Memo - Budget for 2006
CITY OF HOPKINS
FINANCE DEPARTMENT
MEMORANDUM
Date: August 19,2005
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: 2006 Budget Discussion - Round 2
This work session is to provide more information to the council as we work towards finalizing our
preliminary levy for the September 6th Council meeting.
A preliminary budget for the general fund is attached along with the tax impacts. Staff is
continuing to refine the budget and we will have a more involved discussion at the August 30th
work session with regards to significant changes to departmental budgets. This budget currently
does not include any of the personnel requests made during the pre-budget meetings. As the
departmental budgets are refined and we meet with those department managers a recommendation
will be brought to the council on August 30th for further direction from you.
As additional tax information is received from Hennepin County we are able to get a better feel
for what implications our levy needs will have on the citizens. Fiscal disparity figures for 2006,
which has an impact on our final tax capacity and therefore our tax rate, are not yet available.
Estimates have been used when determining the preliminary levy. The second spreadsheet in the
packet shows the components of the levy and the estimated tax capacity rate.
The final two spreadsheets are estimations ofthe tax impact on the taxpayers. Keep in mind that
the tax rate proposed is a tax rate DECREASE even though the actual taxes increased. This is due
to the increase in value of individual properties.
%
Change
5.37%
0.32%
3.50%
-55.61%
3.45%
0.31%
4.48%
4.27%
5.46%
#DIV/O!
4.45%
1.00%
5.00%
-95.20%
0.31%
PROPOSED
2006
BUDGET
$ 7,273,078
399,900
630,000
110,000
227,027
9,700
300,000
8,949,705
6,703,637
3,180,784
400,000
-
10,284,420
(1,354,715)
8,929,705
20,000
8,949,705
(0)
$ 4,071,296
2005
BUDGET
2004
ACTUAL
2003
ACTUAL
2002
ACTUAL
Fund Budget
SOURCE
Current Revenues
General
7,273,078
379,510
627,975
11 0,000
219,350
21,851
290,000
8,921,764
(1,341,302)
8,504,764
417,000
8,921,764
6,416,183
3,050,591
379,292
9,846,066
$
6,372,727
743,812
687,655
48,919
277,206
56,283
242,431
8,429,033
(1,321,365)
7,832,240
313,408
8,145,648
6,291,222
2,780,197
82,186
9,153,605
$
5,932,258
1,094,005
773,539
101,647
333,085
9,783
(1,265,183)
7,671,209
161,600
7,832,809
8,244,317
6,259,361
2,400,725
276,306
8,936,392
$
5,799,310
1,522,152
583,667
116,211
295,001
16,019
8,332,360
(1,248,954)
8,099,108
55,378
8,154,486
6,111,391
2,449,202
701,283
86,186
9,348,062
$
CURRENT PROPERTY TAX
INTERGOVERNMENTAL REVENUE
LICENSE, PERMITS & FINES
INVESlMENT EARNINGS
CHARGES FOR CURRENT SERVICES
OlliER REVENUES
FRANCHISE FEES
TOTAL REVENUES
SALARIES AND EMPLOYEE BENEFITS
MATERIALS, SUPPLIES AND SERVICES
CAPITAL OUTLAY
CAPITAL IMPROVEMENTS
TOTAL
LESS EXPENDITURES CHARGED TO
OTHER ACTIVITIES
NET TOTAL
OlliER FINANCING USES
TOTAL EXPENDITURES
Current Expenses
4,071,296
$
283,385
4,071,296
$
411,508
3,787,911
$
177,874
3,376,403
$
FUND BALANCE
Total Fund Balance
CHANGE IN
CITY OF HOPKINS
INCLUDES GENERAL FUND, DEBT SERVICE, HOUSING & REDEVELOPMENT and PERA
HISTORIC, CURRENT AND PROJECTED TAX LEVIES AND CITY TAX RATES
Total City
Levy Total Levy Tax Tax Gross
Payable Before Tax Capital HRA Debt PERA Levy Capacity Tax Levy
Years Credits Can.citv '=m Tax Levy Tax Levy Tax Levy After Credits Rate Increase
12005/06 8,615,078 15,914,270 25,000 20,000 1,297,000 U,815 7,581,204 47.638% 6.10%1
2004/05 8,120,078 14,655,800 25,000 10,000 812,000 U,815 7,172,029 48.936% 5.40%
2003104' ** 7,704,136 U,901,703 1,038,000 11,815 6,767,872 56.865% 7.48%
2002/03' · 7,168,252 U,140,721 106,000 883,000 U,815 6,348,865 56.988% 8.76%
2001102' 6,591,140 10,658,607 100,000 342,000 U,815 5,850,4 U 54.889% 9.78%
2000/0 I 6,003,993 13,451,366 342,000 4,314,233 32.073% 6.00%
1999/00 5,664,144 12,526,355 330,000 4,022,438 32.112% 5.23%
1998/99 5,382,640 U,749,302 330,000 3,811,583 32.441% 3.63%
1997/98 5,194,184 U,936,742 330,000 3,635,016 30.452% 0.30%
1996/97 5,178,800 13,194,123 739,663 3,647,887 27.648% 1.21%
1995/96 5,U7,000 12,902,081 578,574 3,682,276 28.540% 3.30%
1994/95 4,953,600 12,981,406 573,947 3,510,380 27.042%
· NO HACA
.. First portion of new facility bonds levied
"'Levy for second portion of new f.cility bonds and no local government aid.
In 2002 the legislature removed HACA from the aids to local governments and reallocated it to school districts.
In 2003 the city implemented the initial debt service levy to pay for the facility projects.
In 2004 the legislature eliminated local government aids to the City of Hopkins
In 2005 the Limited Market Value Credit is being gradually phased out.
CITY OF HOPKINS
ANALYSIS OF TAX LEVY
Purpose
General Operations
General Fund
Other Levies:
PERA Levy
Capital Levy
HRA Levy
Total General Levy .
Special Levies:
GO Bonds
Improvement Bonds
HRA Revenue Bonds
Subtotal - Special Levies
TOTAL LEVIES
Increase over prior year
Percentage Incr (Deer) - Total
Tax Capacity Rate
Percentage Incr/Decr in Tax Capacity Rate
~
. Included in Operating Levy on Tax Statements
(1) First portion of new facility bonds levied
(2) Second portion of new facility bonds and no LGA
2003 2004 2005
$6,167,437 $6,654,321 $7,261,263
$11,815 $11,815 $11,815
$0 $0 $25,000
$106,000 $0 $10,000
$6,285,252 $6,666,136 $7,308,078
$190,000 $210,000 $190,000
$143,000 $150,000 $147,000
$550,000 $678,000 $475,000
$883,000 $1,038,000 $812,000
$7,168,252 $7,704,136 $8,120,078
(2) (3)
$577,112 $535,884 $415,942
8.76% 7.48% 5.40%
56.099%
56.664%
48.936%
4.167%
(1)
1.007%
(2)
-13.638%
2006
Net Levy
Proposed
$7,261,263
$11,815
$25,000
$20,000
$7,318,078
$180,000
$147,000
$970,000
$1,297,000
$8,615,078
$495,000
6.10%1
47.638% est
-15.929%
CALCULATIONS FROM 8'l>-2005 BUDGET WORK SESSION
City of Hopkins
Comparative Taxable Market Value and Tax Capacity
200212003
Market Value Tax Capaci'
110,538,900 2,071,941
140,390,300 2,760,995
523,664,300 5,334,583
188,644,900 3,234,366
160,000 2,400
2003/2004
Market Value Tax Capaci'
120,201,700 2,268,049
148,475,800 2,922,538
667,896,200 6,777,325
230,461,000 2,880,801
215,000 3,225
2004/2005
Market Value Tax Capacil
138,978,300 2,641,679
152,214,200 3,037,037
789,597,600 8,023,382
248,472,000 3,105,942
225,000 3p5
2005/2006
Market Value Tax Capaci'
152.278,100 2,906,994
162,976,200 3,211,709
888,378,000 9,064,487
247,902.600 3,098,824
243pOO 3,645
Commercial
Industrial
Residential
Apartments
Miscellaneous
3,404,285
963,398,400
14,851,938
1,167,249,700
16,811,415
1,329,487,100
18,285,659
,451,777,900
Total
10.80%
21.16%
3.19%
3.90%
8.77%
9.20%
Percentrage Incl
56.099
7,168,252
56.664
7,704,136
48.944
8,120,078
48.944
8,831,973
~
If rate was same as 2005
Tax Rate
Total Levy
Increase over 2005
711,895
Tax Rate. est
44.467
45.087
45.707
46.327
46.947
47.567
48.187
48.807
Le'
8,120,000
8,220,000
8,320,000
8,420,000
8,520,000
8,620,000
8,720,000
8,820,000
20Q6_ Law Ootlons
Increase ~ none
Increased - $100,000
Increased - $200,000
Increased - $300,000
Increased - $400,000
Increased - $500,000
Increased - $600,000
Increased - $700,000
,430
802
43,000
10%
,630
924
122
163,000
11%
,874
917
(7)
87,400
15%
2,180
218,000
16%.
Average Residential Home
Percentage Increase
City Taxes w/o MVHC
Increase
$187,400 Avg Valued Home
with NO Value Increase
City Taxes 'Jlcr over 2005
833 (84)
845 (72)
857 (61)
868 (49)
880 @
891 ~
903 (14)
915 (3)
Average Valued Home
City Taxes Incr over 2005
969 52
983 66
996 79
1,010 93
1,023 106
1,037 120
1,050 133
1,064 147
Taxes w/o MVHC
Increase in Levy - none
Increased - $100,000
Increased - $200,000
Increased - $300,000
Increased - $400,000
Increased - $500,000
Increased - $600,000
Increased - $700,000
2006
from Taxable Market Value of city
Assumptions used for calculating tax rate
Fiscal disparity distribution remains the same
Tax Increment value remains the same -this is a deduct
CITY OF HOpKINS
ESTIMATED PROPERTY TAX IMPACTS FOR CITY LEVY'S
RESIDENTIAL HOMESTEAD PROPERTY
City Increase City Increase City Increase
2003 Taxes - over 2004 Taxes over Al\Ilual 2005 Taxes over Annual
Market Payable Previons Market Payable Previous % Market Payable Previous %
Value 2004 Year Value 2005 Year ,S.hange value 2006 Year Change
~ - - -- - - -
$124,315 $704 $82 $142,962 $700 -$5 -0.6% $164,407 $783 $84 10.7%
$164,417 $931 $108 $189,079 $925 _$6 -0.6% $2\7,441 $1,036 $111 10.7%
$245,956 $1,393 $161 $282,850 $1,384 -$9 -0,6% $325,277 $1,550 $165 10,7%
$371,608 $2,105 $244 $427,349 $2,091 _$14 -0.6% $491,452 $2,341 $250 10.7%
MONTHLY COST OF LEVY $59 $58 $65
MONTHLY COST OF LEvY $78 $77 $86
MONTHLY COST OF LEvY $116 $115 $129
MONTHLY COST OF LEvY $175 $174 $195
ASSUMES A 12% INCREASE IN J:vl.AlU'ET V ALUB FROM 2002 TO 2003
ASSUMES A 15% INCREASE IN MARlO'T V ALUB FROM 2003 TO 2004
ASSUMES A 15% INCREASE IN MARlO'T V ALUB FROM 2004 TO 2005
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",_";O,,,,,,"'Tl',,x "",crs ,OR crf'i LBV"S
COMJvl.ERCvJ-- _ j]:IDDS'fRlA'L l'ROl'ER'f'i
Increase Ci.ty In.c;s:ea~e
CM Increase City 'fa"es ./I,{Illusl
./I,{Illua1 2005 over
2004 Ta"es over
2003 Ta"es over l'ayable previous %
Market l'ayable l'revious % Market
Market l'ayable previouS Value ~ year _cnan.3'-
~~~ ~~ ~ ~ .-::.:=-- ~ -
$181,627 $1,373 $50 3.8%
$172,649 $1,323 _$112 _7.8%
$164,115 $1,435 $102
_$231 _8.5% $3(}8,765 $2,585 $79 3.2%
$278,996 $2,737 $142 $293,503 $2,506
_$662 _8.9% $768,886 $6,968 $182 2.7%
$694,754 $7,449 $350 $730,881 $6,786
_9.0% $1,537,773 $14,294 $354 2,5%
$1,389,507 $15,322 $699 $1,461,761 $13,940 _$1,382
$110 $114
}AoN'l'fl'L y COST OF 'LEvY $120 $209 $215
}AONTfllS COsT OF 'LEvY $228 $566 $581
}AONT1l'L Y COST OF LEvY $621 $1,162 $1,191
}AONT1l'L Y COST OF LEvY $1,277
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