HomeMy WebLinkAbout7A, Adopt 2010 Operating Levy Payable in 2011 & Establish the 2010 Truth-In-Taxation Hearing Date� EN HI�LS
Re uest for Council Action
q
Prepared By: Sue Iverson, Finance Dir/Treasurer Council Meeting Date: September 13, 2010
Adopt Preliminary 2010 Operating Levy Payable in 2011.
Establish 2010 Truth-In-Taxation Hearing Date.
Budgeted Amount: Actual Amount: Funding Source:
NA NA NA
Recommendation:
1. Motion to adopt Resolution 2Q10-046, a resolution setting the preliminary levy for
taxes payable in 2011 in the amount of $3,088,964.
2. Motion to adopt Resolution 2010-047, a resolution adopting Truth-In-Taxation
public hearing dates for proposed taxes payable in 2011. The date established is
December , 2010.
Supporting Documents:
1. See attached memo from Sue Iverson.
2. 2011 General Fund Summary (Proposed Preliminary Budget)
3. Resolution 2010-046
4. Resolution 2010-04'7
5. See attached memo from Pat Klaers on options for budget adjustments.
EN HILLS
MEMORANDUM
DATE: September 13, 2010
TO: Honorable Mayor and City Council
FROM: Patrick Klaers, City Administrator
Sue Iverson, Finance Director
SUBJECT: Establishing 2010 Truth-In-Taxation Hearing Dates
Adoption of the Preliminary 2010 Operating Levy Payable in 2011
Background:
By September 15, 2010, the City is required to adopt and certify to Ramsey County a preliminary levy
and Truth-In-Taxation hearing dates.
Discussion:
Operatin� Lev_y
Based on City Council direction at the August 16, 2010 Work Session, staff has prepared a prelimina�-y
levy of $3,088,964. (This is a decrease of $30,539 over the number given the City Council at the work
session as staff has incorporated the changes requested by the City Council and have done other minor
adj ustments. We have also received word from our insurance carrier that our increase will be -13 .1 % and
the previous percentage used was 10%)
The overall levy limit for the City of Arden Hills with the state mandated levy limit plus allowable special
levies is $3,218,680. The proposed 2011 levy is $129,716 under that limit.
The overall increase in the proposed levy is a 2.4% increase over the 2010 levy; however, the City's
portion of the levy is $2,788,931 after Fiscal Disparities which equates to a 1.4% increase over the 2010
City portion of the levy of $2,751,727. This results in a 9.0% increase in the Tax Rate from 2010, as the
City's tax capacity fell by $849,662 or -7.0%. The impact on an average medium home valued at
$276,000 is an increase of $49.21 or 8.1 % annually. The average decrease in market value for residential
property in Arden Hills was 1.0%. Determination of the preliminary levy amount is based on 2011
budget information assembled to-date. (This information is summarized in Attachment A.)
One item to note is the unallotment of MVHC from the State of $63,339 for 2011. This amount is figured
into the preliminary 2011 budget. Market Value Homestead Credit is credited to property owners on their
property tax statements and then reimbursed to the City from the State. The City has been informed from
the Department of Revenue that we will not receive this amount, so the preliminary budget and levy has
accounted for this. This amounts to 2.0% of the levy increase and $15 .07 or 30.6% of the tax increase to
Memo
City Council
2010 Truth-in-Taxation Hearing Dates and 2011 Preliminary Tax Levy
2
the average medium homeowner in the City of Arden Hills. Public Safety accounts for 1.8% of the levy
increase and $13.00 or 26.4% of the tax increase to the average medium homeowner in the City of Arden
Hills. Without the MVHC cut or the public safety increase the budget would show a 1.4% decrease in the
levy over last year. (If no changes were made to the levy over last year, the average medium homeowner
in the City of Arden Hills would still see an increase of $31.52 in their property taxes as a result of the
decrease in the local taxable value which caused the Local Tax Rate to rise by 6.1 %- see Attachment B.)
Truth-in-Taxation Hearin� Dates:
The 2009 Legislature changed the Truth-in-Taxation laws. We are now only required to announce and
schedule one regular meeting at which the council discusses the budget and levy and takes comments
from the public. We may adopt the budget and final levy after the hearing during the same meeting. The
meeting must be between November 25 and December 26 and must occur at or after 6 p.m. We must
notify the county auditor by September 15.
The Council may choose to have a separate meeting or may choose to do this at a regular meeting. Staff
is providing two options for the Council to choose from:
Monday, December 6, 2010 — 6:30 p.m. (Special meeting) or
Monday, December 13, 2010 — 7:00 p.m. —(Regularly scheduled meeting)
It is anticipated the Council will adopt the final 2010 levy payable in 2011, and the 2011 budget, on
December 13, 2010.
Recommended Action:
l. Adopt Resolution 2010-046, a Resolution setting the preliminary levy for taxes payable in 2011
in the amount of $3,088,964.
2. Adopt Resolution 2010-047, a Resolution adopting Truth-in-Taxation public hearing dates for
proposed taxes payable in 2011. The date established is December , 2010.
Proposed Pay 2011 Property Tax Impact Worksheet
Taxing District: Arde�.Hi11s-Propose�.;P��ttm Le
STEP 2- Calculate the Impact of the Taxing District's Rate on Residential Homestead Taxes:
13. Assumes a -1.Q�'% increase in market value from 2010 to 2011.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
Pay 2009 MV 500,000@1.0% (B7 x E) +
X 0.934 rem @ 1.25% (B 12 x D)
Estimated Tax District rate as % of total rate:
::: ::::::'� �O: :�Q:O;; : 1 500 370.19
� ...::.: :.: : : : , $
;: : :;:;::2� ".::' >" : `:;;:
;f,�?�3fi�.: 2,760 $681.14
;;>;::::���: `:�:,: :;��'>;°`<;
;. ;�.,,t?0� .; 3, 500 $863.77
'`: : ::�f��: �k��?: : 5 000 1 233.95
,.:::::::::: , $ ,
>: «:;:::7�� :�0�:�:�> 8125 2 005.17
� __ , $ ,
76, 000@.40%
- rem@.09% (G) x %
:'::<!;;: `:> :;�" :;:':;::>::<;::::>::`>:
:' :: : :::2:�: ::1�:: :;::::::::: :
_ ��W��
$237.40 $49.85
$124.00 $26.04
$57.40 $12.05
$0.00 $0.00
$0.00 $0.00
- (H) Annual Increase Monthlv incr.
$320.34 $26.81 $ 2.23
$655.10 $49.21 $ 4.10
$851.72 $62.54 $ 5.21
1,233.95 $87.11 $ 7.26
2,005.17 $143.59 $ 11.97
STEP 1- Calculate the Taxing District's Tax Rate:
Instructions for Calculating a Residential Homestead Property Tax:
D. Taxable Market Value of Residential Homestead
Assumes that the Pay 2011 market value decreased over Pay 2010 by 1.0%.
Countywide, the median decrease in taxable market value from Pay 2010 to Pay 2011 is 6.1 %.
E. Calculate the Net Tax Capacity of a Residential Homestead
Pay 2010: 1 st 500,000 of Market Value @ 1.00%, remainder @ 1.25%
Pay 2011: 1 st 500,000 of Market Value @ 1.00%, remainder @ 1.25%
F. Calculate the taxing district's portion of the Gross Tax
Pay 2010: multiply the Pay 2010 net tax capacity (E) by the Pay 2010 tax capacity local tax rate (A7), plus
multiply the Pay 2010 market value (D) by the Pay 2010 market value local tax rate (Al2)
Pay 2011: multiply the Pay 2011 net tax capacity (E) by the Pay 2011 tax capacity local tax rate (B7) , plus
multiply the Pay 2011 market value (D) by the Pay 2011 market value local tax rate (B12)
G. Calculate the total market value homestead credit
0.40% of the first 76,000 of market value (D), reduced by 0.09% on the market value over 76,000
The credit decreases as the market value over 76,000 increases, until a 414,000 home receives 0 credit.
H. Calculate the taxinq district's estimated share of market value homestead credit
The credit is apportioned to all taxing districts based on their share of the total tax rate.
Example of 150,000 home : (76,000 x .40% _ $304 ) - (74,000 x .09% _ $66.60) _ $237.40
Assume the city is 30% of the total tax, then the city receives 30% of the Credit $237.40 x 30% _$71.22
The actual percentage will vary depending on the combination of county, city/town, school, and special taxing
districts.
I. Calculate the taxinq district's portion of the Net Tax
Gross Tax (F) minus the taxing district's share of credit (H)
26-30. Calculate the % increase/decrease from 2010 to 2011
(2011 -2010) / 2010
Proposed Pay 2011 Property Tax Impact Worksheet
,
Taxing District: Arden H�IIs-1Uo L+� Inc��as�
STEP 2- Calculate the Impact of the Taxing District's Rate on Residential Homestead Taxes:
13. Assumes a -� .�°ia increase in market value from 2010 to 2011.
14.
15.
16.
17.
18.
19.
Pay 2009 MV 500,000@1.0% (B7 x E) +
X 0.934 rem @ 1.25% (B12 x D)
20. Estimated Tax District rate as % of total rate:
21.
'�:�� :��0:;:;: 1 500 3 .
,.::::::::::: , $ 60 57
22.
;; ;;: ::;: 2�� �±�:�;::; 2 7
,:: : ,::::: :: : ::: , 60 $663.45
23.
;_:::::>:<3�� 0 ``'> ;:::
:::.::.,:.::0�::::. 3,500 $841.33
2.
4
>:::::: �f�O;C�QO:::� 5,000 $1,201.90
25. : >;:<::::::1 >'.>'>:` : :` '::::
::. : ��4.,�O�l.: : 8,125 $1,953.09
26.
27.
28.
29.
30.
76, 000@.40%
- rem@.09°/a (G) x %
>:<:'':`:<':> :<::: ::�' >:: :>;:<::;;; :> :>
:>::::'_:::::�:'�:::>%�o»:> »::»:<::<:
� ... ..... ............. ..... ... . ....
$237.40 $49.85
$124.00 $26.04
$57.40 $12.05
$0.00 $0.00
$0.00 $0.00
-(H) �� Annual Increase Monthlv incr.
$310.72
$637.41
$829.28
$1,201.90
$1.953.09
$17.19 $ 1.43
$31.52 $ 2.63
$40.10 $ 3.34
$55.06 $ 4.59
$91.51 $ 7.63
STEP 1- Calculate the Taxing District's Tax Rate:
Instructions for Calculating a Residential Homestead Property Tax:
D. Taxable Market Value of Residential Homestead
Assumes that the Pay 2011 market value decreased over Pay 2010 by 1.0%.
Countywide, the median decrease in taxable market value from Pay 2010 to Pay 2011 is 6.1 %.
E. Calculate the Net Tax Capacity of a Residential Homestead
Pay 2010: 1 st 500,000 of Market Value @ 1.00%, remainder @ 1.25%
Pay 2011: 1 st 500,000 of Market Value @ 1.00%, remainder @ 1.25%
F. Calculate the taxinq district's portion of the Gross Tax
Pay 2010: multiply the Pay 2010 net tax capacity (E) by the Pay 2010 tax capacity local tax rate (A7), plus
multiply the Pay 2010 market value (D) by the Pay 2010 market value local tax rate (Al2)
Pay 2011: multiply the Pay 2011 net tax capacity (E) by the Pay 2011 tax capacity local tax rate (B7) , plus
multiply the Pay 2011 market value (D) by the Pay 2011 market value local tax rate (B12)
G. Calculate the total market value homestead credit
0.40% of the first 76,000 of market value (D), reduced by 0.09% on the market value over 76,000
The credit decreases as the market value over 76,000 increases, until a 414,000 home receives 0 credit.
H. Calculate the taxinq district's estimated share of market value homestead credit
The credit is apportioned to all taxing districts based on their share of the total tax rate.
Example of 150,000 home : (76,000 x .40% _ $304 ) - (74,000 x .09% _ $66.60) _ $237.40
Assume the city is 30% of the total tax, then the city receives 30% of the Credit $237.40 x 30% _$71.22
The actual percentage will vary depending on the combination of county, city/town, school, and special taxing
districts.
I. Calculate the taxinq district's portion of the Net Tax
Gross Tax (F) minus the taxing district's share of credit (H)
26-30. Calculate the % increase/decrease from 2010 to 2011
(2011 -2010) / 2010
Taxes
101-41300-31010 Current Ad Valorem Taxes
1 01-41 300-31 01 1 Payments in Lieu of Taxes
101-41300-31020 Delinquent Ad Valorem Taxes
1 01-41 300-31 030 Mobile Home Tax
101-41300-31040 Fiscal Disparities
1 01-41 300-31 51 0 Aggregate Removal Tax
1 01-41 300-31 91 0 Penalties & Interest on Taxes
101-41300-31920 Forfeited Tax Sales
Total Taxes
Licenses and Permits
101-41300-32110 Liquor, On Sale & Sunday
1 01-41 300-321 1 1 Liquor, Off Sale
101-41300-32160 Contractors
101-41910-32170 Rental Regulation Fee
101-41300-32180 Business Licenses
101-41300-32181 Other Business Lic/Permits
101-42400-32210 Plan Review & Bldg Permits
101-42400-32220 Mechanical Permits
101-42400-32230 Plumbing Permits
101-41300-32240 Animal Licenses
1 01-41 91 0-32250 Sign Permits
101-42400-32260 Electrical Permits
101-42400-32270 Utility Permit Fees
101-42400-32275 Fire Suppression Permits
101-42400-32278 Fire Permit Plan Check Fee
101-41910-32279 Erosion/Grading Permit
101-41300-32280 Other Nonbusiness Lic/Permits
Total Licenses and Permits
Interqovernmental Revenues
101-41300-33402 Market Value Homestead Credit
101-41300-33403 Mobile Home Homestead Credit
101-41300-33420 State PERA Aid
101-42100-33416 Police Aid
101-43100-33418 MSA Maintenance
101-41910-33422 State Grants
101-41410-33621 Other County Grants & Aids
Other Intergovernmental
Charqes for Services
1 01-41 91 0-341 03 Zoning and Subdivision Fees
1 01-41 91 0-341 04 Plan Checking Fees
101-41300-34105 Sale of Maps and Publications
101-41910-34106 Plat & Other Fees
101-41300-34108 Admin Chgs from other funds
1 01-41 500-341 08 Admin Chgs from other funds
1 01-41 940-341 08 Admin Chgs from other funds
101-41910-34110 Zoning Permit Fees
101-41300-34120 Water Tower Antenna Rentals
101-41300-34121 Other General Govt Charges
101-42100-34202 False Alarms
101-42100-34206 Impound Fees
101-42400-34207 State Building Code Surcharges
101-42400-34208 City Building Code Surcharges
101-45200-34300 Park Facility Rental Fees
101-45120-34730 Summer Playground Fees
101-45120-34740 Summer Trip Fees
101-45120-34781 Adult Programs
101-45120-34782 Youth Programs
101-45120-34785 Adult Softball
101-45120-34790 After School Programs
101-45120-34791 Special Events Programs
1 01-41 91 0-34950 Other Charges for Services
Total Charges for Services
City of Arden Hilis
General Fund Summary
2011 Budget
Actual Actual Budget Amended YTD Actual
FY 2008 FY 2009 FY 2010 FY 2010 6/30/10
$ 2,467,248 $ 2,558,094 $ 3,016,465 $ 3,016,465 $
173 - - � -
7, 361 25, 924 20, 000 20, 000
6,834 6,416 7,500 7,500
221, 945 244, 684 - -
(114) (497 ) - -
3,297 632 - -
2, 706, 745 2, 835, 253 3, 043, 965 3, 043, 965
25,110
200
4, 530
10, 551
415
171,253
29,241
8, 772
2, 318
1,450
22,714
2,700
6, 994
3, 878
910
855
291, 890
26,729
4,182
5,179
44,607
64, 581
145,278
37, 542
22
11,311
21,720
27,602
77,730
72, 784
3,245
1,600
5, 926
1,462
2,659
14,658
1,957
41,236
17,085
13,717
2, 981
100
355, 337
24,750
440
4,890
3, 080
10,521
300
128, 000
42, 084
16, 896
1, 345
800
25, 853
6, 720
5, 392
1,811
1,080
1,635
275, 596
68
3,683
5,179
43, 978
67,649
10,000
130, 557
82,608
21
10,772
18, 802
28,168
85, 346
1,257
63,009
2,670
350
9, 821
1,016
3, 722
10, 704
34
14, 860
43, 048
1, 840
12, 800
4,298
97
395,240
32, 500
5, 000
4, 000
13, 000
128, 000
20, 000
10, 000
3,500
1,100
20, 000
300
6, 000
3, 000
1, 500
247, 900
(61,774)
5,179
44, 000
67,649
55, 054
40, 000
12, 000
24,281
37,307
95,299
800
62,260
3, 300
2, 000
200
8, 000
1, 000
3, 500
12, 000
17,000
42, 000
14, 000
3, 500
200
378,647
32, 500
5, 000
4, 000
13, 000
128, 000
20, 000
10, 000
3, 500
1,100
20, 000
300
6,000
3, 000
1, 500
247, 900
(61,774)
5,179
44, 000
67,649
55, 054
40, 000
12, 000
24,281
37, 307
95,299
800
62,260
3, 300
2, 000
200
8, 000
1, 000
3, 500
12, 000
17, 000
42, 000
14, 000
3,500
200
378,647
Proposed
FY 2011
3, 088, 964 $
20,000
7, 500
- 3,116,464
23,820
950
5,420
1, 920
8, 542
3, 315
55,207
14,063
4,598
1,656
2,180
16,812
3,639
4,310
900
800
148,131
34,280
34,280
22,413
12
2, 725
42, 590
385
250
3,419
931
12,108
(34)
21,885
23, 868
8, 085
1, 934
150
140,721
25, 000
5, 500
3,400
13, 000
4, 000
128,000
26, 000
10, 000
3, 500
1, 300
20, 000
300
6, 000
3,000
1,600
2, 000
252,600
(61,774)
5,179
49, 946
67,649
61, 000
42, 000
11, 000
23, 310
43,705
97,474
1,200
65, 000
3, 300
2, 000
8, 000
1,000
3, 500
12,000
20,000
41, 000
12, 000
3, 500
200
390,189
Adopted % Change
FY 2011 10 vs 11
- 2.40%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 2.38%
- -23.08%
- 0.00%
- 10.00%
- -15.00%
- 0.00%
- 0.00%
- 0.00%
- 30.00%
- 0.00%
- 0.00%
- 18.18%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 6.67%
- 0.00%
- 1.90%
- 0.00%
- 0.00%
- 0.00%
= 13.51 %
- 0.00%
- 0.00%
- 0.00%
- 10.80%
- 0.00%
- 5.00%
- 0.00%
- -8.33%
- -4.00%
- 17.15%
- 2.28%
- 50.00%
- 4.40%
- 0.00%
- 0.00%
- -100.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 17.65%
- -2.38%
- 0.00%
- -14.29%
- 0.00%
- 0.00%
- 3.05%
Activit
Fines 8� ForFeits
1 01-421 00-351 1 0 Highway Patrol Fines
101-42100-35130 DWI Forfeitures
101-42100-35140 Violations Bureau
101-42100-35150 Tobacco Fines
101-42100-35200 Forfeits
Total Fines & Forfeits
Miscellaneous
1 01-41 300-3621 0 Interest Income
101-41300-36230 Contributions/Donations
101-41940-36230 Contributions & donations
101-45120-36230 Contributions & donations
101-45400-36230 Contributions & donations
101-41910-36240 Developer Reimbursements
101-41500-36245 Conduit Debt Application Fee
101-41500-36246 Conduit Debt Fees
1 01-41 91 0-36280 Other Miscellaneous Revenue
101-43100-36270 Miscellaneous Reimbursements
101-41300-36270 Miscellaneous Reimbursement
101-41500-36270 Miscellaneous Reimbursement
101-41940-36270 Miscellaneous Reimbursement
101-43100-36275 Private Street Light Reimbursements
101-42100-36280 Miscellaneous Reimbursement
101-42400-36280 Fire Inspection Reimbursement
Total Miscellaneous
Total Operating Revenues
Other Financing Sources
101-42100-39101 Sales of General Fixed Assets
101-45200-39203 Transfer
Total Other Financing Sources
Total General Fund Revenue
Operatinq Expenses
Mayor & Council
Elections
Administration
Finance & Support Services
Planning & Zoning
Government Buildings
Public Safety
Emergency Management
Protective Inspections
Street Maintenance
Park Maintenance
Recreation
Celebrating Arden Hills
Reserves/Contingency
Transfers
Total Operating Expenses
Capital Outlav
Mayor & Council
Elections
Administration
Finance & Support Services
Planning & Zoning
Government Buildings
Public Safety
Emergency Management
Protective Inspections
Street Maintenance
Park Maintenance
Recreation
Celebrating Arden Hills
Transfers
Total Capital Outlay
Total General Fund Expenses
Revenue Over/(Under) Expenses
Actual Actual Budget Amended YTD Actual Proposed Adopted % Change
FY 2008 FY 2009 FY 2010 FY 2010 FY 2011 FY 2011 10 vs 11
9, 215 788 10, 000 10, 000 508 10, 000 - 0.00%
1, 232 1,132 1, 000 1, 000 - 1, 000 - 0.00%
19, 642 23, 844 23, 000 23, 000 10, 771 23, 000 - 0.00%
100 - - - - - - 0.00%
- 347 5,441 5,441 900 5,441 - 0.00%
30,189 26,111 39,441 39,441 12,180 39,441 - 0.00%
64,830 31,941 40,000 40,000 (2,659) 40,000 - 0.00%
(59) 1,385 3,600 3,600 581 3,600 - 0.00%
85 - - - - - - 0.00%
- 500 - - 2,000 - - 0.00%
- - 15,000 15,000 3,150 15,000 - 0.00%
- - - - - - - 0.00%
- 500 - - - 500 - 0.00%
- - - - - 10, 000 - 0.00%
50 - - - - - - 0.00%
553 468 550 550 195 550 - 0.00%
25,213 1,275 4,000 4,000 661 4,000 - 0.00%
60 3,797 3,000 3,000 - 3,000 - 0.00%
- - - - - - - 0.00%
- - - - - - - 0.00%
6,178 3,109 - - - - - 0.00%
- - - - - - - 0.00%
96,911 42,975 66,150 66,150 3,928 76,650 - 15.87%
3, 626, 350 3, 705, 733 3, 831,157 3, 831,157 339, 239 3, 936, 344 - 2. 75%
- - - - - - - 0.00%
- - - - - - - 0.00%
- - - - - - - 0.00%
$ 3, 626, 350 $ 3, 705, 733 $ 3, 831,157 $ 3, 831,157 $ 339, 239 $ 3, 936, 344 $ - 2.75%
$ 54,611 $ 76,760 $ 86,936 $ 86,936 $ 33,221 $ 84,706 $ - -2.57%
20,557 1,656 12,600 12,600 69 1,720 - -86.35%
342,265 370,599 338,434 338,434 221,495 336,607 - -0.54%
124,869 132,039 144,448 144,448 68,277 134,451 - -6.92%
219, 379 182, 688 260, 876 260, 876 87,467 271,614 - 4.12%
186,180 219,465 240,711 240,711 87,526 238,024 - -1.12%
1,197, 336 1, 272, 292 1, 308, 900 1, 308, 900 650, 898 1, 362, 223 - 4.07%
7,129 7,408 32,921 32,921 7,418 26,445 - -19.67%
216, 319 247,119 251,158 251,158 114,438 258, 931 - 3.09%
265,447 282,019 286,501 286,501 127,059 281,614 - -1.71%
357,428 397,752 415,489 415,489 157,539 413,989 - -0.36%
204,855 209,070 215,784 215,784 83,620 219,453 - 1.70%
- - 25, 000 25, 000 2, 395 25, 000 - 0.00%
- - - - - 28,967 - 0.00%
700,000 378,696 252,600 252,600 - 252,600 - 0.00%
3, 896, 375 3, 777, 564 3, 872, 358 3, 872, 358 1, 641, 421 3, 936, 344 - 1.65%
- - - - - - - 0.00%
- - - - - - - 0.00%
9 - - - - - - 0.00%
- - - - - - - 0.00%
7 - - - - - - 0.00%
8 - - - - - - 0.00%
9 - - - - - - 0.00%
3 - - - - - - 0.00%
7 - - - - - - 0.00%
7 - - - (3,431) - - 0.00%
7 - - - - - - 0.00%
- - - - - - - 0.00%
- - - - - - - 0.00%
- - - - - - - 0.00%
7 - - - (3,431) - - 0.00%
2$ 3, 777, 564 $ 3, 872, 358 $ 3, 872, 358 $ 1, 637, 990 $ 3, 936, 344 $ - 1.65%
1,91
1, 03
5,20
94
3, 59
1,04
38
38
14, 52
$ 3, 910, 90
(284,552) (71,831) (41,201) (41,201) (1,298,751) (0)
� EN HILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTIUN NO. 2010-046
A RESOLUTION SETTING THE PRELIMINARY LEVY
FOR TA�XES PAYABLE IN 2011
BE IT RESOLVED by the Arden Hills City Council that the following proposed sums of
money be levied for levy year 2010 payable in 2011 upon taxable property in said City of Arden
Hills for the following purposes:
LEVY AMOUNT CERTIFIED
BEFORE HACA HACA LEVY AMOUNT
General Fund $3,088,964 $ - 0 - $3,088,964
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS
THIS 13th DAY OF SEPTEMBER, 2010.
S TANLEY D. HARP S TEAD, MAYOR
ATTEST:
PATRICK KLAERS, CITY ADMINISTRATOR
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION N4. 2010-047
RESOLUTION ADOPTING TRUTH IN TA�XATION PUBLIC HEARING DATE FOR
PROPOSED TA�XES PAYABLE IN 2011
BE IT RESO.LVED by the Arden Hills City Council that the following Truth in
Taxation Public Hearing date, time and place for proposed property taxes payable in 2011 be
certified to the Ramsey County Auditor and that notice of the Public Hearing be published in
accordance with Minnesota Statute.
Public
Hearin
Date: December , 2010
Time: P.M.
Place: Council Chambers
1245 West Highway 96
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS
THIS 13t" DAY OF SEPTEMBER, 2010.
S TANLEY D. H1��RP S TEAD, MAYOR
ATTEST:
PATRICK KLAERS, CITY ADMINISTR.ATOR
- ��. EI�' HIL,LS
MEMORANDUM
DATE: September 13, 2�10
TO: Honorable Mayor and City Council Members
FR4M: Patrick Klaers, City Administrator
SUBJECT: Proposed 2011 Budget Adjustments
Back�round
_
At the August 16, 2010 Council work session, the preliminary 201 l city budget was
presented and reviewed. The main topics of discussion were the tax levy, the general fund
operating expenditures, and stafiing levels. Toward the end of the discussion, a list of
options for adjusting the budget by ten percent (10%) was requested.
General Fund proposal for 2011
Before evaluating the list of options for budget adj ustments, it is appropriate to review the
2011 proposal and comment on some of the important parts of the budget.
The first item to note is that the budget is a work in progress as more data and information
becomes available and as decisions are made by the Council. For example, having a 2%
maximum COLA increase in the budget versus the 3% that was in the draft that the Council
reviewed on August 16th. Accordingly, the figures noted in this memo will be slightly
different than what the Council saw on Au ust 16th.
g
The General Fund budget is proposed at $3,936,344 which is a$105,187 or 2.75% increase
in revenues.
The tax levy is proposed at $3,088,964 which is a$72,499 or 2.4% increase.
The Public Safety category (Fire, Sheriff s Contract, Animal Control, and Dispatching
Services) is $1,362,223. This is a$53,323 or 4.07% increase. This category is already set
for 2011.
The Personnel Services function, without any increases in staffing, wages or benefits, is
proposed at $1,308,841. This is a$8,404 or .65% increase. Unless there are going to be
staff reductions, cuts in staff hours, staff furloughs, or the city is not going to fill some
vacant positions (i.e. the Community Development Director position), then only minor
reductions can take place from what is in the proposed 2011 budget. These minor
reductions would be in the area of not replacing all or some of the interns, the high school
student worker, and the temporary/seasonal workers (mainly in street, parks, and
recreation).
There are no cross over expenses between the Public Safety category and the Personnel
Services function as all of the Public Safety expenses are contracted services. Therefore, if
most of these two budget activities are off limits for cuts, then we are looking at a total of
$1,265,13 8 being available for possible reductions in the budget.
Attachment A displays the above comments.
Regarding specific expenditures in the budget, a few comments should be made about:
TCAAP, the Professional Services line item in the Administration and Planning budgets,
the Community Survey, Emergency Management, and the Transfers budget.
The TC1��AP expenses and revenues are listed as a Special Revenue Fund. However, there
is a problem with this budget. While the $70,000 expenditure estimate may be accurate;
there is no source of revenue identified. The $70,000 in revenues is listed under the
"contributions and donations" line item and maybe a developer will pay for these expenses;
but it much more likely that the expenses will be financed from the General Fund within the
Professional Services line item in the Administration and Planning budgets. Therefore
reductions in these two General Fund line items will be difficult to recommend.
The Community Survey will be pursued in either late 2010 or in early 2011. There are no
funds speci� cally identified for this proj ect, so the most appropriate line item would be
Professional Services in Planning if the survey takes place in 2011.
The Emergency Management budget includes $10,000 for Professional Services. This is a
new expenditure. I would like to present a proposal to the Council from Lance Ross,
Emergency Preparedness Resource Group LLC, for an Emergency Management Services
contract at a future work session.
The Council deserves a great deal of credit for establishing the Transfer budget. This
program of moving funds into designated capital reserves is a sound financial management
practice. If these transfers were to be eliminated in an upcoming year, then it would be
dif� cult to reestablish these expenditures without a corresponding increase in the tax levy.
To not do the transfers may constitute a structural change in the budget.
Options for Bud�et Ad_iustments
Please see Attachment B for a list of options for adjusting the preliminary 2011 budget.
None of the options are pleasant, easy or being recommended at this time; but any or all of
them can be further discussed at the September 13th City Council meeting or at a future
Council work session.
In reviewing the attached list of possible budget adjustments, the options fall into a number
of different classifications. Some of these classifications are:
• ones that will never happen
• ones that seem reasonable and may be approved
• ones that are looked at as "one time" adjustments and which would come back next
year for consideration
• ones that are "structural" in nature and may constitute a shift in Council policy
It is difficult to recommend too many cuts and a reduction in the tax levy when:
• all requests for expenditures are reasonable, accurate estimates and consistent with
Council goals for providing good municipal services
• the tax rate per capita is low in Arden Hills when compared to similar and
neighboring communities
• the tax levy increase is small and below the levy limit
Recommendation
It is recommended that, at this time, the City Council make no adjustments to the proposed
2011 General Fund expenditures.
If the Council reduces the proposed 2011 tax levy and, therefore, reduces General Fund
revenues, then budget adj ustments can be discussed and considered at future Council work
.
sessions.
Attachment A
General Fund Budget
10 Percent
The G F budget revenues increase:
$3,936,344
$ 393,634
$ 105,187 or 2.75%
General Fund Tax Revenue
2010 G F Tax Revenue
Tax Increase
, ..
� .. •�
$3,016,465
$ 72,499 or 2.4%
Tax revenues are 78.8% of the total General Fund revenues.
G F 2011 budget
Minus Public Safety
$3,936,344
$1,362,223
Minus Personal Services
Balance
$1,308,841
$1,265,280
10 Percent $ 126,528
Attachment B
Mayour/Council
$ 5,000
$ 7,000
$ 1,000
$ 7,125
Administration
$ 8,000
$ 3,500
$ 1,200
$ 500
$ 1,000
$ 1,000
Finance
$ 1,000
$ 1,000
Plannin�/Zonin�
$ 5,000
$ 30,000
$ 500
$ 1,000
no retreat facilitator (Professional Services line item)
reduce the number of newsletters by 25%
eliminate some Council meeting meals
eliminate NYFS contribution
no interns or student workers
less professional services — no staff development activities
no national conference for Administrator
no state conference for Administrator
no state conference for Deputy Clerk
reduce miscellaneous expenses
reduce financial consulting fees
eliminate 1 staff from attending the state conference
no interns/temporary employees
reduce professional services by 50% (needed for TCAAP ?)
no state conference for City Planner
reduce supplies estimate for community meetings
Government Buildin�s
$ 500 reduce estimate for building/grounds expenses
$ 4,000 reduce estimate for phone/cell phone expenses
$ 2,000 reduce estimate for gas/electric expenses
$ 3,000 reduce estimate for sanitationlwaste removal expenses
Protective Services
$ 1,000 reduce training expenses
Streets
$ 1,000
P—
$ 1,500
Recreation
$ 3,000
$ 1, 000
$ 500
reduce the amount of hours for seasonal employees
reduce the estimate for using engineering services
hire 10% fewer temporary employees (equals fewer summer programs)
reduce estimate for amount of needed umpires
reduce estimate for rental facilities
Transfers
$200,000
$ 50,000
$ 12,600
Contin�enc_y
_�
$ 28,967
Revenues
$ 11,000
$ 41,201
no transfer to the PIR fund
no transfer to the equipment fund
no transfer to the EDA fund
reduce employee increase in wages/benefits to zero
institute traffic administrative �nes program
match the amount of reserves that were used to balance the 2010 budget
T—
$435,093