HomeMy WebLinkAbout7.a. 2018 BudgetEXECUTIVE SUMMARY
City Council Regular Meeting: December 5, 2017
AGENDA ITEM: 2018 Budget AGENDA SECTION:
Public Hearing
PREPARED BY: Logan Martin, City Administrator
Jeff May, Finance Director AGENDA NO. 7.a.
ATTACHMENTS: Resolution, 2018 Budget APPROVED BY: LJM
RECOMMENDED ACTION: Adopt a Resolution Approving the 2018 General Fund
Operating Budget, the 2018 C.I.P. Budgets, the 2018 Insurance Budget, the 2018 Port
Authority Operating Levy and the 2018 Levy required by the City of Rosemount.
EXECUTIVE SUMMARY
In response to direction received from the City Council at work sessions in July, August and November,
staff is prepared to present the City’s Final Operating Budget and Levy for 2018. These documents are the
result of many hours of work from both the Council and Staff, and we are pleased with the results.
The recommended 2018 Budget proposes an increase in the City’s property tax levy of 3.91%. This levy
increase results in an estimated annual increase of $31 in the City taxes assessed to a median valued home.
The estimated City tax on a median valued home ($260,450) would be $1,009 in 2018. The median valued
home saw an increase in assessed value of 4.68% thanks to a strong local housing market. Even with the
increases proposed for 2018, an owner of a median valued home is still paying $49 less in City taxes in
2018 than they paid in 2008.
A summary of key characteristics of the proposed 2018 Budget is shown in the following table:
A summary of the main expenditures leading to the budget increase is discussed later in this memo. The
budget shows some increased personnel costs reflecting new full time employees, increased funding for
the City’s long-range maintenance plans, and overall increased wages and benefits for 2018 based on
assumptions from current labor contracts.
Partially offsetting these increased costs are increased development related fees for building permits, plan
checks, and administrative charges for development of new streets and utilities. The public hearing on the
budget will be held at this meeting (December 5th at 7:00 p.m. in the Council Chambers).
BUDGET PROCESS
The drafting of the 2018 Budget ultimately began with and was inspired by the City Council’s goal setting
retreat in January. The goals and five year strategic initiatives discussed during that process were
Budget Facts at a Glance
Growth of Property Tax Base from ‘17 + 6.15%
Avg. value increase on Median-Valued Home + 4.68%
Change in General Fund Budgets + $693,700 or 5.6%
City Tax Increase on Median Valued Home + $31
% Tax Change on Medan Valued Home + 3.17%
Change in Estimated City Tax Rate - 2.18% (from 0.41832 to 0.40918)
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instrumental in the creating of each department’s budget request.
After each department submitted their 2018 request, Finance Director May and I met individually with
each Department Head to discuss all requests and receive further explanation as to their necessity. A
number of items were removed via those discussions (totaling approximately $400,000) and 3 drafts were
completed internally prior to Council review in July.
In addition, as a part of the budget review we have looked 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 for parking lots, playgrounds, etc.
Finally, as has been the direction in year’s past, staff looked at the overall budget strategically for its overall
balance and consistency, effect on taxpayers, and long term impacts on finances for 2018 and beyond.
Our intent 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
In accordance with State law, the preliminary budget and levy were adopted by September 30th and the
final budget must be adopted by December 28th after a public hearing.
GENERAL FACTORS AFFECTING THE BUDGET
Tax Base
For the fifth consecutive year, the overall tax base in the community has increased. The overall tax
capacity value within the City is estimated to be 6.15% higher in 2018 than it was in 2017. The increase in
market value of the median home in Rosemount is 4.68%.
State Budget and Legislative Impacts
There were no significant changes in State legislation for 2018 impacting the Budget, and there are no levy
limits in place for 2018.
REVENUES
Property taxes fund 74.3% 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 several key categories.
2017 Budget 2018 Estimated Change
Licenses & Permits $695,900 $729,200 + $33,300
Intergovernmental $710,600 $747,800 + $37,200
Chargers for Services (no SKB) $498,800 $634,100 + $135,300
SKB Revenue $625,000 $675,000 + $50,000
Fines & Forfeits $120,000 $115,000 - $5,000
Recreational Revenues $242,100 $236,500 - $5,600
Miscellaneous Revenue $148,800 $163,100 + $15,000
Thanks to the City’s housing growth, building permit revenues have varied from about $345,000 to
$565,000 annually over the past four years and have shown an upward trend. For 2018, staff estimates
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permit revenues of $510,000. The charges for services category includes an additional $204,000 in plan
check fees, which are related to building permits.
EXPENDITURES
Salaries
Rosemount currently has 83 full time employees (FTE), which compares with 81 FTE at the beginning of
2008. One new FTE, an additional patrol officer, is included in the 2018 Budget. Funding for this
position is calculated based on a March hiring, which would coincide with the promotion of current
Officer to Detective. One additional FTE, an economic development specialist, is tentatively shown in this
budget with a July 1 start date. This item will require further discussion, specifically as it relates to the
Council’s consideration of an agreement with an outside retail recruitment firm rather than the hiring of an
FTE. The labor agreements for all four bargaining units expire in 2017, so contract negotiations with all
unions are completed or nearing completion. Anticipated cost of living wage increases are accounted for
in this budget.
Health Insurance
Staff was able to negotiate a health insurance increase of 6% for 2018, which is a better rate than we had
anticipated. This allowed staff to reallocate $75,000 in SKB revenues that were previously slated for the
general fund back to the Building CIP for future projects.
Capital Budgets
The City currently has three capital improvement program (CIP) funds: Equipment, Streets, and
Buildings. A review of the CIP has been completed, and staff is bringing a proposed 10 year CIP to the
Council at this meeting. The levy for the Equipment CIP is proposed to be $600,000, an increase of
$20,000 due to future forecasted needs.
The Street CIP is proposed to have a levy of $783,900, a decrease of 3.39% to account for the reallocation
of funds in the Street Maintenance budget.
The Building CIP has an ongoing levy of $24,000, which is for the repayment of an internal loan for the
current Public Works facility. The Building CIP fund has historically been used for municipal and
recreational building needs. No tax levy above the current $24,000 is proposed, and recently authorized
SKB host agreements will be utilized to provide funding for these and other amenity projects.
Enterprise Fund Budgets
Proposed water, sewer and storm water utility rates and budgets were reviewed by the Utility Commission
and will be presented to the Council at the December 19th meeting as part of the annual fee resolution
update.
CONCLUSION
The 2018 Budget and Levy reflect modest adjustments to account for the growth that the community has
experienced in recent years and anticipates continuing to see into the future. The levy increase of 3.91%
would mean that Rosemount would have the 3rd lowest municipal levy increase in the County in 2018 (and
the lowest increase in actual dollars), while still maintaining the City’s service levels and long-range
equipment and facilities replacement schedules. A taxpayer owning a median-valued home will pay $49
less in City taxes than they would have paid in 2008, which is a testament to the City’s commitment to
financial management and respect of tax dollars.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2017 -
A RESOLUTION APPROVING THE 2018 GENERAL FUND OPERATING BUDGET,
THE 2018 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGETS,
THE 2018 INSURANCE BUDGET, THE 2018 PORT AUTHORITY OPERATING LEVY
AND THE 2018 LEVY REQUIRED BY THE CITY OF ROSEMOUNT
WHEREAS, the City Council of the City of Rosemount has determined that budgets and
special needs for the year 2018 will be in the amount of $21,430,400 for the General
Operating Fund, the three CIP funds, the Insurance Fund levy, the Port Authority
operating levy and the Enterprise funds; and
WHEREAS, the City Council has determined that special levies for Bonded
Indebtedness total $344,681 for 2 City issues (G.O. Public Facility Refunding Bonds
2010B and G.O. Capital Improvement Plan Refunding Bonds 2015B) and no levy
necessary for any other City issues (utilizing other revenue sources); and
WHEREAS, the City Council has determined that actual incomes, fund transfers and
anticipated aids will total $9,900,300; and
WHEREAS, the City Council has determined that budgets for all Debt Service Funds
total $2,891,300; and
WHEREAS, the City Council has determined the budget for the Arena Fund to be
$531,000; and
WHEREAS, the City Council has received the Port Authority and the Utility Fund
budgets approved by the Rosemount Port Authority and the Utility Commission.
NOW, THEREFORE BE IT RESOLVED, that the total levy certified to the Dakota
County Auditor shall be $11,874,781; and
BE IT FURTHER RESOLVED, that the City Council approves the 2018 General Fund
operating budget as presented to them at the Public Hearing held this evening; and
BE IT FURTHER RESOLVED, that the City Council approves the three 2018 CIP Fund
budgets, the 2018 Insurance Fund budget, the 2018 Port Authority operating levy and
the 2018 Arena Fund budget as presented to them at the Public Hearing held this
evening.
RESOLUTION 2017 -
ADOPTED this 5th day of December, 2017.
_____________________________________
William H. Droste, Mayor
ATTEST:
____________________________________
Clarissa Hadler, City Clerk
CERTIFICATION
I hereby certify that the foregoing is a true and correct copy of a resolution presented to
and adopted by the City Council of Rosemount at a duly authorized meeting thereof,
held on the 5th day of December, 2017, as disclosed by the records of said City in my
possession.
(SEAL)
____________________________________
Clarissa Hadler, Rosemount City Clerk
2018
CITY BUDGET REPORT
December 5, 2017
,_ROSEMOUNT
MINNESOTA
TABLE OF CONTENTS
Budget Resolution 1
Levy Certification Documents 3
Funding Requirements 14
2016 General Property Tax Levy Payable 2017 16
General Fund Revenues 37
Departmental Budgets
City Council 53
Administration 55
Elections 60
Finance 62
General Government 67
Community Development 70
Police 75
Fire 83
Public Works 89
Government Buildings 92
Fleet Maintenance 96
Street Maintenance 93
Parks & Grounds Maintenance 96
Water Operating Fund (Enterprise Fund) 127
Sewer Operating Fund (Enterprise Fund) 133
Storm Water Operating Fund (Enterprise Fund) 138
Parks & Recreation 98
Other Financing Uses - Transfers 103
Capital Improvement Plan 105
Insurance 110
Port Authority 112
Debt Service Funds 115
Enterprise Funds
Water Operating Fund 127
Sewer Operating Fund 133
Storm Water Operating Fund 138
Ice Arena 142
2018 ANNUAL BUDGET
PREPARED BY:
MAYOR ...................................................................... WILLIAM DROSTE
CITY COUNCIL MEMBER ........................................ MARK DEBETTIGNIES
CITY COUNCIL MEMBER .................................................. HEIDI FRESKE
CITY COUNCIL MEMBER ................................................ SHAUN NELSON
CITY COUNCIL MEMBER .............................................. JEFF WEISENSEL
CITY ADMINISTRATOR .................................................. LOGAN MARTIN
FINANCE DIRECTOR .............................................................. JEFF MAY
POLICE CHIEF ................................................................. MITCH SCOTT
FIRE CHIEF ........................................................ RICHARD SCHROEDER
CITY ENGINEER/P.W. DIRECTOR ................................. BRIAN ERICKSON
COMMUNITY DEVELOPMENT DIRECTOR ......................... KIM LINDQUIST
DIRECTOR OF PARKS & RECREATION ............................. DAN SCHULTZ
ASSISTANT CITY ADMINISTRATOR .................................. EMMY FOSTER
PUBLIC WORKS SUPERVISOR ...................................... JIM KOSLOWSKI
BOARDS, COMMISSIONS AND COMMITTEES
PARK & REC COMMITTEE
MAUREEN BARTZ
MICHAEL ELIASON
BARBARA FARRELL
BRYAN FELDHAUS
SCOTT McDONALD
CRAIG NELSON
DAVID SPEICH
LINCOLN TILSON
JAMES YOUNG
PORT AUTHORITY
MARK DEBETTIGNIES
WILLIAM DROSTE
HEIDI FRESKE
ROBERT SMITH
JEFF WEISENSEL
DAN WOLF
(VACANCY)
PLANNING COMMISION
MICHAEL CLEMENTS
GRETCHEN FREEMAN
BRANDON HENRIE
MELISSA KENNINGER
JOHN MELE
JAMES NELSON
PAM VANDERWIEL
(VACANCY)
(VACANCY)
UTILITY COMMISSION
BRIAN CONNOLLY
VANESSA DEMUTH
ED NELSON
BUDGETS ADOPTED
General Fund
10-Year CIP Program Funds
Insurance Fund
Arena Fund
Port Authority Fund
Utilities Funds (Water, Sewer & Storm Water)
Truth in Taxation Public Hearing
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