Loading...
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 r CL 0 x m qt C. rq 0 1 0) Cir A LA CL4 01x OD C. I C) C) Ln C) CD L Oo RT m T --i R Ln C) C C CD C Ln CD L L T='CD CD CDC C C �00C m U) Ul L Ln C Ln N C CD -r-i L L n Ln C C m C Ln m v==4 . Ln N N <D CD N CD N rq i CD LL C, C: C E CD CD L1) L CD Ln Ln o .CD CD CD C'C) co r,%� a) C C C CD CD CD rq CD N � w. � � � � L L CD M � 00 WN � � a Lam} c' � � Ln Uk � N N Lt) t"� Li L1 < 43 Ul w w w 0 OD C. I C) C) Ln C) CD L Oo RT m T --i R Ln C) L Lr) C CD C) CD CD CD L Ll" ]i C C ' m U) Ul L Ln Ln 1-i OD C. I C) C) Ln C) CD L Oo RT m T --i R Ln C) m V-4 CD C) CD CD CD L Ll" ]i Ln C Oo T -1 rl ^r-1 m m C CD CD CD Ln C Ln C Oo T-1 T=i ,--� m m r -i 0 ro C 0 A C ( Ln CD LL C) C: C E c C7 ' m r -i 0 ro C 0 A ( LL C: C E c C7 ' `-J C: > (1) � 0 0 0 Cf 0 Q) W Li < 43 Ul w w w 0 C D q CT CL E CL CL c w f f\ E E< o � / a) -o ' [ m I- l < r.. ■)j x m r -i 0 ro C 0 A LM cu 0 0 0 0 0 0 0 0 C) 0 0 C 0 0 0 0 0 0 0 % 0 % 0 0 0 0 0 0 Ll) 0kn O LI) 0 Ln Ln ry) 0 0 0 C) Ln 4- 4-J til u [o a--+ 4-J 0 a) E 0 rq LL ro 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)