HomeMy WebLinkAbout2012-05-16 PACKET 12.A.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 5/16/12 Z.,4
PREPARED BY Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
COUNCIL ACTION REQUEST
2013/2014 Budget direction Workshop
STAFF RECOMMENDATION
2013/2014 Budget direction Workshop
BUDGET IMPLICATION N/A
BUDGETED AMOUNT
ADVISORY COMMISSION ACTION
❑ PLANNING
❑ PUBLIC SAFETY
❑ PUBLIC WORKS
❑ PARKS AND RECREATION
❑ HUMAN SERVICES /RIGHTS
❑ ECONOMIC DEV. AUTHORITY
SUPPORTING DOCUMENTS
DATE
❑ MEMO /LETTER:
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
REVIEWED
El
El
El
El
El
N/A
ACTUAL AMOUNT
APPROVED
DENIED
❑
❑
❑
❑
❑
❑
❑
❑
❑
❑
El
El
❑
❑
ADMINISTRATORS COMMENTS f `
fa
City Administrator Date
COUNCIL ACTION TAKEN: []APPROVED ❑ DENIED ❑ OTHER
H: \Council items \City Council Action Fornn.doc
City of Cottage Grove
Finance Department
To: Honorable Mayor and City Council Members
Ryan Schroeder, City Administrator
From: Robin Roland, Finance Director
Date: May 11, 2012
Subject: 2013 and 2014 Budget direction workshop
We are embarking on the annual budget process for the coming two year cycle. This workshop will
address Council direction and targets which in turn will guide department heads and city staff in the
preparation of the 2013/2014 proposed budget and tax levy.
For the 2012 budget, Council's guidance was that the levy remain unchanged from the amount levied for
2011 and that the City's tax extension rate would continue to be at the "mean" tax extension rate of the
36 cities to whom we compare ourselves.
The following chart reflects amounts to be required to be levied for debt and other projections for
2013/2014.
General Levies
Adopted
Adopted
1
Adopted
1
Proposed
1
Proposed
1
201
2011
2012
2013
2014
General Fund $ 10,213,300 $ 10,345,100 $ 10,929,100 $ 10,827,550 $ 11,152,377
MVHC unallotment
Park shelter replacement/Landscape initiative
Future Municipal buildings
Economic development
Debt reduction
Future Pavement Mgmt
Total levy subject to limit
10,903,300
11,035,100
11,035,100
10,995,650
11,320,477
Debt Levies
Ice Arena expansion bonds
240,000
240,000
240,000
240,000
240,000
Debt service mitigation
346,400
Public Safety /City Hall interfund loan
500,400
550,000
550,000
Pavement Mgmt 2008
180,000
175,050
175,700
175,000
175,000
Pavement Mgmt 2000
29,306
41,000
142,245
199,000
Pavement Mgmt 2002c
334,894
403,700
Pavement Mgmt 2003b
232,300
Pavement Mgmt 2002b
235,200
Pavement Mgmt 2010/2011
147,805
81,600
81,000
Total debt levy
1,251,700
1,206,150
1,206,150
1,245,600
1,046,000
Total Gross levy
12,155,000
12,241,250
12,241,250
12,241,250
12,366,477
584,000 584,000
30,000 30,000
30,000 30,000
106,000 106,000 106,000 108,100 108,100
Change in Gross levy -2.34% 0.71% 0.00% 0.00% 1.02%
The chart below reflects Washington County's "first glance" estimate for Pay 2013 tax capacity value as
a decline of 7% for residential and commercial /industrial properties.
Property Value for Property Value for ( Property Value for Estimated Property
Taxes Collectable Taxes Collectable Taxes Collectable Value for Taxes
2010 2011 2012 Collectable 2013
rket value $ 2,924,191,800 $ 2,756,698,100 $ 2,724,906,400 $
Taxable property value
Real estate
31,787,711
29,219,126
26,854,070
24,972,416
Personal Property
502,282
550,999
572,740
572,740
Total property value
32,289,993
29,770,125
27,426,810
25,545,156
less: Tax Increment project
%Change
Capacity
Rate
City Tax
valuations
(1,322,866)
(913,350)
(960,577)
(790,634)
Subtotal - City
30,967,127
28,856,775
26,466,233
24,754,522
less: Fiscal Disparity
2,118
0,3917
829.62
1.24 %
contribution value
(2,239,313)
(2,191,320)
(2,053,300)
(2,053,300)
Net Tax Capacity value
28,727,814
26,665,455
24,412,933
22,701,222
add: Fiscal Disparity distribution 5,830,239 5
Total Tax Capacity 34,558,053 32,545,440 30,292,918 28,581,207
Tax Capacity Rate
12,155,000
12,241,250
12,241,250
12, 241,250
Fiscal Disparties (2,015,782)
(2,078,077)
(2,126,696)
(2,126,696)
Net Levy 10,139,218
10,163,173
10,114,554
10,114,554
by Net Tax Capacity 28,727,814 26,556,282 24,412,933 22,701,222
Tax Capacity Rate
35.29% 38.27% 41.43%
Although the tax capacity (tax extension) rate reflects an increase for the 2013 scenario, the total levy
amount is unchanged for 2013. Under the current statutes, the property tax on an 'average' property in
Cottage Grove is estimated as follows:
CAMA
Market
Tax
Urban Tax
Year
Value
%Change
Capacity
Rate
City Tax
%Change
2004
187,700
9.38%
1,877
0.4366
819.44
13.49%
2005"
211,800
12.84%
2,118
0,3917
829.62
1.24 %
2006
222,000
4.82%
2,220
0.3793
841.94
1.48%
2007
239,900
806%
2,399
0.3581
85915':
2.05%
2008
244,300
1.83%
2,443
0.3519
859.67
0.06%
2009':
243,900
- 0.16%
2,439
03463
844.67
-1.74%
2010
228,000
-6.52%
2,280
0.3542
807.47
-4.40%
2011
207,400
-9.04%
2,074
0.3825'
793.31
- 1.75%
2012
205,000
-116%
1,862
0.4142
771.24
-2.78%
2013
190,650
- 7.00%
1,712
0.4456
76287
- 1,09 %d
Staff's projection in 2011 that, given the continued erosion of LGA and the replacement of
MVHC with the Market Value exemption, in addition to the continued decline of market values
across the seven county metro area, all cities in our peer group would show stable or increased
tax rates in 2012, turned out to be an accurate one. Cottage Grove's tax rate continues to be
less than the mean (average) for the comparison cities.
Continued moderation of the tax levy rate in relation to peer cities is reflected in the following
chart.
Tax Rate Comparison Metro Cities 17,000 to 60,000 population
City nacre
2011 Tax
Rate
2012 Tax
Rate
%change
City name
2011 Tax
Rate
2012 Tax
Rate
%change
Edina
24.66
2E.25
6.45 ° !o
Inver Grove Heigh
43.17
44.88
3.96%
Minnetonka
33.51
35.38
5.58%
Fridley
36.99
39.62
7.11%
Eden Prairie
31.03
33.04
6.48%
White Bear Lake
17.70
19.94
12.66%
Golden Valley 1
53.06
55.80 1
5.16%
Oakdale
35.87
39.25
9.42%
Chanhassen
26.60
28.53
7.26%
Apple Valley
42.39
4411
4.06%
Nlaple Grove
36.71
39.45
7.46%
Andover
38.41
42.09
9.58%
Woodbury
34.92
35.92
2.86%
Cottage Grove
38.25
41.45
8.37%
Roseville
29.76
33.45
12.40%
Ramsey
39.80
44.17
10.98%
Prior Lake
30.71
29.74
- 3.16%
Richfield
54.98
60.81
10.60%
Shoreview
30.67
33.25
8.41%
Hastings
5510
66.08
19.71%
Shakopee
34.73
36.66
5.56%
New Hope
48.94
54.81
11.99%
Maplewood
39.05
44.06
12.83%
New Brighton
37.87
41.42
9.37%
St Louis Park
41.46
43.87
5.81%
Chaska
23.48
25.78
9.80%
Rosemount
44.66
46.99
5.22%
Champlin
39.21
41.20
5.08%
Lakeville
38.25
39.05
2.09%
Crystal
47.35
51.34
8.43%
Savage
48.28
51.12
5.88%
South St Paul
48.37
56.47
16.75%
Lino Lakes
42.04
42.89
2.02%
Anoka
43.02
50.37
17.09%
Blaine
32.80
33.56
2.32%
Brooklyn Center
57.22
64.36
12.48%
Averages
38.92
42.14
8.28%
As we did last year at the workshop, we will use the Five year Financial Management model to
show the impacts of changes in tax levy and other revenue, debt service requirements and
capital projects.
Staff seeks specific direction on the 2013/2014 budget process in the following areas:
• Rate of tax levy growth
• Rate of general fund expenditure growth
• What capital projects need to be accounted for in the growth in the levy?
2013 Budget Calendar
Target Date
Responsible party
Action
May 16, 2012
Council
Discussion of budget
goals at workshop
May 17, 2012
Finance
Budget Kick -Off Meeting/
Distribute forms
June
Finance
Tax Revenue forecasts
June 18, 2012
Departments
Return forms to finance
June 19 — July 6
Budget team
Preliminary review
July 9 -10 -11
Budget team and
Review meetings
Departments
July i7, 2012
Budget team and
Final review meeting
Departments
July 25, 2012
Finance
Proposed Budget
Document to Council
August 1 & 15, 2012
Council
Budget workshops -
Council review &
comment
September 5, 2012
Council
Adopt preliminary levy
and budget
By September 15, 2012
Finance
Certify preliminary levy
and comment hearing
date
November 2012
County
Mails notice of proposed
property taxes for next
y ear taxes payable
December 5, 2012
Council
Conduct budget
comment meeting
December 19, 2012
Council
Adopt final budget and
lev
B December 29, 2012
Finance
Certify final lev
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:ITY OF COTTAGE GROVE
ANNUAL BUDGET
GENERALFUND
FUND SUMMARY
20
,HGTUAL
,
ACT
ACTUAL:
'ACTUAL:.:
ACTUAL
AD&Tb
1'R0Pb$EO,
REVENUES
Property Taxes
8,802,238
9,187,828
9,936,126
10,195,797
10,332,994
10,929,100
10,827,550
Othertaxes
9,494
13,489
33,512
5,156
14,984
19,500
19,500
Licenses & permits
1,013,351
1,029,559
683,204
753,468
593,272
669,450
693,450
Intergovernmental
1,589,977
857,604
767,217
675,033
668,209
583,750
559,750
Charges for services
1,003,526
1,006,587
838,089
1,158,858
879,211
883,750
896,510
Fines
223,463
224,807
192,169
201,559
193,676
201,000
201,000
Interest
330,244
256,338
100,947
65,279
84,706
60,000
60,000
Miscellaneous
128,143
931
379,351
46,331
71,539
54,450
54,450
Total Operating Revenue
13,100,436
12,669!36
12,930,615
13,101,481
12,838,591
13,401,000
13,312,210
EXPENDITURES
Mayor & Council
81,738
82,798
76,632
136,828
180,783
192,050
192,950
Administration
260,848
263,618
257,334
263,652
236,552
215,620
218,500
Clerk/Elections
142,454
177,738
130,405
169,837
146,061
192,475
197,555
Finance
357,686
375,734
369,466
421,897
429,863
458,785
466,405
Personnel
82,079
70,979
95,622
93,969
91
112,030
114,460
MIS
160,313
217,111
152,619
208,256
205,515
-
-
Professional Services
305,921
292,806
318,163
310,536
323,345
328,600
341,500
Community Programs
37,183
58,442
36,069
47,644
60,612
52,200
54,050
City Hall (building)
206,828
244,985
195,861
197,387
200,980
230,450
289,570
Planning
788,811
894,642
714,551
705,667
437,805
414,830
416,085
Inspections
ind planning
incl. planning
388,189
426,460
448,800
439,230
447,315
Historic preservation
21,737
6,375
4,911
3,846
4,944
13,500
13,700
Emergency Preparedness
38,267
30,731
42,910
40,068
67,333
67,320
42,920
Police Protection
4,493,074
4,538,694
4,500,041
4,690,985
4,938,684
5,099,800
5,217,540
Animal Control
78,445
76,348
90,830
70,049
62,500
79,950
80,750
Fire
746,537
611,581
609,887
632,311
746,616
734,175
714,585
Fire relief
163,468
140,322
122,921
130,351
125,671
123,000
123,000
Engineering
78,332
109,178
132,918
110,900
138,182
135,400
147,280
Street Maintenance
994,525
962,127
834,944
916,249
1,050,646
952,320
986,870
Street signs
163,348
151,945
165,560
165,192
169,626
189,220
187,120
Snow removal
380,107
474,235
419,066
523,938
470,230
515,000
517,100
Public Works Admin
358,994
378,723
380,844
385,989
385,984
352,895
364,035
Forestry
109,743
190,461
135,000
389,857
308,683
339,470
344,420
Parks maintenance
1,045,617
957,687
937,722
993,960
1,260,680
1,023,905
1,115,250
Recreation
309,932
336,476
319,015
303,621
299,238
332,180
338,305
Pool
48,556
85,037
67,875
69,482
62,435
-
-
Transfers out per budget
500,540
467,040
480,040
437,045
310,915
456,700
432,300
Contingency
1
10,000
13,799
Total Expenditures
11,955,083
12,195,813
1 11,979,395
12,845,976
13,163,815
13,051,105
13,377,364
Net Revenues over Expenditures
1,145,353
473,552
951,220
255,505
(325,224)
349,895
(65,154)
Transfers in (out):
Transfers per fund balance policy
(607,058)
(37,631)
(645,432)
(247T950)
Carry forward fund balance
(349,895)
Use of fund balance
65,154
(607,058)
(37,631)
(645,432)
(247,950)
-
(349,895)
- 65,154
Total transfers
Beginning Fund Balance
7,851,581
8,389,876
8,825,797
9,131,585
9,139,140
8,813,916
8,813,916
Ending Fund Balance
8,389,876
8,825,797
9,131,585
9,139,140
8,813,916
8,813,916
8,813,916