HomeMy WebLinkAbout2003 09-04 City Council Special Meeting PacketAGENDA
MAPLEWOOD CITY COUNCIL
5:00 P.M. Thursday, September 04, 2003
Council Chambers, Municipal Building
Meeting No. 0349
A. CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL
D. NEW BUSINESS
1. Overview of Proposed 2004 Budget
2. Preliminary Approval of Proposed Tax Levy Payable in 2004
3. Set Public Hearing Dates on Proposed 2004 Budget and Property Tax Levy
E, VISITOR PRESENTATIONS
F. COUNCIL PRESENTATIONS
G. ADMINISTRATIVE PRESENTATIONS
H. 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) 770 -4523 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 N O . D -2
AGENDA REPORT
TO: City Manager
FROM: Finance Director
RE: PRELIMINARY APPROVAL OF PROPOSED TAX LEVY
PAYABLE IN 2004
DATE: . August 28, 2003
State law requires that cities certify their proposed property tax levies to the county
auditor by September 15. The proposed tax levy that is given preliminary approval
cannot be increased. Therefore, it is important that the proposed tax levy provides
adequate revenues to finance the 2004 Budget.
The Proposed 2004 Budget requires a tax levy of $12,826,550 which is 7.5% more
than 2003 (see breakdown attached). This is $4,97 under the levy limit because
the city did not receive notification of its levy limit until after the budget was
prepared. The City Council may want to consider increasing the tax levy to the
maximum allowed under the levy limit to provide a larger reserve for unexpected
events. This would increase the tax levy to $12,831,520 which would be an increase
of 7.6% over the tax levy for 2003.
It is recommended that the. Council determine the tax levy for 2004 based on one of
these options and then adopt the attached resolution.
5
RESOLUTION PROVIDING PRELIMINARY APPROVAL OF A PROPOSED
TAX LEVY PAYABLE IN 2004
WHEREAS, State law requires that the City Council give preliminary approval
of a proposed tax levy for 2003 payable in 2004 by September 15, 2003 and
WHEREAS, the City Council has reviewed the Proposed 2004 Budget and
has determined the amount of the proposed tax levy payable -in 2004 which is the
maximum amount that will be levied.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF MAPLEWOOD, MINNESOTA THAT the proposed tax levy for 2003
payable in 2004 in the amount of $ _ _ is hereby given preliminary
approval.
General Fund:
Gross levy
Debt Service Fund:
Gross levy
PROPOSED 2004 TAX LEVY
2003 2004
L� Le
$8 $9,898,350
$2,191 $2
Change
Amount Percent
$956,100 10.7%
$307,270
Gross levy
$373,700
$0
($373,700)
Community Center Operations Fund:
Less debt service levy
(2,191,930)
(2
Gross levy
$75
$181,000
$106,000
F.T.R. Fund:
($1,617)
7.0%
Net levy subject to limit
Gross levy
$90,000
$0
($90
Housing Replacement Fund:
9
10,307
$594,751
Gross levy
$50
$0
($50,000)
Park Development Fund:
248400.0%
Gross levy
$205
$0
($205,000)
Recreation Programs Fund:
Gross levy
$0
$248
$248
Totals -All Funds:
Gross levy
$11
$12,826,550
$898
Lew Limit:
14.0%
- 100.0%
141.3%
- 100.0%
N/A
- 100.0%
N/A
7.5%
Gross levy
11
12
$898,670
7.5%
Less debt service levy
(2,191,930)
(2
($307,270)
14.0%
Less PERA levy
(23
(24,722)
($1,617)
7.0%
Net levy subject to limit
9
10
$589,783
6.1%
Levy limit
9
10,307
$594,751
6.1%
Amount over (under) limit
(2)
(4
($4,968)
248400.0%
P \agn \2004PRO POSE DTAXLEVY
S \agenda \2004 PRO POSE DTAXLEVY
AGENDA NO. D -3
AGENDA REPORT
TO: City Manager
FROM: Finance Director
RE: Set Public Hearing Dates on Proposed 2004 Budget and
Property Tax Levy
DATE: August 28, 2003
State law requires that the City hold a public hearing on its budget and property tax levy for
2004. The following procedures must be followed:
• Certify to Ramsey County the date it has selected by September 15 th ;
• Hold the meetin g between November 29 and December 20 th ;
• Hold the hearing after 5:00 p.m. if it is on a day between Monday and Friday or at
any reasonable time on Saturday; and
• Not to conflict with hearings for the county, metro special taxing districts or the three
school districts in Maplewood.
The following dates are recommended as the Legislature has reserved the dates for cities:
Initial hearing -Monday, December, 1st at 7 :00 p.m
Continuation hearing (if needed) - Monday, December 8 th at 7:00 p.m
Adoption heari.ng - Monday, December 8 th at 7:00 p.m.
PI FINANCE \Word\AGN12004budgethearing
S\AG EN DAl2004budgethearing
s CA �
,..n s: .
AS
a in 2004 Property Tax
Percentage Chan
Estimated g g
Value Single Family Homes
On Median g Y -(as of 08/13/2003) .
Assuming No Change 2003
. Levies 2003 Levies for All Taxing Authorities
Es tim a to d
Payable 2004
° a
/o C g han
Estimated %Change in Tax -on Median Valued Home
.Change
•
City Me d ia
In Median ----------- - - - - -- --
------ - - - - -- - --
-----=-- - - - - -- - --
--------- - - - - --
-- -
- - -- ------ - - - - --
From 2003
•
City
School
1
Taxable. Value
Value
County
tS'
City '
School
Other
Total
Total Tax
Arden Hills
621
3 00
$207
2.8%
6.1%
3.9%
-1.0%
3.6%
$67
623.
It
2.9%
6.2%
-1.1 %
-1.0%
2.2%
43
Falcon Heights
623
191,000
o
12.0 /0
o
2.9 /o
4.5%
-1.1 % �
-1.9%
1:8 %
34
Gem Lake
624
177,300
12.0%
2.6 /o
.
Lauderdale
623
124 200
,
12.0%'
2:9%
0.9%
=1.2%
-2.0%
1.0%
11
Little C anada
623
�
161500
,
12.0%
2.9%
2.4%
-1.2%
-1.7%
� 1.3%
20
624
"
2.8%
2.3%
-0.6%
-1.8%
1.3%
21
Maplewood
622
15 6 ) 000
12.0%
2.6%
1.3%
-2.9%
-1.9%
0.2%
5
623
2.7%
1.4%
-1.2
-1.8%
1.0%
17
624
2.6%
1.3%
- -o.6%
- 1.9%
1.0%
18
•
Mounds View
621
141,100
°
12.0 /0
3.0 %
6.4%
� 4.0%
1.5%
4.2%
56
•
New Brighton
282
174,500
12. %
0
� 3.1%
5.6%
12.7% �
-0.8%
6.3
115
621
2.8%
5.3%
3.9 %
-1.1%
3.6%
61
North Oaks
621
433,804
°
12.0 /o
2.7%
0.6%
3.8%
4.0%
2.4%
92
624
"
2.6%
0.6%
-0.4%
-3.0%
1.1%
46
20
Estimated Percentage Change in 2004 Property Tax
On Median Value Single Family Homes (as of 08/13/2003)
Assuming No Change From 2003 Levies for All Taxing Authofities
. Payable 2004 % Change
City Median Tin Median
City School Taxable Value Value
Estimated % Change in Tax on Median Valued Home
- NNN.- - - -NN- ANNN_- - - -N-- --- NN- N- - - - - -- ----------- - - - --- ----------- - --- --
County City School Other Total
Es timate d
Change
From 2003
Total Tax
North St. Paul 622
$142,700
12.0%
- 3.1%
4.4%
-2.8%
-1.4%
1.0%
$15
Roseville 621
164
12.0%
3.0%
5.0%
4.0%-
-0.9%
3.5%
50
623
3.1%
5.0%
-1.1%
-0.8%
2.0%
31
St. Anthony 282
133,500
12.0%
3.9%
.14.6%
13.0%
1.8%
9.6%
139
St. Paul 625
11 5,000
12.0%
3.1%
4.5%
-2.9%
-0.3%
1.4%
16
Shoreview 621
185
12.0%
2.7%
-0.5%
3.8%
-1.2%
119%
33
623
".
2.7%
-0.4%
-1.2 %.
-1.2%
0.7%
12
Spring Lake Park 621
146,300
12.0%
3.3%
'14.0%
4.3%
1.7%
7.3%
116
Vadnais Heights 621
168,300
12.0%
3.0%
4.4%
4.0 6 /o
-2.7%
3.2%
46
624
2.8%
4.2%
-0.5%
-1.7%
1.6%
27
White Bear Lake 624
156,700
1
2.9%
3.5%
-0.5%
-1.6%
1.5%
24
White Bear Town 624
182,800
12.0%
2.6%
-2.3%
-0.6%
A.9%
0.4%
7
21
D
CITY OF MAPLEWOOD
2004
Budget
1830 County Road B • Maplewood, MN 55109 • Phone 651.249.2000
www.ci.maplewood.mn.us
CITY OF MAPLEWOOD
2004 Initiatives
• Converted the operating budget from a line -item budget to a
program and performance budget
• Planned expansion of storm water management activities by
adding an environmental utility charge
Long -range Goals
• Develop a strong public works infrastructure
• Improve the city's parks and trail system
• Redevelop residential and commercial properties
Tax Levy for 2004 Up 7.5%
• Two thirds of the tax levy increase is to recoup 60% of the
state aid cuts that the Legislature enacted for 2004
• One third of the increase is for higher payments on bond issues
for public improvement projects
State Tax Levy Limit Law
• Limit based on levy limit for 2003 with an increase equal to
60% of state aid cuts
• Debt service tax levies are outside the levy limit
• Proposed tax levy is $4,970 under the maximum
levy allowed
Tax Levy
Increased /Decreased
Amount
Amount
Perce
Operations
$10,327,350
$1,385,100
15.5%
Capital Improvements
0
(793,700)
(100 %)
Debt Service
2,499,200
307,270
14%
Total
$12,826,550
$898,670
7.5%
State Tax Levy Limit Law
• Limit based on levy limit for 2003 with an increase equal to
60% of state aid cuts
• Debt service tax levies are outside the levy limit
• Proposed tax levy is $4,970 under the maximum
levy allowed
City Receives 26.2% of Taxes
5.5% 26.2%
Other City
• Breakdown of $1,874 tax bill for 2003 on home with $143,000
taxable market value and $189,500 full market value
—$491 City
—$673 County
—$606 Schools
—$104 Other
• City tax in 2004 will be up about $37
Operating Budget Revenues Up 6.3%
• Employee Benefits Fund eliminated from budget
• Estimated expenditures for contingencies eliminated from budget
• Remaining expenditures are 7.1% higher than 2003
• Revenue categories with largest increases are licenses /permits
and charges for service
• Licenses /permits increase due to building permits anticipated
for Legacy Village
• Charges for service increase due to new environmental utility
charge and increases in sanitary sewer rates and recycling charges
Ambulance Rate Increase
• Basic life support service charge up 20% for resident users
• Rates charged based on the average rates charged by other
providers
• Revenues will increase by $217,250
• Ambulance revenues total $1.4 million
32.4% 35.9%
Schools County
Utility Bills Up 15.3%
• Utility service charges generate 19.9% of the total operating
budget revenues
• Consists of: sewer service, environmental utility, recycling
• Most of the revenue finance sewage treatment charges which
are 61.4% of the operating expenses in the sewer fund
• Quarterly utility bill on average home increase by $8.45
Quarterly Sewer Rates By Year
1 $50.00
so
40
30
20
10
0
Expenditures Budget $31.5 Million
Capital Impr.
$2.3 Million
Debt Service
$3.5 Million
Operations
$25.7 Million
• Operations budget down 9.6%
• Capital improvements budget down 67.4%
• Debt service budget up 7.7%
99 00 01 02 03 04
Operating Expenditures Down 9.6%
• City growth requires budget increase in excess of the inflation
rate to maintain present level of services
• Average annual population growth past ten years was 1.3%
• Non - residential building permits have been over $35 million
annually during the past three years
Full -Time Employees Down by 1
• Number of full -time positions in the 2003
Proposed Budget is 168
• Position changes: ( +1 building inspector, -2 clerk typists,
-1 building custodian, +1 public works maintenance worker)
Change to Program & Performance Budget
• Expenditures for operations split between departments
• General Government Department replaced by the Executive &
Legislative departments
• Divisions within each department are now called programs and
have new titles
• Six new programs added:
— Safety in the Human Resources Department
—Ice Arena Operations in the P &R Department
— Four new programs in the Public Works Department
• Storm Sewer Maintenance
• Street Sweeping
• Snow and Ice Control
• Transit Operations
• Performance indicators for effectiveness added for each program
• Some performance indicators are from the ICMA Center for
Performance Measurement
65% of Operating Budget in General Fund
General Fund Revenues Up 4.5%
• Total General Fund revenues up $693,600
• No local government aid (LGA) or market value homestead
credit aid ( MVHCA) anticipated in 2004
• In 2003 LGA and MVHCA will total $308,000 compared to
$1,340,070 in 2002
2003
2004
Increase
% change
Budget
Budget
(Decrease
over 2003
Sources of funds:
Current property taxes
$8,857,820
$9,370,480
$512,660
5.8%
Other revenues
6,499,590
6,680,530
180,940
2.8%
Fund balance
1,059,480
559,090
(500,390)
(47.2 %)
Total
$16,416,890
$16,610,100
$193,210
1.2%
Use of funds:
Expenditures
$16,145,220
$16,610,100
$464,880
2.9%
Net interfund tranfers
271,670
0
(271,670)
(100 %)
Total
$16,416,890
$16,610,100
$193,210
1.2%
General Fund Revenues Up 4.5%
• Total General Fund revenues up $693,600
• No local government aid (LGA) or market value homestead
credit aid ( MVHCA) anticipated in 2004
• In 2003 LGA and MVHCA will total $308,000 compared to
$1,340,070 in 2002
General Fund Per Capita Expenditures Up 1.6%
• Per capita expenditures in the 2003 Budget are $448
• In the 2004 Proposed Budget they are $455
• Assume that population will increase by 1.3% based on
average for past ten years
General Fund Expenditures By Department
General Fund Balance 36.6% of Budget
• Fund balance of 21.4% of revenues needed to finance cash
flow needs
• Fund balance needs to finance unexpected expenditures because
the contingency account has been eliminated
• Fund balance of 36% of revenues needed to maintain city's
bond rating
• Fund balance in the Proposed 2004 Budget is 36.6% of revenues
• Fund balance is 35.6% of revenues in the 2003 Budget
Capital Improv Budget Revenues Down 65.2%
• This part of the budget is based on the 5 -year CI
• Large decrease in revenue due to decrease in tax levy &
decrease in state aid for improvement projects
• Major revenues are $488,210 from investment interest & park
availability charges
• Tax revenues are from tax increment districts
2004
Increase over
% Change
Budget
2003
over 2003
Comm. Dev.
$1,157,750
$129,480
12.6%
Executive
2,049,500
2,049,500
N/A
Finance & I.T.
6 71,670
91,250
15.7%
Fire
1,758,880
177,400
11.2%
Gen. Gov.
0
- 2,579,720
-100%
Human Resources
312,240
24,450
8.5%
Legislative
125,590
125,590
N/A
Parks &Rec.
1,584,730
120,820
8.3%
Police
6,702,810
721,090
12.1%
Public Works
2,246,93
- 33 94.98 Q
-15'x°
Total expend.
$16,610,100
- 464,880
2.9%
General Fund Balance 36.6% of Budget
• Fund balance of 21.4% of revenues needed to finance cash
flow needs
• Fund balance needs to finance unexpected expenditures because
the contingency account has been eliminated
• Fund balance of 36% of revenues needed to maintain city's
bond rating
• Fund balance in the Proposed 2004 Budget is 36.6% of revenues
• Fund balance is 35.6% of revenues in the 2003 Budget
Capital Improv Budget Revenues Down 65.2%
• This part of the budget is based on the 5 -year CI
• Large decrease in revenue due to decrease in tax levy &
decrease in state aid for improvement projects
• Major revenues are $488,210 from investment interest & park
availability charges
• Tax revenues are from tax increment districts
Capital Improv. Budget Expen ditures Down 67.4%
• Most of the decrease is due to public improvement projects
• Past budgets included improvement projects that had not been
approved and ordered by the City Council
• Budget for 2004 excludes improvement projects
• Largest projects for 2003 are:
— $1,250,000 for addition to Public Works Building
— $371,350 for replacement of fire truck
— $250,000 for development of Sterling Oaks Park
— $200,000 for improvements to the Priory Preserve
Debt Service Budget Revenues Up 18.3%
• Increase in property taxes primary cause
• Major revenue sources:
— $2,474,200 from property taxes
— $596,630 from special assessments
— $81,610 from investment interest
Debt Service Budget Expenditures Up 7.7%
• Increase due to higher scheduled principal and interest payments
• New debt issues in 2004 will be $10.6 million for public works
improvements
• At end of 2004 total debt will be $44.5 million which is a
20% increase