HomeMy WebLinkAbout052107 Work Session
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
Date: May 21, 2007 ~
To: The Mayor and City CouncilN'
From: Frank Boyles, City Manager ' f\
Re: 2008 Budget City Council Wor s op I
The budget adoption process, because of State Truth-in- Taxation laws, is a protracted process
beginning in May and concluding at the end of December. Attached is the process and timeline
we propose to use to comply with the 2008 budgeting process.
Also enclosed is a detailed agenda for the workshop and a 2008 Property Tax Information sheet
that Ralph has prepared.
The purpose of this first of three budget workshops is to solicit City Council member input on
program additions, deletions or modifications for 2008. Please give some thought to these
questions and other budgeting issues you may wish to discuss.
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
~~~ ~~~~ ~~~~~~t~~1i2E1714
"'~llVNESO"i~/J AG ENDA
CITY COUNCIL WORK SESSION
Monday, May ~ 2007
5:00 p.m.
2008 Operating Budget
I. Dinner
II. 2008 Budget Workshop I
A. Budget Process and Timeline (see attached schedule)
B. Purpose of Initial Workshop
1. Council Feedback:
a) Existing Programs
b) New Programs
C. Issues Affecting 2008 Budget
1. External:
a) Legislature
b) New Valuation Growth
c) Possible Levy Limits
2. Internal:
a) Building Operation Costs
b) Fuellncrease
c) Insurance
d) New Positions (i.e. IT Coordinator)
e) Non-tax Revenue Enhancements;
o Allina/wireless leases
o Franchise fee full funding
o Township fire contract increase
o Utility Fund transfer
D Non-tax Revenue Losses;
o Building permit reduction
o Dance studio
o Project administration
D. Council Comments:
1. Existing Programs
2. New Programs
3. Personnel
4. Tax Impact
III. Adjournment: 5:55 pm
H:\BUDGET\Agenda - budget workshop.doc
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
Prior Lake
2008 OPERATING BUDGET
Timetable & Process for Completion
Date Status Activitv
March 9, 2007 City Council receives budget timetable.
May 21, 2007 Council input of Budget Programs & Priorities. .. YOU ARE HERE
(Workshop #1 . Monday 5:00 p.m.)
June 1, 2007 Distribution of budget aids and timetable.
June 1-152007 Department heads conduct staff meetings to receive input on 2008 needs and
prepare budget draft.
June 18, 2007 Deadline for submission to Finance.
June 18-22, 2007 Budget information consolidated by Finance.
July 9-20, 2007 City Manager confers & reviews with each department head.
July 23-27, 2007 Budget draft & documentation is prepared.
August 1, 2007 City receives information from State Department of Revenue on Aids.
August 3, 2007 City Council Receives Draft Budget.
August 20,2007 Council workshop on budget draft.
(Workshop #2. Monday 5:00 p.m.)
September 4, 2007 Resolution adopting proposed budget and authorizing proposed property tax.
September 17, 2007 "Proposed Tax Levy Certification" to Scott County Auditor.
September 17-28,2007 Department refinement by City Manager, Finance Director and Dept Heads.
October 1-15,2007 Final draft Manager's budget.
November 12-16,2007 County mails truth-in-taxation notices.
November 19, 2007 Council workshop on final budget draft.
(Optional Workshop #3 . Monday 5:00 p.m.)
December 3, 2007 TNT Budget Public Hearing - Monday 6:00 p.m.
December 10,2007 TNT Budget Public Hearing - Monday 6:00 p.m. (if continued).
December 17,2007 Budget Adoption & Final 2008 Property Tax Levy Approval.
December 28, 2007 Statutory deadline to file tax certification with Scott County Auditor's Office.
H:\BUDGETlBUDTIME.DOC
Step #1
Step #2
Step #3
Step #4
Step #5
Step #6
Step #7
Step #8
Step #9
H:\TAXlTAXEST08.DOC
2008 PROPERTY TAX DOLLAR ESTIMATE
2006 New Residential Construction
(per Year End Building Permit Summary)
2006 Building Permit Report units:
Single family 84
Townhouse units 82
2007 Tax Capacity Rates
Average single family market value
Average townhouse market value
Estimated New Tax Capacity Valuation
$44,439,000 x 1.00%
$17,580,000 x 1.25%
Prior Lake 2007 Tax Capacity Rate
Prior Lake 2007 Market Value Rate
New City Property Tax Dollar Calculation
.28435 x $664,140 = $188,848.00
.0004038 x $62,019,000 = $ 25,043.00
Net New City Property Tax Dollars Available
for 2008 Operating Budget
(Residential) $44,439,000
(Multi-unit) $17,580,000
Residential - 166
1 st $500,000 - 1.00%
> $500,000 - 1.25%
$351,000.00
$181,000.00
$664,140.00
28.435%
0.04038%
$213,921.00
"'$215,000.00
(1.85% offset to 2008 Budget inc.)