HomeMy WebLinkAbout08 07 2017 2018 Preliminary Budget and Tax Levy Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL WORK SESSION REPORT
MEETING DATE: AUGUST 7, 2017
AGENDA #: 1B
PREPARED BY: CATHY ERICKSON, FINANCE DIRECTOR
PRESENTED
BY:
CATHY ERICKSON AND LORI OLSON
AGENDA ITEM: PRELIMINARY 2018 BUDGET/TAX LEVY DISCUSSION
INTRODUCTION: Annually a Budget and Capital Improvement Program Schedule is prepared by
staff and approved by the city council for information purposes (attached). It lays
out the process and timeline for the budget preparation. In accordance with that
document, a 2018 CIP public presentation and input meeting will be held tonight
at the Council meeting.
Since the Budget and the Capital Improvement Program are the city’s two
primary financial tools it is appropriate that they be addressed at the same
meeting, at least initially. This workshop report lays the groundwork for the 2018
budget and long-range plan so the City Council sees our preliminary numbers for
the total tax levy, not just the CIP impact on the tax levy.
TOPICS: The tax levy impact of the 2018 operating budget, EDA and CIP are shown on
the long-range forecast table below. The 2018 budget and long-range plan were
revised to add funding to accomplish the following things:
Personnel: Based on the personnel plan worksession held in June, staff has
added
1. Two additional full-time staff (maintenance worker and police officer).
2. One additional part-time Police CSO
3. One Police drug task force officer. The SMSC is making an annual
contribution of $70,000 for 2017-2019 to help fund this position.
Current Expenditures: Staff has included the following items in the 2018
budget request:
1. Laserfiche Software upgrade ($43,000)
2. Police body cameras ($37,000)
3. Streets pavement management increase ($56,000)
4. Parks sidewalk/trail repairs & maintenance add ($30,000)
5. Shift PW Director from Personnel Services category (K Gehler) to
Current Expenditures category (J Wedel/professional services)
($40,000). The net General Fund impact on the tax levy for outsourcing
the Public Works Director position is approximately $10,000.
2
Debt Service: The proposed 2018 CIP projects will impact the debt service levy
beginning in 2019. Major transportation projects scheduled for 2018 which
involve a property tax levy (payable 2019) are listed below:
Project Description Project Levy
Duluth Avenue / TH 13 Improvements $1,064,000
Park Avenue Improvement 150,000
Franklin Trail from Summer Street to CSAH 44
1,050,000
Green Heights /Pershing area Improvements
1,130,000
Huron Street Area Improvements
690,000
Balsam/Sunrise/Spruce/Spruce Ct. 1,060,000
Total $4,494,000
Tonight we would like to discuss and answer any questions the city council has
about the long range forecasts set forth in the graphic below. As you can see the
graphic seeks to identify the main financial elements which result in the annual
tax levy. The projections for 2018 are the most fully developed and will be the
focus of our discussion.
At this point in budgeting there are a considerable number of financial variables
which are unknown and will be part of our follow-up discussions.
LONG RANGE FORECAST
CIP Workshop 08.07.2017
2017 2018 2019 2020 2021
Tax Levies:
General 7,192,792 7,846,015 8,256,262 8,749,651 9,127,890
Equipment Revolving Fund 375,000 550,000 600,000 600,000 600,000
Revolving Park Equip Fund 213,406 368,184 469,292 563,276 657,649
Facilities Management Fund - - - 30,000 80,000
EDA Fund 140,000 140,000 140,000 140,000 140,000
Debt Service 3,646,956 3,426,683 3,757,829 3,678,034 4,139,067
Breakdown of Change in Levies:
General 19,999 653,223 410,247 493,389 378,239
Equipment Revolving Fund 50,000 175,000 50,000 - -
Revolving Park Equip Fund 213,406 154,778 101,108 93,984 94,373
Facilities Management Fund - - - 30,000 50,000
EDA Fund (15,000) - - - -
Debt 221,387 (220,273) 331,146 (79,795) 461,033
Total Change 489,792 762,728 892,501 537,578 983,645
General 0.28%9.08%5.23%5.98%4.32%
Equipment Revolving Fund 15.38%46.67%9.09%0.00%0.00%
Revolving Park Equip Fund n/a 72.53%27.46%20.03%16.75%
Facilities Management Fund n/a n/a n/a n/a 166.67%
EDA Fund -9.68%0.00%0.00%0.00%0.00%
Debt 6.46%-6.04%9.66%-2.12%12.53%
Total Change 4.42%6.59%7.24%4.07%7.15%
Projected
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Upcoming discussion and review:
• Union contract negotiations
• Health care plans/rate review
• Evaluation of building permit and plan check fees
• Additional review of revenue sources
• Additional review of expenditure requests
CONCLUSION:
In September, staff needs to provide the maximum tax levy amount to the
County. Staff is looking for direction from the City Council regarding the
maximum levy increase they would like to submit. In accordance with the
Budget and Capital Improvement Schedule, staff will continue to revise the
budget based on Council direction. The final 2018 Budget and tax levy is
proposed to be adopted on December 4.
08/03/2017
4646 Dakota Street SE
Prior Lake, MN 55372
2018 Preliminary Budget & Capital Improvement Program Schedule
NOTE: All Highlighted Meetings Open to the Public
March 27 Dept. Heads submit large budget item requests to Finance
April 10 Council Workshop – 2018 Budget and Long Range Financial Forecast (establish
2018 levy target)
May 1 Budget instructions provided to Dept. Heads
After 2016 Audit
is Completed
and Closed in
BS&A.
Approximately
May 16- June 2
Dept. Heads submit budget requests to Finance
June 5- June 16 City Manager, Finance and Staff budget review
June 26 Council Workshop – Personnel Plan/Compensation Plan Forecast Adjustments
July 10 Council Workshop – 2018 CIP Presentation
August 7 Council Meeting - 2018 CIP Public Presentation and Discussion
August 21 Council Workshop – Preliminary 2018 Budget/Tax Levy Discussion
September 18 Council Meeting – Adopt Preliminary Tax Levy and announce public budget hearing
date
November 6 Council Workshop – Yearend Budget Preview and Final 2018 Budget/Tax Levy
Discussion
November 9 Town Hall Meeting (tentative)
December 4 Council Meeting – Public Budget Hearing
December 4 Council Meeting – Adopt 2018 Budget and Tax Levy