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Memo- 2007 Preliminary Budget-Round 3CITY OF HOPKINS I+'INANCE DEPARTMENT MEMORANDUM Date: August 25, 2006 To: Mayor & City Council From: Christine Harkess, Finance Director Subject: 2007 Preliminary Budget -round 3 Attached is the preliminary 2007 budget after incorporating all General Fund Department requests. The budget currently shows a 6.33% increase in expenditures, which relates to a 6.87% levy increase. No changes have been made to the budget since the last council work session. Included in the budget information is the following: 2007 Proposed Expenditures 2007 Proposed Revenues 2007 Proposed Tax Levy -updated with tax rate impact Listing of factors that impact the 2007 budget During the August council work sessions we will be reviewing the departmental requests that will result in approval of a 2007 Preliminary Budget and Tax Levy at the September 5th council meeting. Starting off the departmental review process on August 8th was the Police and Fire Chiefs. We reviewed their budgets and discussed their requests. At the August 22nd council work session we reviewed Public Works and Community Services budgets. At the August 29th council work session we will do a final preliminary review on the 2007 proposed budget that will be presented and approved at the September 5th Council Meeting. At this work session we will need to make a decision regarding the levy that will be proposed and appear on the truth-in-taxation notices. I will also bring to Tuesday's meeting an analysis of the tax impact on various property owners that will help with our decision in setting a proposed tax rate. •O Oo N ~ (~ CD N <. O !A O CD O Q N , * Z ~ '0 ~ -I X '~ ~ ~ (A 7"I n H ~ C7 ~ ~ m -, c ~ ~ f O ~ 0 ty 01 ~ n ~ , ,* ~ , .~• ~ ~ ~ ~ O ~ ~ 5 < O O N ~ ~ ~ O ~ ~ ~ O .-. ~ ~ ~ ~ n ~ ~ ~ ~ m ~ •~ v 0) ~ ~ ~ o ,~ m O Q' X ~R1 O N O < ~ C7 _ ~ O. (D ~ ~ ~ ~ O ~ r D t~ rn y ~ W ~ ~ ~ ~ CO37 C11 ~i A \ \ ~ di ~A ~i ~ O ~ V N W -~ W V C1f V ~ ODD 000 0 o e ~ =~ ~A ~A W CO Ctt t71 A ~ O ~ o o N ~ ~ W ~ W 0 W ~ OD C O W O N tG N O O 0 0 o O j ~ t~~t ~ tC V ~ ~ 00 ~ 0 O 0 0 0 N ~ O ~ O =~ ~ ~ ~ _ °~' m ~ ~ ~ ~~ -i to o r ~ d 00 ~' ~ ^~ ~ cu - su c~ ~ r c a• m m r ~ ~ ~ < r ~ ~• ~ ~ m ~ nt ~ ~ ~, r ~ ~. rt N ~ N tD ~ O ~ ~ ~ N N C 1 N ~ ! r ' < y ~D .P. O $A V ~ CA v ~ .-. y ~ ~ I~ ~ III II O O V 0 ~ ~ rn {~ N N ~ O O O ~ O OD W N Z O O ~ O N n O O C31 f JI ~ ~ ~ N O Efl fA fl9 &9 0 ~ O O W O 11 0 ~ ~ O W ~ O O O O N O Ut v ~( ~ r Z m N ~ o, ~ rn < N ~ C "'~ ~ U1 ~ ~ 00 O O O -~ ~ ~ ~ O O O W d9 4d9 N O O O O O O C31 -~ ~ ff~ ffl ffl ~ ~ ~ N V V 0 ~ ~ 1 ~ ~ O 31 ( O 0 0 O U ~ y O x V ~ ~ O O O O O O O 00 O O U1 W V UH fi9 EA ~ ~ N ~ ~i f~ ffi N ~ N O ~ O J7 ~ ~ O C ~ O O O 0 0 0 OD N O O O O O O ~1 OD O O -~ O O O Ut W ~ ~ ~ 4fl b9 ffl ~ ~ ~ .~ 1 0 ~ O N O 0 ~ V 0 ~ N ~ N ~ •O O ~i ~1 U7 V U7 O O O ~ 00 y V N O O O O ~! 0 0 0 ~ ~ ( O' Oi O O O O Ot O O U1 ~ O tD O b9 Oo O O O O fD Q O fD N N n D 3 rt CITY OF HOPKINS PROPERTY VALUES IN HOPKINS - 2007 LEVY Real Estate Personal Properly Total Tax Capacity for the City Fiscal Disparities Contribution Tax Increments 2006 Final 2007 Proposed Tax Capacity Tax Capacity Value Value Tax Capacity Used for Local Rates Fiscal Disparities Distribution Adjusted Net Tax Capacity Steps to Calculate City Tax Rate Tax Capacity Used for Local Rates 18,240,461 176,371 18,416,832 (1,952,996) (841,639) 15,622,197 1,836,753 17,458,950 19,984,824 (2,116,466) (841,636) preliminary - pybl '07 NA 17,026,722 (A) 1,997,455 19,024,177 15,622,197 17,026,722 (A) Tax Levy Certified to County 8,438,078 9,017,526 Less Fiscal Disparities Distribtuion in Dollars (1) (898,980) (964,012) per Hennepin County Net Levy to Determine Tax Rate 7,539,098 8,053,514 (B) Tax Rate Increase (Decrease) 48.262% 47.299% (B) divided by (A) -1.995% (1) Fiscal Disparity Distribution Dollars =Distribution value x last years tax rate (formula works when class rates don't change) or 1,997,455 x .48262 2007 BUDGET -ITEMS IMPACTING THE BUDGET/LEVY Capital Improvement Levy Increase 25,000 4 New Firefighters 11,000 Medical Standbys 71,912 cost over current program 1 New Dispatcher 53,300 Increase in Salaries & Benefits excluding Insurance 234,500 Increase in PT Salaries 18,000 Increase in Health Insurance -employees & retirees 84,000 included in contingency Comp Plan 20,000 Activity Center Gym Floor 12,500 ERP Increase to catch-up for cuts in 2003/2004 24,000 Tuition Reimbursement 15,000 Marketing & Branding Initiative amount unknown -covered in contingency Heating & Electricity 16,500 Asphalt & Sealcoating 22,000 Snow Removal -Chemicals 10,000 Parks -Maintenance Contract for Co Rd 3 Boulevard 28,200 CITY OF HOPKINS ANALYSIS OF GENERAL FUND REVENUE BUDGET 2006 2007 Department Budget Budget Incr/(Decry of total Property Taxes $ 7,211,078 $ 7,748,711 7.46% 81.99% Intergovernmental Revenue PERA Aid $ 20,510 $ 20,510 0.00% Police -Federal Grant $ 1,000 $ 1,000 0.00% Police -State Aid $ 149,900 $ 154,000 2.74% Police -POST Reimbursement $ 5,000 $ 8,000 60.00% Police - Misc Grants $ 4,000 $ 4,000 0.00% Police - 911 Service Fee $ 12,000 $ 12,000 0.00% Fire -State Aid $ 99,500 $ 99,500 0.00% Fire -County $ 4,000 $ 4,000 0.00% PW -State Aid $ 116,000 $ 115,000 -0.86% Total Intergovernmental Revenue $ 411,910 $ 418,010 1.48% 4.42% Licenses, Permits & Fees Court Fines $ 141,000 $ 141,000 0.00% Building Permit & Inspection Fees $ 383,500 $ 387,000 0.91 Business Licenses $ 7,400 $ 7,500 1.35% Liquor ,Animal Licenses & Penalties $ 90,900 $ 98,000 7.81 Fire Licenses & Permits $ 4,500 $ 4,800 6.67°l° PW -Licenses & Permits $ 5,500 $ 5,100 -7.27% P&Z -License & Permits $ 6,600 $ 6,600 0.00% Total Licenses, Permits & Fines $ 639,400 $ 650,000 1.66% 6.88% _ Charges for Service Finance Department $ 2,200 $ 2,200 0.00% Activity Center $ 55,000 $ 60,000 9.09% Assessing $ 300 $ 300 0.00% Inspections $ 92,000 $ 95,000 3.26% City Clerk $ 2,100 $ 2,500 19.05% Police $ 41,400 $ 41,400 0.00% Fire $ 2,600 $ 2,600 0.00% Public Works $ 4,650 $ 4,650 0.00% Planning & Zoning $ 500 $ 300 -40.00% Total Charges for Service $ 200,750 $ 208,950 4.08% 2.21 Miscellaneous Revenue Franchise Fees $ 290,000 $ 290,000 0.00% Acitivty Center $ 13,200 $ 12,000 -9.09% Elections $ - $ - #DIV/0! Police $ 9,500 $ 10,750 13.16% Fire $ 2,000 $ 2,000 0.00% Public Works $ 450 $ 500 11.11 Total Miscellaneous Revenue $ 315,150 $ 315,250 0.03% 3.34% Interest Earnings $ 110,000 $ 110,000 0.00% 1.16% Total Revenues $ 8,888,288 $ 9,450,921 6.33% 100.00% m O 0 N N N .~ N tY Z ~ ~ ~ a~ 06 _: u. ~ O ~' ~~ .~ C d E O U o~ °f v L ~ ~ V •~ N~+ V ~ N N d ~ 41 V ''- a . .°~' a ~ ~ ~ N d .~ t/1 L o d ~ N c ~a ~C ti ~ O = O = N G U O N m ~° p L w N d ~ ~, ~~ 'v v cu ~. O m C .~ N N N O 0 O 0 : ~ `~ 0 co ca U N Q O .c N 0 00 0 ° ° ° ° o o o o am N ~ N d ' 69E!?~~'696969 i i i ~ ~ i i 69 69 69 69 69 69 69 ~~ 0~00O0~OOO(D N O N N O r 00 O d' ~ N ~~ f V N 69 d4 69 69 fF} 69 69 6f} 69 ~ 1M~O1~COO~~ c!' ' (~I~OOOOMOr N O N ~ ~ ~ ~ ~ 69 69 69 69 69 69 69 69 69 \° \° \° \° \ \° \° \° \° \° \° 0 0 0 0 0 0 0 0 0 0 0 OOO MI~d'Or~'000 0 0 0 In O r d' M ~f r t!! 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