12-01-14 Council Special MtgCITY OF SHOREWOOD
CITY COUNCIL SPECIAL MEETING
MONDAY, DECEMBER 1, 2014
AGENDA
1. CONVENE CITY COUNCIL SPECIAL MEETING
A. Roll Call
B. Review Agenda
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
Mayor Zerby
Hotvet
Siakel
Sundberg
Woodruff
Attachments
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 2015 GENERAL FUND BUDGET AND PROPERTY Finance Director's
TAX LEVY COLLECTIBLE IN 2015 memo, Resolution
4. ADJOURN
® #2
MEETING TYPE
City of Shorewood Council Meeting Item Special Meeting
Title/ Subject: 2014 Truth -in- Taxation Presentation
Meeting Date: December 1, 2014
Prepared by: Bruce DeJong
Reviewed by: Bill Joynes
Attachments: Truth -in- Taxation PowerPoint Presentation
Policy Consideration: The City Council is required bylaw to consider public input at this hearing prior
to adopting the property tax levy and budget for 2015.
Background: The property tax system is detailed, complex, and confusing. The process used to
determine each property's value and taxes starts several years prior to the action that we will take this
evening. A general timeline is as follows:
• October, 2012- September, 2013 — Real Estate sales occur for about 3% of properties in town.
• October - December, 2013 — Hennepin County assessing staff analyze the sales and extrapolate
that data to determine an estimated Market Value for each property in town base on similar
styles, sizes, finish levels, amenities, and neighborhoods.
• January 2, 2014 — A property value is set for each parcel in the community.
• March, 2014 — Valuation notices are sent to each parcel with the new estimated property value.
• April -June, 2014 — Open Book meeting at City Hall and valuation appeals to the Hennepin
County Board of Equalization. This will finalize the value to be used for Truth -in- Taxation
estimates and 2015 property taxes.
• July- September, 2014 — City Council discusses the General Fund budget and property tax levy for
2015.
• September 30, 2014 —The preliminary tax levy is certified to Hennepin County.
• November, 2014— ATruth -in- Taxation parcel- specific notice is mailed to each property owner
with the estimated taxes identified for each taxing jurisdiction - County, City, School District,
Metropolitan Council, Watershed District, and other minor taxing districts.
• December 1, 2014— Shorewood City Council holds the Truth -in- Taxation meeting and adopts a
tax levy and budget for 2015.
• December 29, 2014 — Final tax levy is certified to Hennepin County and Form TNT is filed with
the Minnesota Department of Revenue.
• May 15, 2015 — 2015 first half taxes are due at Hennepin County.
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
for each overlapping jurisdiction. This information was combined with preliminary tax information from
other taxing jurisdictions to create a Truth -in- Taxation statement for each property.
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
For this meeting, the City Council holds a public hearing to allow taxpayers to discuss the budget in
general, department budgets, and the amount of property taxes levied by the City of Shorewood.
This meeting is not structured for property owners to discuss individual property values, which were
set earlier in the year at the Open Book and 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 30.
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 is 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 are adopted.
6. The final property tax levy may not exceed the preliminary August 25 certified property tax levy.
7. The final property tax levy must be certified to the county auditor by no later than December 29.
8. Form TNT must be submitted to the Dept. of Revenue after the final tax levy is adopted but no
later than December 29.
Items in bold will be discussed at the Public Hearing on Decemberl.
At its work session on November 24, the City Council asked for a presentation of several different tax
levy scenarios:
2.5% - original certification $4,980,050
roughly 2% increase in average property taxes
2.0% - potential lower rate $4,955,757
roughly 1.5% increase in average property taxes
$24,239
levy reduction
1.5% - potential lower rate $4,931,464
roughly 1% increase in average property taxes
$48,586
levy reduction
The budget resolution contains a blank for the property tax levy amount to be filled in by the City
Council at the time of budget adoption.
Financial or Budget Considerations:
The tax levy and budget presented at this meeting are the same as the levy originally certified to
Hennepin County. This raises the 2015 tax levy 2.5% higher than the 2014 tax levy.
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 December 8.
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
December 1, 2014 City Council Special Meeting
1. CONVENE CITY COUNCIL SPECIAL MEETING
A. Roll Call
B. Review Agenda
City of Shorewood
December 1, 2014 City Council Special Meeting
2. TRUTH -IN- TAXATION PUBLIC HEARING
A. Staff Presentation
B. Public Hearing
C. Council Deliberation /Decision to Reconvene
City of Shorewood
2015 Budget
Truth -in- Taxation Hearing
December 1, 2014
0
0
0
0
Truth -in- taxation requirements
Present the 2015 City budget
Discuss the budget and levy changes
Invite public comment
Adopt a balanced budget
0
0
0
0
0
City Services in General Fund
Police &Fire Protection
Street &Park Maintenance
Recreation Programs
Building Inspections
Transfers to Southshore
Center &Capital Funds
• Administration, Finance, Planning &Zoning,
Elections, and other services
41
Budget Assumptions
• Second levy increase since 2009 — 2.5% increase over
2014 for general operations — primarily personnel costs
• New staffing for .75 forestry position
• Other staffing levels remain the same from 2014
• 2.5% salary increase budgeted
• Street & Equipment transfers rise 3.75% - $30,000
• $93,192 of reserves used to balance the budget
—down $9,656 from 2014.
general Fund Balance Policy
General Fund Balance —
Target established at 60%
12/31/13 General Fund Reserve
Estimated use of reserves for 2014
of operating budget
12/31/14 Estimated General Fund Reserve
Proposed 2015 Expenditures & Transfers
Fund Balance %
12/31/14 Estimated General Fund Reserve
60% Reserve
Available Reserve
3,943,342
(23,850)
3,919,492
5,642,863
69.5%
3,919,492
(31385,718)
533,774
Available reserves may be used for one -time projects,
acquisitions, or transfer to any City capital fund.
General Fund Levy rm'ptions
2.5%
Levy
I ncr
2.0%
Levy
I ncr
1.5% Levy I ncr
$479807050
$479557757
$24,239
$4,931,464
$48,586
2% incr in avg property taxes
1.5% incr in avg property taxes
levy reduction
1 % incr in avg property taxes
levy reduction
There are sufficient reserves available that Council can
choose any of the options presented. The planned use
of reserves will increase by the amount of levy
reduction.
Budgeted Expenditures
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
& Transfers
2007 -2015
� W m 0� N m�
0 0 0 � � � � �
0 0 0 0 0 0 0 0
N N N N N N N N
0
Expenditures
ec�.e
2015 Expenditures
Park & Rec
4%
Puk
Capital
Transfers
17%
Works
18%
i
General
Govt
22%
lic
Safety
38%
Total Expenditures of $5,643,263
Revenues 2007 -2015
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
w M 0 N m� Ln
0 0 0 � � � � �
0 0 0 0 0 0 0 0 0
N N N N N N N N N
Misc
Fines
Chg for Svc
1 I ntergovt
W Permits
Tax Levy
ec�.e
Fines &
Forfeits
1%
Intergovern-
mental
1%
Licenses
Permits
2%
2015 Revenues
Charges for Transfers & Use of
Service Misc Reserves
-'TTaxes
89%
Total Revenues of $5,549,671
Tax Assessment &Levy Timeline
Oct ,2012 -
Sept, 2013
Jan 2,2014 Apr -Jun, 2014 Sept, 2014 Nov, 2014
2015
Property taxes are set based on sales that occurred over a year ago.
Current values may be different than taxable values.
Impact of City Portion
-%f 2015 Taxec
2014 Value 2015 Value 2014 Tax 2015 Tax $Change*
$250,000
$266,500
$770
$786
$16
$375,000
$399,750
$1,215
$1,236
$21
$500,000
$533,000
$1,635
$1,679
$44
$750,000
$799,500
$2,658
$2,713
$55
$1,000,000
$1,066,000
$3,680
$3,747
$67
Residential properties experienced an average increase
in value of 6.6 %. If your property changed more or less,
then you will see different results. Values shown are
based on sales from almost 2 years earlier.
* Changes estimated based on 2.5% levy increase.
2015 Property Tax Distribution
City
22.5%
Other
7.2%
Hennepin
County
35.1%
School
District
35.2%
Based on Minnetonka School District home valued at
$3601000 — the percentage changes as home values vary
T,Dta I Tax � Change - 2015
Tax Change # of Parcels % of Parcels
Decrease 812 35.0%
$0 -300
768
33.2
$301 -600
239
10.3
$601 -900
162
7.0%
$901+
335
14.5
Tax Relief Programs for Homeowners
0
0
Homestead Credit Refund
— Available if taxes exceed 2% of income for
households with income up to $65,409 and 2.5%
for those over $65,409 and below $105,500.
Special Property Tax Refund
— Available if taxes increase more than 12% and the
increase is over $100.
Renter's Refund
— Household income must be $57,169 or less.
Taxpayer input ited s invi
at this time.
1:(S
Q City of Shorewood Council Meeting Item
#3
MEETING TYPE
Special Meeting
Title / Subject: Adoption of the 2015 General Fund Budget and Property Tax Levy Collectible in 2015
Meeting Date: December 1, 2014
Prepared by: Bruce DeJong
CC: Bill Joynes
Attachment: Resolution
2014 General Fund Summary Budget
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 2014 General Fund Budget has been modified from the preliminary budget
adopted on August 26 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 2015 and the amount of
property taxes to be raised.
Options:
The City Council may choose to:
1. Adopt the budget and levy as presented at the 2.5% increase level.
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, 2015, for collection on May 15 and October 15, 2015.
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
CITY OF SHOREWOOD
RESOLUTION NO. 14-
A RESOLUTION ADOPTING THE 2015 GENERAL FUND OPERATING BUDGET
AND APPROVING THE PROPERTY TAX LEVY COLLECTIBLE IN 2015
WHEREAS, the 2015 Budget and property tax levies collectible in 2015 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 1,
2014, 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 $5,643,263 is adopted to pay for 2015 General Fund operations.
2. That the sum of $ is levied for 2014, collectible in 2015, upon taxable
property in the City of Shorewood.
3. That the City Administrator 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 1st day of
December, 2014.
ATTEST:
Jean Panchyshyn, City Clerk
Scott Zerby, Mayor
GENERAL FUND BUDGET SUMMARY
Page 1
Approved
Requested
Actual
Actual
YTD
Budget
Budget
Percent
Dollar
2012
2013
2014
2014
2015
Change
Change
REVENUES
TAXES
4,783,939
4,764,472
2,497,543
4,858,585
4,980,050
2.5%
121,465
LICENSES & PERMITS
175,086
204,600
147,175
132,770
147,770
11.3%
15,000
INTERGOVERNMENTAL
76,102
96,549
64,735
96,251
87,251
-9.4%
(9,000)
CHARGES FOR SERVICES
64,825
33,194
24,860
41,700
42,200
1.2%
500
FINES & FORFEITURES
66,230
59,294
30,945
57,000
57,000
0.0%
-
MISCELLANEOUS REVENUE
141,013
205,010
134,001
232,900
210,400
-9.7%
(22,500)
TRANSFERS
330
317,182
-
25,000
25,000
0.0%
-
TOTAL REVENUES
5,307,525
5,680,301
2,899,259
5,444,206
5,549,671
1.9%
105,465
EXPENDITURES
CITYCOUNCIL
Personnel
16,794
16,794
9,796
16,800
22,600
34.5%
5,800
Materials and Supplies
887
2,035
142
1,200
2,000
66.7%
800
Support Services and Charges
80,309
90,885
26,338
156,121
110,350
-29.3%
(45,771)
Transfers
13,600
91,700
283,414
70,000
70,000
0.0%
Total City Council
111,590
201,414
319,690
244,121
204,950
-16.0%
(39,171)
Administration
Personnel
373,915
240,032
137,847
250,323
251,153
0.3%
830
Materials and Supplies
18,276
15,649
10,554
19,300
20,900
8.3%
1,600
Support Services and Charges
82,008
134,401
66,847
147,290
145,500
-1.2%
(1,790)
Capital
-
-
-
-
-
-
Total City Administration
474,199
390,082
215,248
416,913
417,553
0.2%
640
FINANCE
Personnel
120,556
137,469
79,347
134,758
134,758
0.0%
-
Materials and Supplies
8,042
8,547
7,910
9,050
10,050
11.0%
1,000
Support Services and Charges
11,686
14,619
9,418
16,000
16,000
0.0%
-
Capital
-
-
-
-
-
-
Total Finance
140,284
160,635
96,675
159,808
160,808
0.6%
1,000
PROFESSIONAL SERVICES
Support Services and Charges
190,592
199,042
159,825
211,060
215,060
1.9%
4,000
Total Professional Services
190,592
199,042
159,825
211,060
215,060
1.9%
4,000
PLANNING
Personnel
181,382
181,143
105,115
173,157
173,157
0.0%
-
Materials and Supplies
137
292
42
250
300
20.0%
50
Support Services and Charges
7,691
7,684
3,960
11,900
11,000
-7.6%
(900)
Capital
-
-
-
-
-
-
Totai Planning
189,210
189,119
109,117
185,307
184,457
-0.5%
(850)
MUNICIPAL BUILDINGS
Materials and Supplies
40,799
60,118
9,307
21,400
23,400
9.3%
2,000
Support Services and Charges
149,878
141,227
34,282
165,800
170,800
3.0%
5,000
Capital
2,441
-
-
-
-
-
Transfers
102,200
100,450
-
103,950
101,513
-2.3%
(2,437)
Total Municipal Buildings
295,318
301,795
43,589
291,150
295,713
1.6%
4,563
Total General Government
1,401,193
1,442,087
944,144
1,508,359
1,478,541
-2.0%
(29,818)
less transfers
(115,800)
(192,150)
(283,414)
(173,950)
(171,513)
Net General Government
1,285,393
1,249,937
660,730
1,334,409
1,307,028
POLICE
Materials and Supplies
1,328
-
-
-
-
-
Support Services and Charges
991,383
1,018,680
696,475
1,045,056
1,072,645
2.6%
27,589
Capital
225,132
227,764
172,323
229,763
225,181
-2.0%
(4,582)
Total Police
1,217,843
1,246,444
868,798
1,274,819
1,297,826
1.8%
23,007
Page 1
GENERAL FUND BUDGET SUMMARY
(Planned Use of Fund Balance)
Page 2
Approved
Requested
Actual
Actual
YTD
Budget
Budget
Percent
Dollar
2012
2013
2014
2014
2015
Change
Change
FIRE
Support Services and Charges
331,987
345,728
261,591
344,940
361,315
4.7%
16,375
Capital
277,906
287,655
208,817
282,271
276,156
-2.2%
(6,115)
Total Fire
609,893
633,383
470,408
627,211
637,471
1.6%
10,260
PROTECTIVE INSPECTIONS
Personnel
114,396
123,411
68,669
121,323
121,323
0.0%
-
Materials and Supplies
242
-
157
200
200
0.0%
-
Support Services and Charges
5,813
6,813
1,354
5,300
7,700
45.3%
2,400
Total Protective Inspections
120,451
130,224
70,180
126,823
129,223
1.9%
2,400
Total Public Safety
1,948,187
2,010,051
1,409,386
2,028,853
2,064,520
1.8%
35,667
CITY ENGINEER
Personnel
84,615
460
-
-
-
-
Materials and Supplies
144
-
37
-
-
Support Services and Charges
21,688
68,690
25,889
87,900
87,900
0.0%
Capital
-
-
-
-
-
Total City Engineer
106,447
69,150
25,926
87,900
87,900
0.0%
-
PUBLIC WORKS SERVICES
Personnel
417,330
434,212
179,805
439,587
494,547
12.5%
54,960
Materials and Supplies
120,684
141,763
57,103
167,200
167,700
0.3%
500
Support Services and Charges
121,758
105,845
52,324
141,600
142,600
0.7%
1,000
Capital
-
-
-
21500
-
- 100.0%
(2,500)
Transfers
750,000
772,500
-
800,000
830,000
3.8%
30,000
Total Public Works Services
1,409,772
1,454,320
289,232
1,550,887
1,634,847
5.4%
83,960
SNOW AND ICE CONTROL
Personnel
27,502
56,862
45,392
58,339
58,339
0.0%
-
Materials and Supplies
29,509
44,835
25,591
45,000
45,000
0.0%
Total Snow and Ice Control
57,011
101,697
70,983
103,339
103,339
0.0%
-
Total Streets & Highways
1,573,230
1,625,167
386,141
1,742,126
1,826,086
4.8%
83,960
less transfers
(750,000)
(772,500)
-
(800,000)
(830,000)
3.8%
(30,000)
Net Streets & Highways
823,230
852,667
386,141
942,126
996,086
PARKS MAINTENANCE
Personnel
101,395
82,222
69,104
109,473
109,473
0.0%
-
Materials and Supplies
17,095
18,908
4,815
20,300
23,300
14.8%
3,000
Support Services and Charges
32,807
38,816
15,532
34,600
38,000
9.8%
3,400
Total Parks Maintenance
151,297
139,946
89,451
164,373
170,773
3.9%
6,400
RECREATION
Personnel
37,627
51,296
29,473
36,743
36,743
0.0%
-
Materials and Supplies
1,171
4,818
3,308
5,800
5,800
0.0%
Support Services and Charges
15,446
13,051
5,670
18,800
18,800
0.0%
Transfers
42,000
42,000
-
42,000
42,000
0.0%
Total Recreation
96,244
111,165
38,451
103,343
103,343
0.0%
-
Total Recreation
247,541
251,111
127,902
267,716
274,116
2.4%
6,400
less transfers
(42,000)
(42,000)
-
(42,000)
(42,000)
Net Recreation
205,541
209,111
127,902
225,716
232,116
GENERAL FUND TOTAL EXPENDITURES
5,170,151
5,328,416
2,867,573
5,547,054
5,643,263
1.7%
96,209
REVENUE OVER /(UNDER) EXPENDITURES
137,374
351,885
31,686
(102,848)
(93,592)
-9.0%
9,256
(Planned Use of Fund Balance)
Page 2
City of Shorewood
December 1, 2014 City Council Special Meeting
3. APPROVING THE 2014 GENERAL FUND BUDGET
AN D PROPERTY TAX LEVY COLLECTI BLE I N 2015
Council consideration of a Resolution adopting
the 2015 General Fund Budget and Property Tax
Levy Collectible in 2015
City of Shorewood
December 1, 2014 City Council Special Meeting
4. ADJOURN