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Home My WebLink About7B 2017 Budget PresentationNovember 28, 2016 Frank Boyles, City Manager Don Uram, Finance Director 1 Budget Objectives/Metrics 2017 Budgets Tax Supported Enterprise Funds Preliminary Property Values Questions Tonight’s Agenda 2 Bond Rating –Maintain/improve current rating (Moody’s Aa2) 2016 –S&P Rating AA+ General Fund Reserves –40% to 50% 2015 Year End –47% Property Tax Rank –Maintain/improve Property Taxes/HH –Growth plus inflation General Fund Expenditures/HH –Growth plus inflation Budget Objectives/ Metrics 3 City Tax Capacity Rate* 4 29.44% 30.71% 29.74% 31.88% 30.73% 31.98% 31.95% 36.03% 40.03% 43.45% 46.14%46.01% 43.36% 42.95% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 2010 2011 2012 2013 2014 2015 2016 Prior Lake 7-County Metro Average *City Levy/Tax Capacity = Tax Rate Total Tax Capacity Rate* 5 101.37% 106.57% 109.77% 115.79% 113.92% 108.64% 108.32%103.29% 117.00% 125.62% 132.90% 132.97% 123.34% 122.63% 90.00% 100.00% 110.00% 120.00% 130.00% 140.00% 150.00% 2010 2011 2012 2013 2014 2015 2016 Prior Lake 7-County Metro Average *City, County, School, and Special Districts G.F. Operating Expenditures Per Household 6 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 Expected Op. Expenditures/HH Op. Expenditures/HH Property Tax Levy Per Household 7 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Property Tax Levy/HH Expected Property Tax Levy/HH Tax Supported Funds General Debt Service Revolving Equipment Revolving Park Equipment Facilities Economic Development Authority 2017 Budgets 8 9 2017 Property Tax Levy Comparison Change 16 -17 Property Taxes 2016 2017 Amount Percent Levy -Tax Capacity General Fund -Operating $ 7,172,792 $ 7,192,793 $ 20,001 0.28% 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 $ 10,410,136 $ 571,494 5.81% Levy -Market Value -General Fund 1,084,719 1,018,019 (66,700)-6.15% Levy -Economic Dev Authority 155,000 140,000 (15,000)-9.68% Total Levy $ 11,078,361 $ 11,568,155 $ 489,794 4.42% Combined General Fund & Revolving Park Equipment Fund $ 7,172,792 $ 7,406,199 $ 233,407 3.25% General Fund 10 2016 Amended Budget 2017 Proposed Budget $ Change 16 to 17 % Change 16 to 17 Revenues 12,775,738 13,020,878 245,140 1.92 Expenditures 13,008,738 13,070,878 62,140 0.47 Difference 233,333*50,000* *Use of Reserves Revenues -$13.02M Property Taxes -$8.2M (63%) Charges for Services -$1.7M (13.6%) Intergovernmental -$1.5M (11.8%) Expenditures -$13.07M Police -$3.7M (28.5%) Street -$1.4M (10.7%) Parks -$ 1.3M (9.9%) General Fund 11 G. F. Revenues 12 Property Tax Levy -Tax Capacity, $7,192,793 Property Tax Levy -Market Value, $1,018,020 Licenses & Permits, $587,220 Intergovernmental, $1,542,735 Charges for Services, $1,776,311 Other Revenues, $173,800 Bond Proceeds, $300,000 Transfers From Other Funds, $430,000 Cost Components Personnel -$8.33M (63.7%) Current Expenditures -$3.64M (27.8%) Capital Outlay -$83.4k (<1%) Transfer Out –1.02M (7.8%) General Fund 13 G. F. Expenditures 14 Employee Services, $8,327,309 Current Expenditures, $3,642,159 Capital Outlay, $83,391 Transfers To Other Funds, $1,018,019 Total Revenues -$4,470,206 Property Tax Levy (TC and MV) -$3,646,956 Special Assessments Transfers from other Funds Total Expenditures -$5,019,318 Planned use of Reserves -$279,112 Debt Service 15 Total Revenues -$ 726,594 Property Tax Levy -$375,000 Transfers from Enterprise Funds Total Expenditures -$872,704 Planned use of Reserves -$146,110 Revolving Equipment Fund 16 2017 Budget -$160,825 Preliminary Tax Levy -$140,000 Tech Village Rent -$8,500 Use of Reserves -$9,825 Economic Development Authority 17 Enterprise Funds Water Sewer Water Quality 2017 Budgets 18 Total Revenues -$ 5,526,196 Charges for Services -$4,116,196 Debt (AMRS Replacement) -$850,000 Includes Proposed Rate Increase of $0.13 Total Expenditures -$6,025,897 Reflects CIP identified in the 2017-2021 CIP Planned use of Reserves -$769,701 Water Fund 19 Total Revenues -$ 3,982,340 Charges for Services -$3,109,530 Debt (AMRS Replacement) -$850,000 Includes proposed City rate Increase of $0.17 and MCES increase of $0.35 Total Expenditures -$4,461,398 Reflects CIP identified in the 2017-2021 CIP Planned use of Reserves -$479,058 Sewer Fund 20 Total Revenues -$ 919,791 Charges for Services -$876,921 Includes Proposed Rate Increase of $0.41 Total Expenditures -$1,388,208 Reflects CIP identified in the 2017-2021 CIP Planned use of Reserves -$468,415 Water Quality Fund 21 EMV -$3.65B (+3.2%) Residential -$2.73B (+2.74%) New Construction -$44.7M (-13.2%) TMV -$2.94B (+3.34%) Median Value Home -$266,900 (+4.0%) Average Value Home -$307,300 (+1.7%) Projected City Tax Inc. -$37.82 (3.6%) Pay 2017 Preliminary Property Values 22 23 Service Challenges Proactive Policing Winter Maintenance Transportation Projects Aging Fleet impact to operations Parks, trails and natural area maintenance Technology Replacement EAB 24 Council Feedback and Direction 1.Preliminary 2017 Budgets 2.Recommended new/increased fees 3.Preliminary property tax levy 25