HomeMy WebLinkAbout11 05 2018 2019 Budget and Tax Levy PresentationNovember 5, 2018
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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. –Budget Message Video
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.
This is a proposed total tax levy change of
6.65%.
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
$28,000
Residential Impact of City Portion of
Proposed Tax Levy Change
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RESIDENTIAL IMPACTS
% Net Net Net Net Net Net
of Inc/Dec Difference Inc/Dec Difference Inc/Dec Difference
Inc/Dec Total 18 vs 19 % Change 18 vs 19 % Change 18 vs 19 % Change
+15.01+%1,513 17%192.97$ 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
The city needs to generate revenue to cover our
total sewer flow metered by the Met Council
Summer sewer lock:
▪Used to determine sewer flow billed in summer
months
▪Recognizes that water used to water lawns, fill pools,
etc. will not enter the sanitary sewer system
▪Summer sewer lock = (1.5 x Average of Feb & April
water consumption)
Utility Plans –Changes
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‣Summer sewer lock (continued)
▪Residents would still receive the summer sewer lock on
their August & October utility bills (May 21-Sept 20
use)
▪This would generate revenue of $100k annually
Utility Plans
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Month Billing Cycle
Feb Nov 21 - Jan 20
Apr Jan 21 - March 20
June March 21 - May 20
Aug May 21 - July 20
Oct July 21 - Sept 20
Dec Sept 21 - Nov 20
‣The sewer rate is also impacted by the fee
charged by the Metropolitan Council to treat
the City’s sewer.
▪It is based on a rate increase and anticipated sewer
flow increase.
Utility Plans –continued
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‣Planned utility rate study in 2019
▪Review all rates
▪Consider revising the tiered water rates to include a
third tier –Goal to encourage water conservation
▪Review option for special billing district to cover
private street replacement with utility projects
Utility Plans –continued
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CIP Public Hearing 8.6.2018
2019:
Total Sewer/Wastewater Rate Change (MCES & City Combined)11%
Water rate change 3%
Stormwater rate change 5%
Utility Fees:
Current & Proposed* Rates:
2018 2019 *
Water <25000 4.67$ 4.81$
Water >25000 6.44$ 6.63$
Sewer-MCES 2.67$ 2.81$
Sewer-City 2.94$ 3.39$
Storm Water 14.34$ 15.06$
CFAC-Water 5.00$ 5.00$
CFAC-Sewer 5.00$ 5.00$
Impact of Proposed Changes –
Average User Utility Bill
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Based on 8,000 gallons / cycle
2018 2019 2020 2021 2022 2023
Costs Per Cycle:106.58$ 113.13$ 119.28$ 123.27$ 127.41$ 131.71$
$$ Change from PY 4.32$ 6.54$ 6.16$ 3.99$ 4.14$ 4.30$
% Change from PY 4.2%6.1%5.4%3.3%3.4%3.4%
Annual Costs:639.50$ 678.75$ 715.69$ 739.60$ 764.44$ 790.24$
$$ Change from PY 25.93$ 39.25$ 36.93$ 23.92$ 24.84$ 25.80$
% Change from PY 4.2%6.1%5.4%3.3%3.4%3.4%
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Any additional information needed?
Any changes the Council wants to make
prior to the December 3 Public Hearing?