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Home My WebLink About3. Truth in Taxation Hearing 3 CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Truth in Taxation Hearing DATE: November 30, 2005 Introduction Due to the increase in the tax levy, the City is required to hold a "Truth in Taxation" public hearing. Action 1. Opening the public hearing. 2. Budget presentation. 3. Public Comment. 4. Either Announce that the Tax Levy and Budget will be adopted during a hearing on December 20, 2005. OR Announce that there is a continuation of the hearing on December 12, 2005 at 7:00 pm at 129 Holmes Street, Shakopee. 5. Close the hearing. Gregg Voxland Finance Director City of Shakopee, Minnesota 2006 Annual Combined Budget Summary Special Debt Capital Total General Revenue Service Projects Governmental Fund Funds Funds Funds Funds Revenues Taxes $9,758,750 $ 80,000 $ 933,010 $ ,1,200,000 $ 11,971,760 Special Assessments 1,581,470 4,400,000 5,981,470 Licenses And Permits 2,813,000 250,000 900,000 3,963,000 Intergovernmental Federal 70,000 70,000 State 204,000 650,000 839,880 1,693,880 Local 11,000 27,000 38,000 Charges For Service 1,087,660 948,340 2,036,000 Fines And Forfeits 267,000 267,000 Miscellaneous Revenue 201,000 43,500 3,184,450 3,428,950 Interest Earnings 53,000 100,000 209,920 362,920 TOTAL Revenue 14,412,410 2,051,840 2,614,480 10,734.250 29,812,980 Expenditures General Government 3,418,680 538,700 3,957,380 Public Safety 7,245,180 7,245,180 Public Works 2,778,210 829,440 3,607,650 Recreation 1,171,530 2,248,950 3,420,480 Debt Service 3,914,650 3,914,650 Miscellaneous 160,000 11,740,435 11,900,435 Total Expenditures 14,773,600 3,617,090 3,914,650 11,740,435 34,045,775 Excess (Deficiency) of Revenues over Expenditures (361.190) (1,565,250) (1,300,170) (1,006,185) (4,232,795) Other Financing Sources And (Uses) Bond Proceeds Interfund Transfers In 1,286,250 1,318,110 469,970 1,590,000 4,664,330 Interfund Transfers (Out) (1,318,110) (2,210,000) (3,528,110) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses $ (393,050) $ (247,140) $ (830,200) $ , (1,626,185) $ (3,096,575) Property Tax Levy Required to Support This Budget $ 10,317,811 $ 80,000 $ 933,006 $ 11,330.817 CITY OF SHAKOPEE 2006 Property Taxes , , I 1 Enterprise Funds Utility Funds income to funds is use based rates. Shakopee Public Utility Created by referendum and is independent of Council. Sanitary Sewer Fund Collects from land developers to install sewers and from users to operate and maintain. Storm Drainage Fund Collects from developers to build and from users to operate and maintain. I I Other Funds which function to reduce peaks and valleys in general levy. Equipment Fund Building Fund EDA & Telecommunications Funds 2 City Share of 2005 Tax Dollar ..--. School 26% Other 6% City 32% County 36% 3 Tax Capacity Rates Other Taxing Jurisdictions 2005 2006 . City 31.115 32.117 . School 25.215 24.832 . County 35.361 34.126 . Other 4.660 4.597 4 Proposed Tax Rates 2006 New Prague 37.467 Jordan 53.893 Savage 46.479 I Prior Lake 31.337 Belle Plaine 54.979 Shakopee 32.117 5 Determination of Property Taxes . Assessor - Est. Market Value . State Legislature - Tax Capacity . City Council - Tax levy . County - Spreads Levy . County Treasurer - Collects Taxes i 6 --- ---- Estimated Average Market Value Assessor EMV LMV 2005 $213,329 $208,652 2006 $218 I 1 36 $215,595 7 Homestead Tax Capacity Calculation Legislature 2005 208,652 X 1.0% = 2,087 2006 215,595 X 1.00/0 = 2, 156 8 Tax Capacity Rate Net Levy / Total Tax Capacity = Tax Rate 2005 8,734,348 /28,070,884 =31.115 2006 10,172,630 /31,674,000 =32.117 9 - Individual Tax Amount Tax Capacity X Tax Rate I , , 2005 2,087 X.31115 = $649 2006 2,156 X.32117 = $692 10 Tax Capacity Rate Parts Residential (Est.) Pay '05 Pay '06 TCR X Tax Capacity City .31115 x 2087 $649 City .32117 x 2156 $692 Fire Station 20 .00969 x 208700 Fire Station 18 .00848 x 215600 Market Value Credit (60) (60) Total Tax $609 $650 11 2006 Tax Notice 12 - Changes in Market Value 01 to 05 I 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 2002 2003 2004 2005 2006 I · 382200 . 365100 . 188800 .182400 I 13 City Tax Residential Parcels , I 1400 1200 1000 800 600 400 200 0 2002 2003 2004 2005 2006 14 ----- -- ReslCI Tax Comparison _.... ~ . H -~..""~ Residential Comm./Ind. Pay '05 Pay '05 TCR X Tax Capacity City .31115 x 2087 $649 City .31115x 3423 $1,066 Market Value Credit (60) Fire Station .0000969 x 208652 20 20 - Total $609 $1,086 15 Tax Capacity Pay '05 Pay '06 Gross Tax Capacity 33,013,564 36,493,113 Net Tax Capacity 28,070,884 31,672,666 Net of TIF & Fiscal Disp. CI % of Tax Capacity 37% 35% Homestead % of Tax 54% 56% Capacity 16 , I 2006 Budget 17 City of Shakopee 2006 General Fund Budget 18 __ u-.-_..______..___ ________m_ CITY OF SHAKOPEE 2006 GENERAL FUND BUDGET SUMMARY , I 2005 2006 Revenue Budget Estimate Taxes $9,014,180 $9,758,750 Licenses and Permits 1,809,500 2,813,000 Intergovernmental 292,930 285,000 Charges for Service 1,119,200 1,087,660 Fines and Forfeits 260,000 267,000 Miscellaneous 250,000 201 ,000 Total Revenue 12,745,810 14,412,410 Expenditures General Government 3,353,850 3,418,680 Public Safety 6,258,090 7,245,180 Public Works 2,459,040 2,778,210 Recreation 1,015,060 1,171,530 Un allocated 130,000 160,000 Total Expenditures 13,215,540 14,773,600 Excess (deficiency) Revenues over Expenditures (469,730) (361,190) Other Sources 1,225,000 1,286,250 Other Uses (1,103,780) (1,318,110) Excess (deficiency) Revenues & Other Sources Over Expenditures & Other Uses $(348,510) j) (393,050) 19 . . II. lI! I, lI! . . . I Tax Levy Dollars 2005 Tax Levv 2006 Tax Levv % Chanqe General Levy $8,987,169 $10,317,811 18.1% EDA - General 60,000 60,000 (0.0%) Debt Service 381,357 682,225 78.9% Fire Referendum 254,680 250,781 (1.5%) Total $9,683,206 $11,310,817 16.8% 21 City Nondebt Tax Levy History .." " .. _.._~ Year Levy Chang~ 2001/02 $6,343,653 61.20/0 2002/03 7,430,936 17.10/0 2003/04 8,005,654 7.70/0 2004/05 9,047,169 13.00/0 2005/06 10,377,811 14.70/0 22 Tax Rate Trend 60 55 50 45 40 ! 35 / 30 / 25 -------- / 20 15 10 #'#'#'#'#'#'##' Year 23 General Fund Budget Revenues Taxes 10000000 9000000 8000000 7000000 6000000 Licenses & Permits 5000000 4000000 Inter-Gov!. 3000000 Miscellanous 2000000 Fines 1000000 0 I · 2005 . 2006 I 24 General Fund Budget 2005 Revenues Fees Misc. SPUC Intergov't 8% 2% 9% 2% Licenses & Fines 2% Permits 13% Taxes 64% 25 General Fund Budget 2006 Revenues . _.~- Fees Misc. SPUC Intergov't 7% 1% 2% 8% Fines Licenses & 2% Permits 18% Taxes 62% 26 General Fund Expenditures 8000000 Public Safety 7000000 6000000 5000000 Public Works 4000000 3000000 2000000 Un allocated 1000000 0 I . 2005 . 2006 I 27 City General Fund Budget Dollar Use 2005 Police, Fire, Eng., Insp. Street, 44% Shop 17% i , Admin., Clerk, Finance, Legal, Park Maint, Planning, Recreation General Gov't Unallocated Transfer Buildings 1% 15% 23% 28 ---------------..--- --- ...----.---....-.- City General Fund Budget Dollar Use 2006 Police, Fire, Insp. Eng., Street, 46% Shop 17% Admin., Clerk, Finance, I Legal, Planning, General Park Maint, Gov't Unallocated Recreation Buildings 1% Transfer 21% 15% , I ! 29 Cost of Services Average Value Home 1 . .~...... ~. -- $650 Per Year 54 Per Month 13 Per Week 2 Per Day 30 I Public Safety Services , 24/7 Police Services 46 Licensed Officers 24/7 Fire Services 54 Authorized Firefighters Building Inspection Services 7 Inspectors 31 Public Works Services Engineering Division Public Infrastructure - roads/utilities 11 Employees Street Division Snow Plowing Street/alley/parking lot Maintenance 9 Employees (+3) Shop Division Equipment set up and repair 3 Employees 32 Parks Services ---""^ Park Maintenance Division Park Maintenance mowing 330 acres per week maintain 22 parks 7 Employees Recreation Program/development Community Center open 100 hrs/week 131 Programs/activities offered 11 FT Employees 130 PT Employees 33 ---- General Government ~ -. ..- City Council Administration City Clerk Finance Legal - Prosecutions/civil Planning/Community Development Information Technology Gov't Building - City Hall, Library 34 - ~ --- Productivity Measures for General Fund Operations 2003 2004 2005 2006 Population. 26,837 28,337 30,999 34,085 Households. 10,089 10,653 11,040 12,083 FTE Positions.. 95.1 107.1 124.1 132.6 Firefighters 50 50 50 54 Pop. per Employee 282 265 250 257 Households per FT 106 100 89 91 Employee Cost $/population 483 452 462 433 Cost $/household 1,086 1,114 1,298 1,223 . Estimates .. Assumes all budgeted positions are filled and excludes Recreation and EDA employees - paid from other funds. 35 -----.--