VII.2. Approve Proposed 2019 Levy, Proposed 2019 General Fund Budget and Set Budget Meeting Date; BishopSeptember 18, 2018 Council Report 2018-106
APPROVE PROPOSED 2019 LEVY, PROPOSED 2019 GENERAL FUND BUDGET AND SET BUDGET MEETING DATE
Proposed Action. Staff recommends adoption of the following motion:
Move to approve Resolution 2018-078 “Approving proposed 2019 tax levy, debt service levies at
levels under those required in bond covenants, proposed general fund budget, and setting budget
meeting dates”.
Adoption of resolution 2018-078 will set a maximum tax levy for 2019, will set debt levies at
amount sufficient to pay debt service requirements taking into consideration other revenue
sources and fund reserves, and approve a proposed 2019 general fund budget. Final budget and
tax levy adoption will not occur until December 2018.
Overview:
The City is required to certify a proposed tax levy and submit to Hennepin County by September
30th. This is the maximum levy for 2019 and can only be reduced. There is also a requirement
to hold a public meeting on the budget where public comments are taken. Staff is suggesting
December 4, 2018 as an appropriate date to discuss the budget. This will allow us to take into
consideration comments from the public prior to adopting the budget. If there are no changes to
the proposed budget it can be approved at that same meeting.
A proposed general fund budget has been established and is attached for your review. Adoption
of the final budget will occur in December 2018 following the public comment meeting. The
City Council is charged with the authority to establish a budget for 2019 and set the preliminary
levy. The Financial Management Plan has been used as a tool when considering the levy and
budget.
Staff is recommending that council approve the resolution setting the proposed levy for general
operations; approve the levy adequate for the payment of debt, and to set budget meeting dates as
set forth in this resolution.
Supporting Information:
•Resolution 2018-078
•2019 proposed general fund budget and tax levy
•Power point presentation
________________________________________
Nick Bishop
Finance Director
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2018-078
RESOLUTION APPROVING THE PROPOSED 2019 TAX LEVY, SETTING
DEBT SERVICES LEVIES AT LEVELS UNDER THOSE REQUIRED IN THE BOND
COVENANTS, APPROVING THE PROPOSED 2019 BUDGET, AND
SETTING BUDGET MEETING DATE
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, MINNESOTA,
That the following sums be levied for 2019 upon the taxable property in the City of
Hopkins, for the following purposes.
General Levy
General $12,384,507
Special Levies
Debt Levies
2010A GO Improvement Bonds 90,000
2012A GO Capital Improvement Bonds 220,000
2012B GO Bonds 150,000
2012B Equipment Certificates 96,495
2013A GO Bonds 88,348
2014A GO Bonds 97,000
2014B GO Refunding Bonds 655,000
2015A GO Street Reconstruction Bonds 250,000
2015B GO Tax Abatement Bonds 115,000
2016A GO Improvement Bonds 100,000
2016B GO Tax Abatement Bonds 34,366
2016C Equipment Certificates 240,240
2017A GO Street Reconstruction Bonds 925,000
2017B GO Tax Abatement Bonds 163,908
2018A GO Equipment Certificates 78,000
2018A GO Improvement Bonds 355,072
Subtotal Special Levies 3,658,429
Total Levy $16,042,936
That based upon staff analysis of specials assessments currently levied for Permanent
Improvement Bonds, alternative revenue sources for the Capital Improvement Bonds and
Equipment Certificates, and available reserves within all debt service funds listed below, that the
debt service levies for 2019 for the following issues be levied at amounts less than that provided by
the bond covenants.
Net Debt
Bond Issue Service Levy
$2,710,000 G.O. Improvement Bonds of 2010A (B2679) $ 90,000
$5,505,000 G.O. Bonds of 2012B (B2833) $ 246,495
$3,650,000 G.O. Bonds of 2013A (B2833) $ 88,348
$1,895,000 G.O. Improvement Bonds of 2014A (B2964)$ 97,000
$6,345,000 G.O. Refunding Bonds of 2014B (B2983)$ 655,000
$4,100,000 G.O. Street Reconstruction bonds of 2015A (B3031)$ 250,000
$2,940,000 G.O. Tax Abatement Bonds of 2015B $ 115,000
$4,335,000 G.O. Improvement Bonds of 2016A (B3123)$ 100,000
$1,630,000 G.O. Tax Abatement Bonds of 2016B (B3122)$ 34,366
$11,795,000 G.O. Street Reconstruction Bonds of 2017A (B3198) $ 925,000
$6,715,000 G.O. Bonds of 2018A $ 433,072
That the Proposed 2018 General Fund Budget be set at $14,410,478.
That the budget meeting to discuss the 2019 budget and tax levy be set for December 4, 2018 at 7:00
pm in the City Council Chambers.
BE IT FURTHER RESOLVED that the City Clerk is hereby ordered and directed to transmit a certified
copy of this resolution to the County Auditor of Hennepin County, Minnesota.
Adopted by the City Council of the City of Hopkins this 18th day of September 2018.
By
Molly Cummings, Mayor
ATTEST:
Amy Domeier, City Clerk
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2019
Proposed
September 18, 2018
Department 2018 Budget 2019 Budget
% Increase
(Decrease)
Property Taxes 10,832,657 11,821,624 9.13%
Intergovernmental Revenue
PERA Aid 20,510 20,510
Local Government Aid 549,023 556,619
Intergovernmental Revenue - Other 604,400 590,000
Total Intergovernmental Revenue 1,173,933 1,167,129 -0.58%
Licenses, Permits & Fines
Court Fines & Penalties 176,500 176,500
Building Permits & Inspections 463,900 440,700
Inspection Fines & Citations 8,000 8,000
City Clerk - Business Licenses 7,050 7,000
PD - Liquor, Animal Licenses & Penalties 95,600 89,100
Fire - Licenses & Permits 3,800 1,100
Public Works - Licenses & Permits 27,115 19,415
Planning & Zoning - Licenses & Permits 3,500 3,500
Total Licenses, Permits & Fines 785,465 745,315 -5.11%
Charges for Service
Finance Department 9,750 9,750
Assessing 3,000 3,000
Inspections 87,850 104,360
Police 33,000 25,000
Fire 15,000 10,500
Public Works 2,750 4,150
Activity Center 71,500 94,000
Total Charges for Service 222,850 250,760 12.52%
Miscellaneous Revenue
Franchise Fees 290,000 290,000
Miscellaneous 15,250 15,250
Finance Department 5,100 5,100
Police 2,000 2,000
Fire 3,500 3,500
Public Works 4,600 5,300
Activity Center 10,000 14,500
Community Development 90,000 90,000
Total Miscellaneous 420,450 425,650 1.24%
Total Revenues 13,435,355 14,410,478 7.26%
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2019
Proposed
September 18, 2018
Department 2018 Budget 2019 Budget
% Increase
(Decrease)
City Council 103,558 96,131 -7.17%
Administrative Services 667,261 756,693 13.40%
Finance 314,023 351,173 11.83%
Legal 150,000 175,000 16.67%
Municipal Building 389,106 392,396 0.85%
Receptionist 38,107 40,887 7.30%
Assessing 218,681 226,682 3.66%
City Clerk 168,280 183,243 8.89%
Inspections 741,631 818,588 10.38%
Police 5,290,143 5,609,105 6.03%
Fire 1,238,250 1,399,178 13.00%
Public Works 3,057,879 3,221,137 5.34%
Recreation 262,609 269,279 2.54%
Activity Center 430,140 463,416 7.74%
Planning & Zoning 204,672 217,372 6.21%
Community Development 102,810 101,498 -1.28%
Tuition Reimbursement 18,200 18,700 2.75%
Contingency 25,000 50,000 100.00%
Transfer to Other Funds 15,000 20,000 33.33%
Total Expenditures 13,435,350 14,410,478 7.26%
Proposed
September 18, 2018
Actual Proposed % Increase
Purpose FY2018 FY2019 (Decrease)
General Operations
General Fund 10,747,657.00 11,736,624.00 9.20%
Capital Levy 75,000.00 100,000.00 33.33%
Arts Center 250,000.00 257,500.00 3.00%
Pavilion Fund - 40,383.00 100.00%
Equipment Replacement - 250,000.00 100.00%
Total General Operations 11,072,657.00 12,384,507.00 11.85%
Debt Levy
Street Improvements 1,610,000.00 2,055,420.00 27.67%
Equipment Certificates 332,484.00 414,735.00 24.74%
City Owned Facilities 1,039,891.00 1,024,366.00 -1.49%
Burnes Park 166,848.00 163,908.00 -1.76%
Total Debt Levy 3,149,223.00 3,658,429.00 16.17%
Total Levy 14,221,880.00 16,042,936.00 12.80%
City of Hopkins
2019 Proposed Levy
2019 Preliminary
Levy and Budget
September 18th, 2018
Truth in Taxation Process
Council adopts proposed levy and budget by
September 30th of each year
Council sets budget meeting date for
discussion and to receive public comment
Budget Meeting –Tuesday, December 4th
Budget approval December 4th or 18th
Parcel specific notices mailed by Hennepin
County
2019 Proposed General Fund Budget
Balanced Budget
Revenues = Expenditures
$14,410,478
7.26% Increase from 2018
2019 Proposed General Fund Expenditures
Additions for 2019:
Salary and Benefit Increases
Full-time Parks and Forestry Worker
Fire Hall Tables and Chairs
Comprehensive Plan Implementation
Furniture, Equipment Charges, Legal Services,
Transfer to Depot
2019 Proposed General Fund Expenditures
Budget Proposed % Increase
FY2018 FY2019 (Decrease)
General Government 1,623,948 1,771,393 9.08%
Community Services 1,474,181 1,588,270 7.74%
Public Safety 6,528,393 7,008,283 7.35%
Public Works 3,057,879 3,221,137 5.34%
Recreation 692,749 732,695 5.77%
Other 58,200 88,700 52.41%
13,435,350 14,410,478 7.26%
2019 Proposed General Fund Expenditures
2019 Proposed General Fund Revenue
Tax Levy –increased $989K or 9.1%
Charges for Services –increased $28K
Licenses, Permits & Fines –decreased $40K
2019 Proposed General Fund Revenue
Budget Proposed % Increase
FY2018 FY2019 (Decrease)
Property Taxes 10,832,657 11,821,624 9.13%
Intergov't Revenue 1,173,933 1,167,129 -0.58%
Licenses, Permits & Fines 785,465 745,315 -5.11%
Charges for Service 222,850 250,760 12.52%
Misc. Revenue 420,450 425,650 1.24%
Total Revenue 13,435,355 14,410,478 7.26%
2019 Proposed General Fund Revenue
Proposed 2019 Levy
Actual Proposed % Increase
Purpose FY2018 FY2019 (Decrease)
General Operations
General Fund 10,747,657.00 11,736,624.00 9.20%
Capital Levy 75,000.00 100,000.00 33.33%
Arts Center 250,000.00 257,500.00 3.00%
Pavilion Fund - 40,383.00 100.00%
Equipment Replacement - 250,000.00 100.00%
Total General Operations 11,072,657.00 12,384,507.00 11.85%
Proposed 2018 Levy
2018 Street Project (Cambridge/Oxford)
City portions of Blake Road
Equipment: tandem dump truck, single dump truck,
sweeper, toolcat, pick up truck, swap loader
Actual Proposed % Increase
Purpose FY2018 FY2019 (Decrease)
Debt Previously Issued 3,149,223.00 3,225,257.00 2.41%
Debt Issued in 2018 - 433,072.00 100.00%
3,149,223.00 3,658,329.00 16.17%
Proposed 2018 Levy
$203 increase for a home valued at $236,500
General Operations -$85
Debt Levy -$118, Streets/Equipment
Actual Proposed % Increase
Purpose FY2018 FY2019 (Decrease)
Total Levy 14,221,880.00 16,042,936.00 12.80%
Next Steps -Levy
Adopt proposed budget and levy during this
Meeting
Certify to County by September 30th
Parcel Specific Notices mailed by County
Hold Public Meeting on budget and levy at the
December 4th Council Meeting
Final Certification to County due on December
31st
Next Steps –2019 Budgets
Utility Rate Increase Discussion –Oct/Nov
CIP/ERP –Nov/Dec
Enterprise and Special Revenue Fund Budgets
–Oct/Nov/Dec