HomeMy WebLinkAbout7A 2020 Final Budget and Tax Levy PPTDecember 2, 2019
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2020 Budgets
Tax Supported
Enterprise Funds
Residential Impact of the 2020 tax levy
Budget Objectives/Metrics
Questions
Tonight’s Agenda
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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 Proposed Budgets
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General Fund $14,676,748
Debt Service Funds 5,432,317
Rev. Equipment Fund 1,200,000
Facilities Mgmt Fund 114,000
PIR Fund (street overlay) 979,933
EDA 453,135
Other (Parks, Cable)355,200
Water Fund 3,401,315
Sewer Fund 3,465,196
Water Quality Fund 819,692
Total $ 30,897,536
The 2020 proposed tax levy is $13,671,137.
Staff is requesting a levy increase of 6.02%
The EDA has requested an increase of
$124,750 in the EDA tax levy (.97% increase).
This has resulted in a total tax levy change
of 6.99% which is presented to the Council
tonight.
For 64% of city homeowners this is a 1.4% or
lower increase in the city portion of their
property tax
2020 Proposed Tax Levy Change
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The proposed increase in the EDA funding in the budget
is $286,000 which does not meet the EDA funding
request of $322,500. The funding is comprised of the
following:
$161,250-Transfer from the General Fund (planned use
of reserves/no tax levy impact)
$124,750-Increase in EDA tax levy (reduced by $36,250
from original request to meet City Council directed
levy target)
2020 Proposed Tax Levy Change-EDA
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330,000 sq. ft of new commercial/industrial property
in last three years.
This has added ~$120,000+ in annual property tax
payments.
This equates to almost 1% of our tax levy annually.
2020 Proposed Tax Levy Change-EDA
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Business Address New SF
Versatile Vehicles, Inc. 17136 Adelmann St. SE 58,650
Pro Service Auto Repair 16921 Panama Ave. SE 6,590
Blahnik Law Office 4617 Colorado St. SE 2,700
Universal Motors 16720 Welcome Ave. SE 15,000
Select Space Self-Storage 4400 Fountain Hills Dr. NE 92,600
Prior Lake Revival 16250 Duluth Ave. SE 12,400
SDDI Sign Systems 5702 Graystone Ct. SE 10,000
Port City Bakery 5832 Industrial Lane SE 45,000
PLate on Main 16323 Main Ave SE 3,900
Berens Bus 16765 Welcome Ave. SE 5,676
Rainbow Child Care 5565 Credit River Road SE 10,782
Iron Clad Self-Storage 17230 Adelmann St. SE 66,424
2020 Proposed Budget & Tax Levy Change-At a Glance
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Residential Impact of City Portion of
Proposed Tax Levy Change
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For a home with no change in market value, the proposed levy
increase will result in an estimated tax decrease of about 1.6% for
the city portion of property tax.
Residential Impact of City Portion of
Proposed Tax Levy Change
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RESIDENTIAL IMPACTS
% Net Net Net Net Net Net
of Inc/Dec Difference Inc/Dec Difference Inc/Dec Difference
Inc/Dec Total 19 vs 20 % Change 19 vs 20 % Change 19 vs 20 % Change
+15.01+%498 5%171.08$ 15.1%338.70$ 16.4%504.93$ 15.3%
+10.01-15.00%545 6%139.53$ 12.3%276.75$ 13.4%412.01$ 12.5%
+5.01-10.00%2,215 24%76.44$ 6.7%152.86$ 7.4%226.16$ 6.8%
+0.01-5.00%4,937 54%13.35$ 1.2%28.97$ 1.4%40.32$ 1.2%
No Change 13 0%(18.20)$ -1.6%(32.98)$ -1.6%(52.60)$ -1.6%
-0.01-5.00%685 8%(49.75)$ -4.4%(94.93)$ -4.6%(145.52)$ -4.4%
-5.01 - 10.00%160 2%(112.84)$ -9.9%(218.82)$ -10.6%(331.36)$ -10.0%
-10.00 - 15.00%9 0%(175.93)$ -15.5%(342.72)$ -16.6%(517.20)$ -15.7%
-15.01% +7 0%(207.48)$ -18.3%(404.66)$ -19.6%(610.12)$ -18.5%
9,069 100%
AVG MV- $349,600 $600,000 HOME $900,000 HOME
% EMV Value Range
# of
affected
Properties
Tax Levy Impact and Tax Rate
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The tax levy and net tax capacity affect the city tax rate.
Based on the proposed levy change of 6.99% and the growth in
net tax capacity of almost 9%, the proposed city tax rate will
be reduced to 32.52% (a 1.5% reduction in the tax rate).
City of Prior Lake City Tax Rate Calc:
2019:2020 Proposed:
$11,623,000 Net Tax Levy $12,412,960 Net Tax Levy
$35,2000,000 Net Tax Capacity $38,170.194 Net Tax Capacityequals33.02% City
Tax Rate equals 32.52% City
Tax Rate
Tax Levy Impact and Tax Rate
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The city tax rate (tax capacity)show a planned reduction in
2020 based on the tax levy proposed.
PROPERTY TAX PROJECTION SUMMARY
2019 2020
Adopted
Budget 2019
Proposed
Budget 2020
TOTAL % CHANGE IN TAX LEVIES 5.80%6.99%
TAX CAPACITY TAX RATE 33.020%32.520%
Annual % Change -0.06%-1.51%
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
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*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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Property Tax Levy Per Household –Cont’d
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Drivers of tax levy request of 6.99% above the base levy
considerations of 5.9%:
EDA funding request (.97%)
Cost inflation higher than CPI benchmark of 2.4%
▪Labor contracts –3%
▪Health Insurance premiums –13.5%
▪Statutory PERA contributions –4% (two yr. increase of 9%)
▪Salt/Ice Management Materials –9% (two yr. increase of 27%)
(This is a $70,000 increase in the budget from 2018)
General Fund Operating Expenditures
Per Household
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Historical Tax Bill Average % Change per Year
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Source: Scott County Assessor/Property & Taxation Services Manager
Average Valued Home:
Service Challenges cont’d
Staffing
Winter Maintenance
Transportation Projects
Aging Fleet impact to operations
Parks, trails and natural area maintenance
Proactive Policing
Technology Replacement
Street Infrastructure Costs
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Potential Areas to Redirect to
Equipment Funding or Reduce the
2020 Tax Levy
Legal Fees -$20,000 (.16%)
PIR Fund (Street Overlay) -$50,000 (.39%)
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