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City Council Agenda Packet 09-28-2015 Special
AGENDA SPECIALWORKSHOPMEETING–MONTICELLOCITYCOUNCIL Monday,September28,2015–6:00p.m. MonticelloCommunityCenter Mayor:BrianStumpf CouncilMembers:CharlotteGabler,LloydHilgart,TomPerrault,GlenPosusta Others:WayneOberg,JeffO’Neill,DepartmentHeads 1.CalltoOrder 2.PurposeofWorkshop:BudgetWorkshop 3.Adjournment 2016 Preliminary Tax Levy September 28, 2015 Wright County Tax Rates 2 Property Tax Dependence 3 GF Budget Increases 1.Election -$20,000 2.Refuse & recycling -$31,000 3.PW director -$72,000 (119,000) 4.Building inspector -$72,000 5.Wage increase $109,000 (step + market adj.) Total: $304,000 FD Levy Recommendation 5 2013 2014 2015 2016 Property Property Property Property %$$ Fund Taxes Taxes Taxes Taxes Change Change General Fund $5,540,000 $5,882,000 $5,882,000 $6,171,000 4.9%$289,000 Community Center - Operating 295,000 350,000 358,000 364,000 1.7%6,000 Community Center - Debt 875,000 1,013,000 1,005,000 - -100.0%(1,005,000) 2014 GO Judgment Bonds - - - $544,000 ---544,000 2015/16 Street Bonds*- - - $550,000 ---550,000 2005A/2011A GO IBF 245,000 330,000 330,000 330,000 0.0%- 2007A GO IBF 425,000 420,000 420,000 420,000 0.0%- 2008A GO Sewer Refunding 500,000 500,000 500,000 500,000 0.0%- 2010A GO IBF 20,000 40,000 40,000 40,000 0.0%- Total $7,900,000 $8,535,000 $8,535,000 $8,919,000 4.5%$384,000 FD Levy Recommendation 6 Tax Levy Information 7 Tax Capacity –Values & Rates 8 Schedule of Tax Capacity (Values and Rates) and Tax Levy Tax Capacity Tax Capacity Tax TC Value TC Rate Levy Year Value Rate Levy Change %Change %Change % 2000 13,066,057$ 36.272 4,739,325$ -0.4%3.1%2.6% 2001 13,641,431$ 37.146 5,067,342$ 4.4%2.4%6.9% 2002 9,606,212$ 67.645 6,498,079$ -29.6%82.1%28.2% 2003 10,344,950$ 65.218 6,782,018$ 7.7%-3.6%4.4% 2004 11,141,052$ 62.421 6,957,915$ 7.7%-4.3%2.6% 2005 11,840,000$ 58.651 6,957,915$ 6.3%-6.0%0.0% 2006 13,224,144$ 51.028 6,750,000$ 11.7%-13.0%-3.0% 2007 15,257,996$ 42.458 6,500,000$ 15.4%-16.8%-3.7% 2008 16,190,597$ 46.942 7,600,000$ 6.1%10.6%16.9% 2009 16,783,843$ 46.191 7,750,000$ 3.7%-1.6%2.0% 2010 16,691,266$ 45.822 7,648,272$ -0.6%-0.8%-1.3% 2011 16,429,431$ 46.729 7,677,309$ -1.6%2.0%0.4% 2012 15,771,688$ 49.773 7,850,000$ -4.0%6.5%2.2% 2013 18,692,762$ 42.262 7,900,000$ 18.5%-15.1%0.6% 2014 18,229,025$ 44.709 8,150,000$ -2.5%5.8%3.2% 2015 23,882,689$ 35.737 8,535,000$ 31.0%-20.1%4.7% 2016 25,869,170$ 34.477 8,919,000$ 8.3%-3.5%4.5% Tax Capacity –Values & Rates 9 Levy Target 10 Tax Property Tax Add to Tax Tax Rate Capacity Levy Levy Rate Chg% 25,869,170$ 8,535,000$ 32.993 -7.7% 8,735,000$ 200,000$ 33.766 -5.5% Proposed 8,919,000$ 384,000$ 34.477 -3.5% 8,935,000$ 400,000$ 34.539 -3.4% 9,135,000$ 600,000$ 35.312 -1.2% + HRA 9,199,000$ 664,000$ 35.560 -0.5% 9,335,000$ 800,000$ 36.085 1.0% 9,535,000$ 1,000,000$ 36.859 3.1% Tax Levy (What If) 11 SUMMARY OF WHAT IF TAX LEVIES What IF 8,535,000$ 8,919,000$ 9,199,000$ Proposed +HRA RESIDENTIAL 2012 2013 2014 2015 2016 2016 Market Value Net Tax Net Tax Net Tax Net Tax Net Tax Net Tax $135,000 $547 $465 $491 $393 $379 $391 $175,000 $764 $649 $686 $549 $529 $546 $200,000 $900 $764 $808 $645 $623 $643 $225,000 $1,035 $879 $930 $743 $717 $740 $250,000 $1,171 $994 $1,052 $841 $811 $837 $275,000 $1,307 $1,109 $1,174 $938 $905 $933 $300,000 $1,442 $1,225 $1,295 $1,036 $999 $1,030 COMMERCIAL/INDUSTRIAL 2012 2013 2014 2015 2016 2016 Market Value Net Tax Net Tax Net Tax Net Tax Net Tax Net Tax $100,000 $747 $634 $671 $536 $517 $533 $300,000 $2,613 $2,219 $2,347 $1,876 $1,810 $1,867 $500,000 $4,604 $3,909 $4,136 $3,306 $3,189 $3,289 $1,000,000 $9,581 $8,136 $8,606 $6,879 $6,637 $6,845 $3,000,000 $29,490 $25,040 $26,490 $21,174 $20,428 $21,069 What-if Adjusted (Guess) 12 SUMMARY OF CITY PROPERTY TAX LEVY RESIDENTIAL 2015 What IF Incremental Market Value Est Net Tax Net Tax Difference Impact Flat Levy $135,000 $393 $395 $3 $33 -$30 $175,000 $549 $552 $4 $46 -$42 $200,000 $645 $650 $5 $54 -$49 $225,000 $743 $748 $5 $62 -$57 $250,000 $841 $846 $6 $70 -$64 $275,000 $938 $944 $6 $78 -$72 $300,000 $1,035 $1,042 $7 $86 -$79 COMMERCIAL/INDUSTRIAL 2015 What IF Incremental Market Value Net Tax Net Tax Difference Impact Difference $100,000 $536 $540 $4 $45 -$41 $300,000 $1,876 $1,889 $13 $157 -$144 $500,000 $3,306 $3,328 $22 $276 -$254 $1,000,000 $6,879 $6,926 $47 $574 -$528 $3,000,000 $21,174 $21,316 $142 $1,768 -$1,626 Debt Service Levy 13 Questions/Comments 14 Small Tools & Equipment 15 Small Tools & Equipment Stump Grinder Skid Steere Attachment 5,300$ Brush Buster Rotory Mower Skid Steere Attachment 7,500$ Pick-up Broom Skid Steere Attachment 8,500$ Snowblower Skid Steere Attachment 7,500$ 5" Channel Buggy Hauler 6,250$ Tool cat skid loader earth auger 1,600$ Skid loader broom 4,500$ Pallet forks for Skid loader 1,100$ Wage & Benefits 16 GF Budget by Function 17 GF Budget by Classification 18 Levy & CPI 19 Schedule of Tax Levies 2003-2016 Increase/Percent Percent Levy with Year Actual Levy (Decrease)Change CPI Diff CPI Levy Difference 2003 6,782,018$ 283,939$ 4.4%1.9%2.5%6,621,543$ 160,475$ 2004 6,957,915$ 175,897$ 2.6%2.4%0.2%6,780,460$ 177,455$ 2005 6,957,915$ -$ 0.0%3.2%-3.2%6,997,435$ (39,520)$ 2006 6,750,000$ (207,915)$ -3.0%2.4%-5.4%7,165,373$ (415,373)$ 2007 6,500,000$ (250,000)$ -3.7%2.7%-6.4%7,358,838$ (858,838)$ 2008 7,600,000$ 1,100,000$ 16.9%3.7%13.2%7,631,115$ (31,115)$ 2009 7,750,000$ 150,000$ 2.0%-0.6%2.6%7,585,329$ 164,671$ 2010 7,648,272$ (101,728)$ -1.3%2.0%-3.3%7,737,035$ (88,763)$ 2011 7,667,309$ 19,037$ 0.2%3.2%-3.0%7,984,620$ (317,311)$ 2012 7,850,000$ 182,691$ 2.4%2.0%0.4%8,144,313$ (294,313)$ 2013 7,900,000$ 50,000$ 0.6%1.4%-0.8%8,258,333$ (358,333)$ 2014 8,150,000$ 250,000$ 3.2%1.5%1.7%8,382,208$ (232,208)$ 2015 8,535,000$ 385,000$ 4.7%-0.3%5.0%8,357,061$ 177,939$ 2016 8,919,000$ 384,000$ 4.5%2.0%2.5%8,524,203$ 394,797$ Setting CIP Priorities Priority I: Imperative (MUST-DO)-Projects that cannot reasonably be postponed in order to avoid harmful or otherwise undesirable consequences. Priority II: Essential (SHOULD-DO)-Projects that address clearly demonstrated needs or objectives. Priority III: Important (COULD-DO)-Projects that benefit the community but may be delayed without detrimental effects to basic services. 20 Priority 1: Imperative Corrects a condition dangerous to public health or safety Satisfies a legal obligation (law, regulation, court order, contract) Alleviates an emergency service disruption or deficiency Prevents irreparable damage to a valuable public facility 21 Priority 2: Essential Rehabilitates or replaces an obsolete public facility or attachment thereto Stimulates economic growth and private capital investment Reduces future operating and maintenance costs Leverages available State or Federal funding 22 Priority 3: Important Provides a new or expanded level of service Promotes intergovernmental cooperation Reduces energy consumption Enhances cultural or natural resources 23 Setting Spending Priorities 1.Generates revenue in excess of costs 2.Essential versus non-essential services 3.Increase productivity/efficiency 4.Decrease costs (R&M, energy, etc.) 5.Preventive maintenance 6.Replace (needed) existing capital assets 7.New services and assets 8.Placeholder 24 Sustainability Ability to maintain or support an activity or process over the long term. 25 Incrementalism Is a method of working by adding to a project using many small (often unplanned), incremental changes instead of a few (extensively planned) large jumps. 26 Debt Service Levy 27 Follow-up Street reconstruction ($500k) Settlement bonds ($180k) Additional debt services ($200k) Equipment bonds ($80k) Base levy ($385k) Police (-$95k) Total $(1,250,000) 15.3% 28 FiberNet Annual Operating Support -$444,000 Annual Debt Service Support -$480,000 Total Annual Support* -$924,000 * Value to community through lower costs. 29 Three Principles of Finance Always spend your most restrictive money first. Recurring expenditures should be offset by recurring revenues. Conservatively estimate revenues and liberally estimate expenditures. 30 Tax Base Changes New building permits $16M (2013) No TIF districts decertified Nuclear plant value is $???M higher 31 Additional Levy Consideration 32 Street Construction/Reconstruction ($450k) Equipment purchase ($90k supports $750k) FiberNet Bonds ($160k –2015; $480k –2016) Additional Park Employee ($70k) Additional Street Employee ($70k) Salt Shed ($250) Wastewater Treatment Plant ($_________) Fire Hall -New/Renovations ($__________) Public Works Building ($__________) Fire Ladder Truck ($1.1M) Additional Levy Consideration 33 Interchange Study ($50k) Security Cameras ($25k) Additional Debt Service ($_________) West and East Bridge Park ($_________) Bertram Chain of Lakes ($________) Pathways ($________) Elm St. –3rd St. Sidewalk ($160k) Sidewalk –Gap Closures ($________) Placeholder ($_________) Debt Service Levy 34 $1.63M x 1 $628K x 2 $179K x 3 Leadership Adopted Recommended Requested 35 Expenditures Principles of finance Cost of living adjustments (COLA) Health insurance Inflation Debt Staff changes FNM 36 Inflation -Midwest 37 Consumer Price Index - All Urban Consumers Series Id: Area: Item: Base Years: Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2004 1.8 1.3 1.3 2.1 2.9 2.7 2.9 2.5 2.3 3.0 3.3 3.0 2.4 2.0 2.9 2005 2.6 2.8 2.9 3.4 2.5 2.5 2.8 3.5 4.8 4.1 3.0 3.2 3.2 2.8 3.6 2006 3.6 3.0 3.1 2.8 3.3 3.4 3.3 2.8 0.6 0.1 1.3 1.7 2.4 3.2 1.6 2007 1.2 2.0 2.3 2.3 2.9 2.7 2.3 1.8 3.1 3.7 4.1 3.8 2.7 2.2 3.1 2008 4.3 3.8 3.7 4.0 4.0 4.9 5.6 5.4 4.8 3.3 0.5 -0.3 3.7 4.1 3.2 2009 -0.3 -0.2 -0.8 -1.5 -1.9 -1.7 -2.5 -1.8 -1.7 -0.2 2.2 3.0 -0.6 -1.1 -0.2 2010 2.9 2.5 2.6 2.7 2.4 1.2 1.7 1.5 1.6 1.5 1.2 1.8 2.0 2.4 1.5 2011 1.9 2.2 2.7 3.3 3.8 3.9 3.8 3.8 3.9 3.3 3.3 2.8 3.2 2.9 3.5 2012 2.8 2.7 2.8 2.3 1.5 1.4 1.3 1.8 1.9 2.2 1.8 1.8 2.0 2.3 1.8 2013 1.3 2.2 1.4 1.2 1.8 2.2 1.8 1.2 1.0 0.8 1.0 1.0 1.4 1.7 1.1 2014 1.4 0.9 1.5 1.9 1.6 1.7 1.5 Midwest urban All items 1982-84=100 2004 to 2014 12-Month Percent Change CUUR0200SA0 Not Seasonally Adjusted Debt Service Levy 38 Xcel Property Tax 39 2012 2013 2014 2015 Estimated Market Value 213,300,800$ 377,028,900$ 346,559,800$ 580,857,700$ 163,728,100$ (30,469,100)$ 234,297,900$ 77%-8%68% Wright County 1,853,668$ 3,339,571$ 3,010,427$ Change over prior year $1,485,903$ (329,144)$ Change over prior year %80%-10% City of Monticello 2,123,324$ 3,186,799$ 3,096,661$ Change over prior year $1,063,475$ (90,138)$ Change over prior year %50%-3% State General 46,851$ 98,512$ 98,055$ Change over prior year $51,662$ (457)$ Change over prior year %110%0% Monticello ISD 882 Voter Approved Levy 1,111,255$ 1,833,117$ 1,650,161$ Other Local Levies 568,702$ 936,387$ 967,084$ Change over prior year $1,089,546$ (152,259)$ Change over prior year %65%-5% Special Taxing District 52,899$ 45,847$ -$ Total 5,756,698$ 9,440,232$ 8,822,388$ Change over prior year $3,683,534$ (617,844)$ Change over prior year %64%-7% MCC SECTION 5. OTHER BUDGET AUTHORIZING ACTIONS: a.Establishes a revenue recovery policy for the community center where customer charges shall provide for 85%of operating costs and on-going capital and non-capital items, such as equipment acquisitions and repairs and maintenance. 40 Great Organizations 41 A Relentless Culture of Discipline: Disciplined people who engage in Disciplined thought and who take Disciplined action. Questions or Comments? 42 Leadership Style 43 Competition AS S E R T I V E N E S S Avoidance COOPERATION Accommodation Collaboration Compromise The End 44 Tax Rates 45 Personal Services Trend 2011 2012 2013 TOTAL ALL FUNDS Actual Actual Actual Personnel Services 5,437,475$ 5,482,262$ 5,157,859$ Fund 2011 2012 2013 General Fund 2,649,533$ 2,710,939$ 2,551,140$ Community Center 940,447$ 923,264$ 969,868$ DMV 247,347$ 264,045$ 269,045$ Water 225,729$ 217,412$ 212,410$ Sewage 258,493$ 283,752$ 262,620$ Liquor Store 416,160$ 422,579$ 441,640$ Fiber Optics 666,974$ 639,646$ 445,423$ Why Budget? A.To provide policy direction and control for expenditures. B.To create a bench mark for measuring performance. C.To communicate to constituents that their needs are being addressed. D.All the above E.None of the above 47 Low Impact Fees Sanitary Sewer Access Fund is currently projected to have an 2013 ending balance of $772K. Year Amount 2014 1,282,540$ 2015 1,281,504 2016 1,281,504 2017 578,000 2018 578,000 2019 128,000 2020 128,000 2021 128,000 Total $5,385,548 $1.9M 48 Low Impact Fees Water Access Fund is Dry. Year Amount 2013 $363,500 2014 362,870 2015 361,820 2016 361,820 2017 50,600 2018 50,600 2019 50,600 2020 50,600 2021 50,600 Total $1,703,010 $1.1M 49 Delinquent Assessments 2005A/2011A G.O. Bond has $1.7M special assessments that are not being paid (Bowers-Chadwick). Assessments were levied in 2010. Annual amount: $240,722 Total fund delinquencies: $870,766 50 Key Issues Dependence on Property Taxes Personnel Services Low Impact Fees Delinquent Assessments Capital and New Debt Needs 51 General Fund 52 1 step wages = $50K GF; $12K MCC; $100K All Funds. 1% wages = $35K GF; $ 9K MCC; $ 70K All Funds 1% health ins. = $4K GF; $ 1K MCC; $ 8K All Funds.