CR 94-156 Approve Proposed 1994 Levy, 1995 General Fund Budget, and Set Hearings .�
September 6, 1994 Council Report 94-156
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APPROVE PROPOSED 1994 LEVY, PROPOSED 1995 GENERAL FUND BUDGET
AND SET BUDGET HEARINGS
Proposed Action
Staff recommends adoption of the following motion: Move that Resolution 94-'78 "Approvin�
Proposed 1994 Tax Lew Collectible in 1995, Adopting the Preliminary 1995 General Fund
Budget and Setting Public Hearing Dates", be adopted.
Adoption of this resolution will enable compliance with the Truth in Taxation law enacted by the
Minnesota Legislature.
Overview
The Truth in Taxation process requires specific action by the City Council. The City Council
must adopt a proposed levy and set hearing dates in conformance with the statute. Additionally, a
preliminary general fund budget must be established. Adoption of the actual budget will occur in
December and at that time, the final levy and budget may not exceed those adopted at this
• preliminary stage.
Following the guidelines of freezing the 1994 tax levy at the 1993 level, a proposed levy of
$4,953,600 and a general fund budget of $6,353,000 has been developed. Staffis recommending
that the Council adopt the proposed levy amount at this time. During the budget process the
Council may wish to consider alternatives.
Primary Issues to Consider
o How does the 1994 budget compare to the 1995 budget?
o How does the proposed budget impact property taxes?
Supporting Information
o Staff analysis of issues.
o General Fund Departmental Budget Summary.
o General Fund Revenue Summary.
o Hopkins property tax impacts.
o Resolution #94-78.
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• o E. Schedler, Finance Director
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Council Report 94-156
STAFF ANALY5IS OF ISSUES
Primarv Issues to Consider
o How does the 1994 budget cornpare to 1995?
The staff is recommending that the Council adopt the presented preliminary budget. This budget
maintains services with normal expenditure increases adjusted below inflation. Salary ranges
would increase by 2%. Services/charges and supplies and capital expenditures would remain at
the 1994 budget level. There is no change proposed in contingency or the landfill budgets.
o What are the impacts on the levy resulting from the proposed budget?
The levy is spread against the taxable tax capacity of the City which is proposed to increase after
several years of reduction. Actual market value of the community and taxable tax capacity of the
community have both increased and are primarily due to a physical increase in the market values
of all types of property except commercial. A chart is attached to this report which graphically
demonstrates the dollar impacts on the City's portion of a homesteaded property.
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8/19/94
General Fund Budget Expenditures
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1994 Adopted 1995 Preliminarv
Generai Government $1,105,200 $1,101,900
Public Safety 2,447,000 2,511,000
Community Development 614,000 610,800
Public Works 1,649,700 1,608,000
Recreation 146,300 146,300
Insurance 16,300 20,000
Unallocated 275,000 275,000
Special Projects 35,000 70,000
Other (Hop-A-Ride) 21.300 10,000
$6, 309, 800 $6, 353, 000
� Notes:
Budget Increases of $43,200 (.7%)
Accomplished by:
1. 2% increase in Base Wages
2. 0% increase in Supplies and Services
3. 0% increase in Capital Outlay
4. Reductions in various personnel budgets ($18,100)
5. Reflection of 1994 decision to move Brush Pick-up to Refuse Fund ($29,000)
6. Increase special projects $35,000. Requested items to be reviewed during
budget process
7. Reduction in Hop-A-Ride Transfer due to drop in usage ($11,300)
8. No change in Landfill Budget ($175,000)
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9. No new programs or services added
10. No new personnel
8/19/94
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General Fund Revenue -1994 vs. 1995
I ncreases/( Decreases)
1994 1995 � %
Tax Levy $ 4.222.700 $ 4,143.500 (79.200) _ (1_8)
Revenue
Taxes Revenue $ 3,417,700 $ 3,322,200 $ (95,600) (2.8)
(after credits)
HACA 805, 000 821, 300 16, 300 2. 0
LGA 794, 300 793, 200 (1,100) (0.1)
,. Interest 380,000 412,300 32,300 8.5
Admin. Fee 333,000 345,300 12,300 3.7
Other Revenue (No Increase) 667,800 658,700 (9,100) �
$ 6, 397, 800 $ 6, 353, 000 $(44, 900) (0.7%)
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8/19/94
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1993 vs. 1994 Tax Levy
Difference
1993 Levy 1994 Levy
Pavable 1994 Pavabie 1995 � %
General Fund $ 4,222,700 $ 4,143,500 $ (79,200) (1.8%)
Equipment Replacement Fund 400,000 40Q,000 - -
Park Bonds 215,100 298,400 83,300 38.7
Improvement Bonds 115,800 111,700 (4,100� 3.5
$ 4, 953, 600 $ 4, 953, 600 $ -0- -
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Estimated Property Tax Impacts For Hopkins
� Taxes Payable 1994 Vs. Taxes Payable 1995
Decrease In Increase In
Taxes Taxes
Estimated Taxes 1995 1995
Market Payable (No Increase In (5% Market
Value 1994 Market Value) Value Increasel
Residential Homestead
$ 72,000 $ 198.29 - $ 2.40 + $ 17.19
84,000 264.39 - 3.20 + 19.65
105, 000 380.06 - 4.60 + 24.24
150, 000 627.92 - 7.60 + 33.21
225, 000 1, 041. 03 - 12.61 + 45.42
300,000 1,454.13 - 17.60 + 64.02
� Commercial/Industrial
$ 196,000 $ 2,480.03 - $ 28.66
1,125, 000 14, 234. 86 - 164. 47
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CITY OF HOPKINS �
� Hennepin County, Minnesota
RESOLUTION NO. 94-78
A RESOLUTION APPROVING PROPOSED 1994 TAX LEVY
COLLECTIBLE IN 1995, ADOPTING THE PRELIlVIINARY 1995 BUDGET,
AND SETTING PUBLIC HEARING DATES
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 1995 upon the taxable property in said City of
Hopkins, for the following purposes.
General Fund $4,143,500
Equipment Replacement Fund 400,000
General Obligation Bonds 298,400
Improvement Bonds 111,700
This levy is made based on current law and the 1995 General Fund Budget of $6,353,000.
Provision has been made for the payment of the City's contributory share to the Public Employees
Retirement Association.
� Provision has also been made for the payment of principal and interest on the following bond issues:
Redevelopment Bonds 5-1-88 & Refunded 10-15-93 Improvement Revolving Bonds 3-1-90*
G.O. Sewer Revenue Bonds 12-1-89 & Refunded 10-15-93 Redevelopment Bonds 5-22-91
Redevelopment Bonds 12-1-89 & Refunded 10-15-93 Refunding Bonds (Taxable) 2-1-92
ParkBonds 3-1-90* & Refunded 10-15-93* Improvement Revolving Bonds 8-1-92*
Refunding Bonds 3-1-90 & Refunded 10-15-93
*Levy
Public hearing date for the 1995 budget is November 29, 1994, with a continuation date of December 7,
1994.
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 a regular meeting of the Council held this 6th day of
September, 1994.
By
� Charles D. Redepenning, Mayor
ATTEST:
James A. Genellie, City Clerk