HomeMy WebLinkAbout2002 12-02 City Council PacketAGENDA
MAPLEWOOD CITY COUNCIL
7:00 P.M. Monday, December 02, 2002
Council Chambers, Municipal Building
Meeting No. 02 -26
A. CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL
D. APPROVAL OF AGENDA
E. PUBLIC HEARINGS
. 1. Proposed 2003 Budget and Tax Levy
F. 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 CIVILITY FOR 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. e/.
AGENDA REPORT
TO: City Manager
FROM: Finance Director
RE: PUBLIC HEARING ON PROPOSED 2003 BUDGET AND TAX LEVY
DATE: November 26, 2002
A public hearing on the proposed property taxes and budget for 2003 has been scheduled
for December 2 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 9 if additional time is needed.
On September 3 the City Council made the following changes to the proposed budget:
1 -The tax levy was increased by $181,659 to finance an increase in the Fire Department
budget for the firefighters pension due to increases in the pension benefit and decreases
in investment income.
2 -The tax levy was increased by $317,271 to finance a p robable reduction in state LGA.
On October 14 the City Council made the following additional changes to the proposed
budget when the sewer rates for 2003 were approved:
3- Issuance of sewer revenue bonds to finance unassessed sewer system improvements
for two projects.
4 -Delay implementation of the sump pump replacement program.
5- Revision of the proposed sewer rate increase to 14.5 %.
These changes affect the budget for the General Fund and Sanitary Sewer Fund as
indicated in the attached summary page for each fund.
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. Please not that page A -1
includes the phone number for the Ramsey County Assessor's office and the procedure to
follow if a person thinks their property is incorrectly assessed. Page A -4 is a listing of
property tax changes on homes with market values from $70,000 to $160,000.
State law requires that cities adopt their 2003 budget and property tax levy at a subsequent
public hearing. Therefore, another public hearing has been scheduled for December 9 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 2.
P \agn \2003budgethearingl.doc
Exaenditures:
Community Development
1,028,270
REVISED
Finance
2003
COUNCIL
2003
GENERAL FUND
BUDGET
REVISIONS
BUDGET
Revenues:
2
2
Taxes - current
$8,358,890
$498,930
$8,857
Taxes - other
175,770
175,770
Special assessments
48,130
48,130
Licenses and permits
1
1,050
Fines and forfeits
179,830
179,830
Intergovernmental
1
(317
1
Charges for services
3
Excess (deficit) of revenues over
3
Miscellaneous
420,890
expenditures
420,890
Total revenues
15,175,750
181,660
15,357,410
Exaenditures:
Community Development
1,028,270
1
Finance
580,420
580,420
Fire
1,399
181,660
1
General Government
2
2
Human Resource
287
287,790
Parks and Recreation
1
1
Police
5,981,720
5,981,720
Public Works
2
2,641,910
Total expenditures
15,963,560
181,660
16,145,220
Excess (deficit) of revenues over
expenditures
(787,810)
0
(787,810)
Other financing sources (uses):
Operating transfers in (out):
Recreation Programs Fund
(271,670)
(271,670)
Charitable Gambling Fund
0
0
Community Center Fund
0
0
Total other financing sources (uses)
(271,670)
0
(271,670)
Net increase (decrease) in fund balance
(1
0
(1
Fund balance - January 1
6
6
Residual equity transfers in (out):
Fire Safety Projects Fund
0
0
Data Processing Fund
0
0
Capital Projects Fund
0
0
Debt Service Funds
0
0
Public Improvement Projects Fund
0
0
Fund balance - December 31
$5472535
$0
$5472535
Fund balance /revenues 36.1% 35.6%
Fund balance /expenditures 34.3% 33.9%
PABUDDOCTUND101
REVISED
SANITARY SEWER FUND 2003 COUNCIL ORIGINAL
BUDGET REVI SIONS BUDGET
Operating revenues:
Sewer permits
$17,950
$17,950
Sewer billings
3
($440
3
Connection charges
0
1 0
Total revenues
3
(440,970)
3,419,660
Operating expenses:
Administration
274,810
274,810
j Billing
44
44,010
Sewage treatment
2,078,690
2
Maintenance
790,060
(100,000)
690
Contingency
53
53,230
Total expenses
3,240,800
(100,000)
3
Operating income (loss) before
other revenues (expenses)
i
619,830
278,860
Other revenues (expenses):
Special assessment penalties & interest
670
670
Investment earnings
0
0
j Miscellaneous revenues
7
7,850
Gain /(loss) on disposal of property
0
0
Depreciation
(287
(287
Investment management fees
0
0
Net total
(278,860)
0
(278
Net income (loss)
340,970
0
Credit from transfer to contributed capital
265,340
265,340
Increase (decrease) in retained earnings
606,310
265,340
Retained earnings - January 1
823
587
1
Cummulative effect of change in
accounting priniciple -
0
0
Residual equity transfers in (out):
Internal Service Fund
0
0
Public Improvement Projects Fund
(500,000)
500
0
Capital Projects Fund
0
0
Retained earnings - December 31
$929,501
$1,087,216
$1
Retained earnings /operating expenses
28.7%
53.4%
3 -112
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 2003.
SPENDING: The total budget amounts below compare the city's 2002 total actual budget with the
amount the city proposes to spend in 2003.
2002 Total
Actual Budget
$33J68,930
Proposed 2003
Budget
$38
Change From
2002- 2003
+14o7%
TAXES: The property tax amounts below compare that portion of the current budget levied in
property taxes in the city of Maplewood for 2002 with the property taxes the city proposes to collect
in 2003.
2002
Property Taxes
$10,348,230
Proposed 2003
Property Taxes
$11
Change from
2002 -2003
+15,3%
LOCAL TAX RATE COMPARISON: The following compares the city's current local tax rate, the
city's tax rate for 2003 if no tax levy increase is adopted, and the city's proposed tax rate for 2003.
2002 2003 Tax Rate if
Tax Rate NO - Levy Increase
35.436% 30.842%
2003 Proposed
Tax Rate
36,320%
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 2003 property taxes. The hearing will be held
on:
Monday, December 2, at 7:00 p.m.
City Council Chambers
Maplewood City Hall
1830 East County Road B
Maplewood
You are also invited to send your written comments to:
Finance Director, City of Maplewood, 1830 East County Road B
Maplewood, MN 55109
CITY OF MAPLEWOOD
2003 PROPOSED PROPERTY TAXES
AND
2003 PROPOSED BUDGET
PUBLIC HEARING
DECEMBER 2, 2002
P:\FINANCE\WORD\BUDDOC\BDGTHEAR.DOC
Your Property's 2002 Estimated Market Value
In March you received from Ramsey County a NOTICE OF YOUR PROPERTY'S 2002
ESTIMATED MARKET VALUE. Please read this notice. It will affect how much property taxes you
will pay in 2003.
Every year Ramsey County sends you a notice advising you of the estimated value of your property.
Since property taxes are based on the value of your property, your property taxes will increase as the
value of your property increases. The value on the notice is the amount that the county assessor estimates
your property would sell for based on sales of property in your area.
If you think your property is incorrectly assessed, follow these steps:
Talk to County Appraisal Services Staff
• Call 266 -2000
• Check the facts
• Review sales of similar neighboring
properties
J, FeBoard al to County "Board of Equalization"
ile an appeal by April Deadline
IF NOT SATISFIED meets late in June
ppeal in person or by letter
all County Assessor's Office for information
IF NOT SATISFIED
TA
F Appeal to the Minnesota Tax Court
he deadline for filing is March 31 of the year
he taxes are due
�FA'
Regular Division
• Attorney recommended
• Decisions appealable to Supreme Court
• Can be used for any property
• Property assessed over $100,000 must file here
N
Small Claims Division
(You must go through the Board of Equalization process first.)
• Attorney not necessary
• Decisions are final
• Use for your home, or any property assessed
under $100,000
P:\FINANCE\WORD\1\40TION\NEWS0302.DOC
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC A -1
I -minus x times I
= equals equals
I = equals.
YOUR PROPERTY TAX=
Your Property's Market Value X Class Rate(s) X " Tax Capacity R=
Source: "Understanding Your Property Taxes. 1994. Edition." Minnesota Taxpayers Association, p. 6
P:\ FINANCE \WORD \BUDDOC\BDGTHEAR.DOC
A -2
FORMULA FOR 2003 PROPERTY TAXES
Example of fax calculation for a home using the proposed 2003 fax rate. Tax rate is for a
home in ISD 622 and the Metro Watershed.
S tep 1 - Calculate Tax Caoacitv:
MARKET STATE HOMESTEAD
VALUE X FORMULA =
$145,800
$145,800 X .01 =
TAX
CAPACITY
$1,458
Step 2 - Calculate Tax based on Tax Q city:
TAX TAX PROPERTY
CAPACITY X RATE = TAX
$1,458 126.670 $1,846.85
Step 3 - Calculate Tax based on Market Value:
MARKET TAX TAX
VALUE X RATE = CAPACITY
$1 45,800 0.02953 $43.05
Step 4 - Calculate Total Tax:
NET TAX BASED TAXES BASED TOTAL
ON TAX CAPACITY + ON MARKET VALUE = TAX
$1,846.85 $43.05 $1 ,889.90
Steg 5 - Calculate Homestead Credit:
MARKET HOMESTEAD
VALUE X FORMULA = CREDIT
$145..800
$76,000 X .004
$69,800 X .009
$304.00
-62.82
$241.18
Step 6 - Deduct Homestead Credit:
TOTAL HOMESTEAD
TAX — CREDIT =
$1,889.90 $241.18
N ET
T A \ / r - n
$1, 648.72
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC A_3
ESTIMATED 2003 CITY PROPERTY TAX CHANGES
TAX RATE CHANGES
Estimated
Payable 2002
Payable 2003
Percent
Local Tax Rate
Local Tax Rate
Change
Tax rate on tax capacity
35.436%
36.320%
+2.5 %
Tax rate on market value for open
0.03133%
0.02953%
-5.7%
space and fire safety bonds
PROPERTY TAX CHANGES ON HOMES
Estimated
Tax Before
Increase
Market
Tax
Homestead
Increase
(Decrease)
Value *
Capacity
Credit
Amount
Percent
$ 7000
$ 700
$275
$30
12.2%
10000
1,000
393
43
12.3%
14500 **
1
573
61
11.9%
160,000
1
628
66
11.7%
*The values listed for 2003 are 10.0% more than for 2002, which was the average change
according to the Ramsey County Assessor's Office.
"Median value home in Maplewood
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC A -4
MAPLEWOOD
HOMEOWNER
COSTS FOR SERVICES - 2003
Monthly
Service Bill
Rubbish removal $20.03
Phone service $23.83
Cable television $38.08
City property taxes $47.75*
*Breakdown of city taxes on median value home:
Police protection $13.07
Debt service on bond issues
$9.32
Public works
$5.78
General government
$5.64
Fire protection
$3.46
Parks and recreation
$3.20
Capital improvements
$3.13
Community development
$2.25
All other services
$1.90
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC A -J
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 Ml-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 -4444;
• on the internet at http: / /www.taxes.state.mn.us; or
• by writing to:
Minnesota Tax Forms
Mail Station 1421
St. Paul, MN 55146 -1421
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC A -6
PRELIMINARY 2003 TAX LEVY ESTIMATE
General Fund:
Gross l evy
Debt Service Funds:
Gross I evy
2002 2003 Chan
Lem Lev i Amount Percent
$8,367,520 $8,942,250 (A) $574,730 6.9%
$1,686,910 $2,191,930 (B) $505,020 29.9%
Gross levy $77,000
Community Center Operations Fund:
Gross levy $60,000
$373,700 (C) $296,700 385.3%
$75,000 (C) $15,000 25.0%
Gross levy $106,800 $90,000 (C) ($16,800) - 15.7%
Housina Replacement Fund:
Gross levy
$0
$50,000 (C)
$50,000
N/A
Park Development Fund:
Gross levy
$50,000
$205,000 (C)
$155,000
310.0%
Totals -All Funds:
Gross levy
$10,348,230
$11,927,880
$1,579,650
15.3%
Levy Limit:
Gross levy
10,348,230
11,927,880
$1,579,650
15.3%
Less debt service levy
(1,686,910)
(2,191,930)
($505,020)
29.9%
Less PERA levy
(21,160)
(23,105)
($1,945)
9.2%
Net levy subject to limit
8
. ......................
9
$1,072,685
12.4%
Levy limit
9
9
$152,348
1.6%
Amount over (under) limit
(: 92: 0.':. 3: 3: 9.)::::::::::::.::..............................
.......::::::::::::.:.:.:. ( 2
$920,337
- 100.0%
(A)Amount of levy needed assuming a 99% collection rate
(B)Amount per the proposed 2003 Debt Service Budget
(C)Amount per 2003 -2007 CIP
C: \EXCEL \BUDGET \03TAXEST DATE: 25- Nov -02
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC 7
TAX LEVY FOR 2003 UP 15.3%
■ Total tax levy increase is $1,579,650
— Debt service tax levy up $505,020
— Levy of $317,271 for state aid decrease
— Capital improvement tax levy up $296,700
— Firefighters pension tax levy up $182,789
— Park development tax levy up $155,000
— Other items up $122,870
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC o
THE FOLLOWING PAGES
ARE AN EXCERPT FROM
THE PROPOSED
2003 BUDGET
P:\ FINANCE \WORD \BUDDOC \BDGTHEAR.DOC
s
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• < 3sys3.r: # #3s >f#fs } #:f £ > #£ # #3 # %ii ? #3i < > # {i #£#>i; �tsu££3,' •s :,:. #•,:NK %.::;3s.; :s��`:�.: #:s:
'ogerther We Can
July, 2002
Honorable Mayor and Council Members:
In compliance with State Statutes, I am pleased to transmit the proposed 2003 Budget for the City of
Maplewood. The major. objectives of the 2003 Budget are designed to help the Council accomplish the
goals and objectives established in April, 2002. 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 an emphasis in development of a strong infrastructure,.
redevelopment of residential properties, improvement of the City's parks and. trails and addressing they
City's environmental issues. The aforementioned objectives and many others are part of a larger all
encompassing goal of working effectively and efficiently. This is reflected in the ability of the City to expand
services at a minimal cost to residents and stay within the levy limitation. Other objectives and detail are
listed on the following pages.
The Finance Director and his staff using input from the department heads prepared this document. It is in a
format similar to the 2002 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 2003
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 2003 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 2003. The Debt Service section focus is on the scheduled bond issue
principal and interest .payments due in 2003.
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 Iive..
The Council's cooperative effort in the review and adoption of the 2003 Budget will be appreciated. I would.
also like to. express my appreciation to all City personnel who assisted in the preparation of the 2003
Budget.
S' cerely,
'Chard ursman
City Manager
OFFICE OF TH C ITY MANA 65 1-770-4524
C rnr OF MAPLEWOOD • 1 830 EAST COUNTY ROAD B • MAPLEWOOD MN 55109
1 -5
BUDGET OVERVIEW
During. preparation of the 2003 Budget, city staff focused on the long
MAJOR range goals established at a retreat on April 3, 2002 by the City Council
INITIATIVES and management staff. The goals were established after: issues and
opportunities were identified and prioritized. Most of the major initiatives
included in the 2003 Budget are based on these long- range goals. The
major initiatives are as follows:
-1. The Public Improvement Projects Fund budget will increase by
$2,646,060 to finance infrastructure replacement.
2. The Park Development Fund budget will increase by $399,020 to
improve the . city's parks and trail system.
3. Property taxes will be levied - for the first time for the Housing
Replacement Fund to provide $50,000 to redevelop residential
properties.
4. A comprehensive storm water plan will be prepared to address
some of the city's environmental. issues.
.5. The Sanitary Sewer Fund will finance a new program to reduce
sump pump connections to the sanitary sewer system.
One.of the long - range goals established on April 3, 2002 was to develop
l a strong public works infrastructure (streets, storm sewers, etc. gp ) . In order
to continue work on this goal, the 2003 budget for the Public
Improvement Projects Fund will increase by 78% from $3.4 million to
$6.0 in the Capital Improvements Budget.
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
budget will increase by $399,020 to $551,040. The three projects that
are included in the five -year Capital Improvement Plan for 2003 will be
financed by the budget. These projects are the Afton Heights Park
improvements, Joy Park trail and South Beaver Lake trail. The tax levy
for the Park Development Fund will increase by $155,000 in 2003.
Property taxes will be Levied for the first time for the Housing
Replacement Fund to provide $50,000 to redevelop residential
properties. The tax revenue along with revenue from the sale of the
Larpenteur and Van Dyke properties will finance the $343,280 Housing
Replacement Fund budget for 2003 which will be used to purchase
additional properties.
Another major initiative is preparation of a comprehensive storm water
plan to address some of the city's environmental issues. This will require
1 -6
.the help of a consultant and will cost approximately $80,000. The Clean
Water Act of 1991 requires that the city prepare an application for a
National Pollution Discharge :Elimination. Standard permit by March 10
2003. Failure to meet this deadline would make the city subject to
significant fines. Additional increases in future budgets for storm water
and environmental maintenance will be required in conjunction with the
_permit.
The last major initiative is a new program to reduce sump pump
connections to the sanitary sewer system. This program will cost
$100,000 and will be financed by' the Sanitary Sewer Fund. It will
eliminate excess water from the sewer system and decrease sewage
treatment costs. The cost savings should produce a pay back of the
$100,000 .program within 3 -5 years.
The, City's tax -levy for 2003 is .$11,428,9 :50 which is 10.4% higher than
TAX LEVY
2002. This is despite a budget preparation process that involves close
FOR 2003 -
scrutiny of proposed expenditures and a constant search for non -tax
10.4%
revenues.
HIGHER
The tax levy increase is $1,080,720 and most of the increase is-for debt
service ($505,020) and the Capital Improvement Projects Fund
:
($296,700). Without these two items, the tax levy increase would be
2.7 %. The increase for debt service is due to (a) higher principal and
interest. payments caused in part by the Dispatching Equipment
Certificates that were issued last year and {b) a decrease in tax
increment monies available for debt service. The increase in for the
Capital Improvement Projects Fund is due to an increase in planned
expenditures.
Approximately 74% of the 2003 tax levy is for operations financed by the
General Fund. Most of the remaining levy (19 %) is for debt service costs
on bond issues.
The tax bill adopted by the legislature in 2001 imposed property tax levy
STATE
limits for two years. The limit for 2003 is based on the lev limit.for 2002
Y
TAX LEVY
with an- adjustment. for growth and inflation. The 2003 Budget includes a
LIMIT LAW
- property tax lev that is approximately $457,000 under the levy limit.
Y pp Y Y
The city will not be informed by the state. of its levy ,Limit until
September 1. Budget adjustments will be needed if the levy Limit is Less
-
than the estimate used for budget preparation.
1 -7
In 2002 the- City received 32.7% of the property taxes on property within
Y p p Y
CITY th City. The following illustration indicates the allocation of property tax
RECEIVES= dollars by government type.
-
32. OF
..... .. . .... .
TAXES
,
`•: :.: J.W.....
yy �<
f
F ;.:ry . . � .I W 5:.� :' •Yl.. . rte a ,�i• S'fC 10 •>NO%4:Yi !J
J•
r
:r.
... r r. : .,; :. :,..:; <,. .. ::, ..::,.. .:: :[:.r,::: .. ..:. r::.:.. }::•::. }:::. };• •:.;} rya. .
..: :.:.. '$ • }:[( < � {:: J },': ; :� - +' as }: r5�'T,
?:3 a• fry !si fiC:;:: �.. <
r.,. !. r. •. ; v5} v i -�( ' - �:': •r:!i i5 + •• 5J9:5 1L7���.i. l'i�'1�Y�
- ...:.:.: .. .i ..... .. ..... :::;;. } }::J• ;> - '•} •. ..: ::::: -. .. r � '' ..:# .) i%F{�i : •J ,x:;.::. J,�, ..'. fc f, r : - r:; , �� `� r .F; • :' + +'r '• �: r }. -
}.r::. }..::r •ri IF'4 } }r + • r, $%:':5' S 7,
{..:: -:. • /ir''..}-0��
)y S' • •r
}••
6 J fsa 1! Nr}!:. r 1 J ::5 J .•a
--g
J
....... ...
® w {. ...:.., ,,,.,. ;.. � ; <w•a• 9'� • .!R%J'.:" w •:nub?,) Y5 .
•
.,�}':'v.„ .r?L:. fay >. ., �.......'�.:.. ,.:a.ar:.ua.:;3,t::. 't�cl <rf'Y,C• <b•43'44F � 4.
...........
,.::.•. .. rr • • ...:•fry. ,,<;!., a: [•,•" %LY,a -:. • •r <: w}}'.!..
L . J�ar AG£ • . . ,.,�.4'qL. a .'<�•..<.:,9 <,r< -.: n : }::. : -:: -. : a: •? - :. ... :•�`.;' •i',,
. ^::::. .: y . .. ry �a�!..- .•54!..... ..::.., .. ¢9:`. 5 v.,. .;.,,. -:.: : {.. :x �! [ ,. .:,... ;. ::.: ��^ aF,;y!tL: .J.;2'
:•i :, Yn yry {. f.1 « ::'S ti }t'$ Ia ' NKf ar r
, .r .riMm ; }1 r } � 'i ;' :•} y .:S;Y•. .S !tg'' �i� •r,�w'"fr.� K ,r...
5.0% 32..7% 16.1% 46.2%
Other City L 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 2003- Budget are 14.7% higher than 2002. The
breakdown by section is listed in the following table:
2003
REVENUES AND EXPENDITURES BY SECTION
Comparison of 2002 and 2003 Budget
REVENUES
EXPENDITURES
Amount
Change
Amount,
Change
Operations
$27,188,560
7.4%
$28
6.3%
Capital Improvements
3
23.4%
7
75.6%.
Debt Service -
2
28.1
3
6.4%
Totals
$33
10.2%
$38,747
14.7%
OPERATING BUDGET
This portion of the budget covers basic City ervices such asl police
Y p ,
firefighting," street maintenance, recreation programs, park -maintenance,
planning, building inspections and aintenance. The expenditures
Y p
for the funds within this portion of the budget are grouped p
b Y de artment
and subdivided into divisions for each department. -Budget. performance
l
g p
is measured based on the accomplishment of the objectives for 2003
listed for each department and by, the percentage of budgeted
g
expenditures that are spent.
Operating budget revenues for 2003 are 7.4% more than 2002. The
OPERATING revenue category with the largest increase is the charges for service
g _ g -
BUDGET category which is up $1,054,870. Most of this increase ($0.7 million) is
REVENUES UP due to an increase in - sanitary sewer utility rates.
.7.4%
Revenues in the charges for service category include a planned
..AMBULANCE increase in ambulance rates effective January 1, 2003 as indicated in
RATE the following table. -
IwIn- onAC%n
The .2003 ambulance rates are based upon the average 2002
ambulance rates charged by other providers. Despite the increase in
rates revenues will be $183,790 less than 2002 because of Medicare
Taw changes. The new law will decrease revenues because it p rohibits
the city from collection of remaining ambulance bill balances after,
Medicare payments. Also, the new law requires that a second advanced
life support rate be added. Ambulance service revenues for 2003 are
ro'ectedtobe$1,138,010. p J
1 -9
Operating budget revenues for 2003 produced by utilit service char es
, Y g
UTILITY RATES. will total $4,088,990 which represents 1.5.0%. of the total.. operating
UP 26.4% budget revenues. Utility g service charges consist -of sewer service
charges ($3,842,680).and recycling charges .($246,310). Sewer rates
need to be increased by 29.4 %. to finance. the 2003. Budget for the
Sanitary Sewer Fund and replenish the fund's working capital. Most of
the revenues from the sewer rates finance the Metropolitan Council
sewage. treatment charges to Maplewood which will .be 64.1% of the
operating expenses for the Sanitary Sewer Fund in 2003. The sewage
treatment charges for 2003 are anticipated to be $2,078,69.0 which is
$88,730 =more than the ' 2002 e budget. The. Metropolitan Council sewage
g p g
treatment rates will increase by approximately 5.7% but this will be offset
by variations in annual sewage flow from Maplewood. Recycling charges
will not increase. because recycling- are .not anticipated to increase. l
The following table summarizes the proposed utility rate changes for an
average home.
It should be noted that the quarterly sewer and recycling charges have
been lower than 1999. (when they totaled $51.44) for the past three
- years.
Operating - budget expenditures for 2003 are $28.3 million, which is 6.3%
OPERATING higher than 2002. The largest expenditure increase is in the General
g p
BUDGET Government Department which is up $760,000.. Most of the increase
EXPENDITURES ($494,000 ).is in the Payroll Benefits Fund.
UP
6.3%
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
1 -10
DEMAND :FOR CITY SERVICES BASED ON' GROWTH
NON-
RESIDENTIAL GROWTH
RESIDENTIAL
- GROWTH
Valuation of
New Housing
Percent
Non- residential
YEAR
Units
Population
Change
Building Permits
1999
263
35
1.2%
$32
2000
129
.34
(2.3) %0
$35
2001
293
35
1.9%
$40,205,519
The population listed for 1999 and 2 are estimates. The population
for 2000 is from the U.S. -Census Bureau.
The average annual population increase between 1990 and 2000 was.
1.3 %..If this rate of increase continues, the city's population in 2002. will
be 36,067 and. 'in 2003 will be 36,536.
The number of full -time employees included in the 2003 Budget, is 169.
+2 This is an increase of two positions. The change in budgeted
FULL -TIME positions by department artment is as follows:
EMPLOYEES
+1.00 Police Department — A new police officer position has been
added.
+1.00 Public Works Department,- Two positions have been. added
(staff engineer position and engineering technician.) and the
Public Works Coordinator position has been eliminated through
attrition.
It is important to note that the cost of.the new engineering - positions will
be financed completely by increased revenues from engineering charges
to improvement projects.
1 -11
it
l
r
Approximately 56% of the Operating Budget is accounted for in the
56% OF
City's General Fund. Revenues ro'ected for 2003.will be 3.8 %o higher
p J
OPERATING
than the 2002 Budget. Expenditures will be 4.9% higher in 2003 than the
BUDGET IN
2002 Budget. The 2003 Budget for the General Fund is a deficit budget
g g
GENERAL FUND
as 2003 expenditures exceed revenues by $ Transfers to other
funds will increase this deficit to $1,059,480. The. deficit will be financed
by using part of the surplus fund balance.
The following shows sources and uses of funds for the 20:03 Budget,
compared to the 2002 Budget:
% CHANGE
2002 2003 INCREASE OVER 2002
BUDGET BUDGET (DECREASE) BUDGET
Sources of funds:
Current property taxes $8 $8,358,890 $75 0.9 %°
Other revenues 6 6 486,760 7.7%
Fund balance 781,930 1 277 35.5 %°
Total $15 $16,235,230 $839 5.5%
Use of funds:
Expenditures $15 $15,963,560 $744,530 4.9%
Net interfund transfers 176,840 271,670 94 53.6%
Total $15,395,870 $16 $839,360 5.5%
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 a.ppropriate 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 3.8% increase din General Fund revenues amounts to $561,810. The
GENERAL FUND*
largest increase is in the charges for service cate o which is u
gory p
..REVENUES
$297,310: 'In 2003 current ro ert taxes will be 55.1 % of total revenues
p p Y
.
for the General Fund. In 2002 property taxes were 56.7 % of the
3.8%
revenues.
1 -12
The largest increase is $321,620 in General Government and most of
this is to finance wage increases that will be negotiated with bargaining
units as their contracts expire on December 31, 2002,
On a per capita basis, General Fund expenditures will increase by 3.6 %
as indicated in the following table:
GENERAL FUND EXPENDITURES PER CAPITA
2000
2001
2002
2003
ACTUAL
ACTUAL
BUDGET
BUDGET
Expenditures
$13
$13,995,173
$15,219
$15,963
Population -
34,947
35
36
36
Per capita expenditures
$380
$393.
$422
$437
for General Fund
PERCENT CHANGES:
Percent change. in
o
6.3 /0
0
5.4 /0
0
8.7 /0
0
4.9 /o
expenditures
Percent change in
(2.3)%
0
0
1.3 /0
1.3%
population
- Per capita expenditures
o
8.6 /o.
0
3.5 /o
0
/0
0
3.6 /o
percent change
.7.4
Actual per capita expenditures for 2002 and 2003 may be significantly
different than the budget amounts as population changes are difficult to
estimate and expenditures are usually less than the budget.
1_13
An analysis of the General Fund cash flow for 2000 and 2001 -indicated
GENERAL FUND.
that the fund balance should be' 20.9 %0 of the revenues to finance cash
BALANCE
flow needs. The fund balance also needs to be large enough to finance
WILL- BE
unexpected expenditures that are in excess of the. General Fund
p p
36.1%
contingency account. Therefore, the budgeted 12 -31 -03 fund balance
g Y g
OF BUDGET
has been set at 36.1 % of 'the 2003 budgeted revenues. This should _
provide a sufficient balance to cover cash flow needs and unexpected
l
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 t0 Aa. The budgeted 12 -31 -02 fund balance was 36.0% of the
2002 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 2003 Budget implements the first ' year of the 2003 -200.7 Capital
l
Improvement Plan adopted by the City Council on May 13, 2002. This.
V five -year plan is updated annually through a comprehensive capital
needs planning process.
Revenues for 2003 in the Capital Improvements Budget are. $3,366,400
CAPITAL
and 23.4% more than 2002. This increase is caused primarily by an
IMPROVEMENTS
increase in ro ert taxes to finance improvement projects. Major
p p Y
REVENUES UP
revenue sources for the 2003 Capital Improvement Budget are taxes
23.4%
$1,069 450 inter overnmental revenue ($1,950 ,000 , and ), g )
miscellaneous revenues ($346,950).
The, largest Capital Improvement Budget expenditures planned for 2003
g p
CAPITAL
include improvement of Kennard area streets ($1,980,000), Hazelwood
IMPROVEMENTS
from County Road C to St. John's Boulevard ($1,500,000) and the
EXPENDITURES
Lar enteur- Parkwa lift station abandonment ($1,000.,000 The impact
p Y
UP 75.6%
of these. items on operating costs will not be significant. Total 2003
expenditures are $7,207,580 and 75.6% more than 2002. Most of the
increase is for public improvement projects.
1 -14
1 -15
DEBT SERVICE BUDGET
This portion of the budget covers the payment of principal and interest
DEBT
on the -City's bonded indebtedness. Each bond issue .. has a separate
SERVICE
debt service sinking fund.
REVENUES
UP 28.1%
Revenues for 2003 are 28.1 % more than 2002. ril : . t
prima y due o an
~inrease in property taxes. Major revenue sources, as in past years, are
property taxes ($2,170,020)., special assessments ($451,600), and
interest on investments ($43,540).
Expenditures for. 2003 are 6.4% more than .2002. The increase is due to
DEBT SERVICE
higher scheduled principal and interest payments. The anticipated, new
EXPENDITURES
debt issues for 2003 total $3,475,000 to finance public works
UP 6.4%
a improvements. At the end of - 2003, general long-term net debt able
p g g payable
will be $32,302,297 which is 4.2% more than projected for the end of
2002.
Operating Budget increases. in the future will continue. to exceed the
FUTURE
inflation rate because of g
p o p ulation growth and increases in commercial
GROWTH
development. The City has experienced slow steady population g rowth
WILL IMPACT
since 1990. Average e annual population ulation increases between 1990 . and
. g pp
OPERATING
o .. .
2000 were 1:3 /o. It is anticipated that population growth may continue at
BUDGET.
an - annual rate of 1.3% in 2002 and 2003. In 2001 the City issued
Y
_.
.building permits with a total valuation of $71.9 million. In 2000 the City
issued building permits with a total valuation of $57.4 million. Permit
values over the last 10 years have ranged from $38.8 million to $94.6
million.
-
Based on projections in the 2003 -2007- Capital Improvement Plan, the
CAPITAL
Capital Budget will range from $6.5 million to $9.5 million in 2004 - 2007.
IMPROVEMENT
- Major .factors affecting the capital budgets will be (a) al and
1 g p g residenti
EXPENDITURES
commercial growth and (b) the number of public improvement ro'ects
p 1.
IN
that are approved for construction. Bond issues and capital notes to
2004 -2007
finance the 2003 -2007 Capital.. Improvement rovement Plan total $20,640,000.
p p
1 -15
CITY. OF MAPLEWOOD, MINNESOTA
2003 BUDGET
MAJOR OBJECTIVES
Revenues Revenues
89.3% 85.7%
• 11•:'.•:•: oil
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•. f :ti f yrr ; {.1•'•111 % %•' :•r.•'r {'�•' :• : ; : ::•:%C; ,.;� f�:;:. ;'.•, :•, :;.•�;�;r : :• : %'r: % .•: x111 {:•'r: %: . :. {•rr. :•
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Bond Issue Proceeds
Bond Issue Proceeds and Surplus Balances
and Surplus Balances 14:3%
- 10.7%
Financing Sources Financing Sources
2002 Budget - $33.8 Million 2003 Budget - $38.7 Million
Capital Capital
Improvements Debt Service Improvements
9.2% 18.6% Debt - Service
• 8.3
Operations Operations -
73.1
Expenditures by Category Expenditures by Category
2002 Budget $33.8 Million 2003 - Budget - $38.7 Million
2 -2 .
The total current taxes of $11,314,670 account for 94.6% of the total tax revenue for 2003. ,
Collections for 2003 are .anticipated to be 99.0% 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:
Special assessment collections for 2003 will be 49.E %more than the 2002 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 g eneral 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
f Operating Budget. -Building permit fees generate most - (45.2 %) of the revenue in this
category. Revenue estimates assume that rates for business licenses and permits will be .
2 -3
Two items account for most of these revenues: state Local government aid (LGA) and street
construction, state aid. For the year 20.03, it is anticipated that LGA will be $ 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. For the year 2003, the City anticipates street construction. state aid of
$1,950,000 for various. construction projects. These revenues are in the Capital
Improvement Budget.
Charges for service consist of Community Center and recreation program fees, recycling
and sewer char es, miscellaneous department fees, and ambulance charges. Revenues
g p 9
from service charges will be 12.2 % more than the 2002 Budget due to (a) an increase in
sewer and recycling billing rates, (b) an increase in passport fees, and (c).higher
engineering fees.
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. Revenues from fines and penalties wi.11 be 4.1 %0 less
than budgeted .for 2002 . based upon average actual collections for 1999- 2001.
2 -4
• - W
S�
C
O
30
25
20
15.
10
5
-
0
CITY OF MAPLEWOOD, MINNESOTA
2003 BUDGET
REVENUE SUMMARY - ALL BUDGETARY FUNDS
-
PERCENT
.2002
2003
OVER(UNDER)
Total By Source
BUDGET
BUDGET
.2001 BUDGET
Taxes
$10,959
$11,955,670
C 9.1%
Special Assessments
335,680
500,400
49.1
Licenses and Permits
1,006,980
1,068,910
` 6.2%
Intergovernmental Revenue
3,397
3,602,680
. 6.0 %°
Charges for Services
.8,674,800
9,729,670
12.2%
Fines and. Penalties
187,500
179,830
-4.1%.
Miscellaneous
5,570
6 ;182,960
11.0%
Totals
30,133,570
33,220
10.2%
Total By Fund
Operating Budget:
Charitable Gambling Tax
57,840
57,880
0.1%
Community Center
2,051,050
2,146,600
4.7 %,
Data Processing
360
273
- 24.0%
Dental Self- Insurance
106,120
.0
- 100.0%
East County Line Fire
0
0
N/A
Enhanced, 911 Service
24,990
26,330
5.4%
General
14,613,940
-15,175,750
3.8%
:' Gladstone Fire District
0
0
N/A
Hazardous Materials
0
0
N/A
:.Housing Replacement
9,680
49,500
411.4%
Law Enforcement Block Grant -
17,000
16,770
-1.4%
Payroll Benefit
3,158, 840
3,761,310
19.1
Police Services Fund
4,980
0
- 100.0%
Recreation Programs
579,230
546,320
-5.7%
Recycling Program
328,330
317,830
-3.2%
Sanitary . Sewer
3,221,460
3,869,150.
20.1%
Vehicle and Equipment Maintenance
791,510
947,230
19.7%
Total Operating Budget
25,325,500
27
.7.4%
Capital. Improvements Budget:
Capital Improvement Projects
77
370,340
375.6%
Fire Safety. Projects
.0
0
N/A
Fire Truck Replacement
132
113
= 14.4%
-Historic Bruentrup Farm
0
0
NIA
Open.Space
0
0
N/A
- Park Development
146,670
460
214.2%
Public Improvement Projects
1,800,000
1,950,000
8.3%
Public Safety Dispatching Center
0
0.
N/A
Public Works. Building Addition
0.
0
N/A
Sewer Lift Station No. 9
0
0
N/A
Street Construction State Aid
8
. 9,000
7.7%
Tax Increment Economic Development District #1-4
0
0
N/A
Tax *Increment Economic Development District #1 -5
0
0.
N/A
Tax Increment Housing District #1 -1
.125,520
100,120
-20.2%
Tax - Increment Housing District #1 -2
179,440
138,350
- 22.9%
Tax Increment Housing District #1 -3
49,340
35,710.
- 27.6%
Tax .Increment Housing District #1-4
29,680
27,070
-8.8 %°
Tax Increment Housing District #1 -5
24,550
22,470
-8.5%
Tax Increment Housing District #1 -6
108,060
89
- 17.3 %°
Water Availability Charge - No. St. Paul
1
1
78.4 %
Water Availability .Charge - St. Paul
44,550
47,820
7.3%
Total Capital Budget
2,727 7 550
3
23.4%
Debt Service Budget:
Debt Service Funds.
2
2,665,160
28.1%
Grand Total
$30,133,570
$33
10.2%
2 -7
CITY OF MAPLEWOOD MINNESOTA
2003 BUDGET
REVENUE SOURCES AS PERCENT
OF TOTAL
2002 PERCENT
2003
PERCENT
SOURCE BUDGET Of TOTAL
BUDGET
OF TOTAL
Taxes $10,959,790 _ 36.4%
$1'1
36.0%
Special Assessments 335,680 1.1%
500
1.5%
Licenses - and Permits .1 3.3%
1. -
3.2%
f Intergovernmental Revenue .3 11.3%
.3
Charges for Services 8 28.8%
9
29.3%
Fines and Penalties 187 0.6%
179,830
0.5%
Miscellaneous 5 7 870 18.5%
6
18.6%
Totals $30 100.0%
$33,220.
100.0%
2 -8
CITY OF MAPLEWOOD, MINNESOTA
2003 BUDGET
EXPENDITURE ASSUMPTIONS
CITY OF MAPLEWOOD, MINNESOTA
2003 BUDGET
EXPENDITURE SUMMARY - ALL BUDGETARY FUNDS
PERCENT
•
2002
2003
OVER(UNDER)
Total By Department
BUDGET
BUDGET
2001 BUDGET -
Community Development
.$1,581,010
$1
5.9%
- Finance
591,260
580,420
-1:8%
Fire
1,675,520
1,521,620
-9.2%
General Government
9,362,850
10,362,840
10.7% '
Human Resource
272,330
287,790
5.7%
Parks and Recreation
4,563,740
5,085,780
11.4%
Police
5,814,240
6;035
3.8%
Public Works
9,907,980
13,198,580
33.2%
Totals
33,768,930
38,747,530
14.7%
Total By Type
Personal Services
16,449,660
17,344,090
5.4%
Commodities
1,129,310
1,279,530
13.3%
Contractual Services
6,592,630
6,935,640
5.2%
Capital Outlay and Depreciation
5,588,170
8,761,300
56.8%
Debt Service
3,084,660
3,270,260
6.0%
Other Charges
924,500
1,156,710
25.1
Totals
33,768,930
38,747,530
14.7%
Total By Fund
Operating Budget:
Charitable- Gambling Tax
36,760
52,910
43.9%
Community Center
2,175,630
2,271,980
4.4%
Data Processing -
360,530
389,070
7.9%
Dental Self- Insurance
99,860
0
- 100.0%
East County Line Fire
0
0
N/A
Enhanced 911 Service
24,990
37,000
48.1 %
General
15,219,030
15,963,560
4.9%
Gladstone Fire District
0
0
N/A
- Hazardous Materials
0
0
'N /A
Housing Replacement
203,290
343,280
68:9%
Law Enforcement Block Grant
0
16,710
N/A
Payroll Benefit
3,442,750
3,936,290
14.3%
Police Services Fund
280
380
35.7%
Recreation Programs
822,220
798,850
-2.8%
Recycling Program
312,590
303,140
-3.0%
Sanitary Sewer
3,260,480
3,528,180
8.2%
Vehicle and Equipment Maintenance
691,510
690,880
-0.1 %-
Total Operating Budget
26,649,920
28,332,230
6.3%
Capital Improvements Budget:
Capital Improvement Projects -
100,260
290,160
189.4%
Fire Safety Projects
0
.0
N/A
Fire Truck Replacement
310,730
1;800
- 99.4%
Historic Bruentrup Farm
0
0
N/A
Open Space
0
0
N/A
Park Development
152,020
551,040
262.5%
Public Improvement Projects
3,390,610
6,036,670
78.0%
Public Safety Dispatching Center
0
0
N/A
Public Works Building Addition
0
200,000
N/A
Sewer Lift Station No. 9
0
0
N/A
Street Construction State Aid
540
590
9.3%
Tax Increment Economic Development District #1-4
0
0.
N/A
Tax Increment Economic Development District #1 -5
0
80
N/A
Tax Increment Housing District #1 -1
..360.
180
- 50.0%
Tax Increment Housing District #1 -2
490
180
- 63.3%
Tax Increment Housing District #1 -3
470
170
- 63.8%
_
Tax Increment Housing.District #1-4
29,480'
26,960
-8.5%
Tax Increment Housing District #1- -5
24,410
22,340
-8.5%
Tax Increment Housing District #1 -6
94,350
77,060
- 18.3% ;
Water Availability. Charge - No. St. Paul
60
80
33.3%
Water Availability Charge - St. Paul
200
270
35.0%
Total Capital Budget
4,103,980
7,207,580
75.6%
Debt Service Budget:
Debt Service Funds
3,015,030
3,207,720
6.4%
Grand Total
$33,768,930
$38,747,530
14.7%
2 -11
CITY,OF MAPLEWOOD, MINNESOTA
2003 BUDGET'....
EXPENDITURE TYPES BY DEPARTMENT AS. OF TOTAL
2 -12
2002
PERCENT
2003
PERCENT
TYPE
BUDGET
OF TOTAL
BUDGET
OFT OTAL
Personal Services
$1.6
48.7%
$17,344
- 44.8%
Commodities
. 1,129,310
3.3 %°
1
3.3%
Contractual Services
6
19.5%
6,935,640
17.9%
Capital Outlay and Depreciation
5,588,170
16.5 %.
8
22.6%
Debt. Service
3,084,660
9.1%
3
8.4%
Other Charges
924
2.7 %°
1
- 3.0%
Totals
$33,768
100.0%
$38
100.0
DEPARTMENT
Community Development
$1
4.7%
$1
4.3 %°
Finance
591
1.8%
580,420
1.5%
- Fire
1
5.0%
1
3.9%
General Government
9
27.7%
10,362
26.7%
Human Resource,
272,330
0.8%
287
0.7%
Parks and Recreation
4
13.5% `
5
13.1
Police
5,814
17.2%
6
15.6%
Public Works _
9,907,980
29.3%
13,198,580
- 34.1%
Totals
$33
100.0 %°
$38
100.0%
2 -12
CITY OF MAPLEWOOD, MINNESOTA
- 2003 BUDGET
POLICIES ORIFUND BALANCES
AND RETAINED EARNINGS
OPERATING BUDGET:
General Fund -the projected 12 -31 -03 fund balance is equal , to 36.1 Wof 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 actober, 1.989 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.
,East County Line Fire District Fund -this fund . will be closed in _2002.
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 2002 and the fund will
be closed at that time.
_Housing Replacement Fund -this fund accounts for the City's program to replace
scattered blighted housing. The fund balance will fluctuate depending on program
activities..
Law Enforcement Block Grant Fund -this fund accounts for grant money received
from the U.S. Department of Justice. The fund .balance will fluctuate depending on
the timing of grant receipts and expenditures.
2 -13
POLICIES ON FUND BALANCES:AND RETAINED EARNINGS cont.
Police Services Fund this fund was established to account for -money hat is legally.
Y g Y
restricted for police services. Most of the revenues for this fund are from confiscated
I..1. .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 -02 fund balance is 5.1 % of the
2003 budgeted expenditures. It is current ,policy to maintain the fund balance at
approximately 5% of the budgeted expenditures.
Recycling Program Fund -the projected - 12 -31 -03 fund balance is 25.4% of the
budgeted expenditures, It is- current policy to maintain the fund balance at or above
10 % of the budgeted expenditures.
Enterprise Funds
Community Center Fund - the projected 12- 31 -03. retained earnings is a deficit.
Since the Community Center has -only been open since 10 -1 -94, the deficit will
continue in future years until enough revenues are generated to finance all expenses
including depreciation.
Sanitary Sewer Fund - the projected 12 -31 -03 retained earnings balance reflects an
increase of $106,31-0 during the year 2003. Utility rates are set to provide .working
capital equal to at least 33 % of the annual budgeted expenses.
Internal Service Funds
Data Processing Fund the policy for this fund is similar to the Vehicle and
Equipment Maintenance Fund. Annual increases in the internal service charges -are
set to -produce revenues _equal to expenses.
Dental Self - Insurance Fund — this fund was closed in 2001.
Payroll Benefits Fund the projected 12 -31 -03 retained earnings balance is equal to
4.9% of the budgeted expenses. This balance should be sufficient to cover variations
in payroll benefits expenses.
Vehicle and, Equipment .Maintenance 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.
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
2 -14
Total By Fund
Operating Budget:
Charitable Gamblinc
Community. Center.
Data Processing
Dental Self- l.nsuranc
East County Line Fi
Enhanced 911 Sery
General
Gladstone Fire Disti
Hazardous Material;
Housing ReplacemE
Law Enforcement B
Payroll Benefit
Police Services Fun
Recreation Prograrr
Recycling Program
Sanitary Sewer
Vehicle and Equipm
Total Operating
CITY OF MAPLEWOOD, MINNESOTA
7
370,340
ALL BUDGETARY FUNS
290,160
87,863
Fire Safety- Projects
BUDGETED CHANGES IN FUND- BALANCES /RETAINED EARNINGS
0
-
0
0
NET OTHER
. 483,672
113
BALANCE
1,800
INCREASES
Historic Bruentrup Farm
BALANCE
01 -01 -03
REVENUES
(DECREASES) EXPENDITURES
12 -31 -03
Open Space
0
3x $1,771
$57
$0
$52,910
$6
(557
2,146,600
0
.2
(682
1
273,890
30
389,070
1
0
0
0
0
0
0
0
.0
0
0
11,121
26
0
37,000
451
6
15
(271
15,963 \
5
0
0
0.
0
0
0
0
0
0
0
296
49,500
0
343,280
2,880
Grant 27,505
16,770.
0
16,710
27,565
368
3
0
3,936
193,707
80,477
0
0
380
80,097 .
21
546
271,670
798,850
40,924
62,415
317,830
0
303
77,105
823,191
3,869,150
(234
3
929,501
Maintenance 2,191,171
947,230
(200
690,880
.2,247,521
0
77,060
99
idget 11,216,691
27,188,560
(404
28,332,230
9,668
25,050
Water Availability Charge - St. Paul
83,012
Capital Improvement Projects
7
370,340
0 -
290,160
87,863
Fire Safety- Projects
0
0
0
0
0
Fire Truck Replacement
. 483,672
113
0
1,800
595
Historic Bruentrup Farm
0
0
0
0
0
Open Space
0
0
0.
0
0
Park Development
117,271
460,860
200
551,040
227,091
Public] Projects
(1
1,950,000
3,875
6,036,670
(1,345,163)
Public Safety Dispatching Center
0
0
0
0
0
Public Works Building Addition
0
0
200,000
200
0
Sewer Lift Station No. 9
0
0
0
0
0
Street Construction State Aid
179,982
9
( 0
590
.188,392
'Tax Increment Economic Development District #1 -4
0
0
.0
0
0
Tax Increment Economic Development District #1 -5
(1;578)
0
0
'80
(1
Tax Increment Housing District #1 -1
4,991
100,120
(99,940)
180
4,991
Tax Increment Housing District #1 -2
6,902
138,35,0
(138,170)
180
- 6
Tax Increment Housing District #1 -3
1
35,710
(35,540)
170
1
Tax: Increment Housing District #1 -4
6 9 11-5
27,070
0 `
26
6,225
-Tax Increment Housing District #1 -5
6
22,470
0
22,340
6
Tax Increment Housing District #1 -6. -
87,004
. 89,400
0
77,060
99
Water Availability Charge - No. St. Paul
23
1,980
0
80
25,050
Water Availability Charge - St. Paul
83,012
47,820
(33
270
97,102
Total Capital- Budget
(126
3
3
7
(154)
Debt Service Budget:
Debt Service Funds
1
2
307
3,207,720
1
Grand Total
$12,668
$33
$3,870,590
$38,747,530
$11
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 PERSONNEL BY DEPARTMENT
BUDGETED-FULL-TIME REGULAR EMPLOYEES
2 -18
.o
R.
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2 -18
-
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11
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5
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2
.
1
n
PROPERTY CLASS RATES.
SET BY. STATE LEGISLATURE
Percentage of Market Value
Rate for
Rate for
2000 &
Rate for.
Rate for
Property Type
1999 Taxes
2001 Taxes
2002 Taxes
2003 faxes
Homestead
0. to $76,000 (a)
1.00%
1.00%
1.00%
1.00%
$76,000 - $500,000
1.70%
1.65%
1.00%
1.00%
Over $500,000 -
1.70%
1.65%
1.2.5%
1.25%
Non- Homestead (Single Family)
0 to $76,000 (a)
1.25%
1.20%
1.00%
1.00 0 /0
$7-6
1.70%
1.65%
1.00%
1.00%
Over $500,000
1.70%
1.65 %
1.25%
1.25% l
Apartments
2.50%
2.40%
1.80%
1.50%
Commercial/industrial
0 to $150,000
2.45%
.2.40%
1.50%
1.50%
Over $150,000
3.50%
3.40%
2.00%
2.00%
(a) First tier limit was $75,000 for payable 1999.
2 -22
When the City of Maplewood levies property taxes, most of the amount levied is
allocated to property owners based on the tax capacit of their property. o en
Y p p Y p
space and fire.safety bond issue referendums approved levies are on the market value
of their property.) The total tax capacity of all property y in Maplewood for 2000 -2003 has
p
been as follows:
2000 .$34 +4.7%
2001 $39,024,950 +13.2%
2002 $27,324,987 30.0%
2003 . $30,883,953 +13.0%
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
p Y
generated by the development. to pay for certain expenses.
The adjustment in tax base for fiscal disparities provides for sharin g g throw hout.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:.
2000
2001
2002
2003 est.
Real Estate
$37,173,303
$41
$29
$32
Personal Property
646
646,646
383
390
Tax Increment Districts
' 382 243
(423
389,086
Sub -Total
37
41,881
29
32
Fiscal Disparities:
Contribution
•(6
(7,005,645)
(4,.720,041)
- (4 7 266 7 341)
Distribution
. 3,626,303
4,149,404
2,512,556
2,717,108
Total Tax Capacity
34
39,024
27
3078837953
CITY OF MAPLEWOOD MINNESOTA
. 2003 BUDGET
CHANGES IN TAX RATES 2000 - 2003
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'orderto 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 2000-2003tax capacity tax rate for the city. property tax levy has
_ been as follows
2000 — 20.646%
2001 — 19.971
2002 - 35.436 %
2003 —Data not available
Part of the city's tax levy each year is fior 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 propert y. In order to
allocate the tax levy, a percentage is calculated. by dividirTg 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 2000 -2003 market value. tax rate for the city
property tax levy has been as follows:
2000 —.02155%
.2001
—.03066%
2002 —.03133%
2003 -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 2001 and 2002.
2 -24
CITY �PORTION OF'PROP.ERTY TAXES..
County
46.2
C+ r .tilcii r• ••Yi:.'{' • r' r}✓ � f �7 4� t {.;.� .yy;f •r
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M i scellaneo us
r.:... �.. >.y 4 {r. {?i.� �: {. :�{. i r y r {•.�. } „f /.,•.6.�` ? '.':'% '!icew . �''� ,.`3y y � ' y�.uy •'';:� 'c�' X�
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5.0% f
r
4 r
Schools r
16.1%
city
32.7%
2 0 - 0 2 -
County
38.6%
{• }''+'%:: { \�:Yi' /•{r'r::y ••'..4'•{�Kv�• {. }0. • } ^.. ;Y:�'{3:'i4kOi v' �. { {4 { {:S { :: }: }- '• }:•::.
. •: kk: k4 yy; ; { }'•.,v: {;k2/.•” k£„ f 5} l ;i,:r ? }Yo 9:k: {;w ?3; rr •M1. i•; ry? {, .; {y
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y:: }{ {'•: k ; S? f a �✓?�u? 4t v: v { K{ .9i.{. 'I r4frn,.::•:c;£ ?:.:;.
-`': �.C {:'i? :'r. } {- t•. r• �,fq> foamy..:;)•'{.}; i:: fixt:,;:^�r::{�':'•�?:::,i.: ?£t r }r,/l:•: ;°:rz ^ }`;i�: .n £,:y ,.::::.c',4:.
- :r.. {: {:% }� {;} 1. { •�•.:..':• {.rr ,:..2 : 4 .`.: {: {.:a, .:kyk�. } }. .•4v;, kGa ✓,.,.:+?��yw.,.;y., {4:/• `:':7: {rri: {: ».;'::•r:•}•
' <: {%? }• :,�: }: .r;;; { {: } {. r.;�r}i {tti'x �:•':ti:�•r�{ G��S �, �..,,:, k.; 7£{:. �f):• '.k,•. ^.k:^:{ka4:F {!' S, £,,�. . X05;•• }{ ^: },tc, {.: •..:
.: ; r�; :.:. >.,... .y,;r,,,•: } 91 ra:% ? Y9r,�:�i.4rt fr�` n'S"�4'�? r 4 wk. : {f :kiw ` {�;Tf,;.� �� •
. '•C. s�>; kSi J{•l ) ; c <?'.o:c'r' : {: {. {;•:.:• ^ •.:rr v�,.y {.,,,.. {, r.,v ; ih.. F. ti{ a. c.{. ;•..C::;S£1�,: }:'. •f. ;. t.:::...
• {Y Y`':'•:•}C,rff::Y {.0.4{ ^•;::: •:. 4;rr•:: r.x�w� : < {. " ? :
`Miscell-aneous City
7.5% 20.5%
K
Schools
33..3%
00.1
2 -25