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HomeMy WebLinkAboutJune 16, 1997 . ....... ..n ... "" .......... .. . .., . CJ....f'j....'J!.....y.. .. .(f)..tJf..... ~.....71... 'j..{)..... fl.... . L'" ilK....... .IE.... . -.. ,. ... . ... .. . - ....... .. . .... . ..,. ..... .. " .. -- -. .,..... ..... .. ... . ".". - - - ... "... .. .. . . '.. .. . ....,. .n . . . .. ," ::::..,:-/ . ,"", :. ." :. '," . ..... . '. ." ..... ',,' . "." '"." ":,": ,',:- . .. -.. ...,........." . .. .. -.. . . .".. .... ., .... ...,,,. . ,... -.., ... . . . .... . . - . . . ... '.. . .. n_,. ... ... ... ..... ... ... ... ..... .......". ........................ ' . . .. . ....,.... ... . .. , '" ,,, "' ' . . . ..... , ... ..... Nl.... 'E"''MJ'' "'rtJ. ...iJ!l....Jt.. N" J!)..... .'f:.t'" ....... ". .. .... - . . ... '.' . .. . ... ... -,.,... .... .. .... .'. .... . ...." . "'" .... ....... ............. ..... ., .... . .. ., . ...... '... ...... -, . ... -.... ....,....... ., .... -. . ,..., ... ... - , . . -. '. .,.. ,....,.,.. '.' ... - ... '.....".. . .. '. ................... .......... .:......< :t::.' .....:..:....:.....:: Mayor and City Council /:J\" '\ Frank Boyles, City Manager~\ ' June 16, 1997 TO: FROM: DATE: SUBJECT: Budget Study I Workshop, June 16,1997 As the Council is aware, Budget Study Workshop I is scheduled for 5:30 p.m. Monday, June 16, 1997. The purpose of this workshop is to solicit input from the City Council regarding expectations for 1998 Budgeting. The attached agenda contemplates a review of the budget preparation calendar and a brief staff presentation regarding legislative changes which affect our 1998 budget. The primary focus of the session is under 4), entitled, "City Council Direction to Staff for 1998 Budget". The staff seeks the Council's thinking on Council salaries, new City programs, existing program priorities and other concerns. With this information, the staff will be better able to prepare a budget which is responsive to the Council's policy direction. H:\CMANAGER\MEMO\BSTUD97. DOC GOVERNMENTAL FUND DESCRIPTIONS City of Prior Lake A brief description of the City's established funds is outlined below. In practically all cases these funds are dedicated for specific public purposes. General Fund - The General Fund represents the necessary resources to support general operating budget expenditures of the City. The year-end fund balance represents dollars that have accumulated over a period of time as a result of cumulative budgetary revenue surpluses and expenditure under runs. The City Council has designated a portion of this amount, equal to 30% of the current operating budget, for working capital to finance city operations. Sewer & Water Fund - The Sewer and Water Fund accounts for the collection of sewer and water billing utility revenue. This enterprise fund balance is allocated for the operational costs of the Water/Sewer departments and normally reserved for large capital municipal system expenses. Storm Water Fund - The Storm Water Fund is funded by the $3.75 storm water charge on the water bills and is dedicated to finance water quality improvements including departmental administration, storm water maintenance operations and improvement projects such as water quality ponds. City Store Fund - The City Store Fund was established recently to provide city logo merchandise to the residents as a public relations effort to promote the community. These funds are designated to purchase such stock as clothing, mugs and souvenirs. Capital Park Fund - Capital Park funds are dedicated funds generated by the 10% park dedication fee as a result of new development and by park support fees on new construction building permits for the purpose of developing the City's neighborhood park and trail system. These dollars are programmed throughout the course of the city's capital improvement plan. Severance Compensation Fund - This fund was established to partially fund the City's compensated absence liability which is associated with the accrued vacation and sick leave for employees upon employment termination. The State Auditor's Office has recommended that local governments set aside a certain percentage on the basis of foreseeable turnover. EDC Loan Fund - This fund was created to account for the proceeds of an economic development grant which was received from the State of Minnesota to provide seed money for a revolving loan account. The purpose is to provide economic incentive for new business expansion within the community. 16200 Eag}ecCreek Ave. SE, Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Tax Increment Funds - The Tax Increment Fund represents an accumulation of funds such as bond proceeds and project administration fees charged to companies requesting project write downs in the form of tax increment financing for new and/or redevelopment. The TIF district property taxes are then deposited in a number of tax increment funds established to track their respective revenue. Revolving Equipment Fund - A regular replacement schedule for equipment needs of the City in excess of $5,000 has been adopted. Periodic fund transfers are appropriated to provide supplemental revenue to finance the acquisition and purchase of new and replacement vehicles and equipment. The long term effect of contributing occasional fund contributions is to mitigate property tax increases and eliminate debt financing. Building Fund - The funds within the Building Fund are bond proceeds from the issuance of water revenue bonds necessary for the construction of the maintenance facility. The CFAC (capital facility) charge of $7.50 on each utility bill is reserved to pay the bond principal and interest installments. Construction Fund - Construction Fund dollars represent unexpended bond proceeds which are reserved to pay for improvement projects that have been approved by the City Council on an annual basis. For the most part, these moneys are necessary to complete outstanding construction contracts and related engineering and professional services. Park Referendum Fund - Park Referendum Fund dollars represent unexpended bond proceeds which are reserved to pay for improvement projects that have been authorized by the City Council and approved by the voters as a result of the referendum election conducted during 1997. For the most part, these moneys are necessary to complete outstanding construction contracts and related engineering and professional services associated with those identified park improvements. Trunk Reserve Fund - The Trunk Reserve Fund consists of dedicated revenue generated from utility connection permits and acreage fees assessed at time of sewer and water installation for the purpose of recovering trunk oversizing costs and central municipal system improvements i.e., wells lift stations, force mains, etc. These dollars are programmed throughout the course of the city's capital improvement plan. Collector Street Fund - The Collector Street Fund consists of dedicated revenue generated by fees associated with new development and new construction building permits for the purpose of funding pedestrian related improvements i.e., bikeways, sidewalks, trail systems plus right of way acquisition along collector streets and occasional collector street links. Debt Service Fund - The Debt Service Fund represents prepayments of special assessments, property tax collections and special levies needed to amortize the outstanding bonded indebtedness of the City. This fund balance is 100% reserved for the payment of bond principal and interest. H:\INVEST\FUND.DOC DAG Soecial Revenue Fund - The DAG Fund is a special revenue fund to account for project engineering and inspection fees that are collected as a result of a developer's agreement contract. The fees are paid to the City by the developer when the contract is executed at the time of final plat approval. These revenues are used to pay for legal expenses and inspection services on developer installed utilities including sewer, water and street installation for newly approved subdivisions within the City of Prior Lake. Agencv Fund - The Agency Fund accounts for the $1500 residential building permit deposit that is refunded to the building contractor upon final inspection. This provides the City the required financial assurance that the property site will be adequately cleaned up and debris free before an occupancy permit is granted. Because city funds are pooled for investment purposes, interest is allocated to each fund on a quarterly basis, and is based upon each individual fund's proportionate share of the total amount. Overall the total investment pool does not represent excess reserves but rather available financial resources. In most instances these funds were established and restricted for specific and designated purposes by either Minnesota Statutes or City Code to accomplish the goals and objectives of the City of Prior Lake. H:\INVEST\FUND.DOC DATE: TO: FROM: SUBJECT: June 18, 1997 ~ Jay Scherer, IN!) l'To ar, Bret Woodson, Verlyn Raaen Frank Boyles" "- City Wide Carpool ystem With the adoption of the revolving equipment fund, the City Council has provided us with a means of assuring that equipment can be replaced before it becomes undependable and a safety hazard. In return, the Council expects that equipment we own will be used and maintained in an optimum fashion. I would like the four of you to put together a City Wide Carpool Program through which individuals who may not be heavy vehicle users can check out City automobiles from the pool for business related use. The vehicles in the pool would be available to: any individual who does not receive a monthly mileage allowance for use of their private vehicle and anyone who is not assigned a City car to conduct City business. Please provide me with a written proposal which would establish a City Wide Carpool program which addresses the following areas: 1. An inventory of each of the City's automobiles excluding squad cars to determine which, in your opinion, should continue to be assigned to individuals and which could be assigned to the City Wide Carpool. Please provide your rationale for individual and pool assignments. 2. Identify the users by department who require a vehicle assigned to them and the rationale for such assignment as well as occasional users in each department who would be carpool system users. 3. Create a simple but effective written administrative process which will identify where pool cars will be parked, where to get the keys, and the check out and check in procedures. Also indicate the type of information which each driver will be responsible for providing when using the system, as well as the driver's responsibility for car maintenance, i.e. refueling, fluid check, etc. Please provide me with your draft written proposal addressing each of the above issues by Monday, June 30th. I would appreciate a status report on your project no later than Monday, June 23rd. If you would like further clarification, please let me know. Thanks in advance for your assistance in assuring that we make the best use of the equipment provided to us by the City Council and ultimately the taxpayers. cc: Paul Hokeness, Don Rye, Greg Ilkka sf 62397 lI:\C1\JANAGER\VROi. :J)"' 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER f June 18, 1997 State Senator Claire Robling Room 177 State Office Building St. Paul, MN 55155 SUBJECT: Special Session Legislation DearS~: Q..\O:\r<- In an effort to provide the necessary financial wherewithal to purchase vehicles and mobile construction equipment each year, the City of Prior Lake initiated an equipment revolving fund earlier this year. Prior to the legislature's reinitiation of levy limits, this change would not have been noteworthy. However, with the reimplementation oflevy limits, Prior Lake's taxpayers would have been penalized. Over the last twenty years the City of Prior Lake has relied upon debt financing in the form of equipment certificates which have required an average annual repayment of approximately $250,000. This 3250,000 repayment is considered a special levy under levy limit statutes and therefore is not subject to the levy limit law. Our revolving equipment fund levy in this exact amount would be considered a general levy and therefore subject to the levy limits which would penalize Prior Lake by restricting our levy for next year. Since this amount is greater than our allowable levy increase for payable 1998 we would actually have to either cut services or continue to issue debt to finance equipment acquisition which is more costly to the taxpayer. Fortunately, my Finance Director Ralph Teschner had the opportunity to speak with Rich Gardner at the State Department of Revenue. Rich met with the legislative analysts for the House and Senate, and they concurred that the City should not be penalized for taking steps intended to save the taxpayer interest dollars. The committee agreed to roll the levy into our base in a fashion that would not create a penalty. I provide all of that background for two reasons: 1) Please convey our thanks to Rich Gardner and the legislative staff for taking prompt action to resolve what would truly have been a taxpayer-averse situation. 2) There are likely to be other Cities who are similar in their situation to Prior Lake, and you may wish to offer A:\SENAC.DOC 16200 Eagle Creek Ave. SE, Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER p2/2 legislative amendment to the Omnibus tax bill which would establihs a special levy for revolving equipment funds. If I can be of any assistance, please let me know. Sincerely, 1J Frank Boyles City Manager cc: Gary Carlson, League of Minnesota Cities Ralph Teschner, Finance Director Mayor and City Council A:\SENAC.DOC June 19, 1997 State Representative Becky Kelso 415 State Office Building St. Paul, MN 55155-1298 SUBJECT: Special Session Legislation D~ In an effort to provide the necessary financial wherewithal to purchase vehicles and mobile construction equipment each year, the City of Prior Lake initiated an equipment revolving fund earlier this year. Prior to the legislature's reinitiation of levy limits, this change would not have been noteworthy. However, with the reimplementation oflevy limits, Prior Lake's taxpayers would have been penalized. Over the last twenty years the City of Prior Lake has relied upon debt financing in the form of equipment certificates which have required an average annual repayment of approximately $250,000. This $250,000 repayment is considered a special levy under levy limit statutes and therefore is not subject to the levy limit law. Our revolving equipment fund levy in this exact amount would be considered a general levy and therefore subject to the levy limits which would penalize Prior Lake by restricting our levy for next year. Since this amount is greater than our allowable levy increase for payable 1998 we would actually have to either cut services or continue to issue debt to finance equipment acquisition which is more costly to the taxpayer. Fortunately, my Finance Director Ralph Teschner had the opportunity to speak with Rich Gardner at the State Department of Revenue. Rich met with the legislative analysts for the House and Senate, and they concurred that the City should not be penalized for taking steps intended to save the taxpayer interest dollars. The committee agreed to roll the levy into our base in a fashion that would not create a penalty. I provide all of that background for two reasons: 1) Please convey our thanks to Rich Gardner and the legislative staff for taking prompt action to resolve what would truly have been a taxpayer-averse situation. 2) There are likely to be other Cities who are similar in their situation to Prior Lake, and you may wish to offer A:\SENAB.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER p2/2 legislative amendment to the Omnibus tax bill as appropriate to address this' situation, which would establish a special levy for revolving equipment funds. If I can be of any assistance, please let IDe know. u' Frank Boyles City Manager cc: Gary Carlson, League of Minnesota Cities Ralph Teschner, Finance Director Mayor and City Council A:\SENAB.DOC 3470 Sycamore Trail SW Prior Lake! MN 55372-2342 (612) 440-1069 June 11, 1997 Mr. Frank Boyles, City Manager City or Prior Lake 16200 Eagle Creek Ave. S.E. Prior Lake, MN 55372 Dear Frank, First, be reminded that I will not be available for the June 16 budget workshop or regular Council Meeting. Second. I was stunned by the note that you included WILD thp. June 6 Weekly Update wherein you stated that I had "~sked Kirsten to revise our method or minute taking" at Council meetings. This is simply not true. As a matler of fact. I called Kirsten to advise her that my co~nents at the last meeting regarding some changes I wanted reflected in the rninutes were not directed at her. r also made some 9Emeral COTIiil1ents regarding the difficulty she must have trying to decide "\That to include and \lJhat not to . , , InCluoe.. If my commenrs were misinterpreted, I regret it. Kind regards, r t/LJ~ 1~es Mader - AGENDA BUDGET STUDY SESSION I June 16, 1997 5:30 p.m. 1) CALL TO ORDER 2) BUDGET PREPARATION CALENDAR (Attachment I) 3) BUDGETING CLIMATE · Compression of Classification Rates (Attachment 2) · LGA, RACA and Performance Aid (Attachment 3) . Valuation Growth Estimates · Comparison of Levy Limits to Established Council Spending Limits (Attachment 4) 4) CITY COUNCIL DIRECTION TO STAFF FOR 1998 BUDGET · Council Salaries (Attachment 5) · Existing Program Priorities (Attachment 6) . New Programs . Other Direction 5) ADJOURN 7:00 p.m. R:\COUNCILlAGENDAS\BUSTUD97.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Prior Lake 1998 OPERATING BUDGET r~' ..- ---'', :c' , . Timetable & Process for Completion :::::::::::::::::::::::::::::::::::::::::::::::::::::uiw::::::::::::::::::::::"':'::::::::::::::::::::::n'::$~im!::.::r:::::::::::::::::::::::::::::':::::::::::::::::::::':::::::::::::::::::::::::'::::::::::::::::::::::::::::":::::::::::::::::::Iillm::::::""::::::::::::::::':::::::::::::::::'::::::::::::::'::::::::::::::::"::::::::::::::::::::::::::::::::::::::::':::::::::::: May 19, 1997 City Council formal approval of budget timetable. June 2, 1997 Distribution of budget aids and timetable. June 3-17, 1997 Department heads conduct staff meetings to receive input on 1998 needs and prepare budget draft. June 16, 1997 Council input of Budget Programs & Priorities (Workshop #1- 5:30 p.m.)) June 18, 1997 Deadline for submission to Finance. June 23-27, 1997 . . .. . . . , Budget information consolidated by Finance. June 30 - July 11, 1997 City Manager confers & reviews with each department head. July 14-25, 1997 Budget draft & documentation is prepared. August 1, 1997 City receives information from State Department of Revenue on HACA and local government aids. August 11, 1997 Council workshop on budget draft. (Workshop #2 - 5:30 p.m.) September 2, 1997 Resolution adopting proposed budget and authorizing proposed property tax. September 3, 1997 "Proposed Tax Levy Certification" to Scott County Auditor. September 8-26, 1997 Department refinement by City Manager, Finance Director and Department Heads. October 1-15, 1997 Final draft Manager's budget. November 7-21, 1997 County mails truth-in-taxation notices. December 1, 1997 Council workshop on final budget draft. (Optional Workshop #3 - 5:30 p.m.) December 3, 1997 TNT Budget Public Hearing - 6:00 p.m. December 10, 1997 TNT Budget Public Hearing - 6:00 p.m.. (if continued). December 15, 1997 Budget adoption & Final 1998 Property Tax Levy Approval. December 30, 1997 Statutory deadline to file tax certification with Scott County Auditor's Office. H:IBUDGETIBUDTIME.DOC A+\~ l \JU'-tA-\- 2-. CLASS RATE CHANGES 1997 OMNIBUS TAX BILL Property Type Current Law New Law Homestead First Tier < $72,000; 1.0 percent class < $75,000; 1.0 percent rate class rate Homestead Second Tier > $72,000; 2.0 percent class > $75,000; 1.85 percent rate class rate CommerciallIndustrial < $100,000; 3.0 percent < $150,000; 2.7 percent First Tier class rate class rate CommerciallIndustrial > $100,000; 4.6 percent > $150,000; 4.0 percent Second Tier class rate class rate Apartments With 3 Units 2.3 percent class rate 2.1 percent class rate or Less Apartments With 4 Units 3.4 percent class rate 2.9 percent class rate or More Cabins First Tier < $72,000; 1.5 percent class < $75,000; 1.4 percent rate class rate Cabins Second Tier > $72,000; 2.5 percent class > $75,000; 2.5 percent rate class rate RGR:jjp:8993_1.W5h I 1997 LGA Porter 36,187 ~ Preston 306,382! Princeton I 395,843: Prinsburq i 84,267 : Prior Lake 27,273 I Proctor 444,515 i Quamba 2,6191 Racine 16.429 ! Ramsey 329,845; Randall 52.634 1 Randolph I 9,564 : Ranier 18.045 i Raymond 109.465, Red Lake Falls 357,104 i Red Wino 37,920 I Redwood Falls 982.913! Reoal 721 , Remer 49,7531 Renville 280,762 ' Revere 21,713 ! Rice 18,729 ' Richfield 3,361,777: Richmond i 111,830 : Richville 3,568 . Riverton I 9,974 Robbinsdale 1,613,340 : Rochester 6,115,331 , Rock Creek 34,8181 Rockford 299,641 Rockville 34,450 I Roqers 648 1 Rollingstone 57,093. Ronneby 1,270 i Roosevelt 3,909 Roscoe 6.344 : Rose Creek 56.417 ! Roseau 267,477 : Rosemount ------f--- 38~!1J ~L Roseville ___ __ 67,98~ ~thsay-_____ __ ____ 56.434_1, Round Lake 35,181 i --t----------~ Rovalton ____ 57,21!li_ . Rush City 216,966.L Rushford 206,459 I Rushford Village'-f-- 33,561 i Rushmore -~, 50,0011: Russell 86,828 I Ruthton 49,5851 -_, RutJed~_______ _ _ ----1,Z?~t- Sabin 29,397, Sacred Heart_______=:_155,~~~ Sanborn 69,715 I Sandstone _,--296,8-17T Sargeant _h_ _~57~+ Sartell___ 253,37~ Sauk Centre 778,084, '-- --- --..--- --'-'--- - --'-r- Sauk_Bapids 1 ,04~! 1_:.?4 L June 4, 1997 36,922: 735 I 316,0161 9,6341 399,403 i 3,560 i 86,506 I 2,239 ; 27,2731 0 I 459,452! 14,937! 2,891 : 272 i 17,1131 6841 336,747! 6,902 i 54,364! 1,730 i 9,895; 331 I 18,5621 5171 112,535 i 3,070 ! 367,2911 10,1871 37,920! 0 I 1,008.757: 25,844 i 834' 113i 51,535, 1,782! 292,934' 12,172 I 22,117' 404 i 20,467' 1,738 i 3,417,942; 56,165 r 115,100! 3,270 ! 3,873 i 305 i 9,974' 01 1,648,329; 34,989 i 6,111,083 I (4,248~ 40,5191 5,701: 305,732 i 6,091 , 36.474! 2,024 i 7,382! 6,734; 58,935 i 1,842 : 1 ,442 ! 172 ! 4,251 ; 342 i 6,933 ! 589 ! 56,907: 490 i 280,2151 12,738 i ~79~50Q.L _ {~6J3j 94_.?~~L 2~,8111 57-,-8_3~L 1,401 ; 36,2231 1,042 I ---,-- -<--- -- -- - - I 60,3051 3,087 i 'h____~ ,- "__'___1 229.1]13_4_f 1~2181 214,31 ~l- _ ,.-?!-85_8.J '- ~~:;~~t~- -1,~~~ 1 __88,8?J~_ 1,9~3_j __~O,8~?+__ 1_1250_ -~~~~jtr -,-,~~~~ L58,Z~_L _ _ _~.41~ -~~Ji- ...1~~~1 2ffi~~~r -- 8,-'-~;1 - ?~3.1_1~ - _ 1,~!029J 1 ,0?1.?g3 i 24,459 ! AlL" ,:_ r- ,1~(',\'J\i"'.J ......~ 1997 HACA Estimated 1998 HACA HACA i Change ! 1997-1998 : ;tC. \, l \ L / or fL. t") \-~ 1\ 0- ~ c-- S ~\ \'Y\ 0... ,eO. L::, 1\ ~ Estimated LGA 1998 Change LGA 1997-1998 6,033 I 6,0331 0 I 123.987' 124,056; 69~ 180,174; 180.231' 57' 35,485 i 35,485 , 0 : 901,135i 905,681: 4,546: 203,325. 203,393: 68 i 1,191 1,191, 01 10,770! 10,770: O! 505,676! 505,713 ! 37 ~ 20,254: 20.2571 31 9,234; 9,234; 0 i 2,133 t 2,160 I 27 ! 39,566 ~ 39,566 0 ; 140.680: 140,680: 0 ! 1,188,157 1,188,680' 523: 355,180 I 355,180 0 I 1,424 1.424 0 . 14,222. 14.365. 143: 1 21 ,904 121 .904 0 1 6.407 6.407 0 ! 23,532 23,557 25. 1,848.733 1,848,733 0' 64.968 65,027 59 . 1,910 1.910 0: 4.854 5,193 339 897,072' 897.072 01 4,370,077 . 4,370,769 692 33,720 34,226 506 . 115,345 115,345 0 21,286. 21.286 O. 20.434 20.434 0 · 46,391 . 46,391 0 I 1,288 1.288 0 ' 548 551 3 ! 4,709 4,709 0' I 22.213 22.213: 0: I-~~~:~~~ ___~.~~:~_~: ___,._ g: 1_1)]51,015: 1,751,124 . 1091 1._ _.__?1 ,.5.24. :?1',}324:- =-=- 0-1 25,902! 25,902! 0 I ---'---'-." t----.. "'--- 1---------4 29.912: 29,912:. 01 - - u __,____,_____ _ __, ~____~ 72,331 , 72,346: 15! - ---- -.--.,-~-----........- .--.- ----1 103,014! 103,014; 0 i .-.-.-.-.- --...l--------t-.---__-i 40,639 ~ 40,691 . 521 -'---fi~58T' 17,658 at ------ 2i,485r-- 27A85r---01 .----.--.-~ ~.-.-- -_.. .j- --"-------t 12,4421 12,442 OJ 2,649r-- 2,916:---- 267~ 42,106 i ---42:f06:-----0'1 u ,=--=~~~~~~ i=- ~~:~~~ ~ -=--==~~ I. ~---~(111J --=-)~,1?~r~=~'~~~~~ 1-51 ~ n__ _2.!;3~;3L ,. _ . ~,363 -i- _h__ ~ l_~-. ~~'~~}~~ r - ~ ~~~: ~~~ :u --- -_~, =-2; 1 . 346,085 . ~46,087 . 2: II Estimated , 1998 i LPA 262 1,951 4,842 635 16,647 3,826 166 401 20,040 737 436 247 847 1,884 19,909 6,510 61 437 1,750 141 846 44,680 1,326 156 156 18,013 97,075 1 .409 3,768 796 1,527 935 66 230 176 483 I 3.411 I ___ ]4.862, I' 43,038 1- _~_ _ 559 ~___ ___ 5~7 . f---- ~~~;; i _,' .~. -_2,035 . k!i~! I ____ 210 I' 642: r~-J~~! I- _ <__ . ~ i 98 ~,- -~-_ _~,677 I I 4,752; , 11,686 P 13 INTEROFFICE MEMORANDUM TO: FROM: RE: DATE: Frank Boyles, City Manager Ralph Teschner, Finance Director Est. Levy Limit Increase Calculation May 19, 1997 Outlined below is an estimated maximum levy calculation according to the levy limit formula proposed by the Legislature for taxes payable 1998. Levy Limit Determination: Step #1 1997 Tax Levy + HACA +LGA +LPA = Gross Levy Limit Step #2 Step #3 Step #4 Step #5 Step #6 Stiiip#7 - Debt Levy = Levy Limit Base 2.5% IPD (Implicit Price Deflator) plus 3,8% HG (Household Growth) (1995-96 ... 173/4534) = Increase Multiplier 1998 Budget Levy Limit Increase (Multiply #2 by #3) Projected GeneraIlCIP Debt Increase Referendum Debt Increase Ma~:imuwStll:tuto,ry..199g.Levyl.JtcrC:ii$C: $3,852,948,00 $901,135.00 $16,530.00 $14.803.00 $4,785,416.00 <$1.166.760,00> $3,618,656.00 2.5% 3.8% 6.3% $227,975.00 $71,241.00 $510,445.00 $8W),661;OO Under the City Council's zero tax increase position the following tax scenario is projected: Step #1 Step #2 Step #3 Step #4 Step #5 Step #6 Step #7 1997 Tax Capacity Valuation 1997 Tax Levy (less fiscal disparities) Est. 1998 Tax Capacity Valuation Increase (New construction valuation only) Est. 1998 Tax Capacity Valuation (unadjusted for inflation) Zero % Budget Tax Levy Increase Zero % CIP Tax Levy Increase 1998 Zero % Total Tax Levy Increase Referendum Debt Increase . MiiXimliltl. Q(jl.iltcil199S. teVy' lj}~rC:J:t$~ $9,687,543.00 $3,435,231,00 $657,943,00 $10,345,486.00 $154,563,00 $78.771.00 $233,334.00 $510,445.00 H:\BUDGETIMEMTAX98,DOC 16200 Eagle Creek Ave. S.E" Prior Lake, Minnesota 55372-1714 / Ph, (612) 447-4230 / Fax (612) 447-4245 $'743;7'79;OOH AN EQUAL OPPORTUNITY EMPLOYER Hierarchy of Plans "The difference between effective organizations is the will to act - - the planning process is a waste of and ineffective without the will to act, time." Leon Sclumpeter I. Strategic Plan and Budget (The Mother of All Plans) A. Goals prioritized by the City Council B. Council direction and City Manager legislation of the plan. C. Budgeting Process II. Departmental Plans A. Overall goals and objective by Department B. Individual Departmental goals and objectives C. Departmental Budgets III. Internal Work Environment A. TTT mission, goals, obj ectives, action plans B. Shared goals and expectations C. Cross-functional task teams D. Budget IV. Individual Work Plans A. Individual goals and objectives B. Performance Reviews C. Compensation & Rewards 1. Each tier of the Hierarchy of Plans must fill the needs of the one above it and set the needs for the one below it. 2. Agreement on action plans builds commitment, which is more useful than compliance. 3. By answering the question, "What difference will this strategy make," we learn whether the strategy fits the strategic plan. If a strategy does not fit, it needs to change. If several strategies do not fit the plan needs to change.