CR 96-143 General Budget FundAugust 29, 1996
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Staff recommends adoption of the following
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The Truth in
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Proposed levy and set hearing specific action by the City Council. The City Council must adopt
General Fund budget dates
that time, get must be established conformance the the fins! levy and b Adoption with the statute.
that o budget may not exceed those adopted budget will occu stage. ally, a prelimin
ary
options are presorted for the Pied at this ary December and, from $6,64 General Fund budget Prelhitin at
to % to 4.2 oe total City tax lev w ' o u d f ran a re9u 7 a c h g n th e 6 F
0.0! to o General I General Fund Fund tax levy.
g ets
• g from $51 I7,000 to $5334 tax l a
Staff re 200, a Y front -1.6%
d eliberating that Co Percentage increase of •
berating the final levy Council select a
IA ;t1 I and budget after the publi he Wi g$ Y that w ill a llow some flexibility when
•
• How does h e 1996 budget compare to
Proposed bud p the I997 budget
get impact proper[y taxes?
o t•
• Staff analysis of issues
• General Fund D eparhne S nu 1 Budget Summary
• General Fund Revenue
• Tax Levy Estimate um
• • Resolution Hopkins p tax impacts
don #96_70
• Public hearings calendar
ohn E. Schedler, Pittane for
Council Report 96 -143
Council Report 96 -143
August 29, 1996
Page 2
Primary Issues to Consider
How does the 1996 budget compare to 1997?
The staff is recommending that the Council adopt a preliminary budget within the range of options 3
and 4. These options maintain services with normal expenditure increases adjusted for inflation.
Salary ranges and services /charges and supplies would increase by 2.5% salaries and 3.0% other.
There is no change proposed in contingency and the landfill funding would remain at the $100,000
level.
Option 3 increases services in the Public Safety and Public Works areas with a negligible effect on
the tax capacity rate and actual taxes.
Option 4 funds existing services and programs.
Options 1 and 2 would reduce services.
• How does the proposed budget impact property taxes?
The overall increase of 3.4% in the City's estimated market value will help to keep the tax rate in
check.
The attached property tax impacts schedules present the tax payable effect of the various options on
a range of residential and commercial market values.
GENERAL FUND BUDGET EXPENDITURES
1996 1997 Preliminary
Adopted Option #4 Option #3
General Government $ 1,087,500 $ 1,162,900 $ 1,162,900
Public Safety 2,650,800 2,714,600 2,756,800
Community Services 755,300 701,800 701,800
Public Works 1,662,300 1,699,300 1,709,300
Recreation 130,300 165,200 165,200
Insurance 28,200 33,000 33,000
Unallocated 200,000 200,000 200,000
Special Projects 55,000 119,000 119,000
Other (Hop -A -Ride) 22,600 10,500 10,500
$ 6,592,000 $ 6,806,300 $ 6,858,500
Notes:
1. The General Fund portion of the total City 1996 levy would increase by 4.2%
(option #3) or 3.2% (option #4).
2. The calculated increases over the 1996 budget was for salaries /fringes 2.5% and
most other charges and supplies 3 %. Changes to maintain present programs that
increased more than 3% were: Shady Oak Beach $50,000; Joint Recreation
$25,000; and Activity Center floor $7,000.
3. Capital outlays decreased $55,100, bringing the total to the normal target of $100,000.
4. All categories of revenue are projected to increase moderately. Tax revenue after
credits would increase $71,390 (2.1 %) under option #4 and $123,590 (3.7 %)
under option #3.
Personal Services
2.5% Increase
Services /Supplies
3.0% Increase (includes one
time increase 4.4 %)*
Capital Outlay 155,100
Return to Standard Amount
Option #4
GENERAL FUND
1997 Estimate - Expenses
1996
Budget
*Shady Oak Beach $50,000
Joint recreation 25,000
Activity Center floor 000
$82,000 1.2% Total Budget
Option #3 $ 6,592,000
Police personnel increase -
Civilian Crime Prevention person
Allows one sworn officer to return to Patrol
Public Works -
Transfer janitor to Maintenance II
and contract Activity Center cleaning
1997
1,828,800 1,977,500
100,000
42,200
10,000
Option #1 $ 6,592,000 $ 6,641,300
Change
$ 4,608,100 $ 4,728,800 $ 120,700
148,700
$ 6,592,000 $ 6,806,300 $ 214,300
$ 6,858,500 $ 266,500
Option #2 $ 6,592,000 $ 6,724,300 $ 132,300
2.6
8.1
(55,100) (35.5)
3.2%
4.0%
2.0%
49,300 0.7%
Adopted Estimate S
Tax Levy $ 4,313,000 $ 4,407,000 $ 94,000 2.2
Revenues
Taxes after Credits $ 3,374,410 3,445,800 71,390 2.1
HACA 938,590 961,200 22,610 2.4
LGA 804,900 851,800 46,900 5.8
Interest 250,200 300,000 49,800 19.9
Administration Fee 381,000 400,600 19,600 5.1
Other Revenues 842,900 846,900 4,000 0.5
Option #4 $ 6,592,000 $ 6,806,300 $ 214,300 3.2%
Tax Levy
Tax After Credits
4 459.200
3,498,000
4,325,000
3,363,800
4.242.000
3,280,900
GENERAL FUND
Revenues -1996 vs. 1997
1996 1997 Increases
Option #3 $ 6,592,000 $ 6,858,500 $ 266,500 4.0%
Option #2 $ 6,592,000 $ 6,724,300 $ 132,300 2.0%
Option #1 $ 6,592,000 $ 6,641,300 $ 49,300 0
0.7 /o
TAX LEVY ESTIMATE
Difference
1995 -6 1996 -7 S %
General Fund $ 4,313,000 $ 4,407,000 $ 94,000 2.2
Equipment Replacement Fund 450,000 485,000 35,000 7.8
Park Bonds 248,000 280,000 32,000 12.9
Improvement Bonds 106,000 110,000 4,000 3.8
Option #4 $ 5,117,000 $ 5,282,000 $ 165,000 3.2%
Option #3 $ 5,117,000 $ 5,334,200 $ 217,200 4.2%
Option #2 $ 5,117,000 $ 5,200,000 $ 83,000 1.6%
Option #1 $ 5,117,000 $ 5,117,000 $ -0- 0.0%
To: Steve Mielke, City Manager
John Schedler, Finance Director
From: Bob Wilson, City Assessor
Date: Wednesday, August 28, 1996
Subject: Property Tax Impacts
I have calculated proposed city tax rates and corresponding tax estimates for
residential and commercial property in Hopkins. I have utilized the following four
scenarios:
Option 1 - Freeze levy at 1995/96 amount of $ 5,117,000
Option 2 - Increase levy to $ 5,200,000 (1.6 percent increase)
Option 3 - Increase levy to $ 5,334,200 (4.2 percent increase)
Option 4 - Increase levy to $ 5,282,000 (3.2 percent increase)
All figures used in calculating proposed tax rates for 1997 are based on estimated
figures available as of 8/26/96. The estimated market value increases from 1995 to
1996 are based on the overall growth for that property type. Individual property value
changes and resulting tax impacts will vary.
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Residential Homestead
1995
Estimated Taxes
Market Payable
Value 1996
$ 72,000 $ 205.50
86,400 287.70
105,600 397.30
144,000 616.51
216,000 1027.51
288,000 1438.52
PROPERTY TAX IMPACTS FOR HOPKINS
TAXES PAYABLE 1996 VS. ESTIMATED TAXES PAYABLE 1997
Assumes a 4.2 percent increase in market value from 1995 to 1996. Dollar amounts are figured
on the City's portion of the homestead tax.
Commercial/Industrial
1995
Estimated
Market
Value
$ 196,000
1 125 000
Taxes
Payable
1996
$ 2,573.35
14 770.49
1996
Estimated
Market
Value
$ 75,000
90,000
110,000
150,000
225,000
300,000
1996
Estimated
Market
Value
$ 198,000
1,136,000
Est. Taxes
Payable 1997
Option
#1
+ $ 5.90
+ 5.01
+ 3.82
+ 1.44
3.02
7.48
Est. Taxes
Payable 1997
Option
#1
Option Option Option
#2 #3 #4
+ $ 10.79
+ 11.78
+ 13.13
+ 15.73
+ 20.68
+ 25.62
+ $ 18.71
+ 22.75
+ 28.13
38.88
+ 59.05
+ 79.22
+ $ 15.63
+ 18.48
+ 22.28
+ 29.87
+ 44.12
+ 58.36
Option Option Option
#2 #3 #4
- $104.81 - $47.70 +$44.74 +$ 8.77
- 607.55 - 279.90 + 250.50 + 44.09
Assumes a 1.0 percent increase in market value form 1995 to 1996. Dollar amounts are figured
on the City's portion of the property tax.
Commercial
Industrial
•
Residential
Apartment
Other
TOTAL
Commercial
Industrial
Residential
Apartment
*Total 1995 Estimated Market Value
Total 1996 Estimated Market Value
Improvement Amount 1995 to 1996
Overall Growth in Suburban Hennepin County (excluding
improvement amt.)
CITY OF HOPKINS PROPERTY VALUE AND
TAX CAPACITY COMPARISON FOR 1995 AND 1996
1995 Estimated Market Value
Commercial $ 69,328,300
Industrial 89,924,600
Residential 336,631,000
Apartment 105,641,600
*Other 925,800
TOTAL $602,451,300
1995 Tax Caoacity
$ 2,958,628
4,055,707
4,930,619
3,429,644
17,431
$15,392,029
1996 Estimated Market Value % Chanae 1996 Tax Capacity % Chanae
Commercial $ 71,318,000 + 2.9 $ 3,044,600 + 2.9
Industrial 92,404,300 + 2.8 4,171,371 + 2.9
Residential 353,794,500 + 5.1 5,241,185 + 6.3
Apartment 104,346,500 - 1.2 3,351,300 - 2.3
Other 925.800 0.0 17,431 0.0
$ 622,789,100 + 3.4 $15,825,887 + 2.8
includes: Mobile Horne Park, Greenhouse, Nonprofit
Improvement Amounts 1995 to 1996
$ 501,200
2,095,000
1,225,100
0
0
$3,821,300
Payable 1996 Class Rates Payable 1997 Class Rates
Commercial 4.60% 4.60%
Industrial 4.60% 4.60%
Residential 1st 72,000 @ 1 %, 1st 72,000 @ 1 %,
balance @ 2% balance @ 2 %,
non- homestead @ 2.3% non- homestead @ 2.3%
Apartment 3.40% 3.40%
SUBURBAN HENNEPIN COUNTY CHANGES IN ESTIMATED MARKET FROM 1995 TO 1996
+ 7.4%
+ 7.3%
+ 4.0%
+ 5.3%
$36,475,366,900
$38,961,539,834
$ 714,496,100
+ 4.9%
8/28196
•
CITY OF HOPHINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 96-70
RESOLUTION APPROVING PROPOSED 1996 TAX LEVY
COLLECTIBLE IN 1997, ADOPTING THE PRELIMINARY 1997 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 1997 upon the taxable property in
said City of Hopkins, for the following purposes.
General Fund $4,459,200
Equipment Replacement Fund $ 485,000
General Obligation Bonds $ 280,000
Improvement Bonds $ 110.000
Total Levy $5,334,200
This levy is made based on current law and the 1997 General Fund Budget of $6,858,500.
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 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
*L
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 1997 budget is December 4th, 1996, with a continuation date of December
11th, 1996.
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 at a regular meeting of the Council held this 3rd day
of September, 1996.
A 11 EST:
Charles D. Redepenning, Mayor
James A. Genellie, City Clerk
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