The URL can be used to link to this page

Home My WebLink AboutWORK SESSION - Year End Preview and 2015 Proposed Budget Presentation2015 FINAL 2015 FINAL BUDGET & TAX BUDGET & TAX LEVYLEVY Finance Director Jerilyn EricksonFinance Director Jerilyn Erickson November November 10, 2014 10, 2014 Council Council WorkshopWorkshop 2015 Final Budget 2015 Final Budget &Tax Levy&Tax Levy Council DirectionCouncil Direction 2015 Budget Direction2015 Budget Direction •• Use of Fund Balance ReservesUse of Fund Balance Reserves •• 2015 2015 Tax Levy OptionsTax Levy Options •• General FundGeneral Fund 2014 2014 Year End ProjectionsYear End Projections Revenues Revenues --$230k less than budget$230k less than budget Expenditures Expenditures --$130k more than budget$130k more than budget Use of Fund Balance Use of Fund Balance Reserves Reserves ––AddlAddl$360k$360k These are estimates only!These are estimates only! General FundGeneral Fund GENERAL FUNDProjected P2014P2015P2016P2017P2018P2019 CURRENT FUND BALANCE 6,431,258 4,954,002 5,115,635 5,265,635 5,465,635 5,665,635 Planned use of FB: 1) Budget - Mitigate Property Taxes - - - - - - 2) Phase in MV Exclusion Program - - - - - - 3) Facilities Management Fund - - - - - - 4) Incentives to Contain Healthcare Costs, Etc (100,000) - - - - - 5) Final 2008A Fire Station #1 pmt - - - - - - 6) Levy Limits (406,050) - - - - - 7) Election Equipment (37,500) - - - - - 8) ERP (384,890) - - - - - 9) Target FB 45% at YE 2015 (105,000) - - - - - 10) Anticipated FEMA reimbursement - 100,000 10) Use of Reserves for 2015 budget (138,367) - - 5,397,818 4,915,635 5,115,635 5,265,635 5,465,635 5,665,635 Projected Increase/(Decrease) from Operations (360,000) 200,000 200,000 200,000 200,000 200,000 Budget Amendments Approved: 1) EDA Technology Village Incubator - - - - - - 2) ERP Software Selection Consultant - - - - - - 3) CR42 Study - - - - - - 4) Lakefront Storage Building (82,519) - - - - - 5) Dakota property acquisition (net of DSF547) (1,297) Other Possible Planned Uses: 1) Comp Plan Update - (50,000) - - - Yearend Fund Balance 4,954,002 5,115,635 5,265,635 5,465,635 5,665,635 5,865,635 Overall Change in FB (1,477,256) 161,633 150,000 200,000 200,000 200,000 Projected Projected Projected Projected Projected Projected 2017 2018 2019 2020 2015 2016 BudgetBudgetBudgetBudgetBudgetBudget Projected Expenditures (3%) 12,683,812 13,064,326 13,456,256 13,859,944 14,275,742 14,704,014 FB as % of Projected Exp for following year39.1%39.2%39.1%39.4%39.7%39.9% FEMA Reimbursement; General FundGeneral Fund Budget Changes:Budget Changes: Discontinue health cost containment incentive;Discontinue health cost containment incentive; •• Health insurance premium Health insurance premium ––0%;0%; •• Eliminate any new services;Eliminate any new services; •• Update both revenues and expenditures based Update both revenues and expenditures based •• on 2014 activity.on 2014 activity. Net Adjustments = ($148k)Net Adjustments = ($148k) •• Shortfall = $139kShortfall = $139k •• General FundGeneral Fund 9/22/14 11/10/14 Percent of PreliminaryProposedTotal Debt Service $162,000$162,0001.71% Reserve Replacement 511,000511,0005.41% from 2014 EDA Fund 38,00038,0000.40% Rev Equip Fund 50,00050,0000.53% General Fund (net) 471,200323,2003.42% Subtotal $1,232,200$1,084,20011.47% Adjustment Needed to ($287,000)($139,000)(1.47%) achieve 10% Total $ 945,200$945,20010.00% General FundGeneral Fund Options:Options: 1) Use General Fund reserves;1) Use General Fund reserves; 2)2)Eliminate or reduce services;Eliminate or reduce services; 3)3)Reduce funding of longReduce funding of long--term plans.term plans. General FundGeneral Fund 1) Use General Fund Reserves1) Use General Fund Reserves To fund $139k shortfall in 2015;To fund $139k shortfall in 2015; •• CFMP:CFMP: •• Less than 40% Less than 40% --50% range;50% range; •• Less than 40% minimum;Less than 40% minimum; •• Additional use of reserves to reduce 2015 levy:Additional use of reserves to reduce 2015 levy: •• Exacerbate nonExacerbate non--compliance with CFMP;compliance with CFMP; •• Additional pressures on 2016.Additional pressures on 2016. •• General FundGeneral Fund GENERAL FUNDProjected P2014P2015P2016P2017P2018P2019 CURRENT FUND BALANCE 6,431,258 4,954,002 5,115,635 5,265,635 5,465,635 5,665,635 Planned use of FB: 1) Budget - Mitigate Property Taxes - - - - - - 2) Phase in MV Exclusion Program - - - - - - 3) Facilities Management Fund - - - - - - 4) Incentives to Contain Healthcare Costs, Etc (100,000) - - - - - 5) Final 2008A Fire Station #1 pmt - - - - - - 6) Levy Limits (406,050) - - - - - 7) Election Equipment (37,500) - - - - - 8) ERP (384,890) - - - - - 9) Target FB 45% at YE 2015 (105,000) - - - - - 10) Anticipated FEMA reimbursement - 100,000 10) Use of Reserves for 2015 budget (138,367) - - 5,397,818 4,915,635 5,115,635 5,265,635 5,465,635 5,665,635 Projected Increase/(Decrease) from Operations (360,000) 200,000 200,000 200,000 200,000 200,000 Budget Amendments Approved: 1) EDA Technology Village Incubator - - - - - - 2) ERP Software Selection Consultant - - - - - - 3) CR42 Study - - - - - - 4) Lakefront Storage Building (82,519) - - - - - 5) Dakota property acquisition (net of DSF547) (1,297) Other Possible Planned Uses: 1) Comp Plan Update - (50,000) - - - Yearend Fund Balance 4,954,002 5,115,635 5,265,635 5,465,635 5,665,635 5,865,635 Overall Change in FB (1,477,256) 161,633 150,000 200,000 200,000 200,000 Projected Projected Projected Projected Projected Projected 2017 2018 2019 2020 2015 2016 BudgetBudgetBudgetBudgetBudgetBudget Projected Expenditures (3%) 12,683,812 13,064,326 13,456,256 13,859,944 14,275,742 14,704,014 FB as % of Projected Exp for following year39.1%39.2%39.1%39.4%39.7%39.9% FEMA Reimbursement; General FundGeneral Fund 1) Use General Fund Reserves1) Use General Fund Reserves Est AmountEst % Long-Term Plan, Prior Debt Issued, Inflation, Etc. Transportation Plan –2016 tax levy to support $500,0005.0% debt contemplated for 2015 projects; Equipment Replacement Plan –planned $150,0001.5% increase in 2016; Debt –planned increase in debt service levy $200,0002.0% for existing debt; Estimated increase from inflation (wages, $200,0002.0% supplies, materials, etc.) Replace 2015 Reserves Used $140,0001.4% ESTIMATED TOTAL $1,190,00011.9% Resources to meet the demands generated ?????? from community growth What if 2015 revenues are lower than ?????? anticipated? What if 2015 expenditures are higher than ?????? anticipated? General FundGeneral Fund 1) Eliminate or Reduce Services1) Eliminate or Reduce Services Code EnforcementCode Enforcement •• RecreationRecreation •• Police Chief HiringPolice Chief Hiring •• Community EventsCommunity Events •• LibraryLibrary •• Pavement Management AllocationPavement Management Allocation •• CommunicationCommunication •• ER: 13Funding: -13 10,680 Parcels in the City  802 violations & 589 cases in 2013  Violations and cases growing in 2014 (505 YTD)  25% of all cases are proactively discovered; 75%  reactive (49% resident initiated) Top Three Code Concerns:  –19% Garbage and Refuse –15% Tall Grass –13% Right of way violations Community Survey: Over 70% felt enforcement of 12 nuisance codes was  “about right” On four codes (messy yards, snow shoveling of  sidewalks, junk cars and storage of recreational (equipment) enforcement was not deemed tough enough by 19% 35% thought none of the codes should be top priority for  enforcement 13% place priority on sidewalk shoveling  12% on messy yard  RecreationRecreation ERER: : 1717FundingFunding: : --99 Program (YTD –9/30/14)No.Total Participants Camps7339 Trips9296 Summer Tot Lot / Playground (3699 Classes (subcontracted)557 Classes (other)2163 Club Prior -Trips3101 Club Prior –Drop In Programs3 days/wk5,721 Adult Leagues51,058 TOTAL8,434 Other Services:FacilityRentals Parking Field Scheduling Warming House Police ChiefPolice Chief ER: 2Funding: +11 +90% police service excellent or good  80-89% 911 emergency call response times good to excellent  30% safety is the most important aspect of Prior Lake’s quality of life  89% satisfied with police patrolling in the neighborhood  (up 10% from last survey) 7% thought there are unsafe areas in the City  (among the lowest in the metro area) Most Serious Public Safety Concern:  –28% distracted driving; –22% speeding Traffic Violation Top Priorities:  –72% drunken driving; –49% careless driving; –28% running stop lights; –26% driving without seatbelts 7% believe loud mufflers, illegal parking or junk cars are a top priority  Community EventsCommunity Events ER: N/AFunding: N/A Community Survey: 67% reported participating in a community celebration or  event during the past 2 years 98% rate their experience as excellent or good  Community EventsCommunity Events Program (YTD –9/30/14)No.Total Participants (est.) Autumn Gathering1650 Rex’s Birthday Party1100 Beach Parties3600 Egg Hunt13,000 Lakefront Days23,000 Moviesin the Park21,000 NeighborhoodPark Parties81,440 Penny Carnival1500 Trick-or-Treat1630 Tunes for Tots1400 Holiday Dazzle1750 TOTAL12,070 LibraryLibrary ER: N/AFunding: N/A In 2013: 21,965 registered users of the Prior Lake Branch Library  104,383 visits to the library  Pavement Management Pavement Management AllocationAllocation ER: N/AFunding: N/A YearSeal CoatOverlayReconstruction Annual Goal6.673.331.67 20115.822.380.96 20124.301.881.01 20135.442.070.38 20144.411.200.12 Community Survey: 7% focused on street maintenance when asked about  the most serious issue facing the community 15% cited street maintenance when asked about  aspects of the community to be improved in the future CommunicationsCommunications ER: 16Funding: -11 Products: Bi-monthly Wavelengths plus summer special to 8500  households Newswire –weekly to 1200 addresses  PL Americancolumns & submittals –quarterly to 8400  households 53 Advisory Committee meetings via cable  53 Advisory Committees webcast  Weekly website update (7000 viewers/month)  Average 12 brochures  Flyers –code, recreation, projects  CommunicationsCommunications Community Survey: 87% (9% improvement from last survey) rate the job the  City is doing in communication as good or excellent Wavelength rates next to PL Americanas primary source  of information about city CommunicationsMajor At Least Minor SourceSource Wavelength56%87% Newswire25%59% Government Access Channels25%43% Webstreaming3%20% City Facebook/Twitter1%15% General FundGeneral Fund 33) Reduce Funding of Long) Reduce Funding of Long--Term PlansTerm Plans Transfer to Revolving Park Equipment Fund Transfer to Revolving Park Equipment Fund -- •• $50k.$50k. OtherOther Open Budget Items:Open Budget Items: 1)1)Facilities Management Plan / GESPFacilities Management Plan / GESP 2)2)Transportation Plan / Funding from Water, Transportation Plan / Funding from Water, Sewer and Water Quality FundsSewer and Water Quality Funds Public Budget Meeting Public Budget Meeting ––12/08/1412/08/14 Public Hearing Public Hearing ––Fee Schedule Fee Schedule ––12/08/1412/08/14 Adoption of 2015 Budget & Tax Levy Adoption of 2015 Budget & Tax Levy ––12/08/1412/08/14 2015 Final Budget 2015 Final Budget &Tax Levy&Tax Levy Council DirectionCouncil Direction 2015 Budget Direction2015 Budget Direction •• Use of Fund Balance ReservesUse of Fund Balance Reserves •• 2015 Tax Levy 2015 Tax Levy OptionsOptions •• ***COUNCIL DISCUSSION******COUNCIL DISCUSSION***