscellaneous
(1,333)
adjustments
Add capital expenditures per
40,000
2012 -2016 CIP
Preliminary 2012 Budget
$ 1,272,864 Preliminary 2012 Budget
$ 121,174
*Benefits include employer payroll taxes (FICA & medicare), workers compensation insurance, etc.
Debt Service Funds
• A high rate of special assessment prepayments and sufficient fund
balance reserves allow a reduction of $84,855 in the 2012 debt service tax
levies.
• Reflects payments for all types of debt including special assessment
bonds, tax increment bonds, revenue bonds and market referendum
bonds;
Revolving Equipment Fund
• $10,000 increase in tax levy per 2012 -2016 CIP; NOTE: This increase is
also offset by a decrease in the debt service levies resulting in a zero
change in the overall tax levy.
• Reflects equipment replacements and refurbishments identified in the
2012 -2016 CIP.
Water Fund, Sewer Fund. & Water Quality Fund
• Operating revenues reflect anticipated rate changes per Council adoption
of the 2012 -2016 CIP;
• The 2011 Water Fund revenue budget included 100% of CFAC and
penalty revenues budgeted (Staff will request that Council adopt a budget
amendment at a future council meeting so financial reports accurately
reflect these anticipated revenues); 2012 budget reflects these two
revenues split 50/50 between Water Fund and Sewer Fund.
• WQ Fund includes grant revenue for water quality initiatives;
• Personnel costs reflect adjustments as noted above including changes
due to the 2011 Staff Reorganization;
Transit Fund
• Increased revenues from bus fares;
• Reduction in transit aid based on the Met Council's most recent
interpretation of the 2011 special session legislation;
• Personnel costs reflect adjustments as noted above.
• Increased operating costs;
• No capital projects planned.
Property tax levy
The table below provides some explanation regarding the estimated change in
the property tax levy:
Description
$$ Impact on Levy
( Change from 2011
Personnel
$ 240,727
Current Ex
44,796
Capital
43,024
Debt Service
54,805
Transfers
150,000
Total Expenditure Change
$ 443,760
Increased Non -Tax Revenues
26,364
Increased Use of GF Reserves'
84,017
Eliminate Negative Revenue for
MVHC
(258,524)
Increase In GF Lev
$ 74
Other Tax Supported Funds:
Revolving Equipment Fund Levy
10,000
Debt Service Funds
84,855
Net Increase in Levy
$ 0
2011 Use of Reserves ($150,000) — 2011 Use ($65,983) _ $84,017
Use of Fund Balance Reserves
The preliminary budget reflects a planned use of fund balance reserves in most of
the funds for purposes of funding debt service payments, capital replacement,
and capital improvements. The General Fund includes a $150,000 use of
reserves for funding a transfer to the Facilities Management Fund. The Council
approved the establishment of the Facilities Management Fund based on the
Facilities Management Plan in the 2012 -2016 CIP on August 15, 2011.
Impact of Tax Levy on Tax Rates
The Market Value Homestead Credit program was eliminated per tax changes
adopted in the 2011 special legislative session. In place of the MVHC,
homeowners will receive an exclusion of a portion of the market value of their
house from property taxes.
For homes valued at less than $76,000, the exclusion is equal to 40% of the
home's market value. For homes valued between $76,000 and $413,800, the
exclusion is $30,400 minus 9% of the value over $76,000.
The following table reflects the impact of four scenarios on the tax rates using the
preliminary 2012 market values and tax capacities (per the new tax changes):
• Zero change in total tax levy
• Maintain same tax rates for tax capacity -based levies and market value -
based levies
• Levy increased by the amount of
tax generated by new construction
• Zero change in Total Tax Levy
IMPACT OF 2012 PROPERTY TAX LEVIES
based on preliminary estimated tax capacities and market values for 2012
based on updated fiscal disparities information
Preliminary
Final Zero Change
Maintain Same New Construction*
Budget
2011 In Levy
Tax Rates $
32,613,900
09/06/11
TC Levy $ 8,220,809 $ 8,277,468
$ 7,805,099 $
8,320,966
$ 8,254,308
Fiscal Disparities $ 787,953 $ 731,294
$ 731,294 $
731,294
$ 731,294
TC Levy $ 9,008,762 $ 9,008,762
$ 8,536,393 $
9,052,260
$ 8,985,602
TC Value $ 26,768,943 $ 25,415,292
$ 25,415,292 $
25,415,292
$ 25,415,292
TC Rate 30.7102 % 32.5688%
30.7102%
32.7400%
32.4777%
MV Levy $ 1,105,362 $ 1,105,362
$ 1,089,391 $
1,119,226
$ 1,128,522
MV Value $ 2,600,331,100 $ 2,562,758,800
$ 2,562,758,800 $
2,562,758,800
$ 2,562,758,800
MV Rate 0.04251% 0.04313%
0.04251%
0.04367%
0.04404%
Changes:
TC Levy $ -
$ (472,369) $
100,157
$ (23,160)
MV Levy $ -
$ (15,971) $
13,864
$ 23,160
Total $ -
$ (488,340) $
114,021
$
*Calculation of additional levy from new construction growth:
$32,613,900 x I% x 30.710% (2011 TC Rate) _
$ 100,157
$32,613,900 x .04251% (2011 MV Rate) =
$ 13,864
As previously mentioned, the Council directed staff to prepare a preliminary
budget which included a zero tax increase for the 2012 property tax levy.
The impact of the new market value exclusion is evident in column 3 "zero
change in levy" in which the levy remains the same but the tax base is reduced
and, as a result, the tax rate rises Although the homestead exclusion is
computed in a mathematically similar manner to the repealed MVHC, the new
system will shift taxes among properties within the community.
Preliminary 2012 Tax Levy Options
The preliminary 2012 budget includes a preliminary tax levy of $10,114,124. This
is a zero increase from the 2011 tax levy.
Truth -in- Taxation Hearing Process
As mentioned above, new legislation requires that the City Council announce the
time and place of the council meeting at which the 2011 budget and levy will be
discussed and which allows for citizen input. This information must be included in
the meeting minutes.
The public hearing on the proposed 2012 budget and tax levy will be held on
Monday, December 5, 2011, at 7 p.m. with a continuation hearing to be
scheduled for Monday, December 19, 2011, if needed.
ISSUES: The attached resolution reflects a proposed 2012 General Fund Budget of
$12,632,073 representing a 3.64% increase from the current year budget of
$12,188,313.
The preliminary total budget is $25,726,628 representing a 1.65% increase from
the current year budget of $25,307,973.
Overall, the proposed tax levy of $10,114,124 is comprised of the following
elements:
........ .. .
.............. ...............................
i Pu rpo se ....................................................................................................................... ........._.....................
.................................................. ..........:. ............
Amount
.......
Change
..... ............................... _ ............ ....... .... ........ _ ...................... ...............................................
General purposes
................ .............. .... .... _.................
$ 6 , 998 5 1 4 ..._....................
........... .... .... ........ ........ ........... .... ...............
................ .................................................... ...............................
Revolving equipment fund ....... ............................... 1..... .....
..................... ...... ...........
............................... 280, 000
............._................ ........................._.....
.........$.........
.............................. 10,000
................
Referendum debt levies a............................................_..............................................................................................
1,128,522
23,160
.........................................................................................................................................................................
EDA...buildin.g....bond levy ....................... ................... ............... .. ..................
....... ............_ 634, 748 ..._ .............
.... ... ....................... .
........... ................_...
CIP special debt levies
1,072,340
($ 84,855)
................... Total Property Tax Lev....... .............._$..._1._0,1..14,
. Y..
124............................
_$ ......
The proposed tax levy of $10,114,124 represents a 0.00% increase from the
current year tax levy.
Historically, a portion of the City tax levy that was known as the Market Value
Homestead Credit Aid was supposed to be paid by the State of Minnesota. This
was a credit that appeared on the property tax statement to reduce the taxes paid
by the property owner. Even though the property owner received this credit, the
City did not actually receive the payment from the State of MN for 2011, 2010,
2009. The City only received 50% of the amount due in 2008. For years 2009-
2011, the City budgeted a negative or contra revenue in anticipation of NOT
receiving this State aid.
The contra revenue has been eliminated in the preliminary 2012 budget. This
change, along with other impacts from changes in non -tax revenues and
expenditures, results in an increase in the tax rates for both the tax capacity -
based levy and the market -value based levy even though the overall tax levy
remains the same as 2011.
The initial property tax levy certification for 2012 as approved this evening may be
maintained at this level or only adjusted downward when the final budget and
property tax levy is considered in December.
FINANCIAL There are multiple factors that have an impact on the property tax that is levied
IMPACT: against an individual property. They include, but are not limited to, the following:
1) Valuation of individual property
2) Total valuation of all properties in the community
3) Classification rates
4) Property tax levy
When any one of these factors change, the amount of property tax levied against
a particular property will be impacted. During this past year, Prior Lake property
owners experienced valuation adjustments ranging from a 15% increase to a
15 %+ decrease. The following chart shows the percentage of residential
properties that received the particular change in market value:
Increase
3%
No Change
29%
Decrease
68%
Total
100%
The total tax capacity valuation for the City of Prior Lake decreased approximately
1.7 %. Combined with the implementation of the Market Value Exclusion (which
reduced total tax capacity by approximately 946,000) and smaller changes in tax
increment and fiscal disparities, the total tax capacity valuation for the City
decreased about 5.1 %.
There were no changes in the classification rates. The State implemented the
Market Value Exclusion which impacts homes valued at $413,800 or less.
Based on a zero tax levy change, about 90% of residential properties will still
experience an increase in their City property taxes.
Historically, we have used the average valued home as a basis for
communicating the impact of any tax levy decision. Based on current tax
valuations provided by Scott County, the average valued home of $284,800 in
2011 decreased approximately 2.4% to $278,100 for taxes payable 2012. The
impact of a zero total change in property tax levy would be an approximate
$26.00 increase in taxes imposed by the City of Prior Lake. This does not include
the impact of taxes imposed by the county, school district, etc.
The attached resolution identifies the funds for which the City approves formal
budgets and the proposed 2012 property tax levy. The resolution also states that
the City will hold a formal Truth in Taxation public hearing to receive citizen input
on the proposed 2012 budget and property tax levy on Monday December 5,
2011 at 7:00 p.m.
Final budget adoption and property tax levy approval will occur during the
following council meeting on December 19, 2011.
ALTERNATIVES: The following alternatives are available to the City Council:
1. Approve Resolution Adopting Proposed 2012 City Budgets and Certifying
Preliminary 2012 City of Prior Lake Property Tax Levy to Scott County
Department of Taxation as submitted.
2. Amend resolution to an amount determined by the City Council.
RECOMMENDED Staff recommends Alternative #1. The Council may make alternative adjustments
MOTION: between now and the final levy determination that must be certified in late
December.
ATTACHMENTS: 1. Resolution Adopting Proposed 2012 City Budgets and Certifying
Preliminary 2012 City of Prior Lake Property Tax Levy to Scott County
Department of Taxation
2. 2012 Preliminary Budget Overview (2 pages)
3. 2012 Summary Revenue Report by Fund
4. 2012 Summary Expenditure Report by Fund
U try
4646 Dakota Street SE
r INxsso� P Prior Lake, MN 55372
RESOLUTION 11 -xxx
A RESOLUTION ADOPTING PROPOSED 2012 CITY BUDGETS AND CERTIFYING
PRELIMINARY 2012 CITY OF PRIOR LAKE PROPERTY TAX LEVY
TO SCOTT COUNTY DEPARTMENT OF TAXATION
Motion By:
Second By:
WHEREAS, Truth in Taxation provisions as specified by state statute requires the Prior Lake City
Council to certify a proposed property tax levy to the Scott County Department of
Taxation; and
WHEREAS, Preliminary budget amounts for the
City of Prior Lake for calendar year 2012 are
estimated as follows; and
General Fund
$ 12,632,073
Debt Service Funds
4,468,890
Revolving Equipment Fund
439,564
EDA Special Revenue Fund
137,923
Water Fund
3,438,992
Sewer Fund
3,071,960
Water Quality Fund
690,022
Transit Fund
847,204
Total
$ 25,726,628
WHEREAS, The proposed property tax levy for the City of Prior Lake for payable year 2012 is as
follows; and
General Purposes
$ 6,998,514
Revolving Equipment Fund
280,000
Debt Service
2,835,610
Total
$ 10,114,124
WHEREAS, The proposed property tax levy by tax
base for the City of Prior Lake for payable year
2012 is as follows; and
Tax Capacity Based Levy $ 8,985,602
Market Value Based Referenda Levy 1,128,522
Total $ 10,114,124
WHEREAS, The proposed City of Prior Lake property tax levy for the year payable 2012 represents a
zero change in total tax levy; and
WHEREAS, The City Council will consider the 2012 General Fund, Debt Service, Revolving
Equipment Fund, EDA Special Revenue Fund and Enterprise Fund Budgets and the Final
2012 Property Tax Levy during its regularly scheduled council meeting at 7:00 p.m. on
Monday December 5, 2011 at 4646 Dakota Street SE, Prior Lake with a continuation (if
necessary) at 7:00 p.m. on December 19, 2011.
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 2012:
Purpose
General City Purposes
Revolving Equipment Fund
Debt Service:
G.O. Improvement Bonds'05 (Fish Point)
CSAH 82 Improvement Appropriation '06
G.O. Street Reconstruction Bonds '07
G.O. Improvement Bonds '08 (Brooksville Hills 1)
G.O. Improvement Bonds'09 (Brooksville Hills II)
G.O. Imp Refunding Bonds 2009B
G.O. Improvement Bonds'10 (CR12)
G.O. Improvement Bonds'11 (Boudins I & Arcadia ROW)
G.O. Improvement Bonds ('04) '11 Refunding
G.O. Building Bonds'05 (EDA)
** Park Refunding Bonds'05
** Fire Station #2 Referendum Bonds'06
** Fire Station #1 Refunding Bonds'08
Total Debt Service
Total
Amount
$ 0
148,340
162,000
91,000
115,000
118,000
109,000
172,000
157,000
634,748
727,244
216,280
184,998
Amount
$ 6,998,514
280,000
2,835,610
$10,114,124
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 6th DAY OF SEPTEMBER, 2011.
YES
im
M ser
M ser
Erickson
Erickson
Hedberg
Hedber
Keeney
Keene
Soukup
Souku
Frank Boyles, City Manager
04 Council Meeting 09.06.2011
Cit y of Prior Lake 2012 Preliminary Budget
Budgeted Funds
Page 1 of 2
Debt
Revolving
Total
Total
General
Service
Equipment
EDA
Governmental
Water
Sewer
Water Quality
Transit
Enterprise
Budgeted
Fund
Funds
Fund
Funds
Fund
Fund
Fund
Fund
Funds
Funds
Revenues / Sources
Property Taxes
Levy - Tax Capacity
$ 7,633,262
$ 1,072,340
$ 280,000
$ -
$ 8,985,602
$ -
$ -
$ -
$
-
$ -
$ 8,985,602
Levy - Market Value
1,128,522
-
-
-
1,128,522
-
-
-
1,128,522
MVHC Aid
-
-
-
-
-
-
-
-
-
-
Special Assessments
-
312,000
-
-
312,000
-
-
-
312,000
Licenses & Permits
292,165
-
-
-
292,165
-
-
-
-
-
292,165
Fines & Forfeits
130,000
-
-
130,000
-
-
-
-
-
130,000
Intergovernmental
1,316,469
-
-
1,316,469
-
-
140,000
485,000
625,000
1,941,469
Charges for Services
1,488,263
-
-
1,488,263
2,732,437
2,587,735
540,000
200,000
6,060,172
7,548,435
Other Revenues
158,392
30,000
21,917
2,000
212,309
50,000
50,000
13,000
33,000
146,000
358,309
Bond Proceeds
-
-
-
-
-
-
-
-
-
-
Transfers From Other Funds
General Fund
-
1,768,370
-
-
1,768,370
-
-
-
1,768,370
Water Fund
167,500
575,720
50,000
-
793,220
-
-
-
-
793,220
Sewer Fund
167,500
96,931
50,000
-
314,431
-
-
-
-
314,431
Total Revenues Sources
$12,482,073
$ 3,855,361
$ 401,917
$ 2,000
$ 16,741,351
$ 2,782,437
$2,637,735
$ 693,000
$
718,000
$ 6,831,172
$23,572,523
Expenditures / Uses
Employee Services
$ 7,147,452
$ -
$ -
$ 69,923
$ 7,217,375
$ 527,812
$ 675,595
$ 282,072
$
94,174
$ 1,579,653
$ 8,797,028
Current Expenditures
3,246,932
-
68,000
3,314,932
1,068,210
1,613,183
162,950
753,030
3,597,373
6,912,305
Capital Outlay
269,319
439,564
-
708,883
4,750
8,750
-
-
13,500
722,383
Capital Improvements
-
-
-
-
1,020,000
450,000
245,000
-
1,715,000
1,715,000
Subtotal
$ 10,663,703
$
$ 439,564
$ 137,923
$ 11,241,190
$ 2,620,772
$2,747,528
$ 690,022
$
847,204
$ 6,905,526
$ 18,146,716
Transfers to other funds
General Fund
$ -
$
$ -
$ -
$ -
$ 167,500
$ 167,500
$ -
$
-
$ 335,000
$ 335,000
Maintenance Building (Debt)
-
-
-
96,931
96,932
-
-
193,863
193,863
Treatment Plant (Debt)
-
-
-
478,789
-
-
-
478,789
478,789
Equipment Fund
-
-
-
50,000
50,000
-
-
100,000
100,000
Park Equipment Fund
50,000
-
-
-
50,000
-
-
-
-
-
50,000
Debt Service Funds
1,768,370
-
-
-
1,768,370
-
-
-
-
-
1,768,370
Facilities Management Fund
150,000
-
-
-
150,000
25,000
10,000
-
-
35,000
185,000
Contingency
-
-
-
-
-
-
-
-
-
-
Debt Service
-
4,468,890
-
-
4,468,890
-
-
-
-
4,468,890
Subtotal
$ 1,968,370
$ 4,468,890
$ -
$ -
$ 6,437,260
$ 818,220
$ 324,432
$ -
$
-
$ 1,142,652
$ 7,579,912
Total Expenditures / Uses
$ 12,632,073
$ 4,468,890
$ 439,564
$ 137,923
$ 17,678,450
$ 3,438,992
$3,071,960
$ 690,022
$
847,204
$ 8,048,178
$ 25,726,628
Change in Fund Balance
$ (150,000)
$ (613,529)
$ (37,647)
$ (135,923)
$ (937,099)
$ (656,555)
$ (434,225)
$ 2,978
$ (129,204)
$ (1,217,006)
$ (2,154,105)
Page 1 of 2
2012 Preliminary Property Tax Levy
2012 Preliminary Budget Comparisons
Change 11 -12
Property Taxes
2011
2012
Amount
Percent
Levy - Tax Capacity
Total
General
General Fund - Operating
$ 6,961,567
$ 6,998,514
$ 36,947
0.53%
General Fund - Debt
620,000
634,748
14,748
2.38%
Debt Service Funds
1,157,195
1,072,340
(84,855)
- 7.33%
Revolving Equipment Fund
270,000
280,000
10,000
3.70%
Funds
$ 9,008,762
$ 8,985,602
$ (23,160)
-0.26%
Le - Market Value - General Fund
1,105,362
1,128,522
23,160
2.10%
Total Le
$ 10,114,124
$ 10,114,124
$ -
0.00%
2012 Preliminary Budget Comparisons
*2011 EDA Budget was adopted on 0412512011
Page 2 of 2
Revolving
Total
Total
General
Debt Service
Equipment
EDA*
Governmental
Water
Sewer
Water Quality
Transit
Enterprise
Budgeted
Fund
Funds
Fund
Funds
Fund
Fund
Fund
Fund
Funds
Funds
2012 Total Expenditures / Uses
12,632,073
4,468,890
439,564
137,923
17,678,450
3,438,992
3,071,960
690,022
847,204
8,048,178
25,726,628
2011 Total Expenditures / Uses
12,188,313
4,278,001
693,756
55,000
17,215,070
3,570,445
2,837,596
908,404
776,458
8,092,903
25,307,973
Change 2011 to 2012 ($)
443,760
190,889
(254,192)
82,923
463,380
(131,453)
234,364
(218,382)
70,746
(44,725)
418,655
Change 2011 to 2012 %
3.64%
4.46%
- 36.64%
150.77%1
2.69%
-3.68%
8.26%
- 24.04%
9.11%1
-0.55%
1.65%
*2011 EDA Budget was adopted on 0412512011
Page 2 of 2
0 p � O R City of Prior Lake Council Meeting 09.06.2011
2012 Requested Budget
0 Revenue Summary
2011 2012
2011 2012 $ Change % Change % of % of
General Fund Adopted Requested 11-12 11-12 Total Total
Taxes 8,428,405 8,761,784 333,379 3.96% 69.53% 70.19%
Licenses and permits 292,815 292,165 (650) -0.22% 2.42% 2.34%
Intergovernmental 1,310,678 1,316,469 5,791 0.44% 10.81% 10.55%
Charges for services 1,480,432 1,488,263 7,831 0.53% 12.21% 11.92%
Fines and forfeitures 130,000 130,000 0 0.00% 1.07% 1.04%
Interest on investments 90,000 100,000 10,000 11.11% 0.74% 0.80%
Other 55,000 58,392 3,392 6.17% 0.45% 0.47%
Transfers from other funds 335,000 335,000 0 0.00% 2.76% 2.68%
Total General Fund
12,122,330
12,482,073
359,743
2.97%
100.00%
100.00%
Debt Service Funds
396,348
401,917
5,569
1.41%
100.00%
100.00%
Taxes
1,157,195
1,072,340
(84,855)
- 7.33%
29.44%
27.81%
Special assessments
374,184
312,000
(62,184)
- 16.62%
9.52%
8.09%
Interest on investments
31,945
30,000
(1,945)
-6.09%
0.81%
0.78%
Transfers from other funds
2,367,398
2,441,022
73,624
3.11%
60.23%
63.31%
Total Debt Service Funds
3,930,722
3,855,362
(75,361)
-1.92%
100.00%
100.00%
Revolving Equipment Fund
Taxes
Interest on investments
Transfers from other funds
270,000
26,348
100,000
280,000
21,917
100,000
10,000
(4,431)
0
3.70%
- 16.82%
0.00%
68.12%
6.65%
25.23%
69.67%
5.45%
24.88%
Total Revolving Equipment Fund
396,348
401,917
5,569
1.41%
100.00%
100.00%
EDA Special Revenue Fund
10,000
33,000
23,000
230.00%
1.49%
4.60%
Intergovernmental revenues
Interest on investments
15,000
2,000
-
2,000
(15,000)
0
- 100.00%
0.00%
88.24%
11.76%
0.00%
100.00%
Total EDA Fund
17,000
2,000
(15,000)
- 88.24%
100.00%
100.00%
Water Fund
Charges for services - water
Interest on investments
2,702,938
50,000
2,732,437
50,000
29,499
0
1.09%
0.00%
98.18%
1.82%
98.20%
1.80%
Total Water Fund
2,752,938
2,782,437
29,499
1.07%
100.00%
100.00%
Sewer Fund
Charges for services - sewer
Interest on investments
1,916,250
50,000
2,587,735
50,000
671,485
0
35.04%
0.00%
97.46%
2.54%
98.10%
1.90%
Total Sewer Fund
1,966,250
2,637,735
671,485
34.15%
100.00%
100.00%
Water Quality Fund
Charges for services - storm water
Intergovernmental revenues
Interest on investments
425,000
87,000
10,000
540,000
140,000
13,000
115,000
53,000
3,000
27.06%
60.92%
30.00%
81.42%
16.67%
1.92%
77.92%
20.20%
1.88%
T otal Water Quality Fund
522,000
693.000
171.000
32.76%
100.00%
100.00%
Transit Fund
Charges for services - transit revenue
100,000
200,000
100,000
100.00%
14.91%
27.86%
Intergovernmental revenues
560,886
485,000
(75,886)
- 13.53%
83.60%
67.55%
Interest on investments
10,000
33,000
23,000
230.00%
1.49%
4.60%
Total Transit Fund
670,886
718,000
47,114
7.02%
100.00%
100.00%
GRAND TOTAL
22,3 78,474
23,572,523
1,194,049
5.34%
Page 1 of 1
0 p'LO City of Prior Lake
h 2012 Requested Budget
Fund /Department Expense Summary
M�
Council Meeting 09.06.2011
2011 2012
2011 2012 $ Change % Change % of % of
General Fund
Adopted
Requested
11-12
11-12
Subtotal
Subtotal
41110
Mayor & Council
67,365
70,067
2,702
4.01%
0.55%
0.55%
41130
Ordinance
7,000
7,000
0
0.00%
0.06%
0.06%
41320
Administration
371,884
394,528
22,644
6.09%
3.05%
3.12%
41330
Boards & Commissions
13,575
10,189
(3,386)
- 24.94%
0.11%
0.08%
41410
Elections
-
17,349
17,349
n/a
0.00%
0.14%
41520
Finance
312,967
403,626
90,659
28.97%
2.57%
3.20%
41540
Internal Auditing
28,200
28,200
0
0.00%
0.23%
0.22%
41500
Assessing
118,800
118,300
(500)
- 0.42%
0.97%
0.94%
41610
Legal
309,000
291,000
(18,000)
-5.83%
2.54%
2.30%
41820
Personnel
140,248
141,331
1,083
0.77%
1.15%
1.12%
41830
Communications
113,956
113,682
(274)
-0.24%
0.93%
0.90%
41910
Community Dev /Natural Resources
276,354
325,733
49,379
17.87%
2.27%
2.58%
41920
Technology
135,340
183,975
48,635
35.94%
1.11%
1.46%
41940
Buildings & Plant
410,206
430,539
20,333
4.96%
3.37%
3.41%
42100
Police
3,122,509
3,186,512
64,003
2.05%
25.62%
25.23%
42200
Fire
851,139
798,559
(52,580)
- 6.18%
6.98%
6.32%
42400
Building Inspection
398,004
435,572
37,568
9.44%
3.27%
3.45%
42500
Emergency Management
7,500
33,900
26,400
352.00%
0.06%
0.27%
42700
Animal Control
25,650
25,650
0
0.00%
0.21%
0.20%
43050
Engineering
416,046
298,444
(117,602)
- 28.27%
3.41%
2.36%
43100
Street
1,054,352
1,079,829
25,477
2.42%
8.65%
8.55%
43400
Central Garage
346,903
367,883
20,980
6.05%
2.85%
2.91%
45100
Recreation
390,860
387,152
(3,708)
- 0.95%
3.21%
3.06%
45200
Parks
1,326,359
1,272,864
(53,495)
-4.03%
10.88%
10.08%
45500
Libraries
85,067
80,642
(4,425)
- 5.20%
0.70%
0.64%
46100
Natural Resources (NEW)
-
121,174
121,174
n/a
0.00%
0.96%
46500
Economic Development
95,464
40,004
(55,460)
- 58.10%
0.78%
0.32%
47000
Debt Service
1,713,565
1,768,370
54,805
3.20%
14.06%
14.00%
49999
Contingency
-
-
0
n/a
0.00%
0.00%
49303
Transfers
50,000
200,000
150,000
300.00%
0.41%
1.58%
Total General Fund
12,188,313
12,632,073
443,760
3.64%
100.00%
100.00%
Debt Service Funds
47000 Debt 4,278,001 4,468,890 190,889 4.46% 100.00% 100.00%
Total Debt Service Funds 4,278,001 4,468,890 190,889 4.46% 100.00% 100.00%
tevolvina Eauipment Fund
Fire 90,000 - (90,000) - 100.00% 12.97% 0.00
Police 73,500 28,840 (44,660) - 60.76% 10.59% 6.56
Public Works 530,256 410,724 (119 - 22.54% 76.43% 93.44°/
Total Revolving Equipment Fund 693,756 439,564 (254,192) - 36.64% 100.00% 100.00 ° /
EDA
Water Fund
41520 Finance 65,690
82,418
16,728
25.47%
1.84%
2.40
49400 Water 2,726,244
2,538,354
(187,890)
- 6.89%
76.36%
73.81 ° /
49303 Transfers 778,511
818,220
39,709
5.10%
21.80%
23.79
Total Water Fund 3,570,445
3,438,992
(131,453)
- 3.68%
100.00%
100.00
S ewer Fund
41520
Finance
65,690
81,591
15,901
24.21%
2.31%
2.66 ° /
49005
CIPP Pipe Slip Lining
-
-
0
n/a
0.00%
0.00°/
49450
Sewer
2,461,584
2,665,937
204,353
8.30%
86.75%
86.78
49303
Transfers
310,322
324,432
14,110
4.55%
10.94%
10.56
Total Sewer Fund
2,837,596
3,071,960
234,364
8.26%
100.00%
100.00
Transit Fund
49804 Transit Services 776,458 847,204 70,746 9.11% 100.00% 100.00%
Total Transit Fund 776,458 847,204 70,746 9.11% 100.00% 100.00%
GRAND TOTAL 25,307,973 25,726,628 418,655 1.65%
Page 1 of 1