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HomeMy WebLinkAbout9A 2018 Preliminary Budget and Tax Levy Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 18, 2018 AGENDA # 9A PREPARED BY: FRANK BOYLES, CITY MANAGER CATHY ERICKSON, FINANCE DIRECTOR JASON ETTER, ACCOUNTING MANAGER PRESENTED BY: CATHY ERICKSON AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING PRELIMINARY 2018 CITY BUDGETS AND CERTIFYING PRELIMINARY 2018 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION DISCUSSION: Introduction State statutes require that each taxing authority adopt a preliminary budget and certify a preliminary tax levy for payable 2018 to the County on or before September 30, 2017. The preliminary tax levy establishes the maximum that the City can levy against properties in 2018. The City’s tax levy is used (together with the preliminary levies of other taxing entities) to assemble the parcel-specific truth in taxation notices for mailed distribution in November prior to the public budget meetings in December. At the meeting at which the City Council adopts a preliminary budget and preliminary tax levy (September 18), the Council must announce the date, time and place of the council meeting at which the 2018 budget and levy will be discussed and which allows for citizen input. That meeting is scheduled for Monday, December 4 at 7 p.m. in the Prior Lake City Council Chambers. This information must also be included in the meeting minutes. History This year, the development of the 2018 budget began in April when Staff presented to the Council a summary of the 2016 financial results and an update on what to expect for 2017. Staff also presented the Personnel Plan (a five-year projection of staffing needs) and Compensation Study (a study of city jobs to see if they are in the correct pay ranges and comparable to like cities) in July. A follow-up meeting was held in August when staff presented an overview of the preliminary 2018 budget and projected tax impacts. The overall tax levy (including the general fund) increase also included the CIP impacts on the levy which has been part of the CIP discussions that started in July. The budgets have been prepared taking into consideration Council comments as well as the City Manager’s direction. A budget workshop was Page 2 held on August 21 to review the proposed 2018 budgets. Council feedback indicated receptivity to new revenue sources such as daily parking fees at Sandpoint Park, a fee adjustment to address the City’s technology costs for processing permits, licenses, etc. The Council also indicated that they could support a levy increase that was less than 5%. To work toward a levy increase of less than 5%, several revisions have occurred since the August 21 presentation which have resulted in a reduction of the preliminary tax levy increase from 5.31%, which we originally provided you, to 4.7% which is reflected in the preliminary budget recommendation. The revisions made are as follows: A final budget workshop will be held on November 6 in anticipation of the December 4 hearing. Current Circumstances Overview A preliminary budget overview has been attached to this agenda report. It reflects preliminary figures for the 2018 budget for the following funds: • General Fund • Debt Service Funds • Cable Fund • Capital Park Fund • Revolving Equipment Fund • Revolving Park Equipment Fund • Permanent Improvement Revolving Fund • Facilities Management Fund General Fund: Increase in revenues (58,034) Park Admission Fees-Sandpoint weekday parking Police state aid Police bulletproof vests grant Building permit fees Fire-Township Fire & Resc Aid Increase Other permit/misc. licenses Net Increase in Expenditures 142,266 Parks Seasonal Staff correction/Park attendant weekdays at Sandpoint Park Parks Maintenance Workers -delay start until 7/1 Streets Mainenance reduction for seal coat/spot fill Tax abatement for Versatile Vehicles Other expense adjustments Use of General Fund Reserves for Cartegraph Upgrade (18,990) General Fund Levy Increase 65,242 Other Funds: Debt Service Levy Decrease-Close Funds/Balance Transfer (56,849) Revolving Parks Fund Levy Decrease (80,000) Net Decrease in Tax Levy (71,607) Page 3 • Economic Development Authority • Water Fund • Sewer Fund • Water Quality Fund The second page shows tax levy and budgetary comparisons from the 2017 adopted budget to the preliminary 2018 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 2018 budget. Estimated Tax Levy The following table shows the total tax levy for the period 2012 to preliminary 2018: Since 2012, the levy has increased on average 2.7% annually while the rate of inflation and community growth has, on average, increased 3.7%. (Annual average inflation of 1.6% plus household growth of 2.1%.) The 2018 preliminary budget presents some funding constraints due in part to our prior actions to keep property tax adjustments low (despite inflationary pressures and growth of the community). In some years the levy was supplemented by an allocation from the general fund reserve until it became apparent that such a contribution would be needed every year, reducing the reserve below policy minimums. With the recent addition of the Grainwood Senior apartments, Summit single family and townhome development, and Lake Ridge apartments, community growth in 2017 and 2018 alone is anticipated to be 3.6% and 3.1% respectively. One of the key metrics the City Council considers during the budget process is to “Maintain a level of property taxes on a per household basis which takes into account the cost of inflation and community growth.” Earlier in the 2018 budget process, staff anticipated that community growth plus the cost of inflation for 2018 at 4.3%. With the addition of the Lake Ridge apartments in 2017, the average combined household growth and inflation is estimated at 5.4% for 2018. If the city council were to support the 5.4% target, an additional $81,000 would be available to fund programs which the staff has already cut to reach the 4.7% target. This funding of $81,000 would be used to maintain existing programs and infrastructure. The following chart shows the detailed change in the property tax levy for 2018 based on the preliminary budgets presented to the Council tonight. 2012 *2013 2014 2015 2016 2017 Prelim 2018 Total Tax Levy 9,414,124$ 9,414,124$ 9,448,918$ 10,394,086$ 11,078,361$ 11,568,155$ 12,111,574$ Change from prior year ($)(700,000) - 34,794 945,168 684,275 489,794 543,419 Change from prior year (%)-6.92%0.00%0.37%10.00%6.58%4.42%4.70% CPI - U (MSP)2.3%1.9%1.4%-0.6%1.6%2.3% est 2.3% est * Approximately 2.5% of the 6.92% reduction in 2012 was due to the legislative change from a market value homestead credit aid program to a market value exclusion program. The net change from 2011 to 2012 was (4.42%). Page 4 One of the key metrics the City Council targets during the budget process is to “Maintain a level of property taxes on a per household basis which takes into account the cost of inflation and community growth.” The following chart illustrates the total property tax levy on a per household basis. As reflected in the chart, the preliminary 2018 total tax levy/household is slightly lower than the level which reflects the combined annual cost of inflation and growth. General Fund The proposed 2018 budget is about 1% (.54%) lower than the amended 2017 budget and (2.07%) lower than the original 2017 budget. Significant items discussed at the August work sessions are noted below. Service Delivery Challenges Staff has expressed its concerns about ongoing service delivery challenges. These challenges are triggered by: • Funding limitations to provide services to existing infrastructure, population and property. • City growth (i.e. increased street miles, parks, utility customers, etc.), Property Taxes 2017 2018 Amount Percent Levy - Tax Capacity General Fund - Operating 7,192,793$ 7,863,218$ 670,425$ 9.32% Debt Service Funds 2,628,937 3,142,620 513,683 19.54% Revolving Equipment Fund 375,000 500,000 125,000 33.33% Revolving Park Equipment Fund 213,406 238,184 24,778 11.61% Facilities Management Fund - - - n/a 10,410,136$ 11,744,022$ 1,333,886$ 12.81% Levy - Market Value - General Fund 1,018,019 227,552 (790,467) -77.65% Levy - Economic Dev Authority 140,000 140,000 - 0.00% Total Levy 11,568,155$ 12,111,574$ 543,419$ 4.70% Page 5 • Level of activity (i.e. building permits, plats, projects, etc.); or • Other factors such as vacancies from employee illness, accidents, or turnover. Personnel: Staff prepared a Personnel Plan that was presented to the Council at a work shop in July. The intent of the plan is to address these triggering events mentioned above as well as succession planning. Based on Council input, the 2018 proposed budget includes the following new positions: 1. Two additional full-time staff (maintenance worker and police officer). To minimize the 2018 levy impact, the maintenance worker planned start date is mid-year (7/1) and the police officer start date is 1/1. 2. One Police drug task force officer. While we anticipate filling this position in October 2017, the first time this position will be reflected in the full year budget is 2018. The SMSC is making an annual contribution of $70,000 for 2017-2019 to help fund this position. The city’s long-range personnel plan will continue to include a request for additional staff primarily to meet the following needs: 1) Public Works maintenance worker staffing to maintain existing streets and parks 2) A full-time City Clerk is needed to fulfill the statutory obligations of the City Council, including attending meetings, posting meeting notices, maintaining official city record and public documents (Laserfiche), etc. 3) Patrol officer staffing to meet the service call increase, response time, and rising crime rates. Contract Building Inspector The preliminary budget includes $50,000 for a temporary contract building official to help with inspections in 2018 due to the number of projects being constructed. This expenditure is budgeted in professional services and funding for this position is proposed to come from additional building permits. If they do not materialize, we will not fund this position. We have also been informed that our long time chief building official will be retiring at the end of February, 2018. Engineering The 2017-2021 CIP reflects several transportation projects. With the resignation of the Assistant Public Works Director/City’s Engineer in August, some concern has been raised about staff’s capacity to oversee public improvement projects. As discussed with the previous Council, the staff finds itself taking additional customer service steps on each project. In many cases, three neighborhood meetings are required and public hearings are becoming multi-meeting efforts. Additionally, the Engineering department does development review “on demand” as the need arises. Because of these two things, we expect that a combination of staff and consultants will be needed for the rest of 2017 and 2018. We believe this format will work, but we will continue to evaluate it. Employee Retention & Training: Over the past two years, 12 employees have resigned for other opportunities. Coupled with the seven employee retirements, the city lost 21% of its workforce in two years. In 2017 alone, four department heads resigned or retired. Not only has the city lost Page 6 important institutional knowledge, but the time and cost of recruiting and replacing employees is significant. A common theme relayed during staff ‘exit interviews’ is the lack of resources to handle the volume of work, which is professionally frustrating and personally stressful. This exodus of staff has caused Administration and the leadership team to reflect on the city as an employer and research methods to retain employees. One retention strategy we undertook in 2017 was the compensation program review to ensure that job classifications are accurate and appropriately graded and that our salaries reflect the current market. The recommendations from this analysis were approved by the City Council in July which sent a strong message of support to city staff. Over the past few years, to keep budgets low, training and professional development line items were cut. These funds should be restored over time to ensure strong supervisors, continuing education and engaged employees. Given the short tenure of half our staff, providing training and professional development will be an important tool to retain our young staff. In 2018, Administration will continue to assess the current benefits package, work culture and other important retention tools to preserve our workforce. The following table shows the detailed change in the General Fund 2018 preliminary budget as compared to the 2017 amended budget: The following chart illustrates General Fund operating expenditures on a per household basis from 2005 to the preliminary 2018 budget: Expenditures Totals Personnel:559,897 Assumptions: 1) Police drug task force officer 10/1/17 ($70k annual funding from SMSC through 2019); Police Officer 1/1/18 and Maintenance Worker 7/1/18, 2) COLA increase and health care premiums, 3) No change in PERA, FICA, Medicare rates 4) Election Judges Current:227,647 Operating Supplies 33,990 1) Repairs at the old/original PW builidng, 2) tech small equipment replacement per CIP, 3) Quarterly town meetings Professional Services 38,657 1) Engineering consulting for Interim PW Director and development reviews, and 2) legal fees Maintenance Agreements 91,528 1) Park trails/sidewalks, 2) City cleaning contract, 3)Building HVAC Utilities 27,279 Cost increase plus additional park lighting/Ponds Training and Employee Development 18,090 1) Supervisor training and 2) additional Police training (legislative mandate) ~3k of Police training will be reimbursed Tax abatement 11,576 Versatile Vehicles Other 6,527 Capital Outlay Varies based on CIP. Prior year included building financial system module (66,941) Debt Transfer Final payment of Park Referendum in 2017/Debt service reduction (790,467) Net Decrease in 2018 Expenditure Budget (69,864) Page 7 Includes 2016 Amended Budget and 2017 Preliminary Budget Another key metric the City Council targets is to “Maintain a level of General Fund operational expenditures on a per household basis which considers the cost of inflation and community growth.” As reflected in the chart above, the preliminary 2018 operating expenditures per household continues to be less than the level which reflects the cost of inflation and growth. Debt Service Fund The City Council acknowledges that the most responsible course of action with infrastructure repair, replacement and new construction is to financially plan for development and incorporate it into the Capital Improvement Program (CIP). Transportation Plan: During this year’s CIP review, no new projects have been added to the Transportation Plan. However, the timing of projects in the 2017-2021 CIP plan have been adjusted as follows: 1. Rolling Oaks Improvement Project - The Council approved resolution 17-120 which moves this project forward to 2017 in order to take advantage of the Trillium Cove Development underway on adjacent property. 2. Street Reconstruction Projects - At the CIP public presentation on August 7, Staff recommended shifting the Duluth Avenue/TH 13 signal project from 2019 to 2018 and consider keeping the project in that year only if the state could provide $500,000 in funding assistance. The Council suggested that if we move the Duluth/TH13 project up, we should shift a different project to a future year to help balance the levy change. Based on this direction from Council, Staff has shifted the Pershing Area Improvement project from 2018 to 2019. Retirement of Market Value Debt: In 2017, the City will make the final payment on the 2005 Park Referendum debt. Page 8 Closure of Debt Service Funds: Because there are two debt service fund that can be closed (the debt has all been paid), about $40,000 can be used to reduce the debt service levy on another existing bond issue. Therefore, the 2018 debt service levy can be reduced. This reduction has been reflected in the tax levy numbers provided above. Staff will be presenting a resolution to authorize the closure of Debt Service Funds 550 and 553 at September 18 Council meeting. Maintaining the City’s existing infrastructure is expensive as evidenced by the City’s approved Transportation Plan which has over $31.9 million in projects planned over the next 5 years. Approximately half of the funding will come from a property tax levy. As a result of the City’s commitment to maintain infrastructure, annual debt service costs have increased. For 2017, the overall debt service to pay our existing debt (including debt issued in 2017) increased by approximately $514,000. The debt service levy is the total for debt issued in previous years as well as 2017. However, this increase is offset by a $790,000 reduction in our General Fund Market Value Referendum levy. This has resulted in a total debt service levy decrease (debt service + market value levy) of approximately ($277,000) or (7.6%). Revolving Equipment Fund Per the 2017-2021 CIP, the Revolving Equipment Fund is scheduled to receive a $175,000 increase from $375,000 to $550,000 in 2018. Additional increases are planned 2019 at which point the City plans to levy annually $600,000. This amount is necessary based upon staff’s projections for the replacement and/or refurbishment of existing equipment and the purchase of new equipment. Even with this increased level of contribution, issuing equipment certificates will be necessary to finance large equipment purchases (i.e. fire trucks). To minimize the levy increase, staff has reduced the revolving equipment fund levy by $50,000 to $500,000 rather than $550,000. This will result in a delay in scheduled replacement or refurbishment of equipment, and may result in an increase in equipment repair& maintenance costs. Revolving Park Equipment Fund Existing park capital improvements are planned and budgeted for in the Revolving Park Equipment Fund. Per the 2017-2021 CIP, the Revolving Park Equipment Fund is scheduled to receive a tax levy of approximately $368,000. To minimize the levy increase, staff has reduced the revolving park equipment fund levy by $130,000. For the past several years, the budget for trail maintenance has been cut by $100,000-$130,000 per year. The following four trails are in desperate need for repair; 1) Wilds Parkway, 2) Five Hawks, 3) Fairway Heights and 4) Lakefront Park. The reduction in funding will result in a delay in completing necessary sidewalk/trail repairs, and may result in temporary closure of trails due to safety concerns. Permanent Improvement Revolving Fund The preliminary budget reflects the mill and overlay project for nineteen streets in the Willows Area. Beginning in 2018, mill and overlay projects will be accounted for in the PIR fund, not the General Fund. It is anticipated that, over time, the fund will be self-sustaining. Until we develop special assessment prepayment history, we anticipate that the City will bond or levy for a portion of the costs, and fund the remainder with prepayments of special assessments collected from prior year(s) improvements. The Page 9 preliminary budget for 2018 reflects bonding for the Willows Area mill and overlay. EDA The Prior Lake Economic Development Authority (EDA) proposed a tax levy of $155,000. The Council has recommended that the proposed levy for the EDA should be maintained at the current levy of $140,000. To achieve this, the EDA will use fund balance of approximately $5,400 to help offset proposed 2018 expenditures. At the August budget workshop, the Council indicated they would consider an update to the Comprehensive Financial Management Plan to provide additional annual funding to the EDA if the General Fund reserve amount was above an established percentage (say 47%). The funding would not be automatic, but would be reviewed by the Council based on the EDA submission of a development spending plan for council approval and direction in the expenditure of those resources. Enterprise Funds Included on Exhibit B are budget summaries of the three enterprise funds that the City operates. At the workshop on August 21 and September 5, Staff presented rate increases and debt issuance necessary to fund operations as well as capital projects identified in the Capital Improvements Plan. For example, in the approved Transportation Plan, there are $4.1 million of water projects, $2.4 million of sewer projects, and $1.4 million of water quality projects planned over the next five years. These projects are currently proposed to be funded out of fund balance. To do this, annually rate increases and/or the issuance of debt is necessary. Use of General Fund Reserves: Staff is proposing to minimize the levy impact by paying for two needed software upgrades from General Fund Reserves. The two software upgrades needed are the Laserfiche upgrade in 2017 and the Cartegraph upgrade in 2018. The City is often forced to delay system upgrades or planned technology improvements due to the inability to fund these purchases. FINANCIAL IMPACT: Fee Schedule Revisions Staff is proposing several changes to the fees listed in the Fee Schedule. A new fee is a daily admission fee for parking at Sand Point Beach. The daily admission fee is projected to generate about $20,000 and would be used to help offset the cost of our seasonal park patrol ($10,000). Fee increases of $5.00/fee are proposed for building permits and other permits/fees to help offset the technology costs we incur for annual service contracts and new technology. The fee increases would result in about $12,000 of new revenue. About $8,000 would be new building permit revenue and about $4,000 would be for all other permits/fees combined. If approved, the total increased revenues would amount to about $32,000 Other fee revisions of 10% (as outlined in the 2017-2021 CIP) are included for trunk and connection charges for a third year to make up for increased inflationary costs which have not been reflected in our development fees. These fees are commonly adjusted on an annual basis. As noted above, modest rate increases are also proposed for the Water, Sewer and Storm Water. Page 10 The city has received police funding assistance each year from the SMSC. The current agreement is in its last year. We are hopeful for an increase for the next two years. We should know the amount soon. In the meantime, the preliminary 2018 budget reflects the present $440,000 gift. Detailed staff recommendation will be presented to the Council at the budget workshop on November 6. ISSUES: Service Delivery Challenges: The implications of the city’s service delivery challenges are noted above. Staff strives to maintain the city’s existing streets, parks, building and other resources in the face of our funding constraints. Union contract negotiations and health plan premium rates for 2018 are still pending. We anticipate negotiations will begin in October. ALTERNATIVES: 1. Approve resolution adopting preliminary budgets and setting maximum levies as set forth in the resolution. 2. Approve the resolution modified to adjust certain expenditures and the programs they support. 3. Take no action and establish last year’s levy as this year’s maximum. RECOMMENDED MOTION: ATTACHMENTS: Alternative #1 1) September 18, 2017 Council Resolution – 2018 Preliminary Budget and Tax Levy; 2) Exhibit “A” – Budget Overview 3) Exhibit “B” – Revenue and Expenditure Summaries 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION ADOPTING PROPOSED 2018 CITY BUDGETS AND CERTIFYING PRELIMINARY 2018 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION Motion By: Second By: WHEREAS, State statute requires that the Prior Lake City Council certify a proposed property tax levy to the Scott County Department of Taxation; and WHEREAS, Preliminary budget amounts for the City of Prior Lake for calendar year 2018 are estimated as follows; and General Fund $ 12,799,804 Debt Service Funds 4,896,000 Cable Fund 80,000 Capital Park Fund 3,700 Revolving Equipment Fund 1,394,027 Revolving Park Equipment Fund 238,184 Permanent Improvement Revolving Fund 725,374 Facilities Management Fund 873,704 EDA 154,277 Water Fund 6,670,574 Sewer Fund 4,750,269 Water Quality Fund 999,621 Total $ 33,585,534 WHEREAS, The proposed property tax levy for the City of Prior Lake for payable year 2018 is as follows; and General Purposes $ 7,863,218 Revolving Equipment Fund 500,000 Revolving Park Equipment Fund 238,184 EDA 140,000 Debt Service 3,370,172 Total $ 12,111,574 WHEREAS, The proposed property tax levy by tax base for the City of Prior Lake for payable year 2018 is as follows; and Tax Capacity Based Levy $ 11,884,022 Market Value Based Referenda Levy 227,552 Total $ 12,111,574 WHEREAS, The proposed City of Prior Lake property tax levy for the year payable 2018 represents a $543,419 or 4.70% increase in total tax levy (including the Economic Development Authority levy); and The City Council will consider the 2018 General Fund, Debt Service Funds, Cable Fund, Capital Park Fund, Revolving Equipment Fund, Revolving Park Equipment Fund, Permanent Improvement Revolving Fund, Facilities Management Fund, EDA Special Revenue Fund and Enterprise Fund Budgets and the Final 2018 Property Tax Levy during its regularly scheduled council meeting at 7:00 p.m. on Monday December 4, 2017 at 4646 Dakota Street SE, Prior Lake with a continuation (if necessary) at 7:00 p.m. on December 18, 2017. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. That the proposed tax levy be distributed upon the taxable property in said City for the following purposes in payable 2018: 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. Purpose Amount Amount * General City Purposes $ 7,863,218 * Revolving Equipment Fund 500,000 * Revolving Park Equipment Fund 238,184 * EDA 140,000 Debt Service: * F555-G.O. Imp Bonds ‘08 (Brooksville Hills I) $85,000 * F556-G.O. Imp Bonds ’09 (Brooksville Hills II) 159,000 * F557-G.O. Imp Bonds 2010 (CR12) 72,155 * F558-G.O. Imp Bonds 2011A (Boudin I/Arcadia ROW) 152,000 * F559-G.O. Imp Bonds 2011B (Boudins II/Arcadia) 201,000 * F317-G.O. CIP Refunding Bonds 2012A 637,258 * F560-G.O. Imp Bonds 2013A (Welcome, CR12, Sunset) 175,000 * F561-G.O. Imp Bonds 2014A (Maplewood, Crest, Carriage) 244,000 * F562-Guaranteed Energy Savings Program 300,614 * F564-G.O. Imp Bonds 2015B (150th/13) 587,823 * F565, 566, 567-G.O. Imp Bonds 2016A (Manitou) 78,305 * F566-G.O. Imp Bonds 2016A (150th/13) 43,470 * F567-G.O. Imp Bonds 2016A (Equipment) 65,205 * F568-G.O. Imp Bonds 2017A (Cates, Balsam, Franklin, Sycamore) 340,138 * F569-G.O. Imp Bonds 2017A (Mill and Overlay) 1,652 ** F318-Fire Station #2 Referendum Bonds ‘06 227,552 Total Debt Service 3,370,172 Total $ 12,111,574 PASSED AND ADOPTED THIS 18th DAY OF SEPTEMBER, 2017. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager City of Prior Lake Council Meeting 09.18.2017 2018 Preliminary Budget Budgeted Funds Debt Capital Revolving Revolving Park Permanent Facilities Total Total General Service Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted Fund Funds Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds Funds Revenues / Sources Property Taxes Levy - Tax Capacity 7,863,218$ 3,142,620$ -$ -$ 500,000$ 238,184$ -$ 140,000$ 11,884,022$ -$ -$ -$ -$ 11,884,022$ Levy - Market Value 227,552 - - - - - - 227,552 - - - - 227,552 Special Assessments - 586,355 - - - 83,314 - - 669,669 - - - - 669,669 Licenses & Permits 607,798 - - - - - - 607,798 - - - - 607,798 Fines & Forfeits - - - - - - - - - - - - - Intergovernmental 1,623,986 - - - 30,000 - - 1,653,986 - - - - 1,653,986 Charges for Services 1,702,315 - 32,000 429,000 - - 6,200 2,169,515 4,075,174 3,453,940 916,326 8,445,440 10,614,955 Other Revenues 312,945 30,491 - 17,000 18,000 4,700 1,538 5,400 2,700 392,774 35,900 18,500 12,000 66,400 459,174 Bond Proceeds - - - - 665,000 600,000 620,000 - 1,885,000 1,180,000 1,400,000 .2,580,000 4,465,000 Lease Proceeds - - - - - - - - - - Transfers From Other Funds General Fund - 227,552 - - - - - 227,552 - - - - 227,552 Water Fund 190,500 537,304 - - 70,000 47,741 - 845,545 - - - - 845,545 Sewer Fund 190,500 - - - 70,000 10,609 - 271,109 - - - - 271,109 Water Quality Fund 62,000 - - - 15,000 - - 77,000 - - - - 77,000 Trunk Reserve Fund - 1,500,000 1,500,000 1,500,000 TIF Fund - 30,135 - - - - - 30,135 - - - - 30,135 PIR Fund 75,374 75,374 75,374 Facilities Management Fund - - - - - - - - - - - - - Capital Park Fund - - Total Revenues / Sources 12,780,814$ 4,629,831$ 32,000$ 446,000$ 1,368,000$ 242,884$ 684,852$ 683,750$ 148,900$ 21,017,031$ 6,791,074$ 4,872,440$ 928,326$ 12,591,840$ 33,608,871$ Expenditures / Uses Employee Services 8,887,206$ -$ -$ -$ -$ -$ -$ 120,277$ 9,007,483$ 743,915$ 716,204$ 286,917$ 1,747,036$ 10,754,519$ Current Expenditures 3,640,596 - - 3,700 - - 650,000 - 34,000 4,328,296 1,321,634 1,851,659 246,099 3,419,392 7,747,688 Capital Outlay 44,450 - 80,000 - 1,394,027 238,184 - 1,756,661 106,090 81,297 110,000 297,387 2,054,048 Capital Improvements - - - - - - 873,704 - 873,704 3,653,390 1,830,000 279,605 5,762,995 6,636,699 Subtotal 12,572,252$ -$ 80,000$ 3,700$ 1,394,027$ 238,184$ 650,000$ 873,704$ 154,277$ 15,966,144$ 5,825,029$ 4,479,160$ 922,621$ 11,226,810$ 27,192,954$ Transfers To Other Funds General Fund -$ -$ -$ -$ -$ -$ -$ -$ 190,500$ 190,500$ 62,000$ 443,000$ 443,000$ Treatment Plant (Debt)- - - - - - - - 537,304 - - 537,304 537,304 Equipment Fund - - - - - - - - 70,000 70,000 15,000 155,000 155,000 Park Equipment Fund - - - - - - - - - - - - - Debt Service Funds 227,552 - - - - 75,374 - - 302,926 - - - - 302,926 PIR Fund - - Facilities Management Fund - - - - - - - - 47,741 10,609 - 58,350 58,350 EDA Fund - - - - - - - - - - - - - Contingency - - - - - - - - - - - - - Debt Service 4,896,000 - - - - - 4,896,000 - - - - 4,896,000 Subtotal 227,552$ 4,896,000$ -$ -$ -$ -$ 75,374$ -$ -$ 5,198,926$ 845,545$ 271,109$ 77,000$ 1,193,654$ 6,392,580$ Total Expenditures / Uses 12,799,804$ 4,896,000$ 80,000$ 3,700$ 1,394,027$ 238,184$ 725,374$ 873,704$ 154,277$ 21,165,070$ 6,670,574$ 4,750,269$ 999,621$ 12,420,464$ 33,585,534$ Change in Fund Balance (18,990)$ (266,169)$ (48,000)$ 442,300$ (26,027)$ 4,700$ (40,522)$ (189,954)$ (5,377)$ (148,039)$ 120,500$ 122,171$ (71,295)$ 171,376$ 23,337$ 1 of 2 2018 Property Tax Levy Comparison Council Meeting 09.18.2017 Change 17 - 18 Property Taxes 2017 2018 Amount Percent Levy - Tax Capacity General Fund - Operating 7,192,793$ 7,863,218$ 670,425$ 9.32% Debt Service Funds 2,628,937 3,142,620 513,683 19.54% Revolving Equipment Fund 375,000 500,000 125,000 33.33% Revolving Park Equipment Fund 213,406 238,184 24,778 11.61% Facilities Management Fund - - - n/a 10,410,136$ 11,744,022$ 1,333,886$ 12.81% Levy - Market Value - General Fund 1,018,019 227,552 (790,467) -77.65% Levy - Economic Dev Authority 140,000 140,000 - 0.00% Total Levy 11,568,155$ 12,111,574$ 543,419$ 4.70% 2018 Budget Expenditure Comparisons (2017 Original Budgets) Capital Revolving Revolving Park Permanent Facilities Total Total General Debt Service Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted Fund Funds Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds Funds 2018 Total Expenditures / Uses 12,799,804$ 4,896,000$ 80,000$ 3,700$ 1,394,027$ 238,184$ 725,374$ 873,704$ 154,277$ 21,165,070$ 6,670,574$ 4,750,269$ 999,621$ 12,420,464$ 33,585,534$ 2017 Total Expenditures / Uses 13,070,878$ 5,019,318$ 11,250$ -$ 872,704$ 223,406$ -$ 232,140$ 160,825$ 19,590,521$ 6,025,897$ 4,461,398$ 1,388,206$ 11,875,501$ 31,466,022$ Change 2017 to 2018 ($)(271,074)$ (123,318)$ 68,750$ 3,700$ 521,323$ 14,778$ 725,374$ 641,564$ (6,548)$ 1,574,549$ 644,677$ 288,871$ (388,585)$ 544,963$ 2,119,512$ Change 2017 to 2018 (%)-2.07%-2.46%611.11%n/a 59.74%6.61%n/a 276.37%-4.07%8.04%10.70%6.47%-27.99%4.59%6.74% 2018 Budget Expenditure Comparisons (2017 Amended Budgets) Capital Revolving Revolving Park Permanent Facilities Total Total General Debt Service Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted Fund Funds Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds Funds 2018 Total Expenditures / Uses 12,799,804$ 4,896,000$ 80,000$ 3,700$ 1,394,027$ 238,184$ 725,374$ 873,704$ 154,277$ 21,165,070$ 6,670,574$ 4,750,269$ 999,621$ 12,420,464$ 33,585,534$ 2017 Total Expenditures / Uses 12,869,668$ 5,019,494$ 11,250$ -$ 872,704$ 308,736$ -$ 852,140$ 160,825$ 20,094,817$ 6,043,932$ 4,479,433$ 1,388,206$ 11,911,571$ 32,006,388$ Change 2017 to 2018 ($)(69,864)$ (123,494)$ 68,750$ 3,700$ 521,323$ (70,552)$ 725,374$ 21,564$ (6,548)$ 1,070,253$ 626,642$ 270,836$ (388,585)$ 508,893$ 1,579,146$ Change 2017 to 2018 (%)-0.54%-2.46%611.11%n/a 59.74%n/a n/a 2.53%-4.07%5.33%10.37%6.05%-27.99%4.27%4.93% 2 of 2 2015 2016 2017 2017 2018 2018 2018 BUDGET ACTIVITY ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE Fund 101 - GENERAL FUND Taxes 8,087,428 8,271,183 8,210,812 8,210,812 8,090,770 (120,042) (1.46) Charges for Services 1,538,535 1,714,605 1,776,311 1,776,311 1,702,315 (73,996) (4.17) Licenses and Permits 587,464 751,824 583,220 583,220 607,798 24,578 4.21 Intergovernmental 1,573,865 1,581,752 1,542,735 1,542,735 1,623,986 81,251 5.27 Fines and Forfeitures 1,390 4,743 Miscellaneous Revenues 384,500 260,124 177,800 177,800 312,945 135,145 76.01 Sale of assets 7,130 10,129 Transfers in 355,520 362,640 430,000 430,000 443,000 13,000 3.02 Debt Issued 300,000 TOTAL REVENUES - FUND 101 12,535,832 12,957,000 13,020,878 12,720,878 12,780,814 59,936 0.47 DEBT SERVICE FUNDS Taxes 1,876,204 2,350,538 2,628,937 2,628,937 3,142,620 513,683 19.54 Miscellaneous Revenues 1,241,923 942,356 497,634 497,634 616,846 119,212 23.96 Transfers in 1,794,299 1,946,309 1,613,635 1,613,635 870,365 (743,270) (46.06) Debt issued 5,529,906 1,656,085 TOTAL REVENUES - DEBT SERVICE FUNDS 10,442,332 6,895,288 4,740,206 4,740,206 4,629,831 (110,375) (2.33) Fund 210 - CABLE FRANCHISE FUND Charges for Services 5,133 51,050 37,133 37,133 32,000 (5,133) (13.82) TOTAL REVENUES - FUND 210 5,133 51,050 37,133 37,133 32,000 (5,133) (13.82) Fund 225 - CAPITAL PARK FUND Charges for Services 47,910 814,100 429,000 429,000 429,000 Miscellaneous Revenues 15,659 14,654 9,000 9,000 17,000 8,000 88.89 TOTAL REVENUES - FUND 225 63,569 828,754 438,000 438,000 446,000 8,000 1.83 Fund 240 - EDA SPECIAL REVENUE FUND Taxes 158,731 155,069 140,000 140,000 140,000 Charges for Services 7,438 6,340 8,500 8,500 6,200 (2,300) (27.06) Intergovernmental 17,165 7,278 Miscellaneous Revenues 2,994 1,898 2,500 2,500 2,700 200 8.00 TOTAL REVENUES - FUND 240 186,328 170,585 151,000 151,000 148,900 (2,100) (1.39) BUDGET REPORT City of Prior Lake Revenues From Amended Budget 1 of 6 2015 2016 2017 2017 2018 2018 2018 BUDGET ACTIVITY ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Revenues From Amended Budget Fund 410 - REVOLVING EQUIPMENT FUND Taxes 250,033 326,039 375,000 375,000 500,000 125,000 33.33 Intergovernmental 30,000 30,000 Miscellaneous Revenues 21,391 12,037 10,594 10,594 6,000 (4,594) (43.36) Sale of assets 6,240 Other 101,097 12,000 12,000 Transfers in 141,000 141,000 341,000 341,000 155,000 (186,000) (54.55) Debt Issued 410,000 665,000 665,000 TOTAL REVENUES - FUND 410 519,761 889,076 726,594 726,594 1,368,000 641,406 88.28 Fund 430 - REVOLVING PARK EQUIP FUND Taxes 213,406 213,406 238,184 24,778 11.61 Miscellaneous Revenues 7,896 5,981 6,000 6,000 4,700 (1,300) (21.67) TOTAL REVENUES - FUND 430 7,896 5,981 219,406 219,406 242,884 23,478 10.70 Fund 440 - FACILITIES MANAGEMENT FUND Miscellaneous Revenues 13,672 10,024 5,000 5,000 5,400 400 8.00 Transfers in 50,000 55,000 56,650 56,650 58,350 1,700 3.00 Debt Issued 620,000 620,000 620,000 TOTAL REVENUES - FUND 440 63,672 65,024 681,650 681,650 683,750 2,100 0.31 Fund 450 - Permanent Improvement Revolving Fund Miscellaneous Revenues 84,852 84,852 Debt Issued 600,000 600,000 TOTAL REVENUES - FUND 450 684,852 684,852 2 of 6 2015 2016 2017 2017 2018 2018 2018 BUDGET ACTIVITY ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Revenues From Amended Budget Fund 601 - WATER FUND Charges for Services 4,507,934 6,227,472 4,116,196 4,116,196 4,075,174 (41,022) (1.00) Intergovernmental 13,333 Miscellaneous Revenues 72,792 45,319 40,000 40,000 35,900 (4,100) (10.25) Transfers in 24,871 250,000 250,000 1,500,000 1,250,000 500.00 Debt Issued 850,000 850,000 1,180,000 330,000 38.82 TOTAL REVENUES - FUND 601 4,580,726 6,310,995 5,256,196 5,256,196 6,791,074 1,534,878 29.20 Fund 602 - STORM WATER UTILITY Charges for Services 1,130,935 982,389 876,921 876,921 916,326 39,405 4.49 Intergovernmental 42,402 34,790 34,790 (34,790) (100.00) Miscellaneous Revenues 9,966 11,464 8,080 8,080 12,000 3,920 48.51 TOTAL REVENUES - FUND 602 1,183,303 993,853 919,791 919,791 928,326 8,535 0.93 Fund 604 - SEWER FUND Charges for Services 3,103,951 4,486,789 3,109,530 3,109,530 3,453,940 344,410 11.08 Intergovernmental 57,280 Miscellaneous Revenues 34,017 25,839 22,810 22,810 18,500 (4,310) (18.90) Transfers in 92,312 Debt Issued 850,000 850,000 1,400,000 550,000 64.71 TOTAL REVENUES - FUND 604 3,137,968 4,662,220 3,982,340 3,982,340 4,872,440 890,100 22.35 TOTAL REVENUES - ALL FUNDS 32,726,520 33,829,826 30,173,194 29,873,194 33,608,871 3,735,677 12.51 2018 2018 PROPOSED PROPOSED AMT CHANGE % CHANGE 3,435,677 11.39 From Original Budget 3 of 6 2015 2016 2017 2017 2018 2018 2018 ACTIVITY ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE Fund 101 - GENERAL FUND 41110.00 MAYOR & COUNCIL 58,532 57,181 58,193 58,193 58,196 3 0.01 41130.00 ORDINANCE 6,952 7,329 7,500 7,500 7,500 41320.00 ADMINISTRATION 375,542 416,490 409,228 409,228 427,088 17,860 4.36 41330.00 BOARDS & COMMISSIONS 10,137 10,370 10,689 10,689 10,689 41410.00 ELECTIONS 84,750 16,982 23,984 23,984 41520.00 FINANCE 411,253 428,727 459,966 459,966 464,403 4,437 0.96 41530.00 ACCOUNTING 249 41540.00 INTERNAL AUDITING 30,748 31,733 28,150 28,150 30,700 2,550 9.06 41550.00 ASSESSING 152,155 169,608 187,250 187,250 194,700 7,450 3.98 41610.00 LEGAL 233,507 147,402 200,000 200,000 212,000 12,000 6.00 41820.00 HUMAN RESOURCES 88,935 152,007 163,605 191,625 185,462 (6,163) (3.22) 41830.00 COMMUNICATIONS 88,443 106,367 119,708 119,708 125,736 6,028 5.04 41910.00 COMMUNITY DEVELOPMENT 286,958 323,725 347,273 347,273 330,144 (17,129) (4.93) 41920.00 INFORMATION TECHNOLOGY 321,239 306,788 345,585 373,585 318,146 (55,439) (14.84) 41940.00 FACILITIES - CITY HALL 499,483 436,181 485,854 488,854 462,107 (26,747) (5.47) 42100.00 POLICE 3,351,784 3,520,535 3,730,730 3,744,730 4,179,824 435,094 11.62 42200.00 FIRE 880,918 895,149 905,149 905,149 933,051 27,902 3.08 42400.00 BUILDING INSPECTION 553,671 583,831 638,325 638,325 602,412 (35,913) (5.63) 42500.00 EMERGENCY MANAGEMENT 9,577 9,639 11,802 11,802 10,830 (972) (8.24) 42700.00 ANIMAL CONTROL 25,200 26,000 26,448 26,448 26,448 43050.00 ENGINEERING 186,264 340,643 385,272 385,272 466,854 81,582 21.18 43100.00 STREET 1,377,989 1,173,603 1,393,754 1,119,524 1,194,115 74,591 6.66 43400.00 CENTRAL GARAGE 332,454 361,288 404,554 404,554 421,534 16,980 4.20 45100.00 RECREATION 276,319 384,722 388,352 388,352 429,329 40,977 10.55 45200.00 PARKS 1,337,706 1,310,572 1,292,709 1,292,709 1,393,446 100,737 7.79 45500.00 LIBRARIES 61,437 41,291 52,763 52,763 63,554 10,791 20.45 46100.00 NATURAL RESOURCES 149 49999.00 CONTINGENT RESERVE 6,213 80000.00 Transfers to other Funds 1,036,243 1,159,226 1,018,019 1,018,019 227,552 (790,467) (77.65) TOTAL EXPENDITURES - FUND 101 12,084,409 12,417,787 13,070,878 12,869,668 12,799,804 (69,864) (0.54) DEBT SERVICE FUNDS 47000.00 DEBT SERVICE 4,426,271 5,047,352 5,019,318 5,019,494 4,896,000 (123,494) (2.46) TOTAL EXPENDITURES - DEBT SERVICE FUNDS 4,426,271 5,047,352 5,019,318 5,019,494 4,896,000 (123,494) (2.46) BUDGET REPORT City of Prior Lake Expenditures From Amended Budget 4 of 6 2015 2016 2017 2017 2018 2018 2018 ACTIVITY ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget Fund 210 - CABLE FRANCHISE FUND 41340.00 PUBLIC CABLE ACCESS 4,540 5,248 11,250 11,250 80,000 68,750 611.11 TOTAL EXPENDITURES - FUND 210 4,540 5,248 11,250 11,250 80,000 68,750 611.11 Fund 225 - CAPITAL PARK FUND 45040.00 PIKE LAKE PARK 3,346 3,712 3,700 3,700 45146.00 Eagle Creek/Brooksville Hills 95,847 45147.00 MARKLEY LAKE TRAIL 1,169 366,192 45200.00 PARKS 309,230 30,507 80000.00 Transfers to other Funds 62,356 TOTAL EXPENDITURES - FUND 225 376,101 496,258 3,700 3,700 Fund 240 - EDA SPECIAL REVENUE FUND 46500.00 ECONOMIC DEVELOPMENT 143,282 142,338 151,325 151,325 146,277 (5,048) (3.34) 46503.00 TECH VILLAGE INCUBATOR 16,278 8,831 9,500 9,500 8,000 (1,500) (15.79) TOTAL EXPENDITURES - FUND 240 159,560 151,169 160,825 160,825 154,277 (6,548) (4.07) Fund 410 - REVOLVING EQUIPMENT FUND 42100.00 POLICE 94,932 92,186 124,700 124,700 238,040 113,340 90.89 42100.06 POLICE FORFEITURES 70,422 42200.00 FIRE 107,198 441 678,770 678,770 43100.00 STREET 423,244 459,879 224,334 224,334 (224,334) (100.00) 43400.00 CENTRAL GARAGE 21,028 20,044 20,000 20,000 20,000 45200.00 PARKS 97,286 438,643 92,185 92,185 237,003 144,818 157.09 49400.00 WATER 39,318 4,635 4,635 10,094 5,459 117.78 49420.00 WATER QUALITY 89,831 210,120 210,120 49450.00 SEWER 2,500 406,850 406,850 (406,850) (100.00) 80000.00 Transfers to other Funds 148,021 TOTAL EXPENDITURES - FUND 410 945,759 1,159,214 872,704 872,704 1,394,027 521,323 59.74 Fund 430 - REVOLVING PARK EQUIP FUND 45200.00 PARKS 223,406 308,736 238,184 (70,552) (22.85) TOTAL EXPENDITURES - FUND 430 223,406 308,736 238,184 (70,552) (22.85) 5 of 6 2015 2016 2017 2017 2018 2018 2018 ACTIVITY ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget Fund 440 - FACILITIES MANAGEMENT FUND 41910.00 COMMUNITY DEVELOPMENT 827 41960.00 GESP 2,323,247 257,313 42100.00 POLICE 8,000 8,000 42200.00 FIRE 5,850 17,484 17,484 843,204 825,720 4,722.72 45100.00 RECREATION 6,642 45500.00 LIBRARIES 6,872 79,961 79,961 (79,961) (100.00) 49400.00 WATER 12,400 1,140 114,081 734,081 22,500 (711,581) (96.93) 80000.00 Transfers to other Funds 81,381 45,614 20,614 20,614 (20,614) (100.00) TOTAL EXPENDITURES - FUND 440 2,437,219 304,067 232,140 852,140 873,704 21,564 2.53 Fund 450 - PERMANENT REVOLVING IMPROVEMENT FUND 43100.00 STREET 650,000 650,000 80000.00 Transfers to other Funds 75,374 75,374 TOTAL EXPENDITURES - FUND 450 725,374 725,374 Fund 601 - WATER FUND 41520.00 FINANCE 77,488 85,361 86,977 86,977 87,312 335 0.39 49400.00 WATER 2,255,542 2,408,180 4,997,773 5,015,808 5,737,717 721,909 14.39 80000.00 Transfers to other Funds 2,279,145 1,742,896 941,147 941,147 845,545 (95,602) (10.16) TOTAL EXPENDITURES - FUND 601 4,612,175 4,236,437 6,025,897 6,043,932 6,670,574 626,642 10.37 Fund 602 - STORM WATER UTILITY 49420.00 WATER QUALITY 559,639 598,972 1,307,206 1,307,206 922,621 (384,585) (29.42) 80000.00 Transfers to other Funds 321,769 167,768 81,000 81,000 77,000 (4,000) (4.94) TOTAL EXPENDITURES - FUND 602 881,408 766,740 1,388,206 1,388,206 999,621 (388,585) (27.99) Fund 604 - SEWER FUND 41520.00 FINANCE 77,442 85,373 86,977 86,977 87,312 335 0.39 49450.00 SEWER 2,391,273 2,549,934 4,019,121 4,037,156 4,391,848 354,692 8.79 80000.00 Transfers to other Funds 1,343,820 631,004 355,300 355,300 271,109 (84,191) (23.70) TOTAL EXPENDITURES - FUND 604 3,812,535 3,266,311 4,461,398 4,479,433 4,750,269 270,836 6.05 TOTAL EXPENDITURES - ALL FUNDS 29,739,977 27,850,583 31,466,022 32,006,388 33,585,534 1,579,146 4.93 2018 2018 PROPOSED PROPOSED AMT CHANGE % CHANGE 2,119,512 6.74 From Original Budget 6 of 6