Memo - 2012 BudgetCITY OF HOPKINS
MEMORANDUM
Date: July 8, 2011
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: 2012 Budget
FINANCE DEPARTMENT
At the Tuesday work session we will be reviewing very preliminary 2012 budget issues.
We will be discussing what the 2012 budget environment is looking like, what a potential tax
levy may be and looking for direction on several aspects of the budget as we work towards a
2012 budget.
Items for discussion include:
1. Hopkins tax values
2. Potential tax levy
3. State Issues impacting local budget decisions
a. Levy limits
b. MVHC program
4. Franchise Fee — electric & gas
Attached are the following:
1. History of tax values
2. Preliminary General Fund Budget Projection
3. Preliminary Tax' Levy
Staff is in the process of completing departmental budgets and those will be reviewed at the next
work session as we continue working towards a 2012 budget. Hopefully at that time the state
shutdown has ended and some of the unknowns have been resolved, in particular levy limits and
the MVHC program.
TAX CAPACITY VALUES
Fiscal Disp
TAXABLE
TAX
Fiscal
NET
Fiscal
ADJUSTED
Contribution
MARKET
CAPACITY
Disparities
TAX
TAX
Disparities
NET TAX
vs
VALUE
VALUE
Contribution
INCREMENTS
CAPACITY
Distribution
CAPACITY
Distribution Comments
YEAR 2000
REAL ESTATE
787,397,500
15,507,256
PERSONAL PROPERTY
7,784,500
264,343
TOTAL
795,182,000
15,771,599
1,605,278
1,670,794
12,495,527
650,318
13,145,845
(954,960)
YEAR 2001
REAL ESTATE
877,535,800
17,566,724
PERSONAL PROPERTY
7,814,500
261,290
TOTAL
885,350,300
17,828,014
1,736,728
2,232,139
13,859,147
698,128
14,557,275
(1,038,600)
11.339%
13.039%
10.913%
10.737%
YEAR 2002
REAL ESTATE
963,398,400
13,406,775
PERSONAL PROPERTY
7,803,800
155,449
TOTAL
971,202,200
13,562,224
1,324,809
1,578,808
10,658,607
740,729
11,399,336
(584,080)
9.697%
-23.927%
-23.093%
-21.693%
YEAR 2003
REAL ESTATE
1,058,588,100
14,046,821
PERSONAL PROPERTY
7,981,200
158,981
TOTAL
1,066,569,300
14,205,802
1,405,135
1,659,946
11,140,721
819,387
11,960,108
(585,748)
9.819%
4.745%
4.523%
4.919%
YEAR 2004
REAL ESTATE
1,167,249,700
14,851,783
PERSONAL PROPERTY
8,140,824
166,139
TOTAL
1,175,390,524
15,017,922
1,413,777
1,702,442
11,901,703
936,264
12,837,967
(477,513)
10.203%
5.717%
6.831%
7.340%
YEAR 2005
REAL ESTATE
1,331,454,000
16,811,416
PERSONAL PROPERTY
8,730,300
173,916
TOTAL
11340,184,300
16,985,332
1,526,509
804,314
14,654,509
1,673,106
16,327,615
146,597 LGA eliminated- tax capacity changes
14.020%
13.100%
23.130%
27.182%
YEAR 2006
REAL ESTATE
1,451,822,200
18,240,461
PERSONAL PROPERTY
8,861,800
176,371
TOTAL
1,460,684,000
18,416,832
1,952,996
841,639
15,622,197
1,836,753
17,458,950
(116,243)
8.991%
8.428%
6.603%
6.929%
YEAR 2007
REAL ESTATE
1,580,148,400
19,983,078
PERSONAL PROPERTY
9,111,200
181,254
TOTAL
1,589,259,600
20,164,332
2,116,466
947,332
17,100,534
11997,455
19,097,989
(119,011)
8.802%
9.489%
9.463%
9.388%
YEAR 2008
REAL ESTATE
1,662,983,900
21,199,028
PERSONAL PROPERTY
8,646,9001
170,843
TOTAL
1,671,630,8001
1 21,369,8711
2,450,063
1,096,223
17,823,585
2,405,483
20,229,068
(44,580)
5.183%1
1 5.979%1
1
4.228%
5.923%
1 of2
2 of 2
Fiscal Disp
TAXABLE
TAX
Fiscal
NET
Fiscal
ADJUSTED
Contribution
MARKET
CAPACITY
Disparities
TAX
TAX
Disparities
NET TAX
vs
VALUE
VALUE
Contribution
INCREMENTS
CAPACITY
Distribution
CAPACITY
Distribution Comments
YEAR 2009
REAL ESTATE
1,672,423,700
21,524,040
PERSONAL PROPERTY
8,435,600
166,852
TOTAL
1,680,859,300
21,690,892
2,766,202
1,454,721
17,469,969
2,840,070
20,310,039
73,868
0.552%
1.502%
-1.984%
0.400%
YEAR 2010
REALESTATE
1,687,508,900
22,135,067
PERSONAL PROPERTY
8,407,300
165,794
TOTAL
1,695,916,200
22,300,861
2,858,921
1,995,955
17,445,985
2,913,208
20,359,193
54,287
0.896%
2.812%
-0.137%
0.242%
YEAR 2011
REAL ESTATE
1,567,152,300
20,628,166
PERSONAL PROPERTY
9,332,900
183,588
TOTAL
1,576,485,200
20,811,754
3,324,078
1,622,170
15,865,506
2,645,025
18,510,531
(679,053) Decertified TIF 2-1
-7.042%
-6.677%
-9.059%
-9.080%
YEAR 2012 - preliminary
REAL ESTATE
1,525,984,600
20,175,395
PERSONAL PROPERTY
9,332,900
183,588
TOTAL
1,535,317,500
20,358,983
3,324,078
1,622,170
15,412,735
2,645,025
18,057,760
(679,053)
-2.611%
-2.176%
-2.854%
-2.446%
Year 2012 - numbers in italics are estimates
2 of 2
GENERAL FUND BUDGET - A PROJECTION
Expenditures
Salaries & Benefits
Supplies, Services, Materials
Tuition Reimbursement
Contingency
TOTAL
Revenues
Intergovernmental Revenue
License, Permits, Fines
Charges for Service
Miscellaneous
Interest
Other
Franchise Fees
Use of 2009 Budget Savings
Tax Revenue
Property Taxes (levy)
Delinquent, Misc, other
MVHC
TOTAL
2011 2012
8,163,799
8,327,075
2,075,328
2,137,588
10,200
10,200
50,000
50,000
10,299,327 10, 524, 863
442,070
442,070
544,790
544,790
161,200
161,200
75,000
15,000
24,900
24,900
290,000
290,000
130,803
-
1,668,763
1,477,960
8,797,414 8,980,903
66,000 66,000
(232,850)
10,299,327 10,524,863
2.19%
2.09%
4 unknown
CITY OF HOPKINS
ANALYSIS OF TAX LEVY
2011 levy limit was 3.04% incr
Special Levies:
PERA Levy
35,500
35,500
35,500
Incr
MVHC Levy - for unallotment of 2008 & 2009
-
from
Purpose
2009 2010
2011
2012 Est
2011
Subject to Levy Limits
-
222,850
-
levied back 95.7%
General Fund
$ 8,160,614 $ 8,384,010
$ 8,539,064
$ 8,773,236
(a)
Capital Levy
100,000 -
100,000
125,000
35,500
Total Levy subject to Limits
$ 8,260,614 $ 8,384,010
$ 8,639,064
$ 8,898,236
3.00%
2011 levy limit was 3.04% incr
Special Levies:
PERA Levy
35,500
35,500
35,500
161,000
MVHC Levy - for unallotment of 2008 & 2009
-
239,175
-
-
levied back 60%
398,492 2008 & 2009 unallotment
MVHC Levy -for unallotment of 2010
-
-
222,850
-
levied back 95.7%
232,850 2010 unallotment
MVHC Levy -for unallotment of 2011
Subtotal -Special Levies Other
35,500
274,675
258,350
161,000
(b)
Debt Levies:
1999D GO Perm Impr Revolving Bonds
26,000
-
-
-
2001 GO Refunding Bonds - Park & Rec
130,000
108,000
-
-
2002B GO Improv Revolving Bonds
59,000
59,000
59,000
-
2003 HRA Revenue Bonds
225,000
200,000
200,000
220,000
2023
2007B GO Improv Revolving Bonds
175,000
185,000
172,000
184,500
2017
2007A Capital Improvement Bonds
642,000
715,000
710,000
765,900X5.27%
910,900
levy requirement
2010A GO Improvement Bonds
-
-
100,000
77,000
(145,000
less - Enterprise Fund Leases
2010B Refunding (2002B Improv Bds)
-
-
-
59,000
765,900
Subtotal - Debt Levies
1,257,000
1,267,000
1,241,000
1,306,400
765,900
Reduction due to adequate cash projections
Total - Special Levies
$1,292,500
$ 1,541,675
$ 1,499,350
$ 1,467,400
-2.13%
TOTAL LEVIES
$ 9,553,114
$ 9,925,685
$ 10,138,414
$ 10,365,636
2.24%
Increase over prior year
$ 358,734
$ 372,571
$ 212,729
$ 227,222
Percentage Incr (Decr) - Total 3.90% 3.90% 2.14% 2.24%