CR 95-152 Approve Proposed 1995 Levy
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August 30, 1995
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Council Report 95- 1 52
APPROVE PROPOSED 1995 LEVY, PROPOSED 1996 GENERAL FUND BUDGET
AND SET BUDGET HEARINGS
Proposed Action
Staff recommends adoption of the following motion: Move that Resolution 95-75 "Approving
proposed 1 995 Tax Levy Collectible in 1996. Adopting the Preliminary 1 996 General Fund
Budget and Setting Public Hearing Dates", be adopted.
Adoption of this resolution will enable compliance with the Truth in Taxation law enacted by the
Minnesota Legislature.
Overview
The Truth in Taxation process requires specific action by the City Council. The City Council
must adopt a proposed levy and set hearing dates in conformance with the statute. Additionally, a
preliminary general fund budget must be established. Adoption of the actual budget will occur in
December and at that time, the final levy and budget may not exceed those adopted at this
. preliminary stage.
Two options are presented for the general fund budget and the 1995 total tax levy. Budgets
ranging from $6,572,000 to $6,592,000 would require an increase in the total tax levy from a
2.9% to 3.3%.
Staff is recommending that Council select a proposed levy that will allow some flexibility when
deliberating the final levy and budget after the public hearings.
Primary Issues to Consider
o How does the 1995 budget compare to the 1996 budget?
o How does the proposed budget impact property taxes?
Supporting Information
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o Staff analysis of issues.
o General Fund Departmental Budget Summary.
o General Fund Revenue Summary.
o Hopkins property tax impacts.
o Resolution #95-75.
o Public hearings calendar.
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6.6hn E. Schedl;r, Finance Director
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Page 2
Council Report 95-152
STAFF ANALYSIS OF ISSUES
Primary Issues to Consider
o How does the 1995 budget compare to 19967
The staff is recommending that the Council adopt a preliminary budget within the range of the
two options. These options maintain services with normal expenditure increases adjusted for
inflation. Salary ranges and services/charges and supplies would increase by 3%. There is no
change proposed in contingency but the landfill funding would be reduced $75,000 to a $100,000
level. There is still an uncertainty in the amount of landfill costs the general fund will need to
absorb.
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To:
Steve Mielke, City Manager
John Schedler, Finance Director
Bob wilsoA~ ''city Assessor
Thursday, August 31, 1995
Property Tax Impacts
From:
Date:
Subject:
Attached are estimates of property tax impacts for the following scenarios:
(#1) Freeze the tax levy at 1994-95 level
(the levy before credits would be $4,953,600)
(#2) Increase the tax levy 2.9 percent over 1994-5
(the levy before credits would be $5,098,000)
(#3)
Increase the tax levy 3.3 percent over 1994-5
(the levy before credits would be $5,117,000)
The amount of HACA is estimated to decrease $39,251 or 4 percent. The City's total
net tax capacity is flat, increasing $159,293 or 1 percent.
RW/rr
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PROPERTY TAX IMPACTS FOR HOPKINS
TAXES PAYABLE 1995 VS. ESTIMATED TAXES PAYABLE 1996
Assumes a 4 percent increase in market value from 1994 to 1995. Dollar amounts are
figured on the City's portion of the homestead tax.
ICommercialllndustrial
Estimated
Market
Value
$ 196,000
1,125,000
Taxes
Payable
1995
$ 2,451.54
14,071.34
Scenario
#1
+$ 22.90
+ 1 31 .45
Scenario
#2
+$103.59
+ 594.61
Scenario
#3
+$116.85
+ 670.68
Assumes no change in market value from 1994 to 1995. Dollar amounts are figured on
the City's portion of the property tax.
CITY OF HOPKINS PROPERTY VALUE AND
TAX CAPACITY COMPARISON FOR 1994 AND 1995
8/30/95
TOTAL
1994 Estimated Market Value 1994 Tax Caoacitv
$ 72,952,800 $ 3,122,110
90,285,600 4,073,913
324,564,700 4,709,208
104,468,600 3,386,040
922,100 17,375
$593,193,800 $15,308,646
1995 Estimated Market Value % Chance 1995 Tax Caoacity % Chanqe
$ 69,348,800 -0.5 $ 2,960,462 -5.2
89,895,400 -0.4 4,054,364 -0.5
338,482,700 +4.3 4,959,712 +5.3
102,440,030 -1.9 3,358,714 -0.8
925,800 +0.4 1 7 ,43 1 +0.3
$601,092,730 + 1.33 $15,350,683 +0.3
. Commercial
Industrial
Residential
Apartment
+ Other
Commercial
Industrial
Residential
Apartment
Other
* Includes: Mobile Home Park, Greenhouse, Nonprofit
Commercial
Industrial
e Residential
Apartment
Other
TOTAL
Imorovement Amounts 1994 to 1995
$ 484,100
569,100
, ,025,800
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$2,079,000
Commercial
Industrial
Residential
Pavable 1995 Class Rates
4.60%
4.60%
1 st 72,000 @ 1 %,
balance @ 2%
non-homestead @ 2.3%
3.40%
Pavable 1996 Class Rates
4.60%
4.60%
1 st 72,000 @ 1 %,
balance @ 2%,
non-homestead @ 2.3%
3.40%
Apartment
SUBURBAN HENNEPIN COUNTY CHANGES IN ESTIMATED MARKET FROM 1994 TO 1995
Commercial
Industrial
Residential
Apartment
. Total 1994 Estimated Market Value
Total 1995 Estimated Market Value
Improvement Amount 1994 to 1995
Overall Growth in Suburban Hennepin County (excluding
improvement amt.}
-2.3%
+ 16.9%
+4.9%
+2.2%
$34,227,766,170
$36,471,215,600
$717,892,700
+4.5%
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GENERAL FUND BUDGET EXPENDITURES
1995
Adopted
1996 Preliminary
Option # 1 Option #2
General Government
$
1,156,800 $
1,188,000 $
1,188,000
Public Safety
2,556,900
2,695,000
2,695,000
Community Development
611,200
637,000
637,000
Public Works
1,572,900
1,617,000
1,617,000
Recreation
153,000
149,000
149,000
Insurance
28,900
30,000
30,000
UnalIocated
275,000
200,000
200,000
Special Projects - Salt StoragelBeach
35,000
500,000
50,000
Other (Hop-A-Ride)
10,300
6,000
6,000
Other Projects
20,000
$
6,400,000 $
6,572,000 $
6,592,000
Notes:
1. Total City 1995 Levy will increase by 2.9% (option #1) or 3.3% (option #2).
2. The increases over the 1995 budget for salaries/fringes and most other charges and
supplies was calculated at 3%.
3. Capital outlays increased $17,400, bringing the total to $116,000, just slightly over
the normal target of$100,000.
4. A proposed increase of a half-time position in the Police Communications Center
and the added patrol officer under the Federal COPS grant is included.
5. While there are significant changes in certain non-tax revenues, the net difference
is a decrease of$8,500. Tax revenue after credits would increase $180,500 under
option #1 and $200,500 under option #2.
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GENERAL FUND
Revenues - 1995 vs. 1996
1995 1996 Increases
Adopted Option # 1 i %
Tax Levy $ 4,143,500 $ 4,293,000 $ 149,500 3.6
Revenues
Taxes after Credits $ 3,322,200 $ 3,502,700 $ 180,500 5.4
HACA 82],300 790,300 (31,000) 3.8
LGA 793,200 804,900 11,700 1.5
Interest 414,200 250,200 (164,000) (39.6)
. Administration Fee 346,300 381,000 34,700 10.0
Other Revenues 702,800 842,900 140,100 19.9
$ 6,400,000 $ 6,572,000 $ 172,000 2.7%
Note:
Option #2 - Taxes after credits would be at $3,522,700
Tax Levy would be at $4,313,000
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. TAX LEVY ESTIMATE
Difference
1994-5 1995-6 $ %
General Fund $ 4,143,500 $ 4,293,000 $ 149,500 3.6
Equipment Replacement Fund 400,000 450,000 50,000 12.5
Park Bonds 298,400 248,000 (50,400) (16.9)
Improvement Bonds 1] ],700 106,000 (5,700) (5.1 )
$ 4,953,600 $ 5,097,000 $ ]43,400 2.9%
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Note:
Option #2 - General Fund Levy would be $4,313,000, a 4.1 % increase.
Total City Levy would be $5,117,000, a 3.3% increase.
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Hennepj!lpp~g"ynty
James M. Bourey, County Administrator
August 11, 1995
James A. Genellie, City Clerk
Hopkins City Hall
1010 1 st Street South
Hopkins, Minnesota 55343
Dear Mr. Genellie:
As required by the Truth in Taxation legislation, we are notifying you of the public
hearing dates set for the Hennepin County Board of Commissioners, Metropolitan
Special Taxing Districts and the school districts to discuss their proposed budget and
property tax levy for 1996:
Taxing District
Hennepin County
Metro Special Taxing Districts
School District 270
School District 273
School District 283
Original Hearing
December 12, 1995
December 4, 1995
December 7, 1995
December 6, 1995
December 5, 1995
Reconvened Hearing
December 19, 1995
December 11, 1995
December 18, 1995
December 14, 1995
December 13, 1995
We are now asking that you set your city's dates and times for the original budget
hearing and for a reconvened hearing. Although we will only be printing the original
hearing date on the notice, the reconvened date needs to also be set at this time. The
earliest date is November 29,.1 ~95 and the last date is December 20, 1995, ~9.Mi~M~~
m~:::~:~!~:!::!fiQln'::~~RY~::Q'~~r~l~I::p@":g'i!:g.~ Also, a reminder that the reconvened date
must be at least 5 business days but no more than 14 business days after the initial
DubHc hearing.
Since usually the public hearings and the mailing address for comments remain the
same, this year we are showing the 1994 data and asking you to confirm or update
~.~~~.,:i:~~if.i~~~~'::'~'~0~~~~~:~red by Minnesota Statute ,'~~~~'~~'Wtm(Q,::to.@}fQtl::o.a::l~fit
Hennepin County General Services
Taxpayer Servin's Di visil)n
/\-600 I Iem1et,in County Cm'crnmcnt Center
Minneapolis, MinneSl)ta 55487-0000
N.,', "\'l-/t'~ I Pdt),')'
James Genellie
August 11, 1995
page 2
The expense of preparing and mailing the Truth in Taxation notices is to be divided
in thirds among the county, school and city. Each city's portion of the third will be
determined by the number of parcels in your city. As in the past, you will be billed
in December after the mailing costs have been determined.
If you have any questions, please contact me at 348-5100.
Sincerely,
/lI1(' ro . V
f , l d.~ j) \)yt~
Marie A. Kunze, Manager
Property Tax Section
MAK:djt
Enclosure
SCHOOL DISTRICTS AND CITIES
. Allowable Publication Dates and Public Hearing Dates in Regard
to Proposed Property Taxes for Payable 1996
IF INITIAL NOTICE OF CONTINUATION ADOPTION
HEARING PUBLIC HEARING HEARING HEARING
IN ] 995 MA Y BE PUBLISHED CAN BE HELD IF NEEDED CAN BE HELD *
ON OR BUT NOT ONOR BUT NOT ON OR BUT NOT
IS ON: AFTER: LATER THAN: AFTER: LATER THAN: AFTER: LA TER THAN:
NOV. 29 NOV. 20 NOV. 27 DEe. 06 DEe. 19 NOV. 30 DEe. 28
NOV. 30 NOV. 21 NOV. 28 DEe. 07 DEe. 20 DEe. 01 DEe. 28
DEC 01 NOV. 22 NOV. 29 DEe. 08 DEe. 20 D EC 02 DEC 28
DEe. 02 NOV. 24 NOV. 30 DEe. 08 DEe. 20 DEe. 04 DEe. 28
DEe. 04** NOV. 24 NOV. 30 DEC 11 DEe. 20 DEe. 05 DEe. 28
DEe. 05 NOV. 27 DEe. 01 DEe. 12 DEe. 20 DEe. 06 DEe. 28
DEe. 06 NOV. 28 DEe. 04 DEe. 13 DEe. 20 DEe. 07 DEe. 28
DEe. 07 NOV. 29 DEe. 05 DEe. 14 DEe. 20 DEe. 08 DEe. 28
DEe. 08 NOV. 30 DEe. 06 DEe. 15 DEe. 20 DEe. 09 DEe. 28
DEe. 09 DEe. 01 DEe. 07 DEe. 15 DEe. 20 DEe. 11 DEe. 28
. DEe. 11** DEe. 01 DEe. 07 DEe. 18 DEe. 20 DEe. 12 DEe. 28
DEe. 13 DEe. 05 DEe. 11 DEe. 20 DEe. 20 DEe. 14 DEe. 28
DEe. 14 DEe. 06 DEe. 12 DISALLOWED DEe. ]5 DEe. 28
DEe. ]5 DEe. 07 DEe. 13 DISALLOWED DEe. 16 DEe. 28
DEe. ]6 DEe. 08 DEe. 14 DISALLOWED DEe. 18 DEe. 28
DEe. ]8 DEe. 08 DEe. 14 DISALLOWED DEe. 19 DEe. 28
DEe. 20 DEe. 12 DEe. 18 DISALLOWED DEe. 21 DEe. 28
* The "on or after" dates shown for your adoption hea ring assume that no continuation hearing is held. If a
continuation hearing is held, the levy adoption hearing could be held no earlier than one day after the
continuation hearing.
** Cities and school districts in the seven county metropolitan area are disallowed from using the hearing
dates of December 4 and 11 because these are the dates set aside by statute for the metropolitan
special taxing districts to hold their initial hearings and continuation hearings.
NOTE:
(]) School district and city initial or continuation hearings on proposed property taxes for taxes payable
in ] 996 cannot be held on Decem ber 3, 10, or 17 in 1995 since these are Sundays; and December 12 or
19 in 1995 since these are the dates set aside for county initial hearings and continuation hearings,
res pectively.
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(2) Ifthe initial hearing is held after December 13, in 1995, a continuation hearing is not allowed since the
continuation hearing must be held at least 5 business day's after the initial hearing.
CITY OF HOPKINS
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Hennepin County, Minnesota
RESOLUTION NO. 95-75
A RESOLUTION APPROVING PROPOSED 1995 TAX LEVY
COLLECTIBLE IN 1996, ADOPTING THE PRELIMINARY 1996 BUDGET,
AND SETTING PUBLIC HEARING DATES
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, MINNESOTA., that the following
sums of money be levied for the current year collectible in 1996 upon the taxable property in said City of
Hopkins, for the following purposes.
Option # 1
Option #2
General Fund
Equipment Replacement Fund
General Obligation Bonds
Improvement Bonds
Total Levy
$4,293,000
450,000
248,000
106.000
$5,097,000
$4,313,000
450,000
248,000
106.000
$5,117,000
This levy is made based on current law and the 1996 General Fund Budget of $6,572,000 $6,592,000.
.
Provision has been made for the payment of the City's contributory share to the Public Employees
Retirement Association.
Provision has also been made for the payment of principal and interest on the following bond issues:
Redevelopment Bonds 5-1-88 & Refunded 10-15-93
G.O. Sewer Revenue Bonds 12-1-89 & Refunded 10-15-93
Redevelopment Bonds 12-1-89 & Refunded 10-15-93
Park Bonds 3-1-90* & Refunded 10-15-93*
Refunding Bonds 3-1-90 & Refunded 10-15-93
*Levy
Improvement Revolving Bonds 3-1-90*
Redevelopment Bonds 5~22-91
Refunding Bonds (Taxable) 2-1-92
Improvement Revolving Bonds 8-1-92 *
Public hearing date for the 1996 budget is
,1995, with a continuation date of
, 1995.
BE IT FURTHER RESOL VED, 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 at a regular meeting of the Council held this 5th day of
September, 1995_
. ATTEST:
By
Charles D. Redepenning, Mayor
James A. Genellie, City Clerk