HomeMy WebLinkAbout2.b. Preliminary Review of Draft 2019 Budget
EXECUTIVE SUMMARY
City Council Work Session: August 6, 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: Summary Sheets of Draft 2019 Budget APPROVED BY: LJM
RECOMMENDED ACTION: Discuss draft 2019 Budget and provide staff direction on needed
modifications.
BACKGROUND
The Council has met in two previous work sessions to discuss the details of the 2019 Budget and to
provide staff direction. The current version of the draft 2019 Budget is the result of direction received by
the Council as well as months of staff work, internal deliberations, and modifications. Attached to this
memo are updated Budget Summary pages to convey the current proposal, and the detailed departmental
budgets will be updated to reflect further changes after the work session (the complete Budget provided in
June can still be used for reference and discussion). The preliminary 2019 Budget and Levy will be
formally presented for consideration and certification in September, and an updated complete budget
document will be provided at that time. The 10-year Capital Improvement Plan will be presented at the
September work session.
Based upon the proposed changes to expenditures and revenues discussed below, the draft 2019 Budget
reflects a 4.51% increase to the total Tax Levy. As you will recall, the first draft provided in July reflected
a 4.53% increase to the total Tax Levy.
The City’s General Fund Budget is proposed to increase 5.4%. In this scenario, the City’s tax rate for 2019
is proposed to decrease by 2.63%, from 0.40961 in ’18 to 0.39885. The impact of the proposed tax levy
on the median valued home results in a $58 increase in taxes for 2019.
It is important to note that the City’s tax rate is going down while the amount of City taxes paid by a
homeowner is going up. This is due to market value increases in property values as assessed by Dakota
County (7.42% citywide). If a homeowner were to see no value growth on their property, their taxes
would actually decrease by $31 (on a $300,000 home).
Revenues
Below is a summary of revenue modifications since the June work session.
Budget Line Item Change
MSA for Street Maintenance $50,000 added
• Add’l revenues due to a reallocation of MSA
funds. As a result, $25,000 expenditure
added in Street Maintenance (sealcoat etc.)
General Levy $12,410,636
• Reduced from $12,412,336
2
Expenditures
Below is a summary of expenditure modifications since the June work session (shown in red
strikethrough), along with all major budget changes for any additional discussion.
City Council
Administration
This category includes Elections, Administration, and the General Government budgets.
Finance
Community Development
Police
Initiative Changed or Pending Discussion
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 Changed or Pending Discussion
Funding for part-time staff (clerk support, minutes, etc.) $5,000
Purchase service package from Laserfiche program
development company
$3,000
Initiative Changed or Pending Discussion
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 Changed or Pending Discussion
No new funds requested N/A
Initiative Changed or Pending Discussion
Add 2 FTEs (Patrol Officer) on 6/3/19
• Position added after the Commander promotion
occurs in ‘19; 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
3
Fire
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 Changed or Pending Discussion
Increased funding for salary costs due to increased call
volumes
$10,000 (new since June)
Initiative Changed or Pending
Discussion
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 Changed or Pending
Discussion
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 Changed or Pending
Discussion
Marketing partnership with Retail Strategies $45,000
Funds to host 2nd Annual Home Expo (offset by revenues) $8,000
FUNDING REQUIREMENTS - USES
August 6, 2018
2018 2019
Adopted Proposed +/-
Departments Budget Budget Difference Percentage
---------------------------------------------------------------------------------------------------------------------------------------
Council Budget $288,000 $324,200 $36,200 12.57%
Administration Budget 676,700 683,700 7,000 1.03%
Elections Budget 45,300 20,000 (25,300) -55.85%
Finance Budget 568,300 635,800 67,500 11.88%
General Government Budget 334,600 353,400 18,800 5.62%
Community Development Budget 1,125,200 1,098,200 (27,000) -2.40%
Police Budget 4,164,500 4,485,300 320,800 7.70%
Fire Budget 438,700 453,000 14,300 3.26%
Public Works Operating Budgets:
Government Buildings Budget 605,200 669,300 64,100 10.59%
Fleet Maintenance Budget 656,500 646,800 (9,700) -1.48%
Street Maintenance Budget 1,520,700 1,556,900 36,200 2.38%
Parks Maintenance Budget 1,001,100 1,123,600 122,500 12.24%
Park & Rec Budget - General Operating 1,326,800 1,399,900 73,100 5.51%
Park & Rec Budget - Steeple Ctr. Operations 119,400 128,400 9,000 7.54%
Park & Rec Budget - Special Programs 85,400 84,400 (1,000) -1.17%
Transfers - Arena Assistance 130,000 130,000 0 0.00%--------------------------------------------------------------------------
Total Operating Budgets - General Fund $13,086,400 $13,792,900 $706,500 5.40%
Building CIP Requirements 24,000 0 (24,000) -100.00%
Street CIP Requirements 783,900 852,327 68,427 8.73%
Equipment CIP Requirements 600,000 620,000 20,000 3.33%
Insurance Budget Requirements 280,000 380,000 100,000 35.71%
Port Authority Operating Levy 60,000 105,000 45,000 75.00%
Bonded Indebtedness 344,681 282,509 (62,172) -18.04%
Water Enterprise Fund 2,359,700 1,786,300 (573,400) -24.30%
Sewer Enterprise Fund 2,525,100 2,534,600 9,500 0.38%
Storm Water Enterprise Fund 1,180,300 982,600 (197,700) -16.75%
Arena Enterprise Fund 531,000 613,900 82,900 15.61%--------------------------------------------------------------------------
Total Funding Requirements $21,775,081 $21,950,136 $175,055 0.80%=======================================
FUNDING REQUIREMENTS - SOURCES
August 6, 2018
2018 2019
Adopted Proposed +/-
Types Budget Budget Difference Percentage
-----------------------------------------------------------------------------------------------------------------------------------
Internal Revenue Generated:
Licenses and Permits 729,200 749,800 20,600 2.83%
Intergovernmental 747,800 1,066,500 318,700 42.62%
Charges for Services 1,309,100 1,258,100 (51,000) -3.90%
Fines & Forfeits 115,000 115,000 0 0.00%
Recreational Fees 236,500 256,500 20,000 8.46%
Miscellaneous Revenues 163,100 172,700 9,600 5.89%
Transfers In 3,500 3,500 0 0.00%
Enterprise Revenues 6,596,100 5,917,400 (678,700) -10.29%
------------------------------------------------------------------------
Total Internal Revenues 9,900,300 9,539,500 (360,800) -3.64%
Levy Sources:
Special Levies 344,681 282,509 (62,172) -18.04%
General Levy 11,530,100 12,128,127 598,027 5.19%
------------------------------------------------------------------------
Total Levy $11,874,781 $12,410,636 $535,855 4.51%
------------------------------------------------------------------------
Total Revenue Sources $21,775,081 $21,950,136 $175,055 0.80%
======================================
2018 GENERAL PROPERTY TAX LEVY PAYABLE 2019
GENERAL LEVY
GENERAL FUND $10,170,800
BUILDING CIP FUND $0
STREET CIP FUND $852,327
EQUIPMENT CIP FUND $620,000
INSURANCE FUND $380,000
PORT AUTHORITY OPERATING LEVY $105,000
-------------------------
TOTAL GENERAL LEVY $12,128,127
BONDED INDEBTEDNESS
G.O. PUBLIC FACILITY REFUNDING BONDS 2010B (Old 2001C) (Port Authority) (Authorized - $168,392) $108,392
G.O. IMPROVEMENT BONDS 2014A (Authorized - $4,714) $0
G.O. CAPITAL IMPROVEMENT PLAN (CIP) REFUNDING BONDS 2015B (Authorized - $174,117) $174,117
G.O. IMPROVEMENT BONDS 2017A (Authorized - $8,835) $0
-------------------------
TOTAL BONDED INDEBTEDNESS $282,509
-------------------------
GRAND TOTAL 2018 PROPERTY TAX LEVY $12,410,636
==============
Last Updated 8/2/18
SPREAD LEVY COMPUTATIONAL WORKSHEET
(INCLUDING FIRE STATION LEVY)
(Proposed)
2016 2017 2018 2019
--------------------------------------------------------------------
Total Funding Requirements 18,828,402 20,223,056 21,775,081 21,950,136
Less: Internal Revenues 7,789,100 8,795,600 9,900,300 9,539,500
--------------------------------------------------------------------
Equals: Revenues Needed 11,039,302 11,427,456 11,874,781 12,410,636
County Auditor Adjustments (All Subtractions):
Fiscal Disparities Distribution Levy (Metro Area)1,121,469 1,175,131 1,236,215 1,236,215 (2)
--------------------------------------------------------------------
Spread Levy Used to Compute Local Tax Rate 9,917,833 (1)10,252,325 (1)10,638,566 (1)11,174,421
Increase/(Decrease) from Previous Year in Spread Levy 3.37%3.77%5.04%
(1) Actual Spread Levy Based on Numbers from Dakota County
(2) 2019 Number Provided by Dakota County as of 8/x/18
Last Updated - 8/2/18
CITY OF ROSEMOUNT
WORKSHEET FOR ESTIMATING RESIDENTIAL PROPERTY TAXES (ISD #196 FIGURES)
(Rates Based on Proposed Preliminary Levy Numbers)
233,952 (Value After M/V Exclusion) 245,942 (Value After M/V Exclusion) 267,197 (Value After M/V Exclusion)(+8.63%) 289,760 (Value After M/V Exclusion)
Market Value 248,800 (Payable 2017 Median) 259,800 (Payable 2018 Median) 279,300 (Est. Payable 2019 Median)(+7.51%) 300,000
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Year 2017 2018 2019 Est. 2017 2018 2019 Est. 2017 2018 2019 Est. 2017 2018 2019 Est.
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Tax Capacity 2,340 2,340 2,340 2,459 2,459 2,459 2,672 2,672 2,672 2,898 2,898 2,898
Tax Capacity Rates:
City 0.41832 0.40961 0.39885 0.41832 0.40961 0.39885 0.41832 0.40961 0.39885 0.41832 0.40961 0.39885
County 0.28004 0.26580 0.26580 0.28004 0.26580 0.26580 0.28004 0.26580 0.26580 0.28004 0.26580 0.26580
School District 0.23336 0.21352 0.21352 0.23336 0.21352 0.21352 0.23336 0.21352 0.21352 0.23336 0.21352 0.21352
Miscellaneous 0.04907 0.04307 0.04307 0.04907 0.04307 0.04307 0.04907 0.04307 0.04307 0.04907 0.04307 0.04307
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Totals 0.98079 0.93200 0.92124 0.98079 0.93200 0.92124 0.98079 0.93200 0.92124 0.98079 0.93200 0.92124
========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ==========
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
ISD #196 Market Ref 0.0027380 0.0026715 0.0026715 0.0027380 0.0026715 0.0026715 0.0027380 0.0026715 0.0026715 0.0027380 0.0026715 0.0026715
Dakota County Ref 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000
2018 2019
Property Taxes:
City 979 958 933 1,029 1,007 981 1,118 1,094 1,066 1,212 1,187 1,156 City Taxes $1,007 $1,066
County 655 622 622 689 654 654 748 710 710 811 770 770 City Market Ref.$0 $0
School District 546 500 500 574 525 525 624 571 571 676 619 619 ----------------------------
Miscellaneous 115 101 101 121 106 106 131 115 115 142 125 125 Total Taxes - Median $1,007 $1,066
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Total Property Taxes 2,295 2,180 2,155 2,412 2,292 2,266 2,621 2,490 2,462 2,842 2,701 2,669 Increase / (Decrease)$58
City Market Referendum 0 0 0 0 0 0 0 0 0 0 0 0
ISD #196 Market Ref 681 665 665 711 694 694 765 746 746 821 801 801
Dakota County Ref 0 0 0 0 0 0 0 0 0 0 0 0
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Grand Total All Taxes $2,976 $2,845 $2,820 $3,124 $2,986 $2,960 $3,385 $3,236 $3,208 $3,663 $3,502 $3,471
========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ==========
344,260 (Value After M/V Exclusion) 414,000 (Value After M/V Exclusion)
Market Value 350,000 414,000 History of Actual Tax Capacity Rates (Using ISD #196 Rates)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Year 2017 2018 2019 Est. 2017 2018 2019 Est. 2014 2015 2016 2017 2018 2019 Est.
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Tax Capacity 3,443 3,443 3,443 4,140 4,140 4,140 (2.63% Decrease)
Tax Capacity Rates:
City 0.41832 0.40961 0.39885 0.41832 0.40961 0.39885 0.47676 0.45152 0.43149 0.41832 0.40961 0.39885 (1), (2)
County 0.28004 0.26580 0.26580 0.28004 0.26580 0.26580 0.31827 0.29633 0.28570 0.28004 0.26580 0.26580 (2)
School District 0.23336 0.21352 0.21352 0.23336 0.21352 0.21352 0.27606 0.23271 0.24317 0.23336 0.21352 0.21352 (2)
Miscellaneous 0.04907 0.04307 0.04307 0.04907 0.04307 0.04307 0.05538 0.05033 0.05063 0.04907 0.04307 0.04307 (2)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Totals 0.98079 0.93200 0.92124 0.98079 0.93200 0.92124 1.12647 1.03089 1.01099 0.98079 0.93200 0.92124
========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ==========
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 (2)
ISD #196 Market Ref 0.0027380 0.0026715 0.0026715 0.0027380 0.0026715 0.0026715 0.0025809 0.0025484 0.0026999 0.0027380 0.0026715 0.0026715 (2)
Dakota County Ref 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 (2)
Property Taxes:
City 1,440 1,410 1,373 1,732 1,696 1,651 Net Tax Capacity Percentages
County 964 915 915 1,159 1,100 1,100 For Residential Homesteads:
School District 803 735 735 966 884 884
Miscellaneous 169 148 148 203 178 178 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 3,376 3,209 3,171 4,060 3,858 3,814
City Market Referendum 0 0 0 0 0 0
ISD #196 Market Ref 958 935 935 1,134 1,106 1,106 (For 2002 Through 2011 Credit Applied to All Organizations Proportionately)
Dakota County Ref 0 0 0 0 0 0 (For 2012 and On Credit Eliminated-Replaced with Market Value Adjustment)
------------------ ------------------ ------------------ ========== ========== ==========
Grand Total All Taxes $4,335 $4,144 $4,106 $5,194 $4,964 $4,920
========== ========== ========== ========== ========== ==========
(1) This Figure Derived Using Figures Provided by Dakota County:
(a) 2018 Projected Levy Less Fiscal Disparities as of x/xx/18 11,174,421 / 28,016,364 = 0.39885
(b) Preliminary Net Tax Capacity Figure as of 3/1/18 (With M/V Exclusion) 31,709,411 (7.27% Increase from Final Pay 2018)
(c) Captured Tax Increment Tax Capacity as of 10/1/17 (932,688) (x.xx% Increase from Final Pay 2018)
(d) Contribution to Fiscal Disparities as of 6/15/18 (2,760,359) (3.99% Increase from Final Pay 2018)
------------------
Last Updated - 8/2/18 (2) These Figures Provided by Dakota County as of 10/xx/18 28,016,364
(For 2013 and on the City of Rosemount does not have a Referendum Levy)