HomeMy WebLinkAbout 9A 2020 Preliminary Tax levy and Budget PresentationSeptember 16, 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 2020
Announce the time and place of the meeting
when the budget and levy will be discussed and
public input allowed
The public budget meeting will be held Dec 2
at 7:00 p.m. in the Council Chambers
2020 Preliminary Tax
Levy and Budget
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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 7:00 p.m.
Dec. 2 –Adopt Final Tax Levy and Budget
Tax Levy and Budget Schedule
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Overview –2020 Preliminary Budgets
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General Fund $14,635,111
Debt Service Funds 5,432,317
Rev. Equipment Fund 1,200,000
Facilities Mgmt Fund 114,000
PIR Fund (street overlay) 979,933
EDA 489,635
Other (Parks, Cable)355,200
Water Fund 3,402,180
Sewer Fund 3,560,641
Water Quality Fund 819,861
Total $ 30,988,878
The 2020 proposed tax levy is $13,797,737.
The total proposed tax levy change is 7.98%
This includes the EDA request for a funding
increase of $322,500 to assist with
commercial development and expansion.
For 64% of city homeowners this is a 2.4% or
lower increase in the city portion of their
property tax
2020 Proposed Tax Levy Change
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2020 Proposed Preliminary Budget & Tax Levy Change
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2.44%
5.54%
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 (tax base)
As the tax base 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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2020 Property Tax Levy Comparison
Adopted
Budget 2019
Proposed Budget
2020
TAX LEVIES
General Fund 8,146,555 8,731,199
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 13,797,737
SUMMARY OF CHANGE IN TAX LEVIES
General Fund 367,373 584,644
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 1,019,702
CURRENT YEAR TAX LEVIES ANNUAL % CHANGE
General Fund 4.7%7.18%
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%7.98%
TAX CAPACITY TAX RATE 33.020%32.852%
Annual % Change -0.06%-0.51%
MARKET VALUE TAX RATE 0.006768%0.006480%
Annual % Change -2.24%-4.25%
Bond Rating –Maintain/improve current
rating (AA+)
2019 –S&P Rating AA+
General Fund Reserves –40% to 50%
2019 Year End Estimate –47%
2020 Year End Projection –44%
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 2020
Prior Lake 7-County Metro Average Metro Pop. 10,000 - 24,999 Metro Pop. 25,000 - 49,999
*City Levy/Tax Capacity = Tax Rate
Scott County Tax Capacity Rate by City
11*City Levy/Tax Capacity = Tax Rate
City 2018 2019
Belle Plaine 84.60%78.62%
Elko New Market 46.03%46.07%
Jordan 71.62%72.77%
New Prague 61.25%57.57%
Prior Lake 33.04%33.02%
Savage 47.12%44.47%
Shakopee 37.21%34.94%
Property Tax Levy Per
Household
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General Fund Operating Expenditures
Per Household
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Service Challenges
Street infrastructure Costs
Street infrastructure fees provide funding for street
infrastructure needed for new development.
A court challenge of the statutory basis for infrastructure
development fees
Without this fee, the city is facing a funding gap to build
out the transportation system
Evaluating options for funding including consideration of
a tax levy to fund these infrastructure costs.
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Service Challenges cont’d
Staffing
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 19 vs 20 % Change 19 vs 20 % Change 19 vs 20 % Change
+15.01+%498 5%184.38$ 16.2%363.16$ 17.6%543.69$ 16.5%
+10.01-15.00%545 6%152.52$ 13.4%300.59$ 14.6%449.84$ 13.6%
+5.01-10.00%2,215 24%88.79$ 7.8%175.45$ 8.5%262.13$ 7.9%
+0.01-5.00%4,937 54%25.07$ 2.2%50.32$ 2.4%74.42$ 2.3%
No Change 13 0%(6.80)$ -0.6%(12.25)$ -0.6%(19.43)$ -0.6%
-0.01-5.00%685 8%(38.66)$ -3.4%(74.82)$ -3.6%(113.28)$ -3.4%
-5.01 - 10.00%160 2%(102.38)$ -9.0%(199.96)$ -9.7%(300.99)$ -9.1%
-10.00 - 15.00%9 0%(166.11)$ -14.6%(325.10)$ -15.8%(488.70)$ -14.8%
-15.01% +7 0%(197.97)$ -17.4%(387.67)$ -18.8%(582.55)$ -17.6%
9,069 100%
AVG MV- $349,600 $600,000 HOME $900,000 HOME
% EMV Value Range
# of
affected
Properties
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