HomeMy WebLinkAbout9A 2019 Preliminary Budget and Tax Levy PresentationSeptember 17, 2019
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By September 30, the City Council must:
Adopt a preliminary budget and certify a
preliminary property tax levy for pay 2019
Announce the time and place of the
meeting when the budget and levy will be
discussed and public input allowed
2019 Preliminary Tax
Levy and Budget
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Aug. 20 –Budget Work Session
Sept 4 –CIP/Budget Work Session
Sept. 17 –Adopt Preliminary Levy and Budget
Nov. 5 –Budget Work Session
Nov. 6-8 –Virtual Town Hall Budget meeting
(tentative)
Dec. 3 –Public Budget meeting
Dec. 3 –Adopt Final Tax Levy and Budget
Tax Levy and Budget
Schedule
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Overview –2019
Preliminary Budgets
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General Fund $13,633,295
Debt Service Funds 5,480,327
Rev. Equipment Fund 1,223,951
Facilities Mgmt Fund 89,963
PIR Fund (street overlay) 886,933
Other (EDA, Parks, Cable)927,324
Water Fund 5,248,333
Sewer Fund 3,590,176
Water Quality Fund 1,001,628
Total $32,081,930
The 2019 proposed tax levy is $12,880,775.
Staff is requesting a levy increase of 6.57%
The EDA has requested an increase of
$10,000 in the EDA tax levy.
This has resulted in a total tax levy change
of 6.65% which is presented to the Council
tonight.
For 53% of city homeowners this is a 3.4% or
lower increase in the city portion of their
property tax
2019 Proposed Tax Levy Change
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2019 Proposed Preliminary Budget & Tax Levy Change
At a Glance
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4.35%
1.61%
0.46%
0.23%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
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Mandatory
CIP -All Tax Levy Components
Personnel Net Adds
Expenditures -Technlogy Plan Costs
CIP:
$50k Trail Replacement
$50k Equipment Replacement
$95k Street Overlay/PIR Fund
Expenditures-Technology:
$0k Phone System -(Use of Reserves $75k)
$0k Website redesign -(Use of Reserves $45k)
$23k IT Managed Services Contract
$5k IT Network Support
Total: 6.65% $803,150
Personnel:
$80k Police Officer-start January 1
$60k City Clerk-start July 1
$85k) Remove City Engineer funding
$0k Severance Funding (Use of reserves $100k)
Mandatory:
$318k Wage and Benefits per Contracts
$49k Police Overtime
$24k Parks, Comm Dev, Engr Overtime
$20k Statutory PERA Contrib. Police/Fire
$22k Workers Comp Insurance
$37.4k Salt/Ice Management -(Use of Reserves $22.6k)
$20.8k Fuel -(Use of Reserves $19.2k)
$29.7k Current expenditure (cost inflation/transfers)
$127k Debt Service
$10k EDA Levy
($132.7k) Offsetting Revenue
$525,150
$195,000
$55,000
$28,000
Bond Rating –Maintain/improve current
rating (AA+)
2018 –S&P Rating AA+
General Fund Reserves –40% to 50%
2017 Year End –50%
2018 Projected Year End –45-48%
Property Tax Rank –Maintain/improve
Property Taxes/HH –Growth plus inflation
General Fund Expenditures/HH –Growth plus
inflation
Budget Objectives/ Metrics
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City Tax Capacity Rate*
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25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Prior Lake 7-County Metro Average Metro Pop. 10,000 - 24,999 Metro Pop. 25,000 - 49,999
*City Levy/Tax Capacity = Tax Rate
Property Tax Levy Per
Household
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General Fund Operating Expenditures
Per Household
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Service Challenges
Winter Maintenance
Transportation Projects
Aging Fleet impact to operations
Parks, trails and natural area maintenance
Proactive Policing
Technology Replacement
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Residential Impact of City Portion of
Proposed Tax Levy Change
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RESIDENTIAL IMPACTS
% Net Net Net Net Net Net
of Inc/Dec Difference Inc/Dec Difference Inc/Dec Difference
Inc/Dec Total 18 vs 19 % Change 18 vs 19 % Change 18 vs 19 % Change
+15.01+%1,513 17%192.97$ 17.6%391.02$ 18.9%587.73$ 17.8%
+10.01-15.00%1,121 12%161.78$ 14.8%327.69$ 15.9%492.74$ 14.9%
+5.01-10.00%1,594 18%99.40$ 9.1%201.04$ 9.7%302.76$ 9.2%
+0.01-5.00%1,897 21%37.02$ 3.4%74.39$ 3.6%112.79$ 3.4%
No Change 21 0%5.83$ 0.5%11.06$ 0.5%17.80$ 0.5%
-0.01-5.00%1,469 16%(25.36)$ -2.3%(52.26)$ -2.5%(77.19)$ -2.3%
-5.01 - 10.00%808 9%(87.74)$ -8.0%(178.91)$ -8.7%(267.16)$ -8.1%
-10.00 - 15.00%363 4%(150.11)$ -13.7%(305.56)$ -14.8%(457.14)$ -13.8%
-15.01% +195 2%(181.30)$ -16.6%(368.89)$ -17.9%(552.12)$ -16.7%
8,981 100%
% EMV Value Range
# of
affected
Properties
AVG MV- $338,100 $600,000 HOME $900,000 HOME
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