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HomeMy WebLinkAbout10.F.1. 2015 Proposed Property Tax Levies and General Fund Budget General Business 10. F. 1. SHAKOPEE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Julie Linnihan, Finance Director/City Clerk DATE: 09/16/2014 SUBJECT: 2015 Proposed Property Tax Levies and General Fund Budget(C) -- Action Sought Approve the proposed FY 2015 Proposed Property Tax Levies, Resolution No. 7480, and the Preliminary General Fund Budget. Background The City of Shakopee is required to comply with the statutory deadlines for submittal of the property tax levy to Scott County. This year, the date was changed to September 30th, 2014. The preliminary levy amount that will be certified to Scott County before September 30th, 2014 is the base for budget work that will be brought back to City Council for continuing budget discussions in October and November. The final levy, which cannot be higher than the preliminary levy, but can be lower, will be brought to Council for approval at the December 2nd City council meeting. This will also be the date that will serve as the Public Meeting for local residents to discuss the 2015 budget and levies. This date will appear on the "Parcel Specific Notices" that will be sent to each property owner in November, 2014. City Staff if recommending that the City Council adopt the property tax levy as reviewed and discussed at the recent 9-2-2014 City Council work session. This levy increase represented a 10% increase over the prior year levy. 2013 Levy 2014 Levy Variance General Fund $ 15,793,220 $ 16,618,000 $ 824,780 2006A Debt $ 343,959 $ 343,215 $ (744) 2007B Debt $ - $ 92,052 $ 92,052 2004B Debt $ 175,000 $ 200,000 $ 25,000 Total $ 16,312,179 $ 17,253,267 $ 941,088 During the recent preliminary budget discussions, the following were discussed: •The growth estimates from Scott County, as provided by the "what if" analysis indicate a Total Market Value Increase of approximately 13 % over prior year values •The residential impact will reflect the growth on residential housing, as approximately 97 % of homes in Shakopee will see some value increase over the prior year value •As discussed, the preliminary levy request will allow for a 10 % increase from the prior year, to meet the initial project requirements that have been included in the budget discussion, as follows: •3 % personnel wage increases, per union contract settlements •Increased PERA contributions from the City, per mandated legislative action •Full year wages for any new positions added mid-year 2014 to reflect fully annualized personnel costs •Preliminary budget for 2015 includes health insurance rate increases, which will be reduced upon confirmation of rates •Increases in several department training and schooling categories, to ensure increased customer service demands •Increased costs for legal services specific to areas of City Clerk, as many components of the licensing, fees, elections require increased legal review •City code upgrade, to ensure a comprehensive codification review and implementation, through the use of American Legal Services and the League of MN Cities •Expanded records scanning and retention procedures, to ensure a more efficient retrieval of data •Increased costs for Scott County Assessing services, and Single Audit compliance •Increased lodging tax payments to the CVB, off-set by increased lodging tax revenues •Public Safety will see reductions in the 2015 budget, due to the contract changes specific to the Scott Joint Prosecution agreements, there will also be offsetting revenue reductions •Equipment maintenance charges have been reviewed and reduced where applicable •Information Technology charges are slightly increased to reflect the increased utilization and upgrades to equipment •Software upgrades will also be applicable to departments that are moving to a "paperless" flow, reducing time and increasing accuracy •Fire department costs reflect the full year hire of 4 full time staff, but also reflects the reduction for pension obligation, as the Shakopee Fire Relief fund is fully funded for the upcoming budget year •Public Works anticipates increased snow removal costs, specific to personnel, salt prices and on-going equipment maintenance •Additional funding requested for pavement preservation •Park maintenance costs and personnel will increase as the number and size of park developments increase •Transfers to other funds include increased transfer to the CIP from $750,000 to $ 1M in 2015, to provide for the extensive infrastructure needs •The fund for Economic Development related projects has also been a major discussion with the City Council, requests for the operational budget needs, as well as funding for improvement loans have been increased New Initiatives As the Council continues to review the 2015 requests, one significant area of request is related to the Downtown/ 101 Corridor work plan. As per work session discussion, the amount place for budget review is established at$500,000. As also reviewed, this plan may need multi-year funding to address the following topics: •Infrastructure replacement •Parking lots •Alleys •Lighting •Building improvements •Building acquisition As budget discussion continue the City Council can refine and more clearly define the projects that the Council agrees to fund for the 2015 budget year. The staffing requests have also been reviewed, and Kris Wilson will be following up with the Council request for additional information related to the IT department structure, as well as the Assistant Fire Chief position. Debt Service Staff has provided Council with specific details as to the status of outstanding debt, as well as recommendations for the 3 debt service levies that will be needed to provide the annual debt service payments. Recommendation Council is asked to approve the proposed FY 2015 Proposed Property Tax Levies, Resolution No. 7480, and the Preliminary General Fund Budget. Budget Impact Relationship to Vision Maintain the cities strong financial health(C) Requested Action Moved to approve the proposed FY 2015 Proposed Property Tax Levies, Resolution No. 7480, and the Preliminary General Fund Budget. Attachments: Scott County Property Assessment Tax Comparison Debt Service Fund Preliminary Budget General Fund Resolution No. 7480 Scott County Property Assessment Reporting 7 SCOU 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. 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"6D V7 U N 00 b V N Cl C W A y L : '0 O 00 ..., g a0 -' N O a � Z DPew a .� o F a «: 0 0 a op O � w A a 33 CC �, y; t, a, .�• W W o W v F 5 c " u a1 .d S b 3 " v 0��.I R ... ti ,, C F o Q °' a p Q °F' a o Q 3 � �' a A U Q � � U a U c U 0 U C U 0 cz■ Z W '= v v v a a1 ° u° ° 0 c° c O Z A t" 0) „Si 0. © 'Sa1 0) 0 O � 0 0 O 0 ,2 Q F 0 i 4 R m a v N .a - C4 co N ._ a CC N a a1 Fop m Co >a a C c 'S � a w c is V r A O w w w • 4 a Ca Q 0 0 a Q a 0D C7 a p * 2015 Preliminary Budget-Revenues,Expenditures and Requested initiatives Note: 2015 is based on the presented budgets,the same budget has been used for 2016 taking into account the actual full year of wages for the personnel budget initiatives and how those will affect future budgets. 2014 2015 2016 Revenues: Property Taxes $ 15,262,000 $ 16,618,000 $ 16,618,000 Tax Increments - _ Special Assessments 10,400 11,500 11,500 Licenses and Permits 1,267,000 1,319,300 1,319,300 Intergovernmental 938,200 1,023,393 1,023,393 Charges for Services 4,090,375 3,944,500 3,944,500 Fines and Forfeitures 375,000 251,000 251,000 Miscellaneous 320,300 251,500 251,500 Total Current Revenues 22,263,275 23,419,193 23,419,193 Other Financing Sources: Transfers In from Enterprise Funds 180,000 200,000 200,000 Total Other Financing Sources 180,000 200,000 200,000 _ Total Revenues_ „4 L ., 2. r,$ 22,443,275 $ 23;619,193- `$ 23,619,193 Expenditures: General Government $ 3,815,470 $ 4,059,505 $ 4,059,505 Public Safety 10,476,353 10,106,503 10,106,503 Public Works 3,117,870 3,058,021 3,058,021 Park and Recreation 4,215,932 4,546,140 4,546,140 Unallocated 235,000 259,500 259,500 Interest - - - Capital Outlay 1,700 1,500 1,500 Total Current Expenditures ? 21,862,325' 22,031,169 22,031,169 Other Financing Uses Initiatives to be Discussed: Transfers Out-EDA(2190)(Improvement program) 150,000 200,000 225,000 Transfers Out-EDA(2190)(Position and Operations) 180,000 200,000 225,000 Transfers Out-2006A Debt Service Fund - - - Transfers Out-Capital Project Fund(4021)per 5 year CIP 750,000 1,000,000 1,500,000 Total Other Financing Sources 1,080,000 1,400,000 1,950,000 Total Expenditures excluding Budget Initiatives 22,942,325 23,431,169 23,981,169 Budget Initiatives: Position/Project 2014 2015 Cost 2016 Cost New Positions: Assistant Chief Operations/Training(Div:32-Fire) - 77,472 115,417 IT Staff Restructuring(Div:12-Admin) - 253,603 253,603 Seasonal Park Maintenance Employees(Div:46-Park) - 8,800 8,800 Seasonal Park Maintenance Employees(Div:46-Park) - 8,800 8,800 Seasonal Park Maintenance Employees(Div:46-Park) - 8,800 8,800 Victim&Community Services Coordinator(Div:31-Police) - 65,202 65,202 Finance/Clerk Position(Div:15-Finance,13 Clerk) - 54,900 59,996 Position Changes: Admin) - 39,177 39,177 Projects: Downtown and 101 Corridor Project(Div:Downtown Capital) - 500,000 - Total Budget Initiatives 1,016,753 559,794 Total-Expenditurealife -BodletInitlativera t2' 390,963 %of 2015 Levy -3.1% -5.1% -5.7% Debt Service Payments Recommended to be Levied* 2004B GO Building Referendum 200,000 2006A Improvement Bond 343,215 2007B Improvement Bond 92,052 Total Debt Service Payments Recommended 635,267 * Council will need to address other additional debt service levies currently not included in the 2015 budget. 2015 Annual Budget GENERAL FUND SUMMARY 10131/2014 Preliminary Actual Actual Budget Requested Budget 2012 2013 Actual 2014 2015 2014 REVENUES: 0.00 0.00 0.00 0.00 0.00 TAXES 14,767,993.75 15,578,627.78 8,055,013.95 15,262,000.00 16,618,000.00 TAX INCREMENTS 5,085.95 8,519.74 9,419.49 0.00 0.00 SPECIAL ASSESSMENTS 13,228.46 10,990.10 (11,121.05) 10,400.00 11,500.00 LICENSES AND PERMITS 1,229,184.54 1,443,885.29 907,389.41 1,267,000.00 1,319,300.00 INTERGOVERNMENTAL 991,444.89 1,042,125.93 501,842.76 938,200.00 1,023,393.00 CHARGES FOR SERVICES 4,035,925.37 4,304,786.73 2,725,216.23 4,090,375.00 3,944,500.00 FINES AND FORFEITURES 368,166.63 348,261.64 202,908.43 375,000.00 251,000.00 MISCELLANEOUS 359,321.00 132,202.49 154,193.13 320,300.00 251,500.00 TOTAL REVENUES 21,770,350.59 22,869,399.70 12,544,862.35 22,263,275.00 23,419,193.00 EXPENDITURES: 0.00 0.00 0.00 0.00 0.00 GENERAL GOVERNMENT (3,152,173.30) (3,201,783.93) (2,296,617.31) (3,815,470.00) (4,059,505.00) PUBLIC SAFETY (9,261,790.95) (9,677,697.35) (6,272,421.02) (10,476,353.00) (10,106,503.00) PUBLIC WORKS (2,347,891.42) (2,587,906.76) (3,096,985.82) (3,117,870.00) (3,058,021.00) PARK AND RECREATION (3,793,880.49) (3,813,027.15) (2,468,174.81) (4,215,932.00) (4,546,140.00) UNALLOCATED (106,387.82) (118,280.83) (602,231.03) (235,000.00) (259,500.00) DEBT SERVICE 0.00 0.00 0.00 0.00 0.00 CAPITAL OUTLAY (31,979.17) (140,706.22) (39,193.18) (1,700.00) (1,500.00) TOTAL EXPENDITURES (18,694,103.15) (19,539,402.24) (14,775,623.17) (21,862,325.00) (22,031,169.00) OTHER FINANCING: 0.00 0.00 0.00 0.00 0.00 TRANSFERS IN 122,400.00 150,000.00 0.00 180,000.00 200,000.00 PROCEEDS FROM SALE OF ASSETS 0.00 150.00 314.49 0.00 0.00 BOND PROCEEDS 0.00 0.00 0.00 0.00 0.00 TRANSFERS OUT (2,980,000.00) (3,910,000.00) 0.00 (1,080,000.00) (1,400,000.00) TOTAL OTHER FINANCING (2,857,600.00) (3,759,850.00) 314.49 (900,000.00) (1,200,000.00) NET 218,647.44 (429,852.54) (2,230,446.33) (499,050.00) 188,024.00 Resolution No. 7480 A RESOLUTION SETTING PROPOSED MAXIMUM 2014 PROPERTY TAX LEVY, COLLECTIBLE IN 2015 BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the following amounts be levied as the proposed maximum tax levy in accordance with existing law for the current year upon the taxable property in the City of Shakopee; General Operating Levy $ 16,618,000 Debt Service 2004B $ 200,000 Debt Service 2006A $ 343,215 Debt Service 2007B $ 92,052 BE IT FURTHER RESOLVED,that the public meeting on the tax levy and budget is set for December 2nd, 2014 at 7:00 pm, located at City Hall, 129 Holmes Street South. Adopted in regular session of the City Council for the City of Shakopee, Minnesota held this 16th day of September, 2014. Mayor of the City of Shakopee ATTEST: