The URL can be used to link to this page

Home My WebLink About2.A. Budget 4ROSEN4OUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Work Session November 19, 2013 AGENDA ITEM: Budget AGENDA SECTION: 1ALJ I . (1 PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. G-- 1. ATTACHMENTS: Revised budget summary sheets, September memo and budget sheets APPROVED BY: RECOMMENDED ACTION: Review budget updates and direct staff on any other budget changes prior to final adoption on December 3rd BACKGROUND: The City Council approved a preliminary 2014 budget and tax levy on September 3, 2013. Some of the packet information for that meeting is attached. Final approval of the budget is scheduled for December 3, 2013 following a public hearing. The purpose of this meeting is to review necessary updates to the budget since September 3rd and review any other desired changes prior to final approval next month. Two areas of expenditure in the budget have been updated and increased: health insurance costs and Met Council Sewer Charges in the Sewer Utility fund. Neither update will affect the proposed property tax levy for 2014. DISCUSSION: Health Insurance costs are distributed among the various operating budgets according to the number of eligible employees in each area. When the budget was drafted in May,we did not have our updated health insurance costs so an increase of 7%was assumed which was the average increase of the past three years. When our health insurance renewal quote was received this fall, the actual increase was 11.7%. The City has had one or two large cases within the current insurance rating period. While this increases the General Fund expenditures by $34,600, the City prepared for this contingency several years ago by establishing a health insurance reserve fund to mitigate increases in any given year that exceed our three year rolling average. The other budget update is an increase in the Metropolitan Council's Sanitary Sewer charges for treatment of waste. In September,we did not yet have news of the increase for 2014. The amount of this charge for 2014 has now been received and requires an increase of$60,300 from the amount budgeted in 2013,which is about a 5.9%increase. Our long term sewer fund projections have assumed a 7%yearly increase so we do not expect this increase to affect our long term outlook for the sewer fund. With the Council's approval,we plan to incorporate both of these changes into the final 2014 budget to be approved on December 3`d. CONCLUSION: The Council should review these and any other possible changes in the 2014 budget so that the proper resolutions and budgets can be put into final form for adoption on December 3, 2013. FUNDING REQUIREMENTS-USES (INCLUDING FIRE STATION LEVY) December 3,2013 2013 2014 Adopted Proposed +/- Departments Budget Budget Difference Percentage Council Budget $247,700 $252,600 $4,900 1.98% Sales Tax Exemption Savings $0 ($90,000) ($90,000) n/a Administration Budget 484,400 505,600 21,200 4.38% Elections Budget 22,000 40,000 18,000 81.82% Finance Budget 435,300 464,800 29,500 6.78% General Government Budget 383,200 374,200 (9,000) -2.35% Community Development Budget 896,800 929,300 32,500 3.62% Police Budget 3,187,800 3,349,700 161,900 5.08% Fire Budget 437,000 437,300 300 0.07% Public Works Operating Budgets: Government Buildings Budget 540,500 504,600 (35,900) -6.64% Fleet Maintenance Budget 645,200 677,000 31,800 4.93% Street Maintenance Budget 1,272,200 1,348,300 76,100 5.98% Parks Maintenance Budget 739,100 833,400 94,300 12.76% Park&Rec Budget-General Operating 1,130,000 1,169,100 39,100 3.46% Park&Rec Budget-Steeple Ctr.Operations 64,500 61,200 (3,300) -5.12% Park&Rec Budget-Senior/Activity Center 14,000 15,000 1,000 7.14% Park&Rec Budget-Special Programs 113,900 111,500 (2,400) -2.11% Transfers-Arena Assistance 115,000 115,000 0 0.00% Total Operating Budgets-General Fund $10,728,600 $11,098,600 $370,000 3.45% Building CIP Requirements 24,000 24,000 0 0.00% Street CIP Requirements 730,000 740,000 10,000 1.37% Equipment CIP Requirements 460,000 490,000 30,000 6.52% Insurance Budget Requirements 245,000 245,000 0 0.00% Port Authority Operating Levy 58,000 58,000 0 0.00% Bonded Indebtedness 377,394 375,622 (1,772) -0.47% Bonded Indebtedness-Fire Station Levy 0 0 0 0.00% Armory Anticipatory Levy(Value 3/9/12) 86,000 0 (86,000) -100.00% "$1,931,934,605 x.00798%=$154,168** Water Enterprise Fund 1,330,300 1,504,600 174,300 13.10% Sewer Enterprise Fund 1,782,200 1,874,300 92,100 5.17% Storm Water Enterprise Fund 647,600 660,300 12,700 1.96% Arena Enterprise Fund 485,800 504,800 19,000 3.91% Total Funding Requirements $16,954,894 $17,575,222 $620,328 3.66% NOTE: Special Levies include(1)Bonded Indebtedness,(2)Fire Station Levy and(3)Armory Anticipatory Levies. FUNDING REQUIREMENTS-SOURCES (INCLUDING FIRE STATION LEVY) December 3,2013 2013 2014 Adopted Proposed +/- Types Budget Budget Difference Percentage Internal Revenue Generated: Licenses and Permits 382,300 438,300 56,000 14.65% Intergovernmental 643,100 580,800 (62,300) -9.69% Charges for Services 663,000 848,300 185,300 27.95% Fines&Forfeits 125,000 125,000 0 0.00% Recreational Fees 263,200 253,600 (9,600) -3.65% Miscellaneous Revenues 169,200 160,300 (8,900) -5.26% Transfers In 3,500 3,500 0 0.00% Enterprise Revenues 4,245,900 4,544,000 298,100 7.02% Total Internal Revenues 6,495,200 6,953,800 458,600 7.06% Levy Sources: Special Levies 463,394 375,622 (87,772) -18.94% General Levy 9,996,300 10,245,800 249,500 2.50% Total Levy $10,459,694 $10,621,422 $161,728 1.55% Loss of MVHC from State Funding $0 $0 $0 0.00% Total Revenue Sources $16,954,894 $17,575,222 $620,328 3.66% NOTE: Special Levies include(1)Bonded Indebtedness,(2)Fire Station Levy and(3)Armory Anticipatory Levies. 2013 GENERAL PROPERTY TAX LEVY PAYABLE 2014 GENERAL LEVY GENERAL FUND $8,688,800 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 $10,245,800 BONDED INDEBTEDNESS 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 2001C) (Port Authority) (Authorized-$163,611) $163,611 G.O. IMPROVEMENT BONDS 2011A(Authorized-$3,420) $0 G.O. IMPROVEMENT BONDS 2013A(Authorized-$7,277) $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 $10,621,422 Last Updated 11/11/13 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 17,575,222 Less: Internal Revenues 6,092,800 6,357,600 6,495,200 6,953,800 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 10,621,422 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 10,621,422 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) 9,412,887 Increasel(Decrease)from Previous Year in Spread Levy -4.62% 1.60% 2.05% 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-11/11/13 CITY OF ROSEMOUNT WORKSHEET FOR ESTIMATING RESIDENTIAL PROPERTY TAXES(ISO#196 FIGURES) (Rates Based on Proposed Final Levy Numbers) (MN Exclusion is Only Applicable to 2012 and Beyond) 181,632 (Value After MN Exclusion) 176,073 (Value After M/V Exclusion) 184,085 (Value After M/V Exclusion) 235,260 (Value After M/V Exclusion) Market Value 200,800 (Payable 2012 Median) 195,700 (Payable 2013 Median) 203,050 (Est.Payable 2014 Median) 250,000 Year 2012 2013 2014 Est. 2012 2013 2014 Est. 2012 2013 2014 Est. 2012 2013 2014 Est. Tax Capacity 2,008 1,816 1,816 1,957 1,761 1,761 2,031 1,841 1,841 2,500 2,353 2,353 Tax Capacity Rates: City 0.46994 0.48862 0.47776 0.46994 0.48862 0.47776 0.46994 0.48862 0.47776 0.46994 0.48862 0.47776 County 0.31426 0.33421 0.33421 0.31426 0.33421 0.33421 0.31426 0.33421 0.33421 0.31426 0.33421 0.33421 School Distract 0.28440 0.27956 0.27956 0.28440 0.27956 0.27956 0.28440 0.27956 0.27956 0.28440 0.27956 0.27956 Miscellaneous 0.05562 0.05884 0.05884 0.05562 0.05884 0.05884 0.05562 0.05884 0.05884 0.05562 0.05884 0.05884 Totals 1.12422 1.16123 1.15037 1.12422 1.16123 1.15037 1.12422 1.16123 1.15037 1.12422 1.16123 1.15037 City Market Referendum 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 ISO#196 Market Ref 0.0022131 0.0022131 0.0023542 0.0022131 0.0022131 0.0023542 0.0022131 0.0022131 0.0023542 0.0022131 0.0022131 0.0023542 Dakota County Ref 0.0000551 0.0000000 0.0000000 0.0000551 0.0000000 0.0000000 0.0000551 0.0000000 0.0000000 0.0000551 0.0000000 0.0000000 2013 2014 Property Taxes: City 864 887 868 838 860 841 875 899 879 1,113 1,150 1,124 City Taxes $860 $879 County 577 607 607 560 588 588 585 615 615 744 786 786 City Market Ref. $0 $0 School District 523 508 508 507 492 492 529 515 515 674 658 658 Miscellaneous 102 107 107 99 104 104 104 108 108 132 138 138 Total Taxes-Median $860 $879 Total Property Taxes 2,066 2,109 2,089 2,004 2,045 2,025 2,093 2,138 2,118 2,663 2,732 2,706 Increase 1(Decrease) $19 City Market Referendum 0 0 0 0 0 0 0 0 0 0 0 0 ISD#196 Market Ref 444 444 473 433 433 461 449 449 478 553 553 589 Dakota County Ref 11 0 0 11 0 0 11 0 0 14 0 0 Grand Total Alt Taxes $2,521 $2,554 $2,562 $2,448 $2,478 $2,486 $2,554 $2,587 $2,596 $3,230 $3,285 $3,295 289,760 (Value After MN Exclusion) 414,000 (Value After M/V Exclusion) Market Value 300,000 414,000 History of Actual Tax Capacity Rates(Using ISD#196 Rates) Year 2012 2013 2014 Est. 2012 2013 2014 Est. 2009 2010 2011 2012 2013 2014 Est. Tax Capacity 3,000 2,898 2,898 4,140 4,140 4,140 (2.22%Decrease) Tax Capacity Rates: City 0.46994 0.48862 0.47776 0.46994 0.48862 0.47776 0.42323 0.43358 0.44661 0.46994 0.48862 0.47776 (1),(2) County 0.31426 0.33421 0.33421 0.31426 0.33421 0.33421 0.25821 0.27269 0.29149 0.31426 0.33421 0.33421 (2) School District 0.28440 0.27956 0.27956 0.28440 0.27956 0.27956 0.21109 0.25391 0.26959 0.28440 0.27956 0.27956 (2) Miscellaneous 0.05562 0.05884 0.05884 0.05562 0.05684 0.05884 0.04916 0.04987 0.05199 0.05562 0.05884 0.05884 (2) Totals 1.12422 1.16123 1.15037 1.12422 1.16123 1.15037 0,94169 1.01005 1.05968 1.12422 1.16123 1.15037 City Market Referendum 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000631 0.0000652 0.0000697 0.0000000 0.0000000 0.0000000 (2) ISD#196 Market Ref 0.0022131 0.0022131 0.0023542 0.0022131 0.0022131 0.0023542 0.0021032 0.0022268 0.0022601 0.0022131 0.0022131 0.0023542 (2) Dakota County Ref 0.0000551 0.0000000 0.0000000 0.0000551 0.0000000 0.0000000 0.0000471 0.0000501 0.0000537 0.0000551 0.0000000 0.0000000 (2) Property Taxes: City 1,367 1,416 1,384 1,946 2,023 1,978 Net Tax Capacity Percentages County 914 968 968 1,301 1,384 1,384 For Residential Homesteads: School District 827 810 810 1,177 1,157 1,157 Miscellaneous 162 170 170 230 244 244 Equal to or Less Than$500,000 1.00% 1.00% 1.00% Over$500,000 1.25% 1.25% 1.25% Total Property Taxes 3,270 3,365 3,333 4,654 4,807 4,763 City Market Referendum 0 0 0 0 0 0 ISO#196 Market Ref 664 664 706 916 916 975 Tax Credit for Homestead Properties: (For 2002 Through 2011 Credit Applied to All Organizations Proportionately) Dakota County Ref 17 0 0 23 0 0 (Based on%of Tax Capacity) (For 2012 and On Credit Eliminated-Replaced with Market Value Adjustment) Y Grand Total All Taxes $3,951 $4,029 $4,040 $5,593 $5,724 $5,737 Less Than Initial Value of Tax Capacity n/a n/a n/a (2) Over Initial Value(Maximum Allowed) $304 n/a n/a (2) Initial Value Used to Calculate Credit $76,000 n/a n/a (2) (1)This Figure Derived Using Figures Provided by Dakota County: (a) 2013 Projected Levy Less Fiscal Disparities as of 10/11/13 9,412,887 / 19,702,262 = 0.47776 (b) Net Tax Capacity Figure as of 10/11/13(With WV Exclusion) 22,670,970 (3.97%Increase from Final Pay 2013) (c) Captured Tax Increment Tax Capacity as of 10/11/13 (597,533) (5.60%Increase from Final Pay 2013) (d) Contribution to Fiscal Disparities as of 8/5/13 (2,371,175) (0.55%Increase from Final Pay 2013) Last Updated-11111113 (2)These Figures Provided by Dakota County 19,702,262 (For 2012 and on the City of Rosemount does not have a Referendum Levy) ROSEt\4GLIIIT EXECUTIVE SUMMARY CITY COUNCIL City Council Work Regular Meeting September 3, 2013 AGENDA ITEM: 2014 Budget Discussion AGENDA SECTION: New Business PREPARED BY: Dwight Johnson, City Administrator Jeff May, Finance Director AGENDA NO. c , ATTACHMENTS: Resolution, 2014 Preliminary Budget APPROVED BY: 04.1 RECOMMENDED ACTION: Adopt a Resolution Setting the Preliminary 2014 General Fund Operating Budget, the Preliminary 2014 C.I.P. Budgets, the Preliminary 2014 Insurance Budget, the Preliminary 2014 Port Authority Operating Levy and the Preliminary 2013 Levy and Budget Hearing Date Required by the City of Rosemount EXECUTIVE SUMMARY The recommended budget for 2014 proposes an increase in the City's property tax levy of 1.55%. This would result in an estimated annual increase of$18 in the City taxes assessed to a median value home. The estimated City tax on a median family home valued at$203,500 would be$878. A 3.76%increase in residential property values combined with the increased levy amount is responsible for the projected increase in 2014. Even with this increase,the City has reduced taxes on the median home by$180 since 2008. The proposed increase in levy is less than the rate of inflation for the past year. The budget shows some increased costs for new facilities and athletic fields coming on line;increased costs to replace existing equipment,playgrounds,and parking lots;reduced costs for debt service;one new full-time employee in Police (mid-year 2014);and our best estimate of the costs of future employee wages and benefits for 2014. One notable change in expenditures is that the Legislature has approved a law to eliminate most sales tax payments to the State for goods. We have evaluated the amount of savings based on 2012 sales tax payments. A preliminary number of$90,000 in General Fund savings is being used for this draft budget. Looking at non-tax revenues,interest on investments is reduced due to current market conditions. Building permits for 2014 are estimated based on the average of the past three years. SKB host agreement funds designated for the General Fund are proposed to increase from$400,000 to $500,000,leaving an estimated$700,000 for planned capital building projects or trails. These items are discussed in more detail below. A summary of key characteristics of the proposed 2014 budget is shown in the following table: Budget Facts at a Glance Increase of property tax base from 2013 +4.12% Average increase in residential values +3.76% General fund spending change: +3.13% Total funding change—all tax impacted funds +$287,628 Change in overall tax levy from 2009 -806,042 City share of tax impact on median value home +$18 Percentage tax change on median value home +2.10% Change in estimated tax rate (City share only) -2.34% (from .48862 to .47719) BUDGET PROCESS The annual budget process begins with the adoption of goals and work plans by the City Council early in the year. The City Council officially adopted goals for 2013-2014 on February 19, 2013. This draft budget was initially developed by the Department Directors. We met with each Department Director and reviewed details of their budget with them. In addition, as a part of the budget review, we have looked again at 10 year needs projections for street improvements, equipment replacement, buildings and the Ice Arena. We have also reviewed our long term needs for major maintenance needs for parking lots,playgrounds,etc. Finally, we looked at the overall budget strategically one more time for its overall balance, consistency, impact on taxpayers, and long term impacts on finances for 2012 and beyond. Our hope was to develop the most conservative budget possible that: (1) is consistent with council goals (2) is consistent with previous council direction on levels of service, (3) does not weaken the City's long range financial outlook. (4) is balanced not only between revenues and expenditures,but also is well balanced internally between personnel,equipment, technology, operating needs and capital expenditures. According to state law, the preliminary budget and levy must be adopted by September 15th and the final budget must be adopted by December 20th after a public hearing. GENERAL FACTORS AFFECTING THE BUDGET Tax Base For the first year since 2009, the overall tax base in the community has increased. The overall tax capacity value within the City is estimated to be 4.12%higher in 2014 than it was in 2013. The increase in market value of the median home in Rosemount is 3.76%. State Budget and Legislative Impacts A significant legislative impact for local governments is the repeal of the general state sales tax for most local government expenditures. Staff spent several weeks calculating in detail what we paid in 2012 and used this amount to estimate the savings in 2014. The draft budget assumes a savings of$90,000 in the General Fund. 2 REVENUES Property taxes fund 79% of the General Fund budget. However, there are several other categories of General Fund revenues that are also important to the City. The chart below compares budgeted revenue for 2013 with estimated revenue in 2014 for several key categories of revenues. 2013 Budget 2014 Estimated Change Licenses&Permits 382,300 438,300 +56,000 Intergovernmental 643,100 580,800 -62,300 Charges for Services (no SKB) 238,000 323,300 +85,300 Fines &Forfeits 125,000 125,000 -0- Recreational Revenues 263,200 253,600 -9,600 Miscellaneous Revenues 169,200 125,700 -43,500 SKB revenue (General Fund portion) 425,000 525,000 +100,000 Two of the most important non-tax revenues are building permit revenues and SKB fees. Building Permit Revenues Building permit revenues have varied from about$250,000 to $300,000 annually over the past three years. For 2014,we are estimating an amount equal to the average of the past three years, or$280,000. SKB Revenues The City approved a new agreement with SKB,Inc. in 2008 that has increased our revenues from SKB's operations in Rosemount. The draft budget for 2014 designates$500,000 of SKB funds to support the operating budgets. This is an increase of$100,000 over the amount of the past several years. We estimate that seven hundred thousand dollars will be available for planned capital projects in 2014 to help fund council goals relating to a senior activity center and a possible partnership with DCTC and the Y for new indoor recreation facilities. The capital improvement budgets will be presented for review later this year. EXPENDITURES Salaries Rosemount currently has 75 authorized full time employees. This compares with 81 full time employees at the beginning of 2008. The draft budget would increase the number of full time employees on July 1, 2014 by adding a new Sergeant position in the Police Department. This position would help improve the management of our investigations unit,provide daytime supervision of patrol that is currently lacking, assist with stronger efforts in such areas as emergency planning for both the City and its neighborhoods and enhance our ability to use data for timely identification of crime and accident trends. The budget also shows a part-time staff member being added to the Parks and Recreation budget in mid- 2014 on the assumption that a new senior center may be nearing completion at that time. This position has been budgeted for several years,but has not been filled due to developer-related delays in building the senior center in conjunction with a major new senior housing project. Staff is still open to the possibility of contracting for the operation of some or all of the operation of the senior center. Finally,the budget shows some additional hours for a part-time employee in Finance to help address a disproportionate work load for the Accounting Supervisor,especially in the first half of the year. All four bargaining unit contracts expire at the end of 2013 and there have been no negotiations for new contracts as of this date. A salary increase similar to amounts negotiated for 2013 has been assumed in the draft budget. 3 Health Insurance Our preliminary increase in health insurance premium for 2014 is 11.7%. However, a special reserve fund established two years ago will help buffer the increase and therefore require only 7.65%increase in the 2014 budget. Additional quotes are being sought to reduce the increase. Maintenance A significant factor in developing the 2014 budget is increased maintenance and repair of existing as well as new facilities. In various places throughout the budget, there are increases for future playground replacements,parking lot maintenance,additional maintenance for new athletic fields, operating costs for the new senior center and other maintenance increases. Together, these items total an increase of $167,000 in 2014,which is more than overall proposed levy increase. Capital Budgets The City currently has three capital improvement program (CIP) funds: Equipment, Streets,and Buildings. Staff has not yet done a detailed review of the CIP and plans to bring a proposed 10 year CIP to the Council later this year. A general review of the trends for the purpose of setting CIP levies for 2012 has been done. The levy for the Equipment CIP is proposed to be $490,000,an increase of$30,000 due to future forecasted needs. The Street CIP is proposed to have a levy of$740,000 for 2014, an increase of$10,000 to reflect the modest growth rate of the City and the current good ratings of the street system. The Building CIP has an ongoing levy of$24,000 for 2014 which is for the repayment of an internal loan for the current Public Works facility. The Building CIP fund is intended to fund the City's share of a planned senior housing/senior center redevelopment project north of the Steeple Center and also may provide some funds for a possible partnership on an indoor recreational facility on DCTC property. It will also fund some improvements and updates planned for the Community Center as well as certain park projects such as the splash pad. No tax levy above the current$24,000 is proposed. SKB funds along with proceeds from past General Fund surpluses will provide the funds for these projects. Enterprise Fund Budgets The City's Enterprise Funds include the Water Fund,Sewer Fund and Stormwater Fund. At this time, the water and sewer budgets have been reviewed and approved by the Utilities Commission for 2014.The proposed water rate increase is 5%in order to continue building up funds for a potential water treatment plant later this decade. The proposed sewer rate increase is 2%. Debt Service Funds The City ended 2012 with a General Fund surplus. The Council approved a strategy that committed some of the surplus to eliminating the need for a levy for the City's share of the National Guard's debt for the Armory. A debt levy of$86,000 has therefore been eliminated and this obligation is now permanently ended. CONCLUSION The City has reduced the tax burden on the median value home each of the last five years and proposes a modest increase of 1.55% this year. One of the main reasons for an increase is to provide additional maintenance and operating costs for both new and existing facilities. The overall increase is still less than the current rate of inflation. The State's elimination of sales tax for most City expenditures and the continued reductions in debt service levies help mitigate the property tax increase. We are pleased that we can present a reasonably modest budget and tax levy that keeps the City moving ahead on the building, operating and maintaining of many new facilities including a Senior Center, a splash pad,new ball fields at 4 UMore Park,new athletic fields on the Flint Hills property, a new underpass under Highway 3, improvements to Erickson Park, senior exercise equipment,new tennis courts, new trail projects, improvements to both the Steeple Center and the Community Center,and various neighborhood amenities. 5 FUNDING REQUIREMENTS-USES (INCLUDING FIRE STATION LEVY) September 3,2013 2013 2014 Adopted Proposed +1. Departments Budget Budget Difference Percentage Council Budget $247,700 $252,600 $4,900 1.98% Sales Tax Exemption Savings $0 ($90,000) ($90,000) n/a Administration Budget 484,400 500,000 15,600 3.22% Elections Budget 22,000 40,000 18,000 81.82% Finance Budget 435,300 463,400 28,100 6.46% General Government Budget 383,200 374,200 (9,000) -2.35% Community Development Budget 896,800 926,100 29,300 3.27% Police Budget 3,187,800 3,346,100 158,300 4.97% Fire Budget 437,000 437,300 300 0.07% Public Works Operating Budgets: Government Buildings Budget 540,500 504,100 (36,400) -6.73% Fleet Maintenance Budget 645,200 676,200 31,000 4.80% Street Maintenance Budget 1,272,200 1,333,400 61,200 4.81% Parks Maintenance Budget 739,100 831,600 92,500 12.52% Park&Rec Budget-General Operating 1,130,000 1,166,300 36,300 3.21% Park&Rec Budget-Steeple Ctr.Operations 64,500 61,200 (3,300) -5.12% Park&Rec Budget-Senior/Activity Center 14,000 15,000 1,000 7.14% Park&Rec Budget-Special Programs 113,900 111,500 (2,400) -2.11% Transfers-Arena Assistance 115,000 115,000 0 0.00% Total Operating Budgets-General Fund $10,728,600 $11,064,000 $335,400 3.13% Building CIP Requirements 24,000 24,000 0 0.00% Street CIP Requirements 730,000 740,000 10,000 1.37% Equipment CIP Requirements 460,000 490,000 30,000 6.52% Insurance Budget Requirements 245,000 245,000 0 0.00% Port Authority Operating Levy 58,000 58,000 0 0.00% Bonded Indebtedness 377,394 375,622 (1,772) -0.47% Bonded Indebtedness-Fire Station Levy 0 0 0 0.00% Armory Anticipatory Levy(Value 3/9/12) 86,000 0 (86,000) -100.00% "$1,931,934,605 x.00798%=$154,168" Water Enterprise Fund 1,330,300 1,500,900 170,600 12.82% Sewer Enterprise Fund 1,782,200 1,810,300 28,100 1.58% Storm Water Enterprise Fund 647,600 659,700 12,100 1.87% Arena Enterprise Fund 485,800 503,900 18,100 3.73% Total Funding Requirements $16,954,894 $17,471,422 $516,528 3.05% ===s•s==== s=rss==== ss===sss== t== == == NOTE: Special Levies include(1)Bonded Indebtedness,(2)Fire Station Levy and(3)Armory Anticipatory Levies. FUNDING REQUIREMENTS-SOURCES (INCLUDING FIRE STATION LEVY) September 3,2013 2013 2014 Adopted Proposed +/- Types Budget Budget Difference Percentage Internal Revenue Generated: Licenses and Permits 382,300 438,300 56,000 14.65% Intergovernmental 643,100 580,800 (62,300) -9.69% Charges for Services 663,000 848,300 185,300 27.95% Fines&Forfeits 125,000 125,000 0 0.00% Recreational Fees 263,200 253,600 (9,600) -3.65% Miscellaneous Revenues 169,200 125,700 (43,500) -25.71% Transfers In 3,500 3,500 0 0.00% Enterprise Revenues 4,245,900 4,474,800 228,900 5.39% Total Internal Revenues 6,495,200 6,850,000 354,800 5.46% Levy Sources: Special Levies 463,394 375,622 (87,772) -18.94% General Levy 9,996,300 10,245,800 249,500 2.50% Total Levy $10,459,694 $10,621,422 $161,728 1,55% Loss of MVHC from State Funding $0 SO $0 0.00% Total Revenue Sources $16,954,894 $17,471,422 $516,528 3.05% ---- NOTE: Special Levies include(1)Bonded Indebtedness,(2)Fire Station Levy and(3)Armory Anticipatory Levies. 2013 GENERAL PROPERTY TAX LEVY PAYABLE 2014 GENERAL LEVY GENERAL FUND $8,688,800 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 $10,245,800 BONDED INDEBTEDNESS 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 2010E(Old 2001C) (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 $10,621,422 Last Updated 8/21/13