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City Council Agenda Packet 12-03-1997 SpecialAGENDA SPECIAL MEETING - MONTICELLO CITY COUNCIL Wednesday, December 3, 1897 - 8 p.m. Mayor: Bill Fair Council Members: Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen Call to order. Tn:t.'- in Taxation public hearing for proposed 1998 budget. Adjournment. Uffice � ( rhe CuY Admmwt w,r 250 Ea.r Broadwav MEMO %Lmnall,,, !,IN 553b2-9245 Phone: (612)'_95-2711 Metro: (612) 333,5739 T0: Mayor and Council Members FROM: Rick Woifsteller, City Administraor DATE: November 19, 1997 RE: 1998 Budget Modifications Attached you will find the budget summary sheets that have been modified to include the changes discussed at our last budget workshop. The primary changes consisted of reducing the Hillside Cemetery fence budget from $29,000 to $10,000, which resulted in a savings of $19,000, along with the decision to reduce the amount of funds to be taken from Cie liquor store reserves from $229,799 to approximately one-half of this amount, or $115,000. These two amounts added up to $134,000, which is the amount that our maximum tax levy was reduced by. Another change you will note in the capital outlay category under city hall/community center, phase I architectural design fees, is that 1 reduced the $164,799 previous estimate to $70,000. The result of this reduction was that the capital outlay fund would have $125,000 still available to be earmarked for some purpose that had not yet been designated in the budget. With the Highway 25/Chelsea Road realignment project continuing on schedule, it seemed appropriate to simply earmark the available funds for the City's share of this improvement project, which 1 have added to this budget. This item does not increase our tnx levy needs, but it tentatively earmarks the funds for a project we have planned. In order to keep our general levy at its maximum allowed by the Department of Revenue, we will be transferring $134,000 from our liquor fund reserves to a debt service bond account. This preserves our higher levy limit should we ever need it in future years. Memo Mayor and Council Members November 19, 1997 Page 2 After making the changes discussed at the last workshop, the total dollar increase in our levy amounts to $823,133, of which $627,785 is for debt purposes. The nondebt portion of the budget increase would now be at $195,348, or approximately 6.38% more in dollars than last year. I've also revised the worksheet that compared taxes in 1997 to those proposed in 1998 for various market values of commercial and residential properties. Many businesses and residents will actually see a reduction in the property taxes even though the City needs to raise more revenue for our wastewater treatment plant. Lower valued residential properties will receive an increase as the example shows for a $65,000 house at 4.9% increase. Overall, our increasing tax base and the additional state funding that the School system is receiving through state aids is helping to keep the property taxes very close to what they were in 1997. If the Council is comfortable with the budget summary as modified and the proposed tax levy of $3,883,013($134,000 lower than the maximum allowed), the need for additional workshop discussion may not be necessary, and we can simply proceed with presenting this information at the budget hearing Wednesday, December 3, at 5 p.m. As a reminder, the Council would still have the option of restoring any proposed levy cuts you have made or make additional reductions if you should so choose at the December 3 budget hearing. After the initial hearing is held, the final budget and levy amnunt would need to be adopted at our regular meeting December 8. I— 14 TAX LEVY SUMMARY 1998 BUDGET ALL FUNDS Tax Tax '88/Payable 1989 Net Payable 14.283 $2,198,008 Net Payable 15,873,242 1997 Adjusted Levy Before '90/Payable 1991 1998 Adjusted 15.511 Levy After HACA Adj. 15,513,574 Levy After E=d Deducting HACA Payable 1948 HACA Deducting HACA General 81,967,526 $2,467,950 $259,157 $2,208,793 Library 31,095 31,095 0 31,095 Transportation 14,604 16,612 0 16,612 Shade Tree 0 0 0 0 OAA 977 2,175 0 2,175 HRA 12,966 14,795 0 14,795 Debt Service 557,575 1,098,807 0 1,098,807 Capital Imp. Revolving 475.137 510.736 510.736 TOTAL $3,059,880 $4,142,170 $259,157 $3,883,013 Net Levy Increase to Cover Debt - $627,785 20.52% increase Net Levy Increase for Non -debt Portion of Budget - 195,348 6.38% increase Net Certified Levy Increase - $823,133 26.90% Payable 1989 Tax Capacity Rate ..... 14.283 Payable 1990 Tax Capacity Rate ..... 16.187 Payable 1991 Tax Capacity Rate ..... 15.511 Payable 1992 Tax Capacity Rate ..... 16.492 Payable 1993 Tax Capacity Rate ..... 16.313 Payable 1994 Tax Capacity Rate ..... 17.527 Payable 1995 Tax Capacity Rate ..... 18.228 Payable 19% Tax Capacity Rate ..... 18.509 Payable 1997 Tax Capacity Rate ..... 19.136 Est. Payable 1998 Tax Capacity Rate. 26.940 Tax Tax '88/Payable 1989 8 15,405,139 14.283 $2,198,008 '89/Payable 1990 15,873,242 16.187 2,568,106 '90/Payable 1991 16,161,043 15.511 2,506,132 '91/Payable 1992 15,513,574 16.492 2,658,554 '92/Payable 1993 15,490,500 16.308 2,526,216 '9YPayable 1994 15,154,786 17.527 2,652,527 '94/Payable 1995 16,586,930 18.228 2,841,185 '95/Payable 1996 15,792,922 18.509 2,922,800 '96/Payable 1997 16,993,989 19.136 3,059,880 '97/Payable 1998 (est.) 14,413,597 26.940 3,883,013 979UDOHT 111497 PAQE it CAPITAL OUTLAY ITEMS 1998 BUDGET FUND/ Typewriter table FUNDING D .P RTMFNT rrEM AMOLINT .901IRrF Administration: File cabinets: Capital Outlay (2) basement 15,000 Capital Outlay (1) administration Prairie Creek Park improvements 3,500 (1) utility billing Add'I ballfields (3) - NSP Park (1st half) (1) assessing $ 9,000 General Fund Microfilm reader/printer 14,000 General Fund Plan holder 3200 General Fund $ 26,200 MCP initiatives Deputy Registrar: Typewriter table $ 150 General Fund Parks: Klein Farms Park improvements $ 40,000 Capital Outlay Pathway • Ellison Park to Miss. Dr. 15,000 Capital Outlay Prairie Creek Park improvements 3,500 General Fund Add'I ballfields (3) - NSP Park (1st half) 40,000 Capital Outlay Freeway Park - parking lot (2nd half) 13,000 General Fund River/Bridge Park enhancements - MCP initiatives 60,000 Capital Outlay Hillside Cemetery wrought iron fence ($38,500 less '94 budgeted amount of $9.500) (balance in 1999) 10,000 General Fund Picnic tables 4,000 General Fund Mowers (2) - (1) replacement (1) new 25,790 General Fund Pickup, 2 -wheel drive 16,000 General Fund Dump truck with plow, 1 ton, 4x4 38,000 General Fund Hard surface 4th St. ice rink (skate boarders) & play structure improvements 40,000 Capital Outlay Adopt -a -park seed $ for volunteers 5.000 Capital Outlay $318,290 Liquor: Carpet replacement $ 7,000 Liquor Fund Intercom headphones 300 Liquor Fund Enlarge refuse/cardboard storage (outside) 1.000 Liquor Fund $ 8,300 Library: Unallocated 8 11000 Library Fund 97BUDOET: 1/1"7 PAGE 101 CAPITAL OUTIAY ITEMS 1998 BUDGET FUND/ D .PF ARTMFNT ITE�i' ADiOT FUNDING SQlTRCE HRA: Downtown Revitalization Study (final payment) $ 30,000 HRA Fund Future industrial park land acquisition - Reserve (2nd yr) (contingent upon City matching funds) 75,000 HRA Fund Funding partial land acquisition along river 35.000 Capital Outlay $140,000 Fire Dept.: Unallocated - unspecified $ 10,00 General Fund Shade Tree: Boulevard tree planting program ($900 01 $25 each) S 22,500 Tree Fund Reserves General reforestation - matching grant assistance 25.000 Tree Fund Res. S 47,500 Data Processing: Main frame computer - updating AS/400 lease (annual) $ 28,000 General Fund PC - motor vehicle 2,500 General Fund PC's (4) - city hall 10,000 General Fund PC - public works 2,500 General Fund PC - microfilm 3,500 General Fund Cash register - motor vehicle 1,000 General Fund Printers (2) - city hall 2,600 General Fund Network - city hall 3.000 General Fund $ 53,100 City Hall: New city hall $410,000 Liquor Reserves 400.000 Capital Outlay $810,000 Reserves Community Center: Phase I - architectural design fees (!7t—, Capital Outlay Economic Development: MCP contribution $ 35,000 Capital Outlay Future industrial park land acquisition - 2nd yr - reserve (matching contrib. of HRA) 75,000 Capital Outlay Develop marketing program for businaoa/industry 35.000 General Fund $145,000 078UOaET. 111.47 PAGE 102 CAPITAL OUTLAY ITEMS 1998 BUDGET FUND/ DD .PF�NT ITEM Public Works Administratinn: File cabinets (2) Postage machine rental and electronic scale Public Works Inspections: Street Dept.: Snow/ice: Refuse: WWTP: Sewer Dept.: Cemetery: Water Dept. Planning: Desk and filing cabinet 4" Trash pump Radios ® $550 ea (4) Tamper Jackhammer 5000 watt generators (2) (signal lights) Sealcoating program Bobcat 1/3 of cold planer Hwy 25/Chelsen Rd realignment ( partial ) Snowplows (2) Rental garbage carts (250) Radio Administration big. furniture and fixtures U3 of new jet rodder/vac - reserve (1/6 budgeted in 1997) Jetting nozzle Rebuild jet rodder Sewer line TV camera Cemetery management software Equipment storage building - Purchase or building reserve Water Resource Management Plan AMS2LIZI $ 800 600 S 1,400 S 1,500 S 3,200 2,200 1,000 1,000 8,000 27,500 27,000 $ 75,900 $125,000 E 10,000 $ 15,000 E 550 E 8,050 E 50,000 2,200 2,500 E 64,700 $ 600 $ 65,000 E 40,000 FUNDING SOURCE General Fund General Fund General Fund General Fund General Fund General Fund General Fund General Fund General Fund General Fund General Fund Capital Outlay General Fund General Fund Sewer Fund WWTP Const. Fund Capital Outlay Sewer Fund Sewer Fund Sewer Fund Cemetery Fund Water Access Fund Reserves Storm Sewer Access Fund 978000ET: 111"7 PAGE 103 V FLIN General Library Transportation Shade Tree UDAG OAA HRA EDA SCERG CMIF Debt Service Liquor Water Sewer Cemetery Capital Imp. Water Access Storm Sewer Access Sewer Access TOTAL REVENUE AND EXPENDITURE SUMMARY 1998 BUDGET 1824 RF.VFNITF F.XPF.NDMTRFc; $2,876,200 $2,876,200 32,295 32,295 69,635 69,635 6,900 20,725 12,840 59,000 1,600 1,600 515,960 596,000 215,740 2,120 5,555 124,000 120 0 1,499,090 1,688,973 1,828,650 1,643,350 218,305 418,740•• 563,800 969,435- 0 0 579,948 579,950 74,900 10,000 25,000 0 $8,728,958 $9,092,023 • includes $619,450 Depreciation --contributed assets sewer •• includes $201,100 Deprafation-contributed assets water 97BUDGET: 1/1497 1828 REVENUE F.XP�tRFC $3,259,995 $ 3,259,995 32,295 32,295 72,030 72,030 8,550 71,430 4,690 0 2,900 2,900 438,800 402,555 35,880 2,120 5,740 0 120 0 2,000,685 1,816,042 2,017,450 1,892,175 246,900 425,325 622,020 1,203,355 24,200 31,550 591,676 590,000 80,720 65,000 80,560 40,000 324,440 0 $9,849,651 $ 9,906,772 PAGE W GENERAL FUND SUMMARY 1998 BUDGET saxes 1338 1331 Current Ad Valorem $2,467,950 $2,137,625 Penalty/[nterest 1,000 100 Tax Increments -Kmart 84.300 86.050 LiCPn GPR And P rmite • Rngin PGR $2,553,250 $2,223,775 Liquor 24,900 24,900 Beer 1,025 1,030 Set Ups 300 325 1aC nA R nnd P rmit Nnn-RiminPRR $ 26,225 $ 26255 . Building Permits 152,000 150,000 Variances/Conditional Uses 2,000 2,500 Dog Licenses 125 125 Others 5.100 5.050 Int r n of $ 159,225 $ 157,675 oyernm Fire Department Aid 45,000 34,900 Police Department Aid 22,000 25,000 State Highway Aid 41.000 41.000 Chnrges for Services $ 108,000 S 100,900 General Government 1,000 1,000 Public Safety (Township Contract) 6,5,360 60,970 Streets - C.S.A.H. Mtnc. 7,700 6,600 Deputy Registrar 110,000 105,000 Other 675 650 Subdivision Fees 7,500 5,000 Special Processing Fee (Garbage) 15,000 15,000 Recycling Incentive 12,000 12,000 Inspection Fees 25,000 5,000 Garbage Cart Rental 8.000 6.000 5 252,235 $ 217.220 F,m Animal Impoundment 18000 18.000 Miacellnneouig Revenue S 15,000 $ 18,000 Interest on Investments 121,435 103,525 Sale of Property 325 350 Other A Rental of Property 9.300 13.500 Rntlinda and ReimbnrRPmrntA $ 131,060 $ 117,375 Other Reimbursements 1x.000 15.000 $ 15,000 $ 15,000 TOTAL GENERAL FUND REVENUE $3,259,995 52,876,200 GENVUNDRSUM: I111FM CS GENERAL FUND SUMMARY 1998 BUDGET EXPENDITURES im 1391 Mayor and Council E 32,450 E 30,425 Administration 306,575 236,000 Finance 102,080 100,990 Insurance 63,915 63,470 Audit 13,500 13,500 Legal 47,500 28,000 Planning & Zoning 166,085 109,895 Inspections --Bldg. Official 153,415 163,905 Assessing 16,550 15,900 Deputy Registrar 108,820 98,665 City Hall 44,185 34,980 Computer 75,575 35260 Elections 5.600 0 TOTAL GENERAL GOVERNMENT $1,136250 $ 930,980 Law Enforcement $ 333,325 $ 323,475 Fire 172,210 140,565 Civil Defense 9,345 8,710 Animal Control 38.060 34.100 TOTAL PUBLIC SAFETY $ 662,930 $ 506,850 Inspection $ 90,775 $ 43,540 Admin. & Engineering 133,140 126,090 Streets & Alleys 325,550 308,325 Snow & Ice 60,720 97,710 Street Lighting & Parking Lots 67,700 62,760 Shop & Garage 37,850 37,050 Refuse Collection 263-100 .121566 TOTAL PUBLIC WORKS $ 978,835 8 997,020 Senior Citizens Center $ 37,000 $ 37,000 YMCA/Community Ed. 25,000 25,000 Information Center/Museum 1896 1690 TOTAL HEALTH & WELFARE $ 63,695 $ 63,690 Parks & RecJCemetery >L31S924 !_292.41D TOTAL PARKS & RECREATION $ 358,240 $ 242,410 Community Development ! 159.046 A 1124,9nn TOTAL COMMUNITY DEVELOPMENT 1 169,046 6 124,250 Misc.--Severence Benefits A It,pm ! 11 000 TOTAL MISCELLANEOUS $ 11,000 $ 11,000 TOTAL GENERAL FUND EXPENDITURES $3,259,995 $2,876200 GENFUNDE.SM Ivtrw7 SUMMARY DEBT SERVICE FUNDS 1998 BUDGET FORECAST REVENUE 1992 1998 Current ad valorem: 605,022 1,098,807 Interest: 91,780 95,255 Special asmt--county: 506,788 389,638 Transfer in --tax increment: 295,500 282,985 Transfer in --Liquor fund: TOTAL REVENUE ...................................................................................... EXPENDITURES Principal: 1,180,000 1,375,000 Interest: 486,291 415,966 Paying agent fees: 8,182 7,326 Interest exp.: 14.500 17.750 TOTAL EXPENDITURES $1.888. 81 07BUDW; 1114,97 PAGE 64 LEVY LIMIT COMPARISONS 1997 vs. 1998 1332 L9H Incmasc• Non -debt Related Levy $2,454,o08 $2,650,206 $195,348 • This amounts to a 6.38% increase in dollars to be collected to fund normal increases and for additional programs or services proposed. lFwuMT.aoM: 11/1"? 1922 1338 General Levy (Limit) $2,769,607 $3,100,714 Add: Debt Levy + 605,022 +1,098,807 Subtract: State Aids (HACA) - 314.749 - 316.509 PROPOSED LEVY $3,059,880 $3,883,013 1332 L9H Incmasc• Non -debt Related Levy $2,454,o08 $2,650,206 $195,348 • This amounts to a 6.38% increase in dollars to be collected to fund normal increases and for additional programs or services proposed. lFwuMT.aoM: 11/1"? 0 SUMMARY OF PROJECTED REVENUES, EXPENDITURES AND FUND BALANCES (CASH 8 INVESTMENTS) FUND General Library Tree OAA Water Water Access Sewer Sewer Access Transportation Liquor Capital Outlay Revolving HRA U DAG EDA SCERG CMIF Storm Sewer Access Cemetery SUBTOTALS Debt Service General Obligation Bonds Special Assessment Bonds Tax Increment Bonds SUBTOTALS TOTALS PROJREV: 1//18497 PROJECTED 1998 1998 PROJECTED BALANCE 12/31/97 PROJECTED REVENUE PROJECTED EXPENDITURES BALANCE 12[31/89 $2,558,725 $3,259.995 $3,259.995 $2,558,725 $7,975 $32295 $32295 $7,975 $127,845 $8,550 $71,430 $64,965 $10,530 $2.900 $2,900 $10.530 $148,320 $246,900 $224225 $170,995 $341,515 580,720 $65,000 $357235 $124,875 $622,020 $583,905 $162.990 $544.875 $324,440 $0 $869,315 $1,100 $72,030 $72,030 $1.100 $396200 $2,017,450 $1.892,175 $521,475 $403,368 5591.676 $590,000 $405,044 $42,635 $438,800 $402,555 $78,880 $112,460 $4,690 $0 $117,150 $150,820 $35,880 $2.120 $184,580 $3,095 $5,740 $0 58435 $420 $120 $0 $540 $25.000 529 90D $80,560 S24.2Dfl $40,000 531550 $65.560 522,450 $5.029,558 $7,648,966 $7,270,180 $5,608,344 $721,205 $828,904 $230,700 $1,319.409 $2,188,309 $11.716 $869,646 5294.38 $1,268380 5299212 $1,789,575 (53.1111 $2,921,230 $1,982.935 $1,798292 $3,105,873 $7,950,788 $9,831,901 $9.068,472 , $8.714,217 v PRELIMINARY ESTIMATES OF VALUES FOR TAXES PAYABLE 1998 City: Market value +5.0% $495,397,800 Tax capacity value -10.0% $14,413,597 Proposed tax levy +26.9% $3,883,013 Tax caoacity rate +40.7% 26.940 School: Market value (W.C. only) +6.6% $739357,500 Tax capaaty value -7.6% $17,666,138 Proposed levy -12.0% $11,176,934 Tax capacity rate -9.5% 57.99 Market value rate 0.05869 Wright County: Market value +9.0% $3.537,922.100 Tax capacity value -1.4% $57,403,648 Proposed levy +5.5% $17,663,676 Tax capacity rate +7.0% 30.771 Hospital District: Market value (W.C. only) +6.7% $926,727,500 Tax capacity value .5.6% $20,044,519 Proposed levy -1.7% $481,269 Tax cacacity rate +5.0% 2.401 TOTAL 1098 PRELIMDIARY TAX CAPACITY RATE 118.104 1097 TAX CAPACITY RATE \ 112,818 OVERALL % INCREASE IN TAX CAPACITY RATE - 4.87, valuetaxmk4: 11/1&97 v Tax Comparison by Property Class & Value 1997 vs. 1998 % Increase EMV $750,000 EMV $750,000 Assessed Value 32,900 A.V. 28,050 Taxes 37,051 Taxes 33,127 -(10.67)% EMV $150,000 EMV $150,000 Assessed Value 5,300 A.V. 4,050 Taxes 5,969 Taxes 4,783 -(19.8)% Residential Hnmestend. EMV $65,000 EMV $ 65,000 Assessed Value 650 A.V. 650 Taxes 732 Taxes 768 +4.9% EMV $75,000 EMV $ 76,000 Assessed Value 780 A.V. 750 Taxes 878 Taxes 886 +0.9% EMV $85,000 EMV $ 85,000 Assessed Value 980 A.V. 936' Taxes 1,104 Taxes 1,104 No change EMV $130,000 EMV $130,000 Assessed Value 1,880 A.V. 1,767 Taxes 2,117 Taxes 2,087 -0.4%) EMV $200,000 EMV $200,000 Assessed Value 3,280 A.V. 3,062 Taxes 3,694 Taxes 3,616 -(2.1%) C.\OVPICH\ RICH\TAX-COM P.YM Budget Year 1998 (Based on a total levy increase of 26.9% in dollars with a non -debt levy Increase of 6.38%) The effect of budget increases or decreases on the proposed: Budget Effecton General Fund +$383,795 +$241,267 Library Fund $0 $0 Transportation +$2,395 +$2,008 Tree + $50,705 $0 OAA +$1,300 +$1,198 HRA -$193.445 +$1,829 Debt Service +$127,069 +$541,232 Capital Outlay Fund +$10.050 +$35,599 EDA Fund $0 $0 UDAG - $59,000 $0 Liquor +$248.825 $0 Water Fund +S6,585 $0 Sewer Fund +$233,920 $0 Water Access Fund + $55,000 $0 Storm Sewer Access $40,000 $0 Sewer Access Fund $0 $0 SCERG -$124,000 $0 CMIF $0 $0 Cemetery + $31.550 1 TOTALS --ALL FUNDS +$814,749 +$823.133 levyi ncr.wk4: 11/19/97 Tax Burden for a $80,000 Monticello Home Taxes Payaole 1997 to 1998 $1.200 z $995 $993 $1.000 — ,r Y i# $800 — i� $600 f A $400 — $227 s $168it $200 — -- -- ---- �H ; .00 :0 City Total 11998 0 1997 I TAX BU R D. W K 4: 11/20/97 m io cc 9 Composition of the Proposed 1998 Total Tax Rate For the City of Monticello so -r" I 60 - 30.771 40 26.940 Z0 0 Courcy Cay School Total 1998 Tax Rate: 116.102 I 57.990 i TAXRATE.WK4; 1120/97 Spodal Average Proposed Monticello Property Tax Bill Where the Tex Dollars Go --Pay 1998 County (49,1%) School TAXBILL. WK4: 11 !20/97 City (20%) Spoeial _CJ