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Home My WebLink About9A - 2008 Prior Lake Budgets and Property Tax Levy MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT DECEMBER 17,2007 9A Ralph Teschner, Finance Director CONSIDER APPROVAL OF RESOLUTION ADOPTING 2008 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2008 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 2008 Operating Budget and Enterprise Fund Budgets and to determine the City's final 2008 property tax levy for certification to the Scott County Department of Taxation office. Historv The official budget process started in the middle of April 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 2008 operating budgets. The City Council conducted its initial budget study session May 7, 2007 at which time the directive to staff was to prepare an operating budget that would be responsive to the financial elements of the 2030 Vision and Strategic Plan and have a financially responsive property tax impact for next year. A second workshop was conducted on August 20, 2007 where the Council reviewed the proposed 2008 draft budgets and programs associated with it. Cumulative budget reductions in the amount of $200,800 resulting in excess of 2% property tax cuts. September 4, 2007 the City Council approved the preliminary budgets for the general and enterprise funds and initial levy under Resolution 07-164 with a proposed property tax levy increase of approximately 4%. Following public notification in the Prior Lake American and individual parcel mailings, the truth- in-taxation hearing was then conducted on December 3,2007. A total of 17 citizens attended the TNT hearing. Comments were submitted by 11 residents, which centered primarily on maintaining a stable property tax environment and valuation concerns. The minutes from the Truth-in-Taxation hearing are part of this agenda packet. Current Circumstances The 2008 General Operating Budget submitted for your consideration totals $12,426,431.00, which includes necessary taxing for general operating expenditures, capital outlay and debt service levies. New program elements of the proposed budget are summarized as follows: o Building/Senior personnel additions o Fiber technology plan www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 o Joint public safety training facility FINANCIAL IMPACT: As a result this budget represents an increase ($740,624) of approximately 6.3% above the current level of expenditures, and will produce a final property tax levy of $9,365,437 that includes a revolving equipment fund levy of $300,000, special debt levies of $797,550, CSAH 82 cooperative agreement appropriation of $136,663, a general obligation building bond levy of $576,170 and market value referendum levies of 1,000,311 with the remaining amount allocated for general city purposes. The total property tax levy represents an increase of $646,660 or 7.4% above the current year. For Prior Lake taxpayers experiencing the typical 4.4% market valuation adjustment this will result in an average increase of 4% on their 2008 property tax bill. Also requested for approval are the 2008 Enterprise Fund Budgets of $4,986,839 that support our water and sewer utilities, storm water and transit systems. ALTERNATIVES: The following alternatives are available to the City Council: 1. Approve Resolution Adopting 2008 Prior Lake Budgets and Certifying Final 2008 City of Prior Lake Property Tax Levy to Scott County Department of Taxation. 2. Amend Resolution according to specified Council changes. RECOMMENDED MOTION: Alternative 1. Staff would recommend that the City Council approve the resolution as submitted as this is the last regular meeting date in 2007. 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 28,2007.) as prescribed by Minnesota statute. H\BUDGET\08budrptdoc Motion By: Second By: WHEREAS, The City Council of the City of Prior Lake hereby adopts the 2008 General Fund Operating Budget in the amount of $12,426,431.00, an Enterprise Fund Budget of $4,411,188.00 and Transit Services Budget of $575,651.00 following a period of comment and discussion during the course of a public hearing held December 3, 2007; and WHEREAS, The City of Prior Lake's general fund operating budget tax levy is hereby equivalent to $8,131,224.00; and WHEREAS, The revolving equipment fund levy amount is calculated to be $300,000.00; and WHEREAS, A Scott County cooperative agreement appropriation of $136,663.00 for CSAH 82 is included; and. WHEREAS, Special debt levies account for an additional tax levy of $797,550.00; and. WHEREAS, The total property tax levy approved has been determined to be $9,365,437.00. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. That the proposed tax levy be distributed upon the taxable property in said City for the following purposes in payable 2008: PurDose Amount * For General City Purposes $6,554,743.00 * Revolving Equipment Fund $300,000.00 * G.O. Improvement Bonds '98 (Duluth) $60,000.00 * G.O. Improvement Bonds '99 (Candy Cove) $53,000.00 * G.O. Improvement Bonds '00 (Oak Ridge) $77,000.00 * G.O. Improvement Bonds '01 (Frog Town) $62,000.00 * G.O. Improvement Bonds '02 (Pixie Point) $63,000.00 * G.O. Improvement Bonds '03 (150th Street) $120,000.00 * G.O. Improvement Bonds '04 (Breezy Point) $183,000.00 * CSAH 82 Improvement Appropriation '06 $136,663.00 * G.O. Street Reconstruction Bonds '07 $179,550.00 * G.O. Building Bonds '05 (EDA) $576,170.00 H \BUDGET\08taxresoiution. doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 ** Fire Hall Referendum Bonds '93 ** Park Referendum Bonds '97 ** Fire Station Referendum Bonds '06 $165,400.00 $624,581.00 $210.330.00 Total... $9,365,437.00 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 17TH DAY OF DECEMBER, 2007. YES NO Haugen Erickson Hedberg LeMair Millar Haugen Erickson Hedberg LeMair Millar Frank Boyles, City Manager H:\BUDGETI08taxresolution.doc