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HomeMy WebLinkAbout3.a. 2011 Budget DiscussionW)SEMOUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Work Session Date: November 10, 2010 AGENDA I IFEM: 2011 Budget Discussion AGENDA SECTION: Update PREPAREI') BY: Jeff May, Finance Director AGENDA NO. ATTACHM ::-NTS: Draft Budget Summary Pages and Tax APPROVED BY: Rate Comparison Worksheet RECOMMENDED ACTION: Discussion Only DISCUSSION The last time the budgets were discussed was when the preliminary levy was approved at the September Vh City Council meeting. The purpose of the discussion this evening is to update the Council's input on the budgets as they were approved in September and identify any further questions to discuss prior to the budget Public Hearing on December 7t'. The only changes that we currently recommend to the budgets are the change in the dental insurance premiums that the City is required to pay and some housecleaning changes to salaries and benefits for employees (GIS Technician position and Public Works Maintenance position). We had estimated a 10% increase in dental premiums and the rate that we got by switching providers is an approximate 2.38% decrease. The total of these changes is a net effect of a $3,800 reduction in the General Fund budget. Included in the packet is a page with the proposed tax rates. At the September 7''' meeting when the preliminary levy was set we had anticipated a $64 decrease in the City share of taxes on the median valued home. With the above proposed changes and with information that we have received from the County (after the preliminary levy was set) the decrease in the City share of taxes is now estimated to be $61. This is based on updated tax capacity numbers (which will not be finalized until after December 315) and also updated market value referendum numbers. Coupled with the $77 reduction in the City share of taxes on the median valued home for 2010 the estimated 2 -year reduction now stands at $138. Based on the action that you took at the November 1't meeting, we could have an additional reduction in the budget / levy if any employees take advantage of the waiver of health insurance coverage option. We will know more about that after the November 19`' open enrollment deadline passes. One other item of note is regarding the bond levy for the Port Authority refunding bonds that will happen at the November 16' meeting. If you recall we had mentioned that there would be an approximate $9,500 annual levy savings. This levy savings will begin to occur with the 2011/12 levy after the existing bonds are paid off February 1, 2012. We would like the Council to consider the minor revisions noted above before we begin preparing the final budget document for the budget public hearing. RECOMMENDATION Review minor budget changes and identify any other budget questions for preparation of the final budget for the public hearing. v * m A m r F x m m m D 0 O * m m 3 r g x m m W D A a m O O m d G) d d C -y� O ° d m cO O m d t y e 7 e »5 d3 » .G� mm m � � ° c U,3 i7 ��C d m p Nt0 _y d A NO imp NO and d , C w x A 7 m m x m d » M 7 m d C in m x N 7 S d W C (p y N d + d d , W N ++ W V O co N A W 7C m d X N (n W w W+ V O+ A N 01 x m O O N V O t0 W O A W O t0 V tO W � w O (VD N m (WO 0 A O A N co O O d + y 'a _ Ard. c � o 00000000000,�� X b f0 O O A W N W N to m N N N W N N" W W N N -4 NW d A N W W A W V 0 O U 0 N W A W d (OJI N W N W O O W N N W OD "J N O W d W V OD N V W A N W N A V A O W W (0 W N A V O O N 0) tD d + _ d m , � d � d y _ _ 0 CO + W+ W O W A N V � d 7C m N A W A N W 4) N A N W W d W A x W co fD N V O W O O A A O ll( ++ N W W+ W V N O V C d + d (r A W W W V O O V co 0) N O V N N n Gl 41 K O (D OD W W V W 0) N W tD W W V Ul Ul W W (D( t0 N A N n d O 00000000000 N fJ <J N fO J N N w N W A 10 N O Co _ O aD A O+ (D A n ON � V W N O N Ut CD W N W (d m n W N N A CY) O N W O W W N N V N (r A 0 V to A 0 A W t0 0 V A A _ m + d tD W W+ W V+ O N A (A d _ 7 ox, d m V O W A V O W+ N W K W O N+ W+ O A W V X' m cn W W K) N V (O W W l N N V A Al W O o W O A A A O O V O O W A W N O N W W Vl N W V w (stn � tn w X :o N + m x + — 69 69-- _ _ ffl 6Y _ OW �dy O 00000000000 A W A V Ut N OWD W N O N N N W N+ N W W N N O) W W W O t0 W V A W d W N W V W N N N W to W O Ut (D V W A 0+ d (0 j O) O 0) O (n V 0) W V N y W V W W W m N W O W N tD (D O N 0 V 0 W W N W W V W N N (T co A A N (D t0 V O m 7 , m O W W+ W V+ tD N A N d ai 7 d A O t0 + V W O+ N N W pr m W V O N+ W+ w N A W w m 000 A V ON m N V V O W W N fD W W W A V V A W W V X + K + 0 0 0 0 0 0 0 0 0 0 0 7C m o 0 0 0 0 0 0 0 0 0 0 o A� N N+ N+ N N ++ N (O j O W W N Q) A V W V N GOOD d m N N N W++ N 44 W N N W U) N) W Ul t0 W A V A A A O d V N dt (D O O N W N W O N W W + W (0 + W O V V O N N y V O W 0 N V W W CT f N W N 0) O W O O (T y (D U O W+ V W O V N O W y :.• 2 W to V M 0 A A CO + (O M m+ + _ m N W ++ V A O N W N W x m W V O N+ U) + t0 A W W x• m d m x + x O 0 0 0 0 0 0 0 0 0 0 0 ZJ 40 O 0 0 0 0 0 0 0 0 0 0 0 N N ++ I V N ++ N O W O W W Q) W W (n N d (0 N I J N N A I J+ N A W N I J V A 10 O O O N N W W d W N N W N N W V N N N W N W O A W T W V A W A N t0 W 0 N W O N A W N OD W O W W O O W N W t0 A W W O+ W W O W W W N d ;a a + + + d A cD W+ (0 N V O N W+ 7C m W V O N+ (r + O A 0) W' m Gam) X + y x + o0000000000m o 0 o 0 o 00000oo,y'� W N N W t0 N A V W A d 0 (p N N N+ N A_ (J N N W W A tc O V W W W N m 0 O m Qi W O O N + OD W V A N V O V O W W W (n W W y W W W V O W O N (n N N N N W+ A W W A W y A V A N) w V O V V j W V d A of + lu d A V O N W N+ W+ W W 7C m W W+ N+ (n O (0 A W V x• m X + x y x N c: O O O o 0 0 0 0 0 0 0;a 10 o 0 0 0 0 0 0 0 0 0 0 o m o N W W V V O O V V 0 V A M V N V (0 O W W O Q W O N U (n O V A W A CO D- Co (D W l N A O W N W N N O 0 N A W O N O O O A A O) V W (O N V y W W N N+ W O W Q) N A V N N In O W V W N N N O d m A y + _ _ m N W O A W W (D ++ N V or m A W++ N ( O W w V w X m Gil X + y X N N O (n O W tD N W W W A d N N N N W+ N N W N N N N (n W W W O N W (O W W d m 4r O W N W O N O V N (n W A W w O V T y N O A N 0 r W V N A W 4 O W N y 7 N V A O V W W+ W O W 0 V W A O 7 7 _ + Imp d Ul W O A+ W co + W N V 7c m N V ++ W W O (O N A W 7C m d d X X N N N N N+ N N W N N N d W W A? 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W N A+ _ m + d d , tD W W+ W V+ O N A (A R m xx N N A W iJ W W A A N W W G1 W cn W W K) N V (O W W l N N V A Al W O o W O A A A O O V O O W A W N O N W W Vl N W V X :o N + d O V W+ W W+ tD N A (n 7C m d x N N A ? N W W A A N W W d (0 N A W W N W w V O j W W V W W W (0 W V W O y 0 W j O W N W V V W W W W W N W N w co N W W W m m + _ , m O W W+ W V+ tD N A N 7C m d K N N U( A N W N A W W W N W O W N A w R O 000 A V ON m N V V O W W N fD W W W A V V A W W V M ."a + W V+ W W O O N Ut A 7C m � N d O x 0 0 0 0 0 0 0 0 0 0 0 o p N (T A? N W A (n (n 4l A A Gl m a) N W (D-4 W A N W W OD y :.• W W m W U) N W W A N W � d d � X d d � � N FUNDING REQUIREMENTS -USES (INCLUDING FIRE STATION LEVY) December 7, 2010 Departments Council Budget Administration Budget Elections Budget Finance Budget General Government Budget Community Development Budget Police Budget Fire Budget Public Works Operating Budgets: Government Buildings Budget Fleet Mairtenance Budget Street Maintenance Budget Parks Mairitenance Budget Park & Rec BL.dget - General Operating Park & Rec Budget - Steeple Ctr. Operations Park & Rec Budget - Special Programs Transfers - Arena Assistance Total Operating Budgets - General Fund Transfers - De Dt Service Levies Total Of All 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 2118/10) * *$2,060,560,:''50 x.00798% _ $164,433 ** Water Enterprse Fund Sewer Enterprise Fund Storm Water Enterprise Fund Arena Enterprise Fund Total Funding Requirements 2010 2011 Adopted Proposed Budget Budget Difference Percentage $256,500 $237,100 ($19,400) -7.56% 520,300 516,600 (3,700) -0.71% 40,000 22,000 (18,000) - 45.00% 422,300 422,400 100 0.02% 387,700 385,100 (2,600) -0.67% 945,700 932,100 (13,600) -1.44% 3,030,300 3,121,100 90,800 3.00% 301,800 303,600 1,800 0.60% 490,200 491,900 1,700 0.35% 612,300 569,800 (42,500) -6.94% 1,331,300 1,363,000 31,700 2.38% 723,900 734,600 10,700 1.48% 1,077,500 1,072,700 (4,800) -0.45% 87,500 87,500 0 0.00% 123,700 102,400 (21,300) - 17.22% 115,000 115,000 0 0.00% $10,466,000 $10,476,900 $10,900 0.10% 0 362,376 362,376 n/a $10,466,000 $10,839,276 $373,276 3.57% 24,000 44,000 20,000 83.33% 700,000 710,000 10,000 1.43% 439,000 439,000 0 0.00% 275,000 245,000 (30,000) - 10.91% 50,000 58,600 8,600 17.20% 729,471 168,914 (560,557) - 76.84% 142,273 143,654 1,381 0.97% 80,000 86,000 6,000 7.50% 1,353,900 1,174,000 (179,900) - 13.29% 1,671,300 1,679,100 7,800 0.47% 670,300 672,500 2,200 0.33% 458,000 - ----------- - ----- 426,400 ---------- ------ (31,600) -------- -6.90% $17,059,244 $16,686,444 --- - --- -- ($372,800) --------------- - - 2.19% NOTE: Special Levies include (1)Bonded Indebtedness, (2)Fire Station Levy and (3)Armory Anticipatory Levies. December 7, 2010 Types FUNDING REQUIREMENTS- SOURCES (INCLUDING FIRE STATION LEVY) Internal Reve•we Generated: Licenses � nd Permits Intergover imental Charges fcr Services Fines & Forfeits Recreational Fees Miscellaneous Revenues Transfers n Enterprise Revenues Total Irtemal Revenues MVHC Cuts tirade Later To Include in Levy Levy Sources: Special Levies General Levy Total Levy Loss of MVHC from State Funding Total Revenue Sources 2010 2011 Adopted Proposed Budget Budget --- --------- - -- -- -- ---------- - - - - --- Difference Percentage 382,600 360,100 (22,500) -5.88% 566,500 624,700 58,200 10.27% 655,900 658,400 2,500 0.38% 125,000 125,000 0 0.00% 267,300 252,300 (15,000) -5.61% 178,200 181,300 3,100 1.74% 3,500 3,500 0 0.00% 4,153,500 3,952,000 (201,500) - 4.85% 6,332,500 6,157,300 (175,200) -2.77% 412,575 429,507 951,744 398,568 (553,176) - 58.12% 10,187,575 10,560,083 372,508 3.66% $11,139,319 -------------- $10,958,651 -- --------------- ($180,668) -1.62% $412,575 $429,507 $16,932 4.10% --- ---------- ------ $17,059,244 ----------- --- ----- ----------- $16,686,444 - - - - -- --------------- ($372,800) -2.19% NOTE: Spec al Levies include (1)Bonded Indebtedness, (2)Fire Station Levy and (3)Armory Anticipatory Levies. 2010 GENERAL PROPERTY TAX LEVY PAYABLE 2011 GENERALLEVY GENERAL FL,ND $9,063,483 BUILDING CIP FUND $44,000 STREET CIP 'FUND $710,000 EQUIPMENT l:IP FUND $439,000 INSURANCE FUND $245,000 PORT AUTHORITY OPERATING LEVY $58,600 TOTAL GENERAL LEVY $10,560,083 BONDEDINDEBTEDNESS G.O. PUBLIC FACILITY BONDS 2001 C (Port Authority) (Authorized - $168,914) $168,914 G.O. COMMUNITY CENTER REFUNDING BONDS 2001 E (Authorized - $91,883) $0 G.O. IMPROVEMENT BONDS 2003A (Authorized - $86,354) (City Assumed Special Assessments) $0 G.O. CAPITAL. IMPROVEMENT PLAN (CIP) BONDS 2005A (Authorized - $210,764) $0 G.O. EQUIPMENT CERTIFICATES 2006A (Authorized - $87,150) $0 G.O. IMPROVEMENT BONDS 2006B (Authorized - $268,201) $0 G.O. EQUIPMENT CERTIFICATES 2007B (Authorized - $107,022) $0 PUBLIC SAFETY REVENUE BONDS 2007 (Dakota Communications Center) (Authorized - $65,258) $0 G.O. EQUIPMENT CERTIFICATES 2008A (Authorized - $94,265) $0 TOTAL BONDED INDEBTEDNESS $168,914 MARKET VALUE BASED REFERENDUMS G.O. FIRE STATION REFUNDING BONDS, 2005D (Authorized - $143,654) $143,654 TOTAL FIRE STATION LEVY $143,654 PRINCIPAL AND INTEREST ON ARMORY BONDS ARMORY AW ICIPATORY LEVIES ($2,060,560,350 x.00798% = $164,433) (As of 2/18/10) $86,000 (Authorized $164,433 - Only Levy Amount Due MSABC) _ _____________ _________ _, TOTAL PRINCIPAL AND INTEREST ON ARMORY BONDS $86,000 GRAND TOTAL 2010 PROPERTY TAX LEVY $10,958,651 Last Updated 11/3/10 SPREAD LEVY COMPUTATIONAL WORKSHEET (INCLUDING FIRE STATION LEVY) (Proposed) 2008 2009 2010 2011 Total Funding Requirements 17,855,312 17,288,034 17,059,244 16,686,444 Less: Internal Revenues 6,526,300 6,210,900 6,332,500 6,157,300 Less: Market )d "alue Based Levy - Fire Station (See Below) 144,417 146,084 142,273 143,654 (3) Equals: Revenues Needed ------ ---- - - - - -- 11,184,595 – ----- – ----- — 10,931,050 -------- - - ---- 10,584,471 --------------- 10,385,490 Add Back in Stare MVHC Cuts to Reflect Actual Levy 0 350,330 412,575 429,507 Levy Certified by City to County Auditor ------- -- - ----- 11,184,595 -- ---- --- - -- 11,281,380 - --- --- - - -- -- 10,997,046 --------------- 10,814,997 County Auditor Adjustments (All Subtractions): Fiscal Disparit!es Distribution Levy (Metro Area) 968,892 1,141,159 1,195,913 1,299,717 (2) Spread Levy Used to Compute Local Tax Rate ---- — ------- — -- - - - - -- 10,215,703 (1) 10,140,221 (1) - ----- - - ---- 9,801,133 (1) ----- ---__ -- 9,515,280 Increase /(Eiecrease) from Previous Year in Spread Levy -0.74% -3.34% -2.92% Market Value Based Referendum Levy - Fire Station 144,417 146,084 142,273 143,654 (3) (1) Actual Spread Levy Based on Numbers from Dakota County (2) 2011 Number Provided by Dakota County as of 8/9/10 (3) Market Value Based Levy for Fire Station - Based on $143,654 Levy Spread to Taxable Market Value on 2118/10 Last Update from Dakota County 8/1/10 Shows the Levy of $143,654 / $2,056,062,750 = $.0699 per $1,000 as our Estimate Last Updated - 11/3/10 v In 05j 01 V 0 a 0 a Oyu) ti 9 Oq 0 1I < r m 'm O ,Z ^ o m O Z °— x x o x 1, 04 °- c n °° ' ;xm m $ o . _o.Z_ m � N n m __ m � m _ ° o. °• m m — � %% 3 y1 n m � 0000 m ° o mo A o x m 2. 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