Memo - 2010 BudgetCITY OF HOPKINS
MEMORANDUM
Date: August 7, 2009
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: 2010 Budget
FINANCE DEPARTMENT
Attached is the preliminary General Fund budget and tax levy. You will note that the budget is
not yet balanced. The gap between the levy needed to balance the budget and the council's levy
goal is approximately $151,000. We have incorporated some budget adjustments but more work
needs to be done to close this gap.
At the work session Rick and I will detail what has been done to get the budget to the point we're
at and outline some options and have a discussion on what we need to do to balance the budget.
Attached is also preliminary tax rate information that will hopefully we'll be able to update by
Tuesday.
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CITY FINANCIAL SITUATION
2008 LGA
2008 MVHC
2008 LGA cut
2008 MVHC cut
25,000
123,430
2009 LGA proposed cut
2009 MVHC proposed cut
2010 LGA proposed cut
2010 MVHC proposed cut
LGA goes to the Art Center
MVHC goes to the General Fund
Based on 2% drop in overall values
City Tax Rate
City Tax Rate Increase
Based on 4% drop in overall values
City Tax Rate
City Tax Rate Increase
Based on 6% drop in overall values
City Tax Rate
City Tax Rate Increase
IMPACT ON MEDIAN VALUED HOME
Median Valued Home - no change
Tax change from 2009
Median Valued Home - 4% drop
Tax change from 2009
Tax change from 2009 at 2009 values
50,000
246,859
50,000
245,520
50,000
244,667
2009 2010
General Fund Budget 10,075,492 10,203,800
General Fund Levy (incl PERA & Special for MVHC) 8,196,114 8,532,685 4.50%
Total Levy 9,553,114 9,925,685
Tax Levy Increase 3.9% 3.9%
City Tax Rate 47.306% 49.981% Based on 3/31/09 values per Hennepin County
1.71% estimated decrease in values net of estimated TIF increase
City Tax Rate Increase 1.90% 5.65% -- very preliminary
50.128%
5.965%
51.172%
8.173%
52.261%
10.474%
Taxes
Current
Tax Cap Tax Tax Rate Tax Rate Tax Rate Tax Rate Tax Rate
Rate Capacity 47.306% 49.981% 50.128% 51.172% 52.261%
225,000 1.00% 2,250 1,064 $ 1,125 $ 1,128 $ 1,151 $ 1,176
$ 60 $ 63 $ 87 $ 111
216,000 1.00% 2,160 1,022 $ 1,080 $ 1,083 $ 1,105 $ 1,129
$ 58 $ 61 $ 84 $ 107
$ 15 $ 18 $ 41 $ 64
Median Valued Home - 6% drop 211,500 1.00% 2,115 1,001 $ 1,057 $ 1,060 $ 1,082 $ 1,105
Tax change from 2009 $ 57 $ 60 $ 82 $ 105
Tax change from 2009 at 2009 values $ (7) $ (4) $ 18 $ 41