HomeMy WebLinkAbout9A - 1999 Prior Lake Budgets
STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DECEMBER 21, 1998
9A
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF RESOLUTION 98-XX ADOPTING
1999 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 1999
CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT
COUNTY AUDITOR
DISCUSSION:
Introduction:
The purpose of this agenda item is to consider approval of the City
of Prior Lake's 1999 Operating Budget, Enterprise Fund Budget and
to determine the City's final 1999 property tax levy for certification
to the Scott County Auditor's Office.
Backeround:
Early in the year the City Council established a top priority goal to
adopt a 1999 General Fund Budget which provides needed services
with a zero percent property tax increase. During a preliminary
budget study session, staff examined the budget to evaluate a
revenue shortfall pattern that was beginning to emerge in the
revenue area of building permits and to see what potential dollars
could be cut from the 1998 budget in an attempt to achieve a zero
percent property tax increase. As a result of this self examination,
$63,000 in operating expenditures were trimmed from the current
1998 budget.
Thereafter the official budget process started in the middle of May
with the Council approving an initial budget timetable. This
timetable outlined the budget development process and required
truth-in-taxation steps necessary to prepare and eventually adopt the
city's 1999 operating budget. Subsequently, the Council conducted a
preliminary workshop on June 1, 1998 for the purpose of providing
city council direction to staff on program priorities. A second
workshop was conducted on August 11, 1998 where the Council
reviewed a proposed 1999 draft budget and programs associated
with it.
On September 8, 1998 the City Council approved a proposed budget
and initial levy under Resolution 98-103 which provided the basis
for the recent individual truth-in-taxation notices received by the
public. The overall process culminated with the truth-in-taxation
public hearing conducted by the City on December 7, 1998 attended
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
H:\BUDGE1\98BUDRPT.DOC
RECOMMENDED
MOTION:
REVIEWED BY:
Attachments:
H:\BUDGE1\98BUDRPT.DOC
Motion and a second to approve Resolution 98-xx Adopting 1999
Prior Lake Budgets and Certifying Final 1999 City of Prior Lake
P?J fi1tountr Auditor.
L Reso~98-X:X Adopting 1999 Prior Lake Budgets and
Certifying Final 1999 City of Prior Lake Property Tax Levy to Scott
County Auditor.
2. Notes on 1999 Prior Lake Budgeting
RESOLUTION 98-XX
RESOLUTION ADOPTING 1999 PRIOR LAKE BUDGETS AND
CERTIFYING FINAL 1999 CITY OF PRIOR LAKE PROPERTY TAX LEVY
TO SCOTT COUNTY AUDITOR
MOTION BY: SECOND BY:
WHEREAS, The City Council of the City of Prior Lake hereby adopts the 1999 General Fund
Operating Budget in the amount of$7,127,582.00 and an Enkl1-'l~se Fund Budget of
$1,727,952.00 following a period of comment and discussion during the course of a
public hearing held December 7, 1998; and
WHEREAS, The City of Prior Lake's operating budget tax levy IS hereby equivalent to
$3,901,997.00; and
WHEREAS, The revolving equipment fund levy amount is calculated to be $150,000.00; and
WHEREAS, Special debt levies account for an additional tax levy of$751,000.00; and
WHEREAS, The total property tax levy approved has been determined to be $4,802,997.00.
NOW T.l:I.EREFORE, BE IT RESOLVED BY l.l:1.E CITY COUNCIL OF PRIOR LAKE, that the
proposed tax levy be distributed upon the taxable property in said City for the following purposes in
payable 1998:
.Pnrnose Amonnt
-
* For General City Purposes $3,167,872.00
* For Revolving Equipment Fund $150,000.00
* G.O. Improvement Bonds '92 (Downtown Overlay) $116,000.00
* G.O. Improvement Bonds '93 (Waterfront Passage) $235,000.00
* G.O. Improvement Bonds '94 (Prior South) $65,000.00
* G.O. Improvement Bonds '95 (Ridgemont) $100,000.00
* G.O. Improvement Bonds '96 (Northwood) $85,000.00
* G.O. Improvement Bonds '97 (Pike Lake) $72,000.00
* G.O. Improvement Bonds '98 (Duluth) $78,000.00
** Capital Park Bonds of '73 & '77 $36,640.00
*** Fire Hall Referendum Bonds '93 $165,415.00
*** Park Referendum Bonds '97 $532.070.00
Total... $4,802,997.00
162V~gcCreek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Note: Single starred funds shall be spread over the entire consolidated City of Prior Lake.
Note: Double starred funds shall be spread over the consolidated City except for the former Savage
portion subject to annexation.
Note: Triple starred funds represent market value based referendum taxes and shall be spread over the
entire consolidated City of Prior Lake.
Note: All other bond issues have sufficient fund balances to cover debt requirements.
Passed and adopted this 21st day of December, 1998.
YES
NO
Mader
Kedrowski
Petersen
Schenck
Wuellner
Mader
Kedrowski
Petersen
Schenck
Wuellner
{Seal}
City Manager
City of Prior Lake
99TAXRES.DOC
Notes on 1999=Prior Lake Budgeti!}g
Frank Boyles, City Manager
. The Prior Lake City Council imposed a spending limit on itself three years ago; two years
earlier than the state imposed limits. The City Council's spending limits are more
aggressive than those imposed by the state.
. To achieve the Council's objective, the staff had to make cuts in the 1998 budget.
. The 1999 budget proposes one less full-time position than the 1998 budget.
. The budget as proposed is intended to serve all residents of Prior Lake.
. The Business Office Park developed five years earlier than projected. The seven
businesses who built there appear to find Prior Lake to be an attractive community.
. Prior Lake's taxes per capita are very comparable to other developing communities:
........................<CITy .......I<RA.,..lE...Rf:B.CJ8al,..~...
Burnsville $380.68
Savage $512.45
Shakopee $433.67 I
::::~:::~:~:~:~I:~:~:~:~:~:::~:~:::mii.f:lU!I;:::::::::::::::::~::::::::::::::::::H:::::::::::::::~:~:~:~:~:~::::::::::::::III.I:;:I;:::::::::::::~:::::::::::::::::::::~:::::~
Metro City Average I $434.82 1
. Excluding voter approved referendum adjustments which the City does not control, the City
taxes on a home valued at $134,000 in 1995 have increased $98 or less than $20.00 per
year.
. The tax levies of other Scott County developing suburbs are increasing 13.5% in one case
and 9.8% in another to support the services needed by their growing communities. Prior
Lake's levy by contrast is increasing 4.7% or 2.7% if transit and voter approved
referendums are excluded.
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