HomeMy WebLinkAbout9C - 2007 PL Budgets & Property Tax Levy
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16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
DECEMBER 18,2006
9C
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF RESOLUTION ADOPTING 2007 PRIOR LAKE
BUDGETS AND CERTIFYING FINAL 2007 CITY OF PRIOR LAKE
PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION
Introduction
The purpose of this agenda item is to consider approval of the City of Prior
Lake's 2007 Operating Budget and Enterprise Fund Budgets and to determine
the City's final 2007 property tax levy for certification to the Scott County
Department of Taxation office.
Historv
The official budget process started in the middle of April 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 2007 operating budgets.
The City Council conducted its initial budget study session May 1, 2006 at
which time the directive to staff was to prepare an operating budget that would
be responsive to the financial elements of the 2030 Vision and Strategic Plan
and have a financially responsive property tax impact for next year. A second
workshop was conducted on August 21, 2005 where the Council reviewed the
proposed 2007 draft budgets and programs associated with it.
September 5, 2006 the City Council approved the preliminary budgets for the
general and enterprise funds and initial levy under Resolution 05-167 with a
proposed property tax levy increase of approximately 5.1 %. On September 12,
2006 the fire station referendum was successful which resulted in increasing
the levy by an additional $220,000 resulting in an overall proposed increase of
7.8%. Following public notification in the Prior Lake American and individual
parcel mailings, the truth-in-taxation hearing was then conducted on December
4, 2006. A total of five citizens addressed the council with their concerns,
which centered primarily on their valuation increase.
Current Circumstances
The 2007 General Operating Budget submitted for your consideration totals
$11,685,807.00, which includes necessary taxing for general operating
expenditures, capital outlay and debt service levies.
New program elements of the proposed budget are summarized as follows:
Cl Webcasting
Cl Drug task force
Cl County-wide transportation strategy
Cl Joint public safety training facility
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
Cl Street overlay program increase
Cl Fire station bonds
FINANCIAL
IMPACT:
As a result this budget represents an increase ($845,073) of approximately
7.8% above the current level of expenditures, and will produce a final property
tax levy of $8,718,777 that includes a revolving equipment fund levy of
$290,000, special debt levies of $749,000, CSAH 82 cooperative agreement
appropriation of $152,963, a general obligation building bond levy of $565,735
and market value referendum levies of 981.949 with the remaining amount
allocated for general city purposes. The total property tax levy represents an
increase of $632,541 or 7.8% above the current year.
For Prior Lake taxpayers experiencing the typical 1 0% market valuation
adjustment this will result in an average increase of 3%% on their 2007
property tax bill. Also requested for approval are the 2007 Enterprise Fund
Budgets of $4,590,757 that support our water and sewer utilities. storm water
and transit systems.
The League of Minnesota Cities compiled the following table which will give the
Council a statewide perspective on where proposed tax levies are going on
average in 2007 by taxing authority;
Taxing Authority
Counties
Cities
Schools
! Special Taxing Districts
; I
! Total... !
I Prior Lake
I Percent Increase
7.1%
9.0%
9.5%
13.6%
8.5%
7.8%
ALTERNATIVES:
The following alternatives are available to the City Council:
1. Approve Resolution Adopting 2007 Prior Lake Budgets and Certifying
Final 2007 City of Prior Lake Property Tax Levy to Scott County
Department of Taxation.
2. Amend Resolution according to specified Council changes.
RECOMMENDED
MOTION:
Alternative 1. Staff would recommend that the City Council approve the
resolution as submitted as this is the last regular meeting date in 2006. The
final property tax levy amount must be certified to the Scott County
Department of Taxation Office no later than 5 working days after December
20th (December 27,2006.) as prescribed by Minnesota statute.
H
Motion By:
Second By:
WHEREAS, The City Council of the City of Prior Lake hereby adopts the 2007 General Fund
Operating Budget in the amount of $11,685,807.00, an Enterprise Fund Budget of
$4,009,178.00 and Transit Services Budget of $581,579.00 following a period of
comment and discussion during the course of a public hearing held December 4, 2006;
and
WHEREAS, The City of Prior Lake's general fund operating budget tax levy is hereby equivalent to
$7,526,814.00; and
WHEREAS, The revolving equipment fund levy amount is calculated to be $290,000.00; and
WHEREAS, A Scott County cooperative agreement appropriation of $152,963.00 for CSAH 82 is
included; and.
WHEREAS, Special debt levies account for an additional tax levy of $749,000.00; and.
WHEREAS, The total property tax levy approved has been determined to be $8,718,777.00.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. That the proposed tax levy be distributed upon the taxable property in said City for the following
purposes in payable 2007:
PurDose Amount
* For General City Purposes $5,979,130.00
* Revolving Equipment Fund $290,000.00
* G.O. Improvement Bonds '97 (Pike Lake) $56,000.00
* G.O. Improvement Bonds '98 (Duluth) $58,000.00
* G.O. Improvement Bonds '99 (Candy Cove) $55,000.00
* G.O. Improvement Bonds '00 (Oak Ridge) $71,000.00
* G.O. Improvement Bonds '01 (Frog Town) $59,000.00
* G.O. Improvement Bonds '02 (Pixie Point) $59,000.00
* G.O. Improvement Bonds '03 (150th Street) $106,000.00
* G.O. Improvement Bonds '04 (Breezy Point) $185,000.00
* G.O. Improvement Bonds 'OS (Fish Point) $100,000.00
* G.O. Building Bonds '05 (EDA) $565,735.00
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
*
CSAH 82 Improvement Appropriation
Fire Hall Referendum Bonds '93
Park Referendum Bonds '97
Fire Station Referendum Bonds '06
$152,963.00
$170,540.00
$591 ,409.00
$220.000.00
Total... $8,718,777.00
**
**
**
Note: Single starred funds shall be spread over the entire consolidated City of Prior Lake.
Note: Double 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 18TH DAY OF DECEMBER, 2006.
YES
NO
Haugen
Dornbush
Erickson
LeMair
Millar
Haugen
Dornbush
Erickson
LeMair
Millar
Frank Boyles, City Manager
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