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Home My WebLink About07(A) - Consider Approval of a Resolution Approving Final 2021 City Budgets and Certifying Final 2021 City of Prior Lake Property Tax Levy to Scott County Department of Taxation ReportRESOLUTION 20-148 A RESOLUTION ADOPTING THE 2021 ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2021 ECONOMIC DEVELOPMENT AUTHORITY PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION Motion By: Second By: WHEREAS, Truth in Taxation provisions as specified by state statute requires the Prior Lake City Council to certify a proposed property tax levy to the Scott County Department of Taxation; and WHEREAS, State Statute 469.107 subd. 1 provides that a city may, at the request of the Economic Development Authority, levy a tax in any year for the benefit of the authority in an amount not to exceed 0.01813 percent of taxable market value; and WHEREAS, The maximum allowable EDA property tax levy for payable year 2021 has been determined to be approximately $673,000; and WHEREAS, The Prior Lake EDA, at its regularly scheduled meeting of August 10, 2020, authorized a 2021 tax levy for economic development purposes in the amount of $349,750 and a 2021 budget of $524,672. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: The recitals set forth above are incorporated herein. A final tax levy of $349,750 and proposed budget of $524,672 are approved for payable year 2021. That the proposed Economic Development Authority tax levy be distributed upon the taxable property in said City for the purposes of economic development in payable 2021. Passed and adopted by the Prior Lake City Council this 7th day of December 2020. VOTE Briggs Thompson Burkart Braid Churchill Aye ☐☐ ☐☐ ☐Nay☐☐☐ ☐☐ Abstain☐☐☐☐☐ Absent☐ ☐☐ ☐☐ ______________________________ Jason Wedel, City Manager 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 BUDGET ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE Fund 101 - GENERAL FUND Taxes 8,367,851 8,953,156 8,953,156 9,433,959 480,803 5.37 Charges for Services 1,832,896 1,808,050 1,808,050 1,800,172 (7,878) (0.44) Intergovernmental 1,925,225 2,126,362 2,126,362 2,160,235 33,873 1.59 Miscellaneous Revenues 454,862 267,466 267,466 240,800 (26,666) (9.97) Sale of assets 9,877 - - - - Transfers in 456,300 470,000 470,000 523,000 53,000 11.28 Debt Issued - - - - - Licenses and Permits 992,096 830,464 830,464 795,551 (34,913) (4.20) Fines and Forfeitures 996 - - - - TOTALS - FUND 101 14,040,103 14,455,498 14,455,498 14,953,717 498,219 3.45 DEBT SERVICE FUNDS Transfers in 1,345,091 1,214,646 1,214,646 1,206,925 (7,721) (0.64) Taxes 3,262,773 3,319,231 3,319,231 3,121,498 (197,733) (5.96) Miscellaneous Revenues 846,835 546,395 546,395 492,776 (53,619) (9.81) Debt Issued - - - - - TOTALS - DEBT SERVICE FUNDS 5,454,699 5,080,272 5,080,272 4,821,199 (259,073) (5.10) Fund 210 - CABLE FRANCHISE FUND Charges for Services 28,901 32,000 32,000 28,000 (4,000) (12.50) Miscellaneous Revenues 2,849 - - - - TOTALS - FUND 210 31,750 32,000 32,000 28,000 (4,000) (12.50) Fund 225 - CAPITAL PARK FUND Charges for Services 309,190 531,200 531,200 455,000 (76,200) (14.34) Intergovernmental 100,000 - - - - Miscellaneous Revenues 75,157 26,800 26,800 41,297 14,497 54.09 TOTALS - FUND 225 484,347 558,000 558,000 496,297 (61,703) (11.06) BUDGET REPORT City of Prior Lake Revenues From Amended Budget 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 BUDGET ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Revenues From Amended Budget Fund 240 - EDA SPECIAL REVENUE FUND Taxes 149,698 274,750 274,750 349,750 75,000 27.30 Charges for Services 10,120 9,575 9,575 8,450 (1,125) (11.75) Intergovernmental - - - - - Miscellaneous Revenues 28,195 7,560 7,560 5,300 (2,260) (29.89) Transfers in - 161,250 161,250 - (161,250) (100.00) TOTALS - FUND 240 188,013 453,135 453,135 363,500 (89,635) (19.78) Fund 410 - REVOLVING EQUIPMENT FUND Taxes 599,619 625,000 625,000 650,000 25,000 4.00 Taxes - Debt Service - - - 185,000 185,000 Intergovernmental - - - - - Miscellaneous Revenues 39,019 19,000 19,000 9,600 (9,400) (49.47) Sale of assets 8,020 - - - - Transfers in 160,000 180,000 215,000 310,000 95,000 44.19 Debt Issued 215,000 115,000 115,000 555,000 440,000 382.61 Other Financing Sources 40,040 - - - - TOTALS - FUND 410 1,061,698 939,000 974,000 1,709,600 735,600 75.52 Fund 430 - REVOLVING PARK EQUIP FUND Taxes 289,269 319,000 319,000 375,000 56,000 17.55 Miscellaneous Revenues 31,407 9,000 9,000 10,500 1,500 16.67 Transfers in - - - - - TOTALS - FUND 430 320,676 328,000 328,000 385,500 57,500 17.53 Fund 440 - FACILITIES MANAGEMENT FUND Taxes - 30,000 30,000 80,000 50,000 166.67 Miscellaneous Revenues 17,605 9,000 9,000 5,800 (3,200) (35.56) Transfers in 94,927 99,000 99,000 130,000 31,000 31.31 Debt Issued - - - - - Other Financing Sources - - - - - TOTALS - FUND 440 112,532 138,000 138,000 215,800 77,800 56.38 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 BUDGET ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Revenues From Amended Budget Fund 450 - PERMANENT IMPROVEMENT REVOLVING FUND Taxes 94,862 80,000 80,000 120,000 40,000 50.00 Miscellaneous Revenues 381,941 311,867 311,867 180,800 (131,067) (42.03) Transfers in - - - - - Debt Issued 400,000 490,000 490,000 - (490,000) (100.00) Other Financing Sources 48,709 - - - - TOTALS - FUND 450 925,512 881,867 881,867 300,800 (581,067) (65.89) Fund 601 - WATER FUND Charges for Services 6,595,240 4,469,743 4,469,743 4,411,774 (57,969) (1.30) Intergovernmental 573 - - - - Miscellaneous Revenues 229,648 42,000 42,000 54,775 12,775 30.42 Sale of assets - - - - - Transfers in 1,873,151 - - - - Debt Issued - - - - - Other Financing Sources 16,762 - - - - TOTALS - FUND 601 8,715,374 4,511,743 4,511,743 4,466,549 (45,194) (1.00) Fund 602 - STORM WATER UTILITY Charges for Services 1,413,035 1,166,677 1,166,677 1,190,699 24,022 2.06 Intergovernmental - - - - - Miscellaneous Revenues 50,111 11,600 11,600 14,500 2,900 25.00 Transfers in 267,517 - - - - Storm Water Charges 750 - - - - TOTALS - FUND 602 1,731,413 1,178,277 1,178,277 1,205,199 26,922 2.28 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 BUDGET ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Revenues From Amended Budget Fund 604 - SEWER FUND Charges for Services 5,642,999 4,313,330 4,313,330 4,317,042 3,712 0.09 Intergovernmental - - - - - Miscellaneous Revenues 66,981 21,000 21,000 19,800 (1,200) (5.71) Sale of assets - - - - - Transfers in 306,280 - - - - Debt Issued - - - - - Other Financing Sources 16,762 - - - - TOTALS - FUND 604 6,033,022 4,334,330 4,334,330 4,336,842 2,512 0.06 TOTALS - ALL FUNDS 39,099,139 32,890,122 32,925,122 33,283,003 357,881 1.09 392,881 1.19 From Original Budget 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE Fund 101 - GENERAL FUND 41110.00 MAYOR & COUNCIL 70,144 75,507 75,507 74,934 (573) (0.76) 41130.00 ORDINANCE 4,025 7,500 7,500 6,000 (1,500) (20.00) 41320.00 ADMINISTRATION 528,999 340,473 340,473 270,152 (70,321) (20.65) 41330.00 BOARDS & COMMISSIONS 8,719 11,765 11,765 11,365 (400) (3.40) 41400.00 CITY CLERK FUNCTIONS 83,980 116,283 116,283 122,272 5,989 5.15 41410.00 ELECTIONS - 34,231 34,231 7,000 (27,231) (79.55) 41520.00 FINANCE 480,575 520,572 523,612 565,250 41,638 7.95 41530.00 ACCOUNTING - - - - - 41540.00 INTERNAL AUDITING 37,564 35,475 35,475 41,200 5,725 16.14 41550.00 ASSESSING 202,418 218,704 218,704 224,260 5,556 2.54 41610.00 LEGAL 152,275 180,000 180,000 180,000 - - 41820.00 HUMAN RESOURCES 187,118 306,890 306,890 316,074 9,184 2.99 41830.00 COMMUNICATIONS 126,561 180,331 180,331 162,070 (18,261) (10.13) 41910.00 COMMUNITY DEVELOPMENT 328,190 379,921 379,921 379,924 3 0.00 41920.00 INFORMATION TECHNOLOGY 402,444 438,494 467,224 385,116 (82,108) (17.57) 41940.00 FACILITIES - CITY HALL 468,972 505,598 455,597 524,030 68,433 15.02 42100.00 POLICE 4,505,682 4,848,910 4,855,232 5,303,369 448,137 9.23 42200.00 FIRE 944,350 1,038,440 1,038,440 1,076,350 37,910 3.65 42400.00 BUILDING INSPECTION 594,466 604,313 676,314 730,801 54,487 8.06 42500.00 EMERGENCY MANAGEMENT 9,947 14,875 14,875 15,090 215 1.45 42700.00 ANIMAL CONTROL 28,200 28,800 28,800 28,800 - - 43050.00 ENGINEERING 348,296 379,090 379,090 389,105 10,015 2.64 43100.00 STREET 1,200,528 1,338,286 1,353,686 1,365,438 11,752 0.87 43400.00 CENTRAL GARAGE 412,844 483,069 483,069 491,373 8,304 1.72 45100.00 RECREATION 433,568 474,059 474,059 481,813 7,754 1.64 45200.00 PARKS 1,393,649 1,623,071 1,671,041 1,604,132 (66,909) (4.00) 45500.00 LIBRARIES 62,047 69,073 69,073 68,224 (849) (1.23) 46100.00 NATURAL RESOURCES - - - - - 49999.00 CONTINGENT RESERVE - - - - - 80000.00 Transfers to other Funds 334,769 403,018 438,018 253,575 (184,443) (42.11) TOTALS - FUND 101 13,350,330 14,656,748 14,815,210 15,077,717 262,507 1.77 BUDGET REPORT City of Prior Lake Expenditures From Amended Budget 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget DEBT SERVICE FUNDS 47000.00 DEBT SERVICE 5,359,651 5,322,317 5,322,317 5,243,627 (78,690) (1.48) 80000.00 Transfers to other Funds 148,164 110,000 110,000 75,000 (35,000) (31.82) TOTALS - DEBT SERVICE FUNDS 5,507,815 5,432,317 5,432,317 5,318,627 (113,690) (2.09) Fund 210 - CABLE FRANCHISE FUND 41340.00 PUBLIC CABLE ACCESS 20,263 9,200 9,200 - (9,200) (100.00) TOTALS - FUND 210 20,263 9,200 9,200 - (9,200) (100.00) Fund 225 - CAPITAL PARK FUND 45040.00 PIKE LAKE PARK 917 45144.00 THE ENCLAVE @ CLEARY LKPK 45146.00 Eagle Creek/Brooksville Hills 45147.00 MARKLEY LAKE TRAIL 45148.00 HWY 13 TRAIL GAP 177,422 45200.00 PARKS 325,858 - - 956,000 956,000 80000.00 Transfers to other Funds - - - - - TOTALS - FUND 225 504,197 - - 956,000 956,000 100.00 Fund 240 - EDA SPECIAL REVENUE FUND 46500.00 ECONOMIC DEVELOPMENT 167,478 448,035 448,035 519,294 71,259 15.90 46503.00 TECH VILLAGE INCUBATOR 4,075 5,100 5,100 5,500 400 7.84 TOTALS - FUND 240 171,553 453,135 453,135 524,794 71,659 15.81 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget Fund 410 - REVOLVING EQUIPMENT FUND 42100.00 POLICE 187,092 443,000 468,580 250,900 (217,680) (46.46) 42200.00 FIRE 620,150 115,000 115,000 792,000 677,000 588.70 42400.00 BUILDING INSPECTION 30,539 32,000 67,000 35,000 (32,000) (47.76) 43100.00 STREET 178,339 257,000 491,603 289,600 (202,003) (41.09) 43400.00 CENTRAL GARAGE 18,739 20,000 20,000 20,000 - - 45200.00 PARKS 90,835 333,000 333,000 262,500 (70,500) (21.17) 49400.00 WATER 55,549 - - 83,000 83,000 49420.00 WATER QUALITY - - - - - 49450.00 SEWER - - - 83,000 83,000 80000.00 Transfers to other Funds - - - - - TOTALS - FUND 410 1,181,243 1,200,000 1,495,183 1,816,000 320,817 21.46 Fund 430 - REVOLVING PARK EQUIP FUND 45200.00 PARKS 158,797 346,000 542,000 525,000 (17,000) (3.14) TOTALS - FUND 430 158,797 346,000 542,000 525,000 (17,000) (3.14) Fund 440 - FACILITIES MANAGEMENT FUND 41940.00 FACILITIES - CITY HALL 10,349 - 120,000 240,000 120,000 100.00 41960.00 GESP - - - - - 42100.00 POLICE - - - 22,500 22,500 42200.00 FIRE - 20,000 20,000 120,000 100,000 500.00 43100.00 STREET - - - - - 43400.00 CENTRAL GARAGE - - - 50,100 50,100 45500.00 LIBRARIES 32,637 84,000 84,000 15,000 (69,000) (82.14) 49400.00 WATER 5,940 10,000 10,000 - (10,000) (100.00) 80000.00 Transfers to other Funds - - - - - TOTALS - FUND 440 48,926 114,000 234,000 447,600 213,600 91.28 12/7/2020 - Council Meeting 2019 2020 2020 2021 2021 2021 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget Fund 450 - PERMANENT IMPROVEMENT REVOLVING FUND 43100.00 STREET 675,848 700,000 700,000 - (700,000) (100.00) 80000.00 Transfers to other Funds 186,933 279,933 279,933 287,150 7,217 2.58 TOTALS - FUND 450 862,781 979,933 979,933 287,150 (692,783) (70.70) Fund 601 - WATER FUND 41520.00 FINANCE 93,085 100,574 100,574 108,246 7,672 7.63 47000.00 DEBT SERVICE 78,200 - - - - 49400.00 WATER 2,871,712 2,377,581 2,403,861 4,307,849 1,904,905 79.24 80000.00 Transfers to other Funds 995,495 923,160 923,160 1,035,700 112,540 12.19 TOTALS - FUND 601 4,038,492 3,401,315 3,427,595 5,451,795 2,025,117 59.08 Fund 602 - STORM WATER UTILITY 49420.00 WATER QUALITY 611,654 733,912 733,912 982,393 248,981 33.93 80000.00 Transfers to other Funds 126,760 85,780 85,780 127,000 41,220 48.05 TOTALS - FUND 602 738,414 819,692 819,692 1,109,393 290,201 35.40 Fund 604 - SEWER FUND 41520.00 FINANCE 92,950 100,274 100,274 107,721 7,447 7.43 47000.00 DEBT SERVICE 78,200 - - - - 49450.00 SEWER 3,166,705 3,070,812 3,097,092 3,706,174 609,927 19.69 80000.00 Transfers to other Funds 527,147 294,110 294,110 366,000 71,890 24.44 TOTALS - FUND 604 3,865,002 3,465,196 3,491,476 4,179,895 689,264 19.74 TOTALS - ALL FUNDS 30,447,813 30,877,536 31,699,741 35,693,971 3,996,492 12.61 4,816,435 15.60 From Original Budget City of Prior Lake 12/7 Council Meeting 2021 Budget Attachment 1 Budgeted Funds Capital Revolving Revolving Park Permanent Facilities Total Total General Debt Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted Fund Service Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds Funds Revenues / Sources Property Taxes Levy - Tax Capacity Operating 9,180,384$ -$ -$ 650,000$ 375,000$ 120,000$ 80,000$ 349,750$ 10,755,134$ -$ -$ -$ -$ 10,755,134$ Levy - Tax Capacity Debt Service 3,121,498$ 185,000 3,306,498$ 3,306,498$ Levy - Market Value 253,575 - - - - - - - 253,575 - - - - 253,575 Levy - - - - - - - - - - - - - - - Special Assessments - 446,370 - - - - 173,000 - - 619,370 - - - - 619,370 Licenses & Permits 795,551 - - - - - - - - 795,551 - - - - 795,551 Fines & Forfeits - - - - - - - - - - - - - - - Intergovernmental 2,095,735 - - - - - - - - 2,095,735 - - - - 2,095,735 Charges for Services 1,864,672 - 28,000 455,000 - - - - 8,450 2,356,122 4,411,774 4,317,042 1,190,699 9,919,515 12,275,637 Other Revenues 240,800 46,406 - 41,297 9,600 10,500 7,800 5,800 5,300 367,503 54,775 19,800 14,500 89,075 456,578 Bond Proceeds - - - - 555,000 - - - - 555,000 - - - - 555,000 Lease Proceeds - - - - - - - - - - - - - - - Transfers From Other Funds General Fund - 253,575 - - - - - - - 253,575 - - - - 253,575 Debt Service Funds - 75,000 - - - - - - - 75,000 - - - - 75,000 Water Fund 523,000 565,700 - - 145,000 - - 117,000 - 1,350,700 - - - - 1,350,700 Sewer Fund - - - - 145,000 - - 13,000 - 158,000 - - - - 158,000 Water Quality Fund - - - - 20,000 - - - - 20,000 - - - - 20,000 Trunk Reserve Fund - - - - - - - - - - - - - - - TIF Fund - 25,500 - - - - - - - 25,500 - - - - 25,500 PIR Fund - 287,150 - - - - - - - 287,150 - - - - 287,150 Facilities Management Fund - - - - - - - - - - - - - - - Capital Park Fund - - - - - - - - - - - - - - - Police Forfeiture Fund - - - - - - - - - - - - - - - Total Revenues / Sources 14,953,717$ 4,821,199$ 28,000$ 496,297$ 1,709,600$ 385,500$ 300,800$ 215,800$ 363,500$ 23,274,413$ 4,466,549$ 4,336,842$ 1,205,199$ 10,008,590$ 33,283,003$ Expenditures / Uses Employee Services 10,688,740$ -$ -$ -$ -$ -$ -$ -$ 135,544$ 10,824,284$ 826,162$ 808,383$ 366,879$ 2,001,424$ 12,825,708$ Current Expenditures 4,125,902 - - - - - - - 388,750 4,514,652 1,323,533 1,980,612 256,014 3,560,159 8,074,811 Capital Outlay 9,500 - - 1,816,000 525,000 - - 500 2,351,000 179,250 118,750 - 298,000 2,649,000 Capital Improvements - - - 956,000$ - - - 447,600 - 1,403,600 1,917,500 736,500 359,500 3,013,500 4,417,100 Subtotal 14,824,142$ -$ -$ 956,000$ 1,816,000$ 525,000$ -$ 447,600$ 524,794$ 19,093,536$ 4,246,445$ 3,644,245$ 982,393$ 8,873,083$ 27,966,619$ Transfers To Other Funds General Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 208,000$ 208,000$ 107,000$ 523,000$ 523,000$ Treatment Plant (Debt)- - - - - - - - - - 565,700 - - 565,700 565,700 Equipment Fund - - - - - - - - - - 145,000 145,000 20,000 310,000 310,000 Park Equipment Fund - - - - - - - - - - - - - - - Debt Service Funds 253,575 75,000 - - - - 287,150 - - 615,725 - - - - 615,725 PIR Fund - - - - - - - - - - - - - - - Facilities Management Fund - - - - - - - - - - 117,000 13,000 - 130,000 130,000 EDA Fund - - - - - - - - - - - - - - - Severance Compensation Fund - - - - - - - - - - - - - - - Contingency - - - - - - - - - - - - - - - Debt Service - 5,243,627 - - - - - - - 5,243,627 169,650 169,650 - 339,300 5,582,927 Subtotal 253,575$ 5,318,627$ -$ -$ -$ -$ 287,150$ -$ -$ 5,859,352$ 1,205,350$ 535,650$ 127,000$ 1,868,000$ 7,727,352$ Total Expenditures / Uses 15,077,717$ 5,318,627$ -$ 956,000$ 1,816,000$ 525,000$ 287,150$ 447,600$ 524,794$ 24,952,888$ 5,451,795$ 4,179,895$ 1,109,393$ 10,741,083$ 35,693,971$ Change in Fund Balance (124,000)$ (497,428)$ 28,000$ (459,703)$ (106,400)$ (139,500)$ 13,650$ (231,800)$ (161,294)$ (1,678,475)$ (985,246)$ 156,947$ 95,806$ (732,493)$ (2,410,968)$ 2021 Property Tax Levy Comparison 12/7 Council Meeting Attachment 1 Change 20 - 21 Property Taxes 2020 2021 Amount Percent Levy - Tax Capacity General Fund - Operating 8,711,099$ 9,180,384$ 469,285$ 5.39% Debt Service 3,319,231 3,306,498 (12,733) -0.38% Revolving Equipment Fund 625,000 650,000 25,000 4.00% Revolving Park Equipment Fund 319,000 375,000 56,000 17.55% Permanent Improvement Revolving Fund 80,000 120,000 40,000 50.00% Facilities Management Fund 30,000 80,000 50,000 166.67% Levy - Economic Dev Authority 274,750 349,750 75,000 27.30% 13,359,080 14,061,632 702,552 5.26% Levy - Market Value - General Fund 242,057 253,575 11,518 4.76% Total Levy 13,601,137$ 14,315,207$ 714,070$ 5.25% 2021 Budget Expenditure Comparisons (2020 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 2021 Total Expenditures / Uses 15,077,717$ 5,318,627$ -$ 956,000$ 1,816,000$ 525,000$ 287,150$ 447,600$ 524,794$ 24,952,888$ 5,451,795$ 4,179,895$ 1,109,393$ 10,741,083$ 35,693,971$ 2020 Total Expenditures / Uses 14,656,748$ 5,432,317$ 9,200$ -$ 1,200,000$ 346,000$ 979,933$ 114,000$ 453,135$ 23,191,333$ 3,401,315$ 3,465,196$ 819,692$ 7,686,203$ 30,877,536$ Change 2020 to 2021 ($)420,969$ (113,690)$ (9,200)$ 956,000$ 616,000$ 179,000$ (692,783)$ 333,600$ 71,659$ 1,761,555$ 2,050,480$ 714,699$ 289,701$ 3,054,880$ 4,816,435$ Change 2020 to 2021 (%)2.87%-2.09%-100.00%n/a 51.33%51.73%n/a 292.63%15.81%7.60%60.28%20.63%35.34%39.74%15.60% 2021 Budget Expenditure Comparisons (2020 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 2021 Total Expenditures / Uses 15,077,717$ 5,318,627$ -$ 956,000$ 1,816,000$ 525,000$ 287,150$ 447,600$ 524,794$ 24,952,888$ 5,451,795$ 4,179,895$ 1,109,393$ 10,741,083$ 35,693,971$ 2020 Total Expenditures / Uses 14,815,210$ 5,432,317$ 9,200$ -$ 1,495,183$ 542,000$ 979,933$ 234,000$ 453,135$ 23,960,978$ 3,427,595$ 3,491,476$ 819,692$ 7,738,763$ 31,699,741$ Change 2020 to 2021 ($)262,507$ (113,690)$ (9,200)$ 956,000$ 320,817$ (17,000)$ (692,783)$ 213,600$ 71,659$ 991,910$ 2,024,200$ 688,419$ 289,701$ 3,002,320$ 3,994,230$ Change 2020 to 2021 (%)1.77%-2.09%-100.00%n/a 21.46%-3.14%-70.70%91.28%15.81%4.14%59.06%19.72%35.34%38.80%12.60% 1 2021 Proposed Tax Levy Components Attachment 2 LEVY CHANGE TO MAINTAIN CURRENT SERVICE LEVELS – 5.25% Mandatory Items – 3.44% STAFFING Wage/COLA and Benefits - $366,000 The city has labor agreements with three unions that are currently being negotiated for 2021. The budget includes a proposed cost of living adjustment, city payroll taxes and health insurance premium contribution increase. The budget also includes seasonal salaries. Overtime Pay for City Contract Services - $94,000 The city provides contract services such as Police staffing at Mystic Lake and Police and Parks staffing at local community events such as Musicfest and Lakefront Days. The revenue is collected through a c ontract services charge and the related expenditure is staff overtime for the services provided. The contracted services are planned to increase in 2021 so the related staff overtime is also increasing. The increase is primarily in the Police department for additional contracted services at Mystic Lake. IT Support Specialist -$67,000 (PT to FT) The city has over 192 computer devices (workstations, laptops, tough books), 14 servers, mobile devices, the phone system, printers/copiers, and seven city buildings with technology infrastructure that need to be managed. This is in addition to software contracts, license agreements, device accounts, IT policies and procedures, long-term planning and critical cyber security monitoring and training. At the same time, the technology needs of the police department continue to expand, including body cameras, squad car cameras, ticket printers, transcription software, evidence/jail cameras, etc. The volume of the workload is too much for one individual to manage and requires regular weekend and over-night work. The city IT needs have expanded due to the COVID19 pandemic and made it more apparent that redundancy in the IT department is necessary. The City Manager has moved the part-time position to full-time in 2020 and the position is currently posted. By offering a full-time position with benefits, the city should be able to attract higher caliber candidates. This position would primarily serve the police department and provide helpdesk back up to the IT Coordinator. Pension Contribution - $78,000 City’s mandatory statutory Public Employees Retirement Association (PERA) contribution. Workers Compensation - $31,000 Premium adjustment based on updated experience modifier and rate changes from the League of MN Cities. 2 CURRENT EXPENDITURES Reduction in Contracted Services – ($48,000) Contracted Services Increases: • Increased funding for maintenance agreements for buildings/equipment/cleaning -$18k • Audit fee for required federal funds single audit - $6k • The City of Prior Lake contracts with Scott County to provide property assessment services. 2021 is the second year of a three-year contract. Overall contract increase includes increasing assessment workloads such as parcel creations, new home construction, and annexation activities - $6k • Increased funding for Public Works engineering needs. A significant 2021 project is feasibility work related to the Parks Master Plan - $30k • Increased funding for the city’s insurance program through the League of MN Insurance Trust based on annual updates to our property and general liability insurance coverage and proposed rate increase guidelines from the League of MN Cities – 19k • Increased funding for the Fire Dept. Special Response Team - $10k • Increased funding for website budget presentation software - $11k Contracted Services Decreases: • Reduction in funding for Parks expenditures for trail/sidewalk seal coat and heavy equipment rental – ($45k) • Reduction in funding for IT professional services. In 2021 staff will be added instead of contracting for these services as we did in 2020 – ($94k) • Reduction in funding for software service costs and Finance professional services –($9k) Reduction in Utilities – ($60,000) Utility expenditures based on historical info and estimated cost increases. Increase in 2019/2020 has been less than the budgeted estimate, so the budget was revised downward. Supplies - $17,000 tax levy impact • Police toughbooks, docking stations -$15k • IT Computers, video cameras, monitor replacements -$9k • Police and IT technology equipment became necessary to purchase in 2020 to allow for remote work and City Hall security during the COVID19 pandemic. This was funded by CARES $ - ($24k) • Streets snow & ice management materials - $17k CAPITAL OUTLAY Reduction in Tech Capital Outlay – ($68,000) • 2020 included the purchase of a server and storage area network –($68k) • 2021 IT network switch became necessary to purchase in 2020 to allow for increased server capacity to allow for remote work - $20k • 2021 IT technology equipment funded by CARES $ - ($20k) NONTAX REVENUE SOURCES/OTHER Net Revenue Shortfall of $121,000 offset with Additional Revenues of $130,000 • The city collects building permit and plan check revenue on new residential and townhome units built. The estimate for new construction for 2021 is 125 units which is less than the 2020 estimate of 135 units. This has a budgetary impact of $55k. The budget reflects a one-time funding from reserves of $35k to fund a portion of the revenue shortfall as compared to the 2020 budget as this is anticipated to be a “one-time” funding need. 3 Initial building permit projections at the start of the pandemic were 115 for 2020. That number has been revised to 160 based on the YTD permit activity through October. Staff has been conservative in the 2021 building permit estimate as there is uncertainty in the new housing market due to the pandemic. It is anticipated that this will be a “one-time” revenue shortfall based on the housing demand we have experienced prior to the COVD19 pandemic. ($55k revenue shortfall less use of reserves of $35k = $20k tax levy impact.) • City staff have been in discussions with the SMSC regarding the agreement for SMSC local government aid for Police services. The preliminary agreement indicates that we will receive $700,000 in 2020. However, this is $100k less than the 2021 budget amount of $800,000. The COVID19 pandemic has impacted Mystic Lake operations as it has impacted many businesses across the state. When Mystic Lake operations return to normal, we anticipate that the SMSC aid for Police services will include additional funding to move closer to our 2021 $850,000 funding recommendation. The budget reflects a one-time funding from reserves of $100k to cover this shortfall for 2021 police aid between budget and preliminary agreement received with the SMSC as this is anticipated to be a “one-time” funding need. ($0 tax levy impact) • The city collects revenue from cellular companies for leasing space on the city water towers. There is one less lease in 2021 so revenue budget has been reduced - $10k • Increase in funding from other funds for administrative services of the city’s opera ting fund for admin/HR/Finance/IT, etc. – ($53k) • Other expenditure adds across multiple depts for special election supplies/communications etc. -18k • The city was awarded a two grant for Building Official training - $65k • Increase in Township Fire & Rescue Aid Revenue: City staff has reviewed the existing agreement for fire and rescue aid for Credit River and Spring Lake townships. The City Council has approved the proposed changes to the contract that include financing annual equipment replacement and facility repairs on a pay-go basis, financing major replacements and repairs with debt that follows the city’s debt repayment schedule of ten years, and funding for the city’s administrative costs of the Fire department. This will add $64,500 in rev enue for fire and rescue aid to the townships which reduces the tax levy impact. Other $ 325,000 2020 use of reserves 124,000 2021 use of reserves $ 201,000 Subtotal Increase in tax levy in 2021 due to less use of reserves as compared to 2020 budget (40,000) Reduction in 2021 current expenditures – one-time website redesign in 2020 (161,000) Reduction in General Fund transfers out to EDA – one-time transfer 0 Tax levy impact of zero for change in use of reserves between 2020 and 2021 Capital Improvement Program (CIP) Tax Levy Components 1.26% Street Overlay funding -$40,000 The fund is reviewed annually to monitor cash flow and determine the tax levy needed. No specific projects are identified at this time for 2021. Based on the increasing cost of recent years projects and impacts to the balance of the PIR fund, it is proposed to forgo overlay projects for the next three years to allow the fund to regenerate its balance. Staff is working towards the development of a more comprehensive pavement management program to 4 project longer term street network conditions and strategies for increasing the scope of street mill and overlay projects as early as 2024. Facilities Management Plan funding -$50,000 The Facility Management Plan (FMP) was developed to plan for major repairs, replacements, and upgrades for all city facilities on a long-term basis (25 years). It does not cover minor expenses for repairs and maintenance. Those will continue to be funded through the operating budgets . 2021 includes replacement of the City Hall boilers and epoxy flooring replacement at Fire Station 1. Park Equipment Replacement funding -$56,000 The Revolving Park Plan funds capital replacement projects, park amenities, and trail, sidewalk, and boardwalk replacement. The plan proposes a phased increase in the tax levy to cover the capital proj ects in the plan. 2021 projects include the Sunset Hills Park renovation and Watzl Beach building and retaining wall removal. Equipment Replacement funding - $25,000 The Equipment Replacement Plan (ERP) utilizes general tax levies to support replacement of the City’s equipment and vehicle fleet. The ten-year annualized cost for the plan is about $1M. The financing plan reflect s a gradual increase in the tax levy until the annual levy reaches $1M by the year 20 28. The proposed total levy for 2020 is $650k. Since the proposed levy increase is gradual, bonding may be required for the plan to meet our funding needs. Economic Development Authority (EDA)Tax Levy Component .55% EDA Tax Levy Increase - $75,000 $ 364,000 EDA Source of Funds 525,000 EDA Use of Funds $ 161,000 EDA Use of Reserves The Economic Development Authority (EDA) has identified a need for additional expenditure budget and funding for economic development initiatives. The EDA budget includes a funding increase of $75k to bring the EDA tax levy to $350k The EDA has a future commitment of approximately $388,000 for the acquisition of the Sebastian Auto property as a part of a future downtown redevelopment project. With the tax levy set at $350,000, 2021 use of reserves of $160,000 will also be needed to help fund the 2021 EDA expenditures. The assistance provided by the City Council and EDA in recent years to support business development, retention and expansion has helped the city achieve its stated public purpose objectives. The city has added nearly 330,000 square feet of new commercial/industrial property to the city over the past few years in part due to the support of the Prior Lake City Council and Economic Development Authority. This new commercial and industrial square footage results in an estimated $120,000+ in annual property tax payments to the City of Prior Lake. That equates to almost 1% of our tax levy annually that is paid by this new commercial tax base. The city is striving to increase this commercial tax base and the additional funding request would be us ed to this end. General Fund Reserve General Fund use of reserves- $124,000 Background information: The city’s comprehensive financial management plan calls for maintaining a fund balance between 40-50% to ensure adequate reserves for cash flow, unplanned expenditures, and to maintain the city’s credit worthiness (AA+ credit rating). Staff recommends the use of reserves for one-time expenditures or revenue shortfall; otherwise, the fund balance could drop below the level stated in the comprehensive financial management plan over time. The total 2020 use of reserves was $325k. This includes a planned transfer to the EDA ($161,250), the redesign of the city’s website ($40,000), and carryforward of 2019 budget items that were started in 2019 but completed/billed in 2020. ($124,000) 2021 Planned Use of Reserves is $124,000 to fund the following items: 5 • SMSC Police Aid Revenue Shortfall - $100k: The preliminary agreement with the SMSC indicates that we will receive $700,000 in 2021 for Police aid. This is an additional $50k as compared to 2020. However, this is $100k less than the 2020 budget amount of $800,000. The COVID19 pandemic has impacted Mystic Lake operations as it has impacted many business es across the state. When Mystic Lake operations return to normal, we anticipate that the SMSC aid for Police services will include additional funding to move closer to our 2021 $850,000 funding recommendation The budget reflects a one-time use of funds of $100k to cover this shortfall for 2021 police aid between budget and preliminary agreement received with the SMSC as this is anticipated to be a “one-time” funding need. • The city collects building permit and plan check revenue on new residential and townhome units built. The estimate for new construction for 2021 is 125 units which is less than the 2020 estimate of 135 units. This has a budgetary impact of $55k. The budget reflects a one-time funding from reserves of $35k to fund a portion of the revenue shortfall as compared to the 2020 budget as this is anticipated to be a “one -time” funding need • Use of reserves of $9k for city contribution to health premiums as part of labor negotiations that occurred after maximum/preliminary tax levy was set in September. • Offsetting add to reserve for overall nontax revenue $20k greater than to tal expenditures.