HomeMy WebLinkAbout2015 11-23 City Council Workshop PacketPPLLEEAASSEE NNOOTTEE SSTTAARRTT TTIIMMEE
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Following are 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:
Speak only for yourself, not for other council members or citizens - unless specifically tasked by your
colleagues to speak for the group or for citizens in the form of a petition.
Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst
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Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or
others in public.
Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive.
AGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
5:30 P.M. Monday, November 23, 2015
City Hall, Council Chambers
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
E. NEW BUSINESS
1. 2016 Proposed Budget Presentations
a. Finance Department
b. Executive/Legislative Department
c. 2016 Budget Summary
F. ADJOURNMENT
THIS PAGE IS INTENTIONALLY LEFT BLANK
E1a
MEMORANDUM
TO: Melinda Coleman, City Manager
FROM: Gayle Bauman, Finance Director
DATE: November 17, 2015
SUBJECT: 2016 Proposed Budget Presentations
a. Finance Department
Introduction
This item is being presented as part of the discussion on the 2016 Budget to provide more
information on the priorities of the Finance Department.
Background
The proposed Finance Department budget for 2016 is $702,690, which is all financed
through the General Fund. This is a 7.2% decrease from the 2015 budget. 76.6% of this
total ($538,150) is for personnel costs. The three other major expenditures in Finance are
Audit Fees, Internal IT Charges and Investment Management Fees.
During 2015, the department had two long term employees retire. Management is still
evaluating the needs of the department to determine the optimum use of current staff and
future staffing levels.
Finance is an internal service function and does not have a revenue source that is
specifically attributed to it except for Investment Earnings and Management Fees which are
driven by economic forces.
Budget Impact
Informational only.
Recommendation
The proposed 2016 Finance Department Budget is submitted for informational and discussion
purposes. No Council action is required.
Attachments
1. PowerPoint Presentation
2. Objectives
3. Performance Measurements
Workshop Packet Page Number 1 of 35
1
PRESENTED TO MAPLEWOOD CITY COUNCIL
NOVEMBER 23, 2015
Finance Department
2016 Budget
Mission Statement
To provide quality financial services and to
maintain the City’s financial health and
stability.
E1a, Attachment 1
Workshop Packet Page Number 2 of 35
2
Employee Summary
Department Objectives
Comprehensive Annual Financial Report (GFOA award)
Budget Document (GFOA award)
Capital Improvement Plan
Bond issues/Bond rating
Debt Management
Cash and Investments (deficit fund balances)
Accounts Payable and Payroll
Fixed Assets
E1a, Attachment 1
Workshop Packet Page Number 3 of 35
3
2016 Budget
$702,690
Administration
49.0%
Finance
Services
51.0%
Total By Program
2016 Budget Summary by Program
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Program ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
Administration $306,750 $327,993 $336,910 $344,200 2.2%
Finance Services 436,293 423,164 420,250 358,490 -14.7%
Totals 743,043 751,157 757,160 702,690 -7.2%
Two full time employees retired in 2015. We are analyzing the
options we have with our current staff before finalizing what
type of person we would need to cover the workload we have.
E1a, Attachment 1
Workshop Packet Page Number 4 of 35
4
2016 Budget Summary by Classification
Major expenditures included under Contractual Services are the
annual audit fees and internal I.T. charges.
Other Charges are the investment management fees charged to
the General Fund.
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Classification ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
Personnel Services 598,200 597,104 598,420 538,150 -10.1%
Commodities 9,021 11,100 6,660 6,680 0.3%
Contractual Services 112,121 117,389 120,080 125,860 4.8%
Other Charges 23,701 25,564 32,000 32,000 0.0%
Totals 743,043 751,157 757,160 702,690 -7.2%
2016 Budget Summary by Fund
The only funding source for the Finance Department is the
General Fund.
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Fund ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
General Fund 743,043 751,157 757,160 702,690 -7.2%
Totals $743,043 $751,157 $757,160 $702,690 -7.2%
E1a, Attachment 1
Workshop Packet Page Number 5 of 35
5
Personnel
Two long term employees retired in 2015.
6.15 5.9
5.17 4.75
0
1
2
3
4
5
6
7
2013 ACTUAL 2014 ACTUAL 2015 ORIGINAL
BUDGET
2016 ORIGINAL
BUDGET
Full Time Equivalents
General Fund Revenues
2013 = $ 147,753 actual
2014 = $ 156,784 actual
2015 = $ 165,490 est.
2016 = $ 247,630 est.
Includes: Investment management fees, TIF administrative,
Earnings on investments, Penalties, Purchasing card rebates
and Miscellaneous.
Would also be allocated a portion of the Administrative
Charges for PIP funds and Enterprise Funds.
E1a, Attachment 1
Workshop Packet Page Number 6 of 35
6
Performance Output Measures
Developed a Replacement Reserve Policy and
established the General Building Replacement Fund
Strategic Objective: Financial Stability
Three new bonds were issued during 2015 which will
fund two projects and refund three outstanding
bonds.
Strategic Objective: Financial Stability
Prepared the annual Budget, CIP and Financial
Reports
Strategic Objective: Financial Stability
QUESTIONS
COMMENTS
CONCERNS
Finance Department
2016 Budget
E1a, Attachment 1
Workshop Packet Page Number 7 of 35
CITY OF MAPLEWOOD, MINNESOTA 2016 BUDGET
F
INANCE DEPARTMENT
Gayle Bauman, Finance Director
gayle.bauman@maplewoodmn.gov 651-249-2902
DEPARTMENT OVERVIEW
The Finance Department supports all city departments by providing financial management, accounting
and treasury services. It is responsible for preparing the City budget, annual financial report (CAFR),
and capital improvement plan (CIP) for the benefit of Maplewood citizens as well as other interested
parties including the State Auditor’s Office and bond rating agencies. The department is also
responsible for debt management, investments and risk management activities.
SERVICE AREAS
Debt administration
Treasury operations
Tax compliance
Fixed assets
Payroll
Risk management
Accounts payable
Revenue collections
Financial reporting
Budget & CIP compilation
DEPARTMENT ORGANIZATIONAL CHART
Finance
Director
Accounting
Supervisor
Accounting
Technician
Accountant
Payroll
Technician (.5)
Administrative
Assistant (.5)
E1a, Attachment 2
Workshop Packet Page Number 8 of 35
CITY OF MAPLEWOOD, MINNESOTA 2016 BUDGET
FINANCE DEPARTMENT
MISSION STATEMENT
To provide quality financial services and to maintain the City’s financial health and stability.
2016 DEPARTMENTAL GOALS
Arrange for the issuance of bonds to finance projects that will improve and expand the city’s
infrastructure of streets, parks and city buildings and explore opportunities for refunding of existing
debt to reduce interest costs.
Maintain city’s bond rating of AA1/AA+ from the credit rating agencies.
Continue programs for debt management and improve cash status of the Maplewood Community
Center and Ambulance Service funds.
Prepare and distribute the Comprehensive Annual Financial Report for 2015 by May 31, 2016.
Prepare and distribute the 2017-2021 Capital Improvement Plan by July 31, 2016.
Prepare and distribute the proposed 2017 Budget for City Council review by November 30, 2016.
Submit 2015 CAFR to Government Finance Officers Association to receive the Certificate of
Achievement for Excellence in Financial Reporting Award.
Submit 2016 Budget to Government Finance Officers Association to receive the Distinguished
Budget Presentation Award.
Continue to review the city’s system of internal controls so as to safeguard the city’s assets.
Timely completion of the city’s external audit with minimal audit adjusting entries.
Continued staff training, particularly in the areas of staff cross-training.
2016 STRATEGIC PLAN – ACTION STEPS
FINANCIAL STABILITY
Reserve Funding – Facilities and
Equipment
Determine financing sources for capital items.
Review feasibility for a dedicated portion of the tax levy to
builds up a replacement fund reserve.
FINANCIAL STABILITY
General Fund Reserves
Explore other diverse revenue sources and grant
opportunities.
Annual budget preparation.
Evaluate the efficiency and effectiveness of City services.
Set appropriate fees to recover cost of services.
Share information with City Council and Department
Heads.
Monitor expenditures within approved budgets.
Create a financial management plan.
E1a, Attachment 2
Workshop Packet Page Number 9 of 35
CITY OF MAPLEWOOD, MINNESOTA 2016 BUDGET
FINANCE DEPARTMENT
FINANCIAL STABILTIY
Budget
Manage project budgets.
Evaluate the best use of LGA funding.
Maintain or improve the City’s AA+ bond rating.
COORDINATED COMMUNICATION
Communication
Department participation to successfully implement
communication strategy.
EFFECTIVE GOVERNANCE
Decisions/Strategic Plan
Action steps are supported by the budget.
OPERATIONAL EFFECTIVENESS
Collaboration/Shared Services
Review our utility billing contracts annually.
OPERATIONAL EFFECTIVENESS
Survey Results
Continue to improve access to financial data online.
E1a, Attachment 2
Workshop Packet Page Number 10 of 35
CITY OF MAPLEWOOD, MINNESOTA 2016 BUDGET
Department:
Program: Finance
Administration
Fund #:
Program #:
101
201
Performance Measures 2013
Actual 2014
Actual 2015
Estimate 2016
Estimate
OUTPUTS/WORKLOAD
Number of pages in budget booklet 362 354 360 360
Number of pages in capital improvement plan booklet 138 158 160 160
COMMENTS
The number of pages in the budget booklet increased by 25% when the 2004 budget was prepared in 2003 and
changed to a program-performance format. Since then the number of pages has not changed significantly.
The number of pages in the capital improvement plan booklet is affected by the number of projects that are included in
it. No significant change in the number of projects is anticipated in 2016.
E1a, Attachment 3
Workshop Packet Page Number 11 of 35
CITY OF MAPLEWOOD, MINNESOTA 2016 BUDGET
Department:
Program: Finance
Finance Services
Fund #:
Program #:
101
202
Performance Measures 2013
Actual 2014
Actual 2015
Estimate 2016
Estimate
OUTPUTS/WORKLOAD
Number of invoices paid 10,838 10,709 10,750 10,750
Number of payroll checks and direct deposits 9,548 9,473 9,450 9,450
Number of pages in annual financial report 204 208 205 205
EFFECTIVENESS INDICATORS
Receive the GFOA Certificate on the annual financial
report Yes Yes Yes Yes
EFFICIENCY MEASURES
Percent of invoices paid by purchasing cards 69% 69% 70% 70%
Percent of benefit earning employees paid by direct
deposit 100% 100% 100% 100%
COMMENTS
The number of pages in the annual financial report fluctuates based upon the length of the notes to the financial
statements, number of funds, and changes in generally accepted accounting principles.
The percent of benefit earning employees paid by direct deposit has gradually increased each year since 1995 when it
was first offered as an option. Beginning in 2001, all new employees were required to enroll in the direct deposit
program. All temporary/casual employees are strongly encouraged to enroll.
E1a, Attachment 3
Workshop Packet Page Number 12 of 35
MEMORANDUM
TO: Melinda Coleman, City Manager
FROM: Mike Funk, Assistant City Manager/HR Director
DATE: October 28, 2015
SUBJECT: 2016 Proposed Budget Presentation
b. Executive / Legislative Department
Introduction
The 2016 Executive Department budget proposal calls for a 13.8% increase over 2015; and the
2016 Legislative Department budget proposal calls for a 2.4% increase over 2015. The
Executive Department budget is largely personnel costs and non-discretionary contract services.
Background
The increase in expenditures in the Executive Department budget are a reflection of two items-
a 50% reallocation of the Assistant City Manager salary/benefits from EEDD to Executive and
an increase in prosecution legal services. As a result in the reallocation of the Assistant City
Manager position has a net zero effect to the overall city budget as EEDD had a decrease in
personnel services.
Budget Impact
Information only.
Recommendation
Information only.
Attachments
1. PowerPoint Presentation for Executive Department 2. PowerPoint Presentation for Legislative Department
E1b
Workshop Packet Page Number 13 of 35
11/23/2015
1
PRESENTED TO MAPLEWOOD CITY COUNCIL
NOVEMBER 23, 2015
Executive Department
2016 Budget
Mission Statement
To provide leadership for the effective
implementation of policy directions given by
the Maplewood City Council to efficiently
deliver public services to the citizens of
Maplewood.
E1b, Attachment 1
Workshop Packet Page Number 14 of 35
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City Organizational Chart
What We Do?
Leading the organization….
Full Time Employees: 148
Part Time Employees: 21
Total Benefit EE’s 169
Temp/Seasonal/Cas. 235
Total Staff: 404
7 Bargaining Units
E1b, Attachment 1
Workshop Packet Page Number 15 of 35
11/23/2015
3
Employee Summary
Current makeup of department: (4.6 FTE)
City Manager
Assistant City Manager / Human Resource Director
Senior Administrative Assistant
Human Resource Coordinator
Human Resource Assistant (.6 FTE)
Executive Department Organizational Chart
E1b, Attachment 1
Workshop Packet Page Number 16 of 35
11/23/2015
4
Personnel
* Current staff level is 4.6 FTE. For 2016, the additional .6 assumes a
part-time communication position.
3.5 3.5
4.1
5.2
0
1
2
3
4
5
6
2013 ACTUAL 2014 ACTUAL 2015 ORIGINAL
BUDGET
2016 ORIGINAL
BUDGET
Full Time Equivalents
Department Objectives
Continue to make Maplewood City government transparent and
accessible; operate within an environment of efficiency and
effectiveness. Welcome and encourage citizen involvement, and work
with other cities to collaborate and consolidate City services.
Work to attract new private investment in the Maplewood business
community to add new jobs and expand economic opportunity through
policies that stimulate economic growth.
Cultivate a work place culture that values long term strategic planning
and meeting objectives by creating accountability through enhanced
performance measurement.
Expand communication of City activities and public information
through website and other social media.
E1b, Attachment 1
Workshop Packet Page Number 17 of 35
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Department Objectives
Minimize the impact of property taxes on home owners and businesses
while balancing service demands, capital improvement and asset
management planning, and debt management.
Explore options for alternative and sustainable revenues to reduce
overall reliance on state resources. Use data-based decision making to
drive budget decisions that comport with principles of sustainability.
Encourage, support and provide guidance to City staff, supervisors and
managers on employee related issues. This includes coordinating and
facilitating recruiting efforts, employee benefits; training and
development; safety and wellness programs, and workers’
compensation.
Value and support workplace principles of innovation and technology
for our employees; encouraging new ideas and solutions.
2016 Budget
E1b, Attachment 1
Workshop Packet Page Number 18 of 35
11/23/2015
6
2016 Budget
$1,098,090
2016 Budget Summary by Fund
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Fund ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
General Fund 904,595 850,816 964,730 1,098,090 13.8%
Totals $904,595 $850,816 $964,730 $1,098,090 13.8%
E1b, Attachment 1
Workshop Packet Page Number 19 of 35
11/23/2015
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2016 Budget Summary by Program
* New Safety Consultant
* Assistant City Manager- 50% of time reallocated from EEDD
* Legal includes $147K for prosecution services, $96K for Civil
* HR Attorney included in HR Administration
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Program ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
Administration $387,722 $332,314 $407,570 $406,160 -0.3%
Communications 0 0 0 37,320 N/A
H.R. Administration 297,635 288,859 321,700 392,390 22.0%
Legal Services 214,146 225,385 229,540 246,300 7.3%
Safety 5,092 4,258 5,920 15,920 168.9%
Totals 904,595 850,816 964,730 1,098,090 13.8%
2016 Budget Summary by Classification
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Classification ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
Personnel Services 478,192 439,164 553,810 693,980 25.3%
Commodities 10,881 10,416 9,350 10,650 13.9%
Contractual Services 415,522 401,236 401,570 393,460 -2.0%
Capital Outlay and
Depreciation 0 0 0 0 N/A
Other Charges 0 0 0 0 N/A
Totals 904,595 850,816 964,730 1,098,090 13.8%
E1b, Attachment 1
Workshop Packet Page Number 20 of 35
11/23/2015
8
General Fund Revenues
2013 = $ 26,260 actual
2014 = $ 23,979 actual
2015 = $ 2,070 est.
2016 = $ 2,150 est.
Includes: Rents and TIF administrative.
Would also be allocated a portion of the Administrative
Charges for PIP funds and Enterprise Funds.
Performance Output Measures
New City website and logo
Strategic Objective: Coordinated Communication
Hiring of Assistant City Manager / Human Resource
Director
Strategic Objective: Operational Effectiveness
Implementation of NeoGov online application and
Open Enrollment HR software
Strategic Objective: Operational Effectiveness
E1b, Attachment 1
Workshop Packet Page Number 21 of 35
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9
QUESTIONS
COMMENTS
CONCERNS
Executive Department
2016 Budget
E1b, Attachment 1
Workshop Packet Page Number 22 of 35
11/23/2015
1
PRESENTED TO MAPLEWOOD CITY COUNCIL
NOVEMBER 23, 2015
Legislative Department
2016 Budget
Mission Statement
To provide for the establishment of policies and
adoption of local laws for the public health, safety
and welfare of the citizens of the City of
Maplewood through the City Council, as advised
by various commissions and task forces as
authorized by ordinance and appointment.
E1b, Attachment 2
Workshop Packet Page Number 23 of 35
11/23/2015
2
Organizational Chart
2016 Budget
E1b, Attachment 2
Workshop Packet Page Number 24 of 35
11/23/2015
3
Department Objectives = Strategic Plan
Financial Sustainability
Coordinated Communication
Effective Governance
Targeted Redevelopment
Operational Effectiveness
2016 Budget
$331,670
Charitable
Gambling
9.0%
City Council
48.8%
Maplewood
Area EDA
41.5%
Police Civil
Service
Commission
0.6%
Total By Program
E1b, Attachment 2
Workshop Packet Page Number 25 of 35
11/23/2015
4
2016 Budget Summary by Program
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Program ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
Charitable Gambling 28,536 28,427 30,000 30,000 0.0%
City Council 144,870 156,121 154,370 161,940 4.9%
Human Rights Commission 507 0 0 0 N/A
Maplewood Area EDA 12,871 81,530 137,370 137,580 0.2%
Police Civil Service
Commission 6,644 0 2,150 2,150 0.0%
Totals 193,428 266,078 323,890 331,670 2.4%
2016 Budget Summary by Classification
Include notes on any significant changes from previous years.
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Classification ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
Personnel Services 65,768 66,025 88,660 90,490 2.1%
Commodities 3,467 4,831 5,300 5,300 0.0%
Contractual Services 111,818 195,222 129,930 135,880 4.6%
Capital Outlay and
Depreciation 12,375 0 100,000 100,000 0.0%
Other Charges 0 0 0 0 N/A
Totals 193,428 266,078 323,890 331,670 2.4%
E1b, Attachment 2
Workshop Packet Page Number 26 of 35
11/23/2015
5
2016 Budget Summary by Fund
2013 2014
2015
2016
PERCENT
ORIGINAL OVER(UNDER)
Total By Fund ACTUAL ACTUAL BUDGET BUDGET 2015 BUDGET
Charitable Gambling Tax Fund 28,536 28,427 30,000 30,000 0.0%
General Fund 152,021 156,121 156,520 164,090 4.8%
Maplewood Area EDA 12,871 81,530 137,370 137,580 0.2%
Totals $193,428 $266,078 $323,890 $331,670 2.4%
General Fund Revenues
2013 = $ 90 actual
2014 = $ 0 actual
2015 = $ 0 est.
2016 = $ 0 est.
Includes: Donation.
E1b, Attachment 2
Workshop Packet Page Number 27 of 35
11/23/2015
6
QUESTIONS
COMMENTS
CONCERNS
Legislative Department
2016 Budget
E1b, Attachment 2
Workshop Packet Page Number 28 of 35
E1c
MEMORANDUM
TO: City Council
FROM: Melinda Coleman, City Manager
Gayle Bauman, Finance Director
DATE: November 17, 2015
SUBJECT: 2016 Proposed Budget Presentations
c. 2016 Budget Summary
Introduction
A maximum tax levy for 2016 of 4% was adopted and filed with the County in September 2015.
The City Manager, Finance staff, and department heads have been actively engaged in
planning and preparing the 2016 budget, which funds all City operations and functions. As we
continue to look for program efficiencies prior to the adoption of the final budget in December,
input is needed on what the ultimate objective of the council is.
Budget Planning
Department Heads, along with the City Manager and Finance Director have been focused
on the following:
The need to control and/or reduce costs
Assessment and consideration of new sources of revenue
Review of all existing City services for possible service delivery changes
Analysis of inter-departmental and inter-governmental service and/or resource sharing
Identification of critical needs in City-owned buildings and facilities
Department Heads are looking at methods of addressing structural budget challenges in a way
that is sustainable and makes increases in the City property tax levy based upon need and
responsible decision-making.
Governmental units of all sizes and circumstances face challenges, but for largely developed
and established communities like Maplewood, the challenges are somewhat unique.
Maplewood has very few areas within its boundaries that offer tax generating development
opportunities.
The City’s Budget
The budget is composed of a number of different funds, the largest of which is the General
Fund. The General Fund is the primary operating fund of the City and includes services such as
police, fire, public works, parks maintenance, community development, citizen services and
administration. There are essentially two sources of revenue that fund the General Fund budget
– the property tax levy and revenues from other sources, such as fees, licenses, permits, fines,
charges for services, etc.
Workshop Packet Page Number 29 of 35
E1c
Department requests for 2016 in the General Fund are $536,570 more than the 2015 budget. A
majority of this increase ($322,170) is in personnel services. Union contracts are one of the
reasons for this increase. Other requests include additional full time staff for the Fire
Department, additional overtime for the Police Department to provide some more targeted
policing services and to train officers as first responders, and the addition of a communications
position. The next highest increase is in contractual services ($249,040). After taking all the
department requests into consideration and calculating projections for 2016 revenues, the
General Fund requires a tax levy increase of approximately $662,000 to maintain its current
fund balance level of 40% of operating revenues.
Tax Levy
Based on requests made during the preparation of our Capital Improvement Plan, we continue
to have a need for capital projects such as street improvements, parks, redevelopment and
investment in city facilities. Over half of the City’s tax levy increases during the past 8 years
have been dedicated to debt service costs while only about 1/5th has been applied to General
Fund operations. Tax levy increases have not been able to keep up with the growth in
operational costs due to the need for infrastructure improvements and redevelopment. The
proposed 2016 tax levy currently sits as follows:
FUND
2015 LEVY
2016
PROPOSED
LEVY
$ CHANGE
% CHANGE
Debt Service $4,792,820 $4,792,820 $0 0.0%
CIP Fund 140,000 42,660 (97,340) -69.5%
PD Squad & Equip Fund 255,000 300,000 45,000 17.6%
Street project deficits 250,000 250,000 0 0.0%
Fire Truck Replacement 0 60,000 60,000 100.0%
Redevelopment Fund 0 25,000 25,000 100.0%
EDA Fund 89,270 89,270 0 0.0%
General Bldg Replacement 0 50,000 50,000 100.0%
Ambulance Service 335,000 310,000 (25,000) -7.5%
Community Center 500,000 500,000 0 0.0%
Recreation Programs 160,000 200,000 40,000 25.0%
General Fund 12,469,520 13,131,520 662,000 5.3%
$18,991,610 $19,751,270 $759,660 4.0%
With this increase, taxes as a percentage of total revenues is increasing slightly from 44.3% in
2015 to 45.8% in 2016 as shown by the following graphs.
Workshop Packet Page Number 30 of 35
E1c
Taxes
44.3%
Special
Assessments
3.5%Licenses and
Permits
2.8%
Intergovernmental
Revenue
7.2%
Charges for
Services
35.6%
Fines and
Penalties
0.5%
Miscellaneous
6.1%
2015 BUDGET
Taxes
45.8%
Special
Assessments
3.1%Licenses and
Permits
2.7%
Intergovernmental
Revenue
7.2%
Charges for
Services
34.8%
Fines and
Penalties
0.6%
Miscellaneous
5.8%
2016 BUDGET
Workshop Packet Page Number 31 of 35
E1c
Impacts on Median Valued Home – City Tax only
Based on information received from Ramsey County on November 16, 2015, a median valued
home in Maplewood is estimated to increase in value by 1.9%, from $187,300 to $190,800. The
annual impact of different levels of the City levy increase to a median valued home is as follows:
LEVY HOME VALUE CITY TAX $ %
CHANGE 2015 2016 2015 2016 CHANGE CHANGE
0% $ 187,300 $ 190,800 $ 790 $ 783 $ (7) -0.8%
1% $ 792 $ 2 0.3%
2% $ 801 $ 11 1.4%
3% $ 810 $ 20 2.6%
4% $ 819 $ 29 3.7%
Impacts to Properties from Proposed Total Tax Levy
Based on information received from Ramsey County on November 16, 2015, the maximum tax
levies adopted by all taxing districts (County, City, School and Miscellaneous) would have the
following effects on different property types within Ramsey County.
Residential – 39.9% of residential properties throughout the County will have property tax
decreases. The median change in residential property taxes in the County is +2.0% or a $48
increase. 43.5% of Maplewood residents are projected to see no increase or a decrease in their
property taxes.
Commercial/Industrial – 85% will have decreases in property taxes compared to 2015
throughout the County. The median change in commercial/industrial property taxes in the
County is -3.1% or a $250 decrease.
Apartments – 52.6% will have decreases in property taxes compared to 2015 throughout the
County. The median change in apartment property taxes in the County is -0.5% or a $6
decrease.
Fund Balance/Reserves
In keeping with City Council established priorities, Maplewood has a healthy fund balance of
40% of operating revenues. This level of a fund balance is crucial to the economic health and
viability of local units of government. A City’s bond rating is, in part, based on the fund balance
or reserves. The fund balance also helps a City manage cash flow and emergency needs.
Next Steps
A public hearing on the 2016 tax levy and budget is set for December 14, 2015. Following the
public hearing, Council will need to adopt a tax levy for 2016 which will support the City’s 2016
Budget. Staff will be prepared to discuss potential cuts needed to the proposed budget if a levy
of less than 4% is preferred.
Workshop Packet Page Number 32 of 35
E1c
Recommendation
Staff seeks Council guidance around priorities and considerations for the “final tax levy” for
2016. The final staff recommendation will be based upon feedback from the Council.
Attachment
1. Worksheet on current levy proposal
2. General Fund projections
Workshop Packet Page Number 33 of 35
E1c, Attachment 1
2015 LEVY 18,991,610
Increases for:
General building replacement fund 50,000
Police vehicles and equipment fund 45,000
Fire truck replacement fund 60,000
Redevelopment fund 25,000
Recreation Programs fund 40,000
General Fund expenditure increases 536,570
Maintain fund balance in General Fund 206,160
July 4th city event 8,500
Decreases for:
Reduce Ambulance Service levy (25,000)
Reduce CIP Fund levy (97,340)
Projected increase of General Fund other revenue sources (89,230)
Current Proposal 19,751,270
4.0%
Workshop Packet Page Number 34 of 35
GENERAL FUND Estimated Budget
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Taxes 11,972,323 12,633,276 12,294,789 12,260,851 12,148,784 12,359,260 13,012,010 13,342,710 14,007,780 14,218,360 14,745,030 15,074,310
Special assessments 31,537 20,365 25,106 430 99,940 800 800 500 500 500 500 500
Licenses and permits 1,131,215 1,158,253 1,501,875 1,255,644 2,274,134 1,226,520 1,242,340 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Fines and forfeits 225,774 257,301 272,808 270,308 236,295 229,000 229,000 230,000 230,000 230,000 230,000 230,000
Intergovernmental 879,306 996,468 872,791 1,079,224 870,239 883,510 909,710 900,000 900,000 900,000 900,000 900,000
Charges for services 3,419,476 3,654,689 3,515,821 3,627,478 3,392,814 3,204,650 3,251,820 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000
Miscellaneous 162,067 69,170 160,018 203,089 139,652 215,750 210,490 160,000 160,000 160,000 160,000 160,000
TOTAL REVENUES 17,821,697 18,789,522 18,643,207 18,697,023 19,161,857 18,119,490 18,856,170 19,233,210 19,898,280 20,108,860 20,635,530 20,964,810
Personnel services 13,050,795 13,203,716 13,233,569 13,432,005 13,642,897 13,664,600 14,122,690 14,405,140 14,693,240 14,987,100 15,286,840 15,592,580
Commodities 704,409 868,588 848,534 1,072,816 814,851 881,500 845,860 862,780 880,040 897,640 915,590 933,900
Contractual services 3,042,327 3,067,365 3,270,185 3,643,637 3,619,688 3,607,820 3,856,860 3,934,000 4,012,680 4,092,930 4,174,790 4,258,290
Capital outlay 165,087 194,098 233,947 280,865 175,799 0 0 0 0 0 0 0
Other charges 37,819 93,604 29,045 26,347 29,093 32,000 32,000 32,640 33,290 33,960 34,640 35,330
TOTAL EXPENDITURES 17,000,437 17,427,371 17,615,279 18,455,671 18,282,329 18,185,920 18,857,410 19,234,560 19,619,250 20,011,630 20,411,860 20,820,100
Sale of Capital Assets 76,292 59,822 45,173 46,631 10,908 29,240 29,240 15,000 15,000 15,000 15,000 15,000
Transfers In 63,577 0 5,000 0 0 0 0 0 0 0 0 0
Transfers Out (155,411) (794,502) (592,012) (692,156) (553,358) (619,500) (28,000)(28,000) (28,000) (28,000) (28,000) (28,000)
TOTAL OTHER (15,542) (734,679) (541,839) (645,525) (542,450) (590,260) 1,240 (13,000) (13,000) (13,000) (13,000) (13,000)
CHANGE IN FUND BALANCE 805,719 627,472 486,089 (404,172) 337,079 (656,690)0 (14,350) 266,030 84,230 210,670 131,710
FUND BALANCE 7,317,855 7,945,327 8,431,416 8,027,244 8,364,322 7,707,632 7,707,632 7,693,282 7,959,312 8,043,542 8,254,212 8,385,922
FUND BALANCE % REVENUES 41.1% 42.3% 45.2% 42.9% 43.7% 42.5% 40.9%40.0% 40.0% 40.0% 40.0% 40.0%
CITY TAX LEVY 16,670,046 17,503,454 17,853,523 18,528,400 18,528,400 18,991,610 19,751,270 20,081,970 20,747,040 20,957,620 21,484,290 21,813,570
5.0% 5.0% 2.0% 3.8% 0.0% 2.5% 4.0%1.7% 3.3% 1.0% 2.5% 1.5%
Revenue Assumptions
Property tax revenue is plugged to maintain a 40% fund balance level.
Expenditure Assumptions
Current expenditures - factor in a 2% increase each year.
Capital outlay expenditures are accounted for in Capital Project Funds.
5 year average increase in tax levy = 2% per year
Projections
History has shown that total revenues other than property taxes have
remained flat when analyzed over an extended period of time. There are
spikes when building activity increases, but the City will utilize this
revenue to offset economic downturns and capital items.
The City Tax Levy figure does not take into account any changes needed
in the debt or capital levy's. E1c, Attachment 2 Workshop Packet Page Number 35 of 35