ITEM 4.1 Resolutions 14-81, 82IIV
ots11.1 o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
Administration
REQUESTOR:
Lori Johnson, City Administrator
MEETING DATE:
December 8, 2014
PRESENTER(s):
REVIEWED BY:
ITEM #:
Lori Johnson, City Administrator
4.1
Dan Jordet, Administrative
Services Director
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend presentation of the proposed 2015 tax levy and budgets as adopted on September 22,
solicitation of public comment, and adoption of Resolutions 2014-81 and 2014-82 setting the 2015 tax
levv and the 2015 operating budgets.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No; although, public input must be taken
BACKGROUND/JUSTIFICATION:
The City Council held seven budget meetings prior to setting a proposed payable 2015 tax levy of
$4,680,000 on September 22, 2014. This levy was set after thorough and careful consideration of the
non -tax revenues available, operating and reserve fund/capital needs, and bonded debt payment
obligations in 2015. The levy is proposed to increase $180,000 or 4%; most of that increase, 74.8%, is
due to increased bonded debt payments in 2015. The remaining increase is in the General Fund. The
proposed General Fund expenditure budget adopted in September is $4,450,667, an increase of 3.9%.
The proposed tax levy of $4,680,000 was used to calculate the proposed property taxes as shown on the
parcel specific notices sent to property owners by Wright County in November. The City Council may
adopt a final tax levy that is lower than the proposed levy adopted in September, but the Council may
not adopt a tax levy that is higher. The tax levy must be adopted by the City Council for certification by
December 29. Public input on the tax levy and budget must be taken at the December 8 meeting prior
to Council action to adopt the levy and budget resolutions.
The City has continued to grow in recent years causing an increased demand for City services and an
increase in the City's total tax base. The City's taxable market value is estimated to increase 11.24%
from $925,136,200 to $1,039,907,900. Of the total market value, $36,173,900 is from new
construction. The tax capacity is estimated by the Wright County Assessor to increase 12.6%. Thus,
although the proposed tax levy is projected to increase, the City's property value is estimated to
increase more. Therefore, the tax rate will decrease. That decrease means that property with no
market value increase or a modest increase of up to approximately 8% will will pay less in 2015 than
2014. (How much less depends upon where the value adjustment falls within that range.)
As I stated earlier, the City Council adopted a preliminary General Fund expenditure budget of
$4,450,667. Public safety contract increases for fire and police services account for 64% of the proposed
2015 General Fund budget increase. The remainder is for increased operating expenses, increased
demand for services, and additional part time staff hours.
The Water Fund and Sewer Fund budgets include rate adjustments to fund each utility's operating and
capital costs as projected in the latest rate study. The operating budget is proposed to be adopted at
this meeting with an amendment to include capital items approved in the Capital Improvement Plan
(CIP) in January following adoption by the City Council.
Finally, the CIP is currently under review and is still in draft form. It is anticipated that a final CIP will be
approved in January.
SUPPORTING DOCUMENTS: X ❑ ATTACHED D NONE
Payable 2015 Property Tax Levy and 2015 Operating Budget Information and Public Comment
Meeting Presentation
Resolution 2014 — 81; A Resolution Approving the 2014 Tax Levy Collectible in 2015
• Resolution 2014 — 82; A Resolution Adopting the 2015 Operating Budgets
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
1. Motion to approve Resolution 2014-81; A Resolution Approving the 2014 Tax Levy Collectible
in 2015.
2. Motion to approve Resolution 2014 - 82; A Resolution Adopting the 2015 Operating Budgets.
BUDGET INFORMATION
FUNDING: BUDGETED: D YES
N/A
D NO
ACTION TAKEN
D APPROVED AS REQUESTED D DENIED D TABLED D OTHER (List changes)
COMMENTS:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2014-81
RESOLUTION APPROVING 2014 PROPERTY TAX LEVY COLLECTIBLE IN 2015
WHEREAS, pursuant to Minnesota Statutes 275.065 requiring adoption of a preliminary
property tax levy by September 30 of each year the City of Otsego adopted such a levy on
September 22, 2014 for collection in 2015 to support various operating budgets of the City; and
WHEREAS, on December 8, 2014 the Otsego City Council held a public meeting at which
citizens were invited to comment on the proposed levy and resulting operating budgets for the
2015 fiscal year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OTSEGO, WRIGHT COUNTY, MINNESOTA THAT:
the following sums of money be levied for collection in 2015 upon taxable properties in the City
of Otsego for the following purposes:
General Government $4,047,000
Tax Abatement 23,000
GO Improvement Bonds 201 OD and 2011A 200,000
Public Works Building Bond 2010B 410,000
Total Tax Levy 4 680 000
ADOPTED by the Otsego City Council this 8th day of December, 2014.
CITY OF OTSEGO
Jessica Stockamp, Mayor
ATTEST:
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member•
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2014-82
RESOLUTION ADOPTING 2015 OPERATING BUDGETS
WHEREAS, on December 8, 2014 the Otsego City Council held a public meeting at which
citizens were invited to comment on the proposed property tax levy and resulting operating
budgets for the 2015 fiscal year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OTSEGO, WRIGHT COUNTY, MINNESOTA THAT:
the following sums of money be allotted for the operation of City business in the various funds
of the City during the 2015 fiscal year as follows:
General Fund Revenues:
Property Taxes
$ 3,334,000
Licenses and Permits
592,000
Intergovernmental Revenue
323,122
Charges for Service
50,700
Interest Revenue
95,000
Cable Franchise Fee
105,000
Other Revenues
149,047
Revenues
$ 4,648,869
General Fund Expenditures:
General Government
$ 1,443,074
Public Safety
1,416,360
Public Works
1,067,483
Culture & Recreation
509,650
Economic Development
14,100
Expenditures
$ 4.450,667
DEBT SERVICE FUNDS
Debt Service Fund Revenues $ 2,395,609
Debt Service Fund Expenditures $ 2,395,609
ENTERPRISE FUNDS
Water Fund Revenues — Operating $ 1,309,100
Water Fund Revenues — Non -Operating $ 292,958
Revenues $ 1,602,058
Water Fund Expenditures — Operating $ 387,324
Water Fund Expenditures — Depreciation $ 502,200
Water Fund Expenditures — Transfers & Debt $ 481,552
Expenditures $ 1,371,076
Sewer Fund Revenues — Operating $ 1,287,995
Sewer Fund Revenues — Non -Operating $ 481,833
Revenues $ 1,769,828
Sewer Fund Expenditures — Operating $ 695,893
Sewer Fund Expenditures — Depreciation $ 860,117
Sewer Fund Expenditures — Transfers & Debt $ 812,038
Expenditures $ 2,368,048
ADOPTED by the Otsego City Council this 8t' day of December, 2014.
ATTEST:
Tami Loff, City Clerk
MOTION made by Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
and SECONDED by Council Member