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Home My WebLink About3.D. Budget Reduction Options ~,S . I CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Budget Reduction Options DATE: October 20, 2006 INTRODUCTION: At its workshop meeting on October 24th, the City Council will be asked to consider options to reduce the levy increase proposed for FY 2007. BACKGROUND: In September,lhe Council discussed a number of options for theFY 2007 budget It adopted a preliminary FY 2007 budget, which set a maximum levy with an estimated resultant tax rate of33.668. The Council then directed staff to suggest ways to reduce the proposed levy to an estimated rate of 32.964. Staffhas spent a great deal of time researching and discussing the options. As a result, Finance Director Gregg V oxland is providing possible methods for reducing the levy as directed, but also additional options, with choices ranging from no rate increase, to up to a 6.5% rate increase (shown on the attached spreadsheet as alternatives A through E). The total increase of the amount of property taxes to be paid by owners ranges from 7.4%, to 14.7%. Obviously, the larger the increase in the tax rate that City Council is willing to consider, the greater the number of service options that can be funded: 1. Two Police Officers. $119,178. This is shown as being cut in Alternatives A, B, and C. Failure to add these positions will have a negative effect on the ability to respond to crime issues in our growing city. There are currently 2 vacancies which are in the process of being filled, bringing the total sworn staffing to 46 which is authorized for 2006. 2. Police Records Supervisor. $65,100. Alternative "A" cuts this entirely; alternative "B" funds this position starting April 1 st. Chief Hughes feels strongly that this is his highest optional priority, and that having a Police Records Supervisor will help the department analyze crime information so that the existing staff will be able to work more effectively to solve crime. 3. Office Service Worker - Fire Department. $48,500. This has been eliminated in Alternate A, is shown as half-time in Alt. B, and provided totally in Alt. C, D, and E, (reflecting salary and benefits for an entry level office service worker).ChiefSchwaesdall has suggested a possible new source of funding by charging beneficiaries for fire calls (which is passed through to insurance companies). Some cities and townships are currently doing this, but it is not common. While the Shakopee Fire Department has not accurately kept track of the number of calls for which "call" charges could be made, it is estimated that this might generate $30,000. This could be a source of funding for this position. 4. Recreation Supervisor. ($87,800). This is cut in alternates "A" and "B". It shows an April 1 st start in alternate "C". Funding was requested and provided in the 2006 budget to add a position that would assist in several program areas. The position would also coordinate marketing and communications efforts, accessibility and ADA compliance, budget preparation, new program development, and special projects such as online registration. The PRAB feels strongly that the City should fill this position as soon as possible; ifthe position is not provided, a discussion between the PRAB and Council will be needed to determine reductions in existing services, and/or deferring new projeGtsand initiatives. 5. Park Maintenance Position. $47,960. This is cut entirely in option "A"; option "B" includes this position (and a street maintenance position in #6 below) as a July 1 st start. However, given the problems with hiring maintenance people mid-year, an option might be for the parks maintenance person to start April 1 st and the street maintenance position on October 1 st. Both positions are needed due to previous growth in the City; the Public Works Department has not added maintenance personnel for a couple of years. The improvements to the park system in 2006 alone warrant an additional position. 6. Street Maintenance Position. $47,960. See #5 above. Since the last Public Works position was added, nearly a full snow plow route of new streets has been added. One alternative to this hire would be to go with increased use of seasonal employees to add staffing when the needs are the most critical. 7. Public Works Office Worker (part-time). $10,000. This anticipates a July.. 1 st start at the earliest for this position. This is shown as a cut in alternate "A". Adding this position would assist Public Works in automating its records, and make for more efficient use of current resources. 8. GIS Position. $22,613. This would be an April I st start. The cost represents one-half of the cost ofthis position, with the other half coming from the Sewer and Storm funds. This position would assist Public Works (andothei City departments) in automating information which is currently available, but /" not in a useable form. This will allow for greater efficiencies in maintenance, and long term reduced costs. 9. Seal Coat. $50,000. This is cut in alternatives A, B, & C. The 2006 budget has $100,000 funded; initially, the 2007 budget would have doubled that amount. Therefore, the $50,000 reduction still amounts to a $50,000 increase ($150,000 total) over 2006 levels. However, Public Works Director Loney notes in the Pavement Preservation Plan that the City has fallen behind, and reducing maintenance now wi1l1-ead to more expensive reconstruction in future years. Additional funding from the State Aid account could be used to supplement this expense. 10. Hometown Messenger. $7,000. This actually reflects a reduction of$10,000 from the 2006 budgeted amount of$17,000. However, unless the Council chooses to change the format of the Hometown Messenger (for example, going back to a separately produced and mailed document). It should be noted that with a new half time Communications Coordinator position, there are few dollars available for that position to do print media work, so the Council may wish to consider reinstating the $10,000. 11. Update Pay Plan. $50,000. Alternates "A" and "B" show a reduction of $25,000. While the specifics have not yet been finalized, the initial estimate of what it would cost to implement an updated City pay pi an (salary, PERA, and FICA) is approximately $134,000 for the City's full-time, non-union employees. Preliminary indications show that the three unions are in line with market, but compensation for non-contract employees ranges from no change needed, to 11.5% below the target that the Council has set. The $134,000 is out of a total non-union salary cost of $4.3 million. Implementing the new pay plan mid-year would have a cost of$67,000. The concern of funding only $25,000 would mean that this would have to start late in the year - November 1st. Given the (always) possible reinstitution oflevy limits, partial year funding in 2007 could create significant problems in 2008. Therefore, the Council. should decide as to whether to add additional dollars for 2007, which will position the city better for 2008. 12. Congregate Dining. ($29,730). This is to fund the senior dining facility at Levee Drive Apartments. A workshop is needed on this with the CAP Agency so that the Council is fully aware of the program and the investment that the City is making. There are few alternatives due to the unique needs of this program (commercial kitchen facilities, transportation, etc). 13. Community Survey. ($25,000). One of the goals and objectives in the Visioning Plan was to survey the community for feedback on how well services are being provided, and what priorities the residents see. This is not included in any of the alternatives. 14. Huber Park Performances ($14,000). This is eliminated in alternate "A". If this funding is eliminated, the City could continue the existing series (approximately 6 performances). Another option is to seek private sponsorships for the series, but that would require a significant amount of staff time. 15: Recreation/Park Planning Initiatives. ($25,000). This is an extension of the Springsted Cost of Services study. This is eliminated in alternate "A". If the funding is eliminated, it is possible that existing City staff could undertake the comprehensive park planning effort. However, with the amount of projects continuing into 2007, it is not likely that the planning efforts would be able to begin until mid to late summer 2007. This would push completion of the comprehensive park plan update into early 2008. It should be noted. that if Council desires to undertake the cost study or prioritization study without an outside contractor, there will have to be a reprioritization of existing workloads. The council could also eliminate components ofthe project, such as the cost study or the. prioritization of services study; Railroad Overpasses: Council should be aware of the possible need for City financial participation in the repainting the two railroad overpasses on C.R. 101, west of Rahr Malting. This was identified as a task in the Visioning process. Bob Micheletti ofRahr has had preliminary contact with the railroads, and getting them to participate in the funding seems questionable at this time. If this is lead-based paint, it will need to be. sandblasted and removed with appropriate environmental precautions taken. It is possible that the cost could be in excess of $1 00,000 (and may be significantly more than that). This is not provided in the proposed budget. Impact of Delayed Hires/Implementation: The City has had a tendency to add certain employee positions mid-year, for budgetary purposes. That is understandable, as it costs only 50% as much to budget a position that starts July 1st-for that year. However, in the next budget year, unless that position is eliminated, the costs are "fully loaded". Five positions were started mid-year in 2006, which is part of the reason that the percent oflevy increase just to maintain the existing level of services for 2007 in what it is. The proposed budget for 2007 includes the following mid-year starts: . Two Public Works positions . Police Records Supervisor . Recreation Supervisor . GIS Position In addition, an option is presented to implement the pay plan for a partial year. The possibility of the State imposing levy limits would further complicate the 2008 levy issue. Therefore, the Council should decide as to whether or not to levy these additional dollars for full year funding for 2007. As difficult as that may be, it would position the City better for potential 2008 levy limits. Note that none of these changes will be reflected in the Truth in Taxation Notices that will be mailed to taxpayers in November. Those will still reflect a levy amount of 33.668-an amount even more than that in Alternate E on the spreadsheet. ACTION REQUIRED: Council should discuss and give direction on FY07 budget alternatives. ~~ Mark McNeill City Administrator MM:th A B C D E Tax Rate Tax Rate Tax Rate Tax Rate Tax Rate 2006 30.974 31.644 31.974 32.615 32.974 $10,681,136 $12,123,500 $12,364,800 $12,484,000 $12,751,800 $12,844,500 Levy % 13.5% 15.8% 16.9% 19.4% 20.3% Rate % 0.0% 2.2% 3.2% 5.3% 6.5% 1m act % 7.4% 9.9% 11.1% 13.4% 14.7% SUMMARY GENERAL FUND - 2007 GF Total Revenue per print 16,054,950 16,054,950 16,054,950 16,054,950 16,054,950 Tax Rate ChanQe from proposed (971,200) (730,000) (610,700) (380,000) (250,200) Market Value Credit Inc. Inc. Inc. Inc. Inc. Transfer In 1 ,603.130 1 ,603.130 1,603.130 1,603,131 1 ,603,130 Total Revenue & Transfers 16,686.880 16.928,080 17,047,380 17.278,081 17 .407 ,880 GF Expend per print 16,654,830 16,654,830 16,654,830 16,654,830 16,654,830 Options to cut (514,611) (321,213) (190,588) 48,500 48,500 EDA Transfer out 70,000 70,000 70,000 70,000 70,000 Recreation Transfer out 1,156,710 1 ,156,710 1.156,710 1,156,710 1,156.710 Total Expenditures and Transfers 17,366,929 17,560,327 17,690,952 17,930,040 17,930,040 Net surplus (deficit) (680,049) (632,247) (643,572) (651,959) (522,160) Fundin!:! From Fund Balance 800MHZ Radios 456,000. 456,000 456,001 456,000 Other items _J~__I,il_I1'.&l "",\1\frlil~jWi!!iII;~ffiI!illllll. Underspend/overbudQet factor 4% (MVC) 134,330 134,330 134,330 134,330 Net surplus (deficit) 23.083 11.758 3.372 133.170 Included in draft bud!:!et Request ~ ~ ~ 2 Police officers 119,178 {U9,178) (119,178) Police Records Supervisor 65,100 (65,100) Office Service Worker - Fire 48,500 Cut Park Maintenance 47,960 (47 1960) , Street Maintenance 47,960 (47,960) (23,980) (23,980) PW Office Worker PT 10,000 (10,000) Seal Coat 50,000 (50,000) (50,000) (50,000) GIS position (3/4 time - 1/2 . 22,613 (22,613) Home Town Messenger 7,000 Up date pay plan 50,000 (25,000) (25,000) Congregate Dining 29,730 Community Survey 25,000 Cut Cut Cut Cut Cut Recreation Superintendant pos 87,800 (87,800) (87,800) (21,950) Huber Park Performances 14,000 (14,000) Rec/Park Planning Initiatives 25,000 (25,000) CC Security Cameras - Cemetary access City monuments I . ............... ,f' ';., ,~,\",y,> ,J~;",:'>,::~";'ii -<,,;J' 104,000 (514,611) (321.213) (190,:>88) 48,500 48,500 H:\BUDGET\Budget07\Options.xls 2007 levy options (5) 10/20/2006 8: 39 AM <\ Comparative Tax Rates 2006 Jordan Savage Metro average Average of 22 cities Shakopee 2007 _3 .&/.5 Prior Lake Shakopee 0 10 20 30 40 50 60 Tax Rate Shakopee General Fund 18,000,000 16,000,000 14,000,000 12,000,000 ~Total Sources ___GF Tax Levy 10,000,000 -Total Uses 8,000,000 6,000,000 4,000,000 2,000,000 - 2000 2001 2002 2003 2004 2005 2006 YEAR 9:41 AM 10/20/2006 GENERAL07.xLS GF totals R5509BUD LOGISOO1 CITY OF SHAKOPEE 10/20/2006 9:47:32 Fiscal Period: 9 / 06 Budget Report Page- 1 Level Of Rollup 6 2003 2004 2005 9/30/2006 2006 2007 2007 2007 Actual Actual Actual YTD Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 01000 GENERAL FUND 4000 REVENUES AND EXPENDITURES 4001 REVENUES 4005 TAXES 4010 PROPERTY TAX 6,972,300- 7,326,802- 8.141,111- 4,390,034- 9,379,850- 10,680,160- 12,163,990- 12,163,990- 4005 TAXES 6,972,300- 7,326,802- 8,741,111- 4,390,034- 9,379,850- 10,680,160- 12,163,990- 12,163,990- 4100 SPECIAL ASSESSMENT 4110 SPECIAL ASSESSMENT PRINCIPAL 10,641- 8,517 978- 3,625- 2,000- 2,000- 2,000- 4111 SPEC ASSESSMENT INTEREST 2. 1,461- 1,375- 4112 SA PENALTIES & INTEREST 240- 4120 SAPREPAY 4,687- 270- 540- 4100 SPECIAL ASSESSMENT 15,570- 6,786 2,892- 3,625- 2,000- 2,000- 2,000- 4200 LICENSES AND PERMITS 4201 LICENSES 114,880- 117,790- 144,162- 119,214- 136,000- 149,700- 149,700- 149,700- 4250 PERMITS 3,112,384- 3,079,900- 3,033,360- 1,273,453- 1,377,000- 1,355,000- 1,355,000- 1,355,000- 4200 LICENSES AND PERMITS 3,227,264- 3,197,690- 3,177,521- 1,392,668- 1,513,000- 1,504,700- 1,504,700- 1,504,700- 4400 INTERGOVERNMENTAL 4410 FEDERAL GRANTS 80,601- 83,452- 131,305- 145,214- 143,370- 13,000- 13,000- 13,000- 4450 STATE GRANTS & AIDS 454,727- 281,528- 302,906- 473,001- 215,000- 248,960- 248,960- 248,960- 4400 INTERGOVERNMENTAL 535,329- 364,979- 434,211- 618,214- 358,370- 261,960- 261,960- 261,960- 4500 CHARGES FOR SERVICE 4510 ADMINISTRATIVE CHARGES 156,944- 180,690- 174,021- 24,024- 139,660- 109,800- 109,800- 109,800- 4570 COMMUNITY DEVELOPMENT 57,236- 52,875- 50,168- 32,051- 58,000- 266,000- 266,000- 266,000- 4600 ENGINEERING 1,072,144- 1,157,148- 1,093,710- 520,173- 700,000- 800,000- 800,000- 800,000- 4640 PUBLIC SAFETY FEES 176,432- 160,607- 222,613- 208,087- 165,000- 311,000- 356,000- 356,000- 4670 PUBLIC WORKS 18,384- 13,713- 23,440- 8,431- 14,000- 16,000- 16,000- 16,000- 4750 REFUSE 10,399- 9,616- 10,003- 8,791- 11,000- 11,000- 11,000- 11,000- 4760 RECREATION FEES 74- 4500 CHARGES FOR SERVICE 1,491,614- 1,574,649- 1,573,955- 801,557- 1,087,660- 1,513,800- 1,558,800- 1,558,800- 4820 FINES & FORFEITS 4821 FINES & FORFEITS 232,975- 249,642- 191,561- 166,745- 267,000- 280,000- 280,000- 280,000- 4822 FINES & FORFEITS - SJPA 6,613- 6,121- 86,213- 89,913- 4820 FINES & FORFEITS 239,588- 255,763- 277,774- 256,659- 267,000- 280,000- 280,000- 280,000- 4830 MISCELLANEOUS R5509BUD LOGIS001 CITY OF SHAKOPEE 10/20/2006 9:47:32 Fiscal Period: 9 / 06 Budget Report Page - 2 Level Of Rollup 6 2003 2004 2005 9/30/2006 2006 2007 2007 2007 Actual Actual Actual YTD Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 4832 INVESTMENT INCOME 222,061- 136,758- 200,727- 83,412- 150,000- 220,000- 220,000- 220,000- 4840 RENTS 3,842- 1,876- 5,017- 427- 1,000- 2,000- 2,000- 2,000- 4843 COMMISSIONS 649- 935- 471- 4845 CONTRIBUTIONS 500- 8,050- 15,125- 14,130- 4850 MISCELLANEOUS 45,250- 34,805- 72,920- 9,817- 50,000- 61,500- 61,500- 61,500- 4830 MISCELLANEOUS 271,653- 174,088- 287,650- 109,252- 215,130- 283,500- 283,500- 283,500- 4001 REVENUES 12,753,317- 12,887,186- 14,495,114- 7,572,008- 12,821,010- 14,526,120- 16,054,950- 16,054,950- 6000 EXPENDITURES 6001 WAGES & BENEFITS 6002 WAGES 4,742,206 5,394,700 5,814,190 4,521,508 6,808,500 7,616,480 7,489,750 7,489,750 6100 BENEFITS 1,435,111 1,661,838 1,874,849 1,215,539 2,335,040 2,540,200 2,380,610 2,380,610 6001 WAGES & BENEFITS 6,177;318 7,056,538 7,689,039 5,737,047 9,143,540 10,156,680 9,870,360 9,870,360 6200 SUPPLIES AND SERVICES 6201 SUPPLIES & SERVICES 574,203 713,554 850,827 629,133 1,047,590 1,438,260 1,423,260 1,423,260 6300 PROFESSIONAL SERVICES 1,314,630 1,341,274 1,418,186 1,205,182 1,729,230 1,878,280 1,878,280 1,878,280 6330 COMMUNICATIONS 95,480 104,769 98,108 87,957 130,350 159,150 152,150 152,150 6350 INSURANCE 149,037 189,097 174,320 210,098 231,570 254,960 254,960 254,960 6360 UTILITY SERVICE 244,132 334,876 348,255 268,695 513,800 540,700 540,700 540,700 6400 RENTALS 1,018,824 1,297,477 1,361,471 1,252,241 1,661,540 1,788,700 1,788,700 1,788,700 6470 DUES/TRAININGITRAVEL 104,072 131,919 153,124 117,879 198,560 260,380 260,380 260,380 6498 EXPENSE CHARGED BACK 44,000- 49,000- 27,000- 53,000- 318,610- 318,610- 318,610- 6200 SUPPLIES AND SERVICES 3,456,380 4,063,966 4,377,291 3,771,184 5,459,640 6,001,820 5,979,820 5,979,820 6500 DEPRECIATION 6600 MISCELLANEOUS 6620 PROPERTY TAX/SPECIAL ASSESS 86,989 79,393 95,940 84,286 90,920 43,150 43,150 43,150 6640 DESIGNATED MISCELLANEOUS 3,199 6,693 3,999 6,272 4,500 56,000 86,000 86,000 6680 CONTINGENCY 33,028 135,000 145,000 125,000 125,000 6600 MISCELLANEOUS 123,217 86,086 99,939 90,558 230,420 244,150 254,150 254,150 6700 CAPITAL OUTLAY 6740 EQUIPMENT 73,097 16,203 93,703 108,765 106,500 525,500 550,500 550,500 6760 IMPROVEMENTS 3,273 3,273- 6700 CAPITAL OUTLAY 76,370 12,930 93,703 108,765 106,500 525,500 550,500 550,500 6800 DEBT SERVICE R5509BUD LOGISOO1 CITY OF SHAKO PEE 10/20/2006 9:47:32 Fiscal Period: 9 / 06 Budget Report Page - 3 Level Of Rollup 6 2003 2004 2005 9/30/2006 2006 2007 2007 2007 Actual Actual Actual YTD Final Requested Approved Final Object Code I Description Amount Amount Amount Actual Budget Budget Budget Budget 6000 EXPENDITURES 9,833,284 11,219,519 12,259,971 9,707,554 14,940,100 16,928,150 16,654,830 16,654,830 ~ 8005 TOTAL TRANSFERS IN 8010 OPERATING TRANSFERS IN 156,309- 103,130- 103,130- 103,130- 8011 TRANSFER FROM ELECTRIC FUND 588,330- 653,526- 788,281- 972,000- 1,625,000- 1,500,000- 1,500,000- 1,500,000- 8012 TRANSFER FROM WATER FUND 534,025- 532,725- 584,850- 8010 OPERATING TRANSFERS IN 1,122,355- 1,342,560- 1,373,131- 972,000- 1,625,000- 1,603,130- 1,603,130- 1,603,130- 8005 TOTAL TRANSFERS IN 1,122,355- 1,342,560- 1,373,131- 972,000- 1,625,000- 1,603,130- 1,603,130- 1,603,130- 8050 TOTAL TRANSFERS OUT 8052 TRANSFERS OUT 8053 TRANSFERS OUT 1.052,950 59,884 29,230 25,479 31,000 1,277 ,670 70,000 70,000 8054 OPERATING TRANSFER/DEBT SERV 381,357 8056 OPERATING TRANSFER/CAPITAL FD 72,206 8058 OPERATING TRANSFER RECREATION 878,700 966,950 1,074,550 1,287,110 1,287,110 1,156,710 1,156,710 8101 PROCEEDS FROM SALE (GAIN/LOSS) 2,700- 8052 TRANSFERS OUT 1,931,650 1,408,191 1,175,986 1,309,889 1,318,110 1,277 ,670 1,226,710 1,226,710 8050 TOTAL TRANSFERS OUT 1,931,650 1,408,191 1,175,986 1,309,889 1,318,110 1,277,670 1,226,710 1,226,710 4000 REVENUES AND EXPENDITURES 2,110,738- 1,602,035- 2,432,288- 2,473,436 1,812,200 2,076,570 223,460 223,460 01000 GENERAL FUND 2,110,738- 1,602,035- 2,432,288- 2,473,436 1,812,200 2,076,570 223,460 223,460 ;<~O . CITY OF SHAKOPEE Memorandum TO: Mayor and City Council - Only FROM: Mark McNeill, City Administrator SUBJECT: Post Script - Pay Plan Update Costs DATE: October 19, 2006 One item of which I wanted to make you aware, but did not choose to include in the comprehensive memo on budget discussion for Tuesday's workshop, is the pay plan impact. As shown in the initial memo, updating only the non-contract employee portion ofthe City's pay plan is estimated to cost $134,000. In addition, if the City is to include funding to address the current exempt/non-exempt issue (exempt employees receive an extra week of vacation annually to compensate for night meetings, etc. that they usually are hard-pressed to take), and to potentially add a mid-level grade (pay grades 6, 7, and 8 have arguably too many employee positions assigned within), the Council should probably anticipate an additional $30,000 on top of the $134,000. Preliminary indications from consultant Rod Kelsey indicate that the three union groups are probably not in need of pay plan changes (probably a testament to the fact that collective bargaining has been effective for them). However, whether the unions choose to believe that or not is something else - each has a reopener in their contract (Sergeants to renegotiate at the end of this year), which wi1l1ikely mean that we will at least need to go through discussions with them as to whyno salary adjustments are needed. Mr. Kelsey also states that in general, the City is relatively competitive on the majority of the lower level positions, but disparities become more pronounced (in terms of underpayment) at the upper levels. He indicates this is not unusual for public sector employers. In other words, supervisors and department head positions are most likely to have fallen behind the target set by Council. That target is 60% ofthe median ofthe ten comparison cities. Why should this be a concern? I know that, given the amount ofthe increase being contemplated for taxes. 9nd the difficult choices that will have to be made, it would be easy to choose not to address the pay plan update in 2007. My concern is that the City needs to stay competitive in its salary structure, especially for department head positions. I have talked with many of my counterparts, who reflect the trend nationally of an impending gap for many of the "skill positions". Many of the other cities in the metropolitan area are anticipating a large scale retirement of department heads in the next two to five years. I don't want to lose our people to them, at least because of financial reasons. (I know of one large suburb that has been unsuccessful in filling its Finance Director position for eight months; they finally gave up on it. Similarly, one of Shakopee's neighbors has been seeking to hire one of our department heads away for a couple of years.) Again, I realize that this is a very tough year financially, and it will not be easy to devote money to pay plan updates (and justify larger than employee coat of living adjustments to our constituents). However, losing any of our key people to other public agencies costs Shakopee not only in terms of the dollars needed to replace that talent, but also the working knowledge that they have of Shakopee. FYI 'tu(7 ~cU~ Mark McNeill City Administrator MM:th ~.o. PO~U"m("/'I.t (~n,E?Re:}. City of Shakopee ESTIMA TED ESTIMA TED ESTlMA TED ESTIMA TED Pay 2007 Tax Cap TIF Fiscal Disparity Taxable NTC Ref Market Val Shakopee 41,537,000 (433,297) (5,049,204) 36,054,499 3,382,962,550 Levy Gross Fisc Disp Dist Spread Taxable NTC Est TC Rate Net Tax Cap Based ~.$ (955,804) $ 11,523,196 36,054,499 31.960% 2006 2007 % (+/-) NTC Levy over 2006 Levy Ref MV Est MV Rate $ 10,681,136 16.832% Market Value Based __ $ - $ 250,781 3,382,962,550 0.00741% 2007 Impact of Levy assuming 6.17% market value increase over pay 2006 TAX IMPACT 2007 Estimated Estimated Estimated Estimated Estimated % $$ Value Tax Capacity NTC Tax Rate NTC Tax MV Rate MV Tax MV Credit 2007 Total Tax Taxlnc/dec Tax Inc/dec 175.181 1,752 31.960% $ 559.89 0.00741% $ 12.99 $ 68.72 $ 504.16 12.222% $ 54.91 · ?::l.d n<;::lil 2,341 31.960% $ 748.04 0.00741% $ 17.35 $ 51.76 $ 713.63 11.062% $ 71.08 267,548 2,675 31.960% $ 855.10 0.00741% $ 19.83 $ 42.11 $ 832.82 10.657% $ 80.20 318,510 3,185 31.960% $ 1,017.97 0.00741% $ 23.61 $ 27.44 $ 1,014.15 10.235% $ 94:16 2006 Value Tax Cap NTC Tax Rate NTC Tax Ref MV Rate MV Tax MV Credit 2006 Total Tax 165,000 1,650 30.974% $ 511.07 0.00848% $ 13.99 $ 75.81 $ 449.25 >< > (220,437j 2,204 30.974% $ 682.78 0.00848% $ 18.69 $ 58.92 $ 642.56 252,000 2,520 30.974% $ 780.54 0.00848% $ 21.37 $ 49.30 $ 752.61 300,000 3,000 30.974% $ 929.22 0.00848% $ 25.44 $ 34.67 $ 919.99