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Home My WebLink About9A - City General Fund Budget DISCUSSION: STAFF AGENDA REPORT DECEMBER 16, 2002 9A RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF RESOLUTION ADOPTING 2003 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2003 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 City of Prior Lake's 2003 Operating Budget and Enterprise Fund Budget and to determine the City's final 2003 property tax levy for certification to the Scott County Department of Taxation office. History: The official budget process started in the middle of May 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 2003 operating budgets. The City Council conducted its initial budget study session June 17, 2002 at which time the directive to staff was to prepare an operating budget that would be responsive to the financial elements of the 2020 Vision and Strategic Plan and have a financially responsive property tax impact for next year. A second workshop was conducted on August 12, 2002 where the Council reviewed the proposed 2003 draft budget and programs associated with it. September 3, 2002 the City Council approved the preliminary budgets for the general and enterprise funds and initial levy under Resolution 02-151 that would result in a proposed property tax increase of 6%. The truth-in-taxation hearing was then conducted on December 2, 2002 with approximately 20 residents in attendance. Two individuals commented with respect to the level of taxation. Current Circumstances: The 2003 General Operating Budget submitted for your consideration totals $8,636,532.00, which includes necessary taxing for general operating expenditures, capital outlay and debt service levies. The only recommended change within this formal document compared to the preliminary budget considered and adopted in September of this year occurred in the Enterprise Transit Fund Budget due to an additional transit route that is being considered. H:IBUDGETI02budrpl.doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ALTERNATIVES: The line item change represents an increase of $121,440.00. Because the transit contract service increase associated with the new route is totally offset by non-tax revenue (state transit aid) the final property tax levy proposed for 2003 remains unchanged. New elements ofthe proposed budget are summarized as follows: o Continues an additional building inspector position needed to address increased building activity. o Adds a police officer position to respond to an unacceptable coverage situation. o Adds a maintenance worker to help maintain the new acres of parks. o Adds a parks and recreation coordinator position to facilitate better long range planning and improvements of the city park system. o Enhances city communications through the addition of a position responsible for the Wavelength, employee newsletters, web page and cable television productions. o Adds $100,000 to Contingent Reserve to offset pending state aid cuts or respond to any number of unforeseen circumstances/events or as a set-aside for building fund. As a result this budget represents an increase of approximately 12.7% above the current level of expenditures, and will produce a final property tax levy of $6,062,013 that includes a revolving equipment fund levy of $260,000 and $623,000 of special debt levies. The total property tax levy represents an increase of $541,100 or 9.8% above the current year. For Prior Lake taxpayers this will result in an average increase of 6% on their 2003 property tax bill. Also requested for approval are the 2003 Enterprise Fund Budgets of $2,851,610 that support our water and sewer utilities, storm water and transit systems. The following alternatives are available to the City Council: 1. Approve Resolution Adopting 2003 Prior Lake Budgets and Certifying Final 2003 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. 2. Amend Resolution according to specified Council changes. RECOMMENDATION: Alternative 1. Staff would recommend that the City Council approve the resolution as submitted as this is the last regular meeting date in 2002. 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 30, 2002) as prescribed by Minnesota statute. RECOMMENDED H: IBUDGETl02budrpl.doc MOTION: REVIEWED BY: Attachments: H:\BUDGETl02budrpt.doc Motion and a second to approve Resolution Adopting 2003 Prior Lake Budgets and Certifying Final 2003 City of Prior Lake Property Tax Levy to Scott COU ty Department of Taxation. 1. Resolution Adopting 2003 Prior Lake Budgets and Certifying Final 2003 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. RESOLUTION 02-XX RESOLUTION ADOPTING 2003 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2003 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 hereby adopts the 2003 General Fund Operating Budget in the amount of $8,636,532.00, an Enterprise Fund Budget of $2,380,698.00 and Transit Services Budget of $470,912.00 following a period of comment and discussion during the course of a public hearing held December 2, 2002; and WHEREAS, The City of Prior Lake's operating budget tax levy IS hereby equivalent to $5,179,013.00; and WHEREAS, The revolving equipment fund levy amount is calculated to be $260,000.00; and WHEREAS, Special debt levies account for an additional tax levy of $623,000.00; and WHEREAS, The total property tax levy approved has been determined to be $6,062,013.00. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, that the proposed tax levy be distributed upon the taxable property in said City for the following purposes in payable 2003: Purpose Amount * For General City Purposes $4,423,843.00 * Revolving Equipment Fund $260,000.00 * G.O. Improvement Bonds '94 (Prior South) $57,000.00 * G.O. Improvement Bonds '95 (Ridgemont) $47,000.00 * G.O. Improvement Bonds '96 (Northwood) $61,000.00 * G.O. Improvement Bonds '97 (Pike Lake) $80,000.00 * G.O. Improvement Bonds '98 (Duluth) $77,000.00 * G.O. Improvement Bonds '99 (Candy Cove) $81,000.00 * G.O. Improvement Bonds '00 (Oak Ridge) $81,000.00 * G.O. Improvement Bonds '01 (Frog Town) $64,000.00 * G.O. Improvement Bonds '02 (Pixie Point) $75,000.00 ** Fire Hall Referendum Bonds '93 $162,415.00 ** Park Referendum Bonds '97 $592,755.00 Total... $6,062,013.00 H: IBUDGETI03taxres.doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER '_,.,~,....., ,..._~H_"~____". ,~.___"._,.~_,~*___,.__.-...-._........~.__..,,~~-,_...,.._.,,-_. _..,.-.,_..,-~,-"._---,.-,--._--_._---"'_"_"'''._' <,-.. -.--"----,-,--.--.,,--..-'--.-.,,'-.~~.... 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 16th day of December, 2002. YES NO Haugen LeMair Petersen Zieska Vacant Haugen LeMair Petersen Zieska Vacant City Manager City of Prior Lake {Seal} H: \BUDGETl03taxres.doc