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12-03-12 CC Special Mtg AgendaCITY OF SHOREWOOD CITY COUNCIL SPECIAL MEETING MONDAY, DECEMBER 3, 2012 AGENDA 5755 COUNTRY CLUB ROAD CITY HALL 7:00 P.M. Attachments 1. CONVENE CITY COUNCIL SPECIAL MEETING A. Roll Call Mayor Liz& Hotvet Siakel Woodruff Zerby B. Review Agenda 2. TRUTH -IN- TAXATION PUBLIC HEARING Finance Director's memo A. Staff Presentation B. Public Hearing C. Council Deliberation/Decision to Reconvene 3. APPROVING THE 2013 GENERAL FUND BUDGET AND PROPERTY Finance Director's TAX LEVY COLLECTIBLE IN 2013 memo, Resolution 4. ADJOURN 1: (2 #2 U2 MEETING TYPE City of Shorewood Council Meeting Item Special Meeting Title/ Subject: Truth -in- Taxation Public Hearing Meeting Date: December 3, 2012 Prepared by: Bruce DeJong Reviewed by: Bill Joynes Attachments: Truth -in- Taxation PowerPoint Presentation Policy Consideration: The City Council is required by law to consider public input at this hearing prior to adopting the property tax levy and budget for 2013. Background: The City Council adopted a preliminary budget and tax levy in August. That information was sent to Hennepin County who used the County Assessor's property values to determine an estimated tax rate. Discussions and citizen concerns regarding individual property values are held each year at the Board of Review meetings in April, May and June. This information was combined with preliminary tax information from other taxing jurisdictions to create a Truth -in- Taxation statement for each property which were mailed in November. For this meeting, the City Council is holding a public hearing to allow taxpayers an opportunity to discuss the budget in general, specific budget areas, and the level of property tax levied by the City of Shorewood. This meeting is not designed for property owners to discuss property value, which was set earlier in the year at the Board of Review process held from April through June. The required elements for the Truth -in- Taxation process are: 1. The proposed property tax levy must be certified to the county auditor by September 15. 2. The public meeting is held at the scheduled time and place indicated on the TNT notice. 3. The proposed budget and property tax levy are discussed at the meeting. 4. The public was invited and allowed to speak and to ask questions concerning the budget and proposed property taxes at the public meeting. 5. The final property tax levy and the final budget need to be adopted by December 27. 6. The final property tax levy may not exceed the preliminary August 27 certified property tax levy. 7. The final property tax levy must be certified to the county auditor by December 27. 8. Form TNT -2012 must be submitted to the Dept. of Revenue after the final tax levy is adopted no later than December 30. Items in bold will be discussed at the Public Hearing on December 3. Financial or Budget Considerations: Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Options: If time does not allow all interested parties to provide input or the City Council would like more time to discuss the budget and /or tax levy, the vote can be postponed until the meeting on December 10. Recommendation / Action Requested: Staff recommends that the City Council hold the public hearing and accept public input on the proposed budget and tax levy. Next Steps and Timelines: The final General Fund budget and tax levy will be on the agenda for approval after the public hearing at this meeting. Connection to Vision / Mission: This item contributes to sound financial management by providing effective city services at a reasonable price. City of Shorewood 2013 Budget Truth -in- Taxation Hearing December 3, 2012 Truth -in- taxation requirements . . Present the 2013 City budget Discuss the budget and levy changes Invite public comment Adopt a balanced budget F *L� City Services in General Fund 9 9 9 9 9 Police &Fire Protection Street &Park Maintenance Recreation Programs Building Inspections Transfers to Southshore Center &Capital Funds • Administration,, Finance, Planning &Zoning, Elections, and other services Budget Assumptions • No tax levy increase since 2009 • No change in existing staffing or service levels from 2012 • 2% salary increase budgeted • $25 monthly increase for health insurance • Street & Equipment transfers rise 3% • $103,248 of reserves used to balance the budget • Shorewood homes decreased 4.4% on average for taxable valuation General Fund Balance Policy General Fund Balance — established at 55 -60% of operating budget 64.7% Reserve 3 60% Reserve (3,209,426) 4.7% above adopted policy level 250,595 3% max annual use of reserves 159,954 Use of reserves assumed in budget (103,248) Additional available reserves 56,706 Available reserves may be used for one -time projects, acquisitions, or transfer to any City capital fund. Expenditures &Transfers 2007 -2013 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 ■ Expenditures I� w m O N M O O O rl r c rl O O O O O O O N N N N N N N 2013 Revenues Fines & Forfeits 1% Intergovern- mental 1% License: Permitc, 2% Charges for Service Taxes 89% Total Revenues of $5,367,218 F, L� Transfers & Use of Misc Reserves 2013 Expenditures Park & Rec 4% Pub Woi ■w 18% c Safety 38% Total Expenditures of $5,367,218 Capital Transfers General 17% Govt 23% Tax Levy 2007 -2013 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 0% Increase since 2009 Expenditures I� w m 0 r--1 N m 0 0 0 r--1 r-i r-i r-i 0 0 0 0 0 0 0 N N N N N N N Tax Assessment &Levy Timeline Oct ,2010 - Sept, 2011 r� Jan 2,2012 Apr -Jun, 2012 Sept, 2012 Nov, 2012 2013 Property taxes are set based on sales that occurred over a year ago. Current values may be different than taxable values. 2013 Property Tax Distribution City 22.2% Hennepin County 35.7% Other 7.4% Based on Minnetonka School District School District 34.7% Impact of City Portion of 2013 Taxes 2012 Value 2013 Value 2012 Tax 2013 Tax $250,000 $239,000 $705 $705 $375,000 $358,500 $1114 $1,116 $500,000 $478,000 $1,499 $1,509 $750,000 $717,000 $2,436 $2,435 $1,000,000 $956,000 $3,373 $3,378 $ Change $0 $2 $10 -$1 $5 Properties in the city experienced an average decline in value of 4.4 %. If your property changed by a different percentage, then you will experience different results from those shown above. Total Tax $ Change m 2013 Tax Change # of Parcels % of Parcels Decrease 924 38.4% $0 -300 984 44.6% $301 -600 251 11.3% $601 -900 28 3.0% $901+ 25 2.7% Taxpayer input ited s invi at this time. 1:(2 U2 City f Shorewood Council Meeting Item Y g #3 MEETING TYPE Special Meeting Title / Subject: Adoption of the 2013 General Fund Budget and Property Tax Levy Collectible in 2013 Meeting Date: December 3, 2012 Prepared by: Bruce DeJong Reviewed by: Bill Joynes Attachment: Resolution Policy Consideration: Adoption of this resolution will allow staff to certify the budget and property tax levy to Hennepin County as required by state law. Background: By statute, the City Council must annually approve a budget and property tax levy within five business days of December 20. The 2013 General Fund Budget has been modified from the preliminary budget adopted on August 27 in accordance with council and updated information on several expenditure items. The budget discussed at the Truth -in- Taxation public hearing should be adopted, with any modifications desired by the City Council. Financial or Budget Considerations: The adoption of this resolution records the City Council's spending priorities for 2013 and the amount of property taxes to be raised. Options: The City Council may choose to: 1. Adopt the budget and levy as presented; 2. Make additional changes and adopt the amended budget and levy; Recommendation / Action Requested: Staff recommends that the City Council adopt the resolution as submitted. Next Steps and Timelines: The final tax levy will be applied by Hennepin County to create property tax statements that will be mailed in April, 2013 for collection on May 15 and October 15, 2013. Connection to Vision / Mission: This process contributes to sound financial management by providing financial resources to pay for desired city services. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. 12- A RESOLUTION ADOPTING THE 2013 GENERAL FUND OPERATING BUDGET AND APPROVING THE PROPERTY TAX LEVY COLLECTIBLE IN 2013 WHEREAS, the 2013 Budget and property tax levies collectible in 2013 for the City of Shorewood have been prepared and reviewed by the City Council; and, WHEREAS, the budget has been modified by the City Council to meet service delivery goals; and, WHEREAS, the City Council held a Truth -in- Taxation public hearing on December 3, 2012, to receive public comment regarding the adoption of such budgets and property tax levies; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD AS FOLLOWS: 1. That a budget of $5,367,218 is adopted to pay for 2013 General Fund operations. 2. That the sum of $4,763,319 is levied for 2012, collectible in 2013, upon taxable property in the City of Shorewood. 3. That the City Administrator /Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Hennepin County, Minnesota. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 3rd day of December, 2012. ATTEST Christine Lizee, Mayor William S. Joynes, Interim City Administrator /Clerk GENERAL FUND BUDGET DETAIL REVENUES TAXES 31010 GENERAL PROPERTY TAX 31020 DELINQUENT AD VALOREM TAXES 31040 FISCAL DISPARITIES TOTALTAXES LICENSES & PERMITS 32110 LIQUOR LICENSES 32120 TOBACCO LICENSES 32160 TREE TRIMMING LICENSES 32175 RENTAL HOUSING LICENSES 32180 OTHER BUSINESS LICENSES AND PE 32210 BUILDING PERMITS 32215 PLAN CHECK FEES 32240 DOG LICENSES 32250 HORSE PERMITS TOTAL LICENSES & PERMITS Approved Dept Actual Budget Request Percent Dollar 2011 2012 2013 Change Change 4,547,162 4,763,319 4,763,319 0.0% - 119,030 - - - 121,002 - - - 4,787,194 4,763,319 4,763,319 0.0% - 8,820 8,300 8,300 0.0% - 1,000 1,000 1,000 0.0% - 730 450 450 0.0% - 1,440 1,000 1,000 0.0% - 11,404 3,100 3,100 0.0% - 123,141 80,000 92,000 15.0% 12,000 24,225 12,000 15,000 25.0% 3,000 3,309 3,300 3,300 0.0% - 50 50 50 0.0% - 174,119 109,200 124,200 13.7% 15,000 INTERGOVERNMENTAL 33401 LOCAL PERFORMANCE AID - 1,000 1,000 0.0% - 33404 PERA AID 2,375 4,751 4,751 0.0% - 33418 MUNICIPAL STATE AID FOR STREET 68,217 64,650 64,650 0.0% - TOTAL INTERGOVERNMENTAL 70,592 70,401 70,401 0.0% - CHARGES FOR SERVICES 34103 ZONING AND SUBDIVISION FEES 4,067 4,500 4,500 0.0% - 34104 PASS -THRU CHARGES (4,235) - - - 34105 SALE OF COPIES 526 1,000 1,000 0.0% - 34107 SPECIAL ASSESSMENT SEARCHES 250 150 150 0.0% - 34780 PARK FEES & RENTALS 525 425 29,500 6841.2% 29,075 34781 TREE SALES - - - 34785 PARK DONATIONS 32,718 29,000 - - 100.0% (29,000) TOTAL CHARGES FOR SERVICES 33,851 35,075 35,150 0.2% 75 FINES & FORFEITURES 35101 FINES & FORFEITS 48,720 54,500 57,000 4.6% 2,500 TOTAL FINES & FORFEITURES 48,720 54,500 57,000 4.6% 2,500 EXPENDITURES CITY COUNCIL Approved Dept Personnel Actual Budget Request Percent Dollar Materials and Supplies 2011 2012 2013 Change Change MISCELLANEOUS REVENUE 76,063 86,315 72,450 -16.1% (13,865) 36210 INTEREST EARNINGS 25,629 45,000 35,000 -22.2% (10,000) 36230 CONTRIBUTIONS AND DONATIONS FR 1,340 - - 16.1% - 36240 REFUNDS & REIMBURSEMENTS 28,930 - 10,000 10,000 36250 POP MACHINE REVENUE - - - 12.6% - 36260 DRY HYDRANT CHARGES 245 3,500 3,500 0.0% - 36265 CELLULAR ANTENNA REVENUE - - 150,000 5.6% 150,000 36270 MISCELLANEOUS REVENUE 21,217 15,000 15,000 0.0% - 36275 CONCESSIONS /VENDING 394 400 400 0.0% - TOTAL MISCELLANEOUS REVENUE 77,755 63,900 213,900 234.7% 150,000 TRANSFERS 163,794 128,416 132,929 3.5% 4,513 39202 TRANSFERS FROM ENTERPRISE FUND 40,000 40,000 - - 100.0% (40,000) 39203 TRANSFERS FROM OTHER FUNDS - - - 26.8% - TOTAL TRANSFERS 40,000 40,000 - - 100.0% (40,000) TOTAL REVENUES 5,232,231 5,136,395 5,263,970 2.5% 127,575 EXPENDITURES CITY COUNCIL Personnel 16,794 16,800 16,800 0.0% - Materials and Supplies 684 3,000 2,000 -33.3% (1,000) Support Services and Charges 76,063 86,315 72,450 -16.1% (13,865) Transfers 1,379 13,600 47,700 250.7% 34,100 Total City Council 94,920 119,715 138,950 16.1% 19,235 Administration Personnel 427,106 319,475 359,671 12.6% 40,196 Materials and Supplies 16,524 24,095 18,450 -23.4% (5,645) Support Services and Charges 41,855 39,935 42,175 5.6% 2,240 Capital - - - - Total City Administration 485,485 383,505 420,296 9.6% 36,791 FINANCE Personnel 163,794 128,416 132,929 3.5% 4,513 Materials and Supplies 7,785 7,300 8,400 15.1% 1,100 Support Services and Charges 13,822 9,150 11,600 26.8% 2,450 Capital - - - - Total Finance 185,401 144,866 152,929 5.6% 8,063 PROFESSIONAL SERVICES Support Services and Charges 188,963 199,320 203,390 2.0% 4,070 Total Professional Services 188,963 199,320 203,390 2.0% 4,070 Approved Dept Actual Budget Request Percent Dollar 2011 2012 2013 Change Change PLANNING Personnel 168,156 170,666 170,666 0.0% - Materials and Supplies 261 655 650 -0.8% (5) Support Services and Charges 8,079 9,412 7,400 -21.4% (2,012) Capital - - 200 200 Total Planning 176,496 180,733 178,916 -1.0% (1,817) MUNICIPAL BUILDINGS Materials and Supplies 50,002 16,500 22,130 34.1% 5,630 Support Services and Charges 126,794 157,750 164,800 4.5% 7,050 Capital 1,534 - - - Bond Payments - - - - Transfers 103,950 102,200 100,450 -1.7% (1,750) Total Municipal Buildings 282,280 276,450 287,380 4.0% 10,930 POLICE Materials and Supplies - - - - Support Services and Charges 996,771 989,085 1,015,077 2.6% 25,992 Capital 230,068 225,132 235,437 4.6% 10,305 Total Police 1,226,839 1,214,217 1,250,514 3.0% 36,297 FIRE Support Services and Charges 337,131 332,805 349,582 5.0% 16,777 Capital 270,697 277,906 287,643 3.5% 9,737 Total Fire 607,828 610,711 637,225 4.3% 26,514 PROTECTIVE INSPECTIONS Personnel 122,171 118,049 120,588 2.2% 2,539 Materials and Supplies 154 200 200 0.0% - Support Services and Charges 4,438 5,150 5,300 2.9% 150 Capital - - - - Total Protective Inspections 126,763 123,399 126,088 2.2% 2,689 CITY ENGINEER Personnel 96,219 90,872 92,549 1.8% 1,677 Materials and Supplies 495 200 200 0.0% - Support Services and Charges 13,550 11,960 11,220 -6.2% (740) Capital 1,057 - - - Total City Engineer 111,321 103,032 103,969 0.9% 937 PUBLIC WORKS SERVICES Personnel Materials and Supplies Support Services and Charges Capital Transfers Total Public Works Services SNOW AND ICE CONTROL Personnel Materials and Supplies Support Services and Charges Capital Total Snow and Ice Control PARKS MAINTENANCE Personnel Materials and Supplies Support Services and Charges Transfers Total Parks Maintenance RECREATION Personnel Materials and Supplies Support Services and Charges Transfers Total Recreation GENERAL FUND TOTAL EXPENDITURES REVENUE OVER /(UNDER) EXPENDITURES (Planned Use of Fund Balance) Approved Dept Actual Budget Request Percent Dollar 2011 2012 2013 Change Change 389,918 418,633 428,775 2.4% 10,142 159,047 172,575 171,300 -0.7% (1,275) 139,759 134,439 138,550 3.1% 4,111 - - 1,200 1,200 750,000 750,000 772,500 3.0% 22,500 1,438,724 1,475,647 1,512,325 2.5% 36,678 37,959 55,024 56,662 3.0% 1,638 29,462 45,117 45,000 -0.3% (117) 67,421 100,141 101,662 1.5% 1,521 152,118 100,988 103,358 2.3% 2,371 17,394 18,300 19,300 5.5% 1,000 87,090 26,500 30,910 16.6% 4,410 256,602 145,788 153,568 5.3% 7,781 - 68,356 36,360 -46.8% (31,997) - 1,500 1,500 0.0% - - 34,150 20,145 -41.0% (14,005) 42,000 42,000 42,000 0.0% - 42,000 146,006 100,005 -31.5% (46,002) 5,291,043 5,223,530 5,367,218 2.8% 143,688 (58,812) (87,135) (103,248) 18.5% (16,113)