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HomeMy WebLinkAbout1997 12-04 City Council Special Meeting PacketAGENDA MAPLEWOOD CITY COUNCIL 7:00 P.M., Thursday, December 4, 1997 Council Chambers, Municipal Building Meeting No. 97 -23 Special Meeting I C�allt N E. APPROVAL OF AGENDA EA. PRESENTATIONS NONE F. CONSENT AGENDA NONE G. _PUBLIC HEARINGS 1. 7:00 P.M.: Public Hearing on Proposed 1998 Budget and Taxes a. City Manager Comments b. Video Presentation of Proposed 1998 Budget c. Citizen Comments d. Council Discussion e. Determination of Need for Continuation Hearing Scheduled for 7:00 P.M. on Thursday, December 11 f. Announcement of Hearing to Adopt the 1998 Budget and Taxes Payable in 1998 Ji, AWARD OF BIDS NONE �q NONE NONE o . •i 1 oI L. COUNCIL PR FNTATT(1NS 1. 2. 3. 4. 1. 2. 3. N. ADJOU RNMENI" t AGENDA REPORT TO: City Manager FROM: . RE: DATE: Finance Director �— AGENDA NO. 1 Lot bY Endorse Eejected....._ a 1) c.,6 e ---- PUBLIC HEARING ON PROPOSED 1998 BUDGET AND TAXES November 25, 1997 A public hearing on the proposed property taxes and budget for 1998 has been scheduled for December 4 at 7:00 p.m. in the Council Chambers. At the be * in of the hearing a video g g g presentation of the proposed budget will be shown. Then citizen comments will be received. If additional time is needed for citizen comments, the hearin g has been scheduled to reconvene at 7 :00 p.m. on December 11. The date, time and lace for the continuation hearing must be P g announced prior to adjournment of the public hearing on December 4. If additional time is not needed for citizen comments, a motion should be P assed to cancel the scheduled continuation hearing. State law requires that cities must adopt their 1998 budget and final property tax levy for taxes payable in 1998 at a subsequent public hearing. Therefore, another ublic hearing has been P g scheduled for December 8 at 7: 00 p.m. in the Council Chambers. The date, time and place for the December 8 hearing must also be announced prior to adjournment of the public hearin � g on December 5. If additional time is needed for citizen comments, then the continuation hearing should be held at 7: 00 p . m. on December 11. In this case the budget adoption hearm* g would have to be held at 7:00 p.m. on December 22. Attached is a copy of the public hearing notice that was published. It indicates a proposed 1998 budget that is over $10 million less than the amount in the budget document. This difference is due to a state law on the public hearing notice which specifies that the budget amount include only governmental funds rather than all funds. Also attached is the handout that will be distributed to citizens that attend the hearing. Please note that on page A -1 it includes the phone number f or - ttie Ramsey County Assessor's office and the procedure to follow if a person thinks their property is incorrectly assessed. Page A-4 is a listing of property tax changes on homes with market values from $70,000 to $160,000. PARNANCEIWPIAGM98PRORTAX i� Notice of Proposed Total 'Budget and Property Taxes The Maplewood city council will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the city will provide in 1998. SPENDING: The total budget amounts below compare the city's 1997 total actual budget with the amount the city proposes to spend in 1998. 1997 Total Actual Budget . _ �r.�iwwwwww�wr $20 Proposed 1998 Budget �w�www $23,319,720 Change From 1997-1998 15.8% TAXES: The property tax amounts below compare that portion of the current budget levied in property takes in the city of Maplewood for 1997 with the property. taxes the city proposes to _collect in 1998. 1997 Property Proposed 1998 Change from Taxes Property Taxes 1997-1998 $7,424,880 $7,427,713 0.04% Attend the Public Hearing All Maplewood residents are invited to attend the public hearing of the city council to express their opinions on the budget and the proposed amount of 1998 property taxes. The hearing will be held on: Thursday, December 4, at 7:00 p.m. City Council Chambers Maplewood City Hall 1830 East County Road B Maplewood You are also invited to send your written comments to: Finance Director, City of Maplewood, 1830 East County Road B, Maplewood, MN 55109 PARNANCEWPIAGM98PRORTAX u I N CITY OF MAPLEWOOD 11998 PROPOSED PROPERTY TAXES UB:l 1998 PROPOSED BUDGET PUBLIC HEARING DECEMBER 4,1997 P:\FINANCE\WP\BUDDOC\BDGTHEAR-NOT YOUR PROPERTY'S 1997 ESTIMATED MARKET VALUE In March you received from Ramsey County a NOTICE OF YOUR PROPERTY'S 1997 ESTIMATED MARKET VALUE. Please read this notice. It will affect how much property taxes you will pay in 1998. Every year Ramsey County sends you a notice advising you of the estimated value of your property. Since property taxes are based on the value of your property, your property taxes Will increase as the value of your property increases. The value on the notice is the amount that the county assessor estimates your property would sell for based on sales of property in your area. If you think your property is incorrectly assessed, call the Ramsey County. Assessor's office at 266 -2141 and follow these steps: Talk to County Appraisal Services Staff • Check the facts • Review sales of similar neighboring properties IF NOT SATISFIED —+ Appeal to County "Board of Equalization" ..File an appeal by April deadline • Board meets late in June • Appeal in person or by letter • Call County Assessor's Office for information Appeal to the Minnesota Tax Court •The deadline for filing is March 31 of the year the .taxes are due Regular Division • Attorney recommended • Decisions appealable to Supreme Court • Can be used for any property • Property assessed over $100,000 must file here IF NOT SATISFIED \X Small Claims Division (You must go through the Board of Equalization process first. • Attorney not necessary • Decisions are final • Use for your home, or any property assessed under $100,000 P:\FINANCE\WP \MOTION \NEWS97.MAR A-1 I 1 � HOW YOUR PROPERTY TAXES ARE DETERMINED Box 1 Total Proposed Local Budget minus Box 2 All Non - Property Tax Revenue, eg: * State Aid * Fees, Etc. equals Box 3 Property Tax Revenue Needed (Levy) divided by = equals = equals Box 6 Total "Tax Capacity" (Formerly Assessed Value) Box 7 Property Tax Rate ( "Tax Capacity" Rate) YOUR PROPERTY TAX = Your Property's Market Value X _Class Rate( sl X ' _,fix Ca acit Source: "Understanding Your Property Taxes. 1994 Edition." Minnesota Taxpayers Association, p. 6 P:\FINANCE\WP\BUDDOC\BDGTHEAR.NOT A -2 Box 4 Assessor's • Market Value x times Box 5 State Mandated Class Rates FORMULA FOR 1998 PROPERTY TAXES Step., 1 -- Calculate Tax Capacity MARKET X STATE HOMESTEAD TAX =- VALUE FORMULA CAPACITY $100,000 $ 75,000 X .01 = $ 750 $ 25,00.0 X .0185 = $ 463 $100, 000 $1,213 Step .2 — Calculate Tax Based on Tax CagaaitA: TAX X TAX PROPERTY CAPACITY RATE TAX $1,213 126.235% $1,531.23 (Note: Tax rate is for home in ISD 622 and Battle Creek portion of the Metro Watershed.) Step 3 — Calculate Tax Based on Market Value MARKET X TAX TAX = VALUE RATE CAPACITY $100,000 0.0854% $ 85.40 Step 4 — Calculate Total Tax TAXES BASED TAXES BASED TOTAL ON TAX CAPACITY + ON. MARKET VALUE TAX $1,531.23 $85.40 $1,616.63 P: \FINANCE\WP \BUDDOC\BDGTHEAR.NOT A_3 U 13 ESTIMATED 1998 CITY PROPERTY TAX CHANGES TAX RATE CHANGES Estimated Payable 1997 Payable 1998 Percent Local Tax Rate Local Tax. Rate C hange Tax rate on tax capacity 21.309% 20.819% -2.3% Tax rate on market value for open 0.02728 °fo 0.02521% -7.6% space bonds PROPERTY TAX CHANGES ON HOMES Estimated Market Tax (Decrease) (Decrease) Value * Capacity Tax Increase Percent Increase $ 70,000 $ 700 $164 $ 5 3.1% 97,400 ** 1,164 267 2 0,8% 1 1 278 2 0,7% 120,000 1,583 360 (2) (0.6)% 140 1,953 442 (6) (1.3)% 160,000 2,323 524 (10) (1.9)% *The values listed for 1998 are 5.5% more than 1997 which was the average change according to the Ramsey County Assessor's Office. **Average value home in Maplewood P: \FINANCE\WP \BUDDOC \BDGTHEAR.NOT A'4 R rd PRO.PERTY.TAX RELIEF The legislature provides several different types of property tax relief. The homeowner's and renter's rebates are given to taxpayers whose property taxes are disproportionate to their .income. More importantly, a targeting refund is available for homeowners whose taxes increase by more than 12% from the prior year. No income limits apply to this refund. Property owners file for the .refunds using, state form M1 -PR which is sent out with state income tax .instructions. The M1 -PR form can also be obtained at post offices, libraries and most banks or by calling 296 -3781 (24 hours /day) or by writing to: Minnesota Tax Forms Mail Station 7131 St. Pawl, MN 55146 -7131 A -5 P AFINANCEIWP\BUDDOC\BDGTHEAR.NOT THE FOLLOWING PAGES ARE AN EXCERPT FROM THE PROPOSED 1998 BUD GET P: 1FtNANCEIWPIBUDDOCIBDGTHEAR.NOT CITY OF MAPL VV V UC) OD 1830 E. COUNTY ROAD B MAPLEWOOD, MINNESOTA 55109 )FFICE OF CITY MANAGER 612 - 770 -4524 1 July 30, 1997 Honorable Mayor and Council Members: I am pleased to transmit the 1998 Proposed Budget for the City of BUDGET Maplewood for your review and approval. The remaining parts of the AWARD document are in a format similar to the 1997 Budget which received the Award for Distinguished Budget Presentation from the Government Finance Officers Association of the United States and Canada. It is hoped that the format of this document and the information contained within it will clearly communicate the City's 1998 financial plans and provide an operations guide for all City departments. The Budget is divided into three main sections: Operations, Capital Improvements, and Debt Service. Within the Operations section, the basic focus is on 1998 performance objectives for each department and the planned expenditures to accomplish the objectives. The focus of the Capital Improvements section is the construction projects planned for 1998. The Debt Service section. focus is on the scheduled bond issue principal and interest payments due in 1998. The mission statement of the City of Maplewood is "to provide high - OBJECTIVES quality and cost effective public services. " The major objectives of the 1998 Budget are designed to help the City accomplish this mission. These budget objectives include the following: keep the property tax increase under the inflation rate and population growth rate, decrease the net loss at the Community Center to $100,000 or less and maintain the level of services provided* by all other departments. Other major objectives are listed on page 2 -1 and objectives for each department are listed in Section 3. 1 -5 Equal Opportunity Employer • TAX LEVY DECREASE FOR 1998 IS 0.3% CITY RECEIVES 16.5% OF TAXES The City's tax levy for 1998 is $8.,959,580 which is 0.3 % less than 1997. Approximately 81 % of the total levy, is for operations financed by. the General Fund. Most of the remaining levy (15 %) is for debt service costs on bond issues The remainin g 4 % of the tax levy is for capital improvements. The 1997 legislative enacted a tax levy limitation law which is effective for taxes P a Y able in 1998 and 1999. The levy limit formula allows an increase in the tax levy for inflation and housing growth. Also, certain special tax levies such as debt service are exempt from the limit. The levy `limit law makes it virtuall Y im possible ossible for the city to expand or add services for its residents. It also will not allow the city to comply with another state law that requires an $80,000 Storm Water Management Study. Noncompliance with the statutory requirement will be an unportant topic for discussion p rior to the council's adoption of the tax levy and budget for 1998. In 1997 the City received 16.5 % of the property taxes on property within the City. It is anticipated that this rate will not change significantly in 1998. The following indicates the allocation of property tax dollars by government type: ;� E? 10 • 16172' 9445 A 10 ! tk..,E • , t 1MK • refit &U.09 W � i � n � a s P P O r f A t � _ N § 1 L 1 rl 7 C l i li r. i 5.4% 16.5 31.2%'0 Other City County 46.9 Schools It should be noted that the above data is for property in Maplewood that is located within School District 622. 1 -6 4 1998 EXPENDITURES BUDGET $33.4 MILLION Expenditures in the 1998 Budget are 12.5 % higher than 1997. The breakdown by section is listed in the following table: REVENUES AND EXPENDITURES BY SECTION Comparison of 1997 and 1998 Budget REVENUES EXPENDI Amount Change Amount Change Operation $22,235,150 + 5.4% $22,591,070 + 6.4% Ca pital Improvements 3,21.6,470 - 7.5 3,429,880 -24.7 Debt Service 1,8 -14. 7,343,820 + 90.1 Totals $27,266,410 + 2.1-% $33,364,7.70 + 12.5% The difference between total revenues and expenditures will be financed by the use of surplus fund balances and. bond issues. OPERATING BUDGE This portion of the budget covers basic City services such as police, firefighting, street maintenance, recreation programs, park maintenance, planning, building inspections and utility maintenance. The expenditures for the funds within this portion of the budget are grouped by department and subdivided into divisions for each department. Budget performance is measured based on the accomplishment of the objectives for 1998 listed for each department and by the percentage of budgeted expenditures that are spent. Operating budget revenues for 1998 are 5.4% more than 1997. The OPERATING revenue category with the largest increase is miscellaneous which is up BUDGET $350,320 due to increases in internal service charges for payroll benefits. REVENUES Charges for service revenues for 1998 are projected to increase by UP 5.4% 0 $ and most of this increase is for sewer service billings. Revenues in the charges for service category include a planned increase _in ambulance rates effective January 1, 1998 as indicated in the following table. 1-7 1 4 1 1 % AMBULANCE RATES UP 5.6% UTILITY RATES UP 3.5% The 1998 ambulance rates are based upon the average 1997 ambulance rates charged by other, The increase in rates will produce additional revenues of approximately $54,000. The increase in rates will decrease the property tax subsidy for paramedic services es Operating budget revenues for 1998 produced by utility service charges will total $3,799 , 630 which represents 13.9 % of the total revenues. Utilit Y service charges consist of hydrant charges ($252,130), sewer service charges ($3,477,810) and recycling charges ($69,690). Cu Y g g went hydrant charges and recycling charge rates will be sufficient to finance the 1998 Budget. However, sewer rates will need to be 'increased b 4 y 4.2% to ,finance. the 1998 Budget. The last sewer rate increase was January 1, 1997. Most of the revenues from the sewer rates finance the Metro olitan p Council sewage treatment charges to Maplewood which will be 75.3 % of the operating expenses for the Sanitary Sewer Fund in 1998. 1 -8 AMBULANCE RATE INCREASES Increase 1997 1998 Amount Percent Basic life support: Resident $ 270 $ 285 $ 15 5.6 % Non - resident 295 310 20 5.1 Advanced life support: Resident: 525 555 30 5.7 Non - resident 580 615 35 6.0 Charge per mile 7.65 8.05 0.40 5.2% The 1998 ambulance rates are based upon the average 1997 ambulance rates charged by other, The increase in rates will produce additional revenues of approximately $54,000. The increase in rates will decrease the property tax subsidy for paramedic services es Operating budget revenues for 1998 produced by utility service charges will total $3,799 , 630 which represents 13.9 % of the total revenues. Utilit Y service charges consist of hydrant charges ($252,130), sewer service charges ($3,477,810) and recycling charges ($69,690). Cu Y g g went hydrant charges and recycling charge rates will be sufficient to finance the 1998 Budget. However, sewer rates will need to be 'increased b 4 y 4.2% to ,finance. the 1998 Budget. The last sewer rate increase was January 1, 1997. Most of the revenues from the sewer rates finance the Metro olitan p Council sewage treatment charges to Maplewood which will be 75.3 % of the operating expenses for the Sanitary Sewer Fund in 1998. 1 -8 1� OPERATING BUDGET EXPENDITURES UP 6.4% The following table summarizes the proposed utility rate increases for an average home. Operating budget expenditures for 1998 are $22.6 million and 6.4% P g hi g her than 1997. The largest increase is for the Police Department wh is up 13 .9%. This increase is P rimarily due to the transfer of firefighter medical call pay from the Fire Department budget to the Police Department budget. This has also caused a large percentage decrease in P g the Fire Department budget. Population growth and commercial development requires budget increases in excess of the inflation rate in order to maintain the present level of City s ervices. The size of population increases is directly related to the s PP number of new housing units built, Commercial development can be monitored based on the valuation of non - residential building permits. For the y ast three ears the amounts have been as follows: P DEMAND FOR CITY SERVICES BASED ON GROWTH PROPOSED UTILITY RATE INCREASES I ON AN AVERAGE HOME NON- Quarterly Charge Increase RESIDENTIAL GROWTH 1997 1998 Amount Percent Water (hydrant $3.70 $3.70 $0 0.0% charge) Number of Sewer service 38.10 39.70 1.60 4.2 Recycling charge 3.60 3.60 0 0.0 Total $45.40 $47.00 $1.60 3.5% Operating budget expenditures for 1998 are $22.6 million and 6.4% P g hi g her than 1997. The largest increase is for the Police Department wh is up 13 .9%. This increase is P rimarily due to the transfer of firefighter medical call pay from the Fire Department budget to the Police Department budget. This has also caused a large percentage decrease in P g the Fire Department budget. Population growth and commercial development requires budget increases in excess of the inflation rate in order to maintain the present level of City s ervices. The size of population increases is directly related to the s PP number of new housing units built, Commercial development can be monitored based on the valuation of non - residential building permits. For the y ast three ears the amounts have been as follows: P DEMAND FOR CITY SERVICES BASED ON GROWTH NON- RESIDENTIAL GROWTH RESIDENTIAL GROWTH New Number of Valuation of Housing New Percent Non - Residential YEAR Units Residents Population Increase Building Permits 1994 275 509 32 1.6% $20,634,097 1995 279 630 33 1.9% $69,334,842 1996 230 475 34,008 1.4% $18,658,795 1 -9 0 7 The 1997 population estimate which will be released next year by the Metropolitan Council, will probably be a 1.0% increase over 1996. This is bused on 80 building permits for new housing units issued during the first six months of 1997 compared to 112 for the same period in 1996 with an occupancy rate. of two persons per unit. The number of full -time employees included in the 1998 Budget is 144. + 3 FULL -TIME This is an increase of 3 positions The breakdown by department is as EMPLOYEES follows: + 1 Finance - A part -time clerk - typist position was changed to full time in order to prepare medical insurance claim forms for ambulance service customers. The Council approved this change on 1 -13 -97 and the position was filled 2- 17 -97. + 1 General Government - A community oriented services coordinator position was authorized by the Council on 11 -12 -96 and the position was filled 1-2-97. 56% OF OPERATING +1 Parks and Recreation - Two half -time community gym supervisors BUDGET IN were changed to full -time recreation program assistants effective 3- GENERAL FUND 29 -97. These changes were offset by the elimination of one full -time position. The Council approved these changes on 1- 27 -97. +1 Police -Two half -time clerk- typist positions are planned to be combined into one full -time clerk - typist position. - 1 Public Works - An Engineering technician position that has been vacant since 9 -29 -95 has been eliminated. Approximately 56 % of the operating Budget is accounted for in the City's General Fund. Revenues projected for 1998 will be 3.2 % higher than the 1997 Budget. Expenditures will be 4.8% higher in 1998 than the 1997 Budget. The 1998 Budget for the General Fund is a deficit budget as 1998 expenditures exceed revenues by $291,390. Transfers to other funds will increase this deficit to $776,310. The deficit will be financed by using part of the surplus fund balance. The 3.7% increase in General Fund revenues amounts to $381,690. The GENERAL FUND largest increases are in property taxes (up $182,610) and licences /permits REVENUES (up $141,650). In 1998 property takes will be 48% of total revenues for UP 3.7% the General Fund. This is a small increase from 1997 when property takes were 46% of the revenues. 1 -10 ki GENERAL FUND PER CAPITA EXPENDITURES UP 3.7% Department expenditure requests for the General Fund were 14.0 % higher than the original 1997 Budget. The 1998 Budget includes recommended expenditures that are 4.8 % higher than the 1997 Budget. On a capita basis, General Fund expenditures will increase by 3.7 % P P as indicated in the following table: Actual per capita expenditures for 1997 and 1998 may be significantly different than the budget amounts as population changes are difficult to estimate and. expenditures are usually less than the budget. An analysis of the General Fund cash flow for 1995 and 1996 indicated that GENERAL FUND the 12 -31 -97 fund balance should be between 27.6 % and 28.1 % of the BALANCE revenues to finance cash flow needs. The fund balance also needs to be WILL enough large h to finance unexpected expenditures that are in excess of the g INCREASE General Fund contingency account. Therefore, the budgeted 12 -31 -98 fund balance has been set at 34-6 of the 1998 budgeted revenues. . This should provide a sufficient balance. to cover cash flow needs and unexpected _ ex P enditures. Also, it is reasonably close to the 36.1 % level that it was at in: October, 1989 when the city's band rating by Moody's Investors Services was increased to Aa. The budgeted 12 -31 -97 fund balance was 34.6% of the 1997 budgeted revenues. CAPITAL IMPROVEMENTS BUDGET This portion of the budget covers the acquisition and construction of major facilities other than those financed by the Operating Budget. The revenues and expenditures within the Capital Improvements Budget are grouped by fund. The money within each fund is restricted for use to acquire and 1 -11 GENERAL FUND EXPENDITURES 1995 1996 1997 1998 AC TUAL ACTUAL BUDGET BUDGET Expenditures $10,796,698 $11,234,246 $11 $12,436,450 Population 33,533 34,008 34,348 34,691 Per capita expenditures $ 322 $ 330 $ 346 $358 for General Fund PERCENT CHANGES: Percent change in 4.7% 4.1% 5.7% 4.8% expenditures Percent change in population 1.9% 1.4°x6 1.0% Per capita expenditures 2.8% 2.6% 4.6% 3.7% percent change Actual per capita expenditures for 1997 and 1998 may be significantly different than the budget amounts as population changes are difficult to estimate and. expenditures are usually less than the budget. An analysis of the General Fund cash flow for 1995 and 1996 indicated that GENERAL FUND the 12 -31 -97 fund balance should be between 27.6 % and 28.1 % of the BALANCE revenues to finance cash flow needs. The fund balance also needs to be WILL enough large h to finance unexpected expenditures that are in excess of the g INCREASE General Fund contingency account. Therefore, the budgeted 12 -31 -98 fund balance has been set at 34-6 of the 1998 budgeted revenues. . This should provide a sufficient balance. to cover cash flow needs and unexpected _ ex P enditures. Also, it is reasonably close to the 36.1 % level that it was at in: October, 1989 when the city's band rating by Moody's Investors Services was increased to Aa. The budgeted 12 -31 -97 fund balance was 34.6% of the 1997 budgeted revenues. CAPITAL IMPROVEMENTS BUDGET This portion of the budget covers the acquisition and construction of major facilities other than those financed by the Operating Budget. The revenues and expenditures within the Capital Improvements Budget are grouped by fund. The money within each fund is restricted for use to acquire and 1 -11 ,,V El :construct only major facilities. All other capital outlay is financed within the Operating Budget. The 1998 Budget implements the first year of the 1998- 2002 Capital Improvement Plan adopted by the City Council on 5- 27 -97. Revenues for 1998 in the Capital Improvements Budget are $258,860 and CAPITAL 7.4% less than 1997. This decrease is caused primarily by a decrease in IMPROVEMENTS state street construction aid to finance improvement projects. Major REVENUES revenue sources for the 1998 Capital Improvement Budget are tax increment DOWN 704% revenue ($905,830) and street construction state aid ($1,625,000). Capital Improvement Budget expenditures planned for 1998 include public CAPITAL improvement projects ($2,390,000.), park development ($250,000), fire IMPROVEMENTS truck ($250,000) and the continuance of the street overlay and sealcoating EXPENDITURES program ($100,000). The impact of these items on operating costs will not DOWN be significant. Total 1998 expenditures are $3,429,880, and 24.7% less than 24.7% 1997. DEBT SERVICE BUDGET This portion of the budget covers the payment of principal and interest on DEBT the City's bonded indebtedness. Each bond issue has a separate debt service SERVICE sinking fund. REVENUES DOWN 14.5 % Revenues for 1998 are 14.5 % less than 1997 primarily due to a decrease in property taxes. Major revenue sources, as in past years, are property taxes ($1,293,690), special assessments ($223,810), and interest on investments ($297,290). Expenditures for 1998 are 90.1 % more than 1997. The large increase is DEBT caused by $3,860,000 of prepayments in 1998 on bonds being refinanced SERVICE at a. lower interest rate. If these large prepayments were not included in the EXPENDITURES 1998 Budget, debt service expenditures would be 9.8 % less in 1998 than UP 90.1 % 1997. The anticipated new debt issue for 1998 consists of a bond issue for public works improvements . At the end of 1998, general long -term net debt payable will be $25,050,000 which is $170,000 less than projected for the end of 1997. 1 -12 1 1 Operating Budget increases in the future will continue to exceed the FUTURE inflation rate because of population growth and increases in commercial GROWTH development. The City has experienced slow steady population growth since g WILL IMPACT 1980. Average annual population increases between 1980 and 1.990 were OPERATING 1 5 %. The City's latest population estimate is 34,008 for 1996 according BUDGET to the Metropolitan Council. This represents a 1.4 % increase over 1995. It is anticipated that population growth may decline to an annual rate 1.0% p based upon building permit data for the first six months of 1997. In 1996 City g p the Ci issued building emuts with a total valuation of $46.4 million. In 1995 the City g issued building permits with a total valuation of $94.6 million. Permit values were significantly higher in 1995 because of large commercial buildings. Based on projections in the 1998 -2002 Capital Improvement Plan, the CAPITAL Capital Budget will range from $1.3 million to $8.7 million in 1999 -2002. IMPROVEMENT Major factors affecting the capital budgets will be (a) the referendum for EXPENDITURES replacement of the Gladstone Fire Station in 1999, (b) the number of public WILL improvement projects that are approved for construction and (c) the DEPEND ON referendum in 1999 for park improvements. Bond issues to finance the REFERENDUMS 1998 -2002 Capital Improvement Plan total $9,150,000. Conserving the financial resources of the City continues to be important. CONCLUSION budgeting p The bud etin function is the rime tool you have to make sure the City's limited resources are wisely utilized and to establish department objectives for the comin g year. we continue with the objectives of making Maplewood an affordable place to live while providing the services that make it a good place to live . The Council's cooperative effort in the review and adoption of the 1998 Budget will be greatly appreciated. I would also like to express my appreciation to all City personnel who assisted in the preparation of the 1998 Budget. Michael A. McGuire City Manager 1 -13