HomeMy WebLinkAbout7A - City Budget 1998 & Final 1998 Property Tax Levy
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
7A
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF RESOLUTION 97-xx ADOPTING
1998 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 1998
CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT
COUNTY AUDITOR
DECEMBER 15, 1997
The purpose of this agenda item is to consider approval of the City
of Prior Lake's 1998 Operating Budget, Enterprise Fund Budget and
to determine the City's final 1998 property tax levy for certification
to the Scott County Auditor's Office.
Early in the year the City Council established a top priority goal as
follows: "Adopt a 1998 General Fund Budget which provides
needed services with no tax increase." Thereafter the official budget
process started in the middle of May with the Council approving an
initial budget timetable that outlined the budget development
process and required truth-in-taxation steps necessary to prepare and
eventually adopt the city's 1998 operating budget. Subsequently, the
Council conducted a preliminary workshop on June 16, 1997 for the
purpose of considering budget programs.
On September 2, 1997 the City Council approved a proposed budget
and initial levy under Resolution 97-74 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 3, 1997 attended by
about twelve Prior Lake taxpayers. The central focus of the hearing
comments were questions about individual tax statements, the city's
funds and carryover reserves. After receiving public input the
hearing was closed.
The 1998 budget proposed by the City Manager achieves the City
Council's objective of no property tax increase. The Council
considered the public's comments and indicated support of the
budget as proposed. Therefore, the $6,830,198 Operating Budget is
submitted for Council approval. This budget represents an increase
of 11 % above the current level of expenditures, primarily the result
of an increase in debt service due to the parks and library
referendum and will produce a final property tax levy of $4,587,732
that includes a revolving equipment fund levy of $140,000 and
$752,000 of special debt levies.
16200 E'i;gPerncr~~\UD~~~oS.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
DISCUSSION:
Because of the addition of nearly $35 million dollars of new market
valuation, it is projected that the City of Prior Lake's payable 1998
property tax increase will be attributed solely to the following two
factors:
1. Amount of debt levy associated with the parks and library
referendum bonds
2. Slight shift from commercial to residential property taxes as a
result of the compression of tax capacity valuation classifications by
the state legislature.
The tax levy amount is $19,017.00 kss than the preliminary levy
approved by the City Council on September 2, 1997 because of
some revenue and expenditure adjustments that were made to the
initial proposed budget. Also requested for approval is the Enterprise
Fund Budget of$l,705,702.00.
ALTERNATIVES
The following alternatives are available to the City Council:
1. Approve Resolution 97-xx Adopting 1998 Prior Lake Budgets
and Certifying Final 1998 City of Prior Lake Property Tax Levy to
Scott County Auditor.
2. Amend Resolution 97-xx according to specified Council
changes.
RECOMMENDATION: Alternative 1. Staff would recommend that the City Council approve
the resolution as submitted as this is the last regular meeting date for
City Council action. The final property tax levy amount must be
certified to the Scott County Auditor's Office no later than 5
working days after December 20th (December 29, 1997) as
prescribed by Minnesota statute.
ACTION REQUIRED: Motion and a second to approve Resolution 97-xx Adopting 1998
Prior Lake Budgets and Certifying Final 1998 City of Prior Lake
Pro rty Tax Levy to Scott County Auditor.
H:IBUDGE1\97BUDRPT.DOC
RESOLUTION 97-xx
RESOLUTION ADOPTING 1998 PRIOR LAKE BUDGETS AND
CERTIFYING FINAL 1998 CITY OF PRIOR LAKE PROPERTY TAX LEVY
TO SCOTT COUNTY AUDITOR
MOTION BY: SECOND BY:
WHEREAS, The City Council of the City of Prior Lake hereby adopts the 1998 General Fund
Operating Budget in the amount of $6,830,198.00 and an Enterprise Fund Budget of
$1,705,702.00 following a period of comment and discussion during the course of a
public hearing held December 3, 1997; and
WHEREAS, The City of Prior Lake's operating budget tax levy IS hereby equivalent to
$3,695,732 and
WHEREAS, The revolving equipment fund levy amount is calculated to be $140,000.00; and
WHEREAS, Special debt levies account for an additional tax levy of $752,000.00; and
WHEREAS, The total property tax levy approved has been determined to be $4,587,732.00
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 1997:
Purpose Amount
* For General City Purposes $2,989,112.00
* For Revolving Equipment Fund $140,000.00
* G.O. Improvement Bonds '88 (North Shore Oaks) $55,000.00
* G.O. Improvement Bonds '92 (Downtown Overlay) $115,000.00
* G.O. Improvement Bonds '93 (Waterfront Passage) $270,000.00
* G.O. Improvement Bonds '94 (prior South) $65,000.00
* G.O. Improvement Bonds '95 (Ridgemont) $95,000.00
* G.O. Improvement Bonds '96 (Northwood) $80,000.00
* G.O. Improvement Bonds '97 (Pike Lake) $72,000.00
** Capital Park Bonds of '73 & '77 $33,030.00
*** Fire Hall Referendum Bonds '93 $163,145.00
*** Park Referendum Bonds '97 $510.445.00
Total... $4,587,732.00
16268~grecCreek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Note: Single starred funds shall be spread over the entire consolidateo ;City of Prior Lake.
II
:~
Note: Double starred funds shall be spread over the consolidated City except for the former Savage
portion subject to annexation.
Note: Triple 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 15th day of December, 1997.
YES
NO
Andren
Kedrowski
Mader
Robbins
Schenck
Andren
Kedrowski
Mader
Robbins
Schenck
{Seal}
City Manager
City of Prior Lake
98TAXRES.DOC