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Home My WebLink About9A - 2000 City Tax Levy I ,-. MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: i' i' .7 16200 Easrleereek Ave. S.E.. F "" STAFF AGENDA REPORT f~ SEPTEMBER 7, 1999 9A RALPH TESCHNER, FINANCE DIRECTOR "-. CONSIDER APPROVAL OF RESOLUTION 99-~ CERTIFYING PROPOSED 2000 CITY OF PRIOR LAKE TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION Truth in Taxation statutes require that each "taxing authority" adopt a proposed budget and certify a proposed tax levy for payable 2000 property~.to the. ScOtt County Department of Taxation on or before S~. IS, ,t..The purpose' is to allow the County adequoIlt~ll8Iadale*", maH ''I'rud1 in T_tion" =;:CJii~~~~ COlOlly. ..bool ~ ~ . Hqtpa: . The ...... "'Ajrtt\..~ ;- 1. ... ;-';"--l' ponOWiDg ~i___~"""~its ....fonnal budget workshop oni... 7. 1999. TI1<<! sttatqpCplJn was reviewed alOJilg =r~~=~:=::.; inCreasing ttt+ MVTAPproperty tax levy for transit services plus the possibility df an independent EDA levy subject to Council . 8ppn)Y8l. . .l I At..the~.\.,:.~.......... badaet study. session,CounW diRotioi~"'~bpt~.operatiDg budgctfor 2000 tijat I would ';1' '.' t~taX"tramt. The premise wu that atl a ~..ttnmm'...' um. J.........i.......:.......".....,:.m...srow!h. ....'... 'includiD.8 cap.... i.tal . .expend......i~.... associated ..'.th.f~y~ 2000 Capital. Itnprovem.t · Program, be ~ by_~s Cl'eJted b~~ !&1~on arov.tth . ..thecmmmmitv....... . .! IX (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER I H:IBUDGIll\PREAGRPT.DOC Budget Session II was conducted on August 19, 1999. Discussion revolved around the property tax impact of the proposed 2000 budget. A list of the following year 2000 budget policy issues were considered: . Mayor & Council Salaries . Two Squad Car Coverage . Street Sweeping Standards . Project Design & Oversight . Independent EDA Tax Levy . Southwest Metro Drug Task Force . Water Rate Increase It was recognized that the budget draft was austere especially in light of the fact that property taxes would decline by nearly 4% next year. But it was also acknowledged by some of the Council that although the strength of this budget proposal was a property tax reduction it also had its limitations with respect to police staffing and economic development commitment to the revival of Prior Lake's downtown business district. Concerns were also expressed about the implications for the 2001 budget. Current Circumstances: After Staffs presentation and City Council discussion, the direction was to bring back to the table for this meeting the possible addition of a police officer at a cost of $49,000 and an EDA levy that would provide $60,000 for land acquisition purposes and an additional $16,000 that would be appropriated to the EDA Revolving Loan Fund. Including these items into the proposed budget now would provide the Council maximum flexibility. It was understood that the City Council still intends to discuss these two points and that the final decision would be made at the final budget workshop that is tentatively scheduled for November 22, 1999. The Council is aware that atkr September 15th (statutory deadline for County certification) the property tax levy requirement for 2000 may only be adjusted downward or remain the same with the final budget adoption date established on December 20, 1999. Therefore, the attached resolution incorporates the addition of the police officer while the EDA lel!)l request is scheduled as a selJarate a,genda item as required bv law. As a result of this amendment, the proposed 2000 Operating Budget of $7,326,610 represents a 2.79% increase above the current year. A Budget Summary has been prepared showing the increases/decreases of each respective department. Personnel requests for 2000 in the general fund represent an increase of 1.00 FTE position (new police officer) above 1999 levels plus one additional part-time r~gular position within Central H:IBUDGE1\PREAGRPT.DOC Garage. Wages are projected to rise by approximately 3% due to contract required step increases and union wage settlements. Employee benefit increases are attributed to anticipated worker's compensation cost increases, an incremental increase in health insurance contribution and PERA pension contributions. Overall, the proposed "preliminary" tax levy of $4,868,728 IS comprised of the following elements: Purpose 1. General levy (exc. HACA aid) 2. Net Transit levy (exc. HACA aid) 3. G.O. Debt Service 4. Revolving Equipment Fund levy 5. Existing Special Debt levies 6. Est. 1999 Capital Project levy Gross Property Tax Levy (Less est. Fiscal Disparity Aid) Net Residential Property Tax Impact Amount $2,917,559.00 $317,459.00 $714,710.00 $250,000.00 $585,000.00 $84,000.00 $4,868,728.00 -$466.188.00 $4,402,540.00 The property tax levy represents a $65,731.00 increase above the levy certified for 1999. However, because our real growth valuation is expected to generate at a minimum $128,000 of new property taxes, the actual impact upon the residential property tax payer in 2000 will be a reduction. As shown on the attached computer generated tax impact analysis, (PL 2000 Property Tax prepared by Juran & Moody the projected annual city pro,perty tax based ul'on the estimated 2000 collectable tax capacity value. would be $854.81 on a $154.800 market value home. (avera~e market value home in Prior Lake as provided by Scott County Assessor's Office). This represents about a ~o/~ decrease in city property taxes from 1999 to 2000. The ctual property tax amounts will show a slight variation from these estimates due to the compression effect of property tax class rates for 2000. Conclusion: Resolution 99-XX delineates the levy breakdown and establishes the City of Prior Lake's Truth in Taxation budget public hearing dates. The dates and times selected and reserved for the city are Monday December 6,1999 at 7:30 p.m. and Monday December 13, 1999 at 7:30 p.m. in the event ofa Council continuation. By statute, the dates for both must fall between November 29 and December 20, 1999. Also, the initial hearing must not conflict with the County or the Metro taxing district which are indicated below: H:\BUDGETlPREAGRPT.DOC ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: Attachments: Taxing Authority Special Metro ISD #719 ISD #720 Prior Lake Scott County Initial Hearing Dm 12/03 12/08 11/29 12/06 12/02 Continuation Hearing ~ 12/08 12/15 12/13 12/13 12/20 In addition, a subsequent hearing (regular council meeting of December 20) must be held to approve the final 2000 property tax levy. This day cannot be on the same day as the budget hearing. The following alternatives are available to the City Council: 1. Approve Resolution 99-XX as submitted. 2. Amend Resolution 99-XX to an amount determined by the City Council. Staff would recommend approval of Resolution 99-XX Certifying Proposed 2000 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. Once certified, the city is then restricted to downward adjustments only and cannot increase its final levy . 1. Resolu' n Certifying Proposed 2000 City of Prior Lake Tax Levy To Scott County Department of Taxation 2. Budget Summary 3. PL 2000 Property Tax MOTION BY: WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, RESOLUTION 99-XX RESOLUTION CERTIFYING PROPOSED 2000 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION SECOND BY: Truth in taxation provisions as specified by property tax legislation requires a proposed property tax levy certification to the Scott County Department of Taxation; and The City Council of the City of Prior Lake anticipates a 2000 General Fund Operating Budget increase of approximately 2%% which would amount to $7,326,610.00, exclusive of enterprise fund expenditures, and subject to approval by the City Council following the course of public hearings scheduled for the month of December; and The total proposed property tax levy approved has been determined to be $4,868,728.00; and The City of Prior Lake hereby certifies that the levy certification rate will increase for payable 2000 property taxes; and The proposed City of Prior Lake property tax levy for the year payable 2000 represents an increase of 1.4%; and The City shall conduct a public hearing at 7:30 P.M. Monday December 6, 1999 in the Prior Lake Council Chambers for the purpose of review and discussion of the City's proposed budget and a continuation hearing, if necessary, shall be scheduled for Monday December 13, 1999; and The City Council will approve the 2000 General Operating Budget and the F~l -lQQ.~operty Tax Levy during a subsequent meeting on Monday December 2 , 1999. , 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 16200 Eagle Creek Ave, S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER H:IBUDGBl\OOBRPRES.OOC * 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) $84,000.00 ** Fire Hall Referendum Bonds '93 $162,340.00 ** Park Referendum Bonds '97 $552.370.00 Total... $4,868,728.00 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 7th day of September, 1999. YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} City Manager City of Prior Lake r~. ~~~:>>.1Il!!_'i\~~''''. ,'I~ ,1,''''''''''''''' ......~., /0, ~_ '~~"~".',,'1iI1 '~ " DETAILED DIFFERENCE BETWEEN ACTUAL 1999 AND 2000 GENERAL FUND BUDGETS Page* Department '99 Budget '00 Proposed % Change $ Change p.4/7 41110 Mayor & Council $23,910 $30,560 27.81% $6,650 p.4/8 41130 Ordinance $20,500 $16,000 -21.95% -$4,500 p.5/9 41320 City Manager $256,129 $247,423 -3.40% -$8,706 p. 6/12 41330 Boards & Commissions $10,038 $10,038 0.00% $0 p. 6/13 41410 Elections $3,371 $7,790 131.09% $4,419 p. 7/14 41520 Director of Finance $93,482 $95,646 2.31% $2,164 p. 8/16 41530 Accounting $85,468 $97,828 14.46% $12,360 ' p. 9/18 41540 Internal Auditing $10,685 $10,885 1.87% $200 p. 9/19 41550 Assessing $41,700 $45,700 9.59% $4,000 p. 9/20 41610 Law $231,000 $268,000 16.02% $37,000 p. 10/21 41820 Personnel $76,418 $78,128 2.24% $1,710 p. 11/23 41910 Planning & Zoning $280,321 $288,605 2.96% $8,284 p. 13/26 41920 Data Processing $138,543 $141,505 2.14% $2,962 p. 14/29 41940 Buildings & Plant $177,259 $200,637 13.19% $23,378 p. 15/32 41950 Central Garage $134,408 $174,733 30.00% $40,325 p. 17/35 42100 Police $1,718,488 $1,808,154 5.22% $89,666 p. 19/42 42200 Fire & Rescue $225,077 $235,943 4.83% $10,866 p. 21/46 42400 Building Inspection $290,045 $295,352 1.83% $5,307 p. 23/49 42500 Civil Defense $7,100 $11,400 60.56% $4,300 p. 23/50 42700 Animal Control $11,230 $11,230 0.00% $0 p. 24/51 43050 Engineering $452,602 $463,779 2.47% $11,177 p. 26/55 431 00 Street $413,531 $434,441 5.06% $20,910 p. 28/58 45100 Recreation $366,516 $390,378 6.51% $23,862 p. 30/62 45200 Parks $674,583 $716,454 6.21% $41,871 p. 32/66 45500 Libraries $16,765 $45,800 173.19% $29,035 p. 33/67 46500 Economic Dev. $52,378 $55,541 6.04% $3,163 p. 34/69 47000 Debt Service $886,085 $714,710 -19.34% -$171,375 p. 35/70 49800 Transit Services $379,950 $379,950 0.00% $0 p. 35/71 49999 Contingency $50.000 $50.000 0.00% SO General Fund $7,127,582 $7,326,610 2.79% $199,028 BUDSUM.XLS Page 1 8/27/99 DETAILED DIFFERENCE BETWEEN ACTUAL 1999 AND 2000 ENTERPRISE FUND BUDGETS Department '99 Budget '00 Proposed % Change $ Change p. 36/72 49400 Water Utility $522,010 $553,299 5.99% $31,289 p. 37/78 49450 Sewer Utility $1,033,490 $1,098,884 6.33% $65,394 p. 40/81 49420 Water Quality Utility $172.452 $177.000 2.64% $4.548 Enterprise Fund $1,727,952 $1,829,183 5.86% $101,231 BUDSUM.xL.S Page 2 8/27/99 ... M", ~=-- '"""'" ~.miIiiYi~J:.tl"!";Ioii,,':;1I , ... ~,MIlI,";:llllill""."""""~ 'j.it ' .J" .,~I~ -. .A~___ a it , 'lI BUDGET SUMMARY RECAP: '99 Budget '00 Proposed .% 41000 GENERAL GOVERNMENT $1,583,232 $1,713,478 8.23% 42000 PUBLIC SAFETY $2,251,940 $2,362,079 4.89% 43000 PUBLIC WORKS $866,133 $898,220 3.70% 45000 CUL TURE-RECREA TION $1,057,864 $1,152,632 8.96% 46000 ECONOMIC DEVELOP. $52,378 $55,541 6.04% 47000 DEBT SERVICE $886,085 $714,710 -19.34% 49800 TRANSIT SERVICES $379,950 $379,950 0.00% 49999 CONTINGENT RESERVE $50.000 $50.000 0.00% General Fund $7,127,582 $7,326,610 2.79% BUDGET BREAKDOWN: '99 Budget '00 Proposed % of Total % Change Personal Services $3,945,363 $4,142,645 56.54% 5.00% Current Expenses $1,765,424 $1,924,955 26.27% 9.04% Capital Outlay $100,760 $114,350 1.56% 13.49% Debt Service $886,085 $714,710 9.75% -19.34% Transit Services $379,950 $379,950 5.19% 0.00% Contingent Reserve $50.000 $50.000 0.68% 0.00% Total $7,127,582 $7,326,610 100.00% 2.79% BUDSUM,XLS Page 3 8/27/99 -' o o ~ Name of Issuer: CITY OF PRIOR LAKE, MINNESafA IAnalysis: TAX IMPACT ANALYSIS r.----------------------------, FILE: PL 2000 PROPERTY TAX ~----------------------------~ DATE OF ANALYSIS: AUGUST 31, 1999 RESIDENTIAL HOMESTEAD MARKET VALUE $100,000 $125,000 $154,800 $175,000 $200,000 COLLECTABLE ESTIMATED 2000 TAX 1999 COLLECTABLE CAPACITY $l,17S COLLECTION TAX TAX CAPACITY TAX CAPACITY RATE YEAR LEVY :VALUE VALUE INCREASE $1,175 1999 4,3Z5~139 10,473,592 4L30'll 48S.Z8 :zooo 4,402,540 10,852,195 48.57'11 476.70 INCREASE OR DECREASE OVER 1999 -0.73% ($1.58) '1998-1999 NET TAX CAPACITY $1,600 $2,107 $2,450 $2,875 199'.2000 NET TAX CAPACITY $1,600 $2,107 $2,450 $2,875 NOTE: USED1999 TAX RATE FOR 2000 CALCULATION NOTE: SCOTT COUNTY TO PROVIDE EST. OF NEW TAX CAPACITY VALUE FOR 2000 660.80 870.19 ~OILa5 649.12 854.81 993.97 II I I ($11.68)1 ($15.38)1 ($17.88) I I I. I DECREASE OVER 99 . -1.77% i I I I --------. 1,187.38 1,166.39 ($10.99) PREPARED BY: [liJ) JURAN & MOODY ,~ ~EWN~MA.~ONV~ ~NC 61Z--291.3034 It) 0 <":l -' ... N N -' It) cc ~ .~ < " ~ 0 0 .. 0 -' ~ Ol Ol "- -' <":l "- ao 0