CR 91-174 Set Budget Hearings\ t Y O
G
C �
y CO
O P K
August 13, 1991
Proposed Action.
APPROVE PROPOSED 1991 LEVY
SET BUDGET HEARINGS
Council Report #91 - 114
Staff recommends adoption of the following motion: Move that Resolution # 91 -106
"Approving Proposed 1991 Tax Levy Collectible in 1992, Adopting the Preliminary 1992
Budget, and Setting Public Hearinq Dates ", be adopted.
Adoption of this resolution will enable compliance with the "Truth and Taxation" law
enacted by the Minnesota legislature.
Overview.
The legislation set many deadlines for specific action by the Council. The City
Council must adopt a proposed 1991 levy and set hearing dates by September 3, 1991.
Budget hearings must be held between November 20 and December 20, 1991, and a final
levy (which cannot exceed the proposed levy, but may be lower) must be adopted by
December 30, 1991.
The state government has cut local aids for cities in 1991 and "1992. Due to this
• action, the City must raise local taxes in order to maintain current service levels.
Staff is recommending that the Council adopt the maximum levy amount at this time.
During the budget process, staff will identify alternative areas in which to lower
the tax levy.
Primary Issues To Consider.
o What is the necessity for levying to the limit amount?
o What are the components of levy - General Fund and Debt Service?
o How will current actions relate to future financing?
Supporting Information.
o Background
o Resolution 91 -106
o Staff analysis of budget.
o Department of Revenue Truth in Taxation calendar.
o County Auditor budget hearings calendar.
o Preliminary 1992 General Fund Budget.
ov
4Pn E Finance Director
Approve Proposed 1991 Levy
Set Budget Hearings
Report 91 -174
Page 2
Background
The advent of "Truth and Taxation" legislation which drastically
changed the time table for the budgeting process continues on the same
schedule as last year. With the increasing limitations on the City's
ability to levy taxes and the cutting of state aids, taxes and state
government aids which are the driving factors in the financial
sources, reduce the ability to maintain or provide growth in operating
services.
General Fund
The preliminary General Fund budget process is keyed on the cost of
personnel, which accounts for 70% of General Fund costs. These costs
were determined when the actual levy limits and LGA were released by
the Revenue Department. From the revenue available then is subtracted
the personnel costs and the remainder of the budget is shaped to
funding available.
The 1992 Preliminary Budget thus is being reported to the Council with
departmental totals only, developed with actual personal service
projections and percentage increases for other costs.`" The departments
then will develop their regular line item budgets within the
parameters established.
General Fund
Revenue Summary
Source Amount % Change
Levy (at levy limit plus
$100,000 Special Levy) $3,795,800 10.8%
Local Government Aid (after cuts) 762,300 (22.6)
Other Revenue _1_,259.900 0.0
1992 Total General Fund Revenue $5,818,000 2.4%
This is a total increase of $369,200 from the actual 1990 General Fund
levy. The legislature eliminated inflation and population growth
factors and cut 1992 LGA $222,000. The formula changes for levy and
LGA resulted in no net change from last year.
Approve Proposed 1991 Levy
Set Budget Hearings
Report 91 -174
Page 3
A maximum 1991 levy would increase 1992 taxes:
LGA cuts $222,600
Special landfill levy 100,000
1990 under levy carries forward
in the base 46,600
$369,200
General Fund
Expenditure Summary
1992
Change
Personal Services
$4,058,000
2.0%
Other Charges and Supplies
1
3.0
Landfill- cleanup & monitoring
15.0,000
-
Non - departmental
131,000
-
Capital Outlay
100,000
65.8
1992 Total
$5,818
6.1%
Landfill service charges are proposed to cover past and
future
monitoring costs and to begin recovery on some of the City's share
of
cleanup costs. Under special legislation, $100,000
would be a
Special
Levy under the "service charge on net tax capacity"
section.
The non - departmental area includes
contingency, insurance and
Hap -A-
Ride support.
Capital outlay,'after two years of
drastic cuts,
is restored
to the
previously established level.
Approve Proposed 1991 Levy
Set Budget Hearings
Report 91 -174
Page 4
GENERAL FUND
1992 PRELIMINARY DEPARTMENT EXPENDITURES
40410
Mayor- Council
$ 85,500
40415
Health & Welfare
44,300
40420
City Manager
228,400
40440
Elections
22,400
40510
City Clerk
76,600
40520
Finance
191,500
40600
Legal Services
83,500
40940
Municipal Building
130,500
40950
Activity Center - Maint.
47,400
40960
Activity Center - Operating
89,900
41100
Police
1
41200
Fire
368,900
41300
Civil Defense
21,100
41400
C. Dev. - Administration
92,9.00
41500
C. Dev. - Plan & Econ Dev.
80,000
41600
C. Dev. - Assessing
143,900
41800..
C. Dev. - Inspection
231,500
42100
P.W. - Buildings
31,900
42110
P.W. - Equipment Services
52,300
42120
P.W. - Administration
113,700
42125
P.W. - Engineering
115,200
42130
P.W. - Streets & Alleys
390,200
42140
P.W. - Snow & Ice Removal
99,800
42160
P.W. - Traffic Signs & Signals
124,100
42170
P.W. - Street Lighting
113,100
42240
P.W. - Street Cleaning
53,000
42250
P.W. - Parks
347,600
42260
P.W. - Tree Service
114,200
43510
Recreation
124,500
Landfill - cleanup & monitoring
150,000
43930
Insurance
23,000
43931
Unallocated
100,000
43932
Transfers Out
8,000
Capital Outlay
100,000
Total.
$5,818,000
Approve Proposed 1991 Levy
Set Budget Hearings
Report 91-174
Page 5
Levy Decrease Debt Service
The 1991 levy for debt is $863,700, a decrease of $218,700 (20.2 %)
from last year's.levy of $1,082,400. The requirements for 1992 debt
service are $332,900 for Park Bonds, $81,400 for Improvement Bonds and
$449,400 for Capital Certificates of Indebtedness.
Total Levy
The 1991 Proposed Levy would increase taxes $150,492 or 3.3% over last
year. Taxes to support the General Fund increase 10.8% of which 4.4%
relates to the landfill and 6.4% to operating. Debt service levies
decrease 20.2 %. The proposed increase for General Fund total
expenditures is $335,400 (6.1 %) which includes a new budget item of
$150,000 for continued landfill problems.
In order to regain the target of cash flow and the uncertainties of
future actions by other governmental units.. I strongly suggest the
levy be made at the maximum allowable.
CALENDAR FOR PROPOSED PROPERTY TAXES, PUBLIC HEARINGS AND
FINAL PROPERTY TAXES FOR PAYABLE 1992
ON OR BEFORE AUGUST 1, 1991
ON OR BEFORE AUGUST 15, 1991
ON OR BEFORE AUGUST 20, 1991
ON OR BEFORE SEPTEMBER 3, 1991
The county auditor notifies the clerk of each
school district within the county of the dates that
the county board has selected for its public
hearing and for the continuation of its hearing, if
necessary.
Each school board certifies to the county
auditors of the counties in which the school
district is located the dates that it has selected
for its public hearing and for the continuation of
its hearing, if necessary. If not certified by this
date, the county auditor will assign the hearing
date. The dates for the school district hearings
must not conflict with the county hearing.
The county auditor notifies the clerk of each city
within the county of the dates on which the
county and school districts will be holding their
public hearings or continuations of their hear-
ings.
Each city certifies to the county auditor the dates
that it has selected for its public hearing and for
the continuation of its hearing, if necessary. If
not certified by this date, the county auditor will
assign the hearing date. The date for the city's
hearing or for the continuation of its hearing must
not conflict with the hearing dates of the county
or of the school districts in _which the city is
located. All cities, regardless of their population,
must hold public hearings on their proposed
property taxes.
ON OR BEFORE SEPTEMBER 3,1991
Each "taxing authority" other than a school dis-
trict adopts a proposed budget for 1992. Each
"taxing authority" including a school district cer-
tifies its proposed (or, in the case of a town, its
final) property tax levy for payable 1992 to the
county auditor. "Taxing authority" includes all
counties, all school districts, all cities regardless
of their population, all towns and all special taxing
districts. No local units of government are ex-
empted from this requirement.
(Over)
ON OR BEFORE NOVEMBER 8, 1991
NOT LESS THAN TWO BUSINESS DAYS
NOR MORE THAN SIX BUSINESS DAYS
PRIOR TO THE PUBLIC HEARING
In all counties except Hennepin, _ Ramsey and
St. Louis, the county auditor prepares and the
county treasurer delivers a generic notice of
proposed property taxes by first class mail to
each property owner at the address listed on the
county's current year assessment roll. The date,
time and place for the scheduled public hearings
for the county, school district and city (if the
property is within a city) will be shown along with
other information. In Hennepin, Ramsey and St.
Louis Counties, the county auditor prepares and
the county treasurer delivers a parcel specific
notice of proposed property taxes to each
property owner. Except for being parcel
specific, the content of this notice is similar to the
generic notice. The Department of Revenue is
to prescribe the form of generic or parcel specific
notice to be used.
Counties, school districts and cities over 1,000
in population advertise their public hearing in an
official newspaper of general circulation within
the taxing authority. Cities of 1,000 population
or less must post their notice in the three most
public places within the taxing authority. Both
the publishing and the posting procedures are
subject to specific requirements as to content,
presentation and newspaper selection (or post-
ing place). The advertisement must give notice
of the taxing authority's intent to adopt its pay-
able 1992 property tax (and, in the case of a
county or city, its payable 1992 budget) at the
public hearing. Towns and special taxing dis-
tricts are exempt from this publication or posting
requirement.
NOVEMBER 15 THROUGH DECEMBER 20,
1991
AT LEAST FIVE BUSINESS DAYS BUT
NO MORE THAN 14 BUSINESS DAYS
AFTER THE PUBLIC HEARING
Counties, school districts and cities hold their
public hearings and adopt their final payable
1992 property taxes (and, in the case of counties
and cities, their final budgets) at the hearing.
If the public hearing is not completed on its
scheduled date, the taxing authority must an-
nounce, prior to adjournment of the public hear-
ing, the date, time and place for the continuation
of the hearing.
2
ON OR BEFORE 5 BUSINESS DAYS
AFTER DECEMBER 20, 1 991
•
Counties, school districts, cities and special
taxing districts certify their final adopted property
taxes to the county auditor. (Towns certify their
final property taxes by September 3, 1991.) The
final property tax certified by a county, school
district or city cannot exceed its proposed
property tax except for several exemptions
authorized for events occurring after the
proposed property tax was certified. If a town
board modifies the town's final property tax at a
special town meeting after September 3, the
town board must recertify its modified property
tax at this time. If a county, school district, city,
town or special taxing district has not certified its
final property tax by this time, its property tax
shall be the amount levied by it in the preceding
year.
3
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 91 -106
A RESOLUTION APPROVING PROPOSED 1991 TAX LEVY
COLLECTIBLE IN 1992, ADOPTING THE PRELIMINARY 1992 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 1992. upon the taxable
property in said City of Hopkins, for the following purposes.
General Fund $3,795,792
Capital Equipment Notes 449,400
General Obligation Bonds 414,300
This levy is made based on current law and the 1992 General Fund Budget of
$5
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
G.O. Sewer Revenue Bonds 12 -1 -89
Redevelopment Bonds 12-1-89
Capital Equipment Certificate of
Indebtedness 12 -1 -91*
Park Bonds 3 -1 -90*
Special Assessment Bonds 3 -1 -90*
Redevelopment Bonds 3 -1 -90
Refunding Bonds 3 -1 -90
*Levy
Public hearing date for the 1992 budget is November 26, 1991, with a reconvening
date of December 4, 1991, if necessary.
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 20th day of August, 1991.
ATTEST:
Nelson W. Berg, Mayor
By
James A. Genellie, City Clerk