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Home My WebLink About10.G.2. 2012/2013 Proposed Tax Levy-Res. No. 7227 and Proposed 2013 General Fund Budget 10.&.. CITY OF SHAKOPEE Memorandum To: Mayor and Council From: Mark McNeill, City Administrator Julie A. Linnihan, Finance Director /City Clerk Re: 2012/2013 Proposed Property Tax Levy Resolution No. 7227 and Preliminary Budget Date: September 4, 2012 Action Requested: Approve the proposed FY 2013 Property Tax Levy Resolution No. 7227 and Preliminary General Fund and EDA Budget Background As a result of four budget workshops which were held by the City Council in July and August, the proposed 2013 Property Tax levy is presented. If approved at the September 4 meeting of the Council, the levy would then be certified to Scott County in order to comply with the September 15 statutory deadline. Additionally, the Council is asked to approve the 2013 preliminary General Fund and EDA budgets. Adoption of the final levies and budgets will occur in December 2012. Property Tax Levy The property tax levy for 2013 collection as compared to the 2012 collection is as follows: 2011/2012 2012/2013 General Operating Levy $14,580,931 $15,379,723 Debt Service Levy $136,507 $0 Fire Station $120,000 $150,000 (Referendum Levy) The 2013 levy provides for a 4.5% increase over 2012. New Initiatives The proposed 2013 levy increase provides for the following initiatives: Economic Development Specialist $ 72,146 Human Resources Technician $ 67,600 Six Paid On -Call Fire Fighters $ 40,000 Full -Time Fire Fighters (4) $125,000 Natural Resources Technician $ 57,596 Crime Prevention Specialist $ 62,151 Feasibility Studies — (archeological) $ 10,000 Downtown Flower Baskets $ 13,000 2004B Fire Building Referendum Bond $ 30,000 TOTAL $477,493 These new initiatives have been discussed by Council, and were placed in the preliminary budget per Council approval at the August 28, 2012 work session. By agreeing to these initiatives, the increases for the future 2014 budget will be an additional $187,326. The consensus of the Council at the final workshop was that the Council would work to further refine expenditure issues, prior to the December, 2012, final adoption. Transfers The 2013 budget also provides for the following transfers: • Transfer to the Capital Improvement Fund - $500,000 dedicated to funding a portion of the 2013 infrastructure program. • Transfer to the EDA - $150,000 for the Facade Improvement Program. • Transfer to the EDA - $80,000 for funding the EDA operational programs. • Transfer to the EDA - $70,000 to fund the newly created Economic Development Specialist position. • Transfer to the Debt Service Fund - $60,000 to the 2006A Improvement Bond. Revenue Overview Revenue Sources for the General Fund are increased to reflect: • Increased recreation fees and permit fees per anticipated rate schedule updates (2% increase) • Increased transfer in from Enterprise Funds (Sanitary Sewer, Surface Water)— per increased cost sharing and operational allocations. • Increased Intergovernmental revenues for payments from Mn/DOT and other state and local agencies Expenditure Overview The 2013 budgets have been increased to reflect: • 2% wage increases • Health insurance estimated increases • Anticipated increases for fuel and fuel related costs • Internal Service Funds have remained essentially flat. Tax Impact The City of Shakopee, like other cities in Scott County, is experiencing a taxable market value property decline. This amount is roughly 9% lower than the previous year. This property value reduction, per County estimates, will impact approximately 98% of residential properties. Approximately 2% of properties will experience flat or slightly increased values. The property tax impact for a typical residential property with a value of $195,039 in the previous year, ranges from an increase of $255, to a decrease of $40. This is an estimate based on the most recent County information of property values. 2 % EMV Value # of % Taxable Taxable Taxable % Net Net Net Net Range affected of Market Value Market Value Change Payable Payable Change Difference Inc /Dec Properties Total 2012 2013 12 vs 13 2012 2013 12 vs 13 % Change Shakopee +15.01 +% - 0% $ 195,039 $ 229,881 17.86% $ 722.26 $ 977.58 $ 255.32 35.7% +10.01 - 15.00% 3 0% $ 195,039 $ 224,074 14.89% $ 722.26 $ 952.93 $ 230.66 32.3% +5.01 - 10.00% 20 0% $ 195,039 $ 212,460 8.93% $ 722.26 $ 903.62 $ 181.35 25.4% +0.01 -5.00% 112 1% $ 195,039 $ 200,846 2.98% $ 722.26 $ 854.31 $ 132.05 18.5% No Change 149 1% $ 195,039 $ 195,039 0.00% $ 722.26 $ 829.66 $ 107.39 15.0% - 0.01 -5.00% 782 7% $ 195,039 $ 189,232 -2.98% $ 722.26 $ 805.00 $ 82.74 11.6% -5.01 - 10.00% 3,154 28% $ 195,039 $ 177,618 -8.93% $ 722.26 $ 755.69 $ 33.43 4.7% -10.00 - 15.00% 3,038 27% $ 195,039 $ 166,004 - 14.89% $ 722.26 $ 706.39 $ (15.88) -2.2% - 15.01% + 4,002 36% $ 195,039 $ 160,197 - 17.86% $ 722.26 $ 681.73 $ (40.53) -5.7% 11,260 100% Truth In Taxation At the Tuesday, September 4, 2012 City Council meeting, the Mayor is requested to announce that the 2013 budget and property tax levies will be presented for public input and discussion. The requirements to hold a special Truth In Taxation public hearing, continuation hearing, and levy adoption hearing have been repealed. The exemption from holding a Truth In Taxation public hearing if the current year levy increase is less than the annual percentage of inflation percentage has also been repealed. In other words, the requirement for the Truth In Taxation public hearing has been replaced with the public notification of the December 4, 2012 meeting. Action Offer Resolution Number 7227, A Resolution Setting the Proposed Maximum 2012 Property Tax Levy, Collectible In 2013, and move its adoption. , Q Alta Mark McNeill ie Linnihan City Administrator Finance Director /City Clerk 3 RESOLUTION NO. 7227 A RESOLUTION SETTING PROPOSED MAXIMUM 2012 PROPERTY TAX LEVY, COLLECTIBLE IN 2013 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 $15,379,723 Debt Service — Fire Referendum $ 150,000 (Market Value) BE IT FURTHER RESOLVED, that the proposed expenditures for the General Fund Budget for 2013 is $21,392,212 BE IT FURTHER RESOLVED, that the public meeting on the tax levy and budget is set for December 4 at 7:00 pm, located at City Hall, 129 Holmes St. Adopted in session of the City Council for the City of Shakopee, Minnesota held this day of September, 2012. Mayor of the City of Shakopee ATTEST: City Clerk 2013 Preliminary Budget 2012 2013 Revenues: Taxes $ 13,407,920 $ 14,579,000 * Special Assessments 11,000 11,000 Licenses and Permits 1,275,300 1,316,700 Intergovernmental 619,760 755,500 Charges for Services 3,890,630 3,852,150 Fines and Forfeitures 436,000 425,000 Miscellaneous 480,400 315,500 Total Current Revenues 20,121,010 21,254,850 Other Financing Sources: Transfers In from Enterprise Funds 222,400 150,000 Total Other Financing Sources 222,400 150,000 Total Revenues $ 20,343,410 $ 21,404,850 Expenditures: General Government $ 3,272,307 $ 3,385,265 Public Safety 9,667,231 9,953,889 Public Works 2,868,352 2,883,328 Park and Recreation 3,992,289 4,084,730 Unallocated 225,000 225,000 Capital Outlay 95,500 - Total Current Expenditures 20,120,679 20,532,212 Other Financing Uses: Transfers Out- EDA (2190): $150,000 Facade Program, $80,000 EDA Levy, $70,000 Added Position - 300,000 Transfer Out- Debt Service Fund (3038) 60,000 Transfers Out- Capital Project Fund (4021) per 5 year CIP program discussion 7/17/2012 - 500,000 Total Other Financing Sources - 860,000 Total Expenditures $ 20,120,679 $ 21,392,212 Debt Service Levies: 2004 B Fire Building Referredum Bond $ 120,000 $ 150,000 * Includes 4.5% increase in Tax Levy