HomeMy WebLinkAbout2.A. 2014 Budget UpdateROSEMOUNTEXECUTIVE SUMMARY
CITY COUNCIL
City Council Work Session Meeting: August 14, 2013
AGENDA ITEM: 2014 Budget Update
DA PCION:
PREPARED BY: Dwight Johnson, City Administrator
AGENDA NO. 2.A.
ATTACHMENTS: Budget worksheets
APPROVED BY:
RECOMMENDED ACTION: Receive updated budget information and direct staff on final
changes for approval of preliminary levy on September 3, 2013.
BACKGROUND
Since our budget work session on July 1 O'h, several items of new information have been received that
affect our levy and estimated tax rates.
DISCUSSION
Items of new information
1. Estimated savings from replacing Lieutenant position with a Sergeant. The total direct and
indirect savings estimated from this proposal are estimated at $30,000 for 2014. We discussed this at the
July 10'' meeting, but because Lt. Ericson had just retired, we did not have a calculation of the savings with
this change.
2. Calculation of sales tax savings. In the first budget proposal on June 251', we estimated a total sales
tax savings in the General Fund of $140,000. Since then, we have been able to total up all of the General
Fund sales tax payments for 2012 and the total was just under $90,000. Therefore, we are now only able
to estimate a $90,000 savings for 2014, a reduction in the amount saved of $50,000.
3. Fiscal Disparities. About 40% of the value of commercial and industrial properties is pooled and
shared on a metropolitan basis. Information has just been received from Dakota County about our 2014
fiscal disparities contribution to the pool and our distribution from the pool. Our fiscal disparities
distribution to other area cities increased by $26,918. The fiscal disparities distribution back to Rosemount
will decline by $13,004.
Staff discussion of Economic Development Marketing
Staff is considering ideas and options for improving our economic development marketing efforts. Over
the past year, progress has been made on improving the economic development portion of our website
and the development of a "virtual' business incubator on our website. We are doing business visits, have
conducted a business survey and participated in special events for businesses. We continue to be active
with the Chamber of Commerce, local Business Council, Greater MSP and the Countywide Open to
Business initiative. New streets such as the frontage road on County Road 42 have also been built to
remove potential barriers to development. And we are spending considerable resources helping UMore
Park get ready for development.
What is missing to some degree is identifying specific business niches that should find Rosemount
attractive and directing specific marketing information to them. There is not enough time for the current
staff to accomplish this without some outside assistance. We don't believe that we need help with
branding, new mission statements, brochures etc. but rather with direct contacts to businesses that might
be suitable for Rosemount.
If we identify someone or some company that can materially help us with our direct marketing efforts, we
would propose to use funds from the Port Authority reserve funds for up to a one year commitment. If
we decide that the initiative is beneficial, we would need to consider ongoing funding in 2015 and
thereafter. The amount we have in mind is about $25,000 to $30,000 for one year. There would be no
impact on the 2014 property tax levy with the use of reserve funds.
SUMMARY
The net result of the items noted above is that the City property tax increase on the median value home of
$203,500 is now estimated to be $17 instead of $12 as previously estimated even though we are saving
$30,000 in the Police budget from our previous proposal.
Staff requests that the Council review the discussion items above, discuss the proposed new Sergeant
position and economic development marketing suggestions as needed, and identify any other changes for
staff to incorporate prior to the approval of the preliminary tax levy on September 3, 2013.
2
FUNDING REQUIREMENTS -USES
(INCLUDING FIRE STATION LEVY)
August 14, 2013
Departments
Council Budget
Sales Tax Exemption Savings
Administration Budget
Elections Budget
Finance Budget
General Government Budget
Community Development Budget
Police Budget
Fire Budget
Public Works Operating Budgets:
Government Buildings Budget
Fleet Maintenance Budget
Street Maintenance Budget
Parks Maintenance Budget
Park & Rec Budget - General Operating
Park & Rec Budget - Steeple Ctr. Operations
Park & Rec Budget - Senior / Activity Center
Park & Rec Budget - Special Programs
Transfers - Arena Assistance
Total Operating Budgets - General Fund
Building CIP Requirements
Street CIP Requirements
Equipment CIP Requirements
Insurance Budget Requirements
Port Authority Operating Levy
Bonded Indebtedness
Bonded Indebtedness - Fire Station Levy
Armory Anticipatory Levy (Value 3/9/12)
* *$1,931,934,605 x.00798% _ $154,168 **
Water Enterprise Fund
Sewer Enterprise Fund
Storm Water Enterprise Fund
Arena Enterprise Fund
Total Funding Requirements
2013
2014
Adopted
Proposed
Budget
--- ------- ------ --
Budget
-- ---- ----- - -- - - --
Difference
--- ----- --- - ------
Percentage
--------------- --
$247,700
$252,600
$4,900
1.98%
$0
($90,000)
($90,000)
n/a
484,400
500,000
15,600
3.22%
22,000
40,000
18,000
81.82%
435,300
463,400
28,100
6.46%
383,200
374,200
(9,000)
-2.35%
896,800
928,600
31,800
3.55%
3,187,800
3,349,800
162,000
5.08%
437,000
437,300
300
0.07%
540,500
504,100
(36,400)
-6.73%
645,200
676,200
31,000
4.80%
1,272,200
1,333,400
61,200
4.81%
739,100
831,600
92,500
12.52%
1,130,000
1,166,300
36,300
3.21%
64,500
61,200
(3,300)
-5.12%
14,000
15,000
1,000
7.14%
113,900
111,500
(2,400)
-2.11%
115,000
----- ---- -- - - - - --
115,000
------------ - - -- --
0
0.00%
$10,728,600
$11,070,200
------------ ------
$341,600
--------------- -
3.18%
24,000
24,000
0
0.00%
730,000
740,000
10,000
1.37%
460,000
490,000
30,000
6.52%
245,000
245,000
0
0.00%
58,000
58,000
0
0.00%
377,394
375,622
(1,772)
-0.47%
0
0
0
0.00%
86,000
0
(86,000)
- 100.00%
1,330,300
1,498,900
168,600
12.67%
1,782,200
1,808,300
26,100
1.46%
647,600
659,700
12,100
1.87%
485,800
---- ---- ---- - - - - --
505,300
------------ - - -- --
19,500
- ----------
4.01%
$16,954,894
$17,475,022
- -- - - --
$520,128
--------------- --
3.07%
NOTE: Special Levies include (1)Bonded Indebtedness, (2)Fire Station Levy and (3)Armory Anticipatory Levies.
FUNDING REQUIREMENTS -SOURCES
(INCLUDING FIRE STATION LEVY)
August 14, 2013
Types
Internal Revenue Generated:
Licenses and Permits
Intergovernmental
Charges for Services
Fines & Forfeits
Recreational Fees
Miscellaneous Revenues
Transfers In
Enterprise Revenues
Total Internal Revenues
Levy Sources:
Special Levies
General Levy
Total Levy
Loss of MVHC from State Funding
Total Revenue Sources
2013 2014
Adopted Proposed
Budget Budget
----------- - -- - --- --------- -- - - - --
Difference Percentage
382,300
438,300
56,000
14.65%
643,100
580,800
(62,300)
-9.69%
663,000
848,300
185,300
27.95%
125,000
125,000
0
0.00%
263,200
253,600
(9,600)
-3.65%
169,200
125,700
(43,500)
- 25.71%
3,500
3,500
0
0.00%
4,245,900
4,472,200
226,300
5.33%
--------- - - - - -- -------------
6,495,200
- -- - -- --
6,847,400
------- ---- - - - - -- ---------------
352,200
5.42%
463,394
375,622
(87,772)
- 18.94%
9,996,300
10,252,000
255,700
2.56%
---------- --- - - - - --
$10,459,694
--------- ---- - -- --- -
$10,627,622
------------ - - - - -- ---------------
$167,928
1.61%
$0
$0
$0
0.00%
---------- --- - - - - --
$16,954,894
---- - -- - --
----------
------------ ---- - -- -
$17,475,022
---- - - - --- ----
---- - - - - -- ----
-- ---------- - - - - -- ---------------
$520,128
- - - - -- --
- - - - -- --
3.07%
- - - - --
- - - - --
NOTE: Special Levies include (1)Bonded Indebtedness, (2)Fire Station Levy and (3)Armory Anticipatory Levies.
2013 GENERAL PROPERTY TAX LEVY PAYABLE 2014
GENERALLEVY
GENERAL FUND
$8,695,000
BUILDING CIP FUND
$24,000
STREET CIP FUND
$740,000
EQUIPMENT CIP FUND
$490,000
INSURANCE FUND
$245,000
PORT AUTHORITY OPERATING LEVY
$58,000
TOTAL GENERAL LEVY $10,252,000
BONDEDINDEBTEDNESS
G.O. CAPITAL IMPROVEMENT PLAN (CIP) BONDS 2005A (Authorized - $212,011) $212,011
G.O. IMPROVEMENT BONDS 2006B (Authorized - $265,893) $0
G.O. PUBLIC FACILITY REFUNDING BONDS 2010B (Old 2001 C) (Port Authority) (Authorized - $163,611) $163,611
G.O. IMPROVEMENT BONDS 2011A (Authorized - $3,420) $0
TOTAL BONDED INDEBTEDNESS $375,622
MARKET VALUE BASED REFERENDUMS
G.O. FIRE STATION REFUNDING BONDS, 2005D (Authorized - $141,225) $0
TOTAL FIRE STATION LEVY $0
PRINCIPAL AND INTEREST ON ARMORY BONDS
ARMORY ANTICIPATORY LEVIES ($1,952,221,344 x.00798% = $155,787) (As of 2/27/13) $0
(Authorized - $155,787 - Only Levy Amount Due MSABC) ------------------ - - - - --
TOTAL PRINCIPAL AND INTEREST ON ARMORY BONDS $0
GRAND TOTAL 2011 PROPERTY TAX LEVY $10,627,622
Last Updated 815/13
SPREAD LEVY COMPUTATIONAL WORKSHEET
(INCLUDING FIRE STATION LEVY)
(Proposed)
2011 2012 2013 2014
Total Funding Requirements
16,625,444
16,689,426
16,954,894
17,475,022
Less: Internal Revenues
6,092,800
6,357,600
6,495,200
6,847,400
Less: Market Value Based Levy - Fire Station (See Below)
143,654
0
0
0 (3)
Equals: Revenues Needed
- -------- ---- - - --
10,388,990
--- -- ---- -- - - - - --
10,331,826
--- -------- - - - - --
10,459,694
--------------- --
10,627,622
Add Back in State MVHC Cuts to Reflect Actual Levy
429,507
0
0
0 (4)
Levy Certified by City to County Auditor
-- - ---- -------- --
10,818,497
---- ------- - - -- --
10,331,826
--- -------- - - ----
10,459,694
--------------- --
10,627,622
County Auditor Adjustments (All Subtractions):
Fiscal Disparities Distribution Levy (Metro Area)
1,299,717 1,252,954
1,235,453
1,208,535 (2)
Spread Levy Used to Compute Local Tax Rate
-- -- ---- ---- - - - -- ----------- - - ----
9,518,780 (1) 9,078,872 (1)
---------- --- ----
9,224,241 (1)
--------------- --
9,419,087
Increase /(Decrease) from Previous Year in Spread Levy
-4.62%
1.60%
2.11%
Market Value Based Referendum Levy - Fire Station
143,654 0
0
0 (3)
(1) Actual Spread Levy Based on Numbers from Dakota County
(2) 2014 Number Provided by Dakota County as of 8/5/13
(3) For 2012 Through 2014 No Levy Needed so No Impact on the Taxpayers
(4) The MVHC Program was Eliminated for 2012 and Replaced with a Market Value Exclusion Program
Last Updated - 815113
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