HomeMy WebLinkAbout2.b. 2021 Budget Update
EXECUTIVE SUMMARY
City Council Work Session: November 4, 2020
AGENDA ITEM: Update on 2021 Budget AGENDA SECTION:
Discussion
PREPARED BY: Logan Martin, City Administrator
Jeff May, Finance Director AGENDA NO. 2.b.
ATTACHMENTS: Summary pages of 2021 Budget APPROVED BY: LJM
RECOMMENDED ACTION: Receive update on 2021 Budget prior to final authorization in
December
BACKGROUND
The City established its Preliminary Levy at the September 15 meeting, and work has continued on the
Budget prior to final authorization on December 1. As Council will recall, the maximum property tax levy
was established at 3.53% ($457,300). That figure remains unchanged and is not anticipated to be lowered
upon final authorization.
The only change affecting the Budget since the last discussions were had is in relation to the City’s health
insurance renewal costs. Despite our efforts to receive competitive bids from numerous providers, the City’s
health insurance costs are increasing 18% in 2021. A number of factors impact this change, including the
City’s claim history and the market-wide adjustments from the “pool” of groups that we are a part of. An
increase of 8% was budgeted for, so additional funding from the City’s Health Insurance Fund will be utilized
to fund the difference and no impact to the levy will be experienced.
This change is reflected in the increase to the City’s operating budget, which is now increasing 2.21% as
compared to 1.23% in the last draft.
On a positive note, the City’s tax capacity increased further from preliminary amounts, rising to 7.76% as
compared to 7.15% in September. Also, countywide tax rates have been released and Rosemount’s 4.57%
reduction in tax rate is the largest reduction of any city, and slightly behind Dakota County’s 6.14% reduction
in rate. These two figures nominally reduced the potential levy increased on a median valued home to $33,
down from $34. As a reminder, that increase is predicated on the home experiencing a 7% increase in its
value.
RECOMMENDATION
Staff requests the City Council provide direction on any needed modifications to the draft 2021 Budget.
FUNDING REQUIREMENTS - USES
December 1, 2020
2020 2021
Adopted Proposed +/-
Departments Budget Budget Difference Percentage
-----------------------------------------------------------------------------------------------------------------------------------
Council Budget $341,600 $332,000 ($9,600)-2.81%
Administration Budget 719,900 763,600 43,700 6.07%
Elections Budget 62,300 20,000 (42,300)-67.90%
Finance Budget 665,600 705,000 39,400 5.92%
General Government Budget 373,900 355,300 (18,600)-4.97%
Community Development Budget 1,247,000 1,231,900 (15,100)-1.21%
Police Budget 4,640,000 5,002,800 362,800 7.82%
Fire Budget 484,500 525,700 41,200 8.50%
Public Works Operating Budgets:
Government Buildings Budget 653,300 587,200 (66,100)-10.12%
Fleet Maintenance Budget 633,100 676,800 43,700 6.90%
Street Maintenance Budget 1,479,900 1,418,700 (61,200)-4.14%
Parks Maintenance Budget 1,177,600 1,075,300 (102,300)-8.69%
Park & Rec Budget - General Operating 1,462,000 1,555,900 93,900 6.42%
Park & Rec Budget - Steeple Ctr. Operations 149,200 158,200 9,000 6.03%
Park & Rec Budget - Special Programs 87,600 85,600 (2,000)-2.28%
Transfers - Arena Assistance 130,000 130,000 0 0.00%-----------------------------------------------------------------------
Total Operating Budgets - General Fund $14,307,500 $14,624,000 $316,500 2.21%
Building CIP Requirements 0 0 0 0.00%
Street CIP Requirements 877,897 904,234 26,337 3.00%
Equipment CIP Requirements 640,000 813,200 173,200 27.06%
Insurance Budget Requirements 425,000 450,000 25,000 5.88%
Port Authority Operating Levy 112,000 168,000 56,000 50.00%
Bonded Indebtedness 180,941 177,004 (3,937)-2.18%
Water Enterprise Fund 1,679,800 1,663,000 (16,800)-1.00%
Sewer Enterprise Fund 2,627,300 2,630,000 2,700 0.10%
Storm Water Enterprise Fund 1,322,700 1,428,700 106,000 8.01%
Street Light Utility Fund 220,000 220,000 0 0.00%
Arena Enterprise Fund 654,400 580,500 (73,900)-11.29%-----------------------------------------------------------------------
Total Funding Requirements $23,047,538 $23,658,638 $611,100 2.65%=======================================
FUNDING REQUIREMENTS - SOURCES
December 1, 2020
2020 2021
Adopted Proposed +/-
Types Budget Budget Difference Percentage
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Internal Revenue Generated:
Licenses and Permits 800,300 833,000 32,700 4.09%
Intergovernmental 1,104,800 1,135,400 30,600 2.77%
Charges for Services 1,058,800 1,037,300 (21,500)-2.03%
Fines & Forfeits 95,000 95,000 0 0.00%
Recreational Fees 298,400 296,400 (2,000)-0.67%
Miscellaneous Revenues 215,000 311,000 96,000 44.65%
Transfers In 3,500 3,500 0 0.00%
Enterprise Revenues 6,504,200 6,522,200 18,000 0.28%
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Total Internal Revenues 10,080,000 10,233,800 153,800 1.53%
Levy Sources:
Special Levies 180,941 177,004 (3,937)-2.18%
General Levy 12,786,597 13,247,834 461,237 3.61%
------------------------------------------------------------------------
Total Levy $12,967,538 $13,424,838 $457,300 3.53%
------------------------------------------------------------------------
Total Revenue Sources $23,047,538 $23,658,638 $611,100 2.65%
======================================
2020 GENERAL PROPERTY TAX LEVY PAYABLE 2021
GENERAL LEVY
GENERAL FUND $10,912,400
BUILDING CIP FUND $0
STREET CIP FUND $904,234
EQUIPMENT CIP FUND $813,200
INSURANCE FUND $450,000
PORT AUTHORITY OPERATING LEVY $168,000
-------------------------
TOTAL GENERAL LEVY $13,247,834
BONDED INDEBTEDNESS
G.O. IMPROVEMENT BONDS 2014A (Authorized - $0) $0
G.O. CAPITAL IMPROVEMENT PLAN (CIP) REFUNDING BONDS 2015B (Authorized - $177,004)$177,004
G.O. IMPROVEMENT BONDS 2017A (Authorized - $5,947) $0
G.O. IMPROVEMENT BONDS 2018A (Authorized - $0) $0
-------------------------
TOTAL BONDED INDEBTEDNESS $177,004
-------------------------
GRAND TOTAL 2020 PROPERTY TAX LEVY $13,424,838
==============
Last Updated 10/13/20
SPREAD LEVY COMPUTATIONAL WORKSHEET
(INCLUDING FIRE STATION LEVY)
(Proposed)
2018 2019 2020 2021
--------------------------------------------------------------------
Total Funding Requirements 21,775,081 22,659,634 23,047,538 23,658,638
Less: Internal Revenues 9,900,300 10,339,200 10,080,000 10,233,800
--------------------------------------------------------------------
Equals: Revenues Needed 11,874,781 12,320,434 12,967,538 13,424,838
County Auditor Adjustments (All Subtractions):
Fiscal Disparities Distribution Levy (Metro Area)1,236,215 1,305,333 1,361,991 1,461,128 (2)
--------------------------------------------------------------------
Spread Levy Used to Compute Local Tax Rate 10,638,566 (1)11,015,101 (1)11,605,547 (1)11,963,710
Increase/(Decrease) from Previous Year in Spread Levy 3.54%5.36%3.09%
(1) Actual Spread Levy Based on Numbers from Dakota County
(2) 2021 Number Provided by Dakota County as of 8/21/20
Last Updated - 10/13/20
CITY OF ROSEMOUNT
WORKSHEET FOR ESTIMATING RESIDENTIAL PROPERTY TAXES (ISD #196 FIGURES)
(Rates Based on Proposed Preliminary Levy Numbers)
265,017 (Value After M/V Exclusion)283,220 (Value After M/V Exclusion)305,674 (Value After M/V Exclusion)344,260 (Value After M/V Exclusion)
Market Value 277,300 (Payable 2019 Median)294,000 (Payable 2020 Median)314,600 (Est. Payable 2021 Median)(+7.01%)350,000
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Year 2019 2020 2021 Est. 2019 2020 2021 Est.2019 2020 2021 Est. 2019 2020 2021 Est.
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Tax Capacity 2,650 2,650 2,650 2,832 2,832 2,832 3,057 3,057 3,057 3,443 3,443 3,443
Tax Capacity Rates:
City 0.39355 0.38580 0.36818 0.39355 0.38580 0.36818 0.39355 0.38580 0.36818 0.39355 0.38580 0.36818
County 0.25386 0.24133 0.24133 0.25386 0.24133 0.24133 0.25386 0.24133 0.24133 0.25386 0.24133 0.24133
School District 0.20613 0.19860 0.19860 0.20613 0.19860 0.19860 0.20613 0.19860 0.19860 0.20613 0.19860 0.19860
Miscellaneous 0.04227 0.04030 0.04030 0.04227 0.04030 0.04030 0.04227 0.04030 0.04030 0.04227 0.04030 0.04030
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Totals 0.89581 0.86603 0.84841 0.89581 0.86603 0.84841 0.89581 0.86603 0.84841 0.89581 0.86603 0.84841
========================================================================================================================
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 0.0026162 0.0034367 0.0034367 0.0026162 0.0034367 0.0034367 0.0026162 0.0034367 0.0034367 0.0026162 0.0034367 0.0034367
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
2020 2021
Property Taxes:
City 1,043 1,022 976 1,115 1,093 1,043 1,203 1,179 1,125 1,355 1,328 1,267 City Taxes $1,093 $1,125
County 673 640 640 719 683 683 776 738 738 874 831 831 City Market Ref.$0 $0
School District 546 526 526 584 562 562 630 607 607 710 684 684 ----------------------------
Miscellaneous 112 107 107 120 114 114 129 123 123 146 139 139 Total Taxes - Median $1,093 $1,125
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Total Property Taxes 2,374 2,295 2,248 2,537 2,453 2,403 2,738 2,647 2,593 3,084 2,981 2,921 Increase / (Decrease)$33
City Market Referendum 0 0 0 0 0 0 0 0 0 0 0 0
ISD #196 Market Ref 725 953 953 769 1,010 1,010 823 1,081 1,081 916 1,203 1,203
Dakota County Ref 0 0 0 0 0 0 0 0 0 0 0 0
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Grand Total All Taxes $3,100 $3,248 $3,201 $3,306 $3,463 $3,413 $3,561 $3,728 $3,675 $4,000 $4,184 $4,124
========================================================================================================================
371,510 (Value After M/V Exclusion)414,000 (Value After M/V Exclusion)
Market Value 375,000 414,000 History of Actual Tax Capacity Rates (Using ISD #196 Rates)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Year 2019 2020 2021 Est. 2019 2020 2021 Est.2016 2017 2018 2019 2020 2021 Est.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Tax Capacity 3,715 3,715 3,715 4,140 4,140 4,140 (4.57% Decrease)
Tax Capacity Rates:
City 0.39355 0.38580 0.36818 0.39355 0.38580 0.36818 0.43149 0.41832 0.40961 0.39355 0.38580 0.36818 (1), (2)
County 0.25386 0.24133 0.24133 0.25386 0.24133 0.24133 0.28570 0.28004 0.26580 0.25386 0.24133 0.24133 (2)
School District 0.20613 0.19860 0.19860 0.20613 0.19860 0.19860 0.24317 0.23336 0.21352 0.20613 0.19860 0.19860 (2)
Miscellaneous 0.04227 0.04030 0.04030 0.04227 0.04030 0.04030 0.05063 0.04907 0.04307 0.04227 0.04030 0.04030 (2)
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Totals 0.89581 0.86603 0.84841 0.89581 0.86603 0.84841 1.01099 0.98079 0.93200 0.89581 0.86603 0.84841
========================================================================================================================
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 0.0026162 0.0034367 0.0034367 0.0026162 0.0034367 0.0034367 0.0026999 0.0027380 0.0026715 0.0026162 0.0034367 0.0034367 (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 1,462 1,433 1,368 1,629 1,597 1,524 Net Tax Capacity Percentages
County 943 897 897 1,051 999 999 For Residential Homesteads:
School District 766 738 738 853 822 822
Miscellaneous 157 150 150 175 167 167 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 3,328 3,217 3,152 3,709 3,585 3,512
City Market Referendum 0 0 0 0 0 0
ISD #196 Market Ref 981 1,289 1,289 1,083 1,423 1,423 (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 $4,309 $4,506 $4,441 $4,792 $5,008 $4,935
============================================================
(1) This Figure Derived Using Figures Provided by Dakota County:
(a) 2020 Projected Levy Less Fiscal Disparities as of 9/4/20 11,963,710 /32,494,511 =0.36818
(b) Preliminary Net Tax Capacity Figure as of 10/13/20 (With M/V Exclusion)36,738,996 (7.76% Increase from Final Pay 2020)
(c) Captured Tax Increment Tax Capacity as of 10/4/19 (1,295,351) (16.57% Increase from Final Pay 2020)
(d) Contribution to Fiscal Disparities as of 8/21/20 (2,949,134) (1.67% Increase from Final Pay 2020)
------------------
Last Updated - 10/13/20 (2) These Figures Provided by Dakota County as of 10/16/19 32,494,511
(For 2013 and on the City of Rosemount does not have a Referendum Levy)