HomeMy WebLinkAbout2009 08-31 City Council Manager Workshop PacketAGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
5:30 P.M. Monday, August 31, 2009
Council Chambers, City Hall
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
1. Overview of 2010 Budget — General Levy
E. NEW BUSINESS
F. ADJOURNMENT
THIS PAGE IS INTENTIONALLY LEFT BLAND
Workshop Agenda Item D1
WORK SESSION AGENDA REPORT
TO: City Manager, Jim Antonen
FROM: Charles Ahl, Assistant City Manager /Public Works Director
SUBJECT: 2010 Budget -Levy Options
1. Zero Based Levy Option
2. Levy Limit Option
3. Unallotment Levy Option
4. Unmet Needs
DATE: August 27, 2009
INTRODUCTION
The City Council will be receiving a presentation on the 2010 Budget on the options available for
considering in setting the maximum levy for taxes to property in 2010. We have prepared three
options for consideration by the Council:
1. An option where the levy increase for operations is 0.0 %.
2. An option where the levy is increased to the maximum allowed by the Department of Revenue
under the levy limit statute.
3. An option where the levy is increased to the maximum by levy limit, plus, a special levy is
pursued to allow the City to recover the 2008 Unallotment of Market Value Homestead Credit
(MVHC) funds along with 50% of the 2009 unallotment of MVHC.
BACKGROUND
Outlook for 2010 Budget
The City Council is required to designate the maximum levy that they are considering for the 2010
budget before September 15, 2009. This amount is designated to Ramsey County for inclusion in the
property tax notice statements that are mailed to property owners. This notice also includes the notice
that a Truth in Taxation Hearing is to be held.
Options to Consider to Address 2010 Budget Issues
Attached are three summary pages indicating the range of options available for council consideration:
Zero Based Levy Option
This option was prepared assuming that there would be no increase in taxes to the General
Fund in 2010. The staff prepared draft budgets based upon this scenario. The outcome would
result in ten positions within the City remaining unfilled [retirements and vacancies would not
be filled, but no layoffs would be required]. These positions include 2 in the Police Department,
4 in Public Works, 2 in Parks /Recreation area. 1 in Information Technology and 1 in Building
Maintenance at MCC. Additionally, the demonstrated need to add firefighter paramedics would
not be met, along with cuts to animal control, squad car replacement, a delay in replacement of
a fire truck, and other impacts that are shown in the attached listing of Unmet Needs. The
largest impact is on the programs for Parks and Recreation, which have been diminished in
past years, and due to retirements will be down from a high of 7 employees to a proposed 2.5
employees assigned to these programs. The needs are estimated by the staff at over
$2,100,000. The average residential property in Maplewood has seen a decrease in the
taxable value, which if all taxing agencies have no change in their levy will result in a $90 to
$112 reduction in property taxes in 2010.
Packet Page Number 3 of 10
Workshop Agenda Item D1
BUDGET REPORT
PAGE TWO
Levy Limit Option
The City is mandated to keep their levy at a minimal increase based upon state legislation.
This option considers raising the levy up to the maximum allowed by that statute. In 2009, the
City was allowed to raise the levy by 3.9 %, but the Council decided to reduce that amount to
2.1 This means that although the 2010 levy increase is under 1 % at 0.83% increase, the
base is higher and funds are still available. An increase of 3.8% is allowed under this scenario
and would generate an increase of $591,045 over the 2009 levy. Under this scenario, the
median Maplewood home would still see a decrease in their property taxes of $10 -$25
annually. The increase in city taxes would be borne by a higher percentage by commercial —
industrial- apartment properties, because those properties have seen a small increase or very
minor decrease in the average property values.
This scenario would allow the priority items as shown on the Unmet needs list to be addressed,
including the filling of two vacancies within the Police Department, adding two firefighter
paramedics to the Fire Department, re- establishment of 2.5 employees to Recreation and
Parks Administration, codification of the City Code, maintenance of the Animal Control services
and filling of one of the three vacant Public Works maintenance positions.
Unallotment Levy Option
This option proposes that the City pursue a special levy to refund the budget for the 2008
Unallotment of MVHC of $244,473 and 50% of the 2009 Unallotment of MVHC of $257,432.
This would add $501,905 to the overall levy for 2010 of funds that the state of Minnesota has
used to balance their budget out of the Maplewood levy from these years. It should be noted
that the second half (50 %) of the 2009 unallotment has not technically been eliminated
because payment is not scheduled to be made until December 2009, and thus, a special levy
cannot be designated at this time. This scenario would propose to move further down the
Unmet Needs list to use the funds as designated, although City Council input and prioritization
of this list should be debated during the next 2 -3 months of budget discussions.
The impact of this option of the median Maplewood home would be an increase of $40 -$55
annually, or about $445 per month in City taxes.
Recommendation
The action before the City Council on September 14, 2009 will be to adopt a resolution selecting the
maximum levy increase for 2009, which can range from 0.0% to 3.8% with a provision to either pursue
or deny the option of a special levy for some or all of the unalloted funds.
It is recommended that the City Council receive and discuss the various approaches to the 2010
budget as noted. No action is required at this time.
Attachments:
1.
zero Based Levy Option
2.
Levy Limit Option
3.
Unallotment Levy Option
4.
Unmet Needs List
5.
Department of Revenue Levy Limit Notice
6.
Budget Calendar
Packet Page Number 4 of 10
Workshop Agenda Item D1
Attachment
2010 BUDGET -Zero Based Levy Option
TAX LEVY BY FUND
Operations:
General Fund
Community Center Operations Fund
Recreation Programs Fund
Operations Total
Capital Improvements:
C.I.P. Fund
F.T.R. Fund
Park Development Fund
Redevelopment Fund
Capital Improvements Total
2008
2009
2010
Levy
Levy
Levy
$11,644,525
11, 964, 580
12,159, 580
$230,000
300,000
220,000
$250,000
250,000
135,000
$12,124,525
$12,514,580
$12,514,580
$0
$0
$0
$0
$50,000
$50,000
$0
$0
$0
$0
$0
$0
$0
$50,000
$50,000
2010 Change
$195,000 1.7%
($80,000) - 34.8%
($115,000) - 46.0%
$0 0.0%
$0
N/A
$0
N/A
$0
N/A
$0
N/A
$0
N/A
$0
0.0 °l
Debt Service:
Debt Service Fund
Totals -All Funds
$3,421,925 $3,311,655 $3,311,655
$15,546,450 $15,876,235 $15,876,235
$0 0.0%
$0 0.0%
Packet Page Number 5 of 10
Workshop Agenda Item D1
Attachment
Operations:
General Fund
Community Center Operations Fund
Recreation Programs Fund
Operations Total
Capital Improvements:
C.I.P. Fund
F.T.R. Fund
Park Development Fund
Redevelopment Fund
Capital Improvements Total
Debt Service:
Debt Service Fund
Totals -All Funds
2010 BUDGET - Levy Limit Option
TAX LEVY BY FUND
2008
2009
2010
Levy
Levy
Levy
$11,644,525
11, 964, 580
12, 540, 364
$230,000
300,000
220,000
$250,000
250,000
235,000
$12,124,525
$12,514,580
$12,995,364
$0
$0
$0
$0
$50,000
$50,000
$0
$0
$0
$0
$0
$0
$0
$50,000
$50,000
2010 Change
$575,784
($80,000)
($15,000)
$480,784
4.9%
- 34.8%
-6.0%
4.0%
$0
$0
$0
$0
$0
$480,784
$3,421,925 $3,311,655 $3,421,925 $110,270
$15,546,450 $15,876,235 $16,467,289 $591,054
N/A
N/A
N/A
N/A
N/A
3.2%
3.8%
Packet Page Number 6 of 10
Workshop Agenda Item D1
Attachment
2010 BUDGET - Unallotment Levy Option
TAX LEVY BY FUND
Operations:
General Fund
Community Center Operations Fund
Recreation Programs Fund
Operations Total
Capital Improvements:
C.I.P. Fund
F.T.R. Fund
Park Development Fund
Redevelopment Fund
Capital Improvements Total
Debt Service:
Debt Service Fund
Special Levy:
2008 Unallotment
2009 Unallotment - 50%
Totals -All Funds
2008
2009
2010
2010 Change
Levy
Levy
Levy
Amount
Percent
$11,644,525
11,964,580
12,540,364
$575,784
4.9%
$230,000
300,000
220,000
($80,000)
- 34.8%
$250,000
250,000
235,000
($15,000)
-6.0%
$12,124,525
$12,514,580
$12,995,364
$480,784
4.0%
$0
$0
$0
$0
N/A
$0
$50,000
$50,000
$0
N/A
$0
$0
$0
$0
N/A
$0
$0
$0
$0
N/A
$0
$50,000
$50,000
$0
N/A
$12,124,525
$12,564,580
$13,045,364
$480,784
4.0 °l
$3,421,925
$3,311,655
$3,421,925
$110,270
3.2%
$0
$0
$244,473
$244,473
N/A
$0
$0
$257,432
$257,432
N/A
$15,546,450
$15,876,235
$16,969,194
$1,092,959
7.0%
Packet Page Number 7 of 10
Workshop Agenda Item D1
Attachment
2010 BUDGET
UNMET NEEDS
DESCRIPTION Department Cost Cumulative $$
1
2 unfilled police officers
Police
$105,000
$105,000
2
2 new Firefighter- paramedics
Fire
$58,580
$163,580
3
Re- establish Park /Rec
Comm Dev /Parks
$250,000
$413,580
4
Codify City Code
Citizen Sery
$30,000
$443,580
5
Animal Control
Police
$26,850
$470,430
6
Refill Employee in Pub Wks
Public Works
$75,000
$545,430
Refill Employee in Pub Wks
Public Works
$75,000
$620,430
Refill Employee in Pub Wks
Public Works
$75,000
$695,430
7
Squad Car Replacement
Police
$26,000
$721,430
Squad Car Replacement
Police
$26,000
$747,430
Squad Car Replacement
Police
$26,000
$773,430
Squad Car Replacement
Police
$26,000
$799,430
Squad Car Replacement
Police
$26,000
$825,430
8
Raises -Trav - Train City Council
Legislative
$10,000
$1,380,430
9
CATV Staff Needs
Administration
$20,000
$1,800,430
10
Establish Contingency Fund
Administration
$200,000
$1,370,430
11
Seal Coating Program
Public Works
$150,000
$1,015,430
12
Refill IT Tech
IT
$45,000
$1,125,430
13
Park Replacement Funding
Comm Dev /Parks
$150,000
$1,530,430
14
MCC Bldg Replace Fund
MCC
$250,000
$1,780,430
15
Add 4th of July Celeb
Citizen Sery
$15,000
$865,430
16
Emerald Ash Borer Prog
Comm Dev /Parks
$25,000
$850,430
17
City Council Chambers Upgrades
Legislative
$100,000
$1,900,430
18
Refill Bldg Maint Employee
MCC
$65,000
$1,080,430
19
Refill Front Desk Reception
Citizen Sery
$45,000
$1,170,430
20
Redevelopment Fund
Comm Dev /Parks
$200,000
$2,100,430
Packet Page Number 8 of 10
Workshop Agenda Item D1
Attachment
MINNESOTA- REVENUE
Payable 2010 Final Overall Levy Limitation .Notice
MAPLEWOOD 8118/2009
FINANCE DIRECTOR (CLERK)
CITY HALL
1830 E COUNTY RD B
MAPLEWOOD, MN 55109
The following is a listing of the factors used in determining your city's payable 2010 overall levy limitation.
1. PAYBALE 2009 ADJUSTED LEVY LIMIT BASE
2. INFLATION ADJUSTMENT (0.8337 %)
3A. 2007 HOUSEHOLD POPULATION
3B. 2008 HOUSEHOLD POPULATION
3C. 50 PERCENT OF HOUSEHOLD INCREASE ((3B - 3A) x.5)
3D. HOUSEHOLD ADJUSTMENT FACTOR - GREATER OF I OR (1 + 3C /3A)
4A. PAYABLE 2008 TOTAL TAXABLE MARKET VALUE
4B. PAYABLE 2009 MARKET VALUE - NEW INDUSTRIAL CONSTRUCT
4C. PAYABLE 2009 MARKET VALUE - NEW COMMERCIAL CONSTRUCT
4D. PAYABLE 2009 MARKET VALUE - NEW C/I CONSTRUCT (413 + 4C)
4E. 50 PERCENT OF MARKET VALUE OF NEW C/I CONSTRUCT (41) x.5)
4F. NEW C/I ADJUSTMENT FACTOR - GREATER OF I OR (1 + 4E /4A)
5, PAYBALE 2010 ADJUSTED LEVY LIMIT BASE (I x 2 x 3D x 4F)
f
6A. 2010 CERTIFIED LOCAL GOVERNMENT AID
6B. 2410 ESTIMIATED TACONTIE AIDS
6C. 2010 ESTIMATED WIND ENERGY PRODUCTION TAX.
6D. 2010 CERTIFIED UTILITY VALUATION TRANSITION AID
6E. 2010 TOTAL CITY AID (6A + 6B + 6C + 6D)
7. PAYABLE 2410 FINAL OVERALL LEVY LIMIT (5 - 6E)
INNOWN
1.008337
14,818
14,890
36
1.002429
11
"s 1t
16,467,289
0
0
0
0
0
16,467,289
Property Tax Division 7101: 651- 556 -6095
Mail Station 3340 Fax: 651- 556 -3128
St. Paul, MN 55146 -3340 =, Call 711 for Minnesota
An equal opportunity employer Packet Page Number 9 of 10
Workshop Agenda Item Q1
Attachment
2010 Budget Calendar
Budget instructions provided to Dept Heads July 13
Wage information available July 16
Department Requests Due (no late submittals, please!)
• Public Works August 14
• Police and Fire August 17
• Finance / Comm Development -Parks August 18
• Admin / Citizen Services August 19
Finance / Admin — First Review of 2010 Budget Summary August 25
City Manager Review Meetings August 26 -28
City Council Work Session Budget Review August 31
City Council adopts Maximum Levy Resolution September 14
Department Budget Presentations
• Police / Fire
September 28
• Public Works / Comm Dev -Parks
October 5
• Admin / Finance
October 12
• Citizen Services
October 26
• Overall Summary of 2010 Budget
November 2
City Council adopts 2010 Budget and Calls Public Hearing
Truth in Taxation Hearing
November 23
December 7
Levy Certification Due to Ramsey County December 28
Packet Page Number 10 of 10