HomeMy WebLinkAbout7A - Truth-in-Taxation City
DISCUSSION:
AL TERNA TlVES:
STAFF AGENDA REPORT
DECEMBER 2, 2002
7A
RALPH TESCHNER, FINANCE DIRECTOR
TRUTH IN TAXATION PUBLIC HEARING FOR PROPOSED
2003 CITY BUDGETS (PUBLIC HEARING)
The purpose for the public hearing tonight is to provide information
to the public regarding the city's proposed 2003 Operating Budget
and the amount of property taxes that the city proposes to collect in
2003. 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 2003 general fund budget
and enterprise fund budgets that were previously adopted by the City
Council on September 3, 2002. Under Truth-in- Taxation guidelines
the City Council adopted the preliminary budgets and tax levies on
September 3, 2002. Attached is the outline of the public presentation
that will be given on December 2nd. This outline will be available to
the public at the hearing.
The City Council CANNOT TAKE ANY ACTION with respect to
adopting the 2003 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 9, 2002 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 16, 2002. 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 30, 2002).
1. Close the public hearing and direct the Staff to place this item
on the December 16, 2002 City Council agenda.
2. Continue the public hearing until December 9, 2002 at 7:00
P.M. if there are questions that cannot be answered on December
2nd.
H:IBUDGETI02tnl11lt.doc
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RECOMMENDED
MOTION:
Motion to either close the public hearing or continue the hearing to
7:00 P.M., Mond December 9,2002.
Attachment:
REVIEWED BY:
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Truth-in- Taxation
Public Information Hearing
DECEMBER 2, 2002
-.( -,@Dj1IimEwl:iBBf'
Conditions that Affect 2003 Budget
External Factors
. Located in the fastest
growing County in the
upper midwest, and 12th
fastest growing County in
the nation.
. State Financial Instability.
. National Economy
. City Bond Rating upgrade
to A 1 by Moody's
Investors Service.
Internal Factors
. Labor Agreements and
multi-year contracts
which set 2003 personnel
spending parameters.
. 2020 Vision & Strategic
Plan.
.,,'
II
~~.i~mrn&\mkf'4g{.
2003 Budget Process to Date
. City Council and Staff have conducted two
work sessions on the proposed budget.
. City Council conducts Truth-in-Taxation
Public Hearing on December 2, 2002 at
7pm.
. Truth-in-Taxation Continuation (if
necessary) on December 9, 2002.
. City Council considers approval of 2003
Budget.
· .. 1l.:~d~W"~1B:1;ti0[t.::(ff,
.Direction Provided by
2020 Vision and Strategic Plan Elements
. City Financial Resources
o Identify Additional Revenues
o Evaluate Appropriateness of Development
Fees.
o Exercise Fiscal prudence in budgeting and
fiscal management.
1
· ~{wltjjmWujIjii
III
Direction Provided by
2020 Vision and Strategic Plan Elements
. Downtown Redevelopment
o Complete Lakefront Plaza
o Implement Fayade Improvement Program.
. Economic Development
o Streamline zoning approval and building
permit process
o Encourage balance between residential and
commercial development.
· .-..,~.Wjdiihjj:;
'"Direction Provided by
2020 Vision and Strategic Plan Elements
. Transportation
oTH 131 CSAH 42
oTH 131 Commerce I Boudins
oTH 131 CSAH 231 Five Hawks
o Ring Road
., ~SJ~rKbr~m1:,fij
III
Direction Provided by
2020 Vision and Strategic Plan Elements
. Infrastructure
o Police Station I City Hall I Community Center
oWater Treatment Plant
. Urban Expansion
o Define Future boundaries
o Preserve acreage for commercial, schools &
parks.
_.'1I1
~PIl%iB~iJ;:::lim@ ";,~:,,
What We Did
. Examined existing expenditures and reduced or
eliminated where possible.
. Reviewed existing programs and responsibilities
for modification in light of 2020 Vision and
Strategic Plan.
. Examined areas needed for reinvestment.
. Reviewed opportunities for partnerships.
. Examined alternate revenue sources.
. Anticipated State actions and future program
needs.
2
.
-
2003 Proposed Budget
.)f~jMi/i;;'.,:;
Budaet:
Prior Lake's 2003 General
Fund Budget as proposed is
$8,636,532, which is 12.7%
higher than 2002.
Tax leVY:
Prior Lake's . 2003 Property
Tax Levy would increase by .
$541 ,100 from 2002 and
would represent a 9.8%
increase.
-..
-
Impact Upon Taxpayer
o=>:~,twlm;i:J;;l:Bn;?
Of Citv Budaet: The 2003
Budget, for the most part,
will be funded by valuation
growth experienced within
the community due to new
housing starts and
commercial construction
plus increased non-tax
revenues.
: Of -All -T~i~-a .A~thoj.ities-:-.
: . 2003 TNT Property Tax
: Notice
School Special
DistrIct Tax
#719 DistrIct
$0.25 $0.08
ara::
~$O.34
Scott
County
$0.33
-,
.
~%@tR~tEttlli{liill"
Accomplishments of 2003 Budget
. Continues added
building inspector
position to address
increased building
activity .
_ Adds a police officer _
position to respond to
an unacceptable
coverage situation.
. Adds a maintenance
worker to help
maintain the new
acres of parks.
- Adds a parks & recreation
coordinator position to facilitate
long-range planning and
improvements to City park
system.
Enhances City communications
through the addition of a position
responsible for City newsletter,
web page, & cable television
programming.
- Adds $100,000 to Contingent
Reserve to respond to any
number of unforeseen
circumstances or as a set-aside
for building fund.
..
.
mwmmdillini11rl;;i: bitt?
Conclusion
/G~.mO:t,
(a ~\
\ /'
\
'..!:._~:
. 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
$974,649, more than 50% will be borne by
non-tax revenues and new valuation growth.
. The impact upon the property tax payer for
an average valued home is $46 per year.
3
"BUDGET SUMMARY"
DETAILED DIFFERENCE BETWEEN ACTUAL
2002 AND PROPOSED 2003 GENERAL FUND BUDGETS
Department '02 Budget '03 Proposed % Change $ Change
41110 Mayor & Council $37,617 $50,973 35.51 % $13,356
41130 Ordinance $11,000 $9,500 -13.64% -$1,500
41320 City Manager $252,905 $341,665 35.1 0% $88,760
41330 Boards & Commissions $12,964 $12,824 -1.08% -$140
41410 Elections $9,360 $3,553 -62.04% -$5,807
41520 Director of Finance $108,573 $111,658 2.84% $3,085
41530 Accounting $116,964 $130,045 11.18% $13,081
41540 Internal Auditing $14,695 $14,900 1.40% $205
41550 Assessing $54,850 $67,900 23.79% $13,050
41610 Law $254,000 $242,000 -4.72% -$12,000
41820 Personnel $62,347 $73,033 17.14% $10,686
41910 Planning & Zoning $260,933 $291,761 11.81% $30,828
41920 Data Processing $102,615 $92,700 -9.66% -$9,915
41940 Buildings & Plant $262,105 $270,713 3.28% $8,608
41950 Central Garage $190,274 $194,195 2.06% $3,921
42100 Police $1,949,071 $2,106,318 8.07% $157,247
42200 Fire & Rescue $323,713 $394,259 21. 79% $70,546
42400 Building Inspection $336,315 $428,880 27.52% $92,565
42500 Civil Defense $28,900 $28,150 -2.60% -$750 .
42700 Animal Control $14,810 $16,010 8.10% $1,200
43050 Engineering $476,850 $515,660 8.14% $38,810
43100 Street $579,689 $591,117 1.97% $11 ,428
45100 Recreation $503,966 $687,565 36.43% $183,599
45200 Parks $808,165 $917,809 13.57% $109,644
45500 Libraries $65,355 $70,815 8.35% $5,460
46500 Economic Development $58,167 $67,359 15.80% $9,192
47000 Debt Service $715,680 $755,170 5.52% $39,490
49999 Contingency $50.000 $150.000 200.00% $100.000
General Fund $7,661,883 $8,636,532 12.72% $974,649
DETAILED DIFFERENCE BETWEEN ACTUAL
2002 AND PROPOSED 2003 ENTERPRISE FUND BUDGETS
Department '02 Budget '03 Proposed % Change $ Change
49400 Water Utility $709,654 $793,472 11.81 % $83,818
49450 Sewer Utility $1,175,454 $1,304,552 10.98% $129,098
49420 Water Quality Utility $256,608 $282,674 10.16% $26,066
49804 Transit Services $382.943 $470.912 22.97% $87.969
Enterprise Funds $2,524,659 $2,851,610 12.95% $326,951
BUDSUM.XLS
Page 1
11/26/02
2002
BUDGET
GENERAL PROPERTY TAXES 31000
31010 Current Ad Valorem Taxes
31011 Transit Feather Aid
31012 Market Value Credit Aid
31020 Delinquent Ad Valorem Taxes
31040 Fiscal Disparities Aid
4,242,914.00
0.00
0.00
0.00
460,999.00
Total General Fund Property Taxes
4,703,913 .00
LICENSES & PERMITS 32000
32100 Business Licenses
32110 Liquor Licenses
32160 Refuse Haulers
32161 Plumbing Licenses
32170 Outdoor Concert Permits
32180 Cigarette Licenses
32210 Building Permits
32211 Retainage Forfeiture
32215 Mechanical Permits
32230 Plumbing Permits
32231 Sewer/Water Inspections
32240 Animal Licenses
32260 Burning permits
3,550.00
35,650.00
1,300.00
2,125.00
0.00
3,250.00
377,500.00
0.00
48,000.00
. 36,000.00
8,750.00
1,500.00
2,500.00
Total License & Permits
520,125.00
INTERGOVERNMENTAL REVENUE 33000
33160 Federal Grants
33401 Local Government Aid
33402 HACA
33416 State Aid - Police Training
33418 State Road & Bridge Aid
33420 State Fire Aid
33421 State Police Aid
33422 State Grants
33610 County Grants
33620 Township Fire Aid
33621 Liaison Aid
33631 Payment-in-Lieu of Taxes
33632 Municipal Aid
0.00
56,490.00
0.00
7,500.00
117,000.00
77,000.00
122,325.00
0.00
7,000.00
149,831.00
40,269.00
320,000.00
0.00
Total Intergovernmental Revenue
897,415.00
CHARGES FOR SERVICES 34000
34103 Zoning Fees
34104 Plan Check Fees
34105 Sale of Maps/Publications
29,115.00
223,000.00
5,000.00
Budhist
Page 1
2003
PROPOSED
4,707,233.00
0.00
0.00
0.00
471,780.00
5,179,013.00
2,900.00
40,950.00
1,575.00
1,875.00
0.00
3,250.00
512,500.00
0.00
47,625.00
39,725.00
10,500.00
1,500.00
2,875.00
665,275.00
0.00
56,495.00
0.00
7,350.00
130,000.00
90,000.00
123,375.00
0.00
8,000.00
171,104.00
45,381.00
340,000.00
0.00
971,705.00
35,240.00
293,000.00
5,000.00
11/26/02
2002 2003
BUDGET PROPOSED
34107 Assessment Searches 1,500.00 1,500.00
34109 Project Admin & Engineering Fees 150,000.00 192,914.00
34110 Dog Pound Collections 5,000.00 4,000.00
34203 Accident Reports 900.00 900.00
34303 Franchise Fees 90,000.00 103,000.00
34304 PEG Access Fees 0.00 30,680.00
34730 Dance Program Revenue 325,000.00 290,000.00
34731 Softball Fees 0.00 32,000.00
34735 Recreation Program Fees 0.00 28,000.00
34740 Park Concessions 10,000.00 16,000.00
34760 Facility Rentals 134,365.00 149,705.00
34761 StudiolPavilion Rental 0.00 4,000.00
34762 Park Shelter Rental 0.00 9,000.00
34780 Park Admission Fees 17,000.00 23,000.00
34781 Skate Park Admission Fees 0.00 5,000.00
Total Charges For Services 990,880.00 1,222,939.00
FINES & FORFEITS 35000
35101 County Court Fines 84,000.00 105,000.00
35104 Restitution Fines 16,800.00 26,100.00
Total County Court Fines 100,800.00 131,100.00
MISCELLANEOUS REVENUE 36000
36210 Interest Earnings 125,000.00 120,000.00
36211 Developer Agreements 50,000.00 50,000.00
36212 Miscellaneous Revenue 22,250.00 20,000.00
36230 Contributions & Donations 18,500.00 18,500.00
Total Miscellaneous Revenue 215,750.00 208,500.00
OTHER FINANCING SOURCES 39000
39102 Sale/Compensation for Property 8,000.00 8,000.00
39203 Transfers From Other Funds 225,000.00 250,000.00
Total Other Financing Sources 233,000.00 258,000.00
TOTAL GENERAL FUND REVENUES 7,661,883.00 8,636,532.00
Budhist
Page 2
11/26/02
ENTERPRISE FUND REVENUES 37000
33422 State Aid/Grants
33630 Metro Council Grants
33633 Watershed District Aid
36210 Interest Earnings
36212 Miscellaneous Revenue
37100 Utility Revenue - Water
37102 Utility Revenue - Sewer
37110 Capital Facility Revenue
37120 Storm Water Revenue
37150 Disconnect Charges
37160 Penalties
37170 Water Meters
37175 Pressure Reducers
37750 Connection Fees
TOTAL ENTERPRISE FUND REVENUES
Budhist
Page 3
2002
BUDGET
0.00
0.00
0.00
200,000.00
0.00
749,000.00
1,567,500.00
256,500.00
160,000.00
1,000.00
48,000.00
56,440.00
15,830.00
150,000.00
3,204,270.00
2003
PROPOSED
0.00
0.00
0.00
200,000.00
0.00
918,750.00
1,650,000.00
279,000.00
174,000.00
1,000.00
37,350.00
79,380.00
16,465.00
0.00
3,355,945.00
11/26/02
TRANSIT FUND REVENUES 38000
36210 Interest earnings
38400 Bus Fares
38422 State Transit Aid
2002
BUDGET
5,000.00
35,000.00
410,000.00
TOTAL TRANSIT FUND REVENUES
Budhist
450,000.00
Page 4
2003
PROPOSED
5,000.00
33,200.00
432,711.00
470,911.00
11/26/02