HomeMy WebLinkAbout10B - 2005 City Budgets
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
SEPTEMBER 7, 2004
10 B
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROV AL OF A RESOLUTION ADOPTING
PROPOSED 2005 CITY BUDGETS AND CERTIFYING
PRELIMINARY 2005 CITY OF PRIOR LAKE PROPERTY TAX
LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION
DISCUSSION:
Truth in Taxation statutes require that each "taxing authority" adopt
a proposed budget and certify a preliminary tax levy for payable
2005 property taxes to the Scott County Department of Taxation on
or before September 15, 2004. The purpose of this statutory
requirement is to allow the County adequate time to prepare,
calculate and mail "Truth in Taxation" notices of proposed property
taxes for the county, school district, city and special taxing districts
to taxpayers.
History:
The Council conducted its first financial planning workshop on
June 7, 2004. The discussion that took place was fairly general. The
objectives of the proposed 2005 general operating budget were
reviewed along with possible program additions. Also, the City
Council was approached as to any specific service priorities that
should be incorporated into the budget for 2005. At the conclusion
of the first budget study session, Council direction was for Staff to
prepare an operating budget for 2005 that would accomplish these
primary objectives while minimizing the property tax impact.
Following this session the Council conducted its initial review of
the proposed 2005 budget requests, including the general, water
and sewer and transit enterprise fund budgets, at its second
workshop on August 16, 2004. An explanation of the proposed
property tax levy was reviewed along with an explanation of all
new proposed budget expenditures. The Council acknowledged the
budget to be responsive to community needs recognizing the fact
that program growth, including capital expenditures associated with
the Capital Improvement Program, is for the most part funded
either by enhanced revenue sources or taxes generated by new
valuation growth experienced by the city.
Current Circumstances:
The draft 2005 budget and the property tax levy it requires have the
following characteristics:
H: \BUDGET\05prelimbudrpt.doc
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
· The total property tax levy proposed represents an increase of
11 % that reflects the additional investment associated with the
general obligation bonds that were issued to finance the
downtown and street reconstruction improvements.
· The budgets as proposed provide for a continuation of services
at existing levels and for improvements in certain areas
including planning, police (two officers) and parks
departments.
· Non-budget item increases include a Building Fund
appropriation of $250,000 to reduce the amount of future lease
purchase bonds necessary for the city hall/police station
scheduled for 2006. Also the Contingency Reserve was
increased to a level of $250,000 that represents approximately
2.5% of the proposed 2005 General Fund Budget.
· The proposed 2005 budgets continue the focus of the Prior
Lake 2020 Vision and Strategic Plan.
ISSUES:
The attached resolution incorporates a proposed 2005 General Fund
Operating Budget of $9,675,333 representing a 8.63% increase
above the current year and 10.6% when including the Contingent
Reserve. A "Budget Summary" showing the increases/decreases of
each respective department is attached. The initial property tax levy
certification for 2005 as approved this evening may only be
adjusted downward. As indicated below the City will be just under
the levy limit that the state has established for us.
Overall, the proposed "preliminary" tax levy of $7,314,969 IS
comprised of the following elements:
...........-........................................ ........................................................................................................................................................................
i......................f.....!.~!~.?.~.~......... ....................................................... ...................................................+..................~.~.?~.~t 1
i ! i i
~........................................._.-....._.........................................................................................................................................................................i...............................................................................j
I 1. I General levy I $5,123,789.00 I
:......................t....-..................-............................................................................................................................................................................lo..............................................................................;
I 2. I Referendum debt levies I $790,180.00 I
f"..j.~.........r-RevoE;lng...E.qulpment...Fun(ftevy...........................................T..............$2.8..6'~0'6'6':0'0'....1
~:Ff~l~:~~~~~~~;~~~;~~:=::::=::=:=::F:m~~~~~~g~l
t~i==~~~~~~~~~~~~;itii~1iJ~~~@j
IMPACT TO T AXP AYERS: Attached to this agenda report is an updated "Property Tax Impact
Analysis" that incorporates the estimated tax capacity valuation
prepared by the Scott County Department of Taxation for payable
2005. The new analysis includes the finalized fiscal disparities
distribution that resulted in the proposed tax impact reduction. This
valuation assumes market value increase due to appreciation, new
housing construction and all value relating to improvements such as
additions, etc. The "Property Tax Impact Analysis" compares a
residential home in 2004 adjusted by an average market value rise
of 8 Y2% for payable 2005 property taxes.
H:\BUDGET\05prelimbudrpt.doc
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
Attachments:
H:\BUDGET\05prelimbudI1Jt.doc
As shown on the "Property Tax Impact Analysis" the projected
annual city property tax based upon the estimated 2005 tax capacity
value, would be $744.73 on a $217,000 market value home, which
approximates the median market value house in Prior Lake. This
represents a 1.76% increase or $12.86 in city property taxes from
2004 to 2005. Individual property tax amounts will be subject to
slight variations from these estimates depending upon inflationary
market value adjustment increases as determined by the county
assessor.
Conclusion:
Resolution 04-XX identifies the various city budgets and delineates
the preliminary 2005 property tax levy breakdown. The City will
hold a formal Truth in Taxation public hearing this year on Monday
December 6, 2004 at 7:00 p.m. to allow for public comment.
The following alternatives are available to the City Council:
1. Approve Resolution Adopting Proposed 2005 City Budgets and
Certifying Preliminary 2005 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.
Staff would recommend approval of Resolution Adopting Proposed
2005 City Budgets and Certifying Preliminary 2005 City of Prior
Lake Property Tax L to Scott County Department of Taxation.
The Council m m e alternative adjustments between now and
its ~ d erm. ation that must be certified in late December.
1. Resol io Adopting Proposed 2005 City Budgets and Certifying
Preliminary 2005 City of Prior Lake Property Tax Levy to Scott County
Department of Taxation
2. Property Tax Impact Analysis
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 04-XX
ADOPTING PROPOSED 2005 CITY BUDGETS AND CERTIFYING
PRELIMINARY 2005 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, The City Council of the City of Prior Lake antiCIpates a 2005 General Fund
Operating Budget increase of approximately 10.6% which would amount to
$9,675,333.00, and subject to approval by the City Council at its budget adoption
proceeding scheduled for December 20; and
WHEREAS, The City of Prior Lake's proposed 2005 Enterprise Fund budgets total an aggregate
$3,980,249.00 which includes the Water & Sewer Utility, Water Quality Utility and
Transit Services, and
WHEREAS, The total proposed property tax levy approved has been determined to be
$7,314,969.00; and
WHEREAS, The City of Prior Lake hereby certifies that the levy certification rate will increase
for payable 2005 property taxes; and
WHEREAS, The proposed City of Prior Lake property tax levy for the year payable 2005
represents an increase of 11 %; and
WHEREAS, The City Council will consider the 2005 General Operating Budget, Enterprise Fund
Budgets and the Final 2005 Property Tax Levy during its regularly scheduled
council meeting at 7:00 p.m. on Monday December 6, 2004 at 16776 Fish Point
Road, Prior Lake with a continuation (if necessary) at 7:00 p.m. on December 13,
2004.
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 2005:
Purpose
Amount
*
For General City Purposes
Revolving Equipment Fund
Building Fund
G.O. Improvement Bonds '93 (BOP)
www.cityofpriorlake.com
$5,123,789.00
$280,000.00
$250,000.00
$50,000.00
*
*
*
H:\BUDGEli05budprelimres.doc
Phone 952.447.4230 / Fax 952.447.4245
* G.O. Improvement Bonds '95 (Ridgemont) $45,000.00
* G.O. Improvement Bonds '96 (Northwood) $50,000.00
* G.O. Improvement Bonds '97 (Pike Lake) $71,000.00
* G.O. Improvement Bonds '98 (Duluth) $73,000.00
* G.O. Improvement Bonds '99 (Candy Cove) $72,000.00
* G.O. Improvement Bonds '00 (Oak Ridge) $77,000.00
* G.O. Improvement Bonds '01 (Frog Town) $64,000.00
* G.O. Improvement Bonds '02 (Pixie Point) $68,000.00
* G.O. Improvement Bonds '03 (1 50th Street) $116,000.00
* G.O. Improvement Bonds '04 (Breezy Point) $185,000.00
** Fire Hall Referendum Bonds '93 $164,915.00
** Park Referendum Bonds '97 $625,265.00
Total... $7,314,969.00
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 7th day of September 2004.
YES
NO
Haugen
Blomberg
LeMair
Petersen
Zieska
Haugen
Blomberg
LeMair
Petersen
Zieska
{Seal}
City Manager
City of Prior Lake
H: \BUDGET\OSbudprelimres.doc
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