HomeMy WebLinkAbout10.F.1. Overview of 2015 Preliminary Property Tax Levy, Debt Service Levies, and 2015 Preliminary Budget Process General Business 10. F. 1.
SHAKOPEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director/City Clerk
DATE: 08/19/2014
SUBJECT: Overview of 2015 Preliminary Property Tax Levy, Debt Service Levies, and 2015
Preliminary Budget Process
Action Sought
Staff will present and review the components of the 2015 preliminary levies, as well as the
projects and programs that are major components of the City budget and levy.
The review of these programs and the discussion by City Council as to the prioritization and
funding of the programs will be an essential part of establishing the preliminary levy, and
planning for future year programs.
During the budget overviews, staff will review the most current market information recently
received from Scott County, as well as reviewing the budget calendars and dates that have been
adjusted for the 2015 budget process, due to recent legislative changes.
The budget process will require the approval of a preliminary levy by September 30th, 2014, and
the adoption of the final levy and budget by late December, 2014. As in previous years the budget
process will continue into the fall meeting cycles.
Attachments: 2015 Budget Information Memo
Scott Co. Property & Tax Information
Capital Improvement Plan 5-year
EDA Budget Review
Debt Service Overview
Personnel-Related Items for 2015 Budget
August 19th, 2014
To: Mayor and City Council
Mark McNeill, City Administrator
From: Julie A. Linnihan, Finance Director&City Clerk
Topic: 2015 Budget Information
Introduction:
The Council is asked to give direction on the FY 2015 Budget, and Operating Levy.
Background:
Attached for your review is the most current information from Scott County, regarding the property
classifications, property values, as well as tax rates and property tax levy forms as required by Scott
County and the State of Minnesota.This data will be useful in review of the status of Shakopee's market
values and tax rates; the City has only a limited source of revenues, primarily the property tax levy.
As discussed at a prior City Council meeting,the 2015 budget year can provide for a positive growth
climate by setting a levy that may address deferred needs and establish prioritized projects.The
increase in the property values allows for the funding for many of the projects that will be facing the
Council in the upcoming years. Increasing levy rates was a difficult decision for the Council when
property owners were already facing declining market values.
In preparation for establishing a preliminary 2015 levy, the following items will require direction from
the City Council:
• Funding for the Capital Improvement fund, specifically for the planned infrastructure
investments presented in July by Public Works Director Bruce Loney
• Funding for the expanding Economic Development activities that are presented to the City
Council, including business subsidy requests, loans for improvements, as well as the recent
discussions specific to the downtown improvements
• Debt Service,that will require annual principal and interest payments until the maturity dates
identified in the long term debt schedule
• Funding request for additional staffing for several departments.Assistant City Administrator
Kris Wilson will be presenting an overview of these requests (see attachments)to the City
Council at its August 19th meeting.
These topics will be reviewed with City Council, based on the most recent information that has
been provided by the City Departments. There will also be a revie3w of the County information
related to market values, tax rates and the forms that will need to be provided to Scott County
by September 30th, when the preliminary levy must be set.
Capital Improvement Projects (CIP)
The City Council was previously provided with a detailed overview of the planned projects specific to
infrastructure needs for 2015 and 2016, by Public Works Director Bruce Loney.The 2015 plan provides
for Street Reconstruction work, CSAH 17 expansion, and the completion of improvements to Vierling
Drive.
The City Council has approved a fund transfer from the General fund for CIP work as follows:
• 2013 transfer from the General fund $ 500,000 (initial year of transfer)
• 2014 transfer from the General fund $750,000
• Requested 2015 Transfer from General fund $1 Million
This will require an additional transfer of$250,000 from the previous year's budget. As is shown by the
project summary,the prior infrastructure needs have sometimes been deferred, and will require a
continuation of the increased levels of funding that has been established in the prior two budget cycles.
The CIP also includes downtown improvements, which may include additional capital funds.
The CIP fund currently has a positive cash position, which will allow for the needed projects of 2015 and
2016.The Goals that were previously defined by Council in early 2014 included the Downtown area
plan.That will require significant coordination with MNDOT, SPUC, Scott County, Main Street Shakopee,
and others.
In recent discussions with Springsted Financial, City staff will also present options that Council may wish
to consider in planning for Downtown Improvements. Many of the projects that are being considered in
downtown planning are of a "deferred maintenance" nature.
The use of Tax Increment Financing (TIF) or Tax Abatement in many cases will not be an option, as there
will be only limited increase in value of property, or have limited job growth.
Special Assessments will likely also not be a consideration, as the costs for such significant
improvements may be difficult for the smaller businesses to absorb, even when spread out over a 10-15
year length of time.
This leaves the City with the consideration of utilizing the General Fund property tax levy, and applying a
use of these funds for Downtown Improvements.As the Council considers the 2015 Preliminary levy,
this project may be a specific portion of the levy request. This would result in the Council needing to
authorize a levy increase of approximately$500,000 each year, for a period of 2 to 3 years,which would
allow for work on utilities„ parking, alleys, sidewalks, drainage, lighting, and other infrastructure..
Economic Development Funding:
The City of Shakopee initiated an expansion of the Economic Development fund in 2013.This provided
for the hiring of the Economic Development Coordinator, expansion of the improvement loan programs,
business subsidy programs, as well as the coordination of economic development projects with other
entities.The EDA activity has been funded through a General Fund transfer; since 2013, an initial
transfer of 2013 of$80,000 and a transfer in 2014 of$300,000.
The 2013 and 2014 budget each provided for$150,000 in facade/improvement loan programs funds.
The attached list details the payments approved by City Council for businesses that have applied for
program revenues.Since December of 2013, the EDA has paid $64,345 for improvement projects
(formerly known as the Façade Loan Program).
The balance that is remaining from the two years of funding is$235,655, which could be applied to
future improvement loan projects.
Before making a final decision on the 2015 EDA budget and transfer from the General fund, Council
should be aware that the EDAC will be discussing this topic at their August 20th meeting. A
recommendation will be brought to the 9/2 City Council meeting.
An important determination needed from the Council is the dollar cap on requests for exterior
improvement programs.The written policy has a $15,000 limit, but that has been increased for several
recent requests.. After EDAC discussion,the Council may wish to consider adjusting the current amount
or policy.
The City Council has also discussed the process of property acquisition. Funding for potential site
acquisition can also come from the existing loan program, and may also require additional future
funding.
Debt Service:
In recent years,the City has increased the annual levies for debt service,to provide sufficient coverage
for the outstanding debt service held by the City of Shakopee. In 2014,the levy allowed for an increase
in the Fire Building referendum levy(2004B),to provide $175,000 of levy,tobe applied to $253,706 of
annual debt service payment.The 2015 preliminary levy will request$200,000 to cover the debt service
payment of$249,926.The 2004B debt will expire in 2017, which will require one more year(2016) of
debt levy for this issue.
The 2014 levy requested an initial levy of$343,959 for debt service levy 2006A, which had previously
not been levied as a part of the annual levy.The 2006A levy will mature in 2017, and the City Council will
be requested to levy for the 2016 levy year for this specific debt.
In 2015,the Council will also be requested to levy for 2007B debt which will require an additional levy
of$ 92,052. This debt service has not previously been included in the debt service levy.The 2007B debt
service will expire in 2018, and future levies will be requested in 2016 and 2017,for a similar amount.
The total of the debt service levies requested in the preliminary levy will be $634,267.As the existing
debt service levies mature,the existing levies will serve as a base for any future debt service that the
City will be issuing for projects, infrastructure, referendums, etc.
Personnel Updates:
Attached for review is an update from Kris Wilson,Assistant City Administrator, regarding the budget
related issues specific to the 2015 personnel component of the budget.
Preliminary Levy:
The Preliminary Levy for 2015 may include the following: (see attached)
• General Property Tax Levy of$17,372,542 -- (2014 levy amount was established at$15,793,220)
• Debt Service for 2006A& 2007B Levy of$435,267—(2014 levy amount was established at
$343,959)
• Fire Building 2004B Levy of$200,000—(2014 levy amount was established at$175,000)
Total Preliminary Levy for 2014 total$ 16,312,179
During Budget discussion, Council will be asked to consider the following 2015 Preliminary Levy as
follows:
• General Property Tax Levy—2015 values will be experiencing positive growth, allowing for the
increase in a levy, with limited or no impact on most property tax payers
• The most recent details from Scott County"what if" tax comparison sheet indicates that the City
homeowners may experience an increase in the percentage of estimated market value (EMV) of
upwards of 1%to greater than 15%.These increases alone may result in property tax increases,
as has been discussed in prior year Council budget reviews.This is the inverse of what has
historically occurred, with declining market values
• Debt Service for 2006A Levy -anticipated at$343,215 (a decrease of$ 744 from 2013)
• Fire Building 2004B Levy-2015 Levy amount increased to $200,000 (an increase of$25,000
from 2013)The non-levied amount will be $49,926, as amount allowed by levy is$249,926)
• Addition of 2007B Debt Service Levy, for$94,093
In addition to the base levies, staff is also requesting review of the following levy:
• Tax Abatement Levy for DataCard estimated at$12,000(first year of this levy for abatement—
refer to Council discussion of July, 2013)
Staff will be present to discuss and review the significant areas of the 2015 budget,to determine which
specific expenditures will be brought into the Preliminary levy for 2015.
In previous years,the levy was required to be approved by September 15th, but this date was changed
by the 2014 Minnesota Legislature. The 2015 Preliminary Levy must now be approved by September
30th, 2014.This levy amount cannot be increased for the final levy, which will be presented and
approved by City Council in December, 2014.
City Council will also be requested to establish a public meeting to discuss the 2015 budget and levy.
This meeting must be between November 25 and December 30 and be held after 6:00 p.m.
Staff recommends this meeting be held at the Tuesday, December 2, 2014 City Council work session as a
public meeting. This information will be forwarded to Scott County in compliance with State law.
rsSeott Scott County Property Assessment Reporting
Parcel Count by Class Type for Assessment Year 2014
Shakopee
Class Type Parcel Count
Agricultural 87
Apartment 89
C/I 609
Exempt 725
Other 9
PP Public Utility/RR 16
Res Improved 12,017
Res Vacant Land 246
Total 13,798
Wednesday,July 30,2014 Page 7 of 7
Scott County Property Assessment Reporting
A. :' MU Final Valuation Data for Taxes Payable: 2014
Preliminary Valuation Data for Taxes Payable:2015
Shakopee
Value Type Class Type 2014 2015 %Change
EMV Total
Agricultural 92,579,700 97,046,400 4.82%
Apartment 139,095,600 151,009,600 8.57%
C/I 873,065,800 926,721,300 6.15%
Exempt 591,219,900 598,757,400 1.27%
Manufactured Homes* 98,300 98,300 0.00%
Other 2,612,600 2,621,100 0.33%
PP Public Utility/RR 21,678,400 21,928,400 1.15%
Res Improved 2,296,340,000 2,616,537,900 13.94%
Res Vacant Land 17,582,500 22,044,400 25.38%
Total 4,034,272,800 4,436,764,800 9.98%
NC Total
Agricultural 136,900
Apartment 7,250,000
C/I 24,950,000 16,430,000 -34.15%
Exempt 1,900
Res Improved 22,898,900 24,021,100 4.90%
Total 47,850,800 47,838,000 -0.03%
Net Tax Capacity
Agricultural 556,708 592,735 6.47%
Apartment 1,604,516 1,750,768 9.12%
C/I 17,147,194 18,213,202 6.22%
Exempt 0 0
Manufactured Homes* 763 763 0.00%
Other 33,009 33,137 0.39%
PP Public Utility/RR 432,855 436,855 0.92%
Res Improved 20,969,295 24,445,736 16.58%
Res Vacant Land 208,561 237,581 13.91%
Total 40,952,901 45,710,777 11.62%
Tuesday,July 29, 2014 Page 1 of 2
RMV
Agricultural 3,711,600 4,373,800 17.84%
Apartment 132,411,400 144,204,500 8.91%
C/I 873,065,800 926,721,300 6.15%
Manufactured Homes* 98,300 98,300 0.00%
Other 2,612,600 2,621,100 0.33%
PP Public Utility/RR 21,678,400 21,928,400 1.15%
Res Improved 2,287,889,400 2,607,731,000 13.98%
Res Vacant Land 16,683,700 19,091,200 14.43%
Total 3,338,151,200 3,726,769,600 11.64%
TMV Total
Agricultural 59,362,600 63,675,900 7.27%
Apartment 139,065,600 150,974,700 8.56%
C/I 873,065,800 926,721,300 6.15%
Exempt 0 0
Manufactured Homes* 76,300 76,300 0.00%
Other 2,612,600 2,621,100 0.33%
PP Public Utility/RR 21,678,400 21,928,400 1.15%
Res Improved 2,094,050,000 2,440,636,900 16.55%
Res Vacant Land 16,683,700 19,021,800 14.01%
Total 3,206,595,000 3,625,656,400 13.07%
*2015 values for manfactured homes for are not established until January 2nd of next year. For the purpose of
this report,the current year manuafactured home value totals have been duplicated for the next year.
Tuesday,July 29, 2014 Page 2 of 2
(h M
F, d m U
P.N y 2 N N
V
N j ■ N E,0_
> N 0
N N
r
O
N g 0
N .p N On
c �
> rn
0
a m w 0m
N N> r
N V O . CD Q W 0
I, N N ci of ai v r
O
O N a 2 W R 4. 8. O Ori r
0 j M N V E O O m ai Z l
.9 . .9 .9 69 . 69 0 0
• r- O V m N V 54 0 23
'N F, n 0 N r .N M OMf N N
Z m N r r r a) a) fo N
a
69 e9 .» f9 f9 e9 w 0 69
N m o
O N O m V; 0- 2
F d N M 0 46
9 0 0 6
N a .9 o M.9 r
O ,a) O m
a) N .O N N
N N r O
Z :''',4i=:', l'a V O Fs' V m& N V N
a
ei r3 v. » . r3 v> .9.»
a
v 0 M M M M M M 0 2
Z m N 9 r V n 9 O V V n
a
G9 » «9 .9 N .9 » .9 v>
% v O O O O O N O N O N O
y N N N N N N
T�O 0 0 0 0 0 0 0 0 0
G.N
✓ r r r n r r r n r
Z V r r r r r r r r r
a
.» w e9 .9 69 .» e9 69 69
G) N 0 0 0 0 al O
To
?> y> N > OJ tri rn M O M 6 N ca
) r
F m E 0 F m E 0 Gl 5 N N (00 O n ro m N 00i_LLI> w F =
rn a n 0 N V 9
Q .2 d aQ .2 0 x N N N N
F N X K 0 w F X
w 1- f L a.
F- 2 69 68 .9 69 69 69 69 .9 0
' ° Y
Q A N Q' 888 N C 888 rn j N N N N N a N N N
0 M O CO rnnrr ,
D.
• c- c c4 Lei 0( M of of vi c v m v v v v v v v v e
o n o 0 0, n o a >v r n n r r n n n r
cci ca. 0 o x a
p N
N CM0 CO M r F N
M M M CO
... 0 0 w 0 . .9 .9 69 ui .9 69.
rn n N r M M 0 M
d O N 0 N O N r n- 0 0 CO
Z. r m 'n'-' rn 0 O. N
} =U N N N N N
VJ W w to 19 69 69 0 19 69 0 69
N > 0 a
F, n f n n r r n f n n f n p W}a O a >u N o ai of o ai o of o a
(0 LLQcc -IQa' W .9 .9 d> . .9 . .9 ..
.0 ,5,T O oy0 ry N M 0 M 00 M 0 N
(wJ 0 > Y o co coo co O M N CO 664 CO
1n a V)C O U.., a>N cNV N co, co 0 m n or CO
0 LL LLF a6.f- Q .9 .9 .9 .9 .9 69 M .9.9
N o r N V N U �, 0 0 0 0 0 0 0 O
T M m n 0 V O O N N O O N o
16 _ < CO M Y1 % ? N N N N N N■r-ui Maim `r e v v v a' e v v
d M m n m m o o rn o a, rn rn rn rn
H rn a r rn N M cn>N
' al 7-V ai.-V
C N.9.9 M.9.9 ¢ M .9 .9 0 . .9 .9 to 0
N 0 0 N N v a) •- N O O O U
F N N
ra
CE rya d r W N V O W N CD W
R 2 p d r O N aI F n
7' % X N 6 a) N - Y
F Cr;> f # o v
> 04 Q n ¢Q m ° ° N�
a N¢ 0 N¢ , g o $ 2 0 8 S + 1
V ° �Nw N °LLViw w + o o Z Gi oo E
N F F li Z N 0 1-LL Z +
T%
J
u L Q w nmm rn' Q 'mon O a r .,
n Y- N V co O > N MCO CD. Z N 1_ 53. N Q mp N N W L
U V. M U O v 0 n O O a
c c
LL LL CC 0 LLI
L
co N N Lo O) DO) .- CD CD M CO
~ W W co co
N N M 0 .- .- s- CO LO
W
Y M Q o 0 0 O 0 0 0 0 0
> K
0 N 0 �O 0 ^ 0 O O O O 0 N 0 d O O 0 O O O O O O O O O O O O
o V. O M O M O O 0 0 0 CD N 0 -0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N CO 0 0 N N O N
O) 0N N M (D CO Ni O) N CO 0) O W
0 to I- N V N N .33" ' D N co- Oio O O N N O T N O N O N O N 4-
W Fll NCO- CD CO O O O W O M 0 .- co O D N 0) M (O N N
N 0 w 7 • CO 00 • CO m 0 0 O ) CO V N O) (D N N LO O (n O M c N ,s,"' C
O 0 C N .- W N N D W ( M W N N Ce Q a 0 0 co(O W st N N CO 0 0 (! M
N ( O� M l(j O ,-0- o) N N .- N O � M Q N M (D D O N D CO M (D _ (
• s- si M .- N N CO N N M N M N (D
O a' O N 0 0 0 0000 .9201-p 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
CO° N 0D M O°) 000 N -00 CO° V CO° - O N N ,- N N 0 0 0 0
N 0 N
w 1... N O O1 N V MO 00 W N (0 (D N 0 N N M 0 O 0 W 0 OD (D M OD (f)
J ()) W o 0) O O) O N O OD O M CO O > CO D) N N O 0 (O CD N o 0 (D O) (D
CO Y 7 N ^ N (.,j 0 ^ V N N .- N C N C CO (D (n N (D N N M O) (n N (n M .- sr
a Ce J ' M N. N N� CO N V N 0 0 J Ni- 0 OD C) N N. CD N o v N O
Q Q > N C) .4 tl- N .7 (D CO CO N- 00 N N CO N V' CO CO N 0 O O M N
(() O 0 O) CO D) 0 (D M N (D O N v N N N N N N N °
N CD D
N- •- .- M ., N N CO N N N N M N (D
O O 0 CO O) N sr O) 0 N 0 N N V 0 CO N OD U) 0 O 0 D) N 0 0
CO M O) CO O) M M CO N CO N sr sr M O N N c{ 0 0 OD N lD 0 (D 0
CD
o O O O O N O0i r N O CO CO N CO ti) N N W 0 7 0 0 0 N D 0 r O 0 CO
N M 0 st O CO
CD co
X U w u M O N D D O
M M 4 .- O .- .- O O N O O
O M N N a Q N CO N M N M M M N CO O N.4
a
0
J N )D 0 N CD Q N CD O^ 0)) 00)) N CD N CO N N O W (D M W N O 000 CCD Q) 0 CO CD N 0
Q CO N N O 0 0 O) co O) .- N N W 00 N .- CO N O) N 'V CO o O) (D CO O 0
U N M N O N- 0 U) N O O N N N N OD M M M M M O
CD
O X r N 0 0 O)) O 6 N V N O N- O j O N (D V N 0 0 0 V O) N 0 N V
N J Q M M CD O N Ou (0 '0 ,- N N N )A (D N )D N O O (D N (D N
([i (n of OO (9 N O
W W N- U ,D o (D w m co ao c M o (N v o v o Ci o c o v - 2
�J J F_ Q V M .- M cv co co N M M co (D •- a.
CO▪ 03 Z Q U y
U
N
Oa F U
ri
0 2.. c C C N y 0 0
C
0 0
a ' (D o c N
CO D D) N r 0N N O) 2 2 0) F_aA ° " " " � ° N O ° 4
0 o o o a 0o .,U Z v) o a a 1 O > re
Ill J v U u U 2 U Q C 0 X O 3 3 ( 3 d a F.( C ° ° da Z E E I-
45� 0
d? a
a . co U d = t0• Y 0 J Q C C O 1 D O °
O O 4 Y ~
U V J F OS L y N > E a N J N
O d N a ° Z O A O J cow 2 W U !- J Y Y Z N t co V) O C Y 9 O CO W a 3 H O 7 O U � ( z U) -, 22 ` 0� V) • - 0. U) 0 cf.
i
O}LL .. N W 7 N
V coO CO .-
N. M O CD N O
ri
V F- o CO (N 00 (D N O CO ° W
W W W W J F_ V 0 O
o o J a W sr O CO N V N O O N N N Oi
m 6 r; o O O v v •i v (ri o6 M u N`
O O O V F_ r N N O N,.
J Z a > C a
Q U Q
I-
LL a
O o O 0 N 0 0 0 O 0 0 0 0 0 0 0 0 0 0 I
a rn °nNa°o ° NN ° ° ° ° ° ° 0000 ° r
V V 0 N N .- CO ) CO 0 .- O
W W O O) co- N M N co- NI-
LO ~ W (D N NO N O (D f� O CD r
o NI 0 a W
• It. Y J N V M N N 0 W Y J V O '7 N 0°O CD M N CO M W 0 ry a0 O N co O N OD a W d' V N N O CO CO CO ((1 LO-
CO H
F 5 > CD CD M N )`) U)) U)) M rL > M N .-- V . Cl)
W N N co- Fa
Z
z
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 0
0000 :a000 0 0 0 0 0 C) 0 0 0 0 0 Q N
0 7 N N N (D N N CO V N CO O) V CO W 0 (D I- _
Ill 1- N (D V O W W u) 00 W F-
J W W 0 O) CO N -. (O J W W N N 0 O CO N W .- CO CD O) Q CD
QmQ Y 7 w (D m c (D (o (D CO Y D (h N (D (D m 0 .- (n N
X Q m N m ' v r�i o X 2 Q N N� U
CD O (D 0.
F 2 > co CO N N 7 7 N < 2 > N ,- V CO N .- N 7 N 0 CO N
N N co F-
M
W
CL
N CO V 00 N CO M N .- CO V CO O CD (D CO (D N N - IL
N N O a0 N N O tl') M CO CO O N N M r W -I W
I-
N V V V CO N M •c{ 0 0 N CO W V' M CO CO M
W N N (D CO N N V W (D 0 a- V OD 0 N R (D (D N N CO 0
X U F_ N (D M O O (D .- X U F_ 6• N (D M (p M C) O C- M m V O 0 re
4 a a O N (D N co (D V F d Q U
o U K y
2 a
F 0
J N O (D 0 N 0 N N J CD W 0 M O (D N N O N 00 N OD 0 N N (O N V v N N Q V CO M 0 N N CD W N N N 0 W O) O M [N
K -
CO N m .- N CD U CO N O N W CO N N v N N co .- CD O O °
QCO. N M CD M M O O ( CD O O C) D N 0 O M N D 0 0 0 M N v of N N 0 D) � M M D W D O D M N N N 0 N CO D O M (D J
N N CO O CD N N N J Q U N M CO O O OO .- .- V CO CO N N W N N M v N U9 M M N M F 7 N .- aV N .- N N m W N N M J a d }01 ILI 0 Z U
Z U 2 W
D °
F F Q 0 5
d a d m d la a Q Q
i LL i 'u.i LL Q Q Q Q Q H Lu
C
U () m z � z z a L- � a
W N d C lL LL Y , (L ` d C (L it -J o C N ; N a J G ) Z J Z 0 > i V 3 rn(j a R o z a ea z m N Ny c Fd -0 O O > A 2 'D N • d L J 0 V d O -v 0 .E 0 .c O 0) 0 7, 12 0) 0 R O.
CO -) W Z C U) U) I- CO m 0 U 2 • J Z U) N 0
U) u.
Capital Improvement Fund
Projected Fund Levels
2015-2019 Capital Improvement Program
REVENUES: 2015 2016 2017 2018 2019
Special Assessments $ 1,765,000 $ 2,505,000 $ 535,000 $ 150,000 $ -
Intergovernmental MSA 831,000 831,000 831,000 831,000 831,000
SPUC Portion of Project 500,000 360,000 390,000 70,000 20,000
Interest 70,000 49,000 38,000 35,000 31,000
Total Revenue 3,166,000 3,745,000 1,794,000 1,086,000 882,000
EXPENDITURES:
Expenditures per List CIF
12th Ave Trail - - - - 200,000
CSAH 17 Expansion 750,000 - - - -
Shenandoah Bus.Park. - 2,000,000 - - -
Vierling CR 69 to Taylor 1,300,000 - - - -
Overlay 1,350,000 1,150,000 2,400,000 2,375,000 2,880,000
Reconstruction Projects 2,440,000 - 1,600,000 620,000 -
Trail Rehabilitation 80,000 80,000 80,000 80,000 80,000
Crossings Blvd Intersection Improv. 65,000 - - - -
Reclamation - 690,000 - - -
CSAH 16 Reconstruction - - 1,600,000 - -
3rd Avenue Reconstruction - 1,700,000 - - -
CSAH 15 Expansion(TH169-17th Ave) - 500,000 - - -
Concrete Alleys - - 420,000 - -
Total Expenditures 5,985,000 6,120,000 6,100,000 3,075,000 3,160,000
OTHER FINANCING SOURCE
Transfers In
General Fund 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000
(or Levy Increase and Assessments)
Sewer 310,000 280,000 250,000 40,000 20,000
Storm 1,070,000 480,000 1,575,000 70,000 20,000
Total Other Financing Source 2,380,000 1,960,000 3,225,000 1,710,000 1,840,000
Excess(Deficiency) (439,000) (415,000) (1,081,000) (279,000) (438,000)
Cash Balance January 1 5,756,097 5,317,097 4,902,097 3,821,097 3,542,097
Balance 12/31 $ 5,317,097 $ 4,902,097 $ 3,821,097 $ 3,542,097 $ 3,104,097
SiIAKOI'EEI.
5.
TO: Economic Development Advisory Committee
FROM: Samantha DiMaggio, Economic Development Coordinator
DATE: 08/20/2014
SUBJECT: Discussion of 2015 EDA Budget
Introduction
The EDAC will be asked to discuss what potential items they would like to see funded from the EDA
budget in 2015.
Background
The EDAC may want to consider the following items were discussed a the August 6th City Council
meeting:
1. Planning--There is a need for follow up from the HKGi Study, including implement strategies. In
addition, the Metropolitan Council has recently released a regional housing plan. How should
preparation for a wide range of housing--both affordable and market-rate--be incorporated into
Shakopee's downtown, 1st Avenue corridor, and the surrounding areas? Recommended amount:
$100,000.
2. Infrastructure Needs--Both Shakopee Public Utilities and the City have identified renovations and
updates to infrastructure and streetscaping which, in some cases, were last addressed in the
1980s. This would be such things as reconstruction of parking lots and alleys; the replacement of
street pavers, disability ramps, tree grates; and utilities. The study (identified in #1 above) will
identify project parameters for work to be done in 2016; however, work which is apparent and
urgent(i.e.; resurfacing of the City parking lot at 2nd and Lewis, and work in the adjacent east-west
alley) should be provided in the 2015 budget. Recommended Amount: $225,000
3. Railroad Quiet Zone--It is felt that addressing train noise will be one of the keys to attracting new
development in the First Avenue corridor. A letter from the Council was sent to the Union Pacific in
June, asking about the railroad's interest in participating in preparations for establishment of a
Quiet Zone. Even with a positive response from the UP, it is likely that the City will still need to
make a sizable financial investment in order to establish a quiet zone in the downtown area. The
first step, and recommended to be funded in 2015, is an engineering study of improvements
needed for a "whistle-free"zone. Recommended Amount: $35,000.
4. Main Street Shakopee--Four Main Street Shakopee sub-committees have been formed, and are
currently starting to meet. Any recommendations for improvements in downtown resulting from
these study committees should be coordinated with the City's plans. The study to be funded in #1
above will identify infrastructure improvements, with that work to be done in 2016. In 2014, the City
contributed $25,000 to the Main Street Program during its initial year; the intent was that that
amount would be part of a three year commitment. Recommended Amount$25,000
Additional items to consider:
1) Continued funding of the Commercial Exterior Improvement Program--$300,000. Budget to be
determined by existing balance, and scope of assistance.
2) Wayfinding and Monument Signage--Bicycle/Pedestrian Signage in 2015 from Grant. 2016 amount to
be determined from Downtown Study.
Action Required
Discussion and make recommendations to the EDA, for programs specific to the EDA Funds.
Attachments: Budget Discussion
1. o
a)
E as
0
kl.
,f,
E g
n
a
K U
I
U >
W W U' F. '
H > Z
e; w
d j
C > N § N W Z 1,i'
7 W >
W g w 1 p f
P o o N b
F
F❑F
J
� W �e
K
U
6 Z W � Z
1 >
0 m 66' 38 = &
fl) N °w > O w z z #?�RR
wJ = cI R o c:
Q _ > ro W YR m e Y�
I— °• o ,,s s ^o k
0 O QQ
(Q s S
co
d 3
tT? W to C m � m � m
O co y v
Q- awZ co
0E - a -
O m H
4Q _ Zsa ,
Q * Q > L
d
J 0 *• R z
'o
C78 a� � zw�
m °'
CC) L www "wwQo
oR O UUUUUNLLF j 4
C m ;z m w m w g
6 d w k u a a a g ,i t$z
N G !agOOOOO,2o �1--
E y u
Oa
ss • s
h
a Im
E
g 88
N
• wo
as
a 3 ¢
1 z -g g
E
889 `61s
4" ' LL
1
C
E t
ac - ry \ N
m° N m
�g
m m m
ia a a >o. > o
O 10 O 10 O 10 O 01 O O N en O O
O e H N ' O C'kr) N ' n en en 01 00 M
h M 10
Ts �O O Cr 00 M 'ct 00 0 0 M h M
p - N 'C 01 en N O 7. 10 N 01 00 'O ,-
1 CI kn O v) 00 01 C 7 'n �- 01 N '0 V h
0 N ."en en .-i .-. ,... ,-.
N
0D 0 - , O en 7 . . 'C ' 00
▪ -' O N O N 000 O h 7 V 01 01 ..
N O b N 0�1 O 00i O C 0"
O w M 00 ,may en .-. V 00 h en M H
N , 7 iy 7
O N kn N O ■n co 00
O N ON M M O 1 N N ' ' 7 7 O 01 01 1.0
O E• N un O 'f N n 00 V r 00 00 00 N 'C MN b0 7 7 O O O N 0 I ,. CT ,.
E M ---
0* N
O N N 01 O O ,r 7 s N
a. ,.r p - N ,-. M O CD OM N N ' O O a
ce O i. 7 N N OM 7 N M N O O [� l� M
d M ,.y N N V O ,--I ,'7. ,n
N H N N
O N c7 O O N N N . N
114 O co 00 O 00 O O VD 10 to vl ,n
O - 00 N O O en en O O 0..
0:1 y vi O h h O V 7 N N 7
00 O 0 7 N 00 N - 'C 01 C' 01 G� 0,
N E M z
►.i ti N
> 00 N 1 - vr' 00 O N N - 7
r, 0,—
p ', M N N M 10p N 00 00 O O
N £d„ M M , -, N c7 ,n
h.∎ ~ N
O O N N O O 01 ' 0, ' ,n . .r, . O
O H 00 7 O N ON1 C N N —
C L M 7 N 1M0 0 O 1 V V' 7 en vi—N �0. M a ,:y N en cn M en M
M. M N
O ' 7 O 1D O O . O O O . O
A '' O N N N O M ,... ,�-i - 00 100 1'0
a "O n O O M M ,n Q\ 00 00 00 '0 '0 '0 01 N O O CD 114 ti ^ °0 C' v d' V 7 v
M 'C N M
O N 00 Y) O O Ln .n . . ' i
eu O - h OM oo O N 000 0
R L M N O , 00 0, O
N N £" 0 V' N;LI en ,-. ,n N V —
M
i..i N N
w+ O 00 0- O 1M0 O O O N N en
0 Y O , , h ,n O N N O ON1 ON■ OM1
a *• M i O a a O O M co" vi O, Oi V) .
O 00 O N N N N 'D V v) N N 7 v rf h
O •0 M N ,.y N N "0 N N N N
N a• N N N
.5
V CC
=
H w o4 on
E
b
b W > a a cn
4 en N w Q P —O rte+
• F N P. C v U w to ,�A U "0A U N
Cd C+ C
W A y C ^" 0 G — . 0 O C
W A aci " °' w °' N c N c `�vs 4
o Q � Q ru Q• d 5 ° 4 w E C o g u . c g a C
cn a y a v U . E C") 4%) U I b U a U E 7 U a, 7
Ts L C CiR a N ra ,_ � C Na ,_ a C N N. . . y >
N UA O www aA cn 0 A A cn c.7 aA
*
City of Shakopee
MEMORANDUM
TO: Mayor& City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrator
SUBJECT: Personnel-Related Items for 2015 Budget
DATE: August 14, 2014
Personnel-related costs, such as wages and benefits, make up slightly more than 60%of the City's
General Fund expenditures. Therefore, as we develop the preliminary 2015 budget, Council should
discuss and be aware of the following items.
1. New Position Requests
Requests have been submitted for 4 new full-time staff positions and for the upward
reclassification of a fifth position.The following is a list of the positions and their estimated
costs. Please see the attached request forms for a more detailed discussion of the requested
positions and the need for each.
a. Victim &Community Services Coordinator(Police) --$65,200 full-year cost
b. Assistant Fire Chief(Training Chief) --$115,400 full-year cost
c. IT Staffperson --$84,300 full-year cost
d. Clerk/ Finance Staffperson--$65,200 full-year cost
e. Management Analyst (+$39,200 for full-year)
(This request is to convert the current 30 hour per week Management Intern position to
a full-time, benefits-eligible Management Analyst position.)
It should be noted that additional personnel changes may be brought forward once the
outcome of the Retirement Incentive Program is known in September. Depending on the
number and position of employees opting into the retirement program, staff may have related
reclassification and/or restructuring recommendations. However,the budgetary impacts of
those recommendations are likely to be modest as they would reflect adjustments to existing
positions rather the creation of entirely new positions.
3. Wages
a. Union
The City's three labor unions, representing approximately 45%of our full-time
workforce, all have settled contracts for 2015 which call for a 3%general wage increase
on January 1.
b. Non-Union, Full-Time
The preliminary budget includes funding for a 3%wage increase for non-union
employees in order to provide equitable treatment between union and non-union
employees.
c. Part-Time, Temporary and Seasonal
There is a need to increase rates on the City's pay plan for part-time,temporary and
seasonal positions as it has been static for three years. Additionally,the City will need
to respond to the state's new minimum wage law,which raises the minimum wage to
$9.00 on August 1, 2015.
d. Paid-on-Call Firefighters
The City's 46 paid-on-call firefighters are currently paid $10.00 per hour as a starting
wage and $10.50 per hour after one-year of service (which marks completion of the
formal required training.) These amounts have also been static for three years and need
to be evaluated again for 2015.
4. Pension Costs
a. PERA—Police& Fire
2015 will be the second year of a statutorily-mandated two-year increase in both
employer and employee contributions to the PERA Police & Fire Fund. This fund covers
a total of 53 City employees.
b. PERA—Coordinated Plan
The state legislature has approved a one-time increase in both employer and employee
contributions to this PERA plan, which covers all year-round, non-public safety
personnel earning more than $425 per calendar month.
c. Fire Relief Association
Last year the Council approved a three-phase increase to the annual pension benefit for
paid-on-call firefighters. Therefore,the per-year-of-service pension amount will rise
from $7,600 to $7,700 on January 1, 2015.
5. Health Insurance
The City's health insurance is up for renewal every year on January 1 and the price quotes for
the new year are generally not available until early October. Staff is using a placeholder
estimate of an 8% increase in medical insurance costs for the purpose of the preliminary budget,
but is optimistic that it will be lower than this.
3. Wages
a. Union
The City's three labor unions, representing approximately 45%of our full-time
workforce, all have settled contracts for 2015 which call for a 3%general wage increase
on January 1.
b. Non-Union, Full-Time
The preliminary budget includes funding for a 3%wage increase for non-union
employees in order to provide equitable treatment between union and non-union
employees.
c. Part-Time, Temporary and Seasonal
There is a need to increase rates on the City's pay plan for part-time,temporary and
seasonal positions as it has been static for three years. Additionally,the City will need
to respond to the state's new minimum wage law,which raises the minimum wage to
$9.00 on August 1,2015.
d. Paid-on-Call Firefighters
The City's 46 paid-on-call firefighters are currently paid $10.00 per hour as a starting
wage and $10.50 per hour after one-year of service (which marks completion of the
formal required training.) These amounts have also been static for three years and need
to be evaluated again for 2015.
4. Pension Costs
a. PERA—Police&Fire
2015 will be the second year of a statutorily-mandated two-year increase in both
employer and employee contributions to the PERA Police & Fire Fund. This fund covers
a total of 53 City employees.
b. PERA—Coordinated Plan
The state legislature has approved a one-time increase in both employer and employee
contributions to this PERA plan,which covers all year-round, non-public safety
personnel earning more than$425 per calendar month.
c. Fire Relief Association
Last year the Council approved a three-phase increase to the annual pension benefit for
paid-on-call firefighters. Therefore,the per-year-of-service pension amount will rise
from $7,600 to$7,700 on January 1, 2015.
5. Health Insurance
The City's health insurance is up for renewal every year on January 1 and the price quotes for
the new year are generally not available until early October. Staff is using a placeholder
estimate of an 8%increase in medical insurance costs for the purpose of the preliminary budget,
but is optimistic that it will be lower than this.
City of Shakopee
Budget Personnel Request or Position Change
2015 Budget
Department: Police Prepared by: Chief Tate
Request for: One full time, non-sworn staff
(Victim and Community Services Coordinator)
Addition: Yes.
Pay Grade Estimate: Grade 5
Date of Change: January 1, 2015
Description Details:
The Victim and Community Services Coordinator position request is made after careful
consideration and an internal staffing needs assessment. This request ties directly to the
City Council's over-riding focus: Provide a quality of life for Shakopee residents by
enhancing livability, and speaks to their specific policy directive focus for the 2015
budget of providing no less than the highest levels of customer service.
State Statute mandates specific rights and services for all crime victims. There is
presently no one in the Shakopee Police Department dedicated to providing victim
services or referrals. This is negatively impacting case clearance rates and our quality of
customer service.
To address our shortfall, the police department is requesting a full time, non-sworn staff
position to serve as a Victim and Community Services Coordinator in 2015. Our initial
assessment is that this position would be at Grade 5 of the City's current pay plan. This
would result in a starting salary of approximately $49,319, plus benefits, and already
assumes a 3% COLA for 2015.
This position, if filled, will greatly enhance our services to the community in the
following areas:
- It is essential that we provide a higher level of communication with crime victims.
In 2013,there were approximately 2,100 crime victims in our city. Of these, only
a very small number were ever informed of the status or outcome of their case.
We intend to resolve this problem by staffing a position with someone who will
contact every crime victim and complete a checklist to ensure all relevant case
information has been captured and recorded in the department's reports.
Additionally,the position allows crime victims to ask any follow-up questions
that may have developed following the incident. We believe this type of two-way
communication will result in the collection of previously omitted case
information, which will help increase clearance rates and customer satisfaction.
Lastly, there are over 20 referral and service organizations that we are failing to
connect victims with. Current case loads and staffing levels prohibit us from
accomplishing this important responsibility.
- It is our intent to have this position coordinate Predatory Offender Registration
(POR) checks. Currently there are 69 registered offenders that the department
conducts routine compliance checks on. The coordination of these checks is time
consuming and takes our investigators away from their primary responsibilities.
There is no requirement to have a licensed officer coordinate this task, and it can
be transferred to non-sworn staff. The actual checks will still be completed by
patrol officers under the coordination of a non-sworn employee.
- This position would become a single point of contact for all graffiti issues in the
city. Many citizens have questions about our graffiti removal ordinance and lack
the tools to properly remove the graffiti from their property. We also know from
surveys in the community that this blight has a powerful negative impact on the
residents and their perceptions of safety and livability in Shakopee. Studies show
that quick cleanup is essential and our City Code requires it. Unfortunately, we no
longer have an officer volunteering to do this off-duty. We do have community
groups willing to assist with graffiti removal but it takes coordination, and the
Crime Prevention Specialist currently has too many assignments to take on this
additional responsibility.
- It is the intent that this position would also take over and coordinate the
Automated Pawn System (APS) and pawn shop activity. We have not conducted
an audit on our City's pawn shops in at least 7-10 years. It is important that we
have better coordination with those entities.
- The Shakopee Police Department has a long history of partnership with the
Southern Valley Alliance for Battered Women, and we believe this position
would be represented on their board. Also,the Victim and Community Services
Coordinator would serve as the department's representative at Diversity Alliance
meetings. We currently are not represented at these meetings due to staffing
levels.
- Our current Crime Prevention Specialist is presently inundated with assignments
and frankly,has too much on her plate. When she is gone, we fall behind and call
information does not get passed along to the approximately 200 registered
property managers in the City. This position would cover the Crime Prevention
Specialist during scheduled absences so property managers aren't left
disconnected or waiting for reports and information. This has been a frustration
expressed by some property managers.
- The Crime prevention Specialist needs assistance with community events. The
police department is seeing many more requests for officers at community events
and speaking engagements. The Victim and Community Services Coordinator
will greatly enhance our visibility in the community.
Finally, these functions listed above are very important to our service delivery but are
largely under-performed or unmet. The police department has not added a sworn officer
since 2007, and reduced 2 sworn positions as part of the 2008 budget process. Despite the
staffing analysis showing the need for another sworn officer, we feel this service void can
be filled with a civilian staff member. The cost savings of having a civilian working in
this capacity instead of a sworn officer are significant. If filled, this position will
supplement our sworn staff in investigations and should reduce the need for additional
investigators in the near future.
I4.
City of Shakopee
Budget Personnel Request or Position Change
2015 Budget
Department: Prepared by:
Fire Rick Coleman
Request for: (specify) Full Time Assistant Chief Operation/Training
-Staff(Full Time Part Time Seasonal,Temporary
-Position Classification Change
-Staff Reduction
Addition: Change in Position:
(check one)
The main responsibility of this position would be to train the
department and insure that the department meets all of the
Description Details: training requirements.
Would assist in the operation of the department
Pay Grade Estimate: Pay Grade 10
Date of Change: May 2015
Add'I Information: This position could also be used to train other departments.
(OSA/safety training)
Reviewed by: Date:
Approved by: Date:
City of Shakopee
Personnel Request or Position Change
2015 Budget
Department: Administration
Prepared by: Kris Wilson,Assistant City Administrator
Request for: 1 additional full-time IT staff person
Addition: Yes
Pay Grade Estimate: Grade 7
Date of Change: March 1,2015
Wage&Benefit Cost: Full-Year=$85,000/March 1 start date=$70,000
Description Details:
The City currently has a staff of two full-time IT professionals supporting the entire
organization. One focuses primarily on hardware acquisition and installation and end-
user support. The other is primarily occupied with server administration,network
security and disaster recovery. They are assisted by the City's Telecommunications
Coordinator as workload allows.
As each City department has become increasingly reliant on technology and
computerized processes,this staffing level is no longer sufficient. There is a need for an
additional staff person to ensure that Departmental needs are met in a timely manner and
that the City is taking advantage of and properly implementing new technologies that
improve workflow, efficiency,and overall customer service.
Specific projects anticipated in 2015 include the transition to an entirely new records
management software for the police and fire departments, continued efforts to automate
workflow in the Finance Department and City Clerk's office,and the implementation of
new and improved tracking tools for development and redevelopment projects.
If given preliminary budget approval,the exact job title,responsibilities and skill set
would be flushed out once the currently vacant IT Manager position is filled.
i
City of Shakopee
Budget Personnel Request or Position Change
2015 Budget
Department: Prepared by:
Finance Julie A. Linnihan
Request for: (specify) 1 full time additional Finance/Clerk Position
-Staff(Full Time Part Time Seasonal,Temporary
Position Classification Change
-Staff Reduction
Addition: Change in Position:
(check one)
Full time position will assist with internal control functions,
Description Details: reconciliations, cash deposits and back-up duties for finance related
transactions.
Assist in the clerks department with management and expansion of
laserfiche programs, election training and compliance, record
retention procedures,file management and data security compliance.
Assist with the establishment, maintenance and follow-up required of
the recently established EDA and business subsidy programs,working
with tracking of data,financial flows and reporting compliance.
Pay Grade Estimate: Grade 4
Date of Change: 2-1-2014
Add'I Information: Position will provide back up to current positions, cross training for
expanded technology procedures as well as oversight of internal
control practices throughout the department.
Reviewed by: Date:
Approved by: Date: