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Memo - 2005 Budgets - General Fund CITY OF HOPKINS . MEMORANDUM Date: November 5, 2004 To: Mayor & City Council From: Christine Harkess, Finance Director Re: 2005 Budgets - General Fund The documents that will be reviewed at the work session on November 9th were not ready when the council packet went out. Below is listed the items that wi11 be brought forward for discussion. Supporting documents will be available for your review at that time. Discussion will focus on the following: . General Fund Budget 0 Capital Items 0 New budget requests 0 Significant changes from prior year . Use of reserves as a means to reduce the tax levy . Preliminary tax levy information . . Impact of tax levy on various property owners . Parking Budget and police enforcement budget changes for 2005 . CITY OF HOPKINS ANALYSIS OF TAX lEVY I . 2005 Net levy Purpose 2003 2004 Proposed General Operations General Fund $6,167,437 $6,654,321 $7,339,321 Other levies: PERA Levy $11,815 $11,815 $11,815 Capital Levy $0 $0 $25,000 HRA Levy $106,000 $0 $10,000 Total General Levy * $6,285,252 $6,666,136 $7,386,136 Special Levies: GO Bonds $190,000 $210,000 $190,000 Improvement Bonds $143,000 $150,000 $147,000 HRA Revenue Bonds $550,000 $678,000 $475,000 Subtotal - Special Levies $883,000 $1,038,000 $812,000 TOT Al LEVIES $7,168,252 $7,704,136 $8,198,136 . (2) (3) Increase over prior year #REF! $535,884 $494,000 Percentage Incr (Deer) - Total 8.76% 7.48% I 6.41%1 Tax Capacity Rate 56.099% 56.664% 49.475% Percentage IncrlDecr in Tax Capacity Rate 4.167% 1.007% -12.687% (2) (3) I Notes * Included in Operating Levy on Tax Statements (1) HACA eliminated in 2002 (2) First portion of new facility bonds levied (3) Second portion of new facility bonds and no LGA . . CITY OF HOPKINS ANALYSIS OF TAX IMPACT ON MEDIAN VALUE HOME Residential Homestead 2005 2004 Current W/Reduction Value $ 162,400 $ 186,700 $ 186,700 Percent Increase in Value 15% City Taxes $ 824.96 $ 840.61 $ 827.08 Dollars Increase $ 15.65 $ 2.12 Percent Increase 1.90% 0.26% (1 ) . If we reduce the budgeted contingency to $100,000 this reduces the proposed levy by $109,640 thereby reducing the tax impact to residential homestead property with an median value of $186,700 to a negligible amount. (1) We anticipated that our proposed levy would have a net zero impact on the median valued home. When the Market Value Homestead Credit (MVHC) was taken into consideration this did not happen. This is due to the MVHC being shared porportionate to each taxing jurisdictions share of the total levy. Since our share of the total levy is less than in 2004, our share of the MVHC per parcel is also less, thereby showing that city taxes increased. The percentage increase is approximately the percentage decrease of our share of the MVHC. . , . CITY OF HOPKINS Based on Proposed Payable 2005 Property Taxes Who gets your property tax dollars? (Does not include the adjustment for Market Value Homestead Credit) Hopkins School EXAMPLE: Dist 270 Preoperty Tax on an $187,400 $358.66 (16%) Hopkins home is: $2,275 (100%) Hennepin County ~~L:;;::.~~~ ..'~' '-," .~. $826.70 (36%) -. ~~ ~ . RETURNED AS SERVICES Metro Taxing Districts $927.16 $61.95 (3%) Police Protection Fire Protection Street Maintenance Snow Plowing Recreation Programs Park System Other Special Building Inspections Economic Development Taxing Districts General Government Maintenance of City Website $100.07 (4%) City Newsletter .. 1.LJ>~ ;:;.- '" ~~ . . . ~ City of Hopkins $927.16 (41%) " :.,~ . This example does not include Market Value Referendum Taxes . IHOW TAXES ARE DETERMINED_ l. Assessed value of all property in the city is converted to a tax capacity rate using tax class rates which are different for residential (homestead vs. non-homestead), commercial and industrial property. 2. Tax capacity of all property in the city is totaled. 3. The total tax capacity is then adjusted by the fiscal disparities contribution and tax increment properties. 4. This becomes the total tax capacity of the city. 5. To determine the tax rate (the rate each property gets taxed at) the total dollars needed net of the fiscal disparities contribution in dollars, are divided by the total tax capacity of the city. 6. This gives us a city tax rate for the city. 7. The tax capacity of each property is multiplied by the city's tax rate to determine the amount . of tax to be paid for the eity tax. I FOR EXAMPLE: Using 9-07 -04 proposed levy certified to the county I An $187,400 homestead house's tax class is 1 %. $187,400 x 1% = $1874 This is done for each property in Hopkins. The total tax capacity for the City of Hopkins is: $14,655,800 Dollars needed for 2005 total $8,136,198 Tax Levy is reduced by Fiscal Disparities Contribution of $948,049 to leave a net levy of $7,250,087 Hopkins Tax Rate for 2005 = $7,250,087 I $14,655,800 = 49.469% . 1l!O2/2004 I . CITY OF HOPKINS PROPERTY VALUES IN HOPKINS - 2004 LEVYIPAY 2005 Tax Capacity Value Real Estate 16,812,707 Personal Property 173,916 Total Tax Capacity for the City 16,986,623 Fiscal Disparities Contribution (1,526,509) Tax Increments (804,314) Tax Capacity Used for Local Rates 14,655,800 (A) Fiscal Disparities Distribution 1,673,106 Adjusted Net Tax Capacity 16,328,906 . Steps to Calculate City Tax Rate Tax Capacity Used for Local Rates 14,655,800 (A) Tax Levy Certified to County 8,198,136 Proposed levy certified 9/04 Less Fiscal Disparities Contribution in Dollars (948,049) Net Levy to Determine Tax Rate 7,250,087 (8) Tax Rate 49.469% (8) divided by (A) . ~ -v ~ C""J CIl 0 U I'-- o N III .., . 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C) _':!! 0 e -c ro --C C C) 0 "'1ii ~lllE~~~u~~~~u~EG~rr02c~Ub~(j)ucO~u~~~rou~~~~~o>U_~Q~ ""0 lll~W ~ ~ W a..::::IW W (j) (j) ~ (j) ~~ ~ ~N (j) ~ eLl. 7 70 ro070 W Om mo m~o 0 0 m Om m ~O 0 v ~o ~N~O ~ O~ NO Nvo 0 0 ~ Ov ~ roo N N N7 ~N~v ~ 7~ Nv NNv V V V v~ V M~ M . Public Warks Department Memorandum To: Honorable Mayor and Members of the City Council Copy: Jim Genellie, Acting City Manager From: Steven J. Stadler, Public Works Director Date: August 4,2004 Subject: 2005 Public Works General Fund Preliminary Budget Summary of PW General Fund programs: 1. Buildinq Maintenance . Expenditure Total: $439,500 (2004 Budget: $355,000) Purpose: Operate and maintain city facilities Significant proposed expenditure increases: Full-time personnel: $45,000 (add Grade 4 HMEA employee for facility maintenance - a portion of this increase funded from Arts Center, Fire Dept budgets) Supplies & structural rnaint/repair: $7,500 Heating fuel: $17,000 (additional heated sf- police station + public works) Electricity: $13,000 (additional electrical load - police station + public works) Capitalltern requests: $2,700 (replace furnace and 2 alc units - public works) Custodial Services contract: $17,000 (additional services - police station) Part-time employees: $6,000 (custodial services at public works) Elevator maintenance contract: $1,200 (public works) TOTAL BUILDING MAINTENANCE INCREASE: $109,400 (total reflects 100% of cost of proposed additional full-time position) . . 2. Equipment Services Expenditure Total: $195,121 (2004 Budget: $185,921) Purpose: Maintain/repair city vehicles and equipment Significant costs: Personnel: $178,000 Proposed expenditure increase: Capital Equipment: $3,500 (replace old model tire changer) 3. PW Administration and Enqineering Expenditure Total: $336,000 (2004 Budget: $328,000) Purpose: Administrative support and engineering services Significant costs: Personnel: $291,000 . 4. Street Division Expenditure Total: $1,071,000 (2004 Budget: $1,009,000) Net tax supported: $843,000 Purpose: street and alley maintenance Significant costs: Personnel: $443,000 Equip Alloc: $50,000 Mat'I/Supplies/Services: $529,000 Equipment request: Asphalt Tack Emulsion Applicator: $18,000 5. Parks & Forestry Expenditure Total: $757,000 (2004 Budget: $681,000) Purpose: Routine maintenancelrepair of city parks, rights-of-way and urban forest . Significant costs: Personnel: $522,000 Mat'ls and supplies: $195,000 . Capital request: Turf aerator: $3,5 00 Maetzold Field roof replacement: $5,000 Three chain saws: $1,500 Significant expenditure increases: Part-time Employees: $10,000 (2 additional pit employees for Excelsior Blvd & downtown maintenance) . . U) ~ ioo ~~ ~ o c- ~mu~ (f) mw~ ucCt) E iE! Soro~ 2 Q)~w 0-0-0 E ~ ~ ~Q)~C ~ =gw ~~3ro ~ ~t~ -oLWO Q) 0> ~uco. u -o.e t).Sb~ C ErnD SOQ)Q) . ~ 0>,= CONc ~ o_~ 00_- Ul LID> ~ ~ Ul 0 c ~EW M~aQ) ~ 2:~~ Mfi;~ a mOrn UlQ)::>Ul ~o Ul u.. .c Q) .~ -0 a o~ t) .-.,. - W N BOil) ~~bQ) +-' , Q):;;' .- ~ Q) c ::> ~ - t)~.c ::>OO-u ill .c ~_~ OO-o~ E too. cgJou E 0 ~~ ___CC :> <Il ~ 0. ~ U -.- o :> ug<ll 0ro~o U ~ ~~o 6bw8 E cS~ ogro~ ~ 2li= ~OG~ ~ Sal~ ~IDii:' 2 CllU fi.c::lU 0.. EW~iI) 'Ol1..}; (f) ~C_Q) <Il ~u ; ~o~~ ~~S2 c ~SuQ) o~~w = t:-oalo. --Q).. Q) <IlmtX ~SI2' 5: >t::oill EUl..Ul.l!J COO-(/) (J)Q)cotn ~ Oo.al- I-UOuo . 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Plione: 952-935-8474 . ~ra;(: 952-935-1834 'THE (J(Mress: 1UwuJ.fiopkins1tlfl.wm DATE: November 18, 2004 TO: Mayor & City Council .~ FROM: Christine Harkess, Finance Director C RE: Additional InfOlmation on 2005 General Fund Budget Attached is an analysis of the 2005 Budgeted General Fund departments in which questions were raised at the November 91h council work session. The attached analysis looks at the actual and budgeted expenditures for those five departments for the years 2001 to 2005. This multi year analysis shows how the council and staff responded to the budget crisis of 2003 & 2004 and explores in further detail the basis for the 2005 budget requests. Questions were also raised regarding the fire inspection fees and where those are recorded. That issue has been research also and that info is included in the analysis. In addition, there is attached two memos - one from Fire Chief Beckering explaining in further detail the budget changes in the Fire Depmiment, and one from Public Works Director Stadler providing more detail on the job duties of the requested additional employee. . Upon review of these materials I invite you to contact me with any questions YOll may have. At the November 30th work session we will be finalizing the 2005 General Fund Budget and the 2005 Proposed Tax Levy in preparation for the December 13lh Truth-in- Taxation Public Hearing. Final approval of the 2005 budgets for all funds and the tax levy is scheduled for December 21 st. . 1'anrll'rill..q H'itli rfir {'oIllJllli1lity 10 'Ellfiallcc tfir QJlafiry o( fUr + Illspire + 'Edllmtc + 11!11(1(l'c + (0 r/I 111 II Ilicatc + .... +-' aJ aJ 0 t UJ-oaJU VLD :;:C>C1J 00 _ W ..c 1!.... 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