HomeMy WebLinkAbout4. Workshop Item-Market Value Homestead Credit
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CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Workshop Item - Market Value Homestead Credit
DATE: April 1, 2005
INTRODUCTION:
As part of the workshop preceding the regular Council meeting onApril5th, there will
need to be a discussion as to how to address what appears to be a shortfall in the 2005
budget caused by the State likely not reimbursing the City for Market Value Homestead
Credit (MVHC).
BACKGROUND:
The FY 05 budget has assumed reimbursement from the State of Minnesota for $545,000
in MVHC. MVHC is what is listed as "tax relief paid by the State of Minnesota" as a
line item on property tax statements. However, because ofthe State's budgetary
problems, it did not reimburse cities for this credit last year.
It was assumed when the budget was put together in 2004 that those monies would be
paid. However, one ofthe other things which was learned at the Minnesota Cities
Conference on March 31 st was that cities should not assume that that is going to happen.
While the State appears that it will make good on its LGApayments this year (for which
Shakopee has previously been reduced to nothing, so it is a moot point for us), there are
103 cities statewide, mostly in the metropolitan area, that will likely not receive MVHC.
The total payments to those 103 cities are approximately $40 million statewide. While
the State's budgetary forecast is vastly improved over what it was in the past couple of
years, it still assumes $200 million to come from Indian Gaming in this biennium. It is
not realistic to think that that will be generated, and therefore, the State will be looking
for ways to balance with budget without a tax increase. It is highly likely that the $40
million MVHC will not be paid.
. At the April 5th Council workshop, Financial Director V oxland will outline some ideas as
to how the City can address this.
'~VLwiu
Mark McNeill
City Administrator
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CITY OF SHAKO PEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Budget Reductions - 2005
DATE: April 5, 2005
Should the Council choose to minimize transfers of State aid or under spend monies into
the FY 05 general revenues, the following suggestions are being made for budget
reductions by department heads (this does not include Public Works and Fire):
Amount
0111 - Mayor and Council
Communications - Eliminate the last two issues of
the Hometown Messenger. $ 1,500
Reduce miscellaneous dues $ 2,000
SCALE $ 3,500
Volunteer Picnic/Employee Appreciation Lunch $ 1,000
0121 - Administration
Wages-4 month vacant ACA position (Gen. Fund portion) $ 7,000
Professional Services - Reduce Labor Relations $ 2,000
Eliminate Safety training for City Hall' $ 2,000
0131 - City Clerk
Equipment - Do not purchase voting booths $ 3,000
City Clerk records position $20,000 (approx)
Electronic Imagining $100,000
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0171 - Community Development (Planning)
Wages - Open Planner position $17,800
Conference School Training $ 500
Travel Subsistence $ 500
Reduce Office Supplies $ 5,000
Community Development (Inspections)
Office Supplies $ 1,500
Conference School Training $ 500
Telephone $ 2,000
Subscriptions/Publications $ 250
Dues/Training/Travel $ 250
Community Development (IT)
Wages - Savings from open GIS/IT Specialist $17,800
Conference/SchooVTraining $ 1,000
0181/0182 - Building Maintenance
Professional Services $ 8,000
7757/7758 - Park Development and Natural Resources
Reduce InternlGPS UnitlNatural Resource
Inventory Update $12,500
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0311 - Police Department
Wages - Vacant Records Tech Position $13,220
Vacant Deputy Chief Position $29,950
Two Vacant Officer Positions $40,160
(REDUCE available by $8700 for new Animal Control Contract)
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Add Southwest Metro Drug Task Force Reimbursement ($55,000)
Add SPUC Electric Reimburs4ment (Community Center) (69,400)
Public Works reductions 130,000
Engineering reductions 22,000
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