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Home My WebLink About2011 12-05 City Council Special Budget Meeting AGENDA MAPLEWOOD CITY COUNCIL SPECIAL CITY COUNCIL MEETING 7:00 P.M. Monday, December 5, 2011 Council Chambers, City Hall A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. ROLL CALL D. APPROVAL OF AGENDA E. PUBLIC HEARING 1. Public Hearing on 2012 Tax Levy and Budget a. Resolution Certifying Taxes Payable in 2012 b. Resolution Adopting a Budget for 2012 F. UNFINISHED BUSINESS G. NEW BUSINESS H. ADJOURNMENT THIS PAGE IS INTENTIONALLY LEFT BLANK AGENDA E-1 AGENDA REPORT TO: City Manager FROM: Finance Manager DATE: November 29, 2011 RE: Public Hearing on 2012 Tax Levy and Budget a. Resolution Certifying Taxes Payable in 2012 b. Resolution Adopting a Budget for 2012 INTRODUCTION Staff is asking City Council approval of two related matters concerning the levy certification of the final taxes payable in 2012 as well as adoption of the proposed 2012 Budget for the City of Maplewood. A public hearing on the proposed taxes and budget for 2012 has been scheduled for December 5th at 7:00 p.m. State law requires that the final property tax levy and budget be adopted at this hearing. The tax levy needs to be adopted before the budget is adopted. BACKGROUND Following the adoption of the 2012-2016 CIP document in May 2011, staff estimated a levy increase between 3-5% was needed in 2012 to fund operations, capital projects and debt. As staff met with council throughout July and August, council directed staff to make certain adjustments to their proposals and the State of Minnesota eliminated the Market Value Homestead Credit program for taxes payable in 2012. The elimination of the MVHC program meant the City would no longer be shorted by the State on its property tax levy but non- homestead properties would likely see an increase in their taxes. Revisions were made to the proposed budget and on September 12, 2011, staff recommended preliminary certification of a tax levy totaling $17,853,523, this amount representing a 2% increase over the final levy payable in 2011 ($17,503,454). Council approved the preliminary levy request. Staff made a presentation to Council at the October 24, 2011 workshop updating the Council on the City’s finances through 9/30/11. Estimates indicated that the City could end this year with a fund balance that is 40% of fund operating revenues, which is higher than what was anticipated earlier this year. The City Manager does not recommend reducing the levy at this time due to the continued uncertainty with some of the revenue estimates in a number of areas, the lack of funding for deferred maintenance items, the deficits being carried by the Community Center, Ambulance Service and Employee Benefits funds, and how quickly unanticipated items can arise. For each 0.5% decrease in the levy, approximately $87,000 of additional revenues or cuts to expenditures would need to be made. Packet Page Number 1 of 10 The annual impact of the city levy increase to Maplewood homes is as follows based on information received from Ramsey County on 11/17/11. The scenario is based on the assumption that a homes value is decreasing by 6.25%, which is the median amount. Set levy at $17,853,523 (a 2.0% increase over 2011): Property Value for 2011 Taxes Property Value for 2012 Taxes 2011 City Tax 2012 City Tax $ Increase (Decrease) % Increase (Decrease) $100,000 $93,800 $ 327 $ 305 ($22) -6.6% $150,000 $140,600 $ 546 $ 539 ($7) -1.2% $195,100 $182,900 $ 743 $ 750 $7 1.0% $275,000 $257,800 $1,093 $1,124 $31 2.9% $350,000 $328,100 $1,421 $1,476 $55 3.8% The State Auditor recommends that cities maintain unreserved fund balances in their general fund of approximately 35 to 50 percent of fund operating revenues or no less than five months of operating expenditures. The 2012 budget projects a fund balance of 40.0% of fund operating revenues and 4.8 months of operating expenditures. The 2% levy increase puts us within the range recommended by the State Auditor. An adequate fund balance is needed to maintain our bond rating and provide a sufficient balance for our cash flow needs. Information from Ramsey County shows that other city proposed tax levy changes are as follows: Falcon Heights -2.0% Gem Lake 1.8% New Brighton -1.5% North Oaks 2.4% Shoreview -0.6% Lauderdale 3.0% Vadnais Heights -0.4% Arden Hills 3.0% North St. Paul -0.2% Roseville 4.0% Little Canada 0.0% St. Paul 6.5% Mounds View 0.0% Town of White Bear 7.6% RECOMMENDATION Staff recommends approval of the following two resolutions: a. Resolution Certifying Taxes Payable in 2012 b. Resolution Adopting a Budget for 2012 Attachments: 1. Resolution Certifying Taxes Payable in 2012 2. Breakdown by Debt Service Fund 3. Resolution Adopting a Budget for 2012 4. 2012 Proposed Budget (under separate cover) 5. Sample 2012 property tax statements Packet Page Number 2 of 10 Attachment 1 RESOLUTION CERTIFYING TAXES PAYABLE IN 2012 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA that: 1. The following amounts of taxes be levied for 2011, payable in 2012, upon the net tax capacity in said City of Maplewood, for the following purposes: General Fund $12,265,420 Ambulance Service 350,000 Community Center 460,000 Recreation Programs 175,000 Capital Improvement Projects 145,000 Fire Truck Replacement 50,000 Public Safety Expansion 200,000 Debt Service 3,521,933 TOTAL LEVY $17,167,353 2. In addition, there is a $686,170 market value based referendum levy for 2011 payable in 2012 to finance the debt service on the 2002 Open Space Refunding Bonds and the 2004 Fire Safety Refunding Bonds. This results in a total certified levy of $17,853,523. 3. The net tax capacity based levy of $3,521,933 for Debt Service and the market value based referendum levy of $686,170 total $4,208,103. This is a net decrease of $1,689,827.91 in the scheduled levy of $5,897,930.91. The breakdown by Debt Service Fund is attached. Packet Page Number 3 of 10 Attachment 2 City of MAPLEWOOD Debt Service Fund breakdown ADDITIONS OR CERTIFIED ORIGINAL DATE PAYABLE 2012 REDUCTIONS BY DEBT BOND ISSUES PRINCIPAL ISSUED DEBT LEVY RESOLUTION LEVY GO O SPACE REFUND 2002D 3,425,000 1-Nov-02 407,190.00 -37,990.00 369,200.00 GO REF 2004A 2,940,000 1-Apr-04 321,034.39 12,265.61 333,300.00 GO IMP 2004B 13,010,000 1-Aug-04 295,613.47 415,186.53 710,800.00 GO TAX ABMT 2004C 5,025,000 1-Aug-04 153,057.00 413,643.00 566,700.00 GO IMP 2004D 700,000 1-Aug-04 54,049.00 3,451.00 57,500.00 GO IMP 2005A 2,115,000 1-Aug-05 55,772.00 -55,772.00 0.00 GO IMP 2006A 6,085,000 1-Apr-06 367,028.84 49,471.16 416,500.00 GO IMP 2007A 10,060,000 1-Jul-07 328,427.46 -207,827.46 120,600.00 GO IMP 2007B 5,090,000 15-Oct-07 380,605.23 -113,905.23 266,700.00 GO IMP 2008A 9,970,000 1-Jul-08 652,168.19 -471,368.19 180,800.00 GO IMP REFUNDING 2008B 1,070,000 1-Jul-08 156,646.88 -156,646.88 0.00 GO IMP REFUNDING 2009A 4,680,000 1-Apr-09 431,986.18 -55,086.18 376,900.00 GO IMP REFUNDING 2009B 2,690,000 1-Dec-09 353,498.28 -40,298.28 313,200.00 GO 2010A 11,790,000 10-May-10 696,759.04 -421,856.04 274,903.00 GO TIF Refunding 2010B 4,050,000 8-Jul-10 777,840.00 -777,840.00 0.00 GO IMP 2011A 10,000,000 1-Jun-11 466,254.95 -245,254.95 221,000.00 $5,897,930.91 -$1,689,827.91 $4,208,103.00 I hereby certify that the above schedule of bond levies to be spread on the payable 2012 tax rolls agrees with the City records and is true and correct. Copies of any resolutions which increase or reduce these levies are attached. Signed: ___________________________________ Date: _______________ Packet Page Number 4 of 10 Attachment 3 RESOLUTION ADOPTING A BUDGET FOR 2012 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA that a budget for 2012 is hereby adopted as outlined in the following summary: OPERATING BUDGET CAPITAL IMPROVEMENTS BUDGET DEBT SERVICE BUDGET TOTAL Revenues $32,505,390 $1,851,430 $6,910,900 $41,267,720 Net other increases (decreases) (1,576,490) 586,830 989,660 $0 Expenditures (32,079,330) (1,218,610) (9,743,150) ($43,041,090) Net change in fund balance ($1,150,430) $1,219,650 ($1,842,590) ($1,773,370) BE IT FURTHER RESOLVED that the department appropriations totaling $32,079,330 as listed in the budget booklet are hereby approved for the 2012 Operating Budget. BE IT FURTHER RESOLVED that the following appropriations are hereby approved for the 2012 Capital Improvements Budget: CAPITAL IMPROVEMENT PROJECTS $100,010 FIRE TRUCK REPLACEMENT FUND 1,200 LEGACY VILLAGE TAX ABATEMENT DISTRICT 3,750 OPEN SPACE 30,030 PARK DEVELOPMENT 705,230 PUBLIC SAFETY EXPANSION 200,000 RIGHT-OF-WAY 200 TAX INCREMENT HOUSING DISTRICT #1-1 500 TAX INCREMENT HOUSING DISTRICT #1-2 500 TAX INCREMENT HOUSING DISTRICT #1-3 500 TAX INCREMENT HOUSING DISTRICT #1-4 600 TAX INCREMENT HOUSING DISTRICT #1-5 600 TAX INCREMENT HOUSING DISTRICT #1-6 78,720 TAX INCREMENT HOUSING DISTRICT #1-7 21,040 TAX INCREMENT HOUSING DISTRICT #1-8 72,020 WATER AVAILABILITY CHARGE – N. ST. PAUL 1,550 WATER AVAILABILITY CHARGE – ST. PAUL 2,160 TOTAL CAPITAL IMPROVEMENTS BUDGET APPROPRIATIONS $1,218,610 Packet Page Number 5 of 10 BE IT FURTHER RESOLVED that the Finance Manager shall establish a budget for each public improvement project when the Council orders the project and that the budget amounts shall be recorded at amounts specified in the feasibility study for the project. BE IT FURTHER RESOLVED that the following appropriations are hereby approved for the 2012 Debt Service Budget: $6,825,000 Principal 2,898,430 Interest 7,310 Paying Agent Fees 8,670 Fees for Service 3,740 Investment Management Fees $9,743,150 TOTAL DEBT SERVICE BUDGET APPROPRIATIONS BE IT FURTHER RESOLVED that the above budgets for Governmental Funds are hereby adopted for financial reporting and management control. BE IT FURTHER RESOLVED that the above budgets for all other funds are hereby adopted for management purposes only. BE IT FURTHER RESOLVED that the transfer of appropriations among the various accounts, within a fund, shall only require the approval of the Manager or his designee. However, City Council approval is required for transfers from contingency accounts. BE IT FURTHER RESOLVED that all appropriations which are not encumbered or expended at the end of the fiscal year shall lapse and shall become part of the unencumbered fund balance which may be appropriated for the next fiscal year except appropriations for capital improvement projects which shall not lapse until the project is completed or canceled by the City Council. Packet Page Number 6 of 10 TRUE LEE LID MOUA 1784 JACKSON ST MAPLEWOOD MN 55117-2325 116424 109 1/1 Proposed 2012 182922430078 182922430078 5731 1784 JACKSON ST N CITY HEIGHTS SUB TO DRAINAGE ESMT LOT 31 BLK 2 Res Hstd Res Hstd $193,300 $183,600 0 0 0 0 $193,300 0 0 0 0 20,700 $162,900 888.51 69.10 6.59 68.32 915.73 70.21 6.60 71.43County Library MAPLEWOOD CITY OF MAPLEWOOD 1830 COUNTY ROAD B E MAPLEWOOD MN 55109-2797 (651) 249-2902 727.80 753.77 MAPLEWOOD CITY COUNCIL CHAMBERS 1830 EAST COUNTY ROAD B MAPLEWOOD, MN 55109 DECEMBER 5, 2011 7:00 PM 0.00 0.00 ISD #623 ISD 623 1251 COUNTY RD B2 W ROSEVILLE MN 55113 (651) 635-1600 433.48 204.29 414.12 220.06 DISTRICT SERVICE CENTER 1251 COUNTY ROAD B2 W ROSEVILLE, MN 55113 DECEMBER 6, 2011 6:30 PM 49.61 53.62 20.30 0.00 0.00 20.46 0.00 0.00 2,468.00 2,526.00 2.4% Attachment 5 Packet Page Number 7 of 10 HOUSEHOLD INDUSTRIAL FIN CO CO HSBC MORTGAGE SERVICES 636 GRAND REGENCY BLVD BRANDON FL 33510-3942 138442 164 1/1 Proposed 2012 152922220064 152922220064 5726 1302 Burke CIR E GLADSTONE PARK SUBJ TO PATHWAY ESMT; LOT 7 BLK 1 GL ADSTONE PARK Res Hstd Res Hstd $278,600 $267,300 0 0 0 0 $278,600 0 0 0 0 13,200 $254,100 1,357.22 105.60 10.07 104.41 1,429.74 109.52 10.29 111.42County Library MAPLEWOOD CITY OF MAPLEWOOD 1830 COUNTY ROAD B E MAPLEWOOD MN 55109-2797 (651) 249-2902 1,108.76 1,171.88 MAPLEWOOD CITY COUNCIL CHAMBERS 1830 EAST COUNTY ROAD B MAPLEWOOD, MN 55109 DECEMBER 5, 2011 7:00 PM 0.00 0.00 ISD #622 ISD 622, BUSINESS OFFICE 2520 E 12TH AVE NORTH ST PAUL MN 55109 (651) 748-7511 IF THE REFERENDUM FOR YOUR SCHOOL DISTRICT WAS APPROVED AT THE NOVEMBER GENERAL ELECTION, THE VOTER APPROVED TAX FOR 2012 MAY BE HIGHER THAN THE PROPOSED AMOUNT SHOWN ON THIS NOTICE. 510.57 656.31 494.83 620.34 DISTRICT EDUCATION CENTER 2520 EAST 12TH AVE NORTH ST. PAUL, MN 55109 DECEMBER 13, 2011 7:00 PM 75.81 83.65 68.46 0.00 0.00 78.33 0.00 0.00 3,997.21 4,110.00 2.8% Attachment 5 Packet Page Number 8 of 10 AMITABH TIPNIS KAREN SCHWARTZBAUER 2559 DAHL AVE E SAINT PAUL MN 55119-6500 117968 113 1/1 Proposed 2012 132822120012 132822120012 5726 2559 DAHL AVE E WOODHILL LOT 1 BLK 1 Res Hstd Res Hstd $376,600 $376,600 0 0 0 0 $376,600 0 0 0 0 3,300 $373,300 1,886.82 146.68 13.99 145.03 2,099.58 160.90 15.12 163.69County Library MAPLEWOOD CITY OF MAPLEWOOD 1830 COUNTY ROAD B E MAPLEWOOD MN 55109-2797 (651) 249-2902 1,537.88 1,718.32 MAPLEWOOD CITY COUNCIL CHAMBERS 1830 EAST COUNTY ROAD B MAPLEWOOD, MN 55109 DECEMBER 5, 2011 7:00 PM 0.00 0.00 ISD #622 ISD 622, BUSINESS OFFICE 2520 E 12TH AVE NORTH ST PAUL MN 55109 (651) 748-7511 IF THE REFERENDUM FOR YOUR SCHOOL DISTRICT WAS APPROVED AT THE NOVEMBER GENERAL ELECTION, THE VOTER APPROVED TAX FOR 2012 MAY BE HIGHER THAN THE PROPOSED AMOUNT SHOWN ON THIS NOTICE. 695.89 909.31 706.03 908.40 DISTRICT EDUCATION CENTER 2520 EAST 12TH AVE NORTH ST. PAUL, MN 55109 DECEMBER 13, 2011 7:00 PM 105.30 122.88 95.10 0.00 0.00 115.08 0.00 0.00 5,536.00 6,010.00 8.6% Attachment 5 Packet Page Number 9 of 10 GERALD G GUERTIN TRUSTEE MARYANN C GUERTIN TRUSTEE 33802 N 23RD DR PHOENIX AZ 85085-6054 139253 166 1/1 Proposed 2012 122822420052 122822420052 5725 583 STERLING ST S CRESTVIEW FOREST,2ND ADDITION COMMON AREA INTEREST IN OUT LOT A AT TRIBUTABLE TO & LOT 4 BLK 2 Res Non-Hstd Res Non-Hstd $193,800 $183,500 0 0 0 0 $193,800 0 0 0 0 0 $183,500 977.56 76.00 7.25 75.15 1,032.50 79.09 7.43 80.47County Library MAPLEWOOD CITY OF MAPLEWOOD 1830 COUNTY ROAD B E MAPLEWOOD MN 55109-2797 (651) 249-2902 796.53 844.34 MAPLEWOOD CITY COUNCIL CHAMBERS 1830 EAST COUNTY ROAD B MAPLEWOOD, MN 55109 DECEMBER 5, 2011 7:00 PM 0.00 0.00 ISD #622 ISD 622, BUSINESS OFFICE 2520 E 12TH AVE NORTH ST PAUL MN 55109 (651) 748-7511 IF THE REFERENDUM FOR YOUR SCHOOL DISTRICT WAS APPROVED AT THE NOVEMBER GENERAL ELECTION, THE VOTER APPROVED TAX FOR 2012 MAY BE HIGHER THAN THE PROPOSED AMOUNT SHOWN ON THIS NOTICE. 358.85 470.83 344.95 446.24 DISTRICT EDUCATION CENTER 2520 EAST 12TH AVE NORTH ST. PAUL, MN 55109 DECEMBER 13, 2011 7:00 PM 54.56 60.41 49.27 0.00 0.00 56.57 0.00 0.00 2,866.00 2,952.00 3.0% Attachment 5 Packet Page Number 10 of 10