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CR 2012-140 (2013 Budget Hearing and 2013 Tax Levy and General and Special Revenue Fund BudgetsDecember 4, 2012 -4m City of Hopkins Council Report 2012-140 2013 BUDGET HEARING AND 2013 TAX LEVY AND GENERAL AND SPECIAL REVENUE FUND BUDGETS Proposed Action Following the 2013 budget hearing and there being no further changes to the 2013 budget, staff recommends adoption of the following motion: Move to Adopt Resolution 2012-092 approving the 2013 tax levy and adopting the 2013 General and Special Revenue Fund budgets. Adoption of this motion will result in staff forwarding the appropriate documentation to Hennepin County for inclusion on property taxes for 2013 and will approve the 2013 General and Special Revenue Fund budgets. Overview The City Council and staff have held a number of meetings and work sessions during 2012 to prepare for the 2013 general fund budget and 2013 tax levy. This evening we are taking input from the public on the 2013 -budget: During 2012 the council adopted 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 2013 budgets. The budget in its current form recommends spending in the general fund at $10,580,329 and a total tax levy of $10,301,174. The levy includes provisions for general fund operations, PERA contributions, and debt obligations. In addition, a HRA levy of $225,000 was a separate action item by the HRA Board. Staff is recommending that the council adopt the resolution approving the tax levy for 2013 and setting the 2013 general and special revenue fund budgets. Primary Issues to Consider • The state mandates certification of the 2013 levy to the County Auditor no later than December 28, 2012. Supporting Information • Resolution 2012-092 • Comparative Tax Levy for years 2012-2013 • 2013 General Fund and Special Revenue Fund Budgets • Power point presentation slides Christine M Harkess, CPA, CGFM Finance Director Financial Impact: $ 10,580,329 GF Budgeted: Y/N Y Source: Taxes & other revenues Related Documents (CIP, ERP, etc): 2013 Budget Notes: CITY OF HOPKINS 2013 TAX LEVY Pu General Operations General Fund Capital Levy Special Levies: PERA Levy Subtotal Special Levies - Other Debt Levies: 2003 HRA Revenue Bonds 2007B GO Improv Revolving Bonds 2007 Capital Improvement Bonds 2010A GO Improvement Bonds 2010B Refunding Bonds 2012B GO Bonds Gas & Elec Franchise Fees - levy offset 2012B Equipment Certificates Fees used to offset levy Subtotal - Debt Levies Subtotal Special Levies TOTAL LEVIES Increase over prior year Percentage Incr (Decr) - Total $ 212,729 $ 101,729 $ 50,183 1.11% 0.99% 0.49% 2013 2013 Net Levy Net Levy 2012 Proposed Revised $ 8,784,091 $ 8,885,820 $ 8,834,274 125,000 $ 125,000 $ 125,000 $ 8,959,274 $ 8,909,091 $ 9,010,820 35,500 35,500 35,500 $ 35,500 $ 35,500 $ 35,500 220,000 220,000 220,000 184,500 186,520 186,520 765,900 763,800 763,800 77,000 77,000 77,000 59,000 - - - 166,737 166,737 - (107,657) (107,657` - 64,370 64,370 - (64,370) $ 1,306,400 $ 1,306,400 $ 1,306,400 $ 1,341,900 $ 1,341,900 $ 1,341,900 $ 10,250,991 $ 10,352,720 $ 10,301,174 $ 212,729 $ 101,729 $ 50,183 1.11% 0.99% 0.49% CITY OF HOPKINS PROPOSED GENERAL FUND REVENUE BUDGET 2012 2013 % Department Budget Budget Incr/(Decr) Property Taxes & PERA Special Levy 8,887,591 1 0.73% Intergovernmental Revenue PERA Aid 20,510 20,510 0.00% Police - Federal Grant 0 82,000 9.20% Police - State Aid 177,000 177,000 0.00% Police - POST Reimbursement 9,000 9,000 0.00% Police - Misc Grants 86,000 10,000 -88.37% Police - 911 Service Fee 24,860 0 -100.00% Fire - State Aid 70,000 70,000 0.00% PW - State Aid 125,000 130,000 4.00% Total Intergovernmental Revenue 512,370 498,510 -2.71% Licenses, Permits & Fees Court Fines 115,000 135,000 17.39% Building Permit & Inspection Fees 246,500 269,180 9.20% Business Licenses 5,000 5,000 0.00% Administrative Citations 8,000 8,000 0.00% Liquor , Animal Licenses & Penalties 98,700 97,000 -1.72% Fire Licenses & Permits 3,500 3,500 0.00% PW - Licenses & Permits 9,415 9,415 0.00% P&Z - License & Permits 1,000 1,000 0.00% Total Licenses, Permits & Fines 487,115 528,095 8.41% Charges for Service Finance Department 5,750 5,750 0.00% Municipal Building 2,500 0 -100.00% Assessing 1,200 1,500 25.00% City Clerk 0 5,000 10.00% Inspections 71,950 71,850 -0.14% Police 40,000 42,000 5.00% Fire 70,000 3,000 -95.71% Public Works 2,750 2,750 0.00% Activity Center 49,500 49,500 0.00% Planning & Zoning 1,500 1,500 0.00% Total Charges for Service 245,150 182,850 -25.41% Miscellaneous Revenue Franchise Fees 290,000 290,000 0.00% Finance Department 4,800 4,800 0.00% Police 1,000 1,500 50.00% Public Works 4,000 4,400 10.00% Acitivty Center 13,500 13,500 0.00% Community Development 85,999 88,900 3.37% Total Miscellaneous Revenue 399,299 403,100 0.95% Interest Earnings 25,000 15,000 -40.00% Total Revenues $10,556,525 $10,580,329 0.23% CITY OF HOPKINS PROPOSED GENERAL FUND EXPENDITURE BUDGET 2012 2013 Budget % Department Budget Budget Incr/(Decr) Cit Council 68,697 1 0.39% Administrative Services Administration 171,090 179,060 4.66% Personnel 44,405 46,768 5.32% Wellness 2,000 2,000 0.00% Information Services 251,637 254,988 1.33% Total Administrative Services 469,132 482,816 2.92% Finance 16,822 18,694 11.13% Budget 26,249 26,388 0.53% Debt Management 0 0 0.00% General Accounting 133,402 137,199 2.85% Payroll 45,075 45,609 1.18% TIF Administration 0 0 0.00% Utility Billing 5,000 5,000 0.00% Total Finance 209,726 214,196 2.13% Legal 135,000 142,000 5.19% Municipal Building 296,863 313,998 5.77% Receptionist 44,846 47,048 4.91% lAssessing 173,091 1 177,187 2.37% City Clerk City Clerk 16,822 18,694 11.13% Records Management 32,273 33,088 2.53% Elections 60,875 45,582 -25.12% Total City Clerk 109,970 97,364 1 -11.46% Inspections Building Code Inspections 268,598 261,854 -2.51% Fire Inspections 34,494 35,155 1.92% Heating & Plumbing Inspections 91,358 88,952 -2.63% Housing Inspections 135,597 157,595 16.22% Restaurant & Hotel Inspections 1,160 0 -100.00% Misc. Community Inspections 79,260 78,908 -0.44% Vacant Property Management 2,700 4,666 72.81% Total Inspections 613,167 627,130 2.28% Police Police Administration 486,499 527,437 8.41% Patrol 2,466,299 2,627,237 6.53% Heat Team 58,906 73,611 24.96% Reserves 24,467 15,162 -38.03% Investigations 430,357 615,083 42.92% Metro Drug Task Force 105,292 114,468 8.71% Pawn Shop 3,493 3,335 -4.52% Outreach 84,036 107,332 27.72% Fire Fire 851,559 912,343 7.14% Emergency Preparedness 3,865 3,965 2.59% Total Fire 855,424 916,308 7.12% Public Works 2012 2013 Budget % Department Budget Budget Incr/(Decr) Dispatch 553,145 0 -100.00% Reception -Records 252,356 244,501 -3.11% Systems Management 65,182 65,855 1.03% Total Police 4,530,032 4,394,021 -3.00% Fire Fire 851,559 912,343 7.14% Emergency Preparedness 3,865 3,965 2.59% Total Fire 855,424 916,308 7.12% Public Works 21,034 21,417 1.82% PW Building 32,739 34,988 6.87% Equipment Services 86,229 85,096 -1.31% Administration 27,442 38,345 39.73% Engineering 132,267 132,003 -0.20% Street & Alleys 859,205 878,399 2.23% Snow & Ice Removal 197,550 182,623 -7.56% Parks 652,465 680,774 4.34% Forestry 210,780 233,774 10.91% Total Public Works 2,198,677 2,266,002 3.06% Recreation Playground 21,034 21,417 1.82% Ice Rink 12,192 13,113 7.55% Park Service 12,810 12,454 -2.78% Joint Recreation 152,000 155,000 1.97% Skate Park 7,063 7,165 1.44% Total Recreation 205,099 209,149 1.97% Activity Center 10,000 10,000 0.00% Total Other Financing Uses Grand Total Expenditures Act Ctr - Community Use 264,914 276,859 4.51% Act Ctr - Maintenance 58,851 58,475 -0.64% Total Activity Center 323,765 335,334 3.57% IPlanning & Zoning 126,837 129,683 2.24% lCommunity Development 85,999 88,926 3.40% Tuition Reimbursement 10,200 777 10,200 0.00% lContingency 90,000 1 50,000 -44.44% Total Expenditures 10,546,525 1 10,570,329 0.23% Other Financing Uses Transfers to other funds 10,000 10,000 0.00% Total Other Financing Uses Grand Total Expenditures 10,000 $10,556,525 10,000 0.00% $10,580,329 0.23% Total Revenues $10,556,525 $10,580,329 Revenues Over (Under) Expenditures $ - $ CITY OF HOPKINS SPECIAL REVENUE FUNDS 2012 2013 BUDGET BUDGET Incr/(Decr) State Chemical Assessment 45,000 45,000 0.00% Economic Development 268,553 286,814 6.80% Real Estate Purchase & Sales - - 0.00% TIF 1.2 Entertainment District 3,000 3,000 0.00% Parking 88,130 89,094 1.09% Communications 209,878 218,264 4.00% Depot Coffee House 120,175 327,300 172.35% TIF 2.6 Handicapped Housing Dev 1,950 1,950 0.00% TIF 2.9 Pines 122,452 121,471 -0.80% TIF 2.11 Super Valu 1,937,708 1,204,768 -37.83% 5th Avenue Flats 6,350 2,500 -60.63% TIF 1.4 - Marketplace II 7,350 5,250 -28.57% Art Center 779,452 765,418 -1.80% PUBLIC HEARING FORTHE 2013 LEVY AND BUDGET December 4, 2012 TAXATION PROCESS ►Preliminary Levy was set in September ►Proposed tax notices mailed ►Public hearing for final proposed levy and general fund budget. ► Final adoption of budget and levy December 411' council meeting providing there are no changes to the proposed budget. GENERAL FUND REVENUES r,rroys sa wv.n„e s� xas;. 11/29/2012 PURPOSE OF BUDGET HEARING To discuss the City's budget To discuss how the city budget impacts the c portion of your taxes The focus of the hearing is on the budget and levy, not property valuations Property valuation discussions are held each spring GENERAL FUND REVENUES 2012 2013 2012 2013 Budget General Fund Budget Budget Incrl(Decr) $1,179,418 Property Taxes $ 8,887,591 $ 8,952,774 0.73% Intergovernmental Revenue 512,370 498,510 -2.71% Licenses, Permits & Fees 487,115 528,095 8.41% Charges for Service 245,150 182,850 -25.41% Miscellaneous Revenue 399,299 403,100 0.95% Interest Earnin s 25,000 15,000 -40.00% Total Revenues $10,556,525 $10,580,329 0.23% GENERAL FUND EXPENDITURES 1 2012 2013 General Fund Budget Budget Incr/(Decr) General Government $1,179,418 $1,221,977 3.61% Community Services 1,153,910 1,167,338 1.16% Public Safety 5,385,456 5,310,329 -1.39% Public Works 2,198,677 2,266,002 3.06% Recreation 528,864 544,483 2.95% Other 110,200 70,200 -36.30% Total Expenditures $10,556,525 $10,580,329 0.23% 1 GENERAL FUND EXPENDITURES ae<.:atro., tx �avemmem sz vx tommunlry servrtn Wdk Wdb 11% Wblk sahry sox THREEYEAR BUDGET COMPARISON Year Budget In r D r% Change 2011 $10,299,327 $226,324 2.25% 2012 $ 10, 556, 525 $ 257,198 2.49 2013 $ 10,580,329 $ 23,804 0.23 ► Change over three year period = 2.73% ► Average change over three years is approximately 0.9% per year The average rate of inflation for 2011 was 3.2% For 2012 the rate of inflation in Oct was 2.2% 2013 PROPOSED LEVY ix— 11/29/2012 FACTORS IMPACTING 2013 BUDGET Grants Received Wage increase for 2013 Personnel restructuring Dispatch to Hennepin County HOW LEVY IS DETERMINED • Real Estate Values for all properties are converted to tax capacity • City's contribution to fiscal disparities is deducted • Tax Increment Values are deducted • RESULT Is the net tax capacity used for LOCAL RATES Tax Levy Certified to County is reduced by Fiscal Disparities distribution RESULT is the Net Levy Net Levy is divided by Net Tax Capacity • RESULT is the tax rate which is multiplied by each tax properties tax capacity RESULT — City Tax Liability FISCAL DISPARITIES • Spreads commercial growth among all metro cities and benefits cities that are not experiencing commercial growth ► Hopkins had been a net "gainer" — we received more than we contributed ► Hopkins is now a net "contributor" — meaning we contribute more that we receive ► Results in higher tax rate N FISCAL DISPARITIES Fiscal Disparities Net Contribution mason ummol I�unmul Itimo�l lero,nool RESIDENTIAL PROPERTY TAX CHANGES FROM 2012 .iom. w. cm. ,v ouKw WHERE MY TAXES GO 11/29/2012 CITY LEVY IMPACT ON HOME TA%HISTORY ON HOMESTEAD RESIDENTIAL HOME VALUE OF $225,000 sura - SLIM sr.wo seoo Aoo Ssoa pane ,mr mna lam mm >on my mu LEVY IMPACT ON RESIDENTIAL PROPERTIES $225,000 $199,625 2013 Pro cased la- 0.7% 5.2%Deer City Increase 2005 2012 Taxes Mer Annual Market Market Payable Previous Value Value 2013 Year Change $150,000 $133,083 $829 $6 0.7% $225,000 $199,625 $1,244 $9 0.7% $350,000 $310528 $1,935 $13 0.7% $500,000 $443,612 $2,765 $19 0.7% VALUE FORTAXES 24 -Hour Police and Fire Protection Emergency medical treatment and management services Well Maintained Streets,Trails, and Sidewalks Elections Boulevard Tree and Forestry Program ► High Quality Recreation programs ► Hopkins Activity Center and Hopkins Depot ► Hopkins Center for the Arts ► Community and Economic Development ► Housing Services and Programs . Building Inspections, Licensing, and Code Enforcement Beautiful Parks and Open Space 3