HomeMy WebLinkAbout2.b. 3rd Review of 2020 BudgetE X E C U T I V E S U M M A R Y
City Council Work Session: September 3, 2019
AGENDA ITEM: Preliminary Review of Draft 2020 Budget AGENDA SECTION:
Discussion
PREPARED BY: Logan Martin, City Administrator
Jeff May, Finance Director AGENDA NO. 2.b.
ATTACHMENTS: Summary pages of 2020 Budget (refer to July 2
work sess. packet for full Budget) APPROVED BY: LJM
RECOMMENDED ACTION: Discuss draft 2020 Budget and provide staff direction on needed
modifications.
BACKGROUND
Based on feedback received from the Council at its August work session, staff has made a few
modifications to the preliminary 2020 Budget. As Council will recall, the preliminary “ceiling” for the Tax
Levy will be established at the September 17 meeting, with the ability to reduce the levy prior to final
authorization in December. The purpose of the discussion at the September 3 work session will be to do a
final check-in on the preliminary budget.
Two major changes were made to the preliminary budget that staff would like to call attention to. The
remainder of the items listed for each department from prior memos remain unchanged.
•Utilization of SKB landfill fees in the General Fund has been reduced by an additional $200,000.
Previously, $100,000 was removed from the General Fund, so a total of $300,000 of revenue has
been removed from the General Fund.
This means that $375,000 of revenue from the SKB landfill is utilized by the General Fund and
$125,000 remains in the Street CIP for trails. The remainder collected is saved for future municipal
building projects. In the last five years, the City has been averaging $2,144,000 in annual revenues
from this source.
•Based on preliminary estimates from our insurance advisors, we have added an additional 4% to all
health insurance line items. The previous increase shown was 4%, so this resulted in a $31,500
increase to the General Fund and will better prepare us for the bids we get for health insurance
later this fall. Any increases beyond the 8% shown will be funded via the assigned health insurance
account.
These changes plus the previous factors discussed result in a net levy increase of 6.04% ($744,405), as
compared to 4.5% ($555,004) shown in August. This increase results in a $58 increase in City taxes to the
median-valued home owner. Prior to these changes, the anticipated increase was $39. This levy increase
still results in a 1.97% decrease in our tax rate, thanks to the City’s growth in value via new construction
and existing properties.
The City’s tax base (tax capacity value) is preliminarily increasing by 7.91% for 2020, or a total increase of
2
$2,510,001 to the City’s taxable value. In 2019, the City’s tax base increased by 7.32%. Historically, from
2008-2020, the City’s tax capacity value has grown by 28.45% ($7,582,306), which is the 2nd largest value
growth in Dakota County.
RECOMMENDATION
Staff requests the City Council provide direction on any needed modifications to the draft 2020 Budget.
FUNDING REQUIREMENTS - USES
September 17, 2019
2019 2020
Adopted Proposed +/-
Departments Budget Budget Difference Percentage
---------------------------------------------------------------------------------------------------------------------------------------
Council Budget $325,000 $341,600 $16,600 5.11%
Administration Budget 680,300 722,600 42,300 6.22%
Elections Budget 20,000 62,300 42,300 211.50%
Finance Budget 631,700 666,900 35,200 5.57%
General Government Budget 353,400 373,900 20,500 5.80%
Community Development Budget 1,090,000 1,253,600 163,600 15.01%
Police Budget 4,433,300 4,689,200 255,900 5.77%
Fire Budget 453,000 484,500 31,500 6.95%
Public Works Operating Budgets:
Government Buildings Budget 668,600 653,800 (14,800)-2.21%
Fleet Maintenance Budget 644,500 635,000 (9,500)-1.47%
Street Maintenance Budget 1,517,800 1,484,700 (33,100)-2.18%
Parks Maintenance Budget 1,119,800 1,180,400 60,600 5.41%
Park & Rec Budget - General Operating 1,410,500 1,469,500 59,000 4.18%
Park & Rec Budget - Steeple Ctr. Operations 140,400 149,200 8,800 6.27%
Park & Rec Budget - Special Programs 84,400 87,600 3,200 3.79%
Transfers - Arena Assistance 130,000 130,000 0 0.00%
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Total Operating Budgets - General Fund $13,702,700 $14,384,800 $682,100 4.98%
Building CIP Requirements 0 0 0 0.00%
Street CIP Requirements 852,327 877,897 25,570 3.00%
Equipment CIP Requirements 620,000 640,000 20,000 3.23%
Insurance Budget Requirements 380,000 425,000 45,000 11.84%
Port Authority Operating Levy 105,000 112,000 7,000 6.67%
Bonded Indebtedness 282,507 180,942 (101,565)-35.95%
Water Enterprise Fund 2,481,600 1,682,800 (798,800)-32.19%
Sewer Enterprise Fund 2,531,400 2,630,200 98,800 3.90%
Storm Water Enterprise Fund 1,093,700 1,325,300 231,600 21.18%
Street Light Utility Fund 0 250,000 250,000 100.00%
Arena Enterprise Fund 610,400 649,300 38,900 6.37%
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Total Funding Requirements $22,659,634 $23,158,239 $498,605 2.20%
=======================================
FUNDING REQUIREMENTS - SOURCES
September 17, 2019
2019 2020
Adopted Proposed +/-
Types Budget Budget Difference Percentage
-----------------------------------------------------------------------------------------------------------------------------------
Internal Revenue Generated:
Licenses and Permits 749,800 780,300 30,500 4.07%
Intergovernmental 1,066,500 1,104,800 38,300 3.59%
Charges for Services 1,258,100 1,058,800 (199,300)-15.84%
Fines & Forfeits 115,000 95,000 (20,000)-17.39%
Recreational Fees 256,500 298,400 41,900 16.34%
Miscellaneous Revenues 172,700 215,000 42,300 24.49%
Transfers In 3,500 3,500 0 0.00%
Enterprise Revenues 6,717,100 6,537,600 (179,500)-2.67%
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Total Internal Revenues 10,339,200 10,093,400 (245,800)-2.38%
Levy Sources:
Special Levies 282,507 180,942 (101,565)-35.95%
General Levy 12,037,927 12,883,897 845,970 7.03%
------------------------------------------------------------------------
Total Levy $12,320,434 $13,064,839 $744,405 6.04%
------------------------------------------------------------------------
Total Revenue Sources $22,659,634 $23,158,239 $498,605 2.20%
======================================
2019 GENERAL PROPERTY TAX LEVY PAYABLE 2020
GENERAL LEVY
GENERAL FUND $10,829,000
BUILDING CIP FUND $0
STREET CIP FUND $877,897
EQUIPMENT CIP FUND $640,000
INSURANCE FUND $425,000
PORT AUTHORITY OPERATING LEVY $112,000
-------------------------
TOTAL GENERAL LEVY $12,883,897
BONDED INDEBTEDNESS
G.O. PUBLIC FACILITY REFUNDING BONDS 2010B (Old 2001C) (Port Authority) (Authorized - $163,443)$0
G.O. IMPROVEMENT BONDS 2014A (Authorized - $0) $0
G.O. CAPITAL IMPROVEMENT PLAN (CIP) REFUNDING BONDS 2015B (Authorized - $180,941)$180,941
G.O. IMPROVEMENT BONDS 2017A (Authorized - $7,470) $0
G.O. IMPROVEMENT BONDS 2018A (Authorized - $0) $0
-------------------------
TOTAL BONDED INDEBTEDNESS $180,941
-------------------------
GRAND TOTAL 2019 PROPERTY TAX LEVY $13,064,838
==============
Last Updated 8/23/19
SPREAD LEVY COMPUTATIONAL WORKSHEET
(INCLUDING FIRE STATION LEVY)
(Proposed)
2017 2018 2019 2020
--------------------------------------------------------------------
Total Funding Requirements 20,223,056 21,775,081 22,659,634 23,158,239
Less: Internal Revenues 8,795,600 9,900,300 10,339,200 10,093,400
--------------------------------------------------------------------
Equals: Revenues Needed 11,427,456 11,874,781 12,320,434 13,064,839
County Auditor Adjustments (All Subtractions):
Fiscal Disparities Distribution Levy (Metro Area)1,175,131 1,236,215 1,305,333 1,361,991 (2)
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Spread Levy Used to Compute Local Tax Rate 10,252,325 (1)10,638,566 (1)11,015,101 (1)11,702,848
Increase/(Decrease) from Previous Year in Spread Levy 3.77%3.54%6.24%
(1) Actual Spread Levy Based on Numbers from Dakota County
(2) 2020 Number Provided by Dakota County as of 8/12/19
Last Updated - 8/23/19
CITY OF ROSEMOUNT
WORKSHEET FOR ESTIMATING RESIDENTIAL PROPERTY TAXES (ISD #196 FIGURES)
(Rates Based on Proposed Preliminary Levy Numbers)
245,942 (Value After M/V Exclusion)265,017 (Value After M/V Exclusion)285,291 (Value After M/V Exclusion)(+7.67%)289,760 (Value After M/V Exclusion)
Market Value 259,800 (Payable 2018 Median)277,300 (Payable 2019 Median)295,900 (Est. Payable 2019 Median)(+6.71%)300,000
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Year 2018 2019 2020 Est. 2018 2019 2020 Est.2018 2019 2020 Est. 2018 2019 2020 Est.
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Tax Capacity 2,459 2,459 2,459 2,650 2,650 2,650 2,853 2,853 2,853 2,898 2,898 2,898
Tax Capacity Rates:
City 0.40961 0.39355 0.38582 0.40961 0.39355 0.38582 0.40961 0.39355 0.38582 0.40961 0.39355 0.38582
County 0.26580 0.25386 0.25386 0.26580 0.25386 0.25386 0.26580 0.25386 0.25386 0.26580 0.25386 0.25386
School District 0.21352 0.20613 0.20613 0.21352 0.20613 0.20613 0.21352 0.20613 0.20613 0.21352 0.20613 0.20613
Miscellaneous 0.04307 0.04227 0.04227 0.04307 0.04227 0.04227 0.04307 0.04227 0.04227 0.04307 0.04227 0.04227
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Totals 0.93200 0.89581 0.88808 0.93200 0.89581 0.88808 0.93200 0.89581 0.88808 0.93200 0.89581 0.88808
========================================================================================================================
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 0.0026715 0.0026715 0.0026144 0.0026715 0.0026715 0.0026144 0.0026715 0.0026715 0.0026144 0.0026715 0.0026715 0.0026144
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
2019 2020
Property Taxes:
City 1,007 968 949 1,086 1,043 1,022 1,169 1,123 1,101 1,187 1,140 1,118 City Taxes $1,043 $1,101
County 654 624 624 704 673 673 758 724 724 770 736 736 City Market Ref.$0 $0
School District 525 507 507 566 546 546 609 588 588 619 597 597 ----------------------------
Miscellaneous 106 104 104 114 112 112 123 121 121 125 122 122 Total Taxes - Median $1,043 $1,101
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Total Property Taxes 2,292 2,203 2,184 2,470 2,374 2,354 2,659 2,556 2,534 2,701 2,596 2,573 Increase / (Decrease)$58
City Market Referendum 0 0 0 0 0 0 0 0 0 0 0 0
ISD #196 Market Ref 694 694 679 741 741 725 790 790 774 801 801 784
Dakota County Ref 0 0 0 0 0 0 0 0 0 0 0 0
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Grand Total All Taxes $2,986 $2,897 $2,863 $3,211 $3,115 $3,079 $3,449 $3,346 $3,307 $3,502 $3,397 $3,358
========================================================================================================================
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)
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Year 2018 2019 2020 Est. 2018 2019 2020 Est.2015 2016 2017 2018 2019 2020 Est.
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Tax Capacity 3,443 3,443 3,443 4,140 4,140 4,140 (1.97% Decrease)
Tax Capacity Rates:
City 0.40961 0.39355 0.38582 0.40961 0.39355 0.38582 0.45152 0.43149 0.41832 0.40961 0.39355 0.38582 (1), (2)
County 0.26580 0.25386 0.25386 0.26580 0.25386 0.25386 0.29633 0.28570 0.28004 0.26580 0.25386 0.25386 (2)
School District 0.21352 0.20613 0.20613 0.21352 0.20613 0.20613 0.23271 0.24317 0.23336 0.21352 0.20613 0.20613 (2)
Miscellaneous 0.04307 0.04227 0.04227 0.04307 0.04227 0.04227 0.05033 0.05063 0.04907 0.04307 0.04227 0.04227 (2)
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Totals 0.93200 0.89581 0.88808 0.93200 0.89581 0.88808 1.03089 1.01099 0.98079 0.93200 0.89581 0.88808
========================================================================================================================
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 0.0026715 0.0026715 0.0026144 0.0026715 0.0026715 0.0026144 0.0025484 0.0026999 0.0027380 0.0026715 0.0026715 0.0026144 (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 1,410 1,355 1,328 1,696 1,629 1,597 Net Tax Capacity Percentages
County 915 874 874 1,100 1,051 1,051 For Residential Homesteads:
School District 735 710 710 884 853 853
Miscellaneous 148 146 146 178 175 175 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 3,209 3,084 3,057 3,858 3,709 3,677
City Market Referendum 0 0 0 0 0 0
ISD #196 Market Ref 935 935 915 1,106 1,106 1,082 (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)
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Grand Total All Taxes $4,144 $4,019 $3,972 $4,964 $4,815 $4,759
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(1) This Figure Derived Using Figures Provided by Dakota County:
(a) 2019 Projected Levy Less Fiscal Disparities as of 8/23/19 11,702,848 /30,332,367 =0.38582
(b) Preliminary Net Tax Capacity Figure as of 8/5/19 (With M/V Exclusion)34,206,164 (7.83% Increase from Final Pay 2019)
(c) Captured Tax Increment Tax Capacity as of 7/31/19 (973,095) (0.01% Increase from Final Pay 2019)
(d) Contribution to Fiscal Disparities as of 6/10/19 (2,900,702) (5.09% Increase from Final Pay 2019)
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Last Updated - 8/23/19 (2) These Figures Provided by Dakota County as of 10/xx/19 30,332,367
(For 2013 and on the City of Rosemount does not have a Referendum Levy)