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Home My WebLink About2012 Preliminary Tax LevyCity Council Meeting Minutes September 13, 2011 Page 2 of 3 C. Appoint Councilmember McComber as Voting Delegate for NLC Annual Business Meeting D. Approve Job Description Updates — Police Department E. Authorize Staff to Put in Sunnyside Pressure Reducing Valve F. Appoint Voting Delegate — LNC Annual Business Meeting G. Authorize Staff to Begin Working Hockey Board Replacement Plan Councilmember McComber, seconded by Councilmember Runk, moved to approve the Consent Agenda. Roll call vote taken. Carried 5 -0. V. Public HearinLys: None VI. Old Business: None VII. New Business: A. Adopt Resolution Approving 2012 Proposed Budget and Proposed Tax Levies: Finance Director Caruso reported that the City Council and Department Heads had several meetings to develop a preliminary budget for 2012. She reported there was a six percent decrease in property values in the City. Finance Director Caruso provided a summary of the proposed changes to revenues and expenditures for the 2012 budget. Caruso reported that the City Council was discussing the possibility of shifting the minimum utility bill to the property tax which would save taxpayers money. Mayor Beaudet, seconded by Councilmember Runk, moved to approve the Resolution. Roll call vote taken. Carried 4 -1, McComber opposed. B. Schedule Public Comment/Hearing Meeting for Truth in Taxation Mayor Beaudet, seconded by Councilmember Swenson, moved to add the Truth in Taxation Hearing to the November 29, 2011 City Council meeting. Carried 5 -0. C. Allow Staff to go out for RFP for Engineers Councilmember Swenson, seconded by Mayor Beaudet, moved to allow staff to go out for RFP for engineers for geothermal heat pumps. Carried 5 -0. Oak Park p Heights Request for Council Action Meeting Date September 13, 2011 Agenda Item Title Adopt Resolution Approving 2012 Proposed Budget and Proposed Tax Levies Time Required 5 Minutes Agenda Placement New Business Originating Department/ Requestor Finance - Betty Caruso, Finance Director Requester's Signature ►11 �( Action Requested Approve 2012 General Fund Proposed Budget and Proposed General Fund Tax Lew. Adopt Resolution. Background/ Justification (Please indicate any previous action, financial implications including budget information and recommendations). Three budget workshops have been held for the 2012 proposed budget and tax levy. At this time the proposed revenue budget is $5,111,184 and the proposed expenditure budget is $5,111,184. The proposed General Fund levy amount is $4,684,562. The amount levied for the G. 0. Capital Improvement Bonds of 2008 and 2009 is $400,000 and $136,000 respectively, and is included in the General Fund Levy. My preliminary calculation for the General Fund Levy is an 18.2% or $719,858 increase in total levy and a 12.6% increase in total tax rate over 2011. This increase consists of a $456,500 increase due to the shift in utility billing to property taxes and $263,358 for changes in the General Fund operations. Increases for 2012 Budget includes increases of $5,000 for Parks Programs, $7,000 for waste removal, $8,800 in street maintenance /snow plowing, $48,000 in public safety for the replacement of an officer who is retiring, $8,000 in insurance, $11,000 for elections and other contractual and supply expenditures. Along with the above increases the City is experiencing a reduction of revenues in the following amounts: a $100,000 decrease in the use of fund balance, $65,000 reduction in Administrative Charges and a loss of $30,000 in state and county revenues /grants. This results in an increase in the property tax levy of $263,000, or 6 %. Some Departments decreased expenditures for 2012. The reductions are attributed to reduction in fire contracts costs, shifts in wage allocations, and reduced engineering costs. Attached is a Proposed 2012 Revenue & Expenditure Budget Summary for your review. The proposed 2012 General Fund Levy must be adopted, approved and certified to Washington County by September 15, 2011. The final budget and levy must be submitted to the County by December 28, 2011 I recommend approval of the proposed 2012 General Fund Budget, 2012 General Fund Levy and adoption of the Resolution for the proposed 2012 General Fund budget and levies. 2012 BUDGET COMPARED TO 2011 BUDGET EXPENDITURES MAYOR & COUNCIL $ 2011 $ 2012 $ INCREASE 1.50% CITY ADMINISTRATION BUDGETED REQUESTED (DECREASE) % REVENUES (5,262) -2.08% LEGAL $ 29,700 $ 30,000 TAX LEVY FOR OPERATIONS $ 3,440,704 $ 4,148,562 $ 707,858 20.57% TAX LEVY FOR DEBT $ 524,000 $ 536,000 $ 12,000 2.29% TOTAL TAXES LEVIED $ 3,964,704 $ 4,684,662 $ 719,858 18.16% MARKET VALUE HOMESTEAD CREDIT $ (92,249) $ - $ 92,249 - 100.00% OTHER TAXES -PILOT $ 49,000 $ 59,000 $ 10,000 20.41% BUSINESS LICENSES - PERMITS $ 33,800 $ 36,300 $ 2,500 7.40% NONBUSINESS LICENSES - PERMITS $ 53,500 $ 47,100 $ (6,400) - 11.96% FINES & FORFEITS $ 60,500 $ 50,500 $ (10,000) - 16.53% INTERGOVERNMENTAL REVENUES $ 88,040 $ 70,040 $ (18,000) - 20.45% CHARGES FOR SERVICES $ 73,425 $ 13,132 $ (60,293) - 82.12% MISC. REVENUES $ 245,500 $ 150,550 $ (94,950) - 38.68% 1,164,889 $ 4,476,220 $ 5,111,184 $ 634,964 14.19% EXPENDITURES MAYOR & COUNCIL $ 91,560 $ 92,935 $ 1,375 1.50% CITY ADMINISTRATION $ 253,000 $ 247,738 $ (5,262) -2.08% LEGAL $ 29,700 $ 30,000 $ 300 1.01% GENERAL MANAGEMENT & BUILDING $ 122,405 $ 127,675 $ 5,270 4.31% ELECTIONS $ 940 $ 11,740 $ 10,800 1148.94% FINANCE $ 238,875 $ 259,275 $ 20,400 8.54% COMPUTER $ 24,100 $ 31,500 $ 7,400 30.71% AUDIT $ 21,250 $ 27,500 $ 6,250 29.41% INSURANCE $ 341,000 $ 349,761 $ 8,761 2.57% ASSESSING $ 21,660 $ 22,700 $ 1,040 4.80% PLANNING & ZONING $ 35,800 $ 36,000 $ 200 0.56% ENGINEERING $ 32,000 $ 27,000 $ (5,000) - 15.63% BUILDING INSPECTIONS $ 131,410 $ 131,975 $ 565 0.43% POLICE $ 1,116,555 $ 1,164,889 $ 48,334 4.33% FIRE $ 168,100 $ 160,380 $ (7,720) -4.59% CIVIL DEFENSE $ 5,050 $ 5,050 $ - 0.00% ANIMAL CONTROL $ 1,635 $ 1,635 $ - 0.00% PUBLIC WKS- STREET MAINTENANCE $ 61,355 $ 63,885 $ 2,530 4.12% PUBLIC WKS -SNOW REMOVAL $ 122,750 $ 129,000 $ 6,250 5.09% PUBLIC WKS- STREET LIGHTING $ 68,000 $ 68,700 $ 700 1.03% TREE REMOVAUPLANTING $ 52,700 $ 49,850 $ (2,850) -5.41% SANITATION & WASTE $ 190,800 $ 197,800 $ 7,000 3.67% PARKS $ 164,932 $ 150,471 $ (14,461) -8.77% COUNCIL CONTINGENCY $ 9,900 $ 10,000 $ 100 1.01% TRANSFERS FOR DEBT $ 524,000 $ 536,000 $ 12,000 2.29% TRANSFERS OUT $ 646,740 $ 1,177,725 $ 530,985 82.10% $ 4,476,217 $ 5,111,184 $ 634,967 14.19% Summary of Revenue and Expenditures 2012 BUDGET RECAP - CHANGES IN LEVY TAX LEVY TAX LEVY FOR OPERATONS TAX LEVY FOR DEBT TOTAL TAXES LEVIED INCREASE IN OPERATIONAL EXPENDITURES DEBT LEVY ELECTIONS FINANCE - PERSONNEL COSTS POLICE - PERSONNEL COSTS - RETIREMENT STREET MAINTENACE COSTS SANITATION COSTS INCREASE PARKS - PROGRAMS PARKS - REALLOCATION OF WAGES FIRE CONTACT OTHER NET CHANGES TOTAL CAPITAL PROJECTS INCREASE- EMERALD ASH BORE SEAL COATING /STREET IMP OTHER CAP PROJECTS STREET RECONSTRUCTION FUNDS TOTAL CHANGE IN REVENUE MARKET VALUE HOMESTEAD CREDIT (inc) FUND BALANCE USED IN 2011 NOT 2012 ADMINISTRATIVE FEE FROM UTILITIES STATE /LOCAL GRANT FUNDS REDUCED FINES AND FORFEITS OTHER NET CHANGES (inc) TOTAL CHANGE IN UTILITY FUNDING WATER SEWER 2011 2012 INCREASE BUDGETED REQUESTED (DECREASE) $ 3,440,704 $ 4,148,562 $ 707,858 $ 524,000 $ 536,000 $ 12,000 $ 3,964,704 $ 4,684,562 $ 719,858 $ 12,000 $ 10,800 $ 19,000 $ 48,000 $ 8,000 $ 7,000 $ 5,000 $ (19,000) $ (7,000) $ 8,200 $ 92,000 $ 40,000 $ 20,000 $ 5,500 $ 9,000 $ 74,500 $ (92,000) $ 100,000 $ 65,000 $ 18,000 $ 10,000 $ (4,000) $ 97,000 $ 149,000 $ 307,500 $ 456,500 $ 720,000 Recap of changes in tax levy ri O N 0 In W Q a Q r-1 r-1 N � M O .-I N N cn W X H � CO fY uj Q W Z 02 W J a W w � a Q r-j 1= o Z ^I W X go LL N W cc LL O W a N W V� 4^ 4^ 1 00 a O °0) O Ln °tj� M Ln 00 u 1 kq Q1 IR et 1% M r-i Lp -4 N kD _ dam' O M a O r N L�fl L� N N N Q cc L it N U W 0 4^ In A414,41 i/} t4 t4 i/► i? iA W J O O J H = N m Z? 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