Memo Preliminary General Fund Budget
,
. CITY OF HOPKINS
MEMORANDUM
Date: August 6, 1992
To: Honorable Mayor & Councilmembers
From: steven C. Mielke, city Manager
subject: Preliminary General Fund Budget and Tax Levy
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 1st 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
1992 and 1993 budget information with the council.
Attached to this memorandum is information relating to the
1992 budget and 1993 budget options. Staff will review this
information with the Council and provide time for discussion
with the Council
.
e DISCUSSION OUTLINE
1. 1992 BUDGET
a. Adopted General Fund Budget
b. Adopted Tax Levy
c. Fund Balance Projections
2 . 1993 BUDGET
a. Review Property Valuation Data
b. 1993 Legislative Climate
c. General Fund Budget Alternative
. d. Tax Levy Impacts
3. DISCUSSION
e
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GENERAL FUND
1992 BUDGET OVERVIEW -
Fund Balance 1-1-91 $ 3,435,292 -
REVISED -
1991 BUDGET 1991 PROJECTED
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Expenditures $ 5.617,300 $ 5,548,300
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Revenues $ 5,383,800 $ 5,233,000
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Net Change $ (233,500) $ (315,300) $ (315,300) -
Projected Fund Balance 12-31-91 $3,119,992 -
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PROPOSED ADOPTED
1992 BUDGET 1992 BUDGET -
Expenditures $ 5,817,000 $ 5,817,000 -
Revenues $ 5,817,000 $ 5,817,000 -
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Use of Fund Balance $ -
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Fund Balance 12-31-92 $ 3,119,992
0=-
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General Fund Total City -,
Levy/ Tax Tax ~
Payable Tax Capacity Tax Debt Tax Capacity
Years Capacity Rate ... Levy Levy Levy Rate ... -
1991/92 17,585,486 19.26 3,795,792 863.700 4,659,492 23.64 ~
1990/91 18,672,204 17.27 3,426,000 1,082,400 4,509,000 22.73 _.
1989/90 16,476,846 19.23 3,168,171 445,000 3,613,171 21.93 ~.
~
1988/89 18,910,000 13.98 2,643,745 294,945 2,938,690 15.68
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1987/88 17,690,000 15.95 2,821,000
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1986/87 17,194,415 15.45 2,657,300
....lIIL
1985/86 16,307,510 14.75 2,406,000
1984/85 15,964,540 13.75 2,194,470
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1983/84 14,372,560 15.15 2,'77,425 -
1982/83 13,952,670 14.96 2,087,095 -
'"'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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Ire REVENUES-GENERAL FUND
COMPARATIVE ANALYSIS BY SOURCE
. 1992 BUDGET
1990 1991 BUDGET MANAGERS
SOURCE ACTUAL REVISED PROPOSED ADOPTED
II Current Revenues
Current Property Tax $ 2,500,642 $ 2,893,300 $ 3,117,800 $ 3,117,800
II Intergovernmental Revenue 1,695,483 1,499,700 1,632,000 1,632,000
License, Permits, & Fines 343,322 362,000 356,500 356,500
. Use of Money & Property 554,581 329,400 366,200 366,200
Charges for Current Services 39,364 34,000 36,500 36,500
.
-- Other Revenue 255,662 259,500 275,000 275,000
Non Revenue Receipts 97,282 5,900 33,000 33,000
-- TOTAL CURRENT REVENUES $ 5,486,336 $ 5,383,800 $ 5,817,000 $ 5,817,000
Other Financing Sources 150,078 - - -
-
- TOTAL $ 5,636,414 $ 5,383,800 $ 5,817,000 $ 5,817,000
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-- EXPENDITURES - GENERAL FUND
'~ COMPARATIVE ANALYSIS BY OBJECTIVE
-
1992 BUDGET
~ 1990 1991 BUDGET MANAGERS
OBJECTIVE ACTUAL REVISED PROPOSED ADOPTED
-
- Current Expenses
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Personal Services $ 3,731,844 $ 4,012,300 $ 4,073,900 $ 4,073,900
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Other Services and Charges 1,150,618 1,211,100 1,307,000 1,307,000
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Supplies 327,571 332,900 368,400 368,400
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Capital Outlays 47,783 52,500 56,900 56,900
....
TOTAL CURRENT EXPENSES $ 5,257,816 $ 5,608,800 $ 5,806,200 $ 5,806,200
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Other Financing Uses 429,638 8,500 10,800 10,800
- TOTAL $ 5,687,454 $ 5,617,300 $ 5,817,000 $ 5,817,000
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1992 DEPARTMENTAL BUDGET SUMMARY
Ire EXPENDITURES
. 1992 BUDGET
1990 1991 BUDGET MANAGERS
ACTUAL REVISED PROPOSED ADOPTED
. City Council $ 70,240 $ 62,300 $ 67,200 $ 66,600
Health & Welfare 39,530 41,500 42,500 43,100
-- City Manager 177,224 197,800 194,900 194,900
Elections 28,252 16,700 33,800 33,800
City Clerk 73,380 79,900 79,500 79,500
II Finance 167,423 187,800 198,300 198,300
Legal 80,331 91,000 93,000 93,000
Municipal Building 213,666 161,800 168,500 168,500
II Activity Center 126,472 150,300 150,800 150,800
~'W GENERAL GOVERNMENT 976,518 989,100 1,028,500 1,028,500
, --
- Police 1,741,702 1,822,000 1,911,200 1,911,200
~ Fire 353,256 357,000 359,900 359,900
- Civil Defense 16,052 20,800 6,300 6,300
PUBLIC SAFETY 2,111,010 2,199,800 2,277,400 2,277,400
..'..
.._.iA. C. Dev.-Administration 80,120 91,800 98,600 98,600
- C. Dev.-Plan & Econ. Dev. 67,746 79,400 80,900 80,900
-. C. Dev.-Assessing 128,387 142,500 137,700 137,700
,- C. Dev.-Inspections 216,028 228,500 235,200 235,200
. COMMUNITY DEVELOPMENT 492,281 542,200 552,400 552,400
- PUBLIC WORKS 1,421,311 1,510,700 1,515,700 1,515,700
- - RECREA TJON 117,265 124,500 135,600 135,600
- INSURANCE 35,060 22,500 21,600 21,600
-
UNALLOCA TED 104,371 220,000 275,000 275,000
TOTAL OPERATING 5,257,816 5,608,800 5,806,200 5,806,200
-
OTHER FINANCING USES 429,638 8,500 10,800 10,800
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... TOTAL EXPENDITURES $ 5,687,454 $ 5,617,300 $ 5,817,000 $ 5,817,000
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. GENERAL FUND BALANCE
1992 Fund Balance Projection..,...............$3,080,744
1993 Fund Balance Projection,.................$3,080,744
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CITY OF HOPKINS PROPERTY VALUE AND
. TAX CAPACITY COMPARISON FOR 1991 AND 1992
1991 Estimated Market Value 1991 Tax Capacity
Commercial $ 77,130,300 $ 3,414,225
Industrial 107,748,000 5,028,204
Residential 232,055,000 3,320,708
Apartment 110,978,600 3,749,288
* Other 81.3 79.600 1.832.443
TOTAL $609,291,500 $17,344,868
*Includes: Condos, Townhouses, Vacant Land. Railroads, Mobile Home Park
1992 Estimated Market Value % Change 1992 Tax Capacity % Change
Commercial $ 73,476,700 -4.7 $ 3,201,208 -6.2
Industrial 98,280,000 -8.8 4,526,595 -10
Residential 233,807,100 0.8 3,193,273 -3.8
Apartment 110,089,500 -0.8 3,623,093 -3.4
Other 79.143.600 -2.7 1.656.648 -9.6
TOTAL $594,796,900 -2.4 $16,200,817 -6.6
Improvement Amounts 1991 to 1992
Commercial $2,033,700
Industrial 100,000
. Residential 1,283,700
Apartment 0
Other 271.000
TOTAL $3,688,400
Payable 1992 Class Rates Payable 1993 Class Rates
Commercial 4.75% 4.70%
Industrial 4.75% 4.70%
Residential 1st 72,000 @ 1 %, next 43,000 @ 1st 72,000 @ 1 ~ balance @ 2%
2%, balance ~ 2.5% non-homestead 2.5%
non-homestea @ 2.8%
Apartment 3.50% 3.40%
SUBURBAN HENNEPIN COUNTY CHANGES IN ESTIMATED MARKET FROM 1991 TO
1992
Commercial -6.8%
Industrial -4.9%
Residential +1.3%
Apartment -5.8%
. Total 1991 Estimated Market Value $ 31,619,000,000
Total 1992 Estimated Market Value $ 32,044,000,000
Im~rovement Amount 1991 to 1992* $690,000,000
(* 217,678,300 in Mall of America)
Overall Growth in Suburban Hennepin County +.8%
. 1993 BUDGET ALTERNATIVES
Revenues
1992 1993
Adopted A B Q
Tax Levy $ 3,795,800 $ 3,863,600 (+1.8%) $ 3,977,900 (+4.8%) $ 4,015,000 (+5.7%)
Other Revenue 2,021,200 2,167,000 (+7.2%) 2,167,000 2,167,000
Total $ 5,817,000 $ 6,030,600 (+3.6%) $ 6,144,900 (+5.6%) $ 6,182,000 (+6.3%)
Expenditures
1992 1993
Adopted A 12 Q
Personnel $ 3,921,000 $ 4,000,000 (+2.0%) $ 4,077,800 (+4.0%) $ 4,077,800 (+4.0%)
. Capital 38,800 100,000 100,000 100,000
Other (1 ) 1,857,200 1,930,600 (+3.9%) 1,967,100 (+5.9%) 2,004,200 (+7.9%)
Total $ 5,817,000 $ 6,030,600 (+3.6%) $ 6,144,900 (+5.6%) $ 6,182,000 (+6.3%)
Other -
$ Increase $ - $ 73,400 $ 109,900 $ 147,000
Sidewalk Repair 40,000 40,000 40,000
Total $ - $ 33,400 $ 69,900 $ 107,000
% Increase
From '92 Budget 1.7 3.7 5.7
(1) Other: Includes contingency $100,000; landfill $175.000; sidewalk repair $40,000; and all other
. supplies, services and charges.
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. 1993 TAX LEVY ALTERNATIVES
1992 1993
Adopted A ~ Q
General Fund $ 3,795,800 $ 3,863,600 (+1.8%) $ 3,977,900 (+4.8%) $ 4,015,000 (+5.7%)
Debt Service 414,300 452,800 (+9.2%) 452,800 452,800
Equip. Replacement 449,400 400,000 (-10.9%) 400,000 400,000
Total Levy $ 4,659,500 $ 4,716,400 (+1.2%) $ 4,830,700 (+3.7%) $ 4,867,800 (+4.5%)
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