ITEM 5.1 Resolution 13-50P,
ot0
C1 0,
F11Nt4ES0TA #g
DEPARTMENT INFORMATION
Request for
City
Council
Action
ORIGINATING DEPARTMENT:
Administration
REQUESTOR,
Lori Johnson, City Administrator
MEETING DATE:
September 9., 2013
PRESENTER(s):
REViEWED BY:
ITEM #:
Dan Jordet, Administrative
Lori Johnson, City Administrator
5.1- Resolution Setting a
Services Director
Preliminary Property Tax Levy for
Taxes Payable in 2014
AGENDA ITEM DETAILS
It is recommended that the City Council consider the attached resolution establishing apreUm|nary
property tax levy of $ $/,539,28Sfor taxes payable |n2O14and establish apublic meeting on2O14
ARE YOU SEEKING APPROVAL oF Aoowrnxorr
No
IS APUBLIC HEARING REQUIRED?
No
oxcmonoumDuuorIpICAr/om:
Each year the City of Otsego is required to adopt a preliminary property tax levy payable in the ensuing
year. The levy must be adopted and delivered to the Wright County Auditor no later than September 15
of each year so that the County may prepare parcel specific notices of property taxes for Otsego
property owners. This levy, when adopted, becomes the maximum levy permitted tothe City ofOtsego
for the 2014 fiscal year. It may be reduced prior to adoption of the final levy in December but may not
be increased.
|nJanuary the City Council met todiscuss strategic goals for the community. Four goals were affirmed
as a result of that discussion. They are:
n Expand the City's commercial -industrial tax base
0 Assess the efficiency and effectiveness of City services
0 Review Public Safety services
a Define and manage the City's image and identity
The proposed levy and the resulting General Fund budget for 2014 reflect those strategic priorities |n
the financial plan assembled for City operations |n2014.
Department heads were invited to discuss their budget proposals with the City Council at several
meetings throughout the summer, Through these meetings the City Council came tounderstand the
proposed budget numbers and the Directors came tO Understand the City Council's priorities.
For taxes payable |n2014, the Minnesota Legislature imposed alevy Umit based onacalculation
above and beyond the levy limit. The City Council chose to keep its proposed levy under the legislatively
established limit by $ 336,910, a savings of 6.91% % under the maximum levy amount. The proposed
levy is $ 4,539,285,onincrease of $ 161,38or3.69% over 2013. This levy will beused to fund general
operations, fund reserves for maintenance streets and trails, provide funding for equipment
replacement, pay outstanding debt of the City, and build a reserve for future public safety construction
needs. italso includes a tax abatement levy of$Z8,OOO.
The attached resolution isbased ondiscussion atthe August 26 2Ol3Council Special Meeting
suggesting that areduction ofthe levy bv$1OO,OOOwould beappropriate. Should the Council wish to
further modify the levy up or down such action should be incorporated into the attached resolution at
this time.
A public meeting will be held on Monday, December 9, 2013 at 7:00 PM togive citizens and taxpayers
the opportunity to comment on the proposed levy budgeted operational expenses. Between now and
that meeting, staff and the City Council will continue to review and refine budget plans prior to
consideration ofthe final adoption ofthe levy onthat date.
SUPPORTING DOCUMENTS: :/nTAoHEo ii NONE
w Chart showing historical levies for 2012, 2013, and proposed and max[rnurn levies for 2014.
w
Chart showing proposed revenues and expenditures allotments for a 2014 General Fund budget
based on the proposed levy.
w Graph ofproperty tax levy trends.
• Resolution 2013-50 setting a Preliminary Property Tax Levy
POSSIBLE 01Or~IO^x
Please word motion as you would like it to appear in the minutes.
Motion to adopt Resolution 2013-50 Setting a Preliminary Property Tax Levy for $ 4,539,285 for
Property Taxes Payable hn2Ql4.
Motion to set a public meeting on the property tax levy for taxes payable in 2014 and operating budgets
|
for 2014 for Monday, December 9, 2013 at 7:00 PM in the Prairie Center in Otsego, M N |
BUDGET INFORMATION
Fuwo/mo:
General Fund Proposed Revenues: $3,623,774
General Fund Proposed Expenditures: $ 3,623,774
ACTION TAKEN
oAPPROVED AoREQUESTED oosw|so olABLEo
ooMmsmrn
ouooErsD: ovEa
xNOT APPLICABLE
ooTHEn(List changes)
Oit�t
Assignment:
Reduce the property tax levy by $ 100,0008
Levy Discussed on August 26, 2013: 4,.639,725
Changes:
Excess Revenues Projected
42;479 to Zero
Move Utility Locate fees to Utilities
10,000
Additional Transfer for Storm Water work
to be performed by Streets.
(original amount $ 30Y000)
18,000 new total $ 48,,000
Wage Transfer for support to Building Safety
5"000
Additional Administrative Support
contribution to GF from Utilities
5;000 new total $ 27,000
Use of LGA for current operations
20jO00
Balancing Entry to Finance
(39)
Subtotal Changes:
$
100,440
Resulting Levy on September 9, 2013:
$
41539,285
Composition of Resulting Levy by use:
General Fund Portion
$
31313,000
Reserve Fund Levies
728,000
Debt Service Levies
475,285
Tax Abatement Levy
23y000
$
41539,285
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City of Otsego
Ot§e General Fund 8udget
__ go for the year ending 31 December 2014
Reventies:
Ad Valorem Property Tax
Licenses and Permits
Intergovernmental Revenue
Charges for Service
Interest Revenue
Cable Franch[se Fees
Other Revenues
TOTAL Revenues-.
Expenditures:
General Government:
City Council
Administration
Elections
Assessor
Finance
Information Technology
Legal
if Hall
Old Town Site
Planning
Planning Commission
Subtotal: General Government.p
Public Safety:
Police
Police Commission
Fire
Emergency Management
Animal Control
Subtotal.- Public Safety. -
Pub fic Works:
Streets
Engineering
Street Lights
Peet Maintenance
Subtotal: Pub ficWorks
Culture & Recreation
Park Maintenance
Recreation
Prairie Center
Heritage Preservation Comm.
Actual Budget Proposed
2012 2013 2014 $ Change %Charge Notes:
31139i131
31213,145
3,313,000
99}855
3.11%
33,915
28,000
28JO00
-
0.00%
2081822
2021875
316,611
1133736
56.06%
60,253
57,000
65 650
80650
15.18%
92,134
100,000
1001000
y
.00%
106,547
1 OOPOOO
105,000
5,000
5.00%
351164
500
-
(500)
(100.00
x}196631701o520
78,685
31928,261
226,741
6.13%
51,273
623950
74,760
11,800
18.75%
3673022
356,290
392,775
37t485
10.55%
243334
685
271100
26t51 5,
4532.48%
673904
68,260
'701300
2$050
3.00%
2393680
2431945
278P939
34,994
14.35%
44,669
46,850
48P000
1,150
2.45%
71,305
700000
75tOOO
5,000
7.14%
-
78,685
79875
1,190
1.51%
716
2,000
2,000
100.00%
85,126
801000
71,700
(81 300)
(10.38%)
1,2x0
11680
11700
20
1.19%-
953,259
111008j235
111223139
113,904
11.30%
875P046
883j300
912,500
29,200
3.31%
1)372
11370
11350
(20)
(1.46%)
347922
355PIDOO
375,850
20,850
5.87%
728
6l5OO
8,550
2�050
31,54%
10,915
17l500
13o5OO
(41000)
(22,86%)
11235,982
11263,670
1,311)750
48,080
3.80%
760,656
510,240
644,296
134,056
26.27%
128,713
117,000
85,000
(32,000)
(2-7-35%)
108,775
105,000
1105000
51000
4.76%
M
2 0974 60
194,400
(15,060)
.19%)
998,144
9411700
11033,696
910996
9.77%
$ 112,711 LGAy $ 20,000 used for GF operations
grovith in recreation program fees
contingency to $ 40,000 from $ 31,200
$
6,000 pt sta ff i ng, $ 2 0,1 0 Laserf i & e web acces s
ballots, election judges for 2014 primary and general elections
allocation of staffing costs
includes GIS
contractual legal services
building not demolished, need upkeep allotment
$ 6,700 code enforcement software
addktional operating supplies and contracted services
lower appropriation for historical costs
$ 10,600 staffing re-a[lotment, $ 5,921 SUrnmer seasonal pt staff
$ 32,000 net reduction for in-house locates; move to utilities
insurance allocation reduction
19 524 56
291,655
297P850 61195 2.12%
83,016
1371110
1530900 16?790 12.25% pt staffing for additional programs
393134
4316-00
34,050 (91450) (21.72%) removal of staffing allotment
13134
11250
1,250 0.00%
1.
RE SOLUTION NO. 2013-50
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
A RE,SOLUTION SETTING A PRELIMINARY TAX LEVY OF $4,5^285 FOR
PROPERTY TAILS PAYABLE 12 414
WHEREAS, the Otsego City Council is required by State law to establish a preliminary tax
levy for taxes payable in 2014 by September 15, 2013 and certify the preliminary tax levy to
the Wright County Auditor; and
WHEREA AS, the Otsego City Council has reviewed the City's anticipated expenditures for
funds u si ng prop erty tax proceeds in 2014; and
WHEREAS, the Otsego City Council has considered projected revenues for Rinds using
property tax proceeds in 2014; mid
WHEREAS, revenues fron-i sources other than property taxes are not sufficient to meet the
anticipated expenditures of said ffinds; and
WHEREAS, the debt levies have been adjusted or cancelled based on revenue collections
and projections.
NOW, THERE, FORE, , BE IT RE, SOLVE D BY THE, CITY COUNCIL OF THE CITY
OF OTS O, MINNESOTA:
That the following amounts are the maxis ium to be levied as property taxes payable in 2014
for the following Purposes:
General Govertmient $4,041 NO
Tax Abatement 2300
GO Improvement Bonds 2003A 100,000
GO Improvement Bonds 2004 755000
GO Improvement Bonds 2006B 100M00
Public Works Building Bond 2010B 200
Total Tax Levy $4.539,285
2. That a copy of this resolution be transmitted to the Wright County A -editor.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 9t" day of
September 2013.
ATTEST:
Taim Luff, City Clerk
2
CITY OF OTSEGO
Jessica Stockcpm p, Mayor
CITY OF
MINNESOTA
City of Otsego
L7..
0,11 (�71 lil"I
onc,ldy, 9Sep--tember 2�13
Assignment. Reduce the property tax levy by $100,000.
Levy Discussed on August 26, 2013:
Changes.
Excess Revenues Projected
Move Utility Locate fees to Utilities
Additional TransferforStorm Waterwork
to be performed by Streets,
(original amount$ 30,000)
Wage Transfer for support to Building Safety
Additional Administrative Support
contribution toCFfrom Utilities
Use of LGA for current operations
Balancing Entry to Finance
Subtotal Changes:
Resulting Levy on September9, 2013:
41639,725
421479 to Zero
10,000
18,000 new total $ 48,000
5/000
51000 new total $ 27,000
20)000
X39)
100,440
41539,285_
Composition of Resulting Levy by use.
General Fund Portion
Reserve Fund Levies
Debt Service Levies
Tax Abatement Levy
$ 3,313,000
728,000
475,285
23,000
$ 4,539,285
City of Otsego
OtSIla
0 Q�O Calculation of Property Tax Levy Options
„
., for taxes payable 2014
Pay 2012 Pay 2013
General Fund Levy 2,831,000 3,213,145
Fire Reserve Levy
480,D00
140,000
Storm Sewer Levy
N
57,765
Pavement Management Levy
300,000
300,000
Park Trail Management Levy
25,000
25,000
Capital Equipment Revolving Fund Levy
150,000
175,000
Parks Capital Equipment
50,000
25,000
Subtotal: Other Limited Levies
1,005,000
122,765
TOTAL: Limited Levy 3,836,000 3,935,910
Building Bonds 150,000 150,000
2003A Improvement Bonds 100,000 100,000
2004A Improvement Bonds 75,000 75,000
2006B Improvement Bonds 100,000 100,000
Subtotal; Bonded Debt Levies 425,000 425,000
Tax Abatement - 17,000
TOTAL: Certified Levy 4,261,000 4,377,910
Dollar Increase 116,910
Percentage Increase 2.74°/o
Proposed
Maximum
Pay 2014
Pay 2014
3,313,000
3,649,910
145,000
145,000
25,000
25,000
320,000
320,000
25,000
25,000
160,000
160,000
53,000
53,000
728,000
128,000
4,041,000
4,311,910
200,285
200,285
100,000
100,000
75,000
75,000
1001000
100,000
475,285
975,285
23,000
23,400
4,539,285
4,876,195
161X�
498,285
3.69%
11 38%
Property Tax Levy 20
5,000,000
41500,000
41000,000
31500,000 -
3,000,000 _ -- - -
21500,000
21000,000 -
11500,000 -
1,000,000
500,000 -
2012 2013 2014
s_ General Fund Leery ==Reserve Levies )Debt Levies ==Tax Abatement Levy -)Total Certified Levy
) Cityof Otsego
oto- ' General Fund Budget
......gO for the year ending 31 December 2014
Expenditures:
General Govemment:
Actual
Budget
Proposed
291200
3.31%
2012
2013
2014
$ Change
% Change Notes:
Revenues:
contingency to $ 40,000 from S 311,200
Administration
367,022
355,290
392,775
/W Valorem Propeq Tax
3,139,131
31213, 1145
3,313,00
99,855
3,11%
1-0flses and Permits.
33,915
28P004
26,000
Assessor
0,001A
hterpmrnenlal Revenue
2081822
202)875
318,811
113,736
66.06% 112,711 LGA $ 20,000 used for GIF operations
Charges for Service
84,263
57,000
65,90
8.650
15.181/o grovA in recreallon program fees
Interest Revenue
92,134
100,000
100,00
1,104
0.001/0
Cable Franchise Fees
106,647
10,000
105,000
51000
5. W-10
Mer Revenues
35,164
500(500)
128,713
78,685
(100.00010)
TOTAL Revenues:
3,678,966
3,701,520
3,926,261
226,741
6,13%
Expenditures:
General Govemment:
815,045
883,300
912,500
291200
3.31%
Cid Council
51,273
62,950
74,760
11,800
18.75110
contingency to $ 40,000 from S 311,200
Administration
367,022
355,290
392,775
37,485
10.55%
$ 6,000 pt staffing, $ 20,100 Laserfiche vieb access
Elections
2413N
59
27,100
26.515
4532.46%
Mots, election judges for 2014 primal and general elecbs
Assessor
67,904
68,250
70,300
2,080
3.001/0
lower appropriation for historical osis
Finance
239,680
243,945
278,939
34,994
14,351/o
vocation of staffing costs
Information Technology
44,669
46,850
48,000
1,104
2.45%
includes GIS
Legal
71,305
70,000
75,000
5,000
7:14%
contractual legal services
City Hall
128,713
78,685
70,875
1)190
1.51%
$ 32,00 reel reduction for in-house locates; move to utilities
Old Town Site
716
105100
2,000
2,040
100.001
building not demolished, need upkeep all.otmenl
Planning
65,126
80%
71,700
(81300)
(10.38%)
$ 6,700 code enforcement software
Planning Commission
1,230
11680
1,700
20
_1.19%
Subtotal., General Govemment 953,269 1,098,235 11t221139 113,944 11.30%
Pubic Safety"
Police
815,045
883,300
912,500
291200
3.31%
Police Commission
1,372
1,370
1,350
(20)
(1.46%)
Fire
347,922
355,000
375,850
20,850
5.87%
Emergency Wagerneni
728
61500
81550
2,054
31.54%
addlitional operating suffies and co*acted services
Animal Control
10,915
17,500
13,500
(4,000)
(22,86%)
lower appropriation for historical osis
Subtotal., Pubu'c Safety,-
11235,982
11263,670
113 111 1750
48,080
3. 6 Ho
PuMc Works:
Streets
760,656
510,240
644,296
134,056
26,27%
$ 101609 staffing re.Mohen( $ 5,921 summer seasonal pt staff
Engineering
128,713
117,00
85ffl0
(32,000)
(27.35%)
$ 32,00 reel reduction for in-house locates; move to utilities
Street Lights
I081775
105100
110,000
5,030
4.761/o
Fleet Wintenance
209,460
194,400
(15,060)
(7,19%)
insurance allocation reduction
Subtotal., PubdkcWAs
998,144
941,70
1,033,696
91,996
9.71%
Culture & Recreation
Park Wnteflance
195,456
291,655
297,80
6.195
2,12%
Recreation
03,016
137,110
153,900
18,790
12.25%
pt staMng for additional programs
Prairie Date(
39,134
43,500
34,060
(9,450)
(21,72%)
fernoM of staffing allolmenl
Heritage Preservaliori Comm.
1,134
11250
1,254
-
0.00%
Subtotal, Culture & Recreation,
318,740
473,515
497,450
13,635
2,86%
Economic Development
Transfers Oull(h)
TOTAL Expendlitures:
Ues Tax ExemplJon Savings
NET GENM FUND:
2)649 14,400 13,804 (600) (4.17%)
115,000 (14,089) $ 65,911 LGA out, $ 80,400 staff support. from other funds (h)
3,623,774 31701,520 31954,346 2660915 7.21%
62,192
(26,085)