HomeMy WebLinkAbout9A 2018 Preliminary Budget and Tax Levy PresentationSeptember 18, 2017
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By September 30, the City Council must:
Adopt a preliminary budget and certify a
preliminary property tax levy for pay 2018
Announce the time and place of the
meeting when the budget and levy will be
discussed and public input allowed
2018 Preliminary Tax
Levy and Budget
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Aug. 21–Budget Work Session
Sept. 18 –Adopt Preliminary Levy and Budget
Nov. 6 –Budget Work Session
Nov. 9 –Town Hall Budget meeting (tentative)
Dec. 4 –Public Budget meeting
Dec. 4 –Adopt Final Tax Levy and Budget
Tax Levy and Budget
Schedule
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Overview –2018
Preliminary Budgets
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General Fund $12,799,804
Debt Service Funds 4,896,000
Rev. Equipment Fund 1,394,027
Facilities Mgmt Fund 873,704
PIR Fund (mill & overlay) 725,374
Other (EDA, Parks, Cable)476,161
Water Fund 6,670,574
Sewer Fund 4,750,269
Water Quality Fund 999,621
Total $33,585,534
Council feedback in August indicated
support for a levy increase less than 5%
Budget revisions resulted in a tax levy
reduction of ($220k)
($55k) Debt Service
($50k) Revolving Equipment
($130k) Revolving Park Equipment
This reduced the staff levy proposal from
6.59% to 4.7%
2018 Budget Revisions
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2018 Property Tax
Levy Comparison
Property Taxes 2017 2018 Amount Percent
Levy - Tax Capacity
General Fund - Operating 7,192,793$ 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%
Personnel -$560k
Police drug task force officer -10/1/17
Police Officer –1/1/18
Maintenance Worker –7/1/18
COLA and health care premiums
Maintenance agreements -$92k
Capital outlay ($67k)
Debt Transfer ($790k)
General Fund Changes from
2017 Amended to 2018
preliminary budget
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Planned use of Reserves instead of budget
item:
Laserfiche –$43k in 2017
Cartegraph -$19k in 2018
General Fund Reserves
8
General Fund Revenues
9
Property Tax Levy
-Tax Capacity,
$7,863,218
Property Tax Levy
-Market Value,
$227,552
Licenses &
Permits,
$607,798
Intergovernmental, $1,623,986
Charges for
Services,
$1,702,315
Other Revenues,
$312,945
Transfers From
Other Funds,
$443,000
General Fund Expenditures
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Employee
Services,
$8,887,206
Current
Expenditures,
$3,640,596
Capital Outlay,
$44,450
Transfers To
Other Funds,
$227,552
2018 Budget -$160,825
Preliminary Tax Levy -$140,000
Tech Village Rent -$6,200
Use of Fund Balance -$5k
Economic
Development Authority
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Bond Rating –Maintain/improve current
rating (Aa2)
2017 –S&P Rating AA+
General Fund Reserves –40% to 50%
2016 Year End –50%
Property Tax Rank –Maintain/improve
Property Taxes/HH –Growth plus inflation
General Fund Expenditures/HH –Growth plus
inflation
Budget Objectives/ Metrics
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Scott County Tax
Capacity Rate by City
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City 2017
Belle Plaine 84.68%
Elko New Market 47.82%
Jordan 71.24%
New Prague 62.25%
Prior Lake 32.69%
Savage 47.84%
Shakopee 38.52%
Property Tax Levy Per
Household
14
General Fund Operating Expenditures
Per Household
15
Service Challenges
Winter Maintenance
Transportation Projects
Aging Fleet impact to operations
Parks, trails and natural area maintenance
Proactive Policing
Technology Replacement
EAB
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EMV -$3.99B (+9.51%)
Residential -$3.04B (+11.34%)
New Construction -$62.07M (38.77%)
TMV -$3.29B (+12.10%)
Average Value Home -$338,100 (+6.9%)
Pay 2018 Preliminary
Property Values
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Average Value Home -$338,100
Projected tax decrease of ($16.31) (-.6%)
600k home with a 5% MV increase
Projected tax decrease of ($12.90) (-.6%)
Pay 2018 Preliminary
Property Values
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Total Revenues -$4.6M
Property Tax Levy (TC and MV) -$3.4M
Special Assessments
Transfers from other Funds
Total Expenditures -$4.9M
Planned use of Reserves -$266k
Debt Service
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Total Revenues -$ 1.37M
Property Tax Levy -$500,000
Bond Proceeds -$665,000
Transfers from Enterprise Funds
Total Expenditures -$1.39M
Fire truck, Parks dump truck, squad car
replacement
Planned use of Reserves –($26k)
Revolving Equipment Fund
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Total Revenues -$ 243k
Property Tax Levy -$238k
Total Expenditures -$238k
Park replacement and park amenities
projects
Revolving Park Equip. Fund
22
Total Revenues -$ 684k
Bond Proceeds-$600,000
Special Assessments
Total Expenditures -$725k
Willows Area streets mill & overlay project
Transfer for debt service
Planned use of Reserves –($40k)
Permanent Improvement
Revolving Fund
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Total Revenues -$ 684k
Bond Proceeds -$620,000
Transfers from Enterprise Funds
Total Expenditures -$874k
Fire Station #1 SCBA Packs & Fill Station,
Parking Lot & Sidewalk
Planned use of Reserves –($190k)
Facilities Mgmt. Fund
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Total Revenues -$ 6.8M
Charges for Services -$4.1M
Bond Proceeds (AMRS Replacement) -$850,000
Bond Proceeds (Franklin Area Utility Work)-
$330,000
Proposed Rate Increase of $0.14
Total Expenditures -$6.7M
Reflects CIP identified in the 2017-2021 CIP
Water Fund
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Total Revenues -$ 4.9M
Charges for Services -$3.5M
Bond Proceeds (AMRS Replacement) -
$850,000; (Franklin Area Utility Work)-
$550,000
Proposed City rate increase of $0.25 and
MCES increase of $0.10
Total Expenditures -$4.8M
Reflects CIP identified in the 2017-2021 CIP
Sewer Fund
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Total Revenues -$ 928k
Charges for Services -$916k
Proposed Rate Increase of $0.41
Total Expenditures -$1M
Reflects CIP identified in the 2017-2021 CIP
Storm Water Fund
27
Wilds Parkway
28
Fairway Heights
29
City Tax Capacity Rate*
30
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
2010 2011 2012 2013 2014 2015 2016 2017
Prior Lake 7-County Metro Average
*City Levy/Tax Capacity = Tax Rate
Total Tax Capacity Rate*
31
90.00%
100.00%
110.00%
120.00%
130.00%
140.00%
150.00%
2010 2011 2012 2013 2014 2015 2016 2017
Prior Lake 7-County Metro Average
*City, County, School, and Special Districts