HomeMy WebLinkAbout1A Budget Workshop Report - 2020 Preliminary Budget and Tax Levy PPTSeptember 3, 2019
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May –Long Range Plan & Debt Work Session
June/July –CIP Work Sessions
Aug. 5 –Budget Work Session
Sept. 3 –Budget Work Session
Sept. 16 –Adopt Preliminary Levy and Budget
Nov. 4 –Budget Work Session
Dec. 2 –Public Budget meeting
Dec. 2 –Adopt Final Tax Levy and Budget
Tax Levy and Budget
Schedule
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Tax Supported Funds
General
Debt Service
Revolving Equipment
Revolving Park Equipment
Street Overlay/PIR Fund
Facilities
Economic Development Authority
2020 Proposed Preliminary tax levy of $13.8M
2020 Budgets
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2020 Proposed Tax Levy Change
based on Preliminary Budgets
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2.75%
5.52%
Total Proposed levy of $13,835,175
EDA additional budget request of $322,500
EDA funding changes:
▪EDA levy increase of $161,250
▪GF transfer to the EDA of $161,250
EDA Proposed Changes
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For taxes payable in 2020 there is a preliminary
increase in Gross Tax Capacity of 9%
The city’s general tax levy is spread across city
properties based on property tax capacity
As the tax base or Gross Tax Capacity increases, the
taxes are spread across a larger base.
For taxes payable in 2020 there is a preliminary
increase in Taxable Market Value of 8%
Tax Base and Tax Rate
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Tax Levy Impact and Tax Rate
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The net tax levy and net tax capacity affect the city
tax rate
Based on the preliminary 2020 tax levy, the city tax
rate would be reduced by .21%.
City of Prior Lake City Tax Rate Calc:
2019:2020 Proposed:
$11,623,000 Net Tax Levy $12,576,998 Net Tax Levy
$35,2000,000 Net Tax Capacity $38,170.194 Net Tax Capacityequals33.02% City
Tax Rate equals 32.95% City
Tax Rate
Tax Levy Impacts and Tax Rate
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The city’s Market Value Tax Rate is based on
property market value.
The MV tax levy and city market value affect the MV
tax rate.
Preliminary 2020 MV Tax Rate is decreasing 4.25%
City of Prior Lake City MV Tax Rate Calc:
2019:2020 Proposed:
$234,418 MV Tax Levy $242,057 MV Tax Levy
$3,463,715,300 Ref MV $3,735,413,000 Ref MV0.006768%equals 0.006480%equals
2020 Proposed Tax Levy
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2019 2020
Adopted
Budget 2019
Proposed Budget
2020
TAX LEVIES
General Fund 8,146,555 8,768,637
Debt Service Fund 3,497,188 3,561,288
Equip Revolving Fund 600,000 625,000
Revolving Park Equip Fund 289,292 409,000
EDA Fund 150,000 311,250
PIR (Street Overlay) Fund 95,000 130,000
Facilities Mgmt Fund - 30,000
Total Tax Levies 12,778,035 13,835,175
SUMMARY OF CHANGE IN TAX LEVIES
General Fund 367,373 622,082
Debt Service Fund 127,017 64,100
Equip Revolving Fund 50,000 25,000
Revolving Park Equip Fund 51,108 119,708
EDA Fund 10,000 161,250
PIR (Street Overlay) Fund 95,000 35,000
Facilities Mgmt Fund - 30,000
TOTAL $ CHANGE IN TAX LEVIES 700,498 1,057,140
CURRENT YEAR TAX LEVIES ANNUAL % CHANGE
General Fund 4.7%7.64%
Debt Service Fund 3.8%1.83%
Equip Revolv Fund 9.1%4.17%
Revolv Park Equip Fund 21.5%41.38%
EDA Fund 7.1%107.50%
PIR Fund 36.84%
Facilities Mgmt Fund
TOTAL % CHANGE IN TAX LEVIES 5.80%8.27%
TAX CAPACITY TAX RATE 33.020%32.950%
Annual % Change -0.06%-0.21%
MARKET VALUE TAX RATE 0.006768%0.006480%
Annual % Change -2.24%-4.25%
CFMP specifies a range between 40% and 50%
Looking forward:
2019 Planned Ending Balance -$6.9M
Reserve Calculation as a % of 2020 Proposed
Expenditures –47%
2020 Planned Ending Balance -$6.8M
Reserve Calculation as a % of 2020 Proposed
Expenditures –45%
General Fund Reserve*
10* Estimated
Historical Tax Levy Information
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The average change in the tax levy since 2010 is 3.73%
Proposed Tax Levy per Household
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General Fund Operating Expenditures
per Household
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Resident impact of City tax levy
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RESIDENTIAL IMPACTS
% Net Net Net Net Net Net
of Inc/Dec Difference Inc/Dec Difference Inc/Dec Difference
Inc/Dec Total 19 vs 20 % Change 19 vs 20 % Change 19 vs 20 % Change
+15.01+%498 5%188.31$ 16.6%370.40$ 17.9%555.15$ 16.8%
+10.01-15.00%545 6%156.36$ 13.8%307.64$ 14.9%461.02$ 14.0%
+5.01-10.00%2,215 24%92.44$ 8.1%182.14$ 8.8%272.77$ 8.3%
+0.01-5.00%4,937 54%28.53$ 2.5%56.63$ 2.7%84.51$ 2.6%
No Change 13 0%(3.42)$ -0.3%(6.12)$ -0.3%(9.62)$ -0.3%
-0.01-5.00%685 8%(35.38)$ -3.1%(68.87)$ -3.3%(103.75)$ -3.1%
-5.01 - 10.00%160 2%(99.29)$ -8.7%(194.38)$ -9.4%(292.01)$ -8.8%
-10.00 - 15.00%9 0%(163.21)$ -14.4%(319.89)$ -15.5%(480.27)$ -14.5%
-15.01% +7 0%(195.16)$ -17.2%(382.64)$ -18.5%(574.40)$ -17.4%
9,069 100%
% EMV Value Range
# of
affected
Properties
AVG MV- $349,600 $600,000 HOME $900,000 HOME
Is the city council comfortable with
submitting the maximum tax levy at 8.27%?
Council Feedback and
Direction
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