HomeMy WebLinkAbout08 22 2016 2017 Budget Update Report
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL WORKSHOP AGENDA REPORT
MEETING
DATE:
AUGUST 22, 2016
PREPARED
BY:
DON URAM, FINANCE DIRECTOR
CATHY ERICKSON, ACCOUNTING MANAGER
PRESENTER: FRANK BOYLES, CITY MANAGER
DON URAM, FINANCE DIRECTOR
CATHY ERICKSON, ACCOUNTING MANAGER
WORKSESSI
ON TOPIC:
2017 PRELIMINARY BUDGET & TAX LEVY
DISCUSSION: Introduction
State statutes require that each taxing authority adopt a preliminary budget
and certify a preliminary tax levy for payable 2017 to the County on or before
September 30, 2016.
The preliminary tax levy establishes the maximum that the City can levy
against properties in 2017. The Council will consider the final tax levy in
December following a public hearing at which time the levy can be either be
reduced or maintained at the amount established in September. The Council
will not be able to increase the tax levy.
The purpose of today’s workshop is to continue the discussion started earlier
this year and receive direction on the preliminary 2017 budget and tax levy.
Additional meetings/workshops are currently scheduled to discuss and adopt
2017 property tax levies and budgets.
September 26, 7:00 pm Adopt maximum tax levy and
preliminary budget
October 12, 6:00 pm Town Hall budget meeting
November 14, 5:00 pm Budget work session
November 28, 7:00 pm Public budget meeting
December 12, 7:00 pm Adopt final budget and tax levy
Staff was directed to look at revenues and so we will also present a list of
recommended fee changes for Council to consider. Historically this has
happened later in the year but should be included in this discussion so any
changes may be incorporated into the preliminary budget proposed for
adoption on September 26. The final fee schedule will be adopted as an
ordinance with the budget in December.
History
Over the last three months, Staff presented the draft 2017-2021 CIP. The
impact of these updated and new plans on the debt balance, tax levy, fund
balance reserves and utility rates were a part of the Council and Staff
discussion. The Council held a public hearing on August 8 which was
Page 2
continued to August22nd to allow Staff time to update the plans based on
Council direction. The plans have been revised and will be presented to the
Council later tonight. Once the plan is adopted, any additional changes will
be incorporated into the appropriate budget.
Current
Budget Requests
This year, the development of the 2017 budget began in April when Staff
presented to the Council a summary of the 2015 financial results and an
update on what to expect for 2017. A follow-up meeting was held in June
when staff presented an overview of the preliminary 2017 budget and
projected tax impacts. The overall tax levy (including the general fund)
increase has been part of the CIP discussions that started in July.
Currently, the department budgets have been prepared taking into
consideration Council comments as well as the City Manager’s and Finance
department’s direction. Each department head has presented their budget to
the City Manager and explained any proposed changes. Several revisions
have occurred since the June presentation which will be explained later in
this report.
Overview
A budget overview has been attached to this agenda report. It reflects
preliminary figures for the 2017 budget for the following funds:
General Fund
Debt Service Funds –includes all debt
Cable Fund
Capital Park Fund
Revolving Equipment Fund
Revolving Park Equipment Fund
Facilities Management Fund
Economic Development Authority
Water Fund
Sewer Fund
Water Quality Fund
The second page shows tax levy and budgetary comparisons from the 2016
adopted budget to the preliminary 2017 figures. Summaries for revenues and
expenditures are also included with this report. The summaries reflect two
years of actuals; current year original and amended budgets; and the
preliminary 2017 budget.
Expenditures
The primary drivers of the change in expenditure levels from the 2106
original budget to the preliminary 2017 General Fund budget are:
Page 3
The following chart illustrates General Fund operating expenditures on a per
household basis from 2005 to the preliminary 2017 budget:
Includes 2016 Amended Budget and 2017 Preliminary Budget
The City Council adopted this metric in the most recent amendment to the
CFMP . . . “Maintain a level of General Fund operational expenditures on a
per household basis which takes into account the cost of inflation and
community growth.”
As reflected in the chart, the preliminary 2017 operating expenditures per
household continues to be less than the level which reflects the cost of
inflation and growth.
Page 4
Service Delivery Challenges
Staff has had ongoing discussions about service delivery challenges. These
challenges are triggered by:
City growth (i.e. increased street miles, parks, utility customers, etc.),
Level of activity (i.e. building permits, plats, projects, etc.); or
Other factors such as vacancies from employee illness, accidents, or
turnover.
Staff prepared a Personnel Plan that was presented to the Council at a work
session in April. The intent of the plan is to address these triggering events
mentioned above as well as succession planning. Council input from the
meeting is being addressed in the plan amendment which will be brought
back for further discussion. A timetable has not been established for bringing
this information back to the City Council.
With the exception of a contract building inspector, the 2017 preliminary
budget does not include any additional staff positions. Funding for this
temporary position will come out of 2017 fund balance from un-programmed
building permit revenue (fund balance) received in 2016.
This change is responding to the 168 unit Grainwood project presently under
construction, the 58,000 square foot Versatile Vehicle Building, coupled with
single family building permits which are generally the same volume as last
year and an anticipated building inspector retirement in April 2017.
Engineering
The 2017-2021 CIP reflects several transportation projects. With the
resignation of the City’s project engineer in July and considering that the
position has not been filled yet( although we are interviewing four candidates
next week), some concern has been raised about staff’s capacity to oversee
public improvement projects. As mentioned last year, staff finds itself taking
additional customer service steps on each project. In many cases, more than
one neighborhood meeting is required and public hearings are becoming
multi-meeting efforts. For these reasons, we expect that a combination of
staff and consultants will be needed for the rest of 2016 and 2017.
New Projects/Services
At the CIP workshop on August 8, the Council agreed that a very pragmatic
approach should be taken when considering new projects or adding services.
The Council also seemed to recognize that service levels have gradually
declined due to those triggering items mentioned above. Historically, staff
has been able to include these items within their existing work schedules and
budgets but this approach is not sustainable over the long-term. Going
forward, if new projects are approved or new services added it will be
essential that resources are allocated to maintain that investment. A prime
example is Emerald Ash Borer which the City Council has directed that
resources be allocated to.
Estimated Tax Levy
The 2017 preliminary budget presents some funding constraints due to the
historical spending increases to provide community services coupled with
current and prior actions to keep property tax adjustments artificially low
(despite inflationary pressures and growth of the community) up to 2014.
Page 5
The following chart shows the change in the property tax levy based on the
preliminary budgets which contain no new personnel:
The following chart shows the total tax levy for the period 2012 to preliminary
2017:
Approximately 2.5% of the 6.92% reduction in 2012 was due to the legislative
change from a market value homestead credit aid program to a market value
exclusion program. The net change from 2011 to 2012 was (4.42%).
The City Council adopted this metric in the most recent amendment to the
CFMP . . . “Maintain a level of property taxes on a per household basis which
takes into account the cost of inflation and community growth.”
The following chart illustrates the total property tax levy on a per household
basis.
Page 6
As reflected in the chart, the preliminary 2017 total tax levy/household is
slightly higher than the level which reflects the cost of inflation and growth.
Use of General Fund Reserves
The 2015 budget included an amount intended to replace a portion of fund
balance previously used with a tax levy in 2015. This was necessary to stay
in compliance with the Comprehensive Financial Management Policy (40-
50% fund balance range). According to the audit, fund balance at year end
is 47%. The 2016 budget did not include the use of general fund balance to
fund operations.
For 2017, Staff is proposing the use of fund balance totaling $50,000 to pay
for a contract building inspector to address the increasing need for inspection
services discussed above. Since the contract inspector will not start until
2017, it makes sense to use permit revenue received for the project pay for
this cost. The permit revenue received for this project in 2016 was not
included in the City’s revenue projections and will be added to fund balance.
Fee Schedule Revisions
Staff is proposing a number of increases to the fees listed in the Fee
Schedule plus some new fees that we would like to discuss. Modest fee
increases are proposed for Planning and Zoning, some Park programs and
for liquor licenses. If approved, the total increased revenues would amount
to about $22,000. New fees would include a daily admission fee for parking
at Sand Point Beach and a per player field use fee. The daily admission fee
is projected to generate about $11,000 and would be used to help offset the
cost of our seasonal park patrol. The per player field use is projected to
generate about $58,400 and would cover about 30% of our field maintenance
costs. Another fee that has been discussed is the opportunity for seasonal
boat slip rentals at Sand Point and at Watzl’s beach. Each location has 17
slips. If we rented 4 slips, 13 slips would remain for daily use. Assuming we
charge the same as private companies on the lake ($3,500 per season),
projected annual gross revenue is $28,000. The staff would have to
Page 7
investigate whether there are cost increases such as insurance were we to
initiate such an effort.
Other fee revisions of 10% are included for trunk charges, connection
charges as the second year make up for increased inflationary costs which
have not been reflected in our development fees. These fees are commonly
adjusted on an annual basis.
Change in Valuations
Based on preliminary payable 2017 figures from Scott County, the estimated
market value for all properties in Prior Lake has increased 3.18%.
New construction added $44,728,600 to the market value.
Conclusion
Staff is seeking direction on the preliminary 2017 budgets, recommended fee
changes, and property tax levies in order to prepare the resolutions for
approval of the preliminary budget and levy on September 26, 2016.
Attachments:
1) Budget Overview (2 pages)
2) Revenue Summary (all funds)
3) Expenditure Summary (all funds)
4) Recommended Fee Schedule Revisions
Exhibit B City of Prior Lake Workshop 08.22.2016
2017 Preliminary Budget
Budgeted Funds
Debt Capital Revolving Revolving Park Facilities Total Total
General Service Cable Park Equipment Equipment Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted
Fund Funds Fund Fund Fund Fund Fund Funds Fund Fund Fund Funds Funds
Revenues / Sources
Property Taxes
Levy - Tax Capacity 7,271,555$ 2,628,937$ -$ -$ 375,000$ 213,406$ -$ 140,000$ 10,628,898$ -$ -$ -$ -$ 10,628,898$
Levy - Market Value 1,018,020 - - - - - - 1,018,020 - - - - 1,018,020
Special Assessments - 457,517 - - - - - 457,517 - - - - 457,517
Licenses & Permits 584,220 - - - - - - 584,220 - - - - 584,220
Fines & Forfeits - - - - - - - - - - - - -
Intergovernmental 1,542,735 - - - - - - 1,542,735 - - 34,790 34,790 1,577,525
Charges for Services 1,727,587 - 37,133 429,000 - - 8,500 2,202,220 4,116,196 3,338,490 876,921 8,331,607 10,533,827
Other Revenues 173,800 40,117 - 10,175 10,594 8,003 7,167 2,500 252,356 42,670 22,810 8,080 73,560 325,916
Bond Proceeds 300,000 - - - - 620,000 - 920,000 850,000 850,000 .1,700,000 2,620,000
Lease Proceeds - - - - - - - - - - - -
Transfers From Other Funds
General Fund - 1,018,019 - - - - - 1,018,019 - - - - 1,018,019
Water Fund 185,000 549,797 - - 160,000 46,350 - 941,147 - - - - 941,147
Sewer Fund 185,000 - - - 160,000 10,300 - 355,300 - - - - 355,300
Water Quality Fund 60,000 - - - 21,000 - - 81,000 - - - - 81,000
Trunk Reserve Fund - 250,000 250,000 250,000
TIF Fund - 25,205 - - - - - 25,205 - - - - 25,205
Facilities Management Fund - 20,614 - - - - - 20,614 - - - - 20,614
Capital Park Fund - -
Total Revenues / Sources 13,047,917$ 4,740,206$ 37,133$ 439,175$ 726,594$ 221,409$ 683,817$ 151,000$ 20,047,251$ 5,258,866$ 4,211,300$ 919,791$ 10,389,957$ 30,437,208$
Expenditures / Uses
Employee Services 8,354,348$ -$ -$ -$ -$ -$ -$ 125,075$ 8,479,423$ 734,249$ 703,039$ 293,033$ 1,730,321$ 10,209,744$
Current Expenditures 3,642,159 - 11,250 - - - - 35,750 3,689,159 1,325,278 1,700,476 253,533 3,279,287 6,968,446
Capital Outlay 83,391 - - - 872,704 213,406 211,526 - 1,381,027 121,891 79,480 - 201,371 1,582,398
Capital Improvements - - - - - - - - - 2,904,500 1,625,000 756,417 5,285,917 5,285,917
Subtotal 12,079,898$ -$ 11,250$ -$ 872,704$ 213,406$ 211,526$ 160,825$ 13,549,609$ 5,085,918$ 4,107,995$ 1,302,983$ 10,496,896$ 24,046,505$
Transfers To Other Funds
General Fund -$ -$ -$ -$ -$ -$ -$ -$ 185,000$ 185,000$ 60,000$ 430,000$ 430,000$
Treatment Plant (Debt)- - - - - - - - 549,797 - - 549,797 549,797
Equipment Fund - - - - - - - - 160,000 160,000 21,000 341,000 341,000
Park Equipment Fund - - - - - - - - - - - - -
Debt Service Funds 1,018,019 - - - - 20,614 - 1,038,633 - - - - 1,038,633
Facilities Management Fund - - - - - - - - 46,350 10,300 - 56,650 56,650
EDA Fund - - - - - - - - - - - - -
Debt Service - 5,019,318 - - - - - 5,019,318 - - - - 5,019,318
Subtotal 1,018,019$ 5,019,318$ -$ -$ -$ 20,614$ -$ 6,057,951$ 941,147$ 355,300$ 81,000$ 1,377,447$ 7,435,398$
Total Expenditures / Uses 13,097,917$ 5,019,318$ 11,250$ -$ 872,704$ 213,406$ 232,140$ 160,825$ 19,607,560$ 6,027,065$ 4,463,295$ 1,383,983$ 11,874,343$ 31,481,903$
Change in Fund Balance (50,000)$ (279,112)$ 25,883$ 439,175$ (146,110)$ 8,003$ 451,677$ (9,825)$ 439,691$ (768,199)$ (251,995)$ (464,192)$ (1,484,386)$ (1,044,695)$
1 of 2
Exhibit B2017 Property Tax Levy Comparison Workshop 08.22.2016
Change 15 - 16
Property Taxes 2016 2017 Amount Percent
Levy - Tax Capacity
General Fund - Operating 7,172,792$ 7,271,555$ 98,763$ 1.38%
Debt Service Funds 2,340,850 2,628,937 288,087 12.31%
Revolving Equipment Fund 325,000 375,000 50,000 15.38%
Revolving Park Equipment Fund - 213,406 213,406 n/a
Facilities Management Fund - - - n/a
9,838,642$ 10,488,898$ 650,256$ 6.61%
Levy - Market Value - General Fund 1,084,719 1,018,020 (66,699) -6.15%
Levy - Economic Dev Authority 155,000 140,000 (15,000) -9.68%
Total Levy 11,078,361$ 11,646,918$ 568,557$ 5.13%
7,172,792$ 7,484,961$ 312,169$ 4.35%
2017 Budget Expenditure Comparisons (2016 Original Budgets)
Capital Revolving Revolving Park Facilities Total Total
General Debt Service Cable Park Equipment Equipment Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted
Fund Funds Fund Fund Fund Fund Fund Funds Fund Fund Fund Funds Funds
2017 Total Expenditures / Uses 13,097,917$ 5,019,318$ 11,250$ -$ 872,704$ 213,406$ 232,140$ 160,825$ 19,607,560$ 6,027,065$ 4,463,295$ 1,383,983$ 11,874,343$ 31,481,903$
2016 Total Expenditures / Uses 12,945,738$ 5,110,172$ 6,360$ 340,000$ 1,200,955$ -$ 746,406$ 181,425$ 20,531,056$ 5,095,575$ 2,932,301$ 963,553$ 8,991,429$ 29,522,485$
Change 2016 to 2017 ($)152,179$ (90,854)$ 4,890$ (340,000)$ (328,251)$ 213,406$ (514,266)$ (20,600)$ (923,496)$ 931,490$ 1,530,994$ 420,430$ 2,882,914$ 1,959,418$
Change 2016 to 2017 (%)1.18%-1.78%76.89%-100.00%-27.33%n/a -68.90%-11.35%-4.50%18.28%52.21%43.63%32.06%6.64%
2017 Budget Expenditure Comparisons (2016 Amended Budgets)
Capital Revolving Revolving Park Facilities Total Total
General Debt Service Cable Park Equipment Equipment Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted
Fund Funds Fund Fund Fund Fund Fund Funds Fund Fund Fund Funds Funds
2017 Total Expenditures / Uses 13,097,917$ 5,019,318$ 11,250$ -$ 872,704$ 213,406$ 232,140$ 160,825$ 19,607,560$ 6,027,065$ 4,463,295$ 1,383,983$ 11,874,343$ 31,481,903$
2016 Total Expenditures / Uses 13,008,738$ 5,110,172$ 6,360$ 170,000$ 1,200,955$ -$ 746,406$ 181,425$ 20,424,056$ 5,095,575$ 2,932,301$ 963,553$ 8,991,429$ 29,415,485$
Change 2016 to 2017 ($)89,179$ (90,854)$ 4,890$ (170,000)$ (328,251)$ 213,406$ (514,266)$ (20,600)$ (816,496)$ 931,490$ 1,530,994$ 420,430$ 2,882,914$ 2,066,418$
Change 2016 to 2017 (%)0.69%-1.78%76.89%-100.00%-27.33%n/a -68.90%-11.35%-4.00%18.28%52.21%43.63%32.06%7.02%
Revolving Revolving
General Park Equipment Equipment
Fund Fund Fund
2017 Total Expenditures / Uses 13,097,917$ 213,406$ 13,311,323$ 213,406
2016 Total Expenditures / Uses 13,008,738$
1 - Budgeted in
General Fund in
2016 13,008,738$ 230,477
Change 2016 to 2017 ($)89,179$ 302,585$ (17,071)$
Change 2016 to 2017 (%)0.69%2.33%-7.41%
Conbined General Fund & Revolving
Park Equipment Fund
Combined
General Fund
& Revolving
Park
Equipment
Fund Budgets
1 - $230,477 of Park Equipment expenditures were budgeted in the General Fund in 2016.
These expenditures are budgeted separately in the Revolving Park Equipment Fund in
2017. This is consistent with the city's budget process for F410 (Revolving Equipment
Fund) and F440 (Facilities Maintenance Fund)
2
2014 2015 2016 2016 2017 $2017
ACTIVITY ACTIVITY ORIGINAL AMENDED DEPT REQUESTED Change Dept Requested
DESCRIPTION BUDGET BUDGET BUDGET % CHANGE
Fund 101 - GENERAL FUND
Taxes 7,364,122 8,087,428 8,257,512 8,257,512 8,289,575 32,063 0.39
Licenses and Permits 583,152 587,464 630,495 630,495 584,220 (46,275) (7.34)
Intergovernmental 1,625,739 1,573,865 1,535,235 1,535,235 1,542,735 7,500 0.49
Charges for Services 1,642,197 1,653,561 1,714,306 1,714,306 1,727,587 13,281 0.77
Fines and Forfeitures 127,225 1,390
Miscellaneous Revenues 531,321 425,561 275,550 275,550 173,800 (101,750) (36.93)
Debt Issued 300,000 300,000
Sale of assets 7,130
Transfers in 481,763 355,520 532,640 362,640 430,000 67,360 18.57
Total Fund 101 12,355,519 12,691,919 12,945,738 12,775,738 13,047,917 272,179 2.13
DEBT SERVICE FUNDS
Taxes 1,744,716 1,876,204 2,340,850 2,340,850 2,628,937 288,087 12.31
Miscellaneous Revenues 698,679 1,241,923 786,852 786,852 497,634 (289,218) (36.76)
Debt Issued 528,078 5,529,906
Transfers in 1,867,778 1,794,299 1,697,997 1,697,997 1,613,635 (84,362) (4.97)
TOTAL DEBT SERVICE FUNDS 4,839,251 10,442,332 4,825,699 4,825,699 4,740,206 (85,493) (1.77)
Fund 210 - CABLE FRANCHISE FUND
Charges for Services 25,670 5,133 5,133 5,133 37,133 32,000 623.42
Total Fund 210 25,670 5,133 5,133 5,133 37,133 32,000 623.42
Fund 225 - CAPITAL PARK FUND
Charges for Services 257,835 123,710 590,400 590,400 429,000 (161,400) (27.34)
Miscellaneous Revenues 26,662 15,659 7,000 7,000 10,175 3,175 45.36
Total Fund 225 284,497 139,369 597,400 597,400 439,175 (158,225) (26.49)
08/19/2016 BUDGET REPORT FOR CITY OF PRIOR LAKE
City of Prior Lake
2017 Dept Requested Budget
Revenue
2014 2015 2016 2016 2017 $2017
ACTIVITY ACTIVITY ORIGINAL AMENDED DEPT REQUESTED Change Dept Requested
DESCRIPTION BUDGET BUDGET BUDGET % CHANGE
08/19/2016 BUDGET REPORT FOR CITY OF PRIOR LAKE
City of Prior Lake
2017 Dept Requested Budget
Revenue
Fund 240 - EDA SPECIAL REVENUE FUND
Taxes 149,950 158,731 155,000 155,000 140,000 (15,000) (9.68)
Intergovernmental 17,165
Charges for Services 5,639 7,438 10,000 10,000 8,500 (1,500) (15.00)
Miscellaneous Revenues 3,108 2,994 500 500 2,500 2,000 400.00
Transfers in 34,600
Total Fund 240 193,297 186,328 165,500 165,500 151,000 (14,500) (8.76)
Fund 410 - REVOLVING EQUIPMENT FUND
Taxes 199,888 250,033 325,000 325,000 375,000 50,000 15.38
Intergovernmental 24,585
Miscellaneous Revenues 62,907 21,391 15,067 15,067 10,594 (4,473) (29.69)
Debt Issued 400,000 400,000 (400,000) (100.00)
Other 57,141 101,097
Sale of assets 13,694 6,240 24,000 24,000 (24,000) (100.00)
Transfers in 131,000 141,000 141,000 141,000 341,000 200,000 141.84
Total Fund 410 489,215 519,761 905,067 905,067 726,594 (178,473) (19.72)
Fund 430 - REVOLVING PARK EQUIP FUND
Taxes 213,406 213,406
Miscellaneous Revenues 16,063 7,896 8,003 8,003
Transfers in 50,000
Total Fund 430 66,063 7,896 0 0 221,409 221,409
Fund 440 - FACILITIES MANAGEMENT FUND
Miscellaneous Revenues 26,897 13,672 8,029 8,029 7,167 (862) (10.74)
Debt Issued 620,000 620,000 620,000
Energy lease issued 2,667,924
Transfers in 45,000 50,000 55,000 55,000 56,650 1,650 3.00
Total Fund 440 2,739,821 63,672 683,029 683,029 683,817 788 0.12
Fund 601 - WATER FUND
Charges for Services 3,051,682 3,390,052 3,764,536 3,764,536 4,116,196 351,660 9.34
Other Revenues 155,716 72,845 60,000 60,000 42,670 (17,330)
Bond Proceeds 0 0 950,000 950,000 850,000 (100,000) (10.53)
Transfers in 0 0 0 0 250,000 250,000
Capital contributions 839,176 1,117,829 0 0 0 -
Total Fund 601 4,046,574 4,580,726 4,774,536 4,774,536 5,258,866 484,330 10.14
2014 2015 2016 2016 2017 $2017
ACTIVITY ACTIVITY ORIGINAL AMENDED DEPT REQUESTED Change Dept Requested
DESCRIPTION BUDGET BUDGET BUDGET % CHANGE
08/19/2016 BUDGET REPORT FOR CITY OF PRIOR LAKE
City of Prior Lake
2017 Dept Requested Budget
Revenue
Fund 602 - STORM WATER UTILITY
Intergovernmental 162,041 42,402 34,790 34,790 34,790 - -
Charges for Services 843,292 865,244 838,537 838,537 876,921 38,384 4.58
Other Revenues 21,101 9,966 10,000 10,000 8,080 (1,920) (19.20)
Bond Proceeds 0 0 0 0 0 -
Capital contributions 224,410 265,691 0 0 0 -
Total Fund 602 1,250,844 1,183,303 883,327 883,327 919,791 36,464 4.13
Fund 604 - SEWER FUND
Charges for Services 2,369,423 2,432,925 2,797,490 2,797,490 3,338,490 541,000 19.34
Other Revenues 108,825 34,017 40,000 40,000 22,810 (17,190) (42.98)
Bond Proceeds 0 0 0 0 850,000 850,000
Capital contributions 950,894 671,026 0 0 0 -
Total Fund 604 3,429,142 3,137,968 2,837,490 2,837,490 4,211,300 1,373,810 48.42
Grand Total All Fund 29,719,893 32,958,407 28,622,919 28,452,919 30,437,208 1,984,289 6.97
2014 2015 2016 2016 2017 $2017
ACTIVITY ACTIVITY ORIGINAL AMENDED DEPT REQUESTED Change Dept Requested
DEPARTMENT DESCRIPTION BUDGET BUDGET BUDGET % CHANGE
Fund 101 - GENERAL FUND
41110.00 MAYOR & COUNCIL 52,011 58,532 55,409 55,409 58,193 2,784 5.02
41130.00 ORDINANCE 8,497 6,952 7,500 7,500 7,500
41320.00 ADMINISTRATION 376,260 375,542 404,081 404,081 409,290 5,209 1.29
41330.00 BOARDS & COMMISSIONS 9,389 10,137 10,539 10,539 10,689 150 1.42
41410.00 ELECTIONS 15,160 84,750 29,640 29,640 (29,640) (100.00)
41520.00 FINANCE 426,600 411,253 444,977 444,977 459,848 14,871 3.34
41540.00 INTERNAL AUDITING 25,115 30,748 28,150 28,150 28,150
41550.00 ASSESSING 134,621 152,155 169,750 169,750 187,250 17,500 10.31
41610.00 LEGAL 384,657 233,507 200,000 200,000 200,000
41820.00 HUMAN RESOURCES 152,329 88,935 154,831 154,831 163,634 8,803 5.69
41830.00 COMMUNICATIONS 122,493 88,443 114,393 114,393 119,737 5,344 4.67
41910.00 COMMUNITY DEVELOPMENT 265,663 294,664 337,359 337,359 347,249 9,890 2.93
41920.00 INFORMATION TECHNOLOGY 620,210 321,239 336,161 336,161 345,592 9,431 2.81
41940.00 FACILITIES - CITY HALL 495,212 499,483 452,059 452,059 485,766 33,707 7.46
42100.00 POLICE 3,385,777 3,351,784 3,542,365 3,554,365 3,729,775 175,410 4.94
42200.00 FIRE 831,963 880,918 902,032 902,032 905,143 3,111 0.34
42400.00 BUILDING INSPECTION 533,843 553,671 595,843 595,843 638,622 42,779 7.18
42500.00 EMERGENCY MANAGEMENT 4,745 9,577 9,750 9,750 11,802 2,052 21.05
42700.00 ANIMAL CONTROL 25,200 25,200 26,448 26,448 26,448
43050.00 ENGINEERING 337,699 361,665 387,626 387,626 385,067 (2,559) (0.66)
43100.00 STREET 1,139,848 1,384,196 1,385,392 1,406,392 1,407,036 644 0.05
43400.00 CENTRAL GARAGE 396,874 332,454 380,369 380,369 398,240 17,871 4.70
45100.00 RECREATION 405,628 343,752 406,218 406,218 409,694 3,476 0.86
45200.00 PARKS 1,423,192 1,337,706 1,433,838 1,463,838 1,292,410 (171,428) (11.71)
45500.00 LIBRARIES 71,877 61,437 46,289 46,289 52,763 6,474 13.99
46100.00 NATURAL RESOURCES 66,015
49999.00 CONTINGENT RESERVE 207,174 6,213
80000.00 Transfers to other Funds 1,091,655 1,036,243 1,084,719 1,084,719 1,018,019 (66,700) (6.15)
Fund 101 Total 13,009,707 12,341,156 12,945,738 13,008,738 13,097,917 89,179 0.69
DEBT SERVICE FUNDS
47000.00 DEBT SERVICE 8,120,409 4,426,271 5,110,172 5,110,172 5,019,318 (90,854) (1.78)
80000.00 Transfers to other Funds 250,694
Total Debt Service Funds 8,371,103 4,426,271 5,110,172 5,110,172 5,019,318 (90,854) (1.78)
Fund 210 - CABLE FRANCHISE FUND
41340.00 PUBLIC CABLE ACCESS 4,540 6,360 6,360 11,250 4,890 76.89
Fund 210 Total 0 4,540 6,360 6,360 11,250 4,890 76.89
08/19/2016 BUDGET REPORT FOR CITY OF PRIOR LAKE
City of Prior Lake
2017 Dept Requested Budget
Expenditures
2014 2015 2016 2016 2017 $2017
ACTIVITY ACTIVITY ORIGINAL AMENDED DEPT REQUESTED Change Dept Requested
DEPARTMENT DESCRIPTION BUDGET BUDGET BUDGET % CHANGE
08/19/2016 BUDGET REPORT FOR CITY OF PRIOR LAKE
City of Prior Lake
2017 Dept Requested Budget
Expenditures
Fund 225 - CAPITAL PARK FUND
45040.00 PIKE LAKE PARK 3,346
45146.00 Eagle Creek/Brooksville Hills 170,000 170,000 (170,000) (100.00)
45147.00 MARKLEY LAKE TRAIL 1,169
45200.00 PARKS 18,265 309,230
80000.00 Transfers to other Funds 62,356 170,000
Fund 225 Total 18,265 376,101 340,000 170,000 0 (170,000) (100.00)
Fund 240 - EDA SPECIAL REVENUE FUND
46500.00 ECONOMIC DEVELOPMENT 107,442 143,282 153,775 153,775 151,325 (2,450) (1.59)
46503.00 TECH VILLAGE INCUBATOR 8,145 16,278 27,650 27,650 9,500 (18,150) (65.64)
Fund 240 Total 115,587 159,560 181,425 181,425 160,825 (20,600) (11.35)
Fund 410 - REVOLVING EQUIPMENT FUND
42100.00 POLICE 53,602 94,932 98,116 98,116 124,700 26,584 27.09
42100.06 POLICE FORFEITURES 27,018 70,422
42200.00 FIRE 108,098 107,198 103,000 103,000 (103,000) (100.00)
43050.00 ENGINEERING 43,288
43100.00 STREET 67,256 423,244 435,690 435,690 224,334 (211,356) (48.51)
43400.00 CENTRAL GARAGE 72,073 21,028 20,000 20,000 20,000
45200.00 PARKS 121,574 97,286 544,149 544,149 92,185 (451,964) (83.06)
49400.00 WATER 39,318 4,635 4,635
49420.00 WATER QUALITY 89,831
49450.00 SEWER 175,101 2,500 406,850 406,850
Fund 410 Total 668,010 945,759 1,200,955 1,200,955 872,704 (328,251) (27.33)
Fund 430 - REVOLVING PARK EQUIP FUND
45200.00 PARKS 213,406 213,406
Fund 430 Total 0 0 0 0 213,406 213,406
Fund 440 - FACILITIES MANAGEMENT FUND
41910.00 COMMUNITY DEVELOPMENT 827
41960.00 GESP 24,150 2,323,247
42100.00 POLICE 44,558 44,558 (44,558) (100.00)
42200.00 FIRE 5,850 36,284 36,284 17,484 (18,800) (51.81)
45100.00 RECREATION 6,642
45500.00 LIBRARIES 6,872 79,961 79,961
49400.00 WATER 12,400 619,950 619,950 114,081 (505,869) (81.60)
80000.00 Transfers to other Funds 81,381 45,614 45,614 20,614 (25,000) (54.81)
Fund 440 Total 24,150 2,437,219 746,406 746,406 232,140 (514,266) (68.90)
2014 2015 2016 2016 2017 $2017
ACTIVITY ACTIVITY ORIGINAL AMENDED DEPT REQUESTED Change Dept Requested
DEPARTMENT DESCRIPTION BUDGET BUDGET BUDGET % CHANGE
08/19/2016 BUDGET REPORT FOR CITY OF PRIOR LAKE
City of Prior Lake
2017 Dept Requested Budget
Expenditures
Fund 601 - WATER FUND
41520.00 FINANCE 81,622 77,488 87,683 87,683 86,933 (750) (0.86)
49400.00 WATER 2,215,575 2,269,667 4,179,428 4,179,428 4,998,985 819,557 19.61
80000.00 Transfers to other Funds 1,306,350 2,279,145 828,464 828,464 941,147 112,683 13.60
Fund 601 Total 3,603,547 4,626,300 5,095,575 5,095,575 6,027,065 931,490 18.28
Fund 602 - STORM WATER UTILITY
49420.00 WATER QUALITY 638,571 560,822 942,553 942,553 1,302,983 360,430 38.24
80000.00 Transfers to other Funds 81,000 321,769 21,000 21,000 81,000 60,000 285.71
Fund 602 Total 719,571 882,591 963,553 963,553 1,383,983 420,430 43.63
Fund 604 - SEWER FUND
41520.00 FINANCE 81,595 77,442 87,683 87,683 86,933 (750) (0.86)
49450.00 SEWER 2,366,023 2,391,487 2,593,298 2,593,298 4,021,062 1,427,764 55.06
80000.00 Transfers to other Funds 502,086 1,343,820 251,320 251,320 355,300 103,980 41.37
Fund 604 Total 2,949,704 3,812,749 2,932,301 2,932,301 4,463,295 1,530,994 52.21
Grand Total All Funds 29,479,644 30,012,246 29,522,485 29,415,485 31,481,903 2,066,418 7.02
Fund Fee description Current Proposed Comments
Estimated
Revenue Change
for 2017
GENERAL FUND RECREATION AND CLUB PRIOR PROGRAMS:
Playground/Tot Lot Summer Program $15-$30/week $25-$35/week 4,000
Youth Camps $10-$130/week/camp $10-$155/week/camp 3,020
NEW PROPOSED FEES
Adult Kickball $0 $30-$45/team New proposed fee: New program and related fee 800
GENERAL FUND PARK PERMITS:
Season Park Sticker (resident/non-resident)$25/$50 $30/$55 50
Boat Trailer Parking (Sand Point Beach )$20 $25 3,500
NEW PROPOSED FEES
'Daily Admission
'Daily Admission Saturday, Sunday &
Holiday
'Daily Admission Monday - Sunday &
Holiday (No change in daily rate of
$5.00)
Boat Trailer Parking (Sand Point Beach )$20
'Daily Admission Monday - Sunday &
Holiday 11,000
GENERAL FUND PARK FACILITY RENTALS
Canoe/Kayak Rack Rental (Sandpoint ) - Seasonal (05/01-09/30)
Resident $50 $60
Non-Resident $100 $150 120
Community Garden (05/01-10/31) Rental - Resident/Non-Resident
10x10 Garden $25/$35 $30/$45
10x20 Garden $40/$50 $45/$60
20x20 Garden $70/$80 $75/$90 610
NEW PROPOSED FEES
Field Use Fee $10 per player
New proposed fee: Staff is asking the Council to consider a
field use fee to cover a portion of the cost that is associated
with maintaining the athletic field facilities. Many City's use a
field use fee to recover some of theses costs due to the higher
degree of maintenance these facilties require to maintain safe
play surfaces. Other City's fees range in form from a per field
fee to per participant fee. Staff is recommending $10 per
participant which is estimated to cover 30% of our field
maintenance costs. Participation fees currently range from
$100-$1500 per season with an average of $300. This fee is
about 3-10% of the this participation fee. Field striping is
separate from this fee and is currently offered as a contract
service at cost.60,000
2017 Proposed Fee Schedule Changes
New proposed fee: Weekday admission for cars and boat
trailers. This fee would offset the cost of the seasonal park
patrol.
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Fund Fee description Current Proposed Comments
Estimated
Revenue Change
for 2017
2017 Proposed Fee Schedule Changes
GENERAL FUND POLICE, FIRE & RESCUE SERVICE CHARGES
Burning Permit $25 $30 570
GENERAL FUND MISCELLANEOUS LICENSES & PERMITS
NEW PROPOSED FEES
Community Event Application $0 $50/$100
GENERAL FUND CITY FACILITY RENTALS
NEW PROPOSED FEES
Facility Usage Fee (City Hall, Beaches, Main St.) - Resident/Non-Resident$0 $300/$450, $25/hr Clean-up Fee
Fire Station $50/$75, $25/hr Clean-up Fee
City Hall Conference Room - Parkview and Council - Resident/Non-Resident$0 $50/$75, $25/hr Clean-up Fee
City Hall Conference Room - Other - Resident/Non-Resident $0 $25/$50, $25/hr Clean-up Fee
City Hall Conference Room - Non-Profit $0 $25/hr Clean-up Fee
GENERAL FUND
On Sale Intoxicating $6,300 $7,000 7,000
GENERAL FUND ZONING AND SUBDIVISION FEES
Administrative Plat Fee $150 $250
CIC Plat Fee $150 $250
Comprehensive Plan Amendment $500 + $10/ac.$750
Concept Plan $200 $250
Conditional Use Fee $400 $500
Final Plat Application Fee $150 + $5/lot $250 + $5/lot
Interim Use Permit $400 $500
Metes & Bounds Subdivision $150 $250
P.U.D (prelim)$500 + $10/ac.$750 3,015
P.U.D (final)$200 $500
Preliminary/Final Plat Combination Fee $200 + $5/lot $500 + $10/lot
Registered Land Survey $150 $250
Rezoning $300 + $10/ac.$750
Sign Permit (Permanent) - Single Tenant Buildings $35 - 1st 40 sq. ft. plus .25/sq. ft. thereafter$75 - 1st 40 sq. ft. plus .50/sq. ft. thereafter
Sign Permit (Permanent) - Multiple Tenant Buildings $45 - 1st 40 sq. ft. plus .25/sq. ft. thereafter$75 - 1st 40 sq. ft. plus .50/sq. ft. thereafter
Sign Permit (Temporary)$35 $50
Site Plan $300 $500
Vacation Fee $250 $300
Vacation Variance (Other)$250 $300
Variance Fee (Single Family Residential)$200 $500
Variance Fee (Subdivision Ordinance)$250 $500
Zoning Code Amendment $350 $500
Zoning Appeal (Administrative & Planning Commission)$150 $250
General Fund 2017 Projected Revenue Change ($11k
is currently reflected in the 2017 budget)93,685
POLICE, FIRE & RESCUE SERVICE CHARGES: The City has completed an evaluation of liquor license fees including review of the 2015 LMC License and Permit Report. Staff is recommending an increase
for the On Sale Intoxicating license fee. State law requires a 30 day notice to license holders, so Staff recommends sending this notification in mid-November based on a change in fee at 1/1/2017.
O:\BUDGET\2017\August 22 Worksop\August22Workshop Budget Rpts Provided to Council\2017 Proposed Fee Schedule Changes 08 22 2016
Fund Fee description Current Proposed Comments
Estimated
Revenue Change
for 2017
2017 Proposed Fee Schedule Changes
TRUNK FUNDS DEVELOPMENT FEES
Trunk Fund - 502 Trunk Water Acreage Charge $6,692/ac.$6,692/ac.10,038
Trunk Fund - 502 Trunk Sewer Acreage Charge $3,344/ac.$3,678/ac.5,016
Trunk Fund - 502 Trunk Stormwater Acreage Charge
Trunk Fund - 502 Low Density Residential (R1,R2)$3,069/ac.$3,376/ac.4,604
Trunk Fund - 502 High density residential (R3)$5,060.00 / ac.$,5566.00 / ac.
Trunk Fund - 502 Commercial/industrial $6,358.00 / ac.$6,994.00 / ac.
Street Fund - 503 Street Oversize Acreage Charge $5,412 $5,953 8,118
TRUNK FUNDS CONNECTION PERMIT CHARGES
Trunk Fund - 502 Sewer Connection Charge $660 $726 13,140
Trunk Fund - 502 Water Connection Charge $1,095 $1,095 7,920
Tower Fund - 505 Water Tower Charge $1,400 $1,400 16,800
Trunk Fund 2017 Projected Revenue Change 65,636
UTILITY FUNDS UTILITY BILLING RATES:
Water Fund Water Rate $4.40/1000 gals. 1st 25,000 gals.$4.53/1000 gals. 1st 25,000 gals.
Water Fund $6.06/1000 gals. above 25,000 gals. $6.25/1000 gals. above 25,000 gals.
Sewer Fund Sewer Rate (City)$2.52/1000 gals.$2.77/1000 gals.
Sewer Fund Met Council Sewer Rate (MCES)$2.22/1000 gals.$2.22/1000 gals.Waiting for MCES rate from Met Council
Water/Sewer Fund Delinquent Assessment Administration Charge 40.00$ 60.00$
Staff is spending ~4 hrs more per billing cycle since our
estimate in 2014. More time is being spent on preparaton of
the delinquent utility assessment roll since the change in
collection method from water shut off to certification to taxes.
Additional hrs in the 1)preparation and review of UB list of
delinquent balances (send to previous owner, new
owner,landlord, as applicable), 2) preparation of delinquent
utility charges special assessment roll with PID# (County
specific format) and 3) final notice of outstanding charges for
utilities letters. Staff recommends fee change to cover a
greater portion of City cost.
For the water trunk fees (residential acreage charge,
connection fee and tower charge) Staff recommends
freezing the trunk water fees at the current rates to
acknowledges the indication of the Ctiy to partner with the
SMSC on a joint water treatment plant. Once an
agreement is in place the rate should be adjusted not only
to account for any capital included in the agreement, but
also changes in land resources. In addition, the Water
Plan is expected to be completed with the update of the
Comprehensive Plan which will further inform the
infrastructure needs in the future.
For the sewer and storm water trunk fees, Prior to
2016, the rates had been based off of the infrastructure
plans completed in 2005 as part of the comprehensive
plan. During review of the CIP in 2015, Staff
recommended increases to the trunk fees for 2016 and
beyond. Using the Construction Cost Index (CCI) as a
guide, the total rate increase of 36% was suggested to be
phased at 10% per year for the next three years. The
first increase was 10% in 2016. An updated rate study
completed as part of the Comprehensive Plan update
process will define future rate adjustments..
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