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Memo - 2012 BudgetCITY OF HOPKINS FINANCE DEPARTMENT MEMORANDUM Date: July 21, 2011 To: Mayor & City Council From: Christine Harkess, Finance Director Subject: 2012 Budget At this work session we will be reviewing the first draft of the 2012 General Fund budget. This year departments had a shorter time frame in which to complete their budgets so there is still work to be done to refine some of the numbers; however this gives us a picture of how the budget is shaping up and where we need to focus our attention. We will review what came out of the state budget discussions and the bills that were passed last week. Currently we know that the MVHC program is eliminated and levy limits will not be in place for 2012. With regards to the MVHC program this is good new for the city as it will not create a revenue shortfall as it has for the past 4 years. So that those least able to afford a tax increase don't get an automatic increase due to the elimination of the program the state will be giving homeowners a tax exemption on a portion of their value equal to what the MVHC would have been. The preliminary levy is currently showing a 2.43% increase and this too will be refined as we continue to work towards a final 2012 budget. I still do not have all the factors for the tax rate calculation so we do not yet know how this will impact individual properties. Attached are the following: 1. Preliminary General Fund Budget 2. 2012 Preliminary Tax Levy and a history of the tax levy from 2004 - 2011 07/21/2011 CITY OF HOPKINS ANALYSIS OF GENERAL FUND EXPENDITURE BUDGET Inspections Increase Building Code Inspections 252,170 255,030 2,860 195,311 (Decrease) Fire Inspections 38,205 Materials (3,457) 34,497 2011 2012 from % 2,043 Supplies Capital Intergovt'I Department Budget Budget 2011 Budget Incr/(Decr) Salaries & Services Outlay Chargeback's ICity Council 71,547 68,697 2,850 -3.98% 26,497 42,200 2,974 Administrative Services 3,566 Vacant Property Management 2,700 2,700 - - 2,700 Administration 167,300 171,047 3,747 1.07% 214,622 22,425 (66,000) Personnel 43,924 44,563 639 57,148 3,415 (16,000) Wellness 2,000 2,000 - 2,000 Information Services 238,446 252,316 13,870 244,881 29,435 (22,000) Total Administrative Services 451,670 469,926 18,256 4.04% Finance Budget 23,066 26,368 3,302 37,324 3,044 (14,000) Debt Management - - - 12,448 1,670 (14,118) General Accounting 129,448 135,966 6,518 145,713 40,253 (50,000) Payroll 46,729 45,541 (1,188) 60,441 5,100 (20,000) TIF Administration - - - 12,448 2,495 (14,943) Utility Billing 4,000 5,000 1,000 93,630 25,478 (114,108) Total Finance 203,243 212,875 9,632 4.74% [Legal 135,000 135,000 - 0.00% 135,000 Munici al Building 294,818 297,637 2,819 0.96% 136,412 201,225 (40,000) Receptionist 44,172 45,168 996 2.25% 44,389 779 jAssessing 167,236 173,766 6,530 3.90% 85,988 111,778 (24,000) City Clerk City Clerk 19,360 20,011 651 38,808 6,203 (25,000) Records Management 29,833 35,945 6,112 30,709 17,236 (12,000) Elections 50,222 62,547 12,325 33,051 29,496 Total City Clerk 99,415 118,503 19,088 19.20% Inspections Building Code Inspections 252,170 255,030 2,860 195,311 59,719 Fire Inspections 38,205 34,748 (3,457) 34,497 251 Heating & Plumbing Inspections 90,400 92,443 2,043 88,669 3,774 Housing Inspections 134,680 137,161 2,481 129,720 7,441 Restaurant & Hotel Inspections 23,309 23,005 (304) 2,921 20,084 Misc. Community Inspections 75,143 78,117 2,974 74,551 3,566 Vacant Property Management 2,700 2,700 - - 2,700 Total Inspections 616,607 623,204 6,597 1.07% 12,709 Police Police Administration 480,615 503,556 22,941 403,120 100,436 Patrol 2,360,705 2,499,513 138,808 2,240,954 258,559 Heat Team 73,298 76,866 3,568 56,609 20,257 Reserves 33,620 34,769 1,149 26,352 8,417 Investigations 499,148 516,731 17,583 440,803 75,928 Metro Drug Task Force 105,737 105,686 (51) 104,496 1,190 Pawn Shop 3,436 3,523 87 3,385 138 Outreach 80,804 84,148 3,344 71,439 12,709 Fire 125,182 127,871 (Decrease) Materials Tuition Reimbursement 2011 2012 from % Supplies Capital Intergovt'I Department Budget Budget 2011 Budget Incrl(Decr) Salaries & Services Outlay Chargeback's Communications (Dispatch) 526,782 541,501 14,719 475,608 65,893 Support Services (Records) 255,560 254,816 (744) 246,588 8,228 Systems Mana ement 64,682 65,182 500 65,182 Total Police 4,484,387 4,686,291 201,904 4.50% 4,852 Fire 125,182 127,871 2,689 2.15% 131,082 16,789 (20,000) Tuition Reimbursement Playground Fire Department 833,587 849,886 16,299 503,936 345,950 12,284 Emergency Preparedness 4,671 4,880 209 - 4,880 12,810 Total Fire 838,258 854,766 16,508 1.97% 152,000 5,000 Public Works 152,000 Skate Park 7,721 7,078 643 4,852 PW Building 33,692 32,938 (754) 36,071 66,867 (70,000) Equipment Services 78,446 86,016 7,570 211,794 17,222 (143,000) Administration 26,478 27,924 1,446 162,347 13,577 (148,000) Engineering 137,802 133,242 (4,560) 168,918 29,324 (65,000) Street & Alleys 853,812 861,632 7,820 360,526 613,106 (112,000) Snow & Ice Removal 205,615 197,550 (8,065) 119,918 77,632 Parks 628,101 652,210 24,109 434,738 217,472 Tree Service 210,454 209,904 550 125,680 84,224 Total Public Works 2,174,400 2 201 416 27,016 1.24% Recreation 125,182 127,871 2,689 2.15% 131,082 16,789 (20,000) Tuition Reimbursement Playground 20,198 21,034 836 21,034 50,000 Ice Rink 12,284 12,192 (92) 12,192 10,603,784 Park Service 12,518 12,810 292 12,810 - Joint Recreation 147,000 152,000 5,000 152,000 Skate Park 7,721 7,078 643 4,852 2,226 Total Recreation 199,721 205,114 5,393 2.70% Activity Center 50,000 Act Ctr - Community Use 274,008 264,396 (9,612) 209,725 54,671 Act Ctr - Maintenance 59,463 58,954 509 18,047 40,907 Total Activity Center 333,471 323,350 10,121 -3.04% Planning & Zoning 125,182 127,871 2,689 2.15% 131,082 16,789 (20,000) Tuition Reimbursement 10,200 10,200 - 0.00% lContingency 50,000 50,000 - 0.00% Total Expenditures 10,299,327 10,603,784 304,457 2.967 8,403,202 3,130,551 (990,169) 79.25% Other Financing Uses Transfers Out - - - 10,543,584 Total Other Financing Uses - 0.00% 10,200 50,000 10,603,784 2.24 07/21/2011 CITY OF HOPKINS ANALYSIS OF GENERAL FUND REVENUE BUDGET Finance Police Increase 5,200 5,750 550 449 Miscellaneous 4,800 (Decrease) Licenses Charges 10,000 2011 2012 from % Property Intergovt'I Permits Investment for Current Other Franchise Department Budget Budget 2011 Budget Incr/(Decr) Taxes Revenue & Fines Earning Services Revenues Fees Unallocated POST Reimbursement 10,000 9,000 (1,000) Property Taxes - levy 8,797,414 24,860 (8,797,414) - Property Taxes - delinq 45,000 45,000 - 45,000 Penalties 6,000 8,000 2,000 8,000 Miscellaneous 15,000 15,000 - 15,000 Fiscal Disparities (incl w/taxes) - - - - PERAAid 20,510 20,510 - 20,510 MVHC - unaliotment (232,850) - 232,850 - Interest Earnings 75,000 25,000 (50,000) 25,000 Franchise Fees 290,000 290,000 - 290,000 Miscellaneous 500 - (500) (43,760) -11.55% Total Unallocated 9,016,574 403,510 (8,613,064) -95.52% Finance Police 400 Current Services 5,200 5,750 550 449 Miscellaneous 4,800 4,800 - Total Finance 10,000 10,550 550 5.50% Total inspections 326,550 326,050 (500) -0.15% 3601 Legal - Court Fines 115,000 115,000 - 0.00% Municipal Building 380 Rent 2,500 2,500 449 Other Miscellaneous _ - Total Municipal Building 2,500 2,500 - 0.00% 400 Assessing - Charges for Service 1,000 1,200 200 20.00% City Clerk 312 Licenses 7,500 5,000 (2,500) 364 Administrative Citations 3,500 8,000 4,500 400 Charges for Service 11,100 - (11,100) Total City Clerk 22,100 13,000 (9,100) -41.18% Inspections Police 318 Licenses and permits 255,100 254,100 (1,000) Plan Check Fees 32,000 32,000 - Char es for Service 39,450 39,950 500 Total inspections 326,550 326,050 (500) -0.15% 115,000 5,000 8,000 254,100 177,000 10,000 9,000 96,200 2,500 5,750 4,800 2,500 1,200 32,000 39,950 40,000 500 Police 330 Federal Grant - - - 344 State Aid 177,700 177,000 (700) 345 State Grants 4,000 10,000 6,000 345 POST Reimbursement 10,000 9,000 (1,000) 911 Service Fee - IGR 24,860 - (24,860) County Grants - - - 313 Licenses 95,900 96,200 300 360 Court Fines 20,000 - (20,000) Forfeitures - - Penalties 2,500 2,500 400 Charges for Services 43,500 40,000 (3,500) 449 Other Miscellaneous - - 440 Contributions 500 500 Total Police 378,960 335,200 (43,760) -11.55% 115,000 5,000 8,000 254,100 177,000 10,000 9,000 96,200 2,500 5,750 4,800 2,500 1,200 32,000 39,950 40,000 500 2012 Revenue Shortfall - LEVY NEEDED 2011 Levy - inlcudes special levies for GF 8,797,414 Licenses Charges Property Intergovt'I Permits Investment for Current Other Franchise Taxes Revenue & Fines Earninq Services Revenues Fees 3,500 70,000 10,215 125,000 1,000 70,000 2,750 4,000 26,000 15,000 8,500 10,700 2,000 800 1,500 92,000 68,000 411,510 495,515 25,000 245,150 114,800 290,000 Total Misc 404,800 1.649.975 ED 8,918,309 No levy limits for 2012 35,500 Special Levy - PERA 8,953,809 Total Estimated TAX LEVY 1,649,975 Non tax revenues 10,603,784 Total Revenues shortfall - Increase (Decrease) 2011 2012 from % Department Budget Budget 2011 Budget Incr/(Decr) Fire 318 Licenses 3,500 3,500 - 320 Permits 1,800 - (1,800) Federal Grant - - 344 State Aid 85,000 70,000 (15,000) County Grants - - Administrative Citations - - - 400 Current Service 6,200 70,000 63,800 Donations - Miscellaneous - - Total Fire 96,500 143,500 47,000 48.70% Public Works 329 Licenses 8 Permits 9,490 10,215 725 344 State Aid 120,000 125,000 5,000 384 Equipment Use Charge - - - 400 Charges for Service 2,250 2,750 500 449 Miscellaneous Revenue 2,100 4,000 1,900 450 Sale of Fixed Assets - - - Total Public Works 133,840 141,965 8,125 6.07% Activity Center 380 Rent 26,000 26,000 - 400 Charges for Services 15,000 15,000 - 404 Memberships 8,500 8,500 - 440 Contributions 10,700 10,700 - 445 Fundraising 2,000 2,000 - 449 Other Miscellaneous 800 800 - Total Activity Center 63,000 63,000 - 0.00 Planning & Zoning 320 Permits 1,000 1,000 387 Variances 1,500 1,500 400 Charges for Service - Total Planning & Zoning 2,500 2,500 0.00% Excess Funds from Section 8 92,000 Use of 2009 Budget Reserves 130,803 - Total Revenues 10,299,327 1,649,975 (8,610,549) -83.60% Total Expenditures 10,299,327 10,603,784 304,457 2.96% 2012 Revenue Shortfall - LEVY NEEDED 2011 Levy - inlcudes special levies for GF 8,797,414 Licenses Charges Property Intergovt'I Permits Investment for Current Other Franchise Taxes Revenue & Fines Earninq Services Revenues Fees 3,500 70,000 10,215 125,000 1,000 70,000 2,750 4,000 26,000 15,000 8,500 10,700 2,000 800 1,500 92,000 68,000 411,510 495,515 25,000 245,150 114,800 290,000 Total Misc 404,800 1.649.975 ED 8,918,309 No levy limits for 2012 35,500 Special Levy - PERA 8,953,809 Total Estimated TAX LEVY 1,649,975 Non tax revenues 10,603,784 Total Revenues shortfall - CITY OF HOPKINS ANALYSIS OF TAX LEVY 07/'21/2011 Incr from Purpose 2004 2005 2006 2007 2008 2009 2010 2011 2012 Est 2011 Subject to Levy Limits General Fund $ 6,654,321 $ 7,261,263 $ 7,164,263 $ 7,516,943 $ 7,825,565 $8,160,614 $8,384,010 $ 8,539,064 5 8,918,309 (a) Capital Levy 25,000 25,000 50,000 75,000 100,000 100,000 125,000 Total Levy subject to Limits $ 6,654,321 $ 7,286,263 $ 7,189,263 $ 7,566,943 $ 7,900,565 $ 8,260,614 $ 8,384,010 $ 8,639,064 $ 9,043,309 4.68% 2012 no levy limits 2011 levy limit was 3.04% Special Levies: PERA Levy 11,815 11,815 11,815 11,815 11,815 35,500 35,500 35,500 35,500 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 Subtotal - Special Levies Other 11,815 21,815 31,815 31,815 11,815 35,500 274,675 258,350 35,500 (b) Debt Levies: 1999D GO Perm Impr Revolving Bonds 26,000 26,000 26,000 26,000 26,000 26,000 - - - 2001 GO Refunding Bonds - Park & Rec 210,000 190,000 180,000 175,000 150,000 130,000 108,000 - - 2002B GO Improv Revolving Bonds 59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000 - 2003 HRA Revenue Bonds - 234,450 240,000 235,000 230,000 225,000 200,000 200,000 220,000 2023 20078 GO Improv Revolving Bonds - - - - 175,000 175,000 185,000 172,000 184,500 2017 2007A Capital Improvement Bonds - - 642,000 642,000 715,000 710,000 765,900 2022 910,900 levy requirement 2010A GO Improvement Bonds - - - 100,000 77,000 2025 145,000 less - Enterprise Fund Leases 20108 Refunding (2002B Improv Bds) - - - - 59,000 2013 765,900 - Reduction due to adequate cash projections Subtotal - Debt Levies 1,038,000 812,000 1,217,000 1,207,000 1,282,000 1,257,000 1,267,000 1,241,000 1,306,400 5.27% 765,900 Total - Special Levies $ 1,049,815 $ 833,815 $ 1,248,815 $ 1,238,815 $ 1,293,815 $ 1,292,503 $1,541,675 $ 1,499,350 $ 1,341,900 -10.50 TOTAL LEVIES $ 7,704,136 $ 8,120,078 $ 8,438,078 $ 8,805,758 $ 9,194,380 $ 9,553,114 $ 9,925,685 $ 10,138,414 $10,385,209 2.43 Increase over prior year $ 535,884 $ 415,942 $ 318,000 $ 367,680 $ 388,622 $ 358,734 $ 372,571 $ 212,729 $ 246,795 Percentage Incr (Decr) - Total 7.48% 5.40% 3.92% 4.36% 4.41% 3.90% 3.90% 2.14% 2.43 Tax Capacity Rate (per HC rate cards) 56.664 48.944 48.262 45.8762 45.401 47.315 48.999 55.739