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Home My WebLink About3. Followup Budget Discussion #3 CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Budget options DATE: September I, 2005 Attached are: l. Current print of General Fund budget status with 800MHz radios removed and updated figures for the SPUC contribution. The bottom line is a positive $46,000. 2. Tax impact on selected parcels with the same tax rate. 3. Tax impact on selected parcels with a one point increase in the tax rate. One point is a 3.2% increase in the rate. It equals $317,000 in tax levy. 4. Budget options for items not included in the base budget. A couple of items have been removed from the list. The top group of items are staff's recommendation to include at the same tax rate utilizing the changes on the budget as it stands and a 3% under~spend factor, Two police officers added in the 2nd quarter of the year. The next group is staff's recommendation to add with a one point increase in the tax rate, Two police officers added late in the year, The third group is items suggested to be funded with other funds or using the General Fund Fund Balance because these are ~one time" type expenditures and not ongoing annual costs, Budget status with the options and tax rate increase implemented and factoring in a 3% under-spend. ,) CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Additional Information - FY 06 Budget DATE: September 2, 2005 The levy to spread as identified by the Finance Director included a 12.8% increase. The major reasons for that increase are as follows: 1. Loss of homestead market value credit from the State of Minnesota - $560,000. 2. Rental for three new fire trucks - $194,000, 3. Full year of four additional police officer positions (staggered budgeting throughout 2005). 4. Operation of new Public Works building, beginning February, 2006, 5. Cost of living adjustments/inflation. ~---'------_..._--"_._--'--------- ~tllVl:lLLUJJ Mark McNeill City Administrator MM:th ~---- -'-'-~..~_._---_.-~--,-----_._~--_.~~-- CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: City Hall Building Duration of Use DATE: September 1, 2005 One of the items which was discussed at the August 30th workshop was how much longer the City Hall building was expected to be used by the City for that purpose. The intent was to make certain that the proposed investments in FY 06 for ADA modifications and carpeting replacement could be justified. Last formal "space study" for City buildings was done in 2000. I feel that that study is now out of date, and for that reason, the issue was discussed instead by staff. It was noted that for FY 06, two City Hall employee positions are being requested to be added; two positions were likewise added to the City Hall staff in 2005. An average of two "adds" seems to be a reasonable assumption for the future, as the City grows. Conversely, the proposed move of engineering staff to the Public Services building will free up spaces for ten employees (note that some employees are currently sharing offices designed for one). However, there are also unutilized spaces in the basement and other areas of City Hall that could be used for future staff expansion. Simplistically taking the ten vacated spaces, and dividing that number by the average of two additional projected staff positions anticipated for future years, yields a minimum of five year use for City Hall. Adding the additional space available in the basement level, and two other vacant office spaces in the building, would yield realistically six to eight years. From an expenditure side, the life expectancy of carpeting in high traffic areas is from five to eight years. There are also ADA expenditures which should have been made in the past, in order to bring the City Hall building into compliance with that law. It should also be noted that at such time that the City offices would move, the condition of the carpeting will be a factor in what sales price might be obtained for the building from the new buyer. Unless the carpeting needs to be replaced at that time as well, that would also allow at least partial recoupment ofthe investment. Therefore, based on the City use only, it would appear to be justified to make the investments as outlined above, tt~QJUlc- JlLttPo Mar~ McNeill City Administrator MM:th R5509BUD .001 CITY OF .PEE 9/1.15:07:16 Fiscal Period: 8 1 05 Budget Report Page - 1 Level Of Rollup 5 2002 2003 2004 8/31/2005 2005 2006 2006 2006 Actual Actual Actual YTD Final Requested Approved Final Object Code 1 Description Amount Amount Amount Actual Budget Budget Budget Budget 01000 GENERAL FUND 4000 REVENUES AND EXPENDITURES 4001 REVENUES 4005 TAXES 6,418,795- 6,972,300- 7,326,802- 4,586,562- 9,014,180- 9,448,090- 9,448,090- 9,448,090- 4100 SPECIAL ASSESSMENT 1,641- 15,570- 6,786 1,103- 4200 LICENSES AND PERMITS 2.313,544- 3,227,264- 3,197,690- 2,431,138- 1,809.500- 2,813.000- 2.813,000- 2,813,000- 4400 INTERGOVERNMENTAL 520.322- 535,329- 364,979- 103,890- 292,930- 285.000- 285,000- 285,000- 4500 CHARGES FOR SERVICE 1.243.535- 1.491,614- 1.574.649- 760,967- 1,119.200- 1.087.660- 1.087,660- 1.087,660- 4820 FINES & FORFEITS 253.348- 239.588- 255,763- 147.076- 260.000- 267.000- 267.000- 267.000- 4830 MISCELLANEOUS 304.938- 271.653- 174,088- 20,130 250.000- 201.000- 201.000- 201.000- 4001 REVENUES 11.056.123- 12.753.317- 12,887.186- 8.010.607- 12,745.810- 14,101.750- 14.101,750- 14,101.750- 6000 EXPENDITURES 6001 WAGES & BENEFITS 5.938.104 6.177.318 7.056,538 4.704.001 8,156,460 8,728.530 8.728,530 8,728.530 6200 SUPPLIES AND SERVICES 3.504.093 3,456,380 4.063,966 2.831,364 4,622.380 5,204.710 5.204.710 5,204,710 6600 MISCELLANEOUS 114.869 123.217 86.086 51.784 231.300 230,420 230,420 230,420 6700 CAPITALOUTLAY 64,940 76,370 12.930 56.350 221.000 50,000 50.000 50,000 6000 EXPENDITURES 9,622,006 9.833.284 11,219.519 7.643,500 13.231,140 14.213.660 14,213.660 14,213,660 8005 TOTAL TRANSFERS IN 8010 OPERATING TRANSFERS IN 1.057,147- 1,122,355- 1,342,560- 722,000- 1.225,000- 1.286,250- 1,286.250- 1.286,250- 8005 TOTAL TRANSFERS IN 1.057,147- 1.122,355- 1.342.560- 722,000- 1.225,000- 1.286,250- 1,286.250- 1.286,250- 8050 TOTAL TRANSFERS OUT 8052 TRANSFERS OUT 2.101.744 1,931,650 1,408.191 1,074,550 1.103,780 1.128,550 1,128.550 1.128,550 8050 TOTAL TRANSFERS OUT 2.101,744 1,931,650 1,408,191 1,074,550 1,103,780 1.128,550 1,128.550 1.128,550 4000 REVENUES AND EXPENDITURES 389.520- 2.110,738- 1.602.035- 14,557- 364,110 45,790- 45.790- 45,790- 01000 GENERAL FUND 389,520- 2.110.738- 1,602.035- 14,557- 364,110 45.790- 45,790- 45.790- -........ 2- City of Shakopee Property Tax - tax capacity based 9/1/2005 Pay 2005 Pay 2006 Change Net levy spread , $8,734,348 $9,855,630 12.84% Total City Net Taxable Tax Cap. 28,160,658 31,675,804 12.48% ----:..'.- 1\ ., -- ...... City Tax Rate / 31~115~ 7 31.114% [) 0,00% Assessor's Estimated Market Value $154,100 $182,400 18.4% Tax Capacity First $500,000 at 1% 1,541 1,824 Balance at 1.25% 1,541 1,824 18.4% State Tax Credit . $88.04 City Tax $479.48 $567.52 18.4% Assessor's Estimated Market Value $188,800 $188,800 0.0% Tax Capacity First $500,000 at 1% 1,888 1,888 Balance at 1.25% 1,888 1,888 0.0% State Tax Credit ($0.02) City Tax $587.45 $587.43 0.0% Assessor's Estimated Market Value $276,800 $365,100 31. 9% Tax Capacity First $500,000 at 1% 2,768 3,651 Balance at 1,.25% 2,768 3,651 31. 9% State Tax Credit $274.71 City Tax $861.26 $1,135.97 31. 9% Assessor's Estimated Market Value $513,000 $513,000 0.0% Tax Capacity First $500,000 at 1% 5,163 5,163 Balance at 1,25% . 5,163 5,163 0.0% State Tax Credit ---.--.-- ($0.05) City Tax $1,606.31 $1,606,26 0.0% Assessor's Estimated Market Value $328,400 $382,200 16.4% Tax Capacity . -...-..- First $500,000 at 1% I 3,284 3,822 Balance at 1.25% ..H 3,284 3,822 16.4% State Tax Credit .--- $167.36 City Tax $1,021.82 $1,189,18 16.4% Assessor's Estimated Market Value $328,400 $382,200 16.4% Tax Capacity Commercial ,., , First $150,000 at 1.5% 2,250 2,250 Balance at 2.0% 3,568 4,644 --"..".. .','. 5,818 , 6,894 18.5% --- ---.-- $334.73 City Tax $1,810.27 $2,145.00 18.5% LEVY05-06C.XLS TAXBILL pay 06 2:32 PM 9/1/2005 -3 City of Shakopee Property Tax - tax capacity based 9/1/2005 -- Pay 2005 Pay 2006 Change Net levy spread $8,734,348 $9,855,630 12.84% Total City Net Taxable Tax Cap. 28,160~6~ 31,675,804 12.48% ~>- '--"', ./ '::;;;:f'- City Tax Rate T 31.115%) - -r--- ( 32.114% / 3,21% '\:: ~ ~ Assessor's Estimated Market Value $154,100 $182,400 18.4% Tax Capacity I First $500,000 at 1% 1,541 1,824 Balance at 1.25% 1,541 1,824 18.4% State Tax Credit $106.28 City Tax $479.48 $585.76 22.2% Assessor's Estimated Market Value $188,800 $188,800 0.0% Tax Capacity I First $500.000 at 1% 1,888 1,888 Balance at 1.25% ' , 1,888 1,888 0.0% State Tax Credit $18.86 City Tax $587.45 $606.31 3.2% Assessor's Estimated Market Value $276,800 $365,100 31.9% Tax Capacity I First $500,000 at 1% 2,768 3,651 Balance at 1. 25% 2,768 3,651 31.9% State Tax Credit $311.22 City Tax $861.26 $1,172.48 36.1% Assessor's Estimated Market Value $513,000 $513,000 0.0% Tax Capacity [ First $500,000 at 1% 5,163 ____ 5,163 Balance at 1.25% 5,163 5,163 0.0% State Tax Credit +-- I $51.58 City Tax $1,606,31 I $1,657.89 3.2% Assessor's Estimated Market Value $328,400 I $382,200 16.4% Tax Capacity Il----' ----=-_ ____L___ First $500,000 at 1% 3,284 i 3,822 Balance at 1.25% 1 3,284! 3,822 16.4% State Tax Credit ; L $205.58 City Tax $1,021.82 i $1,227.40 20.1% Assessor's Estimated Market Value $328,400 i $382,200 16,4% Tax Capacity , I Commercial L--~- First $150,000 at 1.5% 2,250 ,_1 2,250 Balance at 2.0% 3,568 i 4.644 5,818 i 6,894 18.5% $403.67 City Tax $1,810,27 $2,213.94 22.3% LEVY05-06C.XLS TAXBILL pay 06 2:32 PM 9/1/2005 i Tax Rate Tax Rate Tax Rate Fund Balance 31. 115 32.115 33.115 Use Request $317.000 $317.000 Building Inspector 62,750 48,750 Grading Inspector 50,000 37,500 4 Police officers 232,800 87,300 58,200 Shared HR consulting 43,000 43,000 Additional custodian 41,720 41,720 ADA modifications 58.000 35,000 23,000 GIS position 74,300 55.725 Vehicle Allowances 10,200 10,200 Add, facilities maintenance position 44,490 44,490 Communications Coordinator .5FT 58,000 58,000 Home Town Messenger 14,800 14,800 Recreation Superintendant position 77,970 77,970 Up date pay plan 5,000 5,000 Aquatic park hours extended 1 hour 8,960 8,960 Facility maint. software (share w/park) 7.500 7,500 Electronic time keeping 6.000 6,000 Tree inspector - part time 7,790 7,790 Teen Cen~er part time coordinator 16,640 16,640 City Hall Security system 30,000 30,000 800 MZH radios 456,000 Park/easement boundry marking 13,175 13,175 Community center on line registration 16,600 Telecomm Construction Manager 75,000 Park reserve City Hall carpet 113.820 85,000 No basement carpet Community Center lighting upgrade 20.000 delete Youth building carpet 9,500 9,500 1,098,015 359,195 305,350 616,675 Fund balance above 40% target floor 12/31/04 available 1,519.000 SUMMARY GENERAL FUND. 2006 2006 2006 2006 GF Total Revenue per print 14,101.750 14.418.750 14.735,750 SPUC 1 ,286.250 1 ,286,250 1 ,286,250 Total Revenue & Transfers 15.390,006 15,707,006 16,024.006 GF Expend +tran, per print 14.213,660 14.213.660 14.213.660 Options 359,195 359.195 359.195 Options 305.350 305.350 Recreation 1 ,128,550 1 , 128,550 1 ,128,550 Total Expenditures and Transfers 15,701.405 16.006,755 16006755 Net surplus (deficit), (311.399) (299.749) 17.251 '" Underspend/overbudQet factor 3% 437,186 446,346 446,346 Net surplus (deficit) 125.787 146.597 463.597 Tax rate 31,115 32,115 33,115