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Home My WebLink About9A - 2005 City Budgets 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DECEMBER 20, 2004 9A RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF RESOLUTION ADOPTING 2005 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2005 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOIT COUNTY DEPARTMENT OF TAXATION DISCUSSION: Introduction: The purpose of this agenda item is to consider approval of the City of Prior Lake's 2005 Operating Budget and Enterprise Fund Budget and to determine the City's final 2005 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 2005 operating budgets. The City Council conducted its initial budget study session June 7, 2004 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 16, 2004 where the Council reviewed the proposed 2005 draft budget and programs associated with it. September 7, 2004 the City Council approved the preliminary budgets for the general and enterprise funds and initial levy under Resolution 04-140 that would result in a proposed property tax increase of approximately 1 %%. Following public notification in the Prior Lake American and individual parcel mailings, the truth-in- taxation hearing was then conducted on December 6, 2004 with no residents in attendance. Current Circumstances: The 2005 General Operating Budget submitted for your consideration totals $9,716,033.00, which includes necessary taxing for general operating expenditures, capital outlay and debt service levies. New elements of the proposed budget are summarized as follows: www.cityofpriorlake.com H:\BUDGET\05budrpt.doc Phone 952.447.4230 / Fax 952.447.4245 I:J Funding an entry level planning position to assist In code enforcement and planning petition processing. [J Two police officers to provide a minimum of two car patrol coverage on a 24 hr. basis. o Park maintenance position to assist with the added miles and acres of trails and parks and associated downtown improvements. [J Contingent Reserve increase of $175,000 to respond to any state aid shortfall sharing. [J Building Fund Reserve of $250,000 to help fund the city hall/police station project. FINANCIAL IMPACT: As a result this budget, excluding the contingency and building fund, represents an increase ($789,463) of approximately 9.1 % above the current level of expenditures, and will produce a final property tax levy of $7,313,669 that includes a building fund levy of $250,000, revolving equipment fund levy of $280,000 and $871,000 of special debt levies. The total property tax levy represents an increase of $725,669 or 11 % above the current year. For Prior Lake taxpayers this will result in a small increase on their 2005 property tax bill. As the Council is aware, the Star Tribune contained an article illustrating proposed property tax bills in most metropolitan communities. Prior Lake had the 3rd lowest overall property tax movement of 70 cities, which should please the Council and our taxpayers. Also requested for approval are the 2005 Enterprise Fund Budgets of $3,966,283 that support our water and sewer utilities, storm water and transit systems. ALTERNATIVES: The following alternatives are available to the City Council: 1. Approve Resolution Adopting 2005 Prior Lake Budgets and Certifying Final 2005 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 2004. 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 28, 2004) as prescribed by Minnesota statute. RECOMMENDED MOTION: Motion and a second to approve Resolution Adopting 2005 Prior Lake Budgets and Certifying Final 2005 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. H:\BUDGET\05budrpt.doc REVIEWED BY: Attachments: H: \BUDGET\05budrpt.doc ~ - - -'1-- ~----- 1. Resolution Adopting 2005 Prior Lake Budgets and Certifying Final 2005 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 04-XX RESOLUTION ADOPTING 2005 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2005 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 2005 General Fund Operating Budget in the amount of $9,716,033.00, an Enterprise Fund Budget of $3,426,245.00 and Transit Services Budget of $540,038.00 following a period of comment and discussion during the course of a public hearing held December 6, 2004; and WHEREAS, The City of Prior Lake's general fund operating budget tax levy is hereby equivalent to $5,912,669.00; and WHEREAS, The revolving equipment fund levy amount is calculated to be $280,000.00; and WHEREAS, The building fund levy amount is calculated to be $250,000.00; and WHEREAS, Special debt levies account for an additional tax levy of$871,000.00; and WHEREAS, The total property tax levy approved has been determined to be $7,313,669.00. 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 2005: Purpose Amount * For General City Purposes $5,122,489.00 * Revolving Equipment Fund $280,000.00 * Building Fund $250,000.00 * G.O. Improvement Bonds '93 (BOP) $50,000.00 * 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 (150th Street) $116,000.00 * G.O. Improvement Bonds '04 (Breezy Point) $185,000.00 H: \BUDGET\05taxresolution.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 ** Fire Hall Referendum Bonds '93 ** Park Referendum Bonds '97 $164,915.00 $625.265.00 Total... $7,313,669.00 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 20th day of December, 2004. YES NO Haugen Blomberg LeMair Petersen Zieska Haugen Blomberg LeMair Petersen Zieska {Seal} City Manager City of Prior Lake H: \BUDGET\05taxresolution.doc