HomeMy WebLinkAbout2015-12-02 PACKET 08.A. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM # �
DATE 12/2/15 • �'
PREPARED BY: Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
* * * * * * * * * * * * * * * * * :� � * :� * * * * * * * * * * * * * * * * * * * * * * * * * * *
COUNCIL ACTION REQUEST:
Consider approval of the Final 2016 Property Tax Levy. Consider approval of the 2016
Budget.
STAFF RECOMMENDATION:
Adopt resolution approving the Final 2016 Property Tax Levy. Adopt resolution approving the
2016 Budget.
BUDGET IMPLICATION:
BUDGETED AMOUNT ACTUAL AMOUNT
ADVISORY COMMISSION ACTION:
DATE REVIEWED APPROVED DENIED
❑ PLANNING ❑ ❑ ❑
❑ PUBLIC SAFETY ❑ ❑ ❑
❑ PUBLIC WORKS ❑ ❑ ❑
❑ PARKS AND RECREATION ❑ ❑ ❑
❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑
❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑
❑ ❑ ❑ ❑
SUPPORTING DOCUMENTS:
� MEMO/LETTER: Roland 11/25/15
� RESOLUTION: Levy, Budget
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS:
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� �G���:l ��f � .s"l S
�� City Administrator Date
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H:\Council items\council-action template.docx
Cottage
J Grove
�here Pride and P�OSPerity Meet
To: Mayor and City Council Members
Charlene Stevens, City Administrator
From: Robin Roland, Finance Director
Date: November 25, 2015
Subject: Adoption of Property Tax Levy for Taxes Payable in 2016
Adoption of 2016 Budget
Introduction
A preliminary tax levy for 2016 was adopted at the September 2, 2015 City Council meeting. The_,.,,
preliminary levy may not be increased but can be reduced prior to December 28th when the final levy is
required to be adopted.There have been no changes to the levy since the preliminary adoption in September.
The proposed levy was used by Washington County to prepare the notices of estimated property taxes that
were mailed to property tax owners in November. Those notices included the date of this tax levy and
budget meeting. A public hearing is not required, but Council has chosen to hear a presentation of the levy
and budget at this meeting and will receive any public comment on the levy and budget.
Property Tax Levy
For 2016, the proposed tax levy is $14,070,800 or 4.99%more than the 2015 levy. There is no levy limit
for 2016. General Fund revenues are estimated to increase by 4.1%and operating expenditures are proposed
to increase by 7.6%.
�� � ��� Adopted Adopted Adopted Preliminary Proposed
General Levies 2013 2014 2015 � 2016 2017 �
�r..._�_..,.,r,._-_n�.,,=t,��,u�.__�_�_�,.��„_.,..-,.«..�m_.,
GeneralFund $ 10,867,000 � $ 11,265,030 $ 11,915,100 � $ 12,569,300 � $ 12,981,400 �
pp ; ��.....�.....__....y........_.___ __.____...__�._._._._..._.._,___.___...____....__.._._.t{._....,....__._..___..._._.__......_
Futu ehMunci albuild'mLandsca emi�_�Y_.__.�i30000 �`_._._.._..M__.._�...J_._.__.__W_�_.__�___..____..____.m__.1.�.___.._._.._..e.._......_.....�
. .p g �i � � ;
-----------____.- ----j�------ -;- ----- -- ---- ---� --- ;
Economic development 108,100 ; 108,100 111,500� ll1,500 111,500 �
_���. ..� .,..,.. .�������—��-�.�L.�.r� . �_t��¢a -��,�.a. .-_ �_ � � _�a _ . ,__��,_�_�,s
Public Safety/City Hall interfund loan � 550,000 : 500,000 � 500,000 �� 500,0001 500,000 �
___.���,��,�.�,z.�_„_�._�..,.�___,�-�,ut_�-_F_,r.-.�m��___..,--. ,
11,585,100 = 11 873 130 12 526 600 ¢ 13 180 800 13 592 900
_ . � , � � __..�_�___�_.__, ,. �
-----___________.__---�_._______._�____.�__�_._�__-----:----_-------------- ----.--
Debt Levies : ( ---------- � --_--- ---------___._.___..._---
_�..�_......�.�_�_,u;.__m__._._.��T.._a�, !� ��...,._...��.._._...._.��r___..r_.m.� �._._T_..�.... . ..._.
Ice Arena e�ansion bonds 240,000 � 240,000 290,000 = 290,000 290,000 j
�_._ .�___ m
_�......._.........._._ _..T__...._._._._.,......._._____..� ..,.._..__._��...___..._._.�...____._�._.....�__.�� ... ..��....�.�._._.__,.._..............�__..,.._�-__.____._�.�..._......_�_....,
All Pavement Mgmt debt � 416,150 : 586,000 � T 585,500 � 600,000 � 890,000 ;
__-_..�,=,_.r=--=--t.n...r�.r .,,.,,,_=_,�_m.�:::..,.,-,_„_ �
Totaldebtlevy� 656,150 ; 826,000 � 875,500 � 890,000 i 1,180,000 i
.._..........-- --------..._...__....................................._......_..._.._........_.. -
Total Gross le I 12,241,250 j 12,699,130 13,402,100 i 14,070,800 14,772,900
___._W_.W...__..___.._�'�'_..�____..__ __.W_._.�l__��_�.__...�.._.._._,....,�.._..._......._._._._..._. ._.�__......,.__......_..____..�.__ ._.._�.._...�.�,..__.__.._._....__.__.WW_�..__
Change in Gross levy � 0.00%j 3.74% 5.54% 4.99% 4.99%
=�_4_.�_...�_�.�_���-_��----�_-_-----��-��---.-------�-------�--._�.�=..�.�=_���_��..___..�---��_��.��=�_�.__.�=�:��.-.---�-;�M�__�_�.yf.�.�l
CITY OF COTTAGE GROVE • 12800 Ravine Parkway • Cottage Grove, Minnesota 55016
www.cottage-grove.org • 651-458-2800 • Fax 651-458-2897 • Equal Opportunity Employer
The chart below reflects the proposed levies(over$lmillion)for other Washington County cities as adopted
in September. Note that the average change is an increase of 4.59%; Cottage Grove's increase is 4.99%.
The 2012-2016 average change for all cities in Washington County is an increase of 14.9%; Cottage Grove
has increased by 14.9% over the same period.
. __
Proposed % increase. '`
' Pay 2013 Pay 2014 � Pay 2015 Pay 2016 ; (decrease) '',
City Levy Levy Levy ' Levy in rate
Lake Elmo 3,163,359; '! 3,163,359' I 3,137,663 3,633,898� 15.82%
Afton 1,602,769� ; 1,634,824 ' 1,704,183' 1,926,467 13.04%a
'Forest Lake 7,163,901' I 8,039,421'' ' 8,350,000 8,961,015; 7.32%'
Stillwater � 10,406,507, '; 10,624,986 ' 11,371,253 12,072,367i 6.17%',
,Cottage Grove 12,241,250� �i 12,699,130' 13,402,100' 14,070,800; 4.99°/o
',Woodbury ' 28,603,229 '. 29,399,293' 30,238,368 31,566,212j 4.39%;
;Bayport 1,159,981 ; 1,159,981' 1,184,783 1,236,621I 4.38%
�Oak Park Heights 4,538,193 ! 4,784,896; ' 5,022,731' 5,191,593 3.36%',
Mahtomedi 3,231,393 3,399,916j 3,768,385 3,868,642! 2.66%
Newport 2,351,000 2,415,691 2,430,416 2,491,176; 2.50%,
0akdale � 9,879,444 10,088,705' ' 10,270,522 10,514,149 2.37%
IScandia ' 2,171,074 i 2,171,074 2,217,509' 2,257,871: 1.82%
�St. Paul Park � 1,872,241� i 1,942,659 �� 1,991,284: 2,006,188j OJ5%�
iHugo 4,749,083� � 4,940,809; ', 5,717,021 5,634,328�I -1.45%'
Average Change � ; 4.59%'
Preliminary Tax Rates
The City's estimated total net tax capacity value will increase by 3.0% in 2016; from $27,179,346 (2015)
to $27,999,915 (2016). The 4.99% increase in the levy, combined with the valuation increase will result in
an increase in the tax extension rate from 41.591% in 2015 to 43.128% in 2016.
Tax Extension Rates
46.00 43.81
43.13
44.00 41.42
42.00 38.90
40.00 .
38.00
36.00
34.00 .
32.00 35.19 34.64 �
30.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tax Payable Year
The following table is from Washington County and reflects the City tax on the "average"property for the I
last ten years. The"CAMA Marlcet Value"reflects the effect of valuation and tax rate changes on Cottage
Grove properties. (CAMA Market Value is Average Residential Market Value based on Computer Assisted
Mass Appraisal). This chart reflects the gross city tax generated,prior to the effect of any MVHC in years ,
prior to 2012. '
} CAMA i . _ , _ _ ,
� r i F
; Market Tax �Urban Tax.
` Year Value ; %Change � Capacity � Rate CityTax ; %Change ;
_.. __ ° _ _ ; _ � - � - -- � _ �. __ _�
� 2007 239,900�> 8.06%� 2,399; 0.3581; 859.15 i 2.05% I
2008 244,300� 1.83% 2,443� 0.3519 859.67 0.06%I '
� 2009 s 243,900� -0.16%�` 2,439� 0.3463� 844.67� -174°/a ;
3 2010 228,000 -6.52% ` 2,280 0.3542 807.47 ' -4.40%')
1 2011 � 207,400f -9.04°/a! 2,074j 0.3810 790.09� -2.15% i
3 � � i �
2012 204,000 -1.64% 1,851 0.4142 766.68 -2.96% �
; 2013 187,800; -7 94% 1,675� 0.4503 754.25z 1.62%
2014 196,100 4.42°/a ' 1,765 ' 0.4381 773.25 2.52%�
2015 219,800� 12 09%n 2,023� 0.4160j 841.57� 8.84%; �
2016 222,218 1.10% ; 2,049 0.4313 883.73 5.01%,� '
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2016 OPERATING BUDGETS
Gener�rl Funcl '
General Fund revenues are proposed to increase by 4.1%; and expenditures are proposed to increase by
7.6%for 2016 over 2015. The expenditure increase is primarily due to capital equipment expenses resulting �
from delayed replacement of several large, expensive pieces of equipment. i
,
Currently the general fund budget reflects a use of$513,850 in fund balance reserves for 2016. These '
reserves were set aside beginning in 2009 for use in offsetting the loss of Market Value Homestead Credit
at that time. These "assigned" reserves have been reviewed in the course of each year end. The one time i
use of funds will"buy down"the property tax levy for 2016. The 2017 budget is not in balance at this time
and will need to be resolved during next year's budget process. ,
The following items are of note: �
• Charges for services - both 2016 and 2017 reflect static administration and financing fees for
developments due to the anticipated level of development activity. i
• Intergovernmental-in 2014,the City received Local Government Aid(LGA)for the first time since �
2003. The 2016 allocation of$75,000 is an increase of$2,500 over 2015.
• Investment earnings- Investment earnings have been calculated at 0.75% for 2015 and 2016 to
reflect continuing low interest rates.
• Cost of Living Increases -The budgeted cost of living increase for salaries is 2.75% for 2016 and ;
2017. �
• Other Personnel Cost Changes -Budget amounts for health insurance reflect a 10% increase over
2015 and 15% increase for worlcers comp insurance. Statutorily determined PERA rates for 2016
for the both the Coordinated plan and the Police and Fire plan remain at 2015 levels. Current �
mandated employer contribution rates are 7.5% for those employees in the Co-ordinated plan and !
16.20%in the Police and Fire plan; employees contribute 7.25%and 10.8%to the respective plans.
�
• Fuel Allocation- The 2016 budget includes an assumption of $3.25 per galion for gasoline and
diesel. This is a decrease from the 2015 budget assumption of$3.60.
• Staffing — Changes to full time staffing include elimination of a Deputy Chief position in the ,
FireBMS budgets and the addition of an eighth and ninth full time Firefighter/Paramedic as '�
identified in the EMS transitional plan.
• Transfer to the Equipment Replacement Fund—the General fund transfer for capital equipment in �
2016 is $672,375 to assist in purchasing $855,890 of vehicles and equipment. ,
Special Revenue Func�s 'I
Seal Coatin�
An agreement reached with Xcel Energy decreased Franchise Fee revenues for the 15 month period October ��";
2014 to December 2015. Franchise fees will return to pre-October 2014 levels for 2016 and sealcoating ',
expenditures will return to historical norms. �I
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Ice Arena
Revenues are expected to remain constant through the 2016 budget. ,
In October 2014, the City Council approved a five year maintenance plan to address the minimum
improvements to the existing system to maintain the refrigeration plant. The plan called for $109,000 in �
expenses for 2015, $26,450 in 2016. The goal of this plan is to extend the life of the R22 coolant system ',
until after 2020. '
The City wi11 be issuing bonds to refund the Lease Revenue debt which financed the Ice Arena expansion I
in 2008. The refinancing will take place in January 2016 and is expected to reduce annual expenditures by
$100,000 each year for the next nine years thereby improving the Arena's financial operation.
Recvcling �,
The revenue is the recycling grant amount expected to be received from Washington County.
EDA and Economic Developinent Trust Funds ,
The EDA property levy continues at $111,500 for 2016. The EDA budget includes a full year of revenue ',
and expenditure impacts of the operation of the Business Enterprise Center (BEC). '�
Utilitv�nd Enterprise Funcls
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Storm Water Utility Fund ,
The rates are proposed to increase from $52.80 annually to $55.20 (or $0.20 per month) per residential
customer for 2016 and to $57.60 for 2017. These increases are necessary to maintain the viability of the
fund so the next five years of the storm water utility plan can be financed.
Water Fund �
The 2016 expenses include a new public service worlcer position to be shared with the Sewer fund. 2016
will be the fourth year of the water meter replacement program and the Water Fund budget also includes
expenses for the 2016 Pavement Management project.
�
Sewer Fund (
Met Council sewer services charges are increasing by 3% for 2016 and a similar increase is budgeted for �
2017. The 2016 and 2017 budgets include the shared public service worker position mentioned above and �'
capital outlay items from the respective pavement management projects for those years.
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Street Li�ht Fund ,
Street Light fees increased by 5 % annually beginning in 2015 to assure financial resources are available ',
for the replacement of streetlights as part of future pavement management projects. City owned Residential ''
streetlight charges will increase from 2015 rates of$2.57 plus $0.89 to the 2016 rate of$2.70 plus $0.94
per month.
Ambulance Fund
The budgeted 2016 revenue includes an increase of 3% in the rates. �
A change in staffing strategy which was adopted by the City Council in 2013 is in the final stage of �
implementation. This strategy provides for primary response by the Fire Division providing an ALS ,
ambulance and Paramedic services to the community; Police Officer/Paramedics respond for critical and ',
multiple EMS calls. Through 2015, the Fire/EMS division has hired seven (7) full-time
Firefighter/Paramedics, reducing the need for Police Officer/Paramedics. An eighth and ninth
Firefighter/Paramedic are included in the 2016 Budget. The elimination of a Deputy Chief position in
Fire/EMS operations and reduction of part time salaries will offset the costs of the ninth ,
Firefighter/Paramedic position. ',
Capit�rl Proiect Fun�ls
Equipment Replacement Fund ;
The budget document includes a five year equipment replacement plan totaling $3.5 Million, sorted by
funding source. A summary list of purchases by year is included totaling $855,890 for 2016 and$927,790 �
for 2017.
The 2016 equipment purchases include:
Forfeiture vehicle for Investigative Aid $ 100 '
Investigation Van 33,000 j
Squad for Captain 30,000
Squad coming out of service: Police Investigations 100
Pickup - Inspections 25,190
Tandem dump - Streets 255,000 ,
4WD utility vehicle with attachments 180,000
Replace equipment (loader,blower,tractor) - Parks 185,000
Aerial truck - Forestry 50,000
One ton pick-up - Parlcs 32,500 I
4WD pick-up 3/4 ton- Parks 32,500
4WD pick-up 3/4 ton- Streets 32,500 i
4WD picl�-up 3/4 ton-Parks 32,500
Pass down Forester picic-up (32,500)
$855,890
Rec�p of fees ancl tcrxes. '
Based on a$222,218 average (2016) value home charged for 9,000 gallons of water and 5,000 units of sanitary
sewer in a month would pay approximately $116.88 in property taxes, franchise fees and utility charges per
month. This is a monthly increase over 2015 of$2.29. �
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2016
Property Taxes(city Portion onry) $ 73.64 ',
Franchise Fees 3.30 �
Water Charge 13.20
Sewer Charge 17.50
Streetlight Fee w/maintenance 3.64 ',
Stormwater Fee 4.60
$ 115.88
ACTION REQUESTED ',
• Adopt the attached resolution adopting the final 2015 tax levy collectible in 2016. i
• Adopt the attached resolution adopting the 2016 budget for the City of Cottage Grove. Adoption of the
2016 budget will authorize purchase of the budgeted capital equipment from the General and Equipment '
Replacement Funds, including squads and inspection vehicles, Public Works and Parlcs trucics and I
equipment according to City Purchasing Policy.
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RESOLUTION NO. 15- I
RESOLUTION ADOPTING THE 2015 TAX LEVY i
COLLECTIBLE IN 2016
NOW THEREFORE BE IT RESOLVED, the City Council of the City of
Cottage Grove, County of Washington, State of Minnesota, that the following
amounts are to be levied for the current year, collectible in 2016, upon the taxable ,
property in the City of Cottage Grove for the following purposes: 'I
General Levy
General Fund $ 12,569,300 ,
PS/CH interFund loan 500,000 '
Economic Development 111,500
Subtotal General Levy 13,180,800
Debt Levies '
Ice Arena Expansion 290,000
Pavement Management - 08 150,000
Pavement Management - 2011 50,000
Pavement Management - 2013 300,000 '
Pavement Management - 2015 100,000
Subtotal Debt Levy 890,000
Total Property Tax Levy $ 14,070,800 ,
I
Passed this 2nd day of December, 2015. �
Myron Bailey, Mayor �
,
Attest:
Joe Fischbach, City Clerk
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RESOLUTION NO. 15- I
RESOLUTION ADOPTING A 2016 BUDGET ',
FOR THE CITY OF COTTAGE GROVE '
WHEREAS, the City Code of the City of Cottage Grove requires that a
recommended budget be provided annually to the City Council including projected ,
revenues and sources and all proposed expenditures to be made and obligations to be '',
incurred by the City in the forthcoming fiscal year; and
;
WHEREAS, the recommended 2016 budget has been reviewed by the City ,
Council at various public workshops and City Council meetings; and ',
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WHEREAS, existing law requires certification of the budget to the County Auditor i
by December 28, 2015.
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Cottage '
Grove, County of Washington, State of Minnesota, hereby certifies the proposed 2016
budget as follows:
Expenditure or ,
Revenues and Expense and
Transfers In Transfers Out �
�
General Fund $ 15,353,820 $ 15,870,120 '
Recycling 77,490 100,680 ,
Storm Water Utility 750,000 782,160
Forfeiture 29,500 34,120
Ice Arena 1,316,000 1,179,950 ,
Charitable Gambling - 5,000 ,
Economic Development Authority 271,000 408,075
River Oaks Golf 1,505,500 1,636,830
Equipment Replacement 783,375 855,890 �
Sealcoating 566,000 590,500
EDA Trust Fund 25,000 430,000
Parks Capital Projects 370,000 405,000
Water Operating 2,267,950 2,924,610 i
Sewer Operating 2,377,400 3,143,833 �
Street Lighting 791,270 1,385,180
Ambulance 1,568,000 1,672,610
Self Insurance 1,871,700 1,983,955
Fleet Service 1,133,900 1,129,745 !
Information Services 425,000 509,065 (
$ 31,482,905 $ 35,047,323
BE IT FURTHER RESOLVED, the Finance Director is hereby instructed to transmit a
certified copy of this resolution to the County Auditor of Washington County, Minnesota
by December 28, 2015,
Passed this 2nd day of December 2015.
Myron Bailey, Mayor
Attest:
Joe Fischbach, City Clerk