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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: f1B'. ~-t"'~\jJ ~ov-3P~fo~tj B~' ~ ;fr ;}tJl~riJ ~Mfs. j~ '. ~c;W <howt SWr1u'5 r~') \<:1. \ \)ISUv~ ~ .'-, I<) 0 II ~ ( ~ : ~ y,(1ff 1> I ~'\.;. Dls~ h~ 1ts,"Y'vV6 Y pY ~1'\J. 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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