HomeMy WebLinkAbout7A 2019 Final Budget and Tax Levy Report
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 3, 2018
AGENDA # 7A
PREPARED BY: FRANK BOYLES, CITY MANAGER
CATHY ERICKSON, FINANCE DIRECTOR
PRESENTED BY: CATHY ERICKSON
GOAL AREA AND
OBJECTIVE:
High-Value City Services
1. Establish financial stability for all funds.
1. Design a comprehensive funding strategy for capital needs.
2. Ensure sufficient resources and staffing to meet service
demands.
3. Attract, retain and train a high caliber workforce to ensure high-
quality services
4. Grow collaborations to provide efficient and cost-effective
services to the community.
5. Seek community engagement through a variety of
communication methods to reach all residents.
Transportation & Mobility
1. Maintain quality local street system based on a financially stable
plan that meets Overall Condition targets.
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ADOPTING 2019 PRIOR
LAKE BUDGETS AND CERTIFYING FINAL 2019 CITY OF PRIOR LAKE
PROPERTY TAX LEVIES TO SCOTT COUNTY DEPARTMENT OF
TAXATION.
DISCUSSION: Introduction
The purpose of this agenda item is to consider approval of the 2019 budgets
for the City of Prior and to determine the City’s final 2019 property tax levy for
certification to the Scott County Department of Taxation office.
A budget overview has been attached to this agenda report. It reflects
proposed amounts for the 2019 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
• Economic Development Authority
Page 2
• Water Fund
• Sewer Fund
• Water Quality Fund
The second page shows tax levy and budgetary comparisons from the 2018
adopted budget to the proposed 2019 figures. Summaries for revenues and
expenditures are also included with this report as Exhibit D. The summaries
reflect two years of actuals, current year original and amended budgets, and
the proposed 2019 budget.
History
On September 17, 2018, the City Council considered the preliminary budgets
(described above) and adopted a preliminary tax levy of $12,880,775 which
represented an increase of $803,217 (6.65%) over 2018. At that time, the
Council announced that a public budget meeting would be held on December
3 at which time the 2019 budget and levy would be discussed, and public
comments considered.
On November 5, the Council held an additional budget workshop. Staff
provided a recap of the budget and levy change as proposed on September
17. Staff also asked the Council if there was additional information needed,
or any changes to be made to the 2019 budgets prior to the December 3
public hearing. After significant discussion, the Council decided to hold off
on any proposed changes until after public comments are received at the
public hearing on December 3.
Current Circumstances
After the November 5 workshop, minor revisions have been made to the
proposed budgets. These revisions are underlined and noted in the
explanations following the proposed levy change chart below and reflected in
the attached budget reports.
Proposed Tax Levy:
The tax levy proposed for adoption on December 3 is $12,880,755 which is
an increase of $803,217 (6.65%) over 2018. The components of the
proposed tax levy change are shown in the chart below.
For over 50% of the homes in Prior Lake, this will result in a tax
increase of about 3.4% or less. This equates to an annual increase of
$37 for an average valued home of $338,100 for the city portion of
property taxes.
Use of General Fund Reserves:
The Council supported use of General Fund reserves of $216,800 to fund
several one-time expenditures for salt/ice management and fuel, severance
funding, and proposed replacement of the city’s phone system.
The use of reserves is also indicated on the chart below.
The following chart summarizes the proposed change in the property tax levy
for 2019 based on the proposed budgets for funds noted above:
Page 3
The 2019 budget and long-range Capital Improvement Plan (CIP) include
funding to accomplish the following things:
Mandatory Items:
• Wage/COLA and Benefits per Contracts ($318k)
• Department over-time pay adjustments to reflect workload and prior
years historical/actuals ($73k)
• Statutory PERA Contribution for Police/Fire for a rate change from
16.20% to 16.95% ($20k)
• Workers Compensation premium adjustment based on updated
experience modifier and proposed rate changes from the League of
MN Cities ($22k)
A typical winter season includes 16 snow events. The 2017-2018 season
had 24 snow events. The Council supported using general fund reserves
to replenish salt/ice management materials and fuel due to the additional
eight snow events that occurred.
• Salt/Ice Management replenishment due to significant 2017-2018
snow events ($60k). Tax levy of $37.4k/Use of reserves of $22.6k
• Fuel increase in unleaded and diesel prices and usage ($40k) Tax
levy of $20.8k/Use of reserves of $19.2k
• Other current expenditure increases for cost inflation, etc. ($45.4k)
comprised of Utilities-$16k, Police Lexipol - $12k, Small equipment
4.35%
1.61%
0.46%
0.23%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
12/3 Proposed Budget & Tax Levy Change
Expenditures -Technlogy Plan Costs
Personnel Net Adds
CIP -Tax Levy Components
Mandatory
CIP:
$50k Trail Replacement
$50k Equipment Replacement
$95k Street Overlay/PIR Fund
Expenditures-Technology:
$0k Phone System -(Use of Reserves $75k)
rves $45k)
$23k IT Managed Services Contract
$5k IT Network Support
Total: 6.65% $803,200
Personnel:
$80k FTE Add #1 -start February 15
$60k FTE Add #2 -start July 1
($85k) Remove City Engineer
$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)
$45.4k Current expenditure (cost
inflation/transfers)
$127k Debt Service
$10k EDA Levy
($148.4k) Offsetting Revenue
$525,200
$195,000
$55,000
$28,000
Page 4
for Central Garage and Bldg. Dept- $14k, and offsetting reduction in
tax abatement budget ($14k). Subsequent to the November 5
workshop, staff added about $16,000 in expenditures to this category
as follows:
1. $4k - Trailer rental for Lakefront Park to be used as a warming
house during the winter months. If a warming house trailer is
used instead of the Lakefront Park pavilion, then the pavilion can
be available for rental during the winter months. The estimated
pavilion rental revenue was previously added to the budget, but
the related warming house trailer expenditure was not.
2. $3k - Lakefront Days additional expenditure per Co-Sponsor
arrangement between the City and the Prior Lake Chamber of
Commerce.
3. $9k – The Council-approved upgraded Public Works Asset
Management system has a higher annual maintenance cost. The
total cost is split between the General/Water/Sewer funds. This is
the General Fund portion.
These expenditure adds totaling $16,000 are offset by a $16,000
revenue add, so the tax levy impact on the General Fund is zero.
• Debt service ($127k) for Council approved 2018 projects and bond
issue
• Offsetting revenue ($148.4k) primarily from increases in anticipated
2019 state aid and development related fees
CIP tax levy components:
• Trail replacement funding ($50k): The Revolving Park Plan proposes
an increase in the tax levy for trails of $100,000 annually until 2024
when the levy is proposed at $425,000. Each year the trail
replacement funding has been cut to zero. Based on Council
feedback, we have reduced the 2019 trail replacement funding to 50k
to begin to “catch up” on the deferred trail replacement.
• Equipment replacement funding ($50k): The Equipment
Replacement Plan proposes an annual tax levy increase of $50k in
2019 to get to our annual funding of $600k. As mentioned above, the
proposed increase in the equipment levy presented at the August 20
workshop was $25,000. At the September 4 CIP workshop, Council
provided staff with direction to add $25,000 to the equipment levy but
reduce General Fund net expenditures by an equal amount.
• Street Overlay funding ($95k): The plan reflects four miles of street
overlay annually. We anticipate that the City will bond for the special
assessment portion of the cost and fund the remainder with
prepayments of special assessments collected from prior year(s)
improvements and an annual tax levy. The fund will be reviewed
annually, to monitor cash flow and determine the tax levy needed.
The 2019 project currently includes Pike Lake Trail from CSAH 42 to
Carriage Hills Parkway and streets in the Wilds neighborhood. A
feasibility report will be completed this fall.
Personnel: Based on Council feedback staff has adjusted the personnel
plan as follows:
• Added a full-time police officer starting 2/15/2019 ($80k)
• Added a full-time city clerk starting 7/1/2019 ($60k)
Page 5
• Remove the budget for the City Engineer position. The responsibility
for Public Works and City Engineer (previously two positions) is now
staffed by one person. ($85k)
• Severance funding ($0 2019 budget impact; $100k use of reserves)
See the attached September 17 City Council Agenda Report for further detail
and support for the proposed personnel adds.
Technology Expenditures: Based on Council feedback, staff has included
the following items in the 2019 budget request:
• 12-year-old Phone System replacement ($5k 2019 budget impact;
$75k use of reserves)
• IT managed services contract: The city currently has only one IT full-
time staff person. The managed services contract would provide
cyber security and virtual helpdesk services. ($23k)
• IT network support for projects that require additional technical
resources. ($5k)
• Subsequent to the November 5 budget workshop, Staff removed
$45,000 from the 2019 budget for website redesign. Staff is
proposing to defer the website redesign project to 2020. Staff
resources will be used in 2019 to focus on implementation of our
Laserfiche upgrade and related agenda management and document
retention efficiencies. The funding source for the website redesign
was General Fund use of reserves. This reduces the planned use of
reserves by $45,000 for 2019 for a total planned use of reserves of
$216,800.
EDA:
The Prior Lake Economic Development Authority (EDA) proposed a tax levy
of $150,000 at their September meeting. This is a $10,000 levy increase as
compared to the prior year tax levy. The EDA plans to use the funds to start
building their reserve for future economic development initiatives that align
with their Council approved business plan. This philosophy is similar to that
adopted by the city council with respect to the equipment replacement fund.
City Infrastructure Maintenance:
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).
Maintaining the City’s existing infrastructure is expensive as evidenced by
the City’s approved Transportation Plan which has over $25 million in
projects planned over the next 5 years. About 40% of the funding will come
from a property tax levy. Because of the City’s commitment to maintain
infrastructure, annual debt service costs have increased. For 2019, the
overall debt service to pay our existing debt (including debt issued in 2018)
increased by approximately $127,000. The debt service levy is the total for
debt issued in previous years as well as 2018. 2018 debt service included
the following projects:
• Fire Pumper Replacement
• Fire Station #1 SCBA and Parking Lot Replacement
• 2018 Street Improvement Projects
o Franklin Area
Page 6
o Huron Area
• 2018 Street Reconstruction Projects
o Duluth Ave/TH 13
o County Wide Flashing Yellow Signal Conversion
Staff works to minimize the debt service levy changes, but we are confined
by the Scott County/MNDot transportation plan, and past decisions to put off
equipment replacements. When equipment starts to fail because of
replacement delays, we are no longer able to follow our CIP equipment
replacement plan which works to smooth the annual tax impact of equipment
replacement.
As a reminder, the 2019 budget includes purchases that have been identified
in the long-range CIP plans. The replacement purchases greater than
$100,000 are shown below. See the November 5 Budget workshop report
for further detail regarding these proposed purchases.
• Fire Tanker Truck replacement
• 9-Ton Tandem Axle
• Tractor
Enterprise Funds
Included on the Exhibit above are budget summaries of the three enterprise
funds that the City operates. At the budget workshops, 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 $3.7 million of water projects, $2.6
million of sewer projects, and $1.5 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. Council has indicated their support for pay as you go
in the utility funds, so staff is not recommending any utility fund debt issuance
for 2019. Further detail regarding the proposed rate changes is summarized
on the Official Fee Ordinance Public Hearing and Code Amendment Agenda
Report which will also be presented on December 3 as a separate public
hearing (agenda item 7B).
Conclusion
Bottom line, the following general points can be made about the 2019
proposed budget and tax levy:
Fee Description 2018 Amount Proposed 2019
Amount
Utility Billing:
Water Rate – First
25,000 gallons
$4.67/1,000
gallons
$4.81/1,000
gallons
Water Rate – Over
25,000 gallons
$6.44/1,000
gallons
$6.63/1,000
gallons
Storm Water
Charge
$14.34 (residential)
$43.02/acre
$15.06 (residential)
$45.18/acre
Met Council Sewer
Rate (MCES)
$2.67/1,000
gallons
$2.81/1,000
gallons
Sewer Rate – City $2.94/1,000
gallons
$3.39/1,000
gallons
Page 7
➢ Proposed total tax levy increase is $803,217 or 6.65%
➢ Based on the proposed levy increase, the majority of property owners
will see an increase of 3.4% or less for the city portion of property tax.
➢ Proposed 2019 total budget is $31,994,455
• -4.59% decrease from the 2018 originally adopted budget;
➢ Proposed 2019 General Fund budget is $13,604,039.
• 6.55% increase from 2018 original adopted budget;
➢ Total planned addition to reserves is $407,291;
➢ General Fund planned use of reserves totals $216,800.
FINANCIAL
IMPACT:
The following chart shows the detailed change in the property tax levy for
2019 based on the proposed budgets presented to the Council tonight.
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.”
Our base property tax levy consideration is as follows:
Growth (New
Construction)
1.7%
CPI-U (MSP) 2.0%
Debt Service* 1.1%
Base Property Tax Levy
Considerations
4.8%
*The debt service % change is already determined as the Council has approved the
2018 bond issue.
The following chart illustrates the total property tax levy on a per household
basis.
Page 8
As reflected in the chart, the preliminary 2019 total tax levy/household is
slightly higher than the level which reflects the combined annual cost of
inflation and growth. Our request of 6.65% for the property tax levy change
above the 4.8% base property tax consideration is primarily for catch up on
CIP funding for trail replacement, equipment replacement and street overlay
(1.61%), technology expenditures/mandatory PERA contribution for
Police/Fire (.17%), and additional funding for the EDA (.08%).
Historically, trail replacement, equipment replacement and street overlay
funding have been cut from the budget or reduced below the
recommendations in the CIP. We are starting to see the impact of this in our
trails, streets and equipment. A microcosm of these funding limitations has
revealed itself in the Parks Master Plan Study. The Parks Master Plan Study
shows that many of our city parks are in yellow or red condition (needs
repair). These trails cannot be repaired or replaced without funding. Staff
recommends four miles of trail replacement per year. The CIP calls for
incremental increases each year, but each year the funding is cut by the City
Council. The 2019 budget currently includes $50,000 for trail replacement
($50,000 has already been cut from the proposed budget). This will only
replace ½ miles of trail per year. The trail system has been highlighted as
one of the treasures of Prior Lake, but our maintenance investments are not
sufficient to maintain them.
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 below, the preliminary 2019 operating expenditures
per household continues to be less than the level which reflects the cost of
inflation and growth.
The following chart illustrates General Fund operating expenditures on a per
household basis from 2009 to the preliminary 2019 budget:
Page 9
Residential Impact of the City tax levy
The table below shows the estimated annual increase in the City portion of
property tax for a$338,100(average), $600,000 and $900,000 valued home.
About 21% of city homeowners had a market value increase of .01-5.00%.
For those home owners, they would see a 3.4% increase in the city portion of
their taxes. 53% of homeowners would see a 3.4% or lower increase in the
city portion of their taxes. Owners of $600,000 and $900,000 valued homes
would see 3.6% AND 3.4% respectively. The specific impacts are illustrated
below.
ISSUES: Use of General Fund Reserves:
The Council supported use of General Fund reserves of $216,800 to fund
several one-time expenditures for salt/ice management and fuel, severance
funding, and proposed replacement of the city’s phone system.
The use of general fund reserves can be a useful financing tool. It is best
used for one-time expenditures, such as severance funding.
Ongoing costs such as software upgrades and replacements should be
funded through ongoing revenues like tax levy or equipment replacement if
RESIDENTIAL IMPACTS
% Net Net Net Net Net Net
of Inc/Dec Difference Inc/Dec Difference Inc/Dec Difference
Inc/Dec Total 18 vs 19 % Change 18 vs 19 % Change 18 vs 19 % Change
+15.01+%1,513 17%192.97$ 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
Page 10
annually funded. This is an important consideration for the 2020 budget and
beyond as our yearly projected software costs are expected to be $75,000.
Funding Challenges
During the budget cycle staff and city council have discussed ongoing
funding challenges. The areas discussed include:
• Funding for equipment replacement/ additions required to deliver our
services.
• Funding for personnel in Public Works and other departments which
have been temporarily bypassed as we have sought to provide
resources to police and fire.
• Funding for transportation repair and replacement including streets,
trails and sidewalks.
• Funding for technology related equipment which maximize employee
productivity and enhance our communication capabilities.
ALTERNATIVES: 1. Conduct the public hearing and approve a Resolution Adopting 2019 Prior
Lake Budgets and Certifying the Final 2019 City of Prior Lake and
Economic Development Authority Property Tax Levy to Scott County
Department of Taxation.
2. Conduct the public hearing and defer adoption of the above resolution for
a special city council meeting.
RECOMMENDED
MOTION:
Alternative #1
ATTACHMENTS: 1) December 3, 2018 Council Resolution – 2019 Final 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 18-___
A RESOLUTION ADOPTING 2019 CITY BUDGETS AND CERTIFYING
FINAL 2019 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, The City Council hereby adopts the following budgets for the City of Prior Lake for
calendar year 2019; and
General Fund $ 13,604,039
Debt Service Funds 5,480,327
Cable Fund 17,805
Capital Park Fund 470,000
Revolving Equipment Fund 1,149,336
Revolving Park Equipment Fund 289,292
Permanent Improvement Revolving Fund 886,933
Facilities Management Fund 89,963
EDA 149,817
Water Fund 5,257,031
Sewer Fund 3,598,410
Water Quality Fund 1,001,502
Total $ 31,994,455
WHEREAS,
The property tax levy for the City of Prior Lake for payable year 2019 is as follows; and
General Purposes $ 8,249,275
Revolving Equipment Fund 600,000
Revolving Park Equipment Fund 289,292
Permanent Improvement Revolving Fund 95,000
EDA 150,000
Debt Service 3,497,188
Total $ 12,880,755
WHEREAS,
The property tax levy by tax base for the City of Prior Lake for payable year 2018 is as
follows; and
Tax Capacity Based Levy $ 12,646,337
Market Value Based Referenda Levy 234,418
Total $ 12,880,755
WHEREAS,
WHEREAS,
The proposed City of Prior Lake property tax levy for the year payable 2019 represents
a $803,217 or 6.65% increase in total tax levy (including the Economic Development
Authority levy); and
The City Council will consider the 2019 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 2019 Property Tax Levy
during its regularly scheduled council meeting at 7:00 p.m. on Monday December 3,
2018 at 4646 Dakota Street SE, Prior Lake with a continuation (if necessary) at 7:00
p.m. on December 17, 2018.
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 2019:
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 8,249,275
* Revolving Equipment Fund 600,000
* Revolving Park Equipment Fund (Park Equipment & Trail Replacement) 289,292
* Permanent Improvement Revolving Fund (Street Overlay) 95,000
* EDA 150,000
Debt Service:
* F556-G.O. Imp Bonds ’09 (Brooksville Hills II) 126,000
* F557-G.O. Imp Bonds 2010 (CR12) 114,000
* F558-G.O. Imp Bonds 2011A (Boudin I/Arcadia ROW) 132,000
* F559-G.O. Imp Bonds 2011B (Boudins II/Arcadia) 176,000
* F317-G.O. CIP Refunding Bonds 2012A 642,858
* F560-G.O. Imp Bonds 2013A (Welcome, CR12, Sunset) 184,000
* F561-G.O. Imp Bonds 2014A (Maplewood, Crest, Carriage) 198,000
* F562-Guaranteed Energy Savings Program 237,614
* F564-G.O. Imp Bonds 2015B (150th/13) 275,557
* F565, 566, 567-G.O. Imp Bonds 2016A (Manitou) 77,604
* F566-G.O. Imp Bonds 2016A (150th/13) 42,735
* F567-G.O. Imp Bonds 2016A (Equipment) 69,300
* F568-G.O. Imp Bonds 2017A (Cates, Balsam, Franklin, Sycamore) 318,644
* F569-G.O. Imp Bonds 2017A (Mill and Overlay) 2,099
* F570-G.O. Imp Bonds 2018A (Equip, CIP, Imp, Street Recon) 660,239
* F571-G.O. Imp Bonds 2018A (Mill and Overlay) 6,120
** F318-Fire Station #2 Referendum Bonds ‘06 234,418
Total Debt Service 3,497,188
Total $ 12,880,755
PASSED AND ADOPTED THIS 3rd DAY OF DECEMBER 2018.
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
City of Prior Lake Public Hearing 12.3.2018
2019 Proposed 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 8,249,275$ 3,262,770$ -$ -$ 600,000$ 289,292$ 95,000$ -$ 150,000$ 12,646,337$ -$ -$ -$ -$ 12,646,337$
Levy - Market Value 234,418 - - - - - - 234,418 - - - - 234,418
Special Assessments - 646,901 - - - 230,089 - - 876,990 - - - - 876,990
Licenses & Permits 613,118 - - - - - - 613,118 - - - - 613,118
Fines & Forfeits - - - - - - - - - - - - -
Intergovernmental 1,861,819 - - - - - - 1,861,819 - - - - 1,861,819
Charges for Services 1,692,170 - 37,133 450,000 - - 7,820 2,187,123 4,173,152 3,821,958 978,674 8,973,784 11,160,907
Other Revenues 280,139 33,703 - 48,000 19,775 7,310 4,231 4,763 3,300 401,221 37,250 18,800 11,690 67,740 468,961
Bond Proceeds - - - - 248,960 490,000 - - 738,960 - .- 738,960
Lease Proceeds - - - - - - - - - -
Transfers From Other Funds - -
General Fund - 234,769 - - - - - 234,769 - - - - 234,769
Debt Service Funds 135,000 135,000 - 135,000
Water Fund 196,220 545,275 - - 70,000 84,000 - 895,495 - - - - 895,495
Sewer Fund 196,220 - - - 70,000 10,927 - 277,147 - - - - 277,147
Water Quality Fund 63,860 - - - 20,000 - - 83,860 - - - - 83,860
Trunk Reserve Fund - 1,900,000 1,900,000 1,900,000
TIF Fund - 29,432 - - - - - 29,432 - - - - 29,432
PIR Fund 186,933 186,933 186,933
Facilities Management Fund - - - - - - - - - - - - -
Capital Park Fund - -
Police Forfeiture Fund 57,600 57,600 57,600
Total Revenues / Sources 13,387,239$ 5,074,783$ 37,133$ 498,000$ 1,086,335$ 296,602$ 819,320$ 99,690$ 161,120$ 21,460,222$ 6,110,402$ 3,840,758$ 990,364$ 10,941,524$ 32,401,746$
Expenditures / Uses
Employee Services 9,399,118$ -$ -$ -$ -$ -$ -$ 121,617$ 9,520,735$ 727,836$ 725,550$ 287,289$ 1,740,675$ 11,261,410$
Current Expenditures 3,784,952 - 2,805 - - - 700,000 - 28,200 4,515,957 1,307,674 1,930,681 245,353 3,483,708 7,999,665
Capital Outlay 85,200 - 15,000 470,000 1,149,336 289,292 - 2,008,828 142,826 81,832 224,658 2,233,486
Capital Improvements - - - - - - 89,963 - 89,963 2,000,000 400,000 385,000 2,785,000 2,874,963
Subtotal 13,269,270$ -$ 17,805$ 470,000$ 1,149,336$ 289,292$ 700,000$ 89,963$ 149,817$ 16,135,483$ 4,178,336$ 3,138,063$ 917,642$ 8,234,041$ 24,369,524$
Transfers To Other Funds
General Fund -$ -$ -$ -$ -$ -$ -$ -$ 196,220$ 196,220$ 63,860$ 456,300$ 456,300$
Treatment Plant (Debt)- - - - - - - - 545,275 - - 545,275 545,275
Equipment Fund - - - - - - - - 70,000 70,000 20,000 160,000 160,000
Park Equipment Fund - - - - - - - - - - - - -
Debt Service Funds 234,769 135,000 - - - 186,933 - - 556,702 - - - - 556,702
PIR Fund - - -
Facilities Management Fund - - - - - - - - 84,000 10,927 - 94,927 94,927
EDA Fund - - - - - - - - - - - - -
Severance Compensation Fund 100,000 100,000 100,000
Contingency - - - - - - - - - - - - -
Debt Service 5,345,327 - - - - - 5,345,327 183,200 183,200 - 366,400 5,711,727
Subtotal 334,769$ 5,480,327$ -$ -$ -$ -$ 186,933$ -$ -$ 6,002,029$ 1,078,695$ 460,347$ 83,860$ 1,622,902$ 7,624,931$
Total Expenditures / Uses 13,604,039$ 5,480,327$ 17,805$ 470,000$ 1,149,336$ 289,292$ 886,933$ 89,963$ 149,817$ 22,137,512$ 5,257,031$ 3,598,410$ 1,001,502$ 9,856,943$ 31,994,455$
Change in Fund Balance (216,800)$ (405,544)$ 19,328$ 28,000$ (63,001)$ 7,310$ (67,613)$ 9,727$ 11,303$ (677,290)$ 853,371$ 242,348$ (11,138)$ 1,084,581$ 407,291$
1 of 2
2019 Property Tax Levy Comparison Public Hearing 12.3.2018
Change 18 - 19
Property Taxes 2018 2019 Amount Percent
Levy - Tax Capacity
General Fund - Operating 7,779,182$ 8,249,275$ 470,093$ 6.04%
Debt Service Funds 3,142,620 3,262,770 120,150 3.82%
Revolving Equipment Fund 550,000 600,000 50,000 9.09%
Revolving Park Equipment Fund 238,184 289,292 51,108 21.46%
Permanent Improvement Revolving Fund - 95,000 95,000 n/a
Facilities Management Fund - - - n/a
11,709,986$ 12,496,337$ 786,351$ 6.72%
Levy - Market Value - General Fund 227,552 234,418 6,866 3.02%
Levy - Economic Dev Authority 140,000 150,000 10,000 7.14%
Total Levy 12,077,538$ 12,880,755$ 803,217$ 6.65%
-
2019 Budget Expenditure Comparisons (2018 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
2019 Total Expenditures / Uses 13,604,039$ 5,480,327$ 17,805$ 470,000$ 1,149,336$ 289,292$ 886,933$ 89,963$ 149,817$ 22,137,512$ 5,257,031$ 3,598,410$ 1,001,502$ 9,856,943$ 31,994,455$
2018 Total Expenditures / Uses 12,767,768$ 4,896,000$ 80,000$ 3,700$ 1,394,027$ 238,184$ 725,374$ 873,704$ 153,597$ 21,132,354$ 6,659,524$ 4,742,967$ 998,669$ 12,401,160$ 33,533,514$
Change 2018 to 2019 ($)836,271$ 584,327$ (62,195)$ 466,300$ (244,691)$ 51,108$ 161,559$ (783,741)$ (3,780)$ 1,005,158$ (1,402,493)$ (1,144,557)$ 2,833$ (2,544,217)$ (1,539,059)$
Change 2018 to 2019 (%)6.55%11.93%-77.74%n/a -17.55%21.46%n/a -89.70%-2.46%4.76%-21.06%-24.13%0.28%-20.52%-4.59%
2019 Budget Expenditure Comparisons (2018 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
2019 Total Expenditures / Uses 13,604,039$ 5,480,327$ 17,805$ 470,000$ 1,149,336$ 289,292$ 886,933$ 89,963$ 149,817$ 22,137,512$ 5,257,031$ 3,598,410$ 1,001,502$ 9,856,943$ 31,994,455$
2018 Total Expenditures / Uses 13,285,322$ 4,896,000$ 80,000$ 3,700$ 1,394,027$ 304,184$ 725,374$ 953,665$ 153,597$ 21,795,869$ 6,660,797$ 4,772,242$ 1,331,420$ 12,764,459$ 34,560,328$
Change 2018 to 2019 ($)318,717$ 584,327$ (62,195)$ 466,300$ (244,691)$ (14,892)$ 161,559$ (863,702)$ (3,780)$ 341,643$ (1,403,766)$ (1,173,832)$ (329,918)$ (2,907,516)$ (2,565,873)$
Change 2018 to 2019 (%)2.40%11.93%-77.74%12602.70%-17.55%-4.90%22.27%-90.57%-2.46%1.57%-21.08%-24.60%-24.78%-22.78%-7.42%
2 of 2
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
Fund 101 - GENERAL FUND
Taxes 8,158,560 8,006,734 8,006,734 8,483,693 476,959 5.96
Charges for Services 1,944,063 1,702,315 1,702,315 1,692,170 (10,145) (0.60)
Intergovernmental 1,657,988 1,675,986 1,675,986 1,861,819 185,833 11.09
Miscellaneous Revenues 348,006 312,945 312,945 280,139 (32,806) (10.48)
Sale of assets 3,640
Transfers in 430,000 443,000 443,000 456,300 13,300 3.00
Licenses and Permits 820,433 607,798 607,798 613,118 5,320 0.88
Fines and Forfeitures 2,250
TOTAL FUND 101 13,364,940 12,748,778 12,748,778 13,387,239 638,461 5.01
DEBT SERVICE FUNDS
Taxes 2,637,725 3,142,620 3,142,620 3,262,770 120,150 3.82
Miscellaneous Revenues 1,294,524 616,846 616,846 680,604 63,758 10.34
Transfers in 1,731,545 870,365 870,365 1,131,409 261,044 29.99
TOTAL DEBT SERVICE FUNDS 5,663,794 4,629,831 4,629,831 5,074,783 444,952 9.61
BUDGET REPORT
City of Prior Lake
2019 Budget
Revenues
From Amended Budget
1
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
BUDGET REPORT
City of Prior Lake
2019 Budget
Revenues
From Amended Budget
Fund 210 - CABLE FRANCHISE FUND
Charges for Services 36,815 32,000 32,000 37,133 5,133 16.04
Miscellaneous Revenues 133
TOTAL FUND 210 36,948 32,000 32,000 37,133 5,133 16.04
Fund 225 - CAPITAL PARK FUND
Charges for Services 627,808 429,000 429,000 474,000 45,000 10.49
Miscellaneous Revenues 13,020 17,000 17,000 24,000 7,000 41.18
TOTAL FUND 225 640,828 446,000 446,000 498,000 52,000 11.66
Fund 240 - EDA SPECIAL REVENUE FUND
Taxes 139,358 140,000 140,000 150,000 10,000 7.14
Charges for Services 8,293 7,820 7,820 7,820
Miscellaneous Revenues 1,523 2,700 2,700 3,300 600 22.22
Transfers in 300,000 (300,000) (100.00)
TOTAL FUND 240 149,174 150,520 450,520 161,120 (289,400) (64.24)
2
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
BUDGET REPORT
City of Prior Lake
2019 Budget
Revenues
From Amended Budget
Fund 410 - REVOLVING EQUIPMENT FUND
Taxes 375,905 550,000 550,000 600,000 50,000 9.09
Intergovernmental 30,000 30,000 (30,000) (100.00)
Miscellaneous Revenues 4,387 6,000 6,000 7,775 1,775 29.58
Transfers in 341,000 155,000 155,000 217,600 62,600 40.39
Debt Issued 665,000 665,000 248,960 (416,040) (62.56)
Other 12,000 12,000 12,000
TOTAL FUND 410 721,292 1,418,000 1,418,000 1,086,335 (331,665) (23.39)
Fund 430 - REVOLVING PARK EQUIP FUND
Taxes 214,042 238,184 238,184 289,292 51,108 21.46
Miscellaneous Revenues 3,035 4,700 4,700 7,310 2,610 55.53
Transfers in 85,330
TOTAL FUND 430 302,407 242,884 242,884 296,602 53,718 22.12
Fund 440 - FACILITIES MANAGEMENT FUND
Miscellaneous Revenues 5,146 5,400 5,400 4,763 (637) (11.80)
Transfers in 56,650 58,350 58,350 94,927 36,577 62.69
Debt Issued 370,000 620,000 620,000 (620,000) (100.00)
TOTAL FUND 440 431,796 683,750 683,750 99,690 (584,060) (85.42)
Fund 450 - PERMANENT IMPROVEMENT REVOLVING FUND
Taxes 95,000 95,000
Miscellaneous Revenues 158,364 84,852 84,852 234,320 149,468 176.15
Transfers in 120,000 148,000 (148,000) (100.00)
Debt Issued 600,000 600,000 490,000 (110,000) (18.33)
TOTAL FUND 450 278,364 684,852 832,852 819,320 (13,532) (1.62)
3
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
BUDGET REPORT
City of Prior Lake
2019 Budget
Revenues
From Amended Budget
Fund 601 - WATER FUND
Charges for Services 6,530,003 4,075,174 4,075,174 4,173,152 97,978 2.40
Intergovernmental 3,270
Miscellaneous Revenues 34,301 35,900 35,900 37,250 1,350 3.76
Transfers in 250,000 1,500,000 1,500,000 1,900,000 400,000 26.67
Debt Issued 1,180,000 1,180,000 (1,180,000) (100.00)
TOTAL FUND 601 6,817,574 6,791,074 6,791,074 6,110,402 (680,672) (10.02)
Fund 602 - STORM WATER UTILITY
Charges for Services 1,269,141 916,326 916,326 978,674 62,348 6.80
Intergovernmental 5,407 130,000 (130,000) (100.00)
Miscellaneous Revenues 8,012 12,000 12,000 11,690 (310) (2.58)
Transfers in 42,093
TOTAL FUND 602 1,324,653 928,326 1,058,326 990,364 (67,962) (6.42)
Fund 604 - SEWER FUND
Charges for Services 6,843,668 3,453,940 3,453,940 3,821,958 368,018 10.66
Miscellaneous Revenues 12,518 18,500 18,500 18,800 300 1.62
Debt Issued 1,400,000 1,400,000 (1,400,000) (100.00)
TOTAL FUND 604 6,856,186 4,872,440 4,872,440 3,840,758 (1,031,682) (21.17)
GRAND TOTAL - ALL FUNDS 36,587,956 33,628,455 34,206,455 32,401,746 (1,804,709) (5.28)
2019 2019
PROPOSED PROPOSED
AMT CHANGE % CHANGE
(1,226,709) (3.65)
From Original Budget
4
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DEPARTMENT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
Fund 101 - GENERAL FUND
41110.00 MAYOR & COUNCIL 68,444 58,196 58,196 71,866 13,670 23.49
41130.00 ORDINANCE 7,533 7,500 7,500 7,500
41320.00 ADMINISTRATION 436,766 428,305 436,970 446,935 9,965 2.28
41330.00 BOARDS & COMMISSIONS 11,227 10,689 10,689 11,765 1,076 10.07
41400.00 CITY CLERK FUNCTIONS 60,550 60,550
41410.00 ELECTIONS 23,984 23,984 (23,984) (100.00)
41520.00 FINANCE 413,278 464,052 464,052 480,310 16,258 3.50
41540.00 INTERNAL AUDITING 31,240 30,700 30,700 31,300 600 1.95
41550.00 ASSESSING 187,378 194,700 194,700 202,600 7,900 4.06
41610.00 LEGAL 217,039 212,000 212,000 200,000 (12,000) (5.66)
41820.00 HUMAN RESOURCES 193,253 184,443 202,443 188,830 (13,613) (6.72)
41830.00 COMMUNICATIONS 114,789 124,717 124,717 128,297 3,580 2.87
41910.00 COMMUNITY DEVELOPMENT 336,899 326,475 326,475 348,365 21,890 6.70
41920.00 INFORMATION TECHNOLOGY 348,954 317,145 345,036 394,650 49,614 14.38
41940.00 FACILITIES - CITY HALL 480,085 461,287 461,287 472,924 11,637 2.52
42100.00 POLICE 3,742,452 4,172,825 4,172,825 4,610,881 438,056 10.50
42200.00 FIRE 845,670 929,460 944,460 932,896 (11,564) (1.22)
42400.00 BUILDING INSPECTION 608,072 593,926 593,926 615,669 21,743 3.66
42500.00 EMERGENCY MANAGEMENT 11,246 10,830 10,830 11,935 1,105 10.20
42700.00 ANIMAL CONTROL 26,400 26,448 26,448 26,448
43050.00 ENGINEERING 379,994 466,739 463,063 373,844 (89,219) (19.27)
43100.00 STREET 1,002,598 1,175,385 1,175,385 1,226,903 51,518 4.38
43400.00 CENTRAL GARAGE 416,326 421,679 421,679 460,031 38,352 9.10
45100.00 RECREATION 390,706 427,696 427,696 416,675 (11,021) (2.58)
45200.00 PARKS 1,237,423 1,407,937 1,411,611 1,481,141 69,530 4.93
45500.00 LIBRARIES 59,420 63,098 63,098 66,955 3,857 6.11
49999.00 CONTINGENT RESERVE 5,616
80000.00 Transfers to other Funds 1,636,121 227,552 675,552 334,769 (340,783) (50.45)
TOTAL FUND 101 13,208,929 12,767,768 13,285,322 13,604,039 318,717 2.40
From Amended Budget
BUDGET REPORT
City of Prior Lake
2019 Budget
Expenditures
5
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DEPARTMENT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
From Amended Budget
BUDGET REPORT
City of Prior Lake
2019 Budget
Expenditures
DEBT SERVICE FUNDS
47000.00 DEBT SERVICE 11,978,718 4,896,000 4,896,000 5,345,327 449,327 9.18
80000.00 Transfers to other Funds 433,529 135,000 135,000
TOTAL DEBT SERVICE FUNDS 12,412,247 4,896,000 4,896,000 5,480,327 584,327 11.93
Fund 210 - CABLE FRANCHISE FUND
41340.00 PUBLIC CABLE ACCESS 57,521 80,000 80,000 17,805 (62,195) (77.74)
TOTAL FUND 210 57,521 80,000 80,000 17,805 (62,195) (77.74)
Fund 225 - CAPITAL PARK FUND
45040.00 PIKE LAKE PARK 3,700 3,700 (3,700) (100.00)
45144.00 THE ENCLAVE @ CLEARY LKPK 29,678
45146.00 Eagle Creek/Brooksville Hills 47,511
45200.00 PARKS 9,529 470,000 470,000
80000.00 Transfers to other Funds 21,052
TOTAL FUND 101 107,770 3,700 3,700 470,000 466,300 12,602.70
Fund 240 - EDA SPECIAL REVENUE FUND
46500.00 ECONOMIC DEVELOPMENT 97,162 145,777 145,777 145,467 (310) (0.21)
46503.00 TECH VILLAGE INCUBATOR 1,335 7,820 7,820 4,350 (3,470) (44.37)
TOTAL FUND 240 98,497 153,597 153,597 149,817 (3,780) (2.46)
6
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DEPARTMENT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
From Amended Budget
BUDGET REPORT
City of Prior Lake
2019 Budget
Expenditures
Fund 410 - REVOLVING EQUIPMENT FUND
42100.00 POLICE 101,657 238,040 238,040 207,824 (30,216) (12.69)
42200.00 FIRE 678,770 678,770 248,960 (429,810) (63.32)
42400.00 BUILDING INSPECTION 59,410 59,410
43100.00 STREET 211,729 422,882 422,882
43400.00 CENTRAL GARAGE 19,999 20,000 20,000 20,000
45200.00 PARKS 183,807 237,003 237,003 123,741 (113,262) (47.79)
49400.00 WATER 10,094 10,094 66,519 56,425 559.00
49420.00 WATER QUALITY 210,120 210,120 (210,120) (100.00)
49450.00 SEWER 373,178
TOTAL FUND 410 890,370 1,394,027 1,394,027 1,149,336 (244,691) (17.55)
Fund 430 - REVOLVING PARK EQUIP FUND
45200.00 PARKS 156,114 238,184 304,184 289,292 (14,892) (4.90)
TOTAL FUND 430 156,114 238,184 304,184 289,292 (14,892) (4.90)
Fund 440 - FACILITIES MANAGEMENT FUND
41940.00 FACILITIES - CITY HALL 10,690
42100.00 POLICE 21,475 8,000 8,000 (8,000) (100.00)
42200.00 FIRE 9,505 843,204 843,204 67,998 (775,206) (91.94)
43100.00 STREET (2,441)
45500.00 LIBRARIES 79,961 21,965 (57,996) (72.53)
49400.00 WATER 478,870 22,500 22,500 (22,500) (100.00)
80000.00 Transfers to other Funds 83,829
TOTAL FUND 440 601,928 873,704 953,665 89,963 (863,702) (90.57)
Fund 450 - PERMANENT IMPROVEMENT REVOLVING FUND
43100.00 STREET 650,000 650,000 700,000 50,000 7.69
80000.00 Transfers to other Funds 75,374 75,374 186,933 111,559 148.01
TOTAL FUND 450 725,374 725,374 886,933 161,559 22.27
7
Exhibit B
2017 2018 2018 2019 2019 2019
ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED
DEPARTMENT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE
From Amended Budget
BUDGET REPORT
City of Prior Lake
2019 Budget
Expenditures
Fund 601 - WATER FUND
41520.00 FINANCE 79,523 82,682 82,682 94,075 11,393 13.78
49400.00 WATER 2,541,927 5,731,297 5,732,570 4,267,461 (1,465,109) (25.56)
80000.00 Transfers to other Funds 2,151,421 845,545 845,545 895,495 49,950 5.91
TOTAL FUND 601 4,772,871 6,659,524 6,660,797 5,257,031 (1,403,766) (21.08)
Fund 602 - STORM WATER UTILITY
49420.00 WATER QUALITY 633,562 921,669 1,254,420 917,642 (336,778) (26.85)
80000.00 Transfers to other Funds 455,215 77,000 77,000 83,860 6,860 8.91
TOTAL FUND 602 1,088,777 998,669 1,331,420 1,001,502 (329,918) (24.78)
Fund 604 - SEWER FUND
41520.00 FINANCE 78,129 82,682 82,682 91,341 8,659 10.47
49450.00 SEWER 2,693,017 4,389,176 4,418,451 3,229,922 (1,188,529) (26.90)
80000.00 Transfers to other Funds 1,232,910 271,109 271,109 277,147 6,038 2.23
TOTAL FUND 604 4,004,056 4,742,967 4,772,242 3,598,410 (1,173,832) (24.60)
GRAND TOTAL - ALL FUNDS 37,399,080 33,533,514 34,560,328 31,994,455 (2,565,873) (7.42)
2019 2019
PROPOSED PROPOSED
AMT CHANGE % CHANGE
(1,539,059) (4.59)
From Original Budget
8