Memo Preliminary General Fund Budget
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To:
Honorable Mayor & Councilmembers
Steven C. Mielke, City Manager
VVednesday, August 4, 1993
Preliminary General Fund Budget and Tax Levy
From:
Date:
Subject:
The Truth in Taxation law requires that Hopkins and other local governments adopt a
preliminary General Fund Budget and a Preliminary Tax Levy. The Council will be
asked to adopt both amounts at the September 7th regular Council meeting. The
preliminary numbers will be combined with the preliminary amounts adopted by the
school district, county and special districts to produce a Truth in Taxation notice which
will be sent to all property tax payers in November.
During the August worksession, staff would like to review 1993 and 1994 budget
information with the Council.
Attached to this memorandum is information relating to the 1993 budget and 1994
budget options. Staff will review this information with the Council and provide time for
discussion with the Council.
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. DISCUSSION OUTLINE
1. 1993 BUDGET
a. Budget document overview
b. Adopted general fund budget
c. Adopted Tax levy
d. Fund balance projections
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1. 1994BUDGET
a. Review property valuation data
b. General fund budget alternatives
c. Tax levy impacts
3. DISCUSSION
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REVENUES - ALL FUNDS
COMPARATIVE ANALYSIS BY SOURCE
1993 BUDGET
1991 1992 BUDGET .MANAGERS
SOURCE ACTUAL REVISED PROPOSED ADOPTED
Current Revenues
Current Property Tax $ 4,975,662 $ 5,481,500 $ 5,300,100 $ 5,300,100
Intergovernmental Revenue 1,840,673 1,870,800 2,325,800 2,325,800
:f..icense, Permits, & Fines 321,747 386,500 . 361,000 361,000
Use of Money & Property 960,783 709,600 552,200 552,200
Charges for Current Services 3,114,278 3,490,500 3,663,200 .3,663,200
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Other Revenue 313,301 1,302,500 351,000 351,000
Non Revenue Receipts 37,650 33,000 53,000. 53,000
TOTAL CURRENT REVENUES $ 11,564,094 $ 13,274,400 $ 12,606,SOO $ 12,606,300
. Other Financing Sources 1,771,109 1,186,200 957,000 957,000
GROSS TOTAL $ 13,335,203 $ 14,460,600 $ 13,563,300 $ 13,563,300
LESS: Inter-Fund Transfers 901,631 786,200 807,000 807,000
TOTAL $ 12.433,572 $ 13,674,400 $ 12,756,300 $ 12,756,300
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EXPENDITURES.. ALL FUNDS
COMP ARAUVE ANALYSIS BY FUND
1993 BUDGET
1991 1992 BUDGET MANAGERS
FUND ACTUAL , REVISED PROPOSED ADOPTED
General $ 5,905,804 $ 5,817,000 $ . 6,139,000 $ 6,139,000 :
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Equipment Replacement 869,018 1,271,900 372,400 372,400 I
Economic Development 170,179 216,300 202,000 202,000 ; ,
Real Estate Sales 2,617
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Hennepin County CDBG 134,195 88,000 85,000 85,000 I
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Tax. Increment L 1 2,393,173 2,684,000 4,135,400 4,135,400 i
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Tax. Increment 2.1"..2.5 81,229 1,892,400 676,500 I
676,500 I
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Para.. Transit 49,629. 60,300 62,000 62,000 i
Housing Rehab 89,543 129,000 136,800 136,800
Parking 73,628 92,700 129,400 129,400
Cable TV 55,916 83,400 49,400 49,400
Water 732,043 760,700 719,700 719,700
Sewer 1,331,556 1,268,400 1,205,400 1,205,400
Refuse 522,996 635,900 661,800 661,800
Storm Sewer 319,187 377,500 341,500 341,500
Pavilion/Ice Arena 139,656 _ 154,900 168,800 168,800
Debt Service 1,071,665 1,260,600 1,271,200 1,271,200
GROSS TOTAL $ 13,942,034 $ 16,793,000 $ 16,356,300 $ 16,356,300
LESS: Inter-Fund Transfers 901,631 786,200 807,000 807-,000
TOTAL $ 13,040,403 $ 16,006,800 $ 15,549,300 $ 15,549,300
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EXPENDITURES - ALL FUNDS
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COMPARATIVE ANALYSIS BY OBJECTIVE
1993 BUDGET
1991 1992 BUDGET MANAGERS
OBJECTIVE ACTUAL REVISED PROPOSED ADOPTED
Current Expenses
Personal Services $ 4,765,171 $ 4,876,700 $ 5,057,100 $ 5,057.100
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Other Services and Charges 3.938,172 4,797,200 :5,154,000 5,156,500
Supplies 447,949 471,500 494,700 494,700
Capital Outlays 1,523,189 3,185,800 3,013.000 3,010,500
Depreciation 333,293 420,800 389,000 389,000
Debt Repayment 1,694,935 2,254,800 1,441,500 1,441.500
TOTAL CURRENT EXPENSES $ 12,702,709 $ 16,006,800 S 15,549,300 $ 15,549,300
Other Financing Uses 1,239,325 786,200 807,000 807,000
GROSS TOTAL $ 13,942,034 $ 16,793,000 $ -16,356,300 $ 16,356,300
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LESS: Inter-Fund Transfers 901,631 786,200 807,000 807,000
TOTAL $ 13,040,403 $ -16,006,800 $ 15,549,300 $ 15,549.300
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GENERAL FUND
1993 BUDGET OVERVIEW
. Fund Balance 1-1-92 .$ 3,080,744
1992 1992
BUDGET" PROJECTED
Expenditures $ 5,817,000 $ 5,790,000
Revenues $ 5,817,000 $ 5,755,000
Net Change $ $ (35,000) $ (35,000)
Projected Fund Balance 12-31-92 $ 3,045,744
PROPOSED ADOPTED
1993 BUDGET 1993 BUDGET
Expenditures $ 6,139,000 $ 6,139,000
Revenues $ 6;139,000 $ 6,139,000
Use of Fund Balance $ (171,500)
Fund Balance 12-31-93 $ 2,874,244
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General Fund Debt Total City
Levv! Tax. Ta.x
Payable T ota! Levy T a..'C. Tax Le~ Capacity Tax Levy Ta..'C. Levy Capacity
Years Before Credits CapacitY After Cre its Rate* After Credits After Credits Rate*
1992/93 4,867,800 13,153,323 2,847,505 21.65 605,151 3,452,656 26.25
1991/92 4,659,492 14,147,548 2,724,272 19.26 620,034 3,344,306 23.64
1990/91 4,509,000 15,098,819 2,607,031 17.27 824,176 3,431,207 22.72
1989/90 3,613,171 14,834,976 2,468,786 16.64 346,892 2,815,678 18.98
1988/89 2,938,690 17,279,592 2,437,4p 14_11 272,028 2,709,440 15.68
*Tax Capacity Rate Computation: - _
. Tax capacity reduced by Fiscal Disparities contribution and Tax Increment Financing Districts.
Levy reduced by Fiscal Disparities distribution and HACA (Homestead & Ag Credit).
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REVENUES - GENERAL FUND
COMP ARATIVE ANALYSIS BY SOURCE
SOURCE
Current Revenues
Current Property Tax
Intergovernmental Revenue
License, Permits, & F~es
Use of Money & Property
Charges for Current Services
Other Revenue
Non Revenue Receipts
TOTAL CURRENT REVENUES $
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1991
ACTUAL
1993 BUDGET
1992 BUDGET MANAGERS
REVISED PROPOSED ADOPTED
$
2,744,961 $ , 3,117,800 $ 3,237,300 $ 3,237,300
1,506,783 1,632,000 1,761,000 1,761,000
289,558 356,500 329,000 329,000
608,753 366,200 384,700 384,700
83,751 36,500 44,000 44,000
279,800 275,000 330,000 330,000
37,650 33,000 - 53,000 53,000
5,551,256 $ 5,817,000 $ 6,139,000 $ 6,139,000
EXPENDITURES - GENeRAL FUND
COMP ARATNE ANALYSIS BY OBJECTIVE
OBJECTIVE
Current Expenses
Personal Services
Other Services and Charges
Supplies
Capital Outlays .
TOTAL CURRENT EXPENSES 3)
Other Financing Uses
TOTAL $
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1991
ACTUAL
1993 BUDGET
1992 BUDGET MANAGERS
REVISED PROPOSED ADOPTED
$
4,067,510 $ 4,073,900 $ 4,273,700 $ 4,273,700
1,384,489 1,307,000 1,372,300 1,374,800
369,295 368,400 379,900 379,900
77 ,979 56,900 103,100 100,600
5,899,273 $ 5,806,200 $ 6,129,000 $ 6,129,000
6,531 10,800 10;000 10,000
5,905,804 $ 5,817,000 $ 6,139,000 $ 6,139,000
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1993 DEP ARThfENT AL BUDGET SUMMARY
EXPENDITURES
1993 BUDGET
1991 1992 BUDGET MANAGERS
ACTUAL REVISED PROPOSED ADOPTED
City Council $ 61,573 $ 64,700 $ 63,300 $ 63,300
Health & Welfare 40,807 43,100 46,300 47,700
City Manager 195,701 181,700 195,200 195,200
Elections 10,012 33,800 22,200 22,200
City Clerk 82,370 78,600 87,700 87,700
Finance 184,898 195,100 200,900 200,900
Legal 81,800 93,000 93,500 93,500
Municipal Building 189,846 168,500 178,000 178,000
Activity Center 155,028 145,800 181,500 181,500
GENERAL GOVERNMENT 1,002,035 1,004,300 1,068,600 1,070,000
Police 1,894,031 1,893,700 1,995,600 1,995,600
Fire 342,072 346,100 357,600 357,600
Emergency Preparedness 5,753 6,300 6,500 6,500
PUBLIC SAFETY 2,241,856 . - 2,246,100 2,359,700 2,359,700
C. Dev.-Administration 114,117 97,700 101,800 101,800
C. Dev.~Plan & Econ. Dev. 81,012 77,200 84,800 84,800
C. Dev.-Assessing 152,402 137,200 149,400 149,400 I
C. Dev. -Inspections 241,859 233,500 254,500 254,500
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co:M:MUNlTY DEVELOPMENT 589,390 545,600 590,500 590,500 I
PUBLIC WORKS 1,533,977 1,457,600 1,665,500 1,664,100
RECREATION 143,846 131,200 148,200 148,200
INSURANCE 11,536 21,600 21,500 21,500
UNALLOCATED 376,633 " 410,600 275,000 275,000
TOTAL OPERATING 5,899,273 5,817,000 6,129,000 6,129,000
OTIIER FINANCING USES 6,531 10,800 10,000 10,000
TOTAL EXPENDITURES $ . 5,905,804 $ 5,827,800 $ 6,139,000 $ 6,139,000
USE OF FUND BAL.ANCE:
Mae1zold Field $ 100,000 $ 100,000
Fire Station - First Yeat Remodel 71,500 71,500
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GENERAL FUND BALANCE
1992 Fund Balance Actual. . . . . . . . . . . . . . . . . . . . $3,532,534
1993 Fund Balance Projection. . . . . . . . . . . . . . . . . . $3,532,534
1994 Fund Balance Projection . . . . . . . . . . . . . . . . . . $3,532,534
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1994 BUDGET ALTERNATIVES
1993 NO INCREASE MAINTAIN ADDITIONAL
ADOPTED IN TAX LEVY SERVICE OPTIONS
A B C
REVENUES
Tax Levy 4,015,000 4,015,000 4,114,900 4,234,900
HACA (General Fund) (777,700) (761,900) (761,900) (761,900)
Net Tax Revenues 3,237,300 3,253,100 3,353,000 3,473,000
Intergovernmental 1,761,000 1,765,000 1,765,000 1,765,000
Other Revenues. 1,140,700 1,140,700 1,172,000 1,172,000
TOTAL 6,139,000 6,158,800 6,290,000 6,410,000
EXPENDITURES
Personnel 4,273,700 4,396,400 2.9% 4,396,400 4,411,400 3.2%
Services and Charges# 1,064,800 1,086,100 2.0% 1,086,100 1,097,200 3.0%
Supplies 379,900 387,500 2.0% 387,500 391,400 3.0%
Capital 100,600 100,000 100,000 150,000
Contingency 100,000 78,800 100,000 100,000
Landfill 175,000 75,000 175,000 175,000
Salt Storage Bin 35,000 35,000 35,000 35,000
Hop-A-Ride 10,000 0 10,000 10,000
New initiatives 40,000
TOTAL 6,139,000 6,158,800 6,290,000 6,410,000
INCREASE 19,800 151,000 271,000
0.32% 2.46% 4.41%
1994 TAX LEVY AL TERNA TIVES
1993 1994
ADOPTED A B C
General Fund 4,015,000 4,015,000 4,114,900 4,234,900
Debt Service 452,800 430,900 430,900 430,900
Equip. Replacement 400,000 400,000 400,000 400,000
Total Levy 4,867,800 4,845,900 4,945,800 5,065,800
Increase (21,900) 78,000 198,000
-0.4% 1.6% 4.1%
* Other Revenues - License and permit fees, interest, fines, other charges.
# SelVices and Charges - Advertising, travel, legal fees, maintenance & repair, communications, insurance, etc.
08/06/93
ALTERNATIVES:
.A No Increase in Tax Levy Option
Salaries increase by 3%
Cut Contingency to $78,800
Cut landfill to $75,000
Cut Hop-A-Ride subsidy - $10,000
Services/Charges and Supplies increase by 2%
8 Maintain service with normal expenditure increases
Salaries increase by 3%
Services/Charges and Supplies increase by 2%
No change in contingency or landfill from 1993
C Increase Services Option
Salaries increase by 3% plus $15,000 for additional insurance expenditure
Capital increase by 50%
Services/Charges and Supplies increase by 3%
$40,000 for new initiatives
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