HomeMy WebLinkAbout2.b. Preliminary Budget Workshop (6-5-18)
EXECUTIVE SUMMARY
City Council Work Session: June 5, 2018
AGENDA ITEM: Preliminary Review of Draft 2019 Budget AGENDA SECTION:
Discussion
PREPARED BY: Logan Martin, City Administrator
Jeff May, Finance Director AGENDA NO.: 2.b.
ATTACHMENTS: Draft 2019 Budget APPROVED BY: LJM
RECOMMENDED ACTION: Discuss draft 2019 Budget and provide staff direction on needed
modifications.
BACKGROUND
Over the last few months, staff has been working diligently to develop the attached 2019 Budget. Finance
Director May and I met with each Department Head to review their budget proposals and to discuss the
costs and benefits of each proposal. The draft attached here is the 3rd draft internally, with approximately
$200,000 of requests eliminated through the course of the review process.
The preliminary 2019 Budget shows an increase of 5.03% to the operating budget, which results in a
4.53% increase ($537,555) in the property tax levy. The impact of this levy increase on a median valued
home is projected to be $54 per year. The City’s tax rate (the percentage used to calculate the City’s
portion of the property tax) is projected to be reduced to 39.7%, as compared to 40.9% in 2017. This rate
continues to be lower than it was in 2016 (43%), which is a reflection of the growth of the City in recent
years and the effect of added taxable value. In 2019, the median value home is estimated to be $279,000,
which reflects a 7.51% value growth over last year’s median valued home. This is the 4th highest value per
median-valued home in Dakota County.
Revenues
The City’s tax base (tax capacity value) is preliminarily increasing by 7.42% for 2019, or a total increase of
$2,149,611 to the City’s taxable value. In 2018, the City’s tax base increased by 6.34%. Historically, from
2008-2019, the City’s tax capacity value has grown by 18.98% ($5,058,527), which is the 2nd largest value
growth in Dakota County.
Non-tax levy revenues generated by the City are projected to increase by $318,900 in 2019. Licenses and
Permits, the fees generated by growth and construction activities, are conservatively projected to grow
2.83% next year. As discussed in previous years, staff takes a conservative approach to projecting these
revenues so as to not rely too heavily on uncontrollable factors. However, as large residential or
commercial projects are completed, revenues received would outpace these estimates. Other factors
leading to this increased include anticipated increased rental of the Steeple Center / RCC, and a
reallocation of Municipal State Aid roadway funds.
Expenditures
Below is a description of notable changes to each department’s budget. Some discussion is provided
below, however a detailed presentation and discussion surrounding these initiatives will occur during the
work session.
2
City Council
Administration
This category includes Elections, Administration, and the General Government budgets.
Finance
Community Development
Police
Fire
Initiative Increase over ’18 Budget
Produce 4 quarterly newsletters (increased from 3)
• Includes switch to a new designer
$6,200
Increased funds for staff training and education $8,000
Initiative Increase over ’18 Budget
Funding for part-time staff (clerk support, minutes, etc.) $5,000
Purchase service package from Laserfiche program
development company
$3,000
Initiative Increase over ’18 Budget
Transition part-time IT Specialist to full-time
• Responds to increased demands for IT services
across all departments, along with transitions to
Laserfiche / digital efficiencies.
$38,000
Initiative Increase over ’18 Budget
No new funds requested N/A
Initiative Increase over ’18 Budget
Add 2 FTEs (Patrol Officer) on 6/3/19
• Position added after the Major promotion
occurs; would increase ability to provide
adequate staff size to meet service minimums,
while reducing overtime due to staff shortages.
$124,000
Implement “Guardian Tracking” technology
• Performance tracking module that allows
multiple supervisors to comment on
performance and track development goals
$1,600
Initiative Increase over ’18 Budget
No new funds requested N/A
3
Public Works
This category includes Gov’t Buildings, Fleet Maintenance, Street Maintenance, and Parks Maintenance
budgets.
Parks and Recreation
Port Authority
RECOMMENDATION
Staff requests the City Council provide direction on any needed modifications to the draft 2019 Budget.
Initiative Increase over ’18 Budget
Increased project needs on long-term Building Maintenance
program
$50,000
Fund anticipated HVAC needs on City buildings $10,000
Decreased funding for Equipment / Parts due to lease
maintenance program
-$20,000
Purchase new holiday decorations $6,000
Decreased funds for General Engineering due to in-house
Assistant City Engineer
-$10,000
Add’l funds for Tree Trimming to respond to EAB program $8,000
Increased project needs on long-term Parks Maintenance
program (skate park equip., lighting at Erickson)
$100,000
Initiative Increase over ’18 Budget
Add’l funding to support new programs (summer concert
series, food truck fest, market festival, etc.)
$8,000
Add’l marketing funds to promote new events $6,100
Initiative Increase over ’18 Budget
Marketing partnership with Retail Strategies $45,000
Funds to host 2nd Annual Home Expo (offset by revenues) $8,000