HomeMy WebLinkAbout1B Long-Range Financial Planning - Workshop 7.15.2019 PPTJuly 15, 2019
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2020 Tax Levy Impact based on Preliminary
Budgets
General Fund Reserve Impact
Five-Year Property Tax Projection
Debt and Debt Levy Impacts
Agenda
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2020 Proposed Tax Levy Considerations
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CITY OF PRIOR LAKE
PROPERTY TAX PROJECTION SUMMARY
2019 2020 2021 2022 2023 2024
2019
Budget
Planning Year Proj Year 1 Proj Year 2 Proj Year 3 Proj Year 4
PRIOR YEAR TAX LEVIES
General Fund 7,779,182 8,146,555 8,886,997 9,603,565 10,044,808 10,622,102
Debt Service Fund 3,370,171 3,497,188 3,561,284 3,877,314 4,278,270 4,601,817
Equip Revolv Fund 550,000 600,000 739,000 650,000 675,000 700,000
Revolv Park Equip Fund 238,184 289,292 409,000 375,000 418,000 449,000
EDA Fund 140,000 150,000 150,000 175,000 176,800 178,600
PIR Fund - 95,000 130,000 165,000 200,000 200,000
Facilities Mgmt Fund - - 30,000 80,000 105,000 140,000
Grand Total 12,077,537 12,778,035 13,906,281 14,925,878 15,897,878 16,891,519
SUMMARY OF CHANGE IN TAX LEVIES
GENERAL FUND 367,373 740,442 716,567 441,243 577,294 467,013
DEBT SERVICE FUNDS
Existing Debt 120,151 56,457 20,251 (23,733) (214,511) (96,115)
Proposed Debt - - 284,349 423,539 527,288 232,233
MV Debt 6,866 7,639 11,431 1,150 10,770 15,125
DEBT SERVICE FUNDS 127,017 64,096 316,030 400,956 323,547 151,243
OTHER FUNDS
Equip Revolv Fund 50,000 139,000 (89,000) 25,000 25,000 25,000
Revolv Park Equip Fund 51,108 119,708 (34,000) 43,000 31,000 50,000
EDA Fund 10,000 - 25,000 1,800 1,800 1,800
PIR Fund 95,000 35,000 35,000 35,000 - -
Facilities Mgmt Fund - 30,000 50,000 25,000 35,000 25,000
OTHER FUNDS 206,108 323,708 (13,000) 129,800 92,800 101,800
TOTAL CHANGE IN TAX LEVIES 700,498 1,128,246 1,019,597 971,999 993,641 720,056
CURRENT YEAR TAX LEVIES
General Fund 8,146,555 8,886,997 9,603,565 10,044,808 10,622,102 11,089,115
Debt Service Fund 3,497,188 3,561,284 3,877,314 4,278,270 4,601,817 4,753,060
Equip Revolv Fund 600,000 739,000 650,000 675,000 700,000 725,000
Revolv Park Equip Fund 289,292 409,000 375,000 418,000 449,000 499,000
EDA Fund 150,000 150,000 175,000 176,800 178,600 180,400
PIR Fund 95,000 130,000 165,000 200,000 200,000 200,000
Facilities Mgmt Fund - 30,000 80,000 105,000 140,000 165,000
Grand Total 12,778,035 13,906,281 14,925,878 15,897,878 16,891,519 17,611,575
CURRENT YEAR TAX LEVIES ANNUAL % CHANGE
General Fund 4.7%9.09%8.06%4.59%5.75%4.40%
Debt Service Fund 3.8%1.83%8.87%10.34%7.56%3.29%
Equip Revolv Fund 9.1%23.17%-12.04%3.85%3.70%3.57%
Revolv Park Equip Fund 21.5%41.38%-8.31%11.47%7.42%11.14%
EDA Fund 7.1%0.00%16.67%1.03%1.02%1.01%
PIR Fund 36.84%26.92%21.21%0.00%0.00%
Facilities Mgmt Fund 166.67%31.25%33.33%17.86%
Grand Total 5.80%8.83%7.33%6.51%6.25%4.26%
2019 Planned Ending Balance -$6.9M
Reserve Calculation as a % of 2020 Proposed
Expenditures –48%
The preliminary financial plan maintains the reserve
at 46% of the next year’s planned expenditures.
Budgeted add to 2020 tax levy of $130k to maintain
GF reserves.
General Fund Reserve
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5-Year Projection
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CITY OF PRIOR LAKE
PROPERTY TAX LEVY, TAX CAPACITY, AND TAX RATE
2019 2020 2021 2022 2023 2024
2019 Budget Planning
Year Proj Year 1 Proj Year 2 Proj Year 3 Proj Year 4
TAX LEVY
General Fund 8,146,555 8,886,997 9,603,565 10,044,808 10,622,102 11,089,115
Debt Service Fund 3,262,770 3,319,227 3,623,826 4,023,632 4,336,409 4,472,527
Equip Revolv Fund 600,000 739,000 650,000 675,000 700,000 725,000
Revolv Park Equip Fund 289,292 409,000 375,000 418,000 449,000 499,000
EDA Fund 150,000 150,000 175,000 176,800 178,600 180,400
PIR Fund 95,000 130,000 165,000 200,000 200,000 200,000
Facilities Mgmt Fund - 30,000 80,000 105,000 140,000 165,000
Total Levy 12,543,617 13,664,224 14,672,391 15,643,240 16,626,111 17,331,042
Annual % Change 5.85%8.93%7.38%6.62%6.28%4.24%
Fiscal Disparities Distribution 920,449 920,449 920,449 920,449 920,449 920,449
Net Tax Levy 11,623,168 12,743,775 13,751,942 14,722,791 15,705,662 16,410,593
Annual % Change 6.05%9.64%7.91%7.06%6.68%4.49%
TAX CAPACITY
Total Tax Capacity (TC) Before New Construction 37,003,207 39,509,919 41,485,415 43,144,831 44,439,176 45,772,351
TC from Projected New Construction - 886,112 720,826 737,729 711,875 607,500
Total TC with Projected New Construction 37,003,207 40,396,031 42,206,241 43,882,560 45,151,051 46,379,851
Fiscal Disparities TC Contribution 1,074,047 1,074,045 1,074,045 1,074,045 1,074,045 1,074,045
TIF TC 728,894 728,894 728,894 728,894 715,796 715,796
Net Tax Capacity (NTC)35,200,266 38,593,092 40,403,302 42,079,621 43,361,210 44,590,011
Annual % Change 6.11%9.64%4.69%4.15%3.05%2.83%
TAX CAPACITY TAX RATE 33.020%33.021%34.037%34.988%36.221%36.803%
Annual % Change -0.06%0.00%3.08%2.79%3.52%1.61%
TAX LEVY (REFERENDUM)234,418 242,057 253,488 254,638 265,408 280,533
Annual % Change 3.02%3.26%4.72%0.45%4.23%5.70%
MARKET VALUE (REFERENDUM)3,463,715,300 3,740,536,700 3,927,563,535 4,084,666,076 4,207,206,059 4,333,422,240
MARKET VALUE TAX RATE 0.006768%0.006471%0.006454%0.006234%0.006308%0.006474%
Annual % Change -2.24%-4.38%-0.26%-3.41%1.19%2.62%
5-Year Projection
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Debt Projection
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Debt Projection
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Debt Projection
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What is Council direction on proposed 2020 tax levy %
change to move forward on the budget process?
Does the Council support the following planning
assumptions:
•Maintain the 2020 tax rate equal to 2019 tax rate
•Maintain the General Fund balance at 46%
•Include debt service, and CIP funding as identified in
the five year capital improvement program
Questions/Discussion
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