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Home My WebLink About8B - 2000 Budgets and Final 2000 City Property Tax Levy MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: STAFF AGENDA REPORT ~~CEMBER 20, 1999 / J i RALPH TESCHNER, FINANCE DIRECTOR / CONSIDER APPROVAL OF RESOLUTION 99-p. ADOPTING 2000 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2000 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 2000 Operating Budget and Enterprise Fund Budget and to determine the City's final 2000 property tax levy for certification to the Scott County Department of Taxation Office. History: Early in the year the City Council established a top priority goal to adopt a 2000 General Fund Budget which provides needed services while maintaining the existing property tax level and, if possible, to provide a property tax decrease. 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 2000 operating budget. Subsequently, the Council conducted a preliminary workshop on June 7, 1999 for the purpose of providing direction to staff on program priorities. A second workshop was conducted on August 19, 1999 where the Council reviewed a proposed 2000 draft budget and programs associated with it. On September 7, 1999 the City Council approved a proposed budget and initial levy under Resolution 99-86 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 6, 1999 attended by one Prior Lake taxpayer. Public input from one individual was offered and the public hearing was closed. Current Circumstances: The 2000 budget proposed by the City Manager achieves the City Council's objective of decreasing the city portion of the property tax for the majority of Prior Lake residents. Two small modifications were made to the proposed budget that was initially reviewed by the H:\BUDGET\99BUDRPT.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER H:\BUDGET\99BUDRPT.DOC Council three months ago. The first change was to delete the council salary increase that did not receive council support when considered in early November. The second change in your "2000 Prior Lake Budget Document" is the Fire Department response hours which were increased to 9,000 hrs. This was the result of reviewing the final number of call hours (9,046 hrs.) that were recently submitted for this past year. Attached is a memorandum from Fire Chief Bruce Sames which addresses the increase. Three reasons were responsible for the volunteer personnel cost adjustment: 1.) Community growth 2.) New mandated call responses 3.) Fire Department roster increase It was important to reflect this actual cost adjustment in the 2000 budget because the City receives approximately 36 cents for each dollar of its fire department costs back from the townships of Credit River and Spring Lake. These small changes produce a net budget increase of $8,334.00. However, they do not affect the property tax levy amount because of the higher township aid that will occur plus the remaining difference was offset with a credit adjustment to the miscellaneous revenue category within interest earnings. Therefore, an amended $7,334,944 Operating Budget is submitted for Council approval. This budget represents an increase of approximately 3% above the current level of expenditures, and will produce a final property tax levy of $4,866,728 that includes a revolving equipment fund levy of $250,000 and $667,000 of special debt levies. The tax levy amount is actually $2,000 less than the preliminary levy approved by the City Council on September 7, 1999 because the special debt levy for the Candy Cove/Lakeside Manor improvements was originally projected at an annual support level of $84,000. But when the City issued bonds in October of this year we were able to obtain more favorable financing than originally anticipated thereby reducing our special levy requirement to $82,000. The total property tax levy increase amounts to $63,731 or 1.3% higher than the current year. The 2000 General Fund Operating Budget includes an additional police officer that was requested by the City Council plus the revenue and expenditure adjustments that were made to the initial proposed budget as explained above. Also requested for approval is the 2000 Enterprise Fund Budget of $1,829,183 which reflects an increase of 5.86% above this year's budget. No changes have occurred in this budget from the original draft. ALTERNATIVES: RECOMMENDATION: RECOMMENDED MOTION: REVIEWED BY: Attachments: H:\BUDGET\99BUDRPT.DOC Also included for reference purposes is a copy of the letter to the Scott County Department of Taxation which rescinds the City's original resolution supporting an EDA levy, thereby eliminating the proposed $76,000 property tax levy. This action will also reduce the property tax amount indicated in the resident truth-in-taxation notices. The following alternatives are available to the City Council: 1. Approve Resolution 99-XX Adopting 2000 Prior Lake Budgets and Certifying Final 2000 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. 2. Amend Resolution 99-XX according to specified Council changes. Alternative 1. Staff would recommend that the City Council approve the resolution as submitted as this is the last regular meeting date in 1999. 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, 1999) as prescribed by Minnesota statute. Motion and a second to approve Resolution 99-XX Adopting 2000 Prior Lake Budgets an ICertifying Final 2000 City of Prior Lake Property Tax Levy to ((ott County Department of Taxation. ~ / I 1. Res ton 99-XX Adopting 2000 Prior Lake Budgets and Certifying Final 2000 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. 2. Prior Lake Volunteer Fire Department Memorandum 3. Copy of ED A Levy Rescission Letter to Scott County. RESOLUTION99A /~cr RESOLUTION ADOPTING 2000 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2000 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION MOTION BY: SECOND BY: WHEREAS, The City Council of the City of Prior Lake hereby adopts the 2000 General Fund Operating Budget in the amount of $7,334,944.00 and an Enterprise Fund Budget of $1,829,183.00 following a period of comment and discussion during the course ofa public hearing held December 6, 1999; and WHEREAS, The City of Prior Lake's operating budget tax levy IS hereby equivalent to $3,949,728.00; and WHEREAS, The revolving equipment fund levy amount is calculated to be $250,000.00; and WHEREAS, Special debt levies account for an additional tax levy of $667,000.00; and WHEREAS, The total property tax levy approved has been determined to be $4,866,728.00. NOW THEREFORE, BE IT RESOLVED BY THE 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 2000: Purpose Amount * For General City Purposes $2,917,559.00 * For Opt-out Transit Purposes $317,459.00 * Revolving Equipment Fund $250,000.00 * G.O. Improvement Bonds '93 (Waterfront Passage) $178,000.00 * G.O. Improvement Bonds '94 (Prior South) $65,000.00 * G.O. Improvement Bonds '95 (Ridgemont) $110,000.00 * G.O. Improvement Bonds '96 (Northwood) $70,000.00 * G.O. Improvement Bonds '97 (Pike Lake) $85,000.00 * G.O. Improvement Bonds '98 (Duluth) $77,000.00 * G.O. Improvement Bonds '99 (Candy Cove) $82,000.00 ** Fire Hall Referendum Bonds '93 $162,340.00 ** Park Referendum Bonds '97 $552.370.00 Total... $4,866,728.00 Note: Single starred funds shall be spread over the entire consolidated City of Prior Lake. 162IT~g9~Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 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 20th day of December, 1999. YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} City Manager City of Prior Lake OOTAXRES.DOC , " "" Y- Prior Lake Volunteer Fire Department MEMORANDUM TO: g'r FROM: DATE: November 18, 1999 Ralph Teschner, Director ofPinance Bruce Sames, Fire Chief SUBJECT: Fire Department Budget Early in the budget process, 475 calls were estimated for the year 2000. Final numbers for 1999, (496 calls) indicates that department responses in the year 2000 will rise approximately 8% to 535 calls and the average man-hours per incident will rise from 16 to 17. Reasons for the increase in calls and man-hours are as follows: . An increase in calls can be attributed to growth, and a newly mandated response to natural gas leaks. . An increase in man-:-hours per incident can be attributed to the expansion of the Fire Department's roster from an average of thirty-six members to a current forty-three members. The Fire Department recruited additional personnel to provide better response during the daytime when there is limited personnel. There has also been an increase in more serious or hazardous types of events. Generally, these last longer than the average one hour call and increase the total man-hour average. Based on a projected 535 calls at seventeen man-hours per call (535 x 17 = 9,095), I would recommend increasing the total man-hours in the 2000 Budget to reflect at least 9,000 man- hours. FBUDGET.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, MN 55372/ Ph. (612) 447-4230/ Fax (612) 447-4245 December 10, 1999 Scott County Government Center Department of Taxation Attention: Cindy Geis .200 4th Avenue W. Shakopee, MN 55379-1220 RE: Rescission of City of Prior Lake EDA Proposed 2000 Tax Levy Dear Cindy: . The Prior Lake City Council at its December 6, 1999 council meeting rescinded its original resolution certifying a proposed 2000 EDA property tax levy. Attached is Prior Lake City Council Resolution 99-133 which eliminates the proposed $76,000 levy in its entirety for payable 2000. Please direct any questions or comments regarding this property tax levy reduction authorization to my attention at 447-9841. Sincerely I~~ Ralph Teschner Finance Director City of Prior Lake 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER H:\TAXlCOUNTY2.DOC