HomeMy WebLinkAbout2003 12-01 City Council Special Meeting PacketAGENDA
SPECIAL MEETING
MAPLEWOOD CITY COUNCIL
7:00 P.M. Monday, December 1, 2003
Council Chambers, Municipal Building
Meeting No. 03-29
A. CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL
D. APPROVAL OF AGENDA
E. PUBLIC HEARINGS
1. Proposed 2004 Budget and Tax Levy
G. VISITOR PRESENTATIONS
H. COUNCIL PRESENTATIONS
I. ADMINISTRATIVE PRESENTATIONS
J. ADJOURNMENT
Sign language interpreters for hearing impaired persons are available for public hearings upon request. The request for this service
must be made at least 96 hours in advance. Please call the City Clerk's Office at (651) 249-2001 to make arrangements. Assisted
Listening Devices are also available. Please check with the City Clerk for availability.
RULES OF CIVILITYFOR OUR COMMUNITY
Following are some rules of'civility the City of'Maplewood expects of'everyone appearing at Council Meetings -elected officials, staff'
and citizens. It is hoped that by following these simple rules, everyone s opinions can be heard and understood in a reasonable
manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles:
Show respect for each other actively listen to one another keep emotions in check and use respectful language.
AGENDA NO.
AGENDA REPORT
TO: City Manager
FROM: Finance Director
RE: PUBLIC HEARING ON PROPOSED 2004 BUDGET AND TAX LEVY
DATE: November 25, 2003
A public hearing on the proposed property taxes and budget for 2004 has been scheduled
for December 1 at 7:00 p.m. in the Council Chambers. At the beginning of the hearing a
video presentation of the proposed budget will be shown. Then citizen comments will be
received. The public hearing can be continued on December 8 if additional time is needed.
On September 4 the City Council increased the General Fund tax levy by $4,970 in the
proposed budget: to provide a larger reserve for unexpected events. The tax levy included in
the proposed budget was $4,970 under the state imposed levy limit.
On November 24 the City Council discussed the following additional changes to the
proposed General Fund budget:
1. Decreased expenditures by $37,210 due to a lower required contribution to the
firefighters pension plan.
2. Increased expenditures by $14,000 for employee safety training.
3. Increased expenditures by $93,000 for repair of fire station roofs.
Attached is a copy of the public hearing notice that was published. Also attached is a
handout that will be distributed to citizens who attend the hearing. Page A-4 is a listing of
property tax changes on homes with market values from $70,000 to $200,000. If a person
thinks their property is incorrectly assessed, the phone number for the Ramsey County
Assessor's office is 651-266-2000.
State law requires that cities adopt their 2004 budget and property tax levy at a subsequent
public hearing. Therefore, another public hearing has been scheduled for December 8 at
7:00 p.m. in the Council Chambers. The date, time and place for this hearing must be
announced prior to adjournment of the public hearing on December 1.
P\agn\2004budgethearing 1
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 2004.
SPENDING: The total budget amounts below compare the city's 2003 total actual budget with the
amount the city proposes to spend in 2004.
2003 Total
Actual Budget
X38,829,190
Proposed 2004
Budget
X31,483,340
Change From
2003 - 2004
-18.9%
TAXES: The property tax amounts below compare that portion of the current budget levied in
property taxes in the city of Maplewood for 2003 with the property taxes the city proposes to collect in
2004.
2003
Property Taxes
X11,927,880
Proposed 2004
Property Taxes
X12,831,520
Change from
2003 - 2004
+7.6%
LOCAL TAX RATE COMPARISON: The following compares the city's current local tax rate, the
city's tax rate for 2004 if no tax levy increase is adopted, and the city's proposed tax rate for 2004.
2003 2004 Tax Rate if 2004 Proposed
Tax Rate NO Lew Increase Tax Rate
36.319% 32.492% 35.755%
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 2004 property taxes. The hearing will be held on:
Monday, December 1, at 7:00 p.m.
City Council Chambers
Maplewood City Hall
1830 East County Road B
Maplewood
If the discussion of the budget cannot be completed, a time and place for continuing the discussion will
be announced at the hearing. You are also invited to send your written comments to:
Finance Director, City of Maplewood, 1830 East County Road B
Maplewood, MN 55109
P\word\mi sc\H earingNotic e
CITY OF MAPLEWOOD
2004 PROPOSED PROPERTY TAXES
AND
2004 PROPOSED BUDGET
PUBLIC HEARING
DECEMBER 1, 2003
P:AFINANCE\WORD~BUDDOC~BDGTFiEAR.DOC
HOW YOUR PROPERTY TAXES ARE DETERMINED
BOX L BOX 4
Total
Proposed Local Assessor's
Budget Market Value
-minus x times
BOX Z BOX S
All Non-Property State
Tax Revenue, eg: Mandated
* State Aid Class Rates
* Fees, Etc.
= equals =equals
BOX 3 BOX ()
Property Tax divided by Total
Revenue Needed "Tax Capacity"
(Levy) (Formerly Assessed Value)
= equals
BOX 7
Property
Tax
Rate
("Tax Capacity" Rate)
YOUR PROPERTY TAX =
Your Property's Market Value X Class Rate(s) X "Tax Capacity "Rate
Source: "Understanding Your Property Taxes. 1994 Edition." Minnesota Taxpayers Association, p. 6
P:AFINANCE\WORD~BUDDOC~BDGTFiEAR.DOC ~_r~
FORMULA FOR 2004 PROPERTY TAXES
Example of tax calculation for a home using the proposed 2004 tax rate. Tax rate is for a
home in ISD 622 and the Metro Watershed.
Step 1 -Calculate Tax Capacity:
MARKET STATE HOMESTEAD TAX
VALUE X FORMULA = CAPACITY
$156,000 $156,000 X .01 = $1,560
Step 2 -Calculate Tax based on Tax Capacity:
TAX TAX PROPERTY
CAPACITY X RATE = TAX
$1,560 1 17.045 $1,825.90
Step 3 -Calculate Tax based on Market Value:
MARKET TAX TAX
VALUE X RATE = CAPACITY
$156,000 0.19197 $299.47
Step 4 -Calculate Total Tax:
NET TAX BASED TAXES BASED TOTAL
ON TAX CAPACITY + ON MARKET VALUE = TAX
$1,825.90 $299.47 $2,125.37
Step 5 -Calculate Homestead Credit:
MARKET HOMESTEAD
VALUE X FORMULA = CREDIT
$156,000 $76,000 X .004 $304.00
$80,000 X .009 -72.00
$232.00
Step 6 -Deduct Homestead Credit:
TOTAL HOMESTEAD NET
TAX o CREDIT = TAXES
$2,125.37 $232.00 $1,893.37
P:\FINANCE\WORD\BUDDOC\BDGTHEAR.DOC ~-~
ESTIMATED 2004 CITY PROPERTY TAX CHANGES
TAX RATE CHANGES
Payable 2003
Local Tax Rate Estimated
Payable 2003
Local Tax Rate
Percent
Chi
Tax rate on tax capacity
Tax rate on market value for open
space and fire safety bonds 36.319%
0.02946% 35.755%
0.02283% -1.6%
-22.5%
PROPERTY TAX CHANGES ON HOMES
Estimated
Market
Value *
Tax
Capacity Tax Before
Homestead
Credit
Increase
Amount Increase
(Decrease)
Percent
$ 70,000 $ 700 $266 $ 21 8.6%
100,000 1,000 381 31 8.9%
156,000** 1,560 594 47 8.6%
200,000 2,000 761 59 8.4%
*The values listed for 2004 are 12% more than for 2003, which was the average change according
to the Ramsey County Assessor's Office.
**Median value home in Maplewood
P:\FINANCE\W O RD\BU DDOC\B DGTH EAR. DOC A-4
MAPLEWOOD
HOMEOWNER
COSTS FOR SERVICES - 2004
Service Monthly
Bill
Rubbish removal $20.03
Phone service $24.00
Cable television $44.00
City property taxes $49.50*
*Breakdown of city taxes on median value home:
Police protection $15.23
Debt service on bond issues $10.10
Parks and recreation $5.24
Public works $5.11
Executive $4.66
Fire protection $4.00
Community development $2.63
All other services $2.53
P:\FINANCE\W O RD\BU DDOC\B DGTH EAR. DOC ~- c
PROPERTY 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 several ways as follows:
;.~ at post offices, libraries, and most banks;
;.~ by calling the Minnesota Department of Revenue at 651-296-3781;
~ on the Internet at http://www.taxes.state.mn.us; or
~ by writing to:
Minnesota Tax Forms
Mail Station 5510
St. Paul, MN 55146-5510
P:\FINANCE\W O RD\BU DDOC\B DGTH EAR. DOC ~- G
TAX LEVY FOR 2004 U P 7.5%
P:\FINANCE\WORD\BUDDOC\BDGTHEAR.DOC ~- /
PROPOSED 2004 TAX LEVY APPROVED ON 9-4-03
2003 2004 Change
Levv Levv Amount Percent
General Fund:
Gross levy $8,942,250 $9,903,320 $961,070 10.7%
Debt Service Fund:
Gross levy $2,191,930 $2,499,200 $307,270 14.0%
C.I.P. Fund:
Gross levy $373,700 $0 ($373,700) -100.0%
Community Center Operations Fund:
Gross levy $75,000 $181,000 $106,000 141.3%
F.T.R. Fund:
Gross levy $90,000 $0 ($90,000) -100.0%
Housing Replacement Fund:
Gross levy $50,000 $0 ($50,000) N/A
Park Development Fund:
Gross levy $205,000 $0 ($205,000) -100.0%
Recreation Programs Fund:
Gross levy $0 $248,000 $248,000 N/A
Totals-All Funds:
Gross levy $11,927,880 $12,831,520 $903,640 7.6%
Levv Limit:
Gross levy 11,927,880 12,831,520 $903,640 7.6%
Less debt service levy (2,191,930) (2,499,200) ($307,270) 14.0%
Less PERA levy (23,105) (24,722) ($1,617) 7.0%
Net levy subject to limit 9,712,845 10,307,598 $594,753 6.1
Levy limit 9,712,847 10,307,598 $594,751 6.1
Amount over (under) limit (2) 0 $2 -100.0%
P:\FINANCE\W O RD\BU DDOC\B DGTH EAR. DOC ~-
THE FOLLOWING PAGES
ARE AN EXCERPT FROM
THE PROPOSED
2004 BUDGET
P:\FINANCE\W O RD\BU DDOC\B DGTH EAR. DOC
August 2003
Honorable Mayor and Council Members:
In compliance with State Statutes, I am pleased to transmit the proposed 2004 Budget for the City of
Maplewood. The major objectives of the 2004 Budget are designed to help the Council accomplish the
goals and objectives established in June 2002 and February 2003. Much of the budget is concentrated on
maintaining the "high quality and cost effective public services" provided to the residents of Maplewood.
Changes in the budget reflect the attention and emphasis desired by the Council to meet the changing
needs of the community. The most noteworthy objectives include limiting the General Fund expenditure
increase to the inflation rate with an adjustment for city growth, converting the format of the operating
budget from aline-item budget to a program and performance budget with a mission statement and
performance effectiveness indicators for each program and expanding storm water management activities
with financing by an environmental utility charge. The aforementioned objectives and many others (which are
listed on the following pages) are part of a larger all encompassing goal of working effectively and efficiently.
The Finance Director and his staff using input from the department heads prepared this document. It is in a
format similar to the 2003 Budget, which received the Award for Distinguished Budget Presentation from
the Government Finance Officers Association of the United States and Canada. It is intended that the
format of this document and the information contained within it will clearly communicate the City's 2004
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 2004 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 2004. The Debt Service section focus is on the scheduled bond issue
principal and interest payments due in 2004.
Conserving the financial resources of the City is more important than ever. The budgeting function is the
primary tool the Council has to make sure the City's limited resources are wisely utilized and to establish
department objectives for the coming year. We continue with the combined objectives of ensuring
Maplewood is 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 2004 Budget will be appreciated. I would
also like to express my appreciation to all City personnel who assisted in the preparation of the 2004
Budget.
Sincerely,
Richard Fursman
City Manager
OFFICE OF THE CITY MANAGER 651-770-4524
CITY OF MAPLEWOOD 1 H3O EAST COUNTY ROAD B MAPLEWOOD, MN 55109
1-5
BUDGET OVERVIEW
During preparation of the 2004 Budget, city staff focused on the long-
MAJOR range goals established by the City Council and management staff at
INITIATIVES retreats in June 2002 and February 2003. The goals were established
after issues and opportunities were identified and prioritized. There are
two new major initiatives included in the 2004 Budget based on these
long-range goals. The major initiatives are as follows:
1. Converted the format of the operating budget from aline-item
budget to a program and performance budget with a mission
statement and performance effectiveness indicators for each
program.
2. Planned expansion of storm water management activities with
financing by an environmental utility charge
One of the City's long-range goals is to develop a strong public works
LONG-RANGE infrastructure (streets, storm sewers, etc.). The proposed new
GOALS environmental utility charge will produce annual revenues of $1.1 million
that will finance improvements for and maintenance of the storm sewer
system. Approximately $844,000 of these new revenues will be used to
finance storm water management activities that were previously
financed by the General Fund.
Another long-range goal is to improve the city's parks and trail system.
In order to accomplish this the budget for the Park Development Fund is
$454,070. The two projects that are included in the five-year Capital
Improvement Plan for 2004 will be financed by the budget. These
projects are the Sterling Oaks Park and Priory Preserve improvements.
To address the goal to redevelop residential and commercial properties,
the Housing Replacement Fund has been renamed the Redevelopment
Fund and the budget includes planned expenditures of $200,640 for
undesignated projects. Financing for the 2004 Budget is from revenue
from the sale of the Larpenteur and Van Dyke properties.
The City's tax levy for 2004 is $12,826,500 which is 7.5% higher than
TAX LEVY 2003. This is despite a budget preparation process that involves close
FOR 2004 scrutiny of proposed expenditures and a constant search for non-tax
7.5% revenues.
HIGHER
The tax levy increase is $898,670. About two-thirds of the increase
($591,400) represents the tax levy to recoup 60% of the state aid cuts
that the Legislature enacted for 2004. (Cities were allowed to levy only
60% of the aid cuts.) The remainder of the increase is for debt service
and is due to higher principal and interest payments on bond issues.
Approximately 81 % of the 2004 tax levy is for operations and the
remaining levy (19%) is for debt service costs on bond issues.
1-6
The tax bill adopted by the legislature in 2003 extended property tax levy
STATE limits for one year. The limit for 2004 is based on the tax levy for 2003
TAX LEVY with an adjustment for 60% of the state aid cuts. There is no adjustment
LIMIT LAW for growth and inflation. The 2004 Budget includes a property tax levy
that is equal to the levy limit.
CITY
RECEIVES
26.2% OF
TAXES
a
~;
2004
EXPENDITURES
BUDGET
$31.5 MILLION
In 2003 the City received 26.2% of the property taxes on property within
the City. The following illustration indicates the allocation of property tax
dollars by government type.
5.5% 26.2% 32.4% 35.9%
Other City Schools County
It should be noted that the above data is for property in Maplewood that
is located within School District 622.
Expenditures in the 2004 Budget are 18.9% less than 2003. The
breakdown by section is listed in the following table:
REVENUES AND EXPENDITURES BY SECTION
Comparison of 2003 and 2004 Budget
REVENUES EXPENDITURES
Amount Change Amount Change
Operations $25,241,850 -6.3% $25,680,600 -9.6%
Capitallmprovements 1,172,470 -65.2% 2,347,120 -67.4%
Debt Service 3,152,440 18.3% 3,455,620 7.7%
Totals $29,566,760 -10.3% $31,483,340 -18.9%
The difference between total revenues and expenditures will be financed
by the use of surplus fund balances and bond issues.
1-7
OPERATING BUDGET
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 programs for each department. Budget performance
is measured based on the accomplishment of the objectives for 2004
listed for each department and by the performance effectiveness
indicators listed for each program.
Operating budget revenues for 2004 are 6.3% less than 2003. The
OPERATING primary reason for this is due to elimination of the Employee Benefits
BUDGET Fund from the budget. It has been eliminated from the budget because
REVENUES the fund duplicates the benefit costs that are included in the Personal
DOWN 6.3% Services category in each program budget. It has also been eliminated
because the Employee Benefits Fund does not account for a program.
Operating budget revenues for 2004 are 9% higher when the Employee
Benefits Fund is excluded from 2003.
AMBULANCE
RATE
INCREASE
The revenue categories with the largest increase are licenses/permits
and the charges for service category. Most of the increase in
licenses/permits is due to a higher volume of building permits that is
anticipated as a result of the 80-acre Legacy Village development.
Charges for service is higher due to the new environmental utility charge
and increases in the recycling and sanitary sewer utility rates.
Revenues in the charges for service category include a planned
increase in ambulance rates effective January 1, 2004 as indicated in
the following table.
AMBULANCE RATE INCREASES
Increase
2003 2004 Amount Percent
Non-transport
Resident $225.00 $270.00 $45.00 20.0%
Non-resident 225.00 290.00 65.00 28.9
Basic Life Support:
Resident 635.00 710.00 75.00 11.8
Non-resident 665.00 740.00 75.00 11.3
Advanced Life Support 1:
Resident 870.00 975.00 105.00 12.1
Non-resident 910.00 1,020.00 110.00 12.1
Advanced Life Support 2:
Resident 975.00 1,100.00 125.00 12.8
Non-resident 1,025.00 1,155.00 130.00 12.7
Charge per mile 11.30 12.46 1.16 10.3
1-8
The 2004 ambulance rates are based upon the average 2003
ambulance rates charged by other providers as in past years. However,
there is an additional 3% increase to adjust the average to an
approximate rate that other providers will be charging in 2004.
Ambulance service revenues for 2004 are projected to be $1,355,260
which is $217,250 and 19.1 % higher than the 2003 budget.
Operating budget revenues for 2004 produced by utility service charges
UTILITY RATES will total $5,012,680, which represents 19.9% of the total operating
UP 5.3% budget revenues. Utility service charges consist of sewer service
charges ($3,618,040), environmental utility charges ($1,093,290) and
recycling charges ($301,350). Sewer rates need to be increased by
4.8% to finance the 2004 Budget for the Sanitary Sewer Fund and
increase the fund working capital. Most of the revenues from the sewer
rates finance the Metropolitan Council sewage treatment charges to
Maplewood which will be 61.4% of the operating expenses for the
Sanitary Sewer Fund in 2004. The sewage treatment charges for 2004
are anticipated to be $2,156,740 which is $78,050 more than the 2003
budget. The Metropolitan Council sewage treatment rates will increase
by approximately 3.1 % but this will be offset by variations in annual
sewage flow from Maplewood. The new environmental utility charge will
finance current and expanded storm water management activities.
Recycling charges will increase due to (a) an allocation of administrative
costs totaling $34,000 to the recycling program, (b) an allocation of
wages and benefits for the environmental health officer to the recycling
program, and (c) an increase in recycling costs.
The following table summarizes the proposed utility rate changes for an
average home.
UTILITY RATES
IMPACT ON AN AVERAGE HOME
Quarterly Charge Increase (Decrease)
2003 2004 Amount Percent
Sewer service* $50.10 $52.50 $2.40 4.8%
Environmental charge 0.00 5.25 5.25 N/A
Recycling charge 4.65 5.40 0.75 16.1
Total $54.75 $63.15 $8.45 15.3%
*Rate per 1,000 gals $2.50 $2.62 $0.12 4.8%
1-9
Operating budget expenditures for 2004 are $25.7 million, which is 9.6%
OPERATING lower than 2003. The primary reason for this is due to elimination of the
BUDGET Employee Benefits Fund from the budget. It has been eliminated from
EXPENDITURES the budget because the fund duplicates the benefit costs that are
DOWN included in the Personal Services category in each program budget. It
9.6% has also been eliminated because the Employee Benefits Fund does not
account for a program.
Another major change in the 2004 Budget is elimination of estimated
expenditures for contingencies. These expenditures totaled $504,820 in
six funds in the 2003 Budget. In the 2004 Budget the fund balances
have been increased to provide a reserve for contingencies.
Operating budget expenditures for 2004 are 7.1 % higher when the
Employee Benefits Fund and contingency expenditures are excluded
from 2003. Most of the increase is for wages and benefits as the 2003
budget amounts were based on the 2002 pay rates. This was because
the union contracts had not been settled when the 2003 Budget was
prepared.
Population growth and commercial development requires budget
increases in excess of the inflation rate in order to maintain the present
level of City services. The size of population increases is directly related
to the number of new housing units built. Commercial development can
be monitored based on the valuation of non-residential building permits.
For the past three years the amounts have been as follows:
DEMAND FOR CITY SERVICES BASED ON GROWTH
NON-
RESIDENTIAL GROWTH RESIDENTIAL
GROWTH
Valuation of
New Housing Percent Non-residential
YEAR Units Population Chan a Buildin Permits
2000 129 34,947 -2.3% $35,661,840
2001 293 35,080 0.4% $40,205,519
2002 191 35,600 1.5% $61,908,694
The population for 2000 is from the U.S. Census Bureau. The population
for 2001 and 2002 are estimates prepared by the Metropolitan Council.
The average annual population increase between 1990 and 2000 was
1.3%. If this rate of increase continues, the city's population in 2003 will
be 36,063 and in 2004 will be 36,531.
1-10
The number of full-time employees included in the 2004 Budget is 168.
-1 This is a decrease of one position. The changes in budgeted full-time
FULL-TIME positions are as follows:
EMPLOYEES
+1.00 Community Development Department - a building inspector
apprentice position has been added with financing by permit
revenues. This position was approved by the City Council on
November 13, 2002.
-1.00 Executive Department - a clerk-typist position has been
eliminated in the Deputy Registrar office. This position will be
replaced by two part-time positions.
-1.00 Police Department - aclerk-typist position has been eliminated
through attrition.
-1.00 Parks and Recreation Department - a building custodian
position has been eliminated at the community center to reduce
operating expenses.
+1.00 Public Works Department - a maintenance worker has been
added with financing by the Environmental Utility Fund.
Approximately 65% of the Operating Budget is accounted for in the
65% OF City's General Fund. Revenues projected for 2004 will be 4.5% higher
OPERATING than the 2003 Budget. Expenditures will be 2.9% higher in 2004 than the
BUDGET IN 2003 Budget. The 2004 Budget for the General Fund is a deficit budget
GENERAL as 2004 expenditures exceed revenues by $559,090. The deficit will be
FUND financed by using part of the surplus fund balance.
1-11
The following shows sources and uses of funds for the 2004 Budget
compared to the 2003 Budget:
Sources of funds:
Current property taxes
Other revenues
Fund balance
Tota I
Use of funds:
Expenditures
CHANGE
2003 2004 INCREASE OVER 2003
BUDGET BUDGET (DECREASE) BUDGET
$8,857,820 $9,370,480 $512,660
6,499,590 6,680,530
1,059,480 559,090
$16,416,890 $16,610,100
$16,145,220 $16,610,100
Net interiund transfers 271,670 0
Tota I
$16,416,890 $16,610,100
180,940
(500,390)
$193,210
$464,880
(271,670)
$193,210
5.8%
2.8%
(47.2%)
1.2%
2.9%
(100.0%)
1.2%
It has been common for the past several years to have a General Fund
deficit budget. Despite this practice the fund balance in the General
Fund has increased and has been maintained at an appropriate level.
This is because it is city budget policy to make conservative revenue
estimates and liberal expenditure estimates. Consequently, the General
Fund ending balance is usually much higher than budgeted and provides
a resource for financing the deficit in the annual budget.
The 4.5% increase in General Fund revenues amounts to $693,600. The
GENERAL FUND largest increases are in the current taxes and charges for service
REVENUES categories. The increase in current taxes is $512,660 and this partially
UP 4.5% offsets the $564,420 decrease in intergovernmental revenues. In 2004
current property taxes will be 58.4% of total revenues for the General
Fund compared to 57.7% of the revenues in 2003. The increase in
charges for service is $510,610 and almost half of this is for ambulance
fees. Other charges with large increases are administrative charges on
improvement projects which is up $166,580 and administrative charges
for utility funds which is up $98,410.
1-12
GENERAL FUND The 2004 Budget includes recommended expenditures that are 2.9%
EXPENDITURES higher than the 2003 Budget. The breakdown by department is as
UP 2.9% follows:
GENERAL FUND EXPENDITURES BY DEPARTMENT
INCREASE % CHANGE
2004 OVER 2003 OVER 2003
BUDGET BUDGET BUDGET
Community Development $1,157,750 $129,480 12.6%
Executive 2,049,500 2,049,500 N/A
Finance 671,670 91,250 15.7%
Fire 1,758,880 177,400 11.2%
General Government 0 -2,579,720 -100.0%
Human Resource 312,240 24,450 8.5%
Legislative 125,590 125,590 N/A
Parks and Recreation 1,584,730 120,820 8.3%
Police 6,702,810 721,090 12.1%
Public Works 2,246,930 -394,980 -15.0%
Total expenditures $16,610,100 $464,880 2.9%
The largest increase is $2,049,500 in the Executive Department. This is
due to the elimination of the General Government Department and the
allocation of its budget to other departments but primarily to the
Executive Department. The Legislative Department is also new in 2004
and its budget previously was included in the General Government
Department.
On a per capita basis, General Fund expenditures will increase in 2004
by 1.6% as indicated in the following table:
GENERAL FUND EXPENDITURES PER CAPITA
2001 2002 2003 2004
ACTUAL ACTUAL BUDGET BUDGET
Expenditures
Population
Per capita expenditures
for General Fund
PERCENT CHANGES:
Percent change in
expenditures
Percent change in
population
Per capita expenditures
percent change
$13,995,173 $14,824,262 $16,145,220 $16,610,100
35,080 35,600 36,063 36,531
$399 $416 $448 $4551
5.4% 5.9% 8.9% 2.9%
0.4% 1.5% 1.3% 1.3%
5.0% 4.4% 7.6% 1.6%
1-13
Actual per capita expenditures for 2003 and 2004 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 2001 and 2002 indicated
GENERAL FUND that the fund balance should be 21.4% of the revenues to finance cash
BALANCE flow needs. The fund balance also needs to be large enough to finance
WILL BE unexpected expenditures as the contingency account has been
36.6% eliminated from the 2004 budget. Therefore, the budgeted 12-31-04 fund
OF BUDGET balance has been set at 36.6% of the 2004 budgeted revenues. This
should provide a sufficient balance to cover cash flow needs and
unexpected expenditures. Also, it is near the level that it was at in
October 1989 when the city's bond rating by Moody's Investors Services
was increased to its current level. The budgeted 12-31-03 fund balance
was 35.6% of the 2003 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 major
equipment purchases and construction projects costing in excess of
$50,000. All other capital outlay is financed within the Operating Budget.
The 2004 Budget implements the first year of the 2004-2008 Capital
Improvement Plan adopted by the City Council on June 9, 2003. This
five-year plan is updated annually through a comprehensive capital
needs planning process.
Revenues for 2004 in the Capital Improvements Budget are $1,172,470
CAPITAL and 65.2% less than 2003. This decrease is caused primarily by a
IMPROVEMENTS decrease in state street construction aid to finance improvement
REVENUES projects. Major revenue sources for the 2003 Capital Improvement
DOWN 65.2% Budget are tax increment revenues ($488,210) and miscellaneous
revenues ($684,260) which includes investment interest and park
availability charges.
The Capital Improvement Budget expenditures are down significantly
CAPITAL due to a change in the budget policy for public improvement projects. In
IMPROVEMENTS the past the budget included planned expenditures for public
EXPENDITURES improvement projects even though public hearings had not been held
DOWN 67.4% and the projects had not been approved by the City Council. Beginning
with the 2004 budget, planned expenditures for public improvement
projects will no longer be included unless the public hearings have been
held and the project has been approved by the City Council. The largest
projects planned for 2004 include construction of an addition to the
Public Works Building ($1,250,000), replacement of a fire truck
($371,350), development of the Sterling Oaks Park ($250,000) and
1-14
improvements to the Priory Preserve ($200,000). The impact of these
items on operating costs will not be significant. Total 2004 expenditures
are $2,347,120 and 67.4% less than 2003.
DEBT SERVICE BUDGET
This portion of the budget covers the payment of principal and interest
on the City's bonded indebtedness. Each bond issue has a separate
debt service sinking fund.
Revenues for 2004 are 18.3% more than 2003 primarily due to an
DEBT increase in property taxes. Major revenue sources, as in past years, are
SERVICE property taxes ($2,474,200), special assessments ($596,630), and
REVENUES interest on investments ($81,610).
UP 18.3%
Expenditures for 2004 are 7.7% more than 2003. The increase is due to
DEBT SERVICE higher scheduled principal and interest payments.
EXPENDITURES
UP 7.7% The anticipated new debt issues for 2003 total $10,647,000 to finance
public works improvements. At the end of 2004, general long-term net
debt payable will be $44,469,297 which is 20% more than projected for
the end of 2003.
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
WILL IMPACT since 1990. Average annual population increases between 1990 and
OPERATING 2000 were 1.3%. It is anticipated that population growth will accelerate in
BUDGET 2004 due to the 80-acre Legacy Village development.
In 2002 the City issued building permits with a total valuation of $96.6
million. In 2001 the City issued building permits with a total valuation of
$71.9 million. The Legacy Village development will have an estimated
value of $162 million.
Based on projections in the 2004-2008 Capital Improvement Plan, the
CAPITAL Capital Budget will range from $8.5 million to $15.3 million in 2005-2008.
IMPROVEMENT Major factors affecting the capital budgets will be (a) residential and
EXPENDITURES commercial growth and (b) the number of public improvement projects
IN that are approved for construction. Bond issues and capital notes to
2005-2008 finance the 2004-2008 Capital Improvement Plan total $36,294,500.
1-15
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
MAJOR OBJECTIVES
;.~ Establish department objectives and allocate financial resources to accomplish goals in
the city's strategic plans.
;.~ Convert the format of the operating budget from aline-item budget to a program and
performance budget with a mission statement and performance effectiveness indicators
for each program.
;.~ Limit the General Fund expenditure increase to the inflation rate with an adjustment for
city growth.
;.~ Levy property taxes for the Community Center Operations Fund to eliminate the working
capital deficit and to replace the transfer from the General Fund to more clearly indicate
the property tax subsidy for the center.
;.~ Levy property taxes for the Recreation Programs Fund to replace the transfer from the
General Fund to more clearly indicate the property tax subsidy for these programs.
;.~ Provide a General Fund budgeted ending fund balance equal to 36.6% of the budgeted
revenues to provide working capital to finance expenditures between the semi-annual
receipt of property tax and state aid revenue and to provide a reserve for emergencies.
;.~ Expand storm water management activities with financing by an environmental utility
charge.
;.~ Provide property tax revenue for the Debt Service budget to (a) pay principal and
interest on bond issues and (b) amortize projected debt service fund deficits.
a-i
2003 and 2004 BUDGET -ALL BUDGETARY FUNDS
Financing Sources and Expenditures
Bond Issue Proceeds
and Surplus Balances
15.1%
Financing Sources
2003 Budget - $38,8 Million
Capital
Improvements Debt Service
18.5% 8.3%
,~
Operations
73.2%
Expenditures by Category
2003 Budget - $38.8 Million
Bond Issue Proceeds
and Surplus Balances
6.1
Financing Sources
2004 Budget - $31.5 Million
Capital
Improvements Debt Service
7.4% 11.0%
Expenditures by Category
2004 Budget - $31.5 Million
2-2
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
REVENUE ASSUMPTIONS
Tax revenues consist of property taxes (current, delinquent, forfeited tax sales, tax increment,
and mobile home), charitable gambling taxes, and cable television franchise taxes. Current
property tax revenues account for most of the revenues in this category. Tax revenues included
in the budget are as follows:
2003 2004 Percent
Budget Budget Change
Operating Budget $9,215,130 $10,037,360 8.9%
Capital Improvement Budget 1,069,450 488,210 -54.3%
Debt Service Budget 2,170,020 2,474,200 14.0%
Totals $12,454,600 $12,999,770 4.4%
Property tax collections for 2004 are anticipated to be 99.8% of the amount levied.
Special assessments are charges against property (a) for capital improvements such as street
reconstruction and (b) for the collection of delinquent utility bills. Special assessment revenues
consist of the following amounts:
2003 2004 Percent
Budget Budget Change
Operating Budget $48,800 $47,140 -3.4%
Debt Service Budget 451,600 596,630 32.1%
Totals $500,400 $643,770 28.7%
Special assessment collections for 2004 will be 28.7% more than the 2003 Budget based on an
analysis of new rolls, scheduled installments and historical collection rates.
Business license fees are required to be paid annually in order to operate a business within the
City. Liquor license fees and general business licenses account for most of the revenue in this
category. Non-business license and permit fees are levied to finance the cost of inspecting and
regulating new construction. All license and permit revenues are in the Operating Budget. In
2003 they total $1,068,910 and in 2004 they will total $1,320,650. Building permit fees generate
most (49.5%) of the revenue in this category. Revenue estimates assume that rates for
business licenses and permits will be increased by an average of 1.6% to keep pace with the
2-3
projected inflation rate for 2004. Non-business license and permit fee revenue estimates are
based on the assumption that they will equal the average for 2000-2002.
Intergovernmental revenues are monies from other governments in the form of grants,
entitlements and shared revenues. Intergovernmental revenues consist of the following
amounts:
2003 2004 Percent
Budget Budget Change
Operating Budget $1,335,410 $719,840 -40.7%
Capital Improvement Budget 1,950,000 0 -100.0%
Totals $3,285,410 $719,840 -78.1
Two items account for most of these revenues: state local government aid (LGA) and street
construction state aid. For the year 2003, it originally was anticipated that LGA would be
$400,030. However, none will be received in 2003 and none are anticipated for 2004 due to
state fiscal problems. All LGA revenues are in the Operating Budget. Street construction state
aid is a portion of state gasoline and motor vehicle registration fees that are allocated based on
population and fiscal need. These revenues are in the Capital Improvement Budget. None is
anticipated in 2004 as the City will have used its allotment prior to 2004.
Charges for service consist of Community Center fees, recreation program fees, utility charges,
miscellaneous department fees, and ambulance charges. In 2003 they total $9,288,700 and in
2004 they will total $11,043,440. Revenues from service charges will be 18.9% more than the
2003 Budget due to (a) an increase in sewer and recycling billing rates, (b) an increase in
passport fees, (c) higher engineering fees, and (d) implementation of an environmental utility
charge.
Fines and penalties consist of (1) the City's share of fines collected by the County for court
actions, (2) false alarm fees and (3) revenue from drug forfeiture proceedings. All of these
revenues are in the Operating Budget. In 2003 they total $179,830 and in 2004 they will total
$180,260. Revenues from fines and penalties will be 0.2% more than budgeted for 2003 based
upon average actual collections for 2000-2002.
2-4
Miscellaneous revenues include interest on investments, internal service charges, park
availability charges, and water availability charges. Miscellaneous revenues consist of the
following amounts:
2003 2004 Percent
Budget Budget Change
Operating Budget $5,792,470 $1,893,160 -67.3%
Capital Improvement Budget 346,950 684,260 97.2%
Debt Service Budget 43,540 81,610 87.4%
Totals $6,182,960 $2,659,030 -56.9%
Internal service charges for employee benefits account for 58.6% of the miscellaneous
revenues budget for 2003 and 0% for 2004. This decrease is due to elimination of the
Employee Benefits Fund from the 2004 Budget for the reasons indicated in the Budget
Overview section.
a-s
ALL BUDGETARY FUNDS
REVENUE SUMMARY
w 35
c
0
30
25
20
15
10
^ Taxes
^ Special Assessments
^ Licenses/Permits
^ Intergovernmental
Charges for Services
^ Fines/Penalties
^ Miscellaneous
2-6
03 BUDGET 04 BUDGET
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
REVENUE SUMMARY -ALL BUDGETARY FUNDS
Total By Source
Taxes
Special Assessments
Licenses and Permits
Intergovernmental Revenue
Charges for Services
Fines and Penalties
Miscellaneous
PERCENT AMOUNT
2003 2004 OVER(UNDER) OVER(UNDER)
BUDGET BUDGET 2003 BUDGET 2003 BUDGET
$12,454,600 $12,999,770 4.4%
500,400 643,770 28.7%
1,068,910 1,320,650 23.6%
3,285,410 719,840 -78.1
9,288,700 11,043,440 18.9%
179,830 180,260 0.2%
6,182,960 2,659,030 -57.0%
$545,170
$143,370
$251,740
($2,565,570)
$1,754,740
$430
($3,523,930)
Totals
Total By Fund
Operating Budget:
Charitable Gambling Tax
Community Center
COPS More Grant
Dental Self-Insurance
East County Line Fire
Employee Benefits
Enhanced 911 Service
Environmental Utility
Fleet Management
General
Gladstone Fire District
Hazardous Materials
Information Technology
Law Enforcement Block Grant
Police Services Fund
Recreation Programs
Recycling Program
Redevelopment
Sanitary Sewer
Total Operating Budget
Capital Improvements Budget:
Capital Improvement Projects
Fire Safety Projects
Fire Truck Replacement
Historic Bruentrup Farm
Open Space
Park Development
Public Improvement Projects
Public Safety Dispatching Center
Public Works Building Addition
Sewer Lift Station No. 9
Street Construction State Aid
Tax Increment Economic Development District #1-4
Tax Increment Economic Development District #1-5
Tax Increment Housing District #1-1
Tax Increment Housing District #1-2
Tax Increment Housing District #1-3
Tax Increment Housing District #1-4
Tax Increment Housing District #1-5
Tax Increment Housing District #1-6
Water Availability Charge - No. St. Paul
Water Availability Charge - St. Paul
Total Capital Budget
Debt Service Budget:
Debt Service Funds
Grand Total
32,960,810 29,566,760 -10.3%
57,880 62,020 7.2%
2,146,600 2,072,040 -3.5%
0 0 N/A
0 0 N/A
0 0 N/A
3,761,310 0 -100.0%
26,330 24,710 -6.2%
0 1,106,960 N/A
947,230 748,720 -21.0%
15,357,410 16,051,010 4.5%
0 0 N/A
0 0 N/A
273,890 333,000 21.6%
16,770 0 -100.0%
0 4,980 N/A
546,320 785,330 43.7%
317,830 375,420 18.1
49,500 0 -100.0%
3,428,180 3,677,660 7.3%
26,929,250 25,241,850 -6.3%
370,340 5,490 -98.5%
0 0 N/A
113,280 25,060 -77.9%
0 0 N/A
0 9,560 N/A
460,860 568,650 23.4%
1,950,000 21,090 -98.9%
0 0 N/A
0 0 N/A
0 0 N/A
9,000 470 -94.8%
0 0 N/A
0 5,240 N/A
100,120 96,440 -3.7%
138,350 172,100 24.4%
35,710 43,480 21.8%
27,070 37,140 37.2%
22,470 33,480 49.0%
89,400 107,000 19.7%
1,980 2,700 36.4%
47,820 44,570 -6.8%
3,366,400 1,172,470 -65.2%
2,665,160 3,152,440 18.3%
$32,960,810 $29,566,760 -10.3%
($3,394,050)
2-7
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
REVENUE SOURCES AS PERCENT OF TOTAL
SOURCE
2003 PERCENT 2004 PERCENT
BUDGET OF TOTAL BUDGET OF TOTAL
Taxes $12,454,600 37.8% $12,999,770 44.0%
Special Assessments 500,400 1.5% 643,770 2.2%
Licenses and Permits 1,068,910 3.2% 1,320,650 4.5%
Intergovernmental Revenue 3,285,410 10.0% 719,840 2.4%
Charges for Services 9,288,700 28.2% 11,043,440 37.4%
Fines and Penalties 179,830 0.5% 180,260 0.6%
Miscellaneous 6,182,960 18.8% 2,659,030 9.0%
Totals $32,960,810 100.0% $29,566,760 100.0%
2-8
CITY OF MAPLEWOOD, MINNESOTA
2003 BUDGET
EXPENDITURE ASSUMPTIONS
Personnel costs will decrease by 14.8% over the 2003 Budget due to a budgeting
change for benefits. After adjusting for this change the actual costs will increase by 9.9%
due to cost-of-living salary adjustments, step increases within pay ranges, benefits cost
increases and changes in the number of employees. It is important to note that the 2003
budget for personnel costs was based on 2002 pay rates because union contracts were
not settled when the 2003 Budget was prepared.
Expenditures for materials and supplies will be 12.8% greater in 2004 primarily due to
inflation and equipment purchases necessary for the year.
Contractual services costs for 2004 will be 2.3% more than 2003 primarily due to
inflation.
Capital outlay and depreciation expenditures are anticipated to be 56.0% less than 2003
primarily due to lower expenditures in the Capital Improvements Budget. This is due to a
budget policy change for public improvement projects. Prior to the 2004 Budget the
anticipated expenditures for improvement projects were included in the budget before
the public hearing on the project was held. Beginning with the 2004 Budget, the
anticipated expenditures on public improvement projects will be added to the budget
after the public hearing is held.
Expenditures for debt service will be 9.1 % more in 2004 due to higher principal and
interest payments on bond issues.
The other charges category will be 40.5% less than 2003 primarily due to elimination of
estimated expenditures for contingencies. In the 2004 Budget the reserves for
contingencies are included in fund balances.
2-9
ALL BUDGETARY FUNDS
EXPENDITURE SUMMARY
w 45
c
0
40
35
30
25
20
15
10
5
0
Legislative
Executive
Debt Service
^Community Development
®General Government
Human Resource
Finance
Fire
Police
Public Works
Parks and Recreation
2-10
03 BUDGET 04 BUDGET
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
EXPENDITURE SUMMARY -ALL BUDGETARY FUNDS
PERCENT
2003 2004 OVER(UNDER)
Total By Department BUDGET BUDGET 2003 BUDGET
Community Development $1,674,690 $1,733,810 3.5%
Debt Service 3,333,170 3,617,310 8.5%
Executive 1,808,260 2,049,500 13.3%
Finance and Information Technology 971,170 1,144,550 17.9%
Fire 1,703,280 2,176,860 27.8%
General Government 4,700,330 0 -100.0
Human Resource 287,790 312,240 8.5%
Legislative 130,330 194,330 49.1
Parks and Recreation 5,085,780 4,910,880 -3.4
Police 6,035,810 6,736,830 11.6
Public Works 13,098,580 8,607,030 -34.3%
Totals 38,829,190 31,483,340 -18.9%
Total By Type
Personal Services 17,525,750 14,934,230 -14.8%
Commodities 1,279, 530 1,443,150 12.8
Contractual Services 6,835,640 6,992,450 2.3%
Capital Outlay and Depreciation 8,761,300 3,856,960 -56.0
Debt Service 3,270,260 3,568,340 9.1
Other Charges 1,156,710 688,210 -40.5%
Totals 38,829,190 31,483,340 -18.9%
Total By Fund
Operating Budget:
Charitable Gambling Tax 52,910 68,740 29.9%
Community Center 2,271,980 2,101,530 -7.5%
COPS More Grant 0 0 N/A
Dental Self-Insurance 0 0 N/A
East County Line Fire 0 0 N/A
Employee Benefits 3,936,290 0 -100.0
Enhanced 911 Service 37,000 24,720 -33.2%
Environmental Utility 0 925,590 N/A
Fleet Management 690,880 612,810 -11.3%
General 16,145,220 16,610,100 2.9%
Gladstone Fire District 0 0 N/A
Hazardous Materials 0 0 N/A
Information Technology 389,070 470,660 21.0%
Law Enforcement Block Grant 16,710 0 -100.0
Police Services Fund 380 300 -21.1
Recreation Programs 798,850 769,930 -3.6
Recycling Program 303,140 375,420 23.8%
Redevelopment 343,280 200,640 -41.6%
Sanitary Sewer 3,428,180 3,520,160 2.7%
Total Operating Budget 28,413,890 25,680,600 -9.6
Capital Improvements Budget:
CapitallmprovementProjects 290,160 104,520 -64.0%
Fire Safety Projects 0 0 N/A
Fire Truck Replacement 1,800 372,980 20621.1
Historic Bruentrup Farm 0 0 N/A
Open Space 0 620 N/A
Park Development 551,040 454,070 -17.6%
Public Improvement Projects 6,036,670 1,370 -100.0
Public Safety Dispatching Center 0 0 N/A
Public Works Building Addition 200,000 1,250,000 525.0
Sewer Lift Station No. 9 0 0 N/A
Street Construction State Aid 590 30 -94.9
Tax Increment Economic Development District #1-4 0 0 N/A
Tax Increment Economic Development District #1-5 80 170 112.5
Tax Increment Housing District #1-1 180 180 0.0
Tax Increment Housing District #1-2 180 190 5.6
Tax Increment Housing District #1-3 170 170 0.0
Tax Increment Housing District #1-4 26,960 37,030 37.4
Tax Increment Housing District #1-5 22,340 33,350 49.3
Tax Increment Housing District #1-6 77,060 92,300 19.8
Water Availability Charge - No. St. Paul 80 90 12.5
Water Availability Charge - St. Paul 270 50 -81.5
Total Capital Budget 7,207,580 2,347,120 -67.4%
Debt Service Budget:
Debt Service Funds 3,207,720 3,455,620 7.7%
GrandTotal $38,829,190 $31,483,340 -18.9%
2-11
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
EXPENDITURE TYPES BY DEPARTMENT AS PERCENT OF TOTAL
2003 PERCENT 2004 PERCENT
TYPE BUDGET OF TOTAL BUDGET OF TOTAL
Personal Services $17,525,750 45.1% $14,934,230 47.4%
Commodities 1,279,530 3.3% 1,443,150 4.6%
Contractual Services 6,835,640 17.6% 6,992,450 22.2%
Capital Outlay and Depreciation 8,761,300 22.6% 3,856,960 12.3%
Debt Service 3,270,260 8.4% 3,568,340 11.3%
Other Charges 1,156,710 3.0% 688,210 2.2%
Totals $38,829,190 100.0% $31,483,340 100.0%
DEPARTMENT
Community Development $1,674,690 4.3% $1,733,810 5.5%
Debt Service 3,333,170 8.6% 3,617,310 11.5%
Executive 1,808,260 4.7% 2,049,500 6.5%
Finance and Information Tech. 971,170 2.5% 1,144,550 3.6%
Fire 1,703,280 4.4% 2,176,860 6.9%
General Government 4,700,330 12.1 % 0 0.0%
Human Resource 287,790 0.7% 312,240 1.0%
Legislative 130,330 0.3% 194,330 0.6%
Parks and Recreation 5,085,780 13.1 % 4,910,880 15.6%
Police 6,035,810 15.5% 6,736,830 21.4%
Public Works 13,098,580 33.7% 8,607,030 27.3%
Totals $38,829,190 100.0% $31,483,340 100.0%
2-12
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
POLICIES ON FUND BALANCES
AND RETAINED EARNINGS
OPERATING BUDGET:
General Fund -the projected 12-31-04 fund balance is equal to 36.6% of the budgeted
revenues to provide working capital to finance operations between the semi-annual receipt of
property tax and State aid revenues and to provide a reserve for emergencies. The fund
balance was at 36.1 % of the budgeted revenues in October, 1989 when the city's bond rating
was increased to Aa by Moody's Investors Services.
Special Revenue Funds
Charitable Gambling Tax Fund -this fund is used to hold charitable gambling taxes until
they are allocated by the City Council based upon requests received. Consequently, the
balance in this fund will fluctuate greatly.
Cops More Grant Fund -accounts for federal grant money received in 2003 which was
used to purchase crime-mapping software. This fund was closed in 2003.
East County Line Fire District Fund -this fund was closed in 2003.
Enhanced 911 Service Fund -this fund accounts for state aid for the 911 emergency
phone dispatching costs. The fund balance will fluctuate depending on the timing of state
aid eligible expenditures.
Gladstone Fire District Fund -this fund will be closed in 2002.
Hazardous Materials Fund -this fund is designed to finance the one-time costs that will
be incurred in developing a hazardous materials response team. Consequently, the size
of the fund balance is completely dependent on the timing of the expenditures. It is
anticipated the final costs will be incurred in 2003 and the fund will be closed at that time.
Law Enforcement Block Grant Fund -this fund accounts for grant money received from
the U.S. Department of Justice. The fund was closed in 2003.
2-13
POLICIES ON FUND BALANCES AND RETAINED EARNINGS (cont.)
Police Services Fund -this fund was established to account for money that is legally
restricted for police services. Most of the revenues for this fund are from confiscated
money that is split between the city, county and state based on a statutory formula. The
city's share is 70%. The balance in this fund will fluctuate greatly.
Recreation Programs Fund -the projected 12-31-03 fund balance is 7.0% of the 2004
budgeted expenditures. It is current policy to maintain the fund balance at approximately
5-10% of the budgeted expenditures.
Redevelopment Fund -this fund accounts for the
Previously it was titled the Housing Replacement Fund
depending on program activities.
Enterprise Funds
City's redevelopment activities.
. The fund balance will fluctuate
Community Center Operations Fund -the projected 12-31-04 cash balance is $12,684
and this approximates the working capital balance. It is planned that the working capital
will be gradually increased to 5% of the budgeted operating expenses.
Environmental Utility Fund -this fund accounts for the City's storm water management
program and projects. The balance in the fund will fluctuate depending on projects and
program activities.
Recycling Program Fund -the projected 12-31-04 cash balance is $39,814 and this
approximates the working capital balance. It is current policy to maintain the working
capital at 10% of the budgeted operating expenses.
Sanitary Sewer Fund -the projected 12-31-04 cash balance is $636,285 and this
approximates the working capital balance. Utility rates are set to provide working capital
equal to at least 33% of the annual budgeted expenses.
Internal Service Funds
Dental Self-Insurance Fund -this fund was closed in 2001.
Fleet Management Fund -internal service charges provide most revenues for this fund.
Annual increases in the internal service charges are set to produce a small net income.
This process is designed to produce a cash reserve equal to the amount of accumulated
depreciation for replacement of vehicles and equipment as many fixed assets in this fund
are in excess of five years old.
Information Technology Fund -the projected 12-31-04 cash balance is $704,213 and
this approximates the working capital balance. Internal service charges are set to provide
working capital equal to at least 33% of the annual budgeted expenses.
2-14
POLICIES ON FUND BALANCES AND RETAINED EARNINGS (cont.)
CAPITAL IMPROVEMENT BUDGET:
The fund balances in the funds within the Capital Improvement Budget vary annually based
upon the timing of construction projects. Normally the year-end fund balance is positive
except for the Public Improvement Projects Funds which may have a temporary deficit
pending the issuance of public improvement bonds.
DEBT SERVICE BUDGET:
Debt service fund balances fluctuate annually in large part due to prepayment of deferred
special assessments which can not be forecasted. Annual tax levies for the debt service
funds are adjusted based upon the amortization of the projected surplus or deficit for each
bond issue.
a-is
THIS PAGE INTENTIONALLY LEFT BLANK
2-16
CITY OF MAPLEWOOD, MINNESOTA
ALL BUDGETARY FUNDS
BUDGETED CHANGES IN FUND BALANCES/RETAINED EARNINGS
Total By Fund
Operating Budget:
Charitable Gambling Tax
Community Center
COPS More Grant
Dental Self-Insurance
East County Line Fire
Enhanced 911 Service
Environmental Utility
Fleet Management
General
Gladstone Fire District
Hazardous Materials
Information Technology
Law Enforcement Block Grant
Police Services Fund
Recreation Programs
Recycling Program
Redevelopment
Sanitary Sewer
Total Operating Budget
Capital Improvements Budget:
Capital Improvement Projects
Fire Safety Projects
Fire Truck Replacement
Historic Bruentrup Farm
Open Space
Park Development
Public Improvement Projects
Public Safety Dispatching Center
Public Works Building Addition
Sewer Lift Station No. 9
Street Construction State Aid
Tax Increment Economic Development District #1-4
Tax Increment Economic Development District #1-5
Tax Increment Housing District #1-1
Tax Increment Housing District #1-2
Tax Increment Housing District #1-3
Tax Increment Housing District #1-4
Tax Increment Housing District #1-5
Tax Increment Housing District #1-6
Water Availability Charge - No. St. Paul
Water Availability Charge - St. Paul
Total Capital Budget
Debt Service Budget:
Debt Service Funds
Grand Total
NET OTHER
BALANCE INCREASES BALANCE
01-01-04 REVENUES (DECREASES) EXPENDITURES 12-31-04
$18,936 $62,020 $0 $68,740 $12,216
9,561,817 2,072,040 0 2,101,530 9,532,327
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
13 24,710 0 24,720 3
273,320 1,106,960 0 925,590 454,690
2,716,715 748,720 (1,250,000) 612,810 1,602,625
6,430,845 16,051,010 0 16,610,100 5,871,755
0 0 0 0 0
0 0 0 0 0
1,233,803 333,000 0 470,660 1,096,143
0 0 0 0 0
99,646 4,980 0 300 104,326
38,820 785,330 0 769,930 54,220
141,373 375,420 0 375,420 141,373
206,446 0 0 200,640 5,806
10,832,909 3,677,660 (80,500) 3,520,160 10,909,909
31,554,643 25,241,850 (1,330,500) 25,680,600 29,785,393
109,855 5,490 0 104,520 10,825
0 0 0 0 0
501,268 25,060 0 372,980 153,348
0 0 0 0 0
191,281 9,560 0 620 200,221
913,925 568,650 0 454,070 1,028,505
421,853 21,090 239,000 1,370 680,573
0 0 0 0 0
0 0 1,250,000 1,250,000 0
0 0 0 0 0
9,432 470 0 30 9,872
0 0 0 0 0
3,026 5,240 0 170 8,096
4,811 96,440 (96,260) 180 4,811
8,579 172,100 (171,910) 190 8,579
2,165 43,480 (43,310) 170 2,165
6,326 37,140 0 37,030 6,436
6,854 33,480 0 33,350 6,984
101,689 107,000 0 92,300 116,389
27,751 2,700 0 90 30,361
15,748 44,570 (33,460) 50 26,808
2,324,563 1,172,470 1,144,060 2,347,120 2,293,973
2,590,593 3,152,440 344,940 3,455,620 2,632,353
$36,469,799 $29,566,760 $158,500 $31,483,340 $34,711,719
Note: The amounts listed in the column labeled NET OTHER INCREASES (DECREASES) consist of the following: transfers between funds, bond issue proceeds
and credits arising from the transfer of depreciation expense to contributed capital.
2-17
SUMMARY OF PERSONNEL BY DEPARTMENT
BUDGETED FULL-TIME REGULAR EMPLOYEES
Community
Development
Executive
Finance and Information
Tech.
Fire
Human Resource
Parks and Recreation
Police
Public Works
2-18
City of Maplewood, Minnesota
SUMMARY OF PERSONNEL
BY DEPARTMENT
NUMBER OF BUDGETED REGULAR EMPLOYEES
2003 2004
PROGRAM Full
Time Part
Time* Full
Time Part
Time*
Communit Develo ment 11 2 12 2
Executive 13 2 12 3
Finance and Information Tech. 8 1 9 1
Fire 10 0 10 0
Human Resource 3 0 3 0
Parks and Recreation 24 18 23 16
Police 68 0 67 0
Public Works 32 1 32 1
TOTALS* 169 24 168 23
The number of regular part-time employees listed is after conversion to full-time equivalents.
Employee totals do not include volunteer firefighters or reserve police officers. A listing of
budgeted positions by job title in each department is located on pages 6-2 through 6-8.
2-19
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
TAX LEVY 2001 - 2004
The city's tax levy has increased from $8,471,410 in 2001 to $12,826,550 in 2004. The average
annual increase has been 17.4% for these four years.
13
12
11
10
9
~ g
O 7
= 6
5
4
3
2
1
0
$8,471,410 $10,348,230 $11,927,880 $12,826,550
2001 2002 2003 2004
Operations Capital Improvements ^ Debt Service
The 2004 tax levy is 7.5% more than 2003. The following is a breakdown of increases and
decreases in the tax levy payable in 2004:
Tax Levy Increase/(Decrease)
Amount Amount Percent
Operations
Capital Improvements
Debt Service
Total
$10,327,350
0
2,499,200
$12,826,550
$1,385,100 15.5%
(793,700) (100.0%)
307,270 14.0%
$898,670 7.5%
The impact of the payable 2004 tax levy on a median value home in Maplewood cannot be
determined until Ramsey County finalizes the tax base values for 2004.
2-20
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
CHANGES IN TAX BASE 2001 - 2004
The assessor's estimated market values for 2001-2004 have been as follows:
2001 $2,119,540,200 +10.6%
2002 $2,246,631,200 +6.0%
2003 $2,508,311,400 +11.7%
2004 Data not available
In Minnesota the assessor's estimated market values are reduced by different percentages
depending on the property type to calculate a taxable value called tax capacity. For taxes
payable in 2004 on asingle-family home occupied by the owner with an assessor's
estimated market value of $600,000, the tax capacity is calculated as follows:
1 % of the first $500,000 in value = $5,000
1.25% of the value above $500,000 = $1,250
Total tax capacity = $6,250
For commercial and industrial property the tax capacity is calculated at 1.5% of the first
$150,000 of market value and 2.0% of the market value above $150,000. The table on the
next page lists the property class rates for taxes in 2000 through 2004.
2-21
PROPERTY CLASS RATES
SET BY STATE LEGISLATURE
Percentage of Market Value
Rate for
2000 & Rate for Rate for Rate for
Property Type 2001 Taxes 2002 Taxes 2003 Taxes 2004 Taxes
Homestead
0 to $76,000 1.00% 1.00% 1.00% 1.00%
$76,000-$500,000 1.65% 1.00% 1.00% 1.00%
Over $500,000 1.65% 1.25% 1.25% 1.25%
Non-Homestead (Single Family)
0 to $76,000 1.20% 1.00% 1.00% 1.00%
$76,000-$500,000 1.65% 1.00% 1.00% 1.00%
Over $500,000 1.65% 1.25% 1.25% 1.25%
Apartments 2.40% 1.80% 1.50% 1.50%
Commercial/Industrial
0 to $150,000 2.40% 1.50% 1.50% 1.50%
Over $150,000 3.40% 2.00% 2.00% 2.00%
2-22
When the City of Maplewood levies property taxes, most of the amount levied is allocated
to property owners based on the tax capacity of their property. (The open space and fire
safety bond issue referendums approved levies are on the market value of their property.)
The total tax capacity of all property in Maplewood for 2001-2004 has been as follows:
2001 $39,024,950 +13.2%
2002 $27,324,987 -30.0%
2003 $30,874,105 +13.0%
2004 Data not available
The amounts listed include real estate and personal property such as electric substations.
Also, the amounts are after adjustments for tax increment districts and fiscal disparities.
The adjustment for tax increment districts reduces the tax base for the value of new
development in a specified area. This allows the city to use the additional property taxes
generated by the development to pay for certain expenses.
The adjustment in tax base for fiscal disparities provides for sharing throughout the Twin
Cities metropolitan area 40% of the growth in commercial and industrial tax base values.
The 40% growth is contributed to an area-wide tax base pool. A distribution index, based
on the factors of population and property market value per capita, is used to allocate the
area-wide tax base pool back to each taxing district. The following table provides a
breakdown of Maplewood's tax base values:
TAX CAPACITY: 2001 2002 2003 2004 est.
Real Estate $41,658,320 $29,496,053 $32,431,708 Data Not Available
Personal Property 646,646 383,819 408,077
Tax Increment Districts 423 775 347 400 39( 3,723)
Sub-Total 41,881,191 29,532,472 32,446,062
Fiscal Disparities:
Contribution (7,005,645) (4,720,041) (4,266,341)
Distribution 4,149,404 2,512,556 2,694,384
Total Tax Capacity 39,024,950 27,324,987 30,874,105
2-23
CITY OF MAPLEWOOD, MINNESOTA
2004 BUDGET
CHANGES IN TAX RATES 2001 - 2004
When the City of Maplewood levies property taxes, most of the amount levied is allocated
to property owners based on the tax capacity of their property. (The open space bond issue
referendum approved levy is on the market value of their property.) In order to allocate the
tax levy, a percentage is calculated by dividing the tax levy amount by the tax capacity of
the city's tax base. This rate is then applied to the tax capacity of property to determine the
amount of taxes due. The 2001-2004 tax capacity tax rate for the city property tax levy has
been as follows:
2001 - 19.971
2002 - 35.436%
2003 - 36.319%
2004 -Data not available
Part of the city's tax levy each year is for principal and interest payments on a 1994 bond
issue that financed the purchase of vacant undeveloped land that will be preserved for
"open space". Since this bond issue was approved in a referendum, the tax levy is allocated
to property owners based on the market value of their property. In order to allocate the tax
levy, a percentage is calculated by dividing the tax levy amount by the market value of the
city's tax base. This rate is then applied to the market value of property to determine the
amount of taxes due. The 2001-2004 market value tax rate for the city property tax levy has
been as follows:
2001 - .03066%
2002 - .03133%
2003 - .23506%
2004 -Data not available
City property taxes are a small proportion of total tax bill for property owners. In Minnesota
property taxes are also levied by school districts, counties and miscellaneous special taxing
districts such as watersheds, regional transit commissions and the Metropolitan Council.
The property tax bill for each property owner is equal to each taxing district's tax rate
multiplied by the property value and then added together. The pie graphs on the next page
indicate what portion city taxes have been of the total for 2002 and 2003.
2-24
CITY PORTION OF PROPERTY TAXES
County
46.2%
Miscellaneous
5.0%
Sc
1e.i%o
2002
Schools
32.4%
2003
City
32.7%
City
26.2%
2-25
Miscellaneous County
5.5% 35.9%