HomeMy WebLinkAboutCCWkspAgenda 9-7-2011Falcon Heights City Council Workshop
City Hall
2077 W Larpenteur Ave.
6:30 p.m.
AGENDA
Wednesday, September 7, 2011
1) Northeast Suburban Campus Connector (NESCC)
Construction Agreement
2) Draft 2012 General Fund Budget
If you have a disability and need accommodation in order to attend this
meeting, please notify City Hall 48 hours in advance between the hours of
8:00 a.m. and 4:30 p.m. at 651-792-7600. We will be happy to help.
REQUEST FOR COUNCIL ACTION
Families, Fields and Fair
__________________________
Meeting Date September 7, 2011
Agenda Item Workshop 1
Attachment Draft NESCC Construction Agreement
NESCC Cost Breakdown
Submitted By Justin Miller, City Administrator
The City That Soars!
Item Northeast Suburban Campus Connector (NESCC) Construction Agreement
Description
Since 2009, the cities of Falcon Heights and Roseville, along with the University of
Minnesota, have been developing plans for a pedestrian and bicycle trail along
Fairview Avenue. This project, the Northeast Suburban Campus Connector
(NESCC), was awarded grant funds in the amount of $1,079,000.
Due to construction timing issues, along with easement acquisition delays along the
corridor, the two cities agreed to split the project into phases. Phase I will include
work on Fairview Avenue south of County Road B through the University of
Minnesota.
Earlier this summer the City of Roseville solicited bids for this project. Phase I of
this project will cost $595,010.90, but only $520,000 of the grant proceeds were
allocated to this portion of the project. City Engineer Deb Bloom submitted a
request to Transit for Livable Communities (TLC), the local organization tasked
with allocating this grant funding, asking for a supplemental grant award in the
amount of $83,336. Additional funding was awarded making Phase I fully grant
funded.
As the funding agency for this project, TLC is that if Phase II is not implemented,
the entire grant award will be reimbursed by each participating city. Phase II in
Falcon Heights includes acquiring an easement adjacent to Gibbs Farm for the
completion of a sidewalk between Cleveland Avenue and the golf course driving
range. The construction cost of Phase I attributed to Falcon Heights is roughly
$205,284.10 while Phase II (absent any easement acquisition costs) is currently
budgeted at $88,168.30.
A construction agreement with Roseville is attached, which spells out the role of
each city in this project. Before formal action is requested on this agreement, staff
wanted to discuss it with the council to see if any additional information was
needed.
Budget Impact Phase I is completely funded by a grant from Transit for Livable Communities.
Attachment(s) Draft NESCC Construction Agreement
NESCC Cost Breakdown
Action(s)
Requested
No action requested.
NESCC CONSTRUCTION AGREEMENT
This Agreement is made on August ____, 2011, between the City of Roseville, a
Minnesota municipal corporation (“Roseville”), and the City of Falcon Heights, a Minnesota
municipal corporation (“Falcon Heights”).
1. PURPOSE
Roseville and Falcon Heights (Collectively the “Cities”) have determined that it is in the
best interests of the residents of each city to undertake in a cooperative fashion the construction
of the Northeast Suburban Campus Connector Bicycle/ Pedestrian Project (the “Project”). The
goal of the Cities is to provide for a coordinated cost effective completion of the Project. The
purpose of this agreement is to set forth the terms governing the design and construction of the
Project.
2. PROJECT
2.1 The Project shall consist of the facilities identified in Exhibit A hereto, subject to
modification as provided herein.
2.2 The costs of the Project will be paid by the Cities as provided in Section 5.1
hereof.
3. DESIGN
3.1 Roseville, has prepared, engineering drawings, specifications and construction
plans for the Project. The construction plans will include a cost estimate. The final cost estimate
will include all costs associated with the Project as well as a contingency budget for
unforeseeable circumstances associated with the construction. Roseville will comply with any
requirements of Minnesota law with respect to approvals of such plans and specifications.
4 CONSTRUCTION
4.1 Roseville will be the contracting party and will use ordinary and prudent efforts to
require that the Project is constructed in compliance with approved plans and specifications and
completed with reasonable promptness.
4.2 Roseville will notify Falcon Heights of any change order which increases the cost
of any individual construction contract for the Project by more than $5,000 of the original
amount thereof or which materially changes the scope of the Project. Roseville shall obtain the
written authorization of Falcon Heights prior to approving such a change order. However, prior
written authorization is not necessary if the change order presents imminent health/safety issues
making prior authorization impractical. In such cases, the change order shall be reasonably
presented to Falcon Heights for ratification. Falcon Heights must not unreasonably withhold its
consent to change orders resulting from unforeseen circumstances arising from the construction.
5. PAYMENT OF COSTS OF PROJECT
5.1 The costs of the Project will be paid for with available Federal Funds. Total
Amount awarded: $1,331,878 Federal Funds are designated for the following categories:
Project development, planning, and design, $131,000
Education and promotion: $10,000
Construction: $1,190,878
5.2 Any Federal eligible construction costs for the project that are not covered by
Federal Funds shall be shared by the Cities. The cost split will be based on a proportionate share
of the project cost in each individual City. Cost split based on the Engineer’s Estimate: 38%
Falcon Heights, 62% Roseville.
5.4 Any Federal eligible project development, planning and design costs shall be
shared equally by the Cities. These will include, but not be limited to, the services identified in
Article 6 hereof, all costs related to obtaining all necessary permits and approvals for the Project,
costs incurred in agreements, and any and all other costs associated with the Project.
5.3 Any non- Federal eligible costs for the project shall be paid for by the City in
which the cost is incurred.
5.5 All invoices or requests for payment will be approved and paid by Roseville.
Within 10 days of the end of each calendar month, Roseville shall provide a statement to Falcon
Heights showing the prior month’s activity, the invoices received, the full costs of services
provided by Roseville staff, and the amount Falcon Heights owes to Roseville for the Project and
for items outside of the Project, such as those in sections 2.3 hereof. Within 30 days of the
receipt of that statement, Falcon Heights shall provide in writing a list and explanation of any
amounts it disputes and pay the undisputed amount. Any disputes regarding payment shall be
resolved through the dispute resolution process contained in Article 7 hereof.
5.6 If this Agreement is terminated for any reason, both cities shall nevertheless be
liable for the payment of their cost share which is incurred up to the date of termination of this
Agreement, or as a result of termination of this Agreement.
6. SERVICES TO BE PROVIDED BY ROSEVILLE
6.1 Roseville will provide qualified engineering employees to perform design and
related technical services to the Project. These services include:
a) Complete design and feasibility studies;
b) Conduct public meetings, including informational meetings and meetings
with each city council if necessary;
c) Prepare plans and specifications;
-2-
d) Manage contracts made for completion of the Project and for items outside
the Project.
d) Supervise construction, including inspection of the work;
6.2 Compensation for Roseville employees shall be calculated consistent with the
Joint Powers Agreement For The City Of Falcon Heights Part-Time Utilization Of City Of
Roseville Engineering Employees.
6.3 Roseville may, at its discretion, contract with a qualified third party to conduct or
complete any or all of these services.
7. DISPUTE RESOLUTION
7.1 If a dispute arises between the Cities regarding this agreement or the construction
of the Project, the City Manager and City Administrator of each city, or their designees, must
promptly meet and attempt in good faith to negotiate a resolution of the dispute.
7.2 If the Cites have not negotiated a resolution of the dispute within 30 days after
this meeting, the Cities may jointly select a mediator to facilitate further discussion.
7.3 If a mediator is not used or if the Cities are unable to resolve the dispute within 30
days after the first meeting with the selected mediator, the dispute shall be adjudicated in civil
court.
8. GENERAL PROVISIONS
8.1 All notices under this agreement must be delivered personally or sent by first
class mail addressed to:
If to Roseville: Bill Malinen
City of Roseville
2660 Civic Center Drive
Roseville, MN 55113
If to Falcon Heights Justin Miller
City of Falcon Heights
2770 Larpenteur Avenue
Falcon Heights, MN 55113
or addressed to such party at such other address as such party shall hereafter furnish by notice to
the other party.
8.2 This Agreement may be amended only in writing, executed by the proper
representatives of each city.
8.3 This Agreement must be interpreted under the laws of the State of Minnesota.
-3-
-4-
Date: __________________________ CITY OF ROSEVILLE
By:
Its Mayor
And:
Its City Manager
Date: __________________________ CITY OF FALCON HEIGHTS
By:
Its Mayor
And:
Its City Administrator
EXHIBIT A
THE PROJECT
The proposed work will include the construction of a pathway along Fairview Avenue
between County Road B and Larpenteur Avenue. The striping of bike lanes between
County Road B and Larpenteur Avenue. The striping of bike lanes along Larpenteur
Avenue between Cleveland and Fairview Avenue.
Location Limits Improvement Description Break out
Fairview Ave Co Rd B-2 to
Co Rd B
Construct continuous pathways on both sides
of street.
Phase 2
Fairview Ave County Rd B to
Larpenteur Ave
Construct a off- street pathway (8 feet wide)
on the east side of Fairview- upgrade signal
system at both County Road B and Larpenteur.
Phase 1
Fairview Ave County Rd B to
Larpenteur
Stripe on-street bike lanes. Phase 1
Larpenteur
Ave
Fairview Ave to
Cleveland Ave
Stripe on-street bike lanes- upgrade signal
system at both Cleveland andGortner.
Phase 1
Larpenteur Ave Gortner Ave to
Cleveland Ave
construct new sidewalk along the north side Phase 2
A-1
NORTHEAST SUBURBAN CAMPUS CONNECTOR COST ESTIMATE
Low Bid Breakdown Totals & projected Phase 2
Jurisdiction STREET SEGMENT
TRAIL
COSTS
STREET
COSTS NON- PAR
STORM
SEWER
COSTS
TRAIL
COSTS
STREET
COSTS
STORM
SEWER
COSTS Phase 1 total Phase 2 total Project Total
U of Mn GORTNER AVENUE$106,711.90$82,067.10$5,325.00$194,104.00$194,104.00
Falcon Heights LARPENTEUR AVENUE (CLEVE TO COFFMAN)$88,168.30$88,168.30$88,168.30
Falcon Heights LARPENTEUR AVENUE (FV TO CLEVE)$14,521.00$14,521.00$14,521.00
Falcon Heights FALCON HEIGHTS-FAIRVIEW AVENUE$166,788.00$21,407.10$2,568.00$190,763.10$190,763.10
Roseville ROSEVILLE-FAIRVIEW AVENUE CRB TO RL$163,845.40$45,772.50$34,680.00$68,072.00$312,369.90$312,369.90
Roseville FAIRVIEW EAST SIDE UNDER 36$144,279.00$144,279.00$144,279.00
Roseville FAIRVIEW WEST SIDE UNDER 36$77,834.10$77,834.10$77,834.10
Roseville FAIRVIEW EAST SIDE NORTH FROM 36$81,373.55$81,373.55$81,373.55
Roseville FAIRVIEW WEST SIDE NORTH FROM 36$74,519.60$74,519.60$74,519.60
$1,177,932.55
CONSTRUCTION ESTIMATE$451,866.30$67,179.60$116,747.10$75,965.00$466,174.55$0.00$0.00$711,758.00$466,174.55$1,177,932.55
CONTINGENCY 10%NA NA NA NA$46,617.46$0.00$0.00$46,617.46$46,617.46
SUBTOTAL$451,866.30$67,179.60$116,747.10$75,965.00$512,792.01$0.00$0.00$711,758.00$512,792.01$1,224,550.01
Phase 1 Federal Funds$520,000.00
Phase 1 Additional Funds$83,336.00
Phase 1 Total Federal Funds$603,336.00
Phase 1 Federal costs$595,010.90$595,010.90
Phase 1 Local costs$116,747.10$116,747.10
Phase 2 Federal Funds$418,000.00
Phase 2 Additional Funds$169,542.00 these funds can be used for engineering with a 50/50 split
Phase 2 Total Federal Funds$587,542.00
no cont.w/ cont
Phase 2 Federal estimated costs$466,174.55$512,792.01
Phase 1- Low Bid Phase 2- Engineer's Estimate
REQUEST FOR COUNCIL ACTION
Families, Fields and Fair
__________________________
The City That Soars!
Item Draft 2012 General Fund Budget
Description
At the August 3rd
workshop, the city council reviewed for the first time a draft 2012
general fund budget. At this workshop the council asked staff to further revise the
budget and present an update during the September 7th
workshop. A preliminary
levy must be set by September 15th
, so the city council will formally act on the
preliminary budget at the September 14th
city council meeting. Since the last
workshop, several details have developed and have been incorporated in to the
draft:
1) Staff reviewed the budget and found roughly $20,000 in expenditure
reductions. They mostly were in the area of building inspections (to better
correlate with expected revenues) and other small reductions throughout
the budget.
2) With these reductions and small revenue adjustments, the overall general
fund levy is proposed to increase by 3.5%.
3) Levy limits were removed for 2012, so a special unallotment levy will not
be needed this year. Staff will still be recommending that a special levy
for the equipment certificates be approved to pay the annual principal and
interest payments that will be due in the amount of roughly $72,300.
4) Staff’s goal was to keep expenditures as close to a zero increase as
possible, with the notable exception of the police contract ($15,864 increase
due to contract language and increased dispatching costs) and the
inclusion of $10,000 for the fire department study. In total, general fund
expenditures are proposed to increase by $17,912, or 1.07%. In other
words, non-public safety expenditures are proposed to decrease by $7,952.
5) Included in the budget is a 1% cost-of-living (COLA) increase for all city
employees. Staff is also estimating an 8% increase in health insurance
expenses.
6) Non-property tax revenues are projected to decrease by $15,900. This is
mainly due to lower than expected interest revenues and fine charges
(parking tickets, other police citations).
7) For purposes of this draft budget, staff attempted to keep the amount of
budgeted transfers from enterprise funds to the general fund constant at
Meeting Date September 7, 2011
Agenda Item Workshop 2
Attachment Draft 2012 General Fund Budget
Net Tax Capacity Diagram
Fiscal Disparities Information
Market Value Homestead Credit
Information
Submitted By Justin Miller, City Administrator
$71,917.
8) In total, when taking into account projected expenditures and revenues,
and attempting to keep the budgeted transfer constant, a levy of $999,802
is required for our general operating budget.
Impacts to the overall property tax levy
2011 Budget:
Property Tax Levy $917,674
Levy for equipment certificates $72,300
2011 unallotment levy $48,318
Total Levy $1,038,292
Proposed 2012 Budget:
Draft Property Tax Levy: $999,802
Levy for equipment certificates: $72,300
Total Proposed Levy: $1,072,102 (+$33,810, 3.26% increase)
The $33,810 increase in the proposed levy can be attributed to three main areas:
Increase in police contract and dispatch costs: $15,864
Fire department study: $10,000
Decrease in expected fines and forfeitures: $10,000
Total $35,864
Fiscal Disparities and Market Value Exclusion Impacts
Two major areas of the budget will impact the city’s taxpayers in 2012. During the
2011 legislative session, the Market Value Homestead Credit (MVHC) program was
eliminated. Metro Cities has a good explanation of this change:
Beginning in 2012, the current MVHC program is repealed, and qualifying homeowners will
see a portion of their market value “excluded” from property taxes (computations will mirror
the existing MVHC). Impacts of this change will vary by jurisdiction, depending on local tax
bases and tax rates. (Since some values will be reduced under the new program, a city’s tax
base will be reduced accordingly, meaning tax rates would need to increase to see the same
levy amount).
Instead of the state reimbursing local governments for the credit provided to the homeowner,
the new program will instead shift taxes to other properties within a jurisdiction to
accommodate the value reductions for qualifying homes. C/I and other property classes not
eligible for the exclusion will likely see more of an impact from the changes. Because the state
will no longer be financially involved, cities will also no longer be playing “middle man” in
the reimbursement structure. (The changes allow the state to book $260 million in savings).
A more impactful change to all property taxpayers in Falcon Heights involves our
fiscal disparities distribution. For a more detailed analysis of the fiscal disparities
program, a “Fiscal Disparities 101” fact sheet from the League of Minnesota Cities is
attached. In the simplest terms, we are set to receive $176,630 in fiscal disparities
dollars in 2012, a decrease of $51,158 (-22.5%) from 2011. This is money that is
subtracted from the amount the city council levies, so any decrease in this
distribution increases the portion of the levy that is applied against all properties in
Falcon Heights.
The impact of the proposed levy to a median valued home in Falcon Heights will be:
Payable 2011 Payable 2012 Payable 2012 if no
change in levy
Median Valued Home $254,550 $229,592 $229,592
Tax Capacity (1% of
value)
$2545 $2296 $2296
City Tax Rate 21.56% 25.05% 24.11%
City Taxes $549 $575 $553
Homestead Credit ($32) - -
Net City Tax $517 $575 $553
Net Change $58 or 11.2% $36 or 6.96%
For every $10,000 change in the levy, the percentage levy change from 2011 would
equal about 1%, and city taxes on a median valued home would change by
approximately $6.50.
Staff will be prepared to answer any questions and take suggestions regarding any
changes to the proposed 2012 budget.
Budget Impact Dependent on eventual adoption of 2012 budget
Attachment(s) Draft 2012 General Fund Budget
Net Tax Capacity Diagram
Fiscal Disparities Information
Market Value Homestead Credit Information
Action(s)
Requested
No action required, but guidance on how to proceed will be beneficial as staff
continues to refine the 2012 budget proposal.
GENERAL FUND REVENUE BUDGET
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALBUDGETESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011PROPERTY TAXES
30111CURRENT AD VALOREM TAXES644,129638,189689,886689,886823,172
19.32%19.32%
30111FISCAL DISPARITY TAX197,502216,008227,788227,788176,630
-22.5%-22.5%30112DELINQUENT AD VALOREM6756,03009,0000#DIV/0!-100.0%30113UNALLOTMENT LEVY
03,79848,31848,3180
TOTAL PROPERTY TAX LEVY
842,306864,025965,992974,992999,802
3.50%2.5%
LICENSES & PERMITS
32110CONTRACTOR LICENSES1,6401,8201,2501,6001,600
28.0%0.0%
32120LIQUOR LICENSES
3,1112,9113,0003,0007,000
133.3%133.3%
32122OFF-SALE LIQUOR LICENSES0000032130CIGARETTE & AMUSEMENT LICENSES250250500500500
0.0%0.0%
32140MISCELLANEOUS BUSINESS LICENSES4,4455,9206,0005,0005,000
-16.7%0.0%
32150RENTAL HOUSING LICENSE1,3501,8051,3002,1502,000
53.8%-7.0%
32210BUILDING PERMITS
10,68417,07510,00015,00013,000
30.0%-13.3%
32212ROOFING PERMITS
8,94710,2765,0006,0005,000
0.0%-16.7%
32214WINDOW/SIDING PERMITS9,48715,2987,0008,0007,000
0.0%-12.5%
32216DRIVEWAYS/FENCES
475527500500500
0.0%0.0%
32220MECHANICAL PERMITS10,12411,2717,0005,0005,000
-28.6%0.0%
32230PLUMBING PERMITS
1,0871,8641,2001,5001,300
8.3%-13.3%
32235SIGN PERMITS
100502005050
-75.0%0.0%
32240OTHER PERMITS
1,7332,0083,0001,8002,000
-33.3%11.1%
TOTAL LICENSES & PERMITS
53,43271,07545,95050,10049,950
8.7%-0.3%
INTERGOVERNMENTAL
33400STATE GRANTS & AIDS (LGA)391,278310,126310,126310,126310,126
0.0%0.0%33405MARKET VALUE HOMESTEAD CREDIT30,463104000#DIV/0!#DIV/0!33410OTHER GRANTS (PERA & TREE DISASTER)1,7071,7071,7078,6061,707
0.0%-80.2%
33430
MINNESOTA STATE AID - DOT
0
0
0
0
0
#DIV/0!
#DIV/0!
33440INSURANCE PREMIUM - FIRE35,46436,86660,00060,00060,000
0.0%0.0%
33700CABLE TV FRANCHISE FEES47,77748,46946,00048,00048,000
4.3%0.0%
TOTAL INTERGOVERNMENTAL
506,689397,272417,833426,732419,833
0.5%-1.6%
CHARGES FOR SERVICES34101CITY FACILITY RENTAL
9,2749,43310,00011,00010,000
0.0%-9.1%
34120PLAN CHECK FEES
5,71010,0344,0007,0006,000
50.0%-14.3%
34150ZONING REVIEW FEES
1,100020025200
0.0%700.0%
34160ADMINISTRATIVE FEES
9614020000-100.0%#DIV/0!
34170SALE OF MAPS & COPIES
1721502550
0.0%100.0%
34210LAUDERDALE - FIRE CONTRACT35,52928,79327,00028,00028,000
3.7%0.0%34215FIRE RENTAL HOUSING INSPECTIONS5005000-100.0%#DIV/0!34217ACCIDENT CLEAN UP
3504,3401,5001,5002,000
33.3%33.3%
34221FALSE ALARMS - FIRE
395051,750500500
-71.4%0.0%
34222FALSE ALARMS - SECURITY1,2462,1631,9008001,000
-47.4%25.0%
34223CONDUIT BONDING
00000#DIV/0!#DIV/0!
TOTAL CHARGES FOR SERVICES
53,41055,42946,65048,85047,750
2.4%-2.3%
1 1 1 1
FINES & FORFEITS
35110COURT FINES
78,48661,79285,00076,00075,000
-11.8%-1.3%
TOTAL FINES & FORFEITS
78,48661,79285,00076,00075,000
-11.8%-1.3%
SPECIAL ASSESSMENTS36100SPECIAL ASSESSMENTS
00000#DIV/0!#DIV/0!
TOTAL SPECIAL ASSESSMENTS
00000#DIV/0!#DIV/0!
MISCELLANEOUS
36211INTEREST ON INVESTMENTS32,69823,74725,00012,00015,000
-40.0%25.0%36213CHANGE IN FAIR VALUE OF i7,000-3,798000#DIV/0!#DIV/0!36400MISCELLANEOUS
4,4561,7434,0001,0001,000
-75.0%0.0%
36410TIES PAYMENT
00000#DIV/0!#DIV/0!
36420INSURANCE REFUND
10,55911,5797,5007,5007,500
0.0%0.0%36425INSURANCE SETTLEMENT8,1190000#DIV/0!#DIV/0!36430CERT TRAINING
02503500#DIV/0!-100.0%36450EVENT COMMUNITY SUPPORT1,5867751,0009611,000
0.0%4.1%
36460EVENTS REVENUE
1,0001,3651,0001,0001,000
0.0%0.0%
364655K RUN SPECIAL EVENT
7551,255800800800
0.0%0.0%
36470RAIN BARREL WORKSHOP
02,64007200#DIV/0!-100.0%
TOTAL MISCELLANEOUS
66,17239,33139,30024,33126,300
-33.1%8.1%
TOTAL REVENUES
1,600,495
1,488,924
1,600,725
1,601,005
1,618,635
1.1%
1.1%
OTHER FINANCING SOURCES39200TRANSFERS
077,40071,91771,91771,917
0.0%0.0%
TOTAL OTHER FINANCING SOURCES
077,40071,91771,91771,917
0.0%0.0%
TOTAL REVENUES &
OTHER FINANCING SOURCES
1,600,4951,566,3241,672,6421,672,9221,690,552
1.07%1.1%
2 2 2 2
LEGISLATIVE EXPENDITURES (111)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION
60510MAYOR & CITY COUNCIL19,80019,80019,80019,80019,800
0.0%0.0%
64012FICA CONTRIBUTIONS
1,5151,5151,5151,5151,515
0.0%0.0%
TOTAL COMPENSATION
21,31521,31521,31521,31521,315
0.0%0.0%
MATERIALS & SUPPLIES
70100SUPPLIES
319215500300400
-20.0%33.3%
70410LEGAL NOTICES
9728631,1001,0001,000
-9.1%0.0%
TOTAL MATERIALS & SUPPLIES
1,2901,0781,6001,3001,400
-12.5%7.7%
OTHER SERVICES & CHARGES
86100CONFERENCES/EDUCATION/TRAINING572409600600600
0.0%0.0%
86140COMMISSIONS/MEMBERSHIPS/ASSOCIATIONS7,6517,8107,8677,8677,960
1.2%1.2%
86500COOPERATIVE SERVICE10,34110,22410,22410,22410,471
2.4%2.4%
88000INSURANCE & BONDS
36237503550
0.0%42.9%
TOTAL OTHER SERVICES & CHARGES
18,92618,48018,74118,72619,081
1.8%1.9%
TOTAL EXPENDITURES
41,53140,87341,65641,34141,796
0.3%1.1%
3
3 3 3
ADMINISTRATIVE EXPENDITURES (112)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
102,155108,29991,300100,90092,380
1.2%-8.4%
60520PART-TIME EMPLOYEES
03,88813,20011,00014,435
9.4%31.2%
64011
PERA CONTRIBUTIONS
6,764
7,689
6,650
7,060
6,715
1.0%
-4.9%
64012FICA CONTRIBUTIONS
7,4598,2537,9858,5608,170
2.3%-4.6%
64031HOSPITALIZATION
3,2465,2216,1802,3006,300
1.9%173.9%
64032DENTAL
202424390165390
0.0%136.4%
64033LONG-TERM DISABILITY
156164220165180
-18.2%9.1%
64034LIFE INSURANCE
204244270230250
-7.4%8.7%
TOTAL COMPENSATION
120,185134,181126,195130,380128,820
2.1%-1.2%
MATERIALS & SUPPLIES
70100SUPPLIES
3,5714,0615,5005,0005,500
0.0%10.0%
70500POSTAGE
2,3472,5343,0002,6003,000
0.0%15.4%
TOTAL MATERIALS & SUPPLIES
5,9186,5958,5007,6008,500
0.0%11.8%
OTHER SERVICES & CHARGES
80330CONSULTANT
00000#DIV/0!#DIV/0!80340ADMINISTRATIVE SUPPORT40000086010MILEAGE
595687600800800
33.3%0.0%
86100CONFERENCES/EDUCATION/ASSOCIATIONS3,6984,2844,5004,5004,500
0.0%0.0%
86110MEMBERSHIPS
1003050145150
200.0%3.4%
87000REPAIR OFFICE EQUIPMENT2,5622,7092,8002,7001,900
-32.1%-29.6%
88000INSURANCE & BONDS
16,11317,68020,00012,38315,000
-25.0%21.1%
88500PAYPAL EXPS
6847738009001,000
25.0%11.1%
89000MISCELLANEOUS
1,3641,8791,8001,8001,800
0.0%0.0%
TOTAL OTHER SERVICES & CHARGES
25,15528,04230,55023,22825,150
-17.7%8.3%
TOTAL EXPENDITURES
151,258168,817165,245161,208162,470
-1.7%0.8%
4 4 4 4
FINANCE EXPENDITURES (113)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
68,23469,13472,30071,00072,800
0.7%2.5%
60520PART-TIME FINANCE INTERN11,5466,8018,5007,0008,000
-5.9%14.3%
64011PERA CONTRIBUTIONS
4,6064,8695,2355,2205,290
1.1%1.3%
64012FICA CONTRIBUTIONS
6,0255,7326,1756,0006,225
0.8%3.8%
64031HOSPITALIZATION
7,4445,5468,5507,1508,770
2.6%22.7%
64032DENTAL
477459565450580
2.7%28.9%
64033LONG-TERM DISABILITY
197195205290300
46.3%3.4%
64034LIFE INSURANCE
386368390390400
2.6%2.6%
TOTAL COMPENSATION
98,91693,102101,92097,500102,365
0.4%5.0%
MATERIALS & SUPPLIES
70100SUPPLIES
1,3481621,3001,5001,500
15.4%0.0%
TOTAL MATERIALS & SUPPLIES
1,3481621,3001,5001,500
15.4%0.0%
OTHER SERVICES & CHARGES
80310AUDIT
8,1008,1008,3258,3258,550
2.7%2.7%80330FINANCIAL CONSULTANT1,5000000#DIV/0!#DIV/0!80600SOFTWARE MAINTENANCE3,8903,9314,2004,0575,300
26.2%30.6%
86010MILEAGE
184130240220220
-8.3%0.0%
86100CONFERENCES/EDUCATION/ASSOCIATIONS1,2541,6422,6001,6002,000
-23.1%25.0%
86110MEMBERSHIPS
9595959595
0.0%0.0%
88000INSURANCE & BONDS
00350350350
0.0%0.0%
89000MISCELLANEOUS
350795400465500
25.0%7.5%
TOTAL OTHER SERVICES & CHARGES
15,37414,69316,21015,11217,015
5.0%12.6%
TOTAL EXPENDITURES
115,638107,957119,430114,112120,880
1.2%4.7%
5
5 5 5
LEGAL EXPENDITURES (114)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011 OTHER SERVICES & CHARGES80200LEGAL FEES
7,73512,59410,00010,00010,000
0.0%0.0%
80210ZONING CODE UPDATE
2,1061,4642,0001,8002,000
0.0%11.1%
TOTAL OTHER SERVICES & CHARGES
9,84114,05812,00011,80012,000
0.0%1.7%
TOTAL EXPENDITURES
9,84114,05812,00011,80012,000
0.0%1.7%
6 6 6 6
ELECTIONS EXPENDITURES (115)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION
60100REGULAR SALARIES
1,2530000#DIV/0!#DIV/0!
60520PART-TIME EMPLOYEES
1,4420000#DIV/0!#DIV/0!
64011PERA CONTRIBUTIONS
850000#DIV/0!#DIV/0!
64012FICA CONTRIBUTIONS
1000000#DIV/0!#DIV/0!
64031HOSPITALIZATION
3850000#DIV/0!#DIV/0!
64032DENTAL
330000#DIV/0!#DIV/0!
64033LONG-TERM DISABILITY
40000#DIV/0!#DIV/0!
64034LIFE INSURANCE
70000#DIV/0!#DIV/0!
TOTAL COMPENSATION
3,3090000#DIV/0!#DIV/0!
MATERIALS & SUPPLIES
70100SUPPLIES
257507200304500
150.0%64.5%
70500POSTAGE
16015015
0.0%#DIV/0!
TOTAL MATERIALS & SUPPLIES
273507215304515
139.5%69.4%
OTHER SERVICES & CHARGES80300ELECTION CONTRACT
020,36416,25016,25016,250
80400CONSULTING
3,7120000#DIV/0!#DIV/0!
86010MILEAGE
0010000-100.0%#DIV/0!
87090REPAIR OTHER EQUIPMENT8210000#DIV/0!#DIV/0!88000INSURANCE & BONDS
00000#DIV/0!#DIV/0!
TOTAL OTHER SERVICES & CHARGES
4,53320,36416,35016,25016,250
-0.6%0.0%
TOTAL EXPENDITURES
8,11420,87016,56516,55416,765
1.2%1.3%
7 7 7 7
COMMUNICATIONS EXPENDITURES (116)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
16,52017,07816,90016,90617,375
2.8%2.8%
60520PART-TIME EMPLOYEES(Cable & Special Events)1,8712,0491,6501,7501,750
6.1%0.0%
64011PERA CONTRIBUTIONS
1,1151,2021,2201,1501,265
3.7%10.0%
64012FICA CONTRIBUTIONS
1,4051,4601,4201,4301,465
3.2%2.4%
64031HOSPITALIZATION
54128800400815
1.9%103.8%
64032DENTAL
250502650
0.0%92.3%
64033LONG-TERM DISABILITY
4342505052
4.0%4.0%
64034LIFE INSURANCE
94899598100
5.3%2.0%
TOTAL COMPENSATION
21,61521,94822,18521,81022,872
3.1%4.9%
MATERIALS & SUPPLIES
70100SUPPLIES
216227300
-100.0%#DIV/0!
70420NEWSLETTERS/INFORMATION7902,0092,7001,2002,700
0.0%125.0%
70500POSTAGE
03831,0004001,000
0.0%150.0%
TOTAL MATERIALS & SUPPLIES
1,0062,6194,0001,6003,700
-7.5%131.3%
OTHER SERVICES & CHARGES85010TELEPHONE
4,9144,2494,2504,2504,250
0.0%0.0%
85050CABLE TV
12,24712,52913,00012,50013,500
3.8%8.0%
85060WEBSITE
1,1132,6573,0002,7003,000
0.0%11.1%
85070NETWORK/TECHNICAL SUPPORT(I-NET)14,27314,27314,27014,27015,198
6.5%6.5%
86010MILEAGE
7264000#DIV/0!#DIV/0!86100COMMISSIONS/MEMBERSHIPS/TRAINING0050050
0.0%#DIV/0!
87090REPAIR EQUIPMENT
00000#DIV/0!#DIV/0!
88000INSURANCE & BONDS
00000#DIV/0!#DIV/0!
89010SPECIAL EVENTS
2,9604,5554,5004,5004,500
0.0%0.0%
TOTAL OTHER SERVICES & CHARGES
35,57938,32739,07038,22040,498
3.7%6.0%
TOTAL EXPENDITURES
58,20162,89465,25561,63067,070
2.8%8.8%
OTHER FINANCING USES97000TRANSFERS
00000#DIV/0!#DIV/0!
TOTAL OTHER FINANCING USES
00000#DIV/0!#DIV/0!
TOTAL EXPENDITURES &OTHER FINANCING USES
58,20162,89465,25561,63067,070
2.8%8.8%
8
8 8 8
PLANNING & INSPECTIONS EXPENDITURES (117)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011
COMPENSATION60100REGULAR SALARIES
46,88847,71747,70047,80048,875
2.5%2.2%
60520PART-TIME FIRE INSPECTOR2,8361,5608,0005,0008,000
0.0%60.0%
64011PERA CONTRIBUTIONS
3,1653,3563,4453,3003,545
2.9%7.4%
64012FICA CONTRIBUTIONS
3,7633,7274,2504,0394,355
2.5%7.8%
64031HOSPITALIZATION
842721,8908101,935
2.4%138.9%
64032DENTAL
49012055120
0.0%118.2%
64033LONG-TERM DISABILITY
106102120118120
0.0%1.7%
64034LIFE INSURANCE
207195210208212
1.0%1.9%
TOTAL COMPENSATION
57,85656,73065,73561,33067,162
2.2%9.5%
MATERIALS & SUPPLIES
70100SUPPLIES
26522200170200
0.0%17.6%
TOTAL MATERIALS & SUPPLIES
26522200170200
0.0%17.6%
OTHER SERVICES & CHARGES80400CONSULTING PLANNER
00000#DIV/0!#DIV/0!
80500GIS SUPPORT
9679672,0001,2502,000
0.0%60.0%
81210BUILDING INSPECTORS30,16044,29935,00043,12128,000
-20.0%-35.1%
81220MECHANICAL INSPECTORS8,6888,6856,4006,4004,000
-37.5%-37.5%
81230PLUMBING INSPECTORS
00000#DIV/0!#DIV/0!
86010MILEAGE
104414400250400
0.0%60.0%
86100CONFERENCES/EDUCATION/ASSOCIATIONS3133511,000200400
-60.0%100.0%
88000INSURANCE & BONDS
00000#DIV/0!#DIV/0!89100ENERGY REBATE PROGRAM195721400200400
0.0%100.0%
TOTAL OTHER SERVICES & CHARGES
40,42655,43745,20051,42135,200
-22.1%-31.5%
TOTAL EXPENDITURES
98,547112,189111,135112,921102,562
-7.7%-9.2%
9 9 9 9
EMERGENCY PREPAREDNESS EXPENDITURES (121)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
2,7692,7252,8002,8002,825
0.9%0.9%
64011PERA CONTRIBUTIONS
187191204190206
1.0%8.4%
64012FICA CONTRIBUTIONS
204200215200217
0.9%8.5%
64031HOSPITALIZATION
336361
916.7%1933.3%
64032DENTAL
00405
25.0%#DIV/0!
64033LONG-TERM DISABILITY
44455
25.0%0.0%
64034LIFE INSURANCE
44444
0.0%0.0%
TOTAL COMPENSATION
3,1723,1263,2373,2023,323
2.7%3.8%
MATERIALS & SUPPLIES
70120SUPPLIES
2123002050
-83.3%150.0%
TOTAL MATERIALS & SUPPLIES
2123002050
-83.3%150.0%
OTHER SERVICES & CHARGES85015CELL PHONE
783735850800850
0.0%6.3%
85020ELECTRIC
70857075
-11.8%7.1%86100MILEAGE/CONF/EDU/ASSO100154014050#DIV/0!-64.3%87091CIVIL DEFENSE SIREN REPAIR02822000200
0.0%#DIV/0!
88000INSURANCE & BONDS
00000#DIV/0!#DIV/0!
TOTAL OTHER SERVICES & CHARGES
8901,1701,1351,0101,175
3.5%16.3%
TOTAL EXPENDITURES
4,0834,2984,6724,2324,548
-2.7%7.5%
10 10 10 10
POLICE EXPENDITURES (122)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011OTHER SERVICES & CHARGES81000POLICE SERVICES
571,536565,955590,167590,167596,069
1.0%1.0%
81200DISPATCH 911
014,69219,78919,78929,751
TOTAL OTHER SERVICES & CHARGES
571,536580,647609,956609,956625,820
2.6%2.6%
TOTAL EXPENDITURES
571,536580,647609,956609,956625,820
2.6%2.6%
11 11 11 11
PROSECUTION EXPENDITURES (123)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011OTHER SERVICES & CHARGES80200LEGAL FEES
31,92830,74834,00033,00035,000
2.9%6.1%
TOTAL OTHER SERVICES & CHARGES
31,92830,74834,00033,00035,000
2.9%6.1%
TOTAL EXPENDITURES
31,92830,74834,00033,00035,000
2.9%6.1%
12 12 12 12
FIRE SERVICES EXPENDITURES (124)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION
61510DRILL COMPENSATION15,59215,26314,50014,99315,000
3.4%0.0%
61520FIRE COMPENSATION
9,05913,44712,13013,80812,251
1.0%-11.3%
61530FIRE HALL CLEANING
6509751,4001,4001,400
61540HAZMAT TNG COMPENSATION3164901,4001,400#DIV/0!0.0%61550OFFICER COMPENSATION12,70712,19914,61512,02413,000
-11.1%8.1%
64011PERA CONTRIBUTIONS
00000#DIV/0!#DIV/0!
64012FICA CONTRIBUTIONS
2,9103,3023,1003,3373,225
4.0%-3.4%
TOTAL COMPENSATION
40,94945,83545,74546,96246,276
1.2%-1.5%
MATERIALS & SUPPLIES
70100SUPPLIES
4,8614,4925,0004,0005,000
0.0%25.0%
70120TOOLS
1650000
70500POSTAGE
00000#DIV/0!#DIV/0!74000MOTOR FUEL & LUBRICANTS1,8351,2711,7001,7001,700
0.0%0.0%
77000CLOTHING
3,2441,7062,4002,4002,400
0.0%0.0%
TOTAL MATERIALS & SUPPLIES
10,1047,4699,1008,1009,100
0.0%12.3%
OTHER SERVICES & CHARGES80330FIRE CONSULTANT
000010,000#DIV/0!#DIV/0!
82010CLEANING/WASTE REMOVAL00000#DIV/0!#DIV/0!82011LINEN CLEANING
776966900800800
-11.1%0.0%
85010TELEPHONE
00000#DIV/0!#DIV/0!
85015CELL PHONE
1,499867900900900
0.0%0.0%
86010MILEAGE
1332810000-100.0%#DIV/0!
86020TRAINING
11,68820,55418,00018,00018,000
0.0%0.0%
86110MEMBERSHIPS
1,046485800800800
0.0%0.0%
86120SUBSCRIPTIONS
20750200140140
-30.0%0.0%
86200MEDICAL EXAMINATIONS2,7279782,6002,0002,600
0.0%30.0%86700EMERGENCY DISPATCH SVCS (911)00000#DIV/0!#DIV/0!86800RADIO SUPPORT FEE
9689681,1001,0001,100
0.0%10.0%
87025HAZMAT EQUIPMENT MAINT1231381,5001,3001,400
-6.7%7.7%
87029REPAIR OTHER EQUIPMENT10,89016,22616,00016,00016,000
0.0%0.0%
87092REPAIR RADIOS
2,1114,0042,5002,5002,500
0.0%0.0%
87100HAZMAT
1871,7600400400#DIV/0!0.0%
88000INSURANCE & BONDS
14,17715,30216,50015,07315,500
-6.1%2.8%
89000MISCELLANEOUS
749768800675800
0.0%18.5%
TOTAL OTHER SERVICES & CHARGES
47,28063,09361,90059,58870,940
14.6%19.1%
TOTAL EXPENDITURES
98,333116,397116,745114,650126,316
8.2%10.2%
13
13 13 13
FIRE RELIEF (125)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION & AID64040MN STATE FIRE AID
35,46436,86660,00060,00060,000
0.0%0.0%
TOTAL COMPENSATION & AID
35,46436,86660,00060,00060,000
0.0%0.0%
TOTAL EXPENDITURES
35,46436,86660,00060,00060,000
0.0%0.0%
14 14 14 14
CITY HALL & GROUNDS EXPENDITURES (131)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
20,38020,78921,35021,10021,920
2.7%3.9%
60520PART-TIME EMPLOYEES
33002,4322,4322,520
3.6%3.6%
64011PERA CONTRIBUTIONS
1,3761,4551,5501,4101,590
2.6%12.8%
64012FICA CONTRIBUTIONS
1,4141,4301,8151,8001,870
3.0%3.9%
64031HOSPITALIZATION
4,7803,9585,5505,1005,690
2.5%11.6%
64032DENTAL
289305340320340
0.0%6.3%
64033LONG-TERM DISABILITY
1718202020
0.0%0.0%
64034LIFE INSURANCE
3030313031
0.0%3.3%
TOTAL COMPENSATION
28,61627,98533,08832,21233,981
2.7%5.5%
MATERIALS & SUPPLIES
70110SUPPLIES
5,9297,0506,6007,0007,000
6.1%0.0%
TOTAL MATERIALS & SUPPLIES
5,9297,0506,6007,0007,000
6.1%0.0%
OTHER SERVICES & CHARGES82010WASTE REMOVAL
2,8443,2074,0003,7004,500
12.5%21.6%
85010TELEPHONE
00000#DIV/0!#DIV/0!
85015CELL PHONE
188145250198230
-8.0%16.2%
85020ELECTRIC
10,35210,49311,50010,50010,500
-8.7%0.0%
85030NATURAL GAS
5,9025,1826,0006,0006,000
0.0%0.0%
85040WATER
1,3423,5062,0002,0002,000
0.0%0.0%
85070SEWER
208247240255255
6.3%0.0%
86100CONFERENCES/EDUCATION/ASSOCIATIONS5972811,7006001,000
-41.2%66.7%
87010
CITY HALL GROUNDS/FACILITIES/BLDG. MAINT.
9,3126,3339,0006,0008,000
-11.1%33.3%
88000INSURANCE & BONDS
3,9366,4126,8005,7366,400
-5.9%11.6%
89000MISCELLANEOUS
02831,0003001,000
0.0%233.3%
TOTAL OTHER SERVICES & CHARGES
34,68236,08842,49035,28939,885
-6.1%13.0%
TOTAL EXPENDITURES
69,22771,12382,17874,50180,866
-1.6%8.5%
15
15 15 15
STREET EXPENDITURES (132)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
23,96528,98328,90030,20029,600
2.4%-2.0%
60520PART-TIME EMPLOYEES
3,5061,2029,1529,1529,500
3.8%3.8%
64011PERA CONTRIBUTIONS
1,6772,0572,0902,0202,150
2.9%6.4%
64012FICA CONTRIBUTIONS
1,8372,0602,9053,0102,995
3.1%-0.5%
64031HOSPITALIZATION
5,7245,6017,9507,3008,130
2.3%11.4%
64032DENTAL
453435475450485
2.1%7.8%
64033LONG-TERM DISABILITY
2725302630
0.0%15.4%
64034LIFE INSURANCE
4342464446
0.0%4.5%
TOTAL COMPENSATION
37,23340,40551,54852,20252,936
2.7%1.4%
MATERIALS & SUPPLIES
70120SUPPLIES
3,9681,9532,0003,1003,500
75.0%12.9%
74000MOTOR FUEL & LUBRICANTS4,3162,3815,0005,5006,000
20.0%9.1%
75000BITUMINOUS PATCHING
2326747001,1001,000
42.9%-9.1%
75100STREET SIGNS
04465,6005,600800
-85.7%-85.7%
77000CLOTHING
1,118505800800900
12.5%12.5%
TOTAL MATERIALS & SUPPLIES
9,6345,95814,10016,10012,200
-13.5%-24.2%
OTHER SERVICES & CHARGES83030SNOW REMOVAL
17,26129,32930,00020,00030,000
0.0%50.0%
85015CELL PHONE
16588225100100
-55.6%0.0%85020STREET LIGHTING POWER30,4900000#DIV/0!#DIV/0!85040WATER FOR BLVD PLANTS
01,1232,0002,0002,000
86100CONFERENCES/EDUCATION/ASSOCIATIONS859510095100
0.0%5.3%
86101MILEAGE
22196200130200
0.0%53.8%
87000REPAIR EQUIPMENT
2,8281,7873,5003,0003,500
0.0%16.7%
87005CROSSWALK PAINTING
0000400-#DIV/0!#DIV/0!87010BOULEVARD MAINTENANCE73407800400600
-25.0%50.0%
87011REPAIR PICKUP TRUCK
3712195000500
0.0%#DIV/0!
87016REPAIR JOHN DEERE
3606000600
0.0%#DIV/0!
87120STREET LIGHT MAINTENANCE2,9860000#DIV/0!#DIV/0!87500RENTAL OF EQUIPMENT
00000#DIV/0!#DIV/0!
88000INSURANCE & BONDS
7,4443,9247,5005,8036,000
-20.0%3.4%
89000MISCELLANEOUS
1931,0060110#DIV/0!-100.0%
TOTAL OTHER SERVICES & CHARGES
62,15538,07445,42531,53944,000
-3.1%39.5%
TOTAL EXPENDITURES
109,02184,437111,07399,841109,136
-1.7%9.3%
OTHER FINANCING USES97000TRANSFERS
00000#DIV/0!#DIV/0!
TOTAL OTHER FINANCING USES
00000#DIV/0!#DIV/0!
TOTAL EXPENDITURES &OTHER FINANCING USES
109,02184,437111,07399,841109,136
-1.7%9.3%
16 16 16 16
ENGINEERING EXPENDITURES (133)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011OTHER SERVICES & CHARGES
80100ENGINEERING SERVICES4,9344,5936,0006,0006,000
0.0%0.0%
TOTAL OTHER SERVICES & CHARGES
4,9344,5936,0006,0006,000
0.0%0.0%
TOTAL EXPENDITURES
4,9344,5936,0006,0006,000
0.0%0.0%
17 17 17 17
TREE PROGRAM EXPENDITURES (134)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
3,6693,732000#DIV/0!#DIV/0!
60520PART-TIME EMPLOYEES
00000#DIV/0!#DIV/0!
64011PERA CONTRIBUTIONS
248261000#DIV/0!#DIV/0!
64012FICA CONTRIBUTIONS
262269000#DIV/0!#DIV/0!
64031HOSPITALIZATION
6830000#DIV/0!#DIV/0!
64032DENTAL
410000#DIV/0!#DIV/0!
64033LONG-TERM DISABILITY
30000#DIV/0!#DIV/0!
64034LIFE INSURANCE
40000#DIV/0!#DIV/0!
TOTAL COMPENSATION
4,9104,261000#DIV/0!#DIV/0!
MATERIALS & SUPPLIES
70110SUPPLIES
005000500
0.0%#DIV/0!
74000MOTOR FUEL & LUBRICANTS0000
#DIV/0!#DIV/0!
TOTAL MATERIALS & SUPPLIES
005000500
0.0%#DIV/0!
OTHER SERVICES & CHARGES
80330FORESTRY CONSULTANT5,1892,6386,5006,5006,500
0.0%0.0%
84010TREE TRIMMING
00000#DIV/0!#DIV/0!
84020TREE REMOVAL
00000#DIV/0!#DIV/0!
84030TREE PLANTING
00000#DIV/0!#DIV/0!
84040STORM DAMAGE
00000#DIV/0!#DIV/0!
86010MILEAGE
077000#DIV/0!#DIV/0!
86100CONFERENCES/EDUCATION/ASSOCIATIONS00000#DIV/0!#DIV/0!88000INSURANCE & BONDS
00000#DIV/0!#DIV/0!
89000MISCELLANEOUS
1,11425000#DIV/0!#DIV/0!
TOTAL OTHER SERVICES & CHARGES
6,3042,7396,5006,5006,500
0.0%0.0%
TOTAL EXPENDITURES
11,2147,0007,0006,5007,000
0.0%7.7%
18 18 18 18
PARK MAINTENANCE & ADMINISTRATION EXPENDITURES (141)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011COMPENSATION60100REGULAR SALARIES
28,94827,41928,35027,40028,890
1.9%5.4%
60520PART-TIME EMPLOYEES
5,0776,2186,0556,0556,300
4.0%4.0%
60540RINK ATTENDENTS-SEASONAL5,0572,8835,2004,0005,400
3.8%35.0%
64011PERA CONTRIBUTIONS
1,9541,9382,1001,8002,095
-0.2%16.4%
64012FICA CONTRIBUTIONS
2,6922,5673,0302,5603,108
2.6%21.4%
64031HOSPITALIZATION
8,1843,9588,7506,6008,960
2.4%35.8%
64032DENTAL
499305525430535
1.9%24.4%
64033LONG-TERM DISABILITY
3216303132
6.7%3.2%
64034LIFE INSURANCE
5828305355
83.3%3.8%
TOTAL COMPENSATION
52,50145,33254,07048,92955,375
2.4%13.2%
MATERIALS & SUPPLIES
70100SUPPLIES
1,4594,8823004,0004,1001266.7%2.5%74000MOTOR FUEL & LUBRICANTS01,4621,0001,0001,500
50.0%50.0%
TOTAL MATERIALS & SUPPLIES
1,4596,3441,3005,0005,600
330.8%12.0%
OTHER SERVICES & CHARGES82010WASTE REMOVAL
3536300100200
-33.3%100.0%
85010TELEPHONE
00000#DIV/0!#DIV/0!85011TELEPHONE - LANDLINE1,5771,3321,4001,350700
-50.0%-48.1%
85015CELL PHONE
353269450300350
-22.2%16.7%
85020ELECTRIC
7,9335,1597,5007,0007,500
0.0%7.1%
85030NATURAL GAS
1,0002,8212,5002,5002,500
0.0%0.0%
85040WATER
1,2271,6201,2001,5001,500
25.0%0.0%
85070SEWER
368523460550550
19.6%0.0%
86100CONFERENCES/EDUCATION/ASSOCIATIONS216610500500500
0.0%0.0%
86101MILEAGE
241295300275300
0.0%9.1%
86110MEMBERSHIPS
350503548
-4.0%37.1%
87120FACILITIES & GROUNDS MAINTENANCE1,2594,5467,0003,0005,000
-28.6%66.7%
87130MINI WARMING HOUSE
5450000#DIV/0!#DIV/0!
88000INSURANCE & BONDS
9,33410,29811,5008,46110,0000%600.0%18.2%
89000MISCELLANEOUS
50861200870200
0.0%-77.0%
TOTAL OTHER SERVICES & CHARGES
24,63227,56933,36026,44129,348
-12.0%11.0%
TOTAL EXPENDITURES
78,59279,24688,73080,37090,323
1.8%12.4%
OTHER FINANCING USES97000TRANSFERS
20,80020,80021,00021,00022,000
4.8%4.8%
TOTAL OTHER FINANCING USES
20,80020,80021,00021,00022,000
4.8%4.8%
TOTAL EXPENDITURES &OTHER FINANCING USES
99,392100,046109,730101,370112,323
2.4%10.8%
19 19 19 19
CONTINGENCY EXPENDITURES (192)
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011WAGES, SALARIES, & COMP
64011PERA
960000
64012FICA CONTRIBUTION
57690000
TOTAL WAGES, SALARIES & COMP
67290000
OTHER SERVICES & CHARGES89000MISCELLANEOUS
00000#DIV/0!#DIV/0!
89010UNALLOCATED COMPENSATION7,5351,194000#DIV/0!#DIV/0!
TOTAL OTHER SERVICES & CHARGES
7,5351,194000#DIV/0!#DIV/0!
TOTAL EXPENDITURES
8,2071,284000#DIV/0!#DIV/0!
OTHER FINANCING USES97000TRANSFERS
0295000#DIV/0!#DIV/0!
TOTAL OTHER FINANCING USES
0295000#DIV/0!#DIV/0!
TOTAL EXPENDITURES &OTHER FINANCING USES
8,8791,669000#DIV/0!#DIV/0! 20 20 20 20
TOTAL GENERAL FUND EXPENDITURES BY LINE ITEM
COMPARE 2012COMPARE 2012
ACCOUNT
ACTUALACTUALACTUALESTIMATEDBUDGETBUDGET TOBUDGET TO
NUMBERACCOUNT TITLE200920102011201120122011 BUDGETESTIMATED 2011*-
COMPENSATION60100REGULAR SALARIES
314,782325,876309,600318,106314,665
1.6%-1.1%
60510MAYOR & CITY COUNCIL19,80019,80019,80019,80019,800
0.0%0.0%
60520PART-TIME EMPLOYEES26,60921,71848,98942,38950,505
3.1%19.1%
60540RINK ATTENDANTS-SEASONAL5,0572,8835,2004,0005,400
3.8%35.0%
61510DRILL COMPENSATION15,59215,26314,50014,99315,000
3.4%0.0%
61520FIRE COMPENSATION
9,05913,44712,13013,80812,251
1.0%-11.3%
61530FIRE HALL CLEANING
6509751,4001,4001,400
0.0%0.0%
61540OTHER TRAINING COMPENSATION3164901,4001,400#DIV/0!0.0%61550OFFICER COMPENSATION12,70712,19914,61512,02413,000-11.1%8.1%64011PERA CONTRIBUTIONS
21,27123,01822,49422,15022,856
1.6%3.2%
64012FICA CONTRIBUTIONS
30,16230,60432,41032,45133,145
2.3%2.1%
64031HOSPITALIZATION
31,83224,38739,67629,66340,661
2.5%37.1%
64032DENTAL
2,0691,9282,4691,8962,505
1.5%32.1%
64033LONG-TERM DISABILITY
589565679705739
8.8%4.8%
64034LIFE INSURANCE
1,0379991,0761,0571,098
2.0%3.9%
64040FIRE RELIEF ASSOCIATION AID35,46436,86660,00060,00060,000
0.0%0.0%
TOTAL COMPENSATION
526,711531,176585,038575,842594,425
1.6%3.2%
MATERIALS & SUPPLIES
70100SUPPLIES
22,21523,57322,70025,39428,250
24.4%11.2%
70120TOOLS
1650000#DIV/0!#DIV/0!
70410LEGAL NOTICES
9728631,1001,0001,000
-9.1%0.0%
70420NEWSLETTERS
7902,0092,7001,2002,700
0.0%125.0%
70500POSTAGE
2,3632,9174,0153,0004,015
0.0%33.8%
74000MOTOR FUEL & LUBRICANTS6,1505,1137,7008,2009,200
19.5%12.2%
75000BITUMINOUS PATCHING
2326747001,1001,000
42.9%-9.1%
75100STREET SIGNS
04465,6005,600800-85.7%-85.7%
77000CLOTHING
4,3622,2113,2003,2003,300
3.1%3.1%
TOTAL MATERIALS & SUPPLIES
37,24937,80647,71548,69450,265
5.3%3.2%
OTHER SERVICES & CHARGES
80100ENGINEERING SERVICES4,9344,5936,0006,0006,000
0.0%0.0%
80200LEGAL FEES
39,66343,34244,00043,00045,000
2.3%4.7%
80210ZONING CODE UPDATE
2,1061,4642,0001,8002,000
0.0%11.1%
80300ELECTION CONTRACT
020,36416,25016,25016,250
80330ADMIN./AUDIT/FIN/FOREST CONSULTANT14,78910,73814,82514,82525,050
69.0%69.0%80340ADMINISTRATIVE SUPPORT400000#DIV/0!#DIV/0!80400CONSULTANT PLANNER3,7120000#DIV/0!#DIV/0!80500GIS SUPPORT
9679672,0001,2502,000
0.0%60.0%
80600FINANCIAL SOFTWARE MAINTENANCE3,8903,9314,2004,0575,300
26.2%30.6%
81000POLICE SERVICES
571,536565,955590,167590,167596,069
1.0%1.0%
81210BLDG/MECHANICAL INSPECTORS38,84852,98441,40049,52132,000
-22.7%-35.4%
81200DISPATCH 911
014,69219,78919,78929,751
50.3%50.3%
82010CLEANING/WASTE REMOVAL3,6554,2095,2004,6005,500
5.8%19.6%
83030SNOW REMOVAL
17,26129,32930,00020,00030,000
0.0%50.0%
84000
TREE TRIM/REMOVAL/PLANTING/CLEARANCE
00000#DIV/0!#DIV/0!
84040STORM DAMAGE
00000#DIV/0!#DIV/0! 21 21 21 21
85010TELEPHONE
4,9144,2494,2504,2504,250
0.0%0.0%
85011TELEPHONE - LANDLINE1,5771,3321,4001,350700
-50.0%-48.1%
85015CELL PHONE
2,9882,1032,6752,2982,430
-9.2%5.7%85020STREET LIGHTING POWER30,4900000#DIV/0!#DIV/0!85030UTILITIES
28,34030,67333,48532,37532,880
-1.8%1.6%
85050CABLE TV
12,24712,52913,00012,50013,500
3.8%8.0%
85060WEBSITE
1,1132,6573,0002,7003,000
0.0%11.1%
85070NETWORK/TECHNICAL SUPPORT(I-NET)14,27314,27314,27014,27015,198
6.5%6.5%
86010MILEAGE
1,0871,3991,4401,2701,420
-1.4%11.8%
86020TRAINING-FIRE DEPT
11,68820,55418,00018,00018,000
0.0%0.0%
86100CONFERENCES/EDUCATION/ASSOCIATIONS15,84016,20119,96717,18718,250
-8.6%6.2%
86101MILEAGE
462391500405500
0.0%23.5%
86110MEMBERSHIPS
13095145130143
-1.4%10.0%
86200MEDICAL EXAMINATIONS2,7279782,6002,0002,600
0.0%30.0%
86500COOPERATIVE SERVICE10,34110,22410,22410,22410,471
2.4%2.4%
86800RADIO SUBSCRIBER FEE
9689681,1001,0001,100
0.0%10.0%
87000REPAIR AND MAINTENANCE33,29936,24443,60034,50039,600
-9.2%14.8%
87005CROSSWALK PAINTING
0000400
87010BOULEVARD LANDSCAPING73407800400600-25.0%50.0%87100HAZMAT
1871,7600400400
87130MINI WARMING HOUSE
5450000#DIV/0!#DIV/0!
87500RENTAL OF EQUIPMENT
00000#DIV/0!#DIV/0!
88000INSURANCE & BONDS
51,36653,65262,70047,84153,300-15.0%11.4%
88500PAYPAL EXPENSE
6847738009001,000
89000MISCELLANEOUS
11,8136,0114,2004,1214,300
2.4%4.3%
89010SPECIAL EVENTS
2,9604,5554,5004,5004,500
0.0%0.0%
89100ENERGY REBATE PROGRAM195721400200400
01
TOTAL OTHER SERVICES & CHARGES
941,709975,3161,018,887984,0801,023,862
0.5%4.0%
TOTAL EXPENDITURES
1,505,6691,544,2981,651,6401,608,6161,668,552
1.0%3.7%
OTHER FINANCING USES97000TRANSFERSTOTAL OTHER FINANCING USES
20,80021,09521,00021,00022,000
4.8%4.8%
20,80021,09521,00021,00022,000
4.8%4.8%
TOTAL EXPENDITURES & OTHER USES
1,526,4691,565,3931,672,6401,629,6161,690,552
1.07%3.7%
22 22 22 22
TOTAL GENERAL FUND EXPENDITURES BY DEPARTMENT
DEPT
ACTUALACTUALACTUALESTIMATEDBUDGETNUMBERDEPARTMENT TITLE20092010201120112012GENERAL GOVERNMENT111LEGISLATIVE
41,53140,87341,65641,34141,796
112ADMINISTRATIVE
151,258168,817165,245161,208162,470
113FINANCE
115,638107,957119,430114,112120,880
114LEGAL
9,84114,05812,00011,80012,000
115ELECTIONS
8,11420,87016,56516,55416,765
116COMMUNICATIONS
58,20162,89465,25561,63067,070117PLANNING & INSPECTIONS98,547112,189111,135112,921102,562TOTAL GENERAL GOVERNMENT
483,130527,658531,286519,566523,543
PUBLIC SAFETY
121EMERGENCY PREPAREDNESS4,0834,2984,6724,2324,548122POLICE
571,536580,647609,956609,956625,820
123PROSECUTION
31,92830,74834,00033,00035,000
124FIREFIGHTING
98,333116,397116,745114,650126,316
125FIRE RELIEF
35,46436,86660,00060,00060,000
TOTAL PUBLIC SAFETY
741,344768,956825,373821,838851,684
PARKS & PUBLIC WORKS
131CITY HALL & GROUNDS69,22771,12382,17874,50180,866132STREETS
109,02184,437111,07399,841109,136
133ENGINEERING
4,9344,5936,0006,0006,000
134TREE PROGRAM
11,2147,0007,0006,5007,000141PARK MAINTENANCE & ADMINISTRATION78,59279,24688,73080,37090,323TOTAL PARKS & PUBLIC WORKS
272,988246,400294,981267,212293,325
MISCELLANEOUS192CONTINGENCY
8,2071,284000
TOTAL MISCELLANEOUS
8,2071,284000
TOTAL EXPENDITURES
1,505,6691,544,2981,651,6401,608,6161,668,552
OTHER FINANCING USESTRANSFERS
20,80021,09521,00021,00022,000
TOTAL OTHER FINANCING USES
20,80021,09521,00021,00022,000
TOTAL EXPENDITURES &OTHER FINANCING USES
1,526,4691,565,3931,672,6401,629,6161,690,552 23
23 23 23
2011 2012
Net Tax Capacity $3,759,263
Net Tax Capacity $3,574,207
($185,056) or (4.9%)
Market Value
Exclusion accounts for $173,115 decrease
Total Levy $1,038,290 $1,072,102 Less Fiscal Disparities
($227,788) ($176,630)
Final Levy applied to taxpayers $810,502 $895,472 Resulting Tax Rate (NTC/Final Levy ) 21.560% 25.054%
Fiscal Disparities 101
August 2009
Local government units within the Twin Cities metropolitan area, which is comprised of the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, have
participated in a property tax base sharing program known as Metropolitan Fiscal Disparities
since 1975. A similar program began in 1998 for local government units in the Taconite Area,
which includes portions of the counties of St. Louis, Itasca, Crow Wing, and Aitkin, and all of
Lake and Cook counties. Under these programs, a portion of the growth in commercial,
industrial, and public utility property value of each community is contributed to a tax base
sharing pool. Each community receives a distribution of property value from the pool based on
the market value and population of each city.
Contribution
The contribution to the pool is equal to 40
percent of the growth in commercial,
industrial, and public utility value since the
base year (1971 for the Twin Cities; 1995 for
the Taconite Area). This measure of growth
includes both new construction and
inflationary increases in existing property
values. In 2009, for example, the total
amount of tax capacity contributed to the
Metropolitan fiscal disparities pool was
$395.8 million, which represents
approximately eight percent of the total tax
capacity within the seven-county area. The
contribution value is not available for local
tax purposes and therefore, the contribution
value must be subtracted from the total tax
capacity of each community before the local
tax rate is computed. The Taconite Area
program is much smaller, with just over $4
million of tax capacity contributed in 2008.
Distribution
The tax capacity contributed to the pool is
based on a distribution index. This index
compares each city’s total market value per
capita to the average market value per capita
for all cities and towns in the seven counties.
Cities that have relatively less market value
per capita receive a relatively larger
distribution from the pool than cities with
greater market value wealth per capita.
How are property taxes generated?
The tax capacity contributed to the pool
ultimately translates into property tax dollars
for each local government. These property
taxes, also known as the distribution levy, are
computed for each local government by
multiplying its distribution value by its prior
year tax capacity rate. The distribution levy
represents the amount of each local
government’s certified levy raised through
2
the fiscal disparities program. The balance of
the certified levy is used to compute the local
tax rate.
How are commercial/industrial and utility
parcels taxed?
Commercial and industrial properties are not
taxed twice. Instead, a portion of each
commercial or industrial property’s tax
capacity is taxed at the area-wide tax capacity
rate and the balance is taxed at the total local
tax rate. As a simple example, in a
community where exactly 40 percent of all
commercial, industrial, and utility property is
contributed to the fiscal disparities pool, 40
percent of each parcel’s value is taxed at the
area-wide tax rate and 60 percent is taxed at
the total local tax rate. In 2008, for example,
the Twin Cities area-wide tax rate was
115.921 percent and the Taconite Area-wide
tax rate was 132.643 percent.
Policy Issues
The original intent of the program was
articulated through the following six
objectives:
Provide a way for local governments
to share resources generated by
regional growth;
Encourage orderly urban development
by reducing competition for
commercial and industrial
development;
Establish incentives for regional
cooperation;
Provide a way for regional resources
to be available through the existing
system of local governments;
Make resources available to
communities at the beginning stages
of development or redevelopment;
and
Encourage environmental protection
Descriptions of the program, such as those
offered by the Minnesota House of
Representatives Research Department and
the Metropolitan Council, often highlight two
main goals that encapsulate several of the
original objectives:
Promote orderly urban planning and
development; and
Work towards a more equitable
distribution of fiscal resources.
Assessment of the program’s success in
accomplishing the second of these goals
often points out the “winners,” cities that are
net recipients, and “losers,” cities that are net
contributors. Proponents of the program
focus on the relative uniformity of the
taxation of commercial and industrial
property across the metropolitan area and the
stability the net contributors provide to the
region as a whole. They argue that greater
uniformity and stability give the entire region
a competitive edge in national and global
marketplaces.
The critics of the system argue that the
contribution rate of 40 percent is arbitrary
and that the distribution formula is solely
based on the relative property tax base wealth
of each city. Also, the formula uses non-
adjusted assessment levels. Cities with high
assessment levels contribute more tax base
than cities with lower levels, creating a
disincentive to raise the assessment level.
Although fiscal disparities is generally
considered to impact commercial and
industrial properties, a House Research study
found that homestead tax rates are also
affected. For example, the homestead tax
rate in St. Paul was 8.8 percent lower in 2004
because of the program. In the same year
Bloomington, a net contributor, experienced
a 5.5 percent increase in the average
homestead tax rate. The study found that tax
base sharing did not lead to such extreme
3
changes in most cities.
Within cities, property classes can experience
the impacts of tax base sharing differently.
Declines in the market values for Twin Cities
area commercial/industrial properties in the
early 1990's not only directly shifted property
tax burdens to other types of property, they
also reduced the amount of commercial and
industrial valuation contributed to the fiscal
disparities pool. As a result, the total
distribution levy generated through the fiscal
disparities program was also reduced. In the
mid-1990’s, market value rebounds reversed
this trend. But reductions in the
commercial/industrial and public utility
property tax class rates by the 1997-2001
Legislatures have slowed growth in the tax
capacity of both the Metropolitan and
Taconite Area fiscal disparities pools. When
the amount of this distribution levy declines
or grows more slowly than the total tax base,
a greater share of the local tax bill is paid by
other types of properties, including the
portion of each commercial, industrial, and
utility property value taxed at the local tax
rate.
Resources
House Research:
http://www.house.leg.state.mn.us/hrd/issinfo/tx_prop.htm
The Fiscal Disparities Program: Commercial-Industrial Tax Base
Minnesota’s Fiscal Disparities Programs
The Metropolitan Council
http://www.metrocouncil.org/metroarea/FiscalDisparities/index.htm
Fiscal Disparities: Tax Base Sharing in the Twin Cities Metropolitan Area
Revised 8/2009
HISTORY OF FISCAL DISPARITY PAYMENTS TO THE CITY
(Last 12 years)
Difference From
YEAR Payment Prior Year
2001 136,202
2002 161,245 25,043
2003 161,539 294
2004 167,057 5,518
2005 157,727 (9,330)
2006 146,011 (11,716)
2007 149,132 3,121
2008 176,846 27,714
2009 197,502 20,656
2010 216,008 18,506
2011 227,788 11,780
2012 176,630 (51,158)
40,428
2011 Law Change: A New Homestead Market Value Exclusion
replaces the Homestead Market Value Credit
The 2011 Legislature repealed the homestead residential Market Value Credit (the agricultural
credit did not change), and enacted a similarly designed homestead Market Value Exclusion.
This change is effective for taxes payable in 2012. The following synopsis is intended to help
local governments understand this law change.
Expiring Law: The Homestead Residential Market Value Credit
Homesteads received a credit on their tax statements reducing their gross tax.
As shown in the chart below, the credit equaled 0.4% of the first $76,000 in market
value. It was reduced by 0.09% of the market value over $76,000 until it hit $0 at
$413,800 of market value.
The state reimbursed local governments for the sum of the market value credits granted
to individual taxpayers on tax statements. As a result, some of the local governments’
levy came from the state as credit reimbursement payments, and some from property
tax payments.
When the state cut its reimbursement payments, local governments had to budget for a
gap between their levy and what they received. Local governments may have levied
more, cut some spending or both.
New Law: The Homestead Market Value Exclusion
A portion of homestead market value will be excluded from taxation.
As shown in the chart on the next page, the exclusion equals 40% of the first $76,000 in
market value. It is reduced by 9% of the market value over $76,000 until it hits $0 at
$413,800 of market value.
$-
$50
$100
$150
$200
$250
$300
$350
Credit
Market Value
$304 at $76,000
$0 at
$413,800
The state will no longer pay a share of the tax on homesteads, but homesteads have less
value subject to taxation.
The removal of the state spending on credits means property taxpayers, as a whole, will
pay more if levies remain the same.
The reduction in the tax base for homesteads means non-homesteads will pay a higher
share of the levy, and a large share of homesteads could pay more given that exclusion
amounts and other factors vary.
Local governments will receive the full amount that they levy from their taxpayers.
How do credits and exclusions affect tax calculations?
The prior law credit was deducted from a gross tax while the exclusion will reduce the taxable
value. Changing taxable value means outcomes won’t be identical.
Old Law: New Law:
The Credit The Exclusion
Estimated Market Value $116,000 $116,000
Exclusions $0 $26,800
Taxable Market Value $116,000 $89,200
Class Rate 1% 1%
Net Tax Capacity $1,160 $892
Tax Rate* 105.810% 110.920%
Gross Tax $1,227 $989
Credit $268 $0
Net Tax $959 $989
*The tax rate change used here reflects estimated average statewide rates for 2011 under either approach,
assuming no changes in levies. Levy decisions and local tax base dynamics will affect the change in rates.
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Exclusion
Market Value
$30,400 at $76,000
$0 at
$413,800
How might the change impact local government levies and budgeting and
property taxes?
There are three key considerations:
Local governments will receive the full amount they levy from their taxpayers.
Local governments do not need to plan for further state reimbursement cuts –because
there is no longer a payment to cut.
Local governments should recognize that removing $292 million of credits from the
system, and changing the composition of the tax base, will create large tax increases for
some properties. This may increase sensitivity by taxpayers to levy decisions.
Example: Budgeting and Tax Shift Scenario
Context for Taxes Payable in 2011. In August 2010, “City A” was planning for a 2011 levy of
$2,000,000. Approximately $1,900,000 was going to be paid by taxpayers and $100,000 by the
state in the form of Market Value Credit reimbursements. Local officials then learned the city
would have a $50,000 cut to its MVC Reimbursements, which meant the city would only receive
$1,950,000 of a $2 million levy.
City A decided to levy $2,040,000 for 2011. Officials anticipated they would make up almost
$40,000 of the $50,000 cut with the levy increase, and cut their planned spending by $10,000.
City A expected the levy of $2,040,000 would bring in approximately $1,990,000 (with
$1,940,000 from taxpayers and $50,000 from the state).
Decisions for Taxes Payable in 2012. Because there is no longer a credit, and thus no longer a
portion of the levy coming from the state, the full levy will come from taxpayers. As a starting
point, eliminating the credit for 2012 means city officials will have three general approaches:
Constant Levy: If City A keeps its levy constant at $2,040,000, taxpayers are actually
asked to pay $100,000 more than the $1,940,000 they paid in 2011 (a 5.2% increase).
Constant Taxes: Levying $1,940,000, keeps the total coming from taxpayers the same (a
0% increase), but the city loses $50,000 in revenue.
Constant Revenue: Levying $1,990,000 keeps the amount of revenue constant, but the
city is asking taxpayers to pay $50,000 more (a 2.6% increase).
Example Assumptions
To give some perspective of the tax shifts that might enter into this decision, assume the
following net tax capacity (NTC) tax base information:
Taxes Payable 2011 Taxes Payable 2012
Total NTC tax base $6,700,000 $6,366,384
Non-Homestead NTC $3,000,000 $3,000,000
Homestead NTC $3,700,000 $3,366,384
620 homes at $70,000 MV $434,000 $260,400
644 homes at $150,000 MV $966,000 $813,114
575 homes at $400,000 MV $2,300,000 $2,292,870
Also assume that the city rate is 30% of the total tax rate (for allocating the credits for 2011).
Tax Shifts Under Various Options. The following chart summarizes the levy options listed
above. It identifies the total size of the levy and the shares paid homesteads and non-
homesteads (and the paid and unpaid state shares for the 2011 baseline). Under all of the
options, even where taxpayers pay the same total amount of taxes, there will be tax increases
for non-homestead properties and some homestead properties.
The tax shifts of the three alternatives can also be summarized as follows:
2011 Constant Levy Constant Taxes Constant Revenue
Total Levy $2,040,000 $2,040,000 $1,940,000 $1,990,000
Total Revenues (% chg) $1,990,000 $2,040,000 (2.5%) $1,940,000 (-2.5%) $1,990,000 (0%)
City Tax Rate 30.448% 32.043% 30.473% 31.258%
Average Tax (% change)
$70,000 home $129.14 $134.58 (4.2%) $127.98 (-0.9%) $131.28 (1.7%)
$150,000 home $385.50 $404.58 (4.9%) $384.73 (-0.2%) $394.67 (2.4%)
$400,000 home $1,214.20 $1,277.77 (5.2%) $1,215.08 (0.1%) $1,246.45 (2.7%)
Non-Homestead Tax Change 5.2% 0.1% 2.7%
A Final Note. This example illustrates tax shifts due to the conversion from credits to the
exclusion in isolation from other discussions that might affect property taxes. Aid reductions
and service demands will also be a significant factor in the local budgeting calculus. These
other changes will also affect a property’s tax calculation.
1,026,000 1,079,000 1,026,000 1,052,000
913,000 961,000 914,000 938,000
50,000 50,000
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2011 Baseline Constant Levy Constant Taxes Constant
Revenue
Sample Levy Options vs. 2011 Baseline
State-unpaid
credit
State-paid
credit
Non-
Homestead
Taxes
Homestead
Taxes
$2,040,000 $2,040,000 $1,940,000 $1,990,000 Total Levy