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HomeMy WebLinkAbout7B 2018 Budget and Tax Levy PresentationDecember 4, 2017 1 2018 Budgets Tax Supported Enterprise Funds Survey Results/Budget Objectives/Metrics Preliminary 2018 Property Values Questions Tonight’s Agenda 2 Overview –2018 Proposed Budgets 3 General Fund $12,767,768 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)475,481 Water Fund 6,659,524 Sewer Fund 4,742,967 Storm Water Fund 998,669 Total $33,533,514 4 2018 Property Tax Levy Comparison Change 17 - 18 Property Taxes 2017 2018 Amount Percent Levy - Tax Capacity General Fund - Operating 7,192,793$ 7,779,182$ 586,389$ 8.15% General Fund - Debt - n/a Debt Service Funds 2,628,937 3,142,620 513,683 19.54% Revolving Equipment Fund 375,000 550,000 175,000 46.67% Revolving Park Equipment Fund 213,406 238,184 24,778 11.61% Facilities Management Fund - - - n/a 10,410,136$ 11,709,986$ 1,299,850$ 12.49% 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$ 12,077,538$ 509,383$ 4.40% General Fund Debt Service Long Term Plans EDA General Fund Revenues $12,749,000 5 Property Tax Levy -Tax Capacity, $7,779,000 Property Tax Levy -Market Value, $228,000 Licenses & Permits, $608,000 Intergovernmental, $1,676,000 Charges for Services, $1,702,000 Other Revenues, $313,000 Transfers From Other Funds, $443,000 Rounded to the nearest 1000 Revenues: Intergovernmental Revenue-$106k $70k from SMSC* $36k from SW Metro Drug Taskforce* Building Permits/Plan Check Fees-$35k Developer Agreement Revenue -$135k City Contracted Services -$15k General Fund Proposed Budget Changes 2017 to 2018 * Partial funding from city partners for Police Drug Taskforce Officer/Community Service Officer General Fund Expenditures $12,768,000 7 General Government, $2,844,000 Public Safety, $5,733,000 Public Works, $2,064,000 Parks and Recreation, $1,899,000 Debt Transfer – $228,000 Expenditures: Personnel -$584k New staff starting January 1: •Police Officer •Police Drug Taskforce Officer* (2018 1st full yr.) •Police CSO* (part-time) •Parks Maintenance Worker COLA and health care premiums * Partial funding from city partners General Fund Proposed Budget Changes 2017 to 2018 8 Repairs & Maintenance -$92k Capital outlay ($67k) General Fund MV Levy reduced by ($790k) Final payment in 2017 Debt Service Reduction General Fund Proposed Budget Changes 2017 to 2018 (cont.) 9 Resident Survey Results: General Fund Budget and Resident Survey 10 Public safety identified as the most important aspect of “quality of life” 60% would support a property tax increase to hire more officers 83% say more police patrols would make them feel safer 96% say street repair and maintenance is an essential service 88% say the quality of park and recreation services is excellent/good compared to the taxes paid Planned use of Reserves instead of budget item: Laserfiche –$43k in 2017 Cartegraph -$19k in 2018 General Fund Reserves 11 Long Term Plans 12 Equipment Parks Equipment Facilities Street Mill & Overlay 5 Ton Dump Truck/Snow Removal Street Sweeper Resident Survey Results: Long Term Plans -2018 Major Purchases 13 97% say snow and ice removal is an essential city service 91% say the maintain the water quality of our lakes is an essential service Fire Truck Engine 9220 Fire Station SCBA Replacement and Compressor Fire Station #1 Parking Lot and Sidewalk Police squad car (for proposed staff add) Resident Survey Results: Long Term Plans -2018 Major Purchases 14 100% of respondents said police and fire services are essential city services 94% say fire services are excellent/good 2018 Budget -$154,000 Proposed Tax Levy -$140,000 Use of Fund Balance -$3k Resident Survey Results: Economic Development Authority 15 75% support continued community development 71% support the use of financial incentives to attract specific development Total Revenues -$ 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 (3%) Total Expenditures -$6.7M Reflects CIP identified in the 2017-2021 CIP Water Fund 16 * Automated Meter Reading System (AMRS)93% say high quality drinking water is an essential/very important city service Total Revenues -$ 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 (7% total increase) Total Expenditures -$4.8M Reflects CIP identified in the 2017-2021 CIP Sewer Fund 17 * Automated Meter Reading System (AMRS)96% say sanitary sewer service is an essential city service Total Revenues -$ 928k Charges for Services -$916k Proposed Rate Increase of $0.41 (3% increase) Total Expenditures -$1M Reflects CIP identified in the 2017-2021 CIP Storm Water Fund 18 91% say the maintain the water quality of our lakes is an essential service Bond Rating –Maintain/improve current rating 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 19 Scott County Tax Capacity Rate by City 20 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% City Tax Capacity Rate* 21 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* 22 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 Property Tax Levy Per Household 23 General Fund Operating Expenditures Per Household 24 Ongoing Service Challenges Winter Maintenance Transportation Projects Aging Fleet impact to operations Parks, trails and natural area maintenance Proactive Policing Technology Replacement EAB 25 EMV -$3.99B (+9.51%) Residential -$3.04B (+11.34%) New Construction -$62.07M (38.77%) TMV -$3.29B (+12.10%) Pay 2018 Preliminary Property Values 26 45% of owners will see a property tax cut $322,000 home example Resident impact of City tax levy 27 % Net Net of Inc/Dec Difference Inc/Dec Total 2017 2018 17 vs 18 % Change +15.01+%1,988 22%322,000$ 370,300$ 98.28$ 9.6% +10.01-15.00%819 9%322,000$ 362,250$ 68.79$ 6.7% +5.01-10.00%2,148 24%322,000$ 346,150$ 9.80$ 1.0% +0.01-5.00%3,621 41%322,000$ 338,100$ (19.70)$ -1.9% No Change 2 0%322,000$ 322,000$ (78.69)$ -7.7% -0.01-5.00%162 2%322,000$ 313,950$ (108.19)$ -10.6% -5.01 - 10.00%125 1%322,000$ 297,850$ (167.18)$ -16.3% -10.00 - 15.00%49 1%322,000$ 281,750$ (226.17)$ -22.1% -15.01% +4 0%322,000$ 273,700$ (255.67)$ -24.9% 8,918 100% Prior Lake CITY portion of taxes only: Tax capacity change 67.15$ MV tax change (86.85)$ Total Change (19.70)$ % EMV Value Range # of affected Properties Avg Market Value Avg Market Value 28