CR 06-146 The 2007 Tax Levy & General Fund Budget
December 19,2006
Council Report 2006-146
THE 2007 TAX LEVY AND GENERAL FUND BUDGET
Proposed Action
Staff recommends adoption of the following motion: Move to Adopt Resolution 2006-090
approving the 2007 tax levy and adopting the 2007 General Fund budget.
Adoption of this motion will result in the staff forwarding the appropriate documentation to
Hennepin County for completion of the property taxes for 2007 and will approve the 2007
General Fund budget.
Overview
The City Council and staffhave held a number of meetings during 2006 to prepare for the 2007
general fund budget and 2007 tax levy. In addition we provided an opportunity for the public to
offer input on the 2007 budget through the Truth-in-Taxation hearing held on December 4,2006.
Budget goals were adopted this spring and were instrumental in guiding the staff as it prepared
budget requests. During 2006 the council adopted other financial plans, the Capital Improvement
Plan and the Equipment Replacement Plan, that along with a series of program and budget
discussions were instrumental in the development of the 2007 budget.
The budget in its current form recommends spending in the general fund at $9,269,767 and a
total tax levy of$8,805,758. The levy includes provisions for general fund operations, PERA
contributions, HRA levy, capital funding, and debt obligations.
Staff is recommending that the council adopt the resolution approving the tax levy for 2007 and
setting the 2007 general fund budget.
Primary Issues to Consider
The state mandates certification of the 2007 levy to the County Auditor no later than
December 28, 2005
Supportin!! Information
Resolution 2006-090
Comparative Tax Levy for years 2004-2007
2007 General Fund Budget
~~
Christine M Harkess, CPA, CGFM
Finance Director
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2006-090
RESOLUTION APPROVING 2007 TAX LEVY
AND ADOPTING THE 2007 GENERAL FUND BUDGET
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 2007 upon the taxable property in the City of Hopkins, for the
following purposes.
General Fund
PERA Rate Increase
Capital Levy
HRA Levy
1999D GO PIR Bonds
2001 GO Rfdg Improv Bonds
2001 GO Rfdg Park & Rec Bonds
2002B GO Improvement Bonds
HRA Lease Revenue Bonds
Total Levy
$ 7,516,943
$ 11,815
$ 50,000
$ 20,000
$ 26,000
$ 62,000
$ 175,000
$ 59,000
$ 885.000
$ 8,805,758
This levy is made based on current law and the 2007 General Fund Budget of $9,269,767.
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 the levy adoption presentation of the Council held this 19th
day of December, 2006.
ATTEST:
Terry Obermaier, City Clerk
Eugene Maxwell, Mayor
--- ---- - ----- -- ---- - ---- -- -
CITY OF HOPKINS
ANALYSIS OF TAX LEVY
2007 2007
Net Levy Net Levy
Purpose 2004 2005 2006 Proposed Revised
Gen ral Operations
General Fund $ 6,654,321 $ 7,261,263 $ 7,164,263 $ 7,728,711 $ 7,516,943
Other Levies:
PERA Levy $ 11,815 $ 11,815 $ 11,815 $ 11,815 $ 11,815
Capital Levy $ - $ 25,000 $ 25,000 $ 50,000 $ 50,000
HRA Levy $ - $ 10,000 $ 20,000 $ 20,000 $ 20,000
Total General Levy * $ 6,666,136 $ 7,308,078 $ 7,221,078 $ 7,810,526 $ 7,598,758
Special Levies:
1999D GO Perm Impr Revolving Bonds $ 26,000 $ 26,000 $ 26,000 $ 26,000 $ 26,000
2001 GO Refunding Bonds -Improv Rev $ 65,000 $ 62,000 $ 62,000 $ 62,000 $ 62,000
2001 GO Refunding Bonds - Park & Rec $ 210,000 $ 190,000 $ 180,000 $ 175,000 $ 175,000
2002B GO Improv Revolving Bonds $ 59,000 $ 59,000 $ 59,000 $ 59,000 $ 59,000
HRA Revenue Bonds $ 678,000 $ 475,000 $ 890,000 $ 885,000 $ 885,000
Subtotal - Special Levies $ 1,038,000 $ 812,000 $ 1,217,000 $ 1,207,000 $ 1,207,000
TOTAL LEVIES $ 7,704,136 $ 8,120,078 $ 8,438,078 $ 9,017,526 $ 8,805,758
(1 ) (2)
Increase over prior year $ 535,884 $ 415,942 $ 318,000 $ 579,448 $ 367,680
Percentage Incr (Deer) - Total 7.48% 5.40% 3.92% I 6.870/011 4.360/01
Tax Capacity Rate 56.664% 48.944% 48.262% 47.472% 46.224% est
Percentage Incr/Decr in Tax Capacity Rate 1.007% -13.624% -1.393% -1.637% -4.223%
(1 ) (2)
Notes
* Included in Operating Levy on Tax Statements
(1) First portion of new facility bonds levied
(2) Second portion of new facility bonds and no LGA
CITY OF HOPKINS
ANALYSIS OF GENERAL FUND REVENUE BUDGET
2006 2007 % %
Department Budget Budget Incr/(Decr) of total
Property Taxes $ 7,211,078 $ 7,557,758 4.81% 81.53%
Intergovernmental Revenue
PERA Aid $ 20,510 $ 20,510 0.00%
Police - Federal Grant $ 1,000 $ 1,000 0.00%
Police - State Aid $ 149,900 $ 164,000 9.41%
Police - POST Reimbursement $ 5,000 $ 8,000 60.00%
Police - Misc Grants $ 4,000 $ 4,000 0.00%
Police - 911 Service Fee $ 12,000 $ 20,000 66.67%
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 $ 436,010 5.85% 4.70%
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%
Administrative Citations $ $ 3,000 #DIV/O!
Liquor, Animal Licenses & Penalties $ 90,900 $ 94,000 3.41%
Fire Licenses & Permits $ 4,500 $ 4,800 6.67%
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 $ 649,000 1.50% 7.00%
Charges for Servic;e
Finance Department $ 2,200 $ 2,200 0.00%
Municipal Building $ $ 2,400 #DIV/O!
Assessing $ 300 $ 750 150.00%
City Clerk $ 2,100 $ 2,500 19.05%
Inspections $ 92,000 $ 95,000 3.26%
Police $ 41 ,400 $ 39,400 -4.83%
Fire $ 2,600 $ 2,600 0.00%
Public Works $ 4,650 $ 4,650 0.00%
Activity Center $ - 55,000 $ 60,000 9.09%
Planning & Zoning $ 500 $ 300 -40.00%
Total Charges for Service $ 200,750 $ 209,800 4.51 % 2.26%
Miscellaneous Revenue
Franchise Fees $ 290,000 $ 290,000 0.00%
Elections $ $ #DIV/O!
Police $ 9,500 $ 2,750 -71.05%
Fire $ 2,000 $ 2,000 0.00%
Public Works $ 450 $ 500 11.11%
Acitivty Center $ 13,200 $ 12,000 -9.09%
Total Miscellaneous Revenue $ 315,150 $ 307,250 -2.51 % 3.31%
Interest Earnings $ 110,000 $ 109,949 -0.05% 1.19%
ITotal Revenues $ 8,888,288 $ 9,269,767 4.29% 1 100.00%1
CITY OF HOPKINS
ANAL YSIS OF GENERAL FUND EXPENDITURE BUDGET
2006 2007 Budget %
Department Budget Budget Incr/(Decr)
City Council
City Council $ 89,772 $ 89,582 -0.21%
Health & Wellness $ 1,050 $ 1,050 0.00%
Total City Council $ 90,822 $ 90,632 -0.21 %
Administrative Services
Administration $ 79,439 $ 81 ,900 3.10%
legislation $ 20,790 $ 21,920 5.44%
Agenda $ 33,171 $ 34,835 5.02%
Personnel $ 43,048 $ 53,949 25.32%
Capital Improvements $ 13,587 $ 14,152 4.16%
Wellness $ 8,882 $ 9,099 2.44%
Information Services $ 183,663 $ 197,270 7.41%
Total Administrative Services $ 382,580 $ 413,125 7.98%
Finance
Benefit Administration $ 12,846 $ 12,506 -2.65%
Budget $ 19,388 $ 20,543 5.96%
Cash Management $ 21,060 $ 21,564 2.39%
Debt Management $ 180 $ (17) -109.44%
General Accounting $ 59,909 $ 67,879 13.30%
Payroll $ 31,801 $ 34,886 9.70%
Risk Management $ 10,652 $ 11,096 4.17%
TIF Administration $ (61) $ (10) -83.61 %
Utility Billing $ (4,193) $ (1,221 ) -70.88%
Total Finance $ 151,582 $ 167,226 10.32%
Legal $ 126,600 $ 126,625 0.02%
Municipal Building $ 314,276 $ 304,960 -2.96%
Receptionist $ 39,769 $ 39,776 0.02%
Assessing $ 146,421 $ 138,619 -5.33%
City Clerk
City Clerk $ 38,141 $ 32,570 -14.61 %
Records Management $ 24,500 $ 37,513 53.11 %
Elections $ 35,623 $ 37,876 6.32%
Total City Clerk $ 98,264 $ 107,959 9.87%
Inspections
Building Code Inspections $ 302,089 $ 265,736 -12.03%
Fire Inspections $ 25,048 $ 37,241 48.68%
Heating & Plumbing Inspections $ 87,834 $ 83,408 -5.04%
Housing Inspections $ 46,560 $ 47,341 1.68%
Restaurant & Hotel Inspections $ 21,525 $ 21,360 -0.77%
Misc. Community Inspections $ 45,752 $ 45,852 0.22%
Total Inspections $ 528,808 $ 500,938 -5.27%
Police
Police Administration $ 436,124 $ 440,522 1.01%
Patrol $ 2,051,726 $ 1,999,418 -2.55%
Heat Team $ 51 ,794 $ 56,628 9.33%
2006 2007 Budget %
Department Budget Budget Incr/(Decr)
Reserves $ 37,068 $ 36,256 -2.19%
Investigations $ 335,584 $ 442,384 31.83%
Metro Drug Task Force $ 85,519 $ 90,974 6.38%
Pawn Shop $ 13,409 $ 6,268 -53.26%
Outreach $ 65,100 $ 70,177 7.80%
Dispatch $ 391,689 $ 439,892 12.31 %
Reception-Records $ 207,303 $ 212,745 2.63%
Systems Management $ 80,087 $ 88,084 9.99%
Total Police $ 3,755,403 $ 3,883,348 3.41%
Fire
Fire $ 656,637 $ 726,526 10.64%
Emergency Preparedness $ 5,290 $ 6,371 20.43%
Total Fire $ 661,927 $ 732,897 10.72%
Public Works
PW Building $ 33,473 $ 38,595 15.30%
Equipment Services $ 43,108 $ 49,284 14.33%
Administration $ 17,731 $ 19,939 12.45%
Engineering $ 129,582 $ 124,224 -4.13%
Street & Alleys $ 782,199 $ 796,249 1.80%
Snow & Ice Removal $ 131,978 $ 141,061 6.88%
Parks $ 542,819 $ 575,517 6.02%
Tree Service $ 208,580 $ 208,737 0.08%
Total Public Works $ 1,889,470 $ 1,953,606 3.39%
Recreation
Playground $ 31 ,000 $ 31,826 2.66%
Ice Rink $ 13,320 $ 13,650 2.48%
Park Service $ 11 ,165 $ 11,600 3.90%
Joint Recreation $ 152,500 $ 156,000 2.30%
Skate Park $ 7,650 $ 7,494 -2.04%
Total Recreation $ 215,635 $ 220,570 2.29%
Activity Center
Act Ctr - Community Use $ 240,881 $ 247,766 2.86%
Act Ctr - Maintenance $ 55,825 $ 57,856 3.64%
Total Activity Center $ 296,706 $ 305,622 3.00%
Planning & Zoning
Zoning Activities $ 59,110 $ 59,926 1.38%
Sign & Fence Permits $ 8,885 $ 9,193 3.47%
Miscellaneous Planning $ 27,390 $ 48,745 77.97%
Total Planning & Zoning $ 95,385 $ 117,864 23.57%
Tuition Reimbursement $ $ 11 ,000 0.00%
Total Expenditures $ 8,793,648 $ 9,114,767 3.65%
Other Financing Uses
Transfer to Para transit Fund $ 17,000 $ 15,000 -11.76%
Total Other Financing Uses $ 17,000 $ 15,000 -11.76%
Contingency $ 77,680 $ 140,000 80.23%
IGrand Total Expenditures $ 8,888,328 $ 9,269,767 4.29% I