Attachment 1 Preparation for December 8 Tax Levy Budget Adoption0
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MINNESOTA
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: November 20, 2014
SUBJECT: Other Budget Items — Preparation for December 8 Tax Levy and Budget Adoption
Meeting
In addition to reviewing the CIP on Monday, I want to get direction from the Council on the
need for a work session the week of December 1 to review the tax levy and budgets that are set
to be adopted on December 8. As you may recall, when we set the budget calendar we left
room for an additional meeting date in case the Council wanted to review the tax levy and
budget again before the public input and adoption meeting.
Attached are the tax levy resolution and summary budget data for the preliminary budgets as
adopted in September. The tax levy and budgets attached incorporate all of the Council input
and adjustments from the work sessions leading up to the September meeting at which these
were approved by the Council. Unless you are recommending changes, staff will prepare the
final tax levy and budget for adoption on December 8 based on those amounts. If the Council
wants to make adjustments or discuss any part of the levy or budgets, a work session to do so is
recommended. This will allow staff to prepare updated documents for the final budget
meeting.
The other outstanding item yet to be finalized for 2015 is employee compensation. The Council
has previously been provided survey data on pay adjustments in surrounding cities. I have
attached another copy for your review. As you can see, several communities are playing catch
up because their pay has fallen below market. It is much more palatable to maintain rates at
market than to be put in the position of having to make large increases later to remain
competitive. Council direction on the 2015 pay market rate adjustment is requested.
Attachments: Budget Calendar
Levy Resolution
Summary Budget Data
Pay Survey
EM
2015 Budget Calendar
As Set by City Council on May 28, 2014
May 27, 2014
Kick-off buget meeting with City Council. Begin discussion of Council
priorities for tax -supported programs.
May 28 - June 30
Finance department prepares payroll projections, inputs all insurance,
utility, audit, and internal charges in budget.
June 9 - June 27
Department heads prepare and submit draft budgets including all detail
documentation.
June 30 - July 3
Copy Department head detail for distribution to Council. NOTE: This will
be raw, draft data that has not been reviewed by either the Administrative
Services Director or the City Administrator.
June 30 - July 18
Finance department reviews and enters budget data. Budget meetings
held with City Administrator, Administrative Services Director, and
department head to review draft budgets. City Administrator and
Administrative Services Director review reserve and debt service fund
budgets and cash flow projections to make levy recommendations.
July 21, 5:30
Council work session to discuss tax levy implications and debt service
requirements.
August 4, 5:30
Distribute draft budget to City Council. Review revenues and
Administration and Finance related departments
August 11, following regular
Council Budget Work Session
meeting
August 25, following regular
Council Budget Work Session
meeting
September 8, following regular
Council Budget Work Session
September 15, 5:30
Council Budget Work Session review of previously presented department
requests; Council direction to staff with Council changes to draft budget
and proposed tax levy
September 22
Adopt proposed levy and certify to Wright County
October
Utility budgets due. Draft CIP prepared.
November
City Council work sessions to review utility budgets, CIP, and to review
previously presented General, Reserve, and Debt fund budgets and tax
levies.
December 1
Council Budget and CIP Work Session if needed
December 8
Hold public input budget meeting. Adopt final tax levy, all budgets and
CIP.
June 9, 2014
By Department
General Fund Revenue;
Administration; Finance
Public Safety (Police, Fire, Emergency
Management); Planning; HPC,
Streets; Fleet Maintenancel
Engineering; Facilities (City Hall and
Old City Hall)
Park Maintenance; Recreation;
Review of all departments
RESOLUTION NO. 2014-65
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
A RESOLUTION SETTING A PRELIMINARY PROPERTY TAX LEVY FOR
TAXES PAYABLE IN 2015
WHEREAS, the Otsego City Council is required by State law to establish a preliminary tax
levy for taxes payable in 2015 by September 30, 2014 and certify the preliminary tax levy to
the Wright County Auditor; and
WHEREAS, the Otsego City Council has reviewed the City's anticipated expenditures for
funds using property tax proceeds in 2015; and
WHEREAS, the Otsego City Council has considered projected revenues for funds using
property tax proceeds in 2015; and
WHEREAS, revenues from sources other than property taxes are not sufficient to meet the
anticipated expenditures of said fiends; and
WHEREAS, the debt levies have been adjusted or cancelled based on revenue collections
and projections.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OTSEGO, MINNESOTA:
That the following amounts are the maximum to be levied as property taxes payable in 2015
for the following purposes:
General Government $4,047,000
Tax Abatement 23,000
GO Improvement Bonds 201 OD 36,032
GO Improvement Bonds 2011A 163,968
Public Works Building Bond 2010B 410,000
Total Tax Levy 4 680 000
2. That said levy is a preliminary levy as required by State Law and establishes a maximum
levy amount for property taxes payable in 2015.
3. That a copy of this resolution be transmitted to the Wright County Auditor.
4. That a preliminary General Fund budget of $ 4,648,869 in revenues supporting $ 4,450,667
in expenditures be adopted subject to change at the final adoption of 2015 operating and
capital budgets.
MOTION BY: Schroeder
SECOND BY: Heidner
ALL IN FAVOR: Stockamp, Schroeder, Heidner, Darkenwald, Warehime
THOSE OPPOSED: None
ADOPTED by the City Council of the City of Otsego this 22nd day of September 2014.
ATTEST:
Tauri Loff, City Cleric
2
CITY OF OTSEGO
Je sica Stockamp, Mayor
CityOtsego
Calculation of Property Tax Levy Options
for taxes payable 2015
Adopted
Beginning
Pay 2012
Pay 2013
1
General Fund Levy
2,831,000
3,213,145
2
Fire Reserve Levy
480,000
140,000
3
Storm Sewer Levy
-
57,765
4
Pavement Management Levy
300,000
300,000
5
Park Trail Management Levy
25,000
25,000
6
Capital Equipment Revolving Fund Levy
150,000
175,000
7
Parks Capital Equipment
50,000
25,000
8
Subtotal: Other Limited Levies
1,005,000
722,765
9
Subtotal: Limited Levy
3,836,000
3,935,910
10
2007B GO Improvement Bonds
-
-
11
2010A GO Equipment Certificate
-
-
12
20108 GO Building Bonds
150,000
150,000
13
2010D & 2011A GO Improvement Bonds
-
-
14
2003A Improvement Bonds
100,000
100,000
15
2004A Improvement Bonds
75,000
75,000
16
2006B Improvement Bonds
100,000
100,000
17
Subtotal: Bonded Debt Levies
425,000
425,000
18
Tax Abatement
-
17,000
19
TOTAL: Certified Levy
4,261,000
4,377,910
20
Dollar Increase
116,910
21
Percentage Increase
2.74%
Adopted
Beginning
Pay 2014
Pay 2015
3,273,715
3,319,000
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
728,000
4,001,715
4,047,000
200,285
410,000
-
200,000
100,000
-
75,000
(100.00%)
100,000
-
475,285
610,000
23,000
23,000
4,500,000
4,680,000
122,090
180,000
2.79%
4.00%
Dollar Percentage
Change Change
45,285
1.38%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
-
0.00%
45,285
1.13%
-
0.00%
-
0.00%
209,715
104.71%
200,000
0.00%
(100,000)
(100.00%)
(75,000)
(100.00%)
(100,000)
(100.00%)
134,715 28.34%
- 0.00%
180,000 4.00%
C:\Users\Dan\Documents\2015 Budget\Property Tax Levy Pay 2015 first run w debt 11/20/2014
City of Otsego
General Fund Budget
for the year ending 31 December 2015
Revenues:
Taxes
Licenses and Permits
Intergovernmental Revenue
Charges for Service
Interest Revenue
Cable Franchise Fees
Other Revenues
TOTAL Revenues:
Expenditures:
General Government.-
City
overnment:City Council
Administration
Elections
Assessor
Finance
Legal
Information Technology
City Hall
Planning
Building Inspection
Subtotal. General Government.-
Public
overnment:
Public Safety:
Police
Police Commission
Fire
Emergency Management
Animal Control
Subtotal. Public Safety:
Public Works:
Streets
Engineering
Street Lights
Fleet Maintenance
Subtotal: PublicWorks
Culture & Recreation
Park Maintenance
Recreation
Prairie Center
Subtotal: Culture & Recreation:
Economic Development
Transfers Out/(In)
TOTAL Expenditures.-
NET
xpenditures:NET GENERAL FUND:
Preliminary
2011 2012 2013 2014 2015
Actual Actual Actual Budget Proposed
3,343,665
3,139,130
3,366,010
3,273,715
3,334,000
304,084
563,077
830,076
557,300
592,000
199,053
208,822
217,630
316,611
323,122
96,204
62,163
38,321
65,650
50,700
118,186
92,134
(4,766)
100,000
95,000
100,176
106,547
83,681
105,000
105,000
282,796
66,553
72,924
143,736
149,047
4,444,164
4,238,426
4,603,876
4,562,012
4,648,869
49,950
51,273
44,216
74,547
82,317
295,869
376,582
339,696
391,860
415,273
390
24,334
1,486
26,200
745
67,935
67,904
67,463
70,300
74,700
176,950
239,680
242,381
321,187
342,703
95,239
71,305
78,996
75,000
82,000
-
35,108
22,760
47,628
66,300
721
716
71,270
81,255
82,063
91,753
86,356
70,016
73,400
67,250
454,415
204,926
181,882
231,692
229,723
1,233,222
1,158,184
1,120,166
1,393,069
1,443, 074
861,410
875,045
882,601
912,500
941,700
1,191
1,372
1,399
1,350
1,350
-
347,922
365,873
375,850
454,560
-
728
2,950
8,550
7,450
15,274
10,915
11,058
11,000
11,300
877,875
1,235,982
1,263,881
1,309,250
1,416,360
1,285,891
760,656
678,991
630,610
681,123
147,421
128,714
160,825
85,000
85,000
97,046
108,775
109,667
110,000
114,100
-
-
148,131
191,630
187,260
1,530,358
998,145
1,097,614
1,017,240
1,067,483
346,350
193,455
166,490
294,880
343,851
41,736
86,162
115,471
156,089
130,177
58,888
39,134
20,220
32,647
35,622
446,974
318,751
302,181
483,616
509,650
12,353
2,649
3,286
13,790
14,100
556,941
115,000
-
65,911
-
4,657,723
3,828,711
3,787,128
4,282,876
4,450,667
213,559
409,715
816,748
279,136
198,202
C:\Users\Dan\Documents\2015 Budget\GF Summary 2015 Sept Comparison 11/20/2014
2015 Salary Survey of Surrounding Communities
2015
Increase Comments
Albertville
2.00%
included in budget
Buffalo
up to 3%
final approval in December
Elk River
2.00%
included in budget
Big Lake
2%+
2% approved plus adjustments from consultant pay study may be made.
St. Michael
2.00%
included in budget
Monticello
3.10%
included in budget
Rogers: non -supervisory
2.00%
included in budget for all full time non -supervisory personnel
Rogers: supervisory
2.50%
included in budget for all supervisory and part time personnel