HomeMy WebLinkAboutCCWkspAgenda 9-5-2012Falcon Heights City Council Workshop City Hall 2077 W Larpenteur Ave. 6 :3 0 p.m. AGENDA Wednesday , September 5 , 2012 1) Continued Discussion on the DRAFT 2013 General Fund Budget. If you have a disability and need accommodation in order to attend th is 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.
WORKSHOP STAFF REPORT Families, Fields and Fair __________________________ The City That Soars! Item Draft 201 3 General Fund Budget Description A preliminary levy must be set by September 15 th , so the City C ouncil will formally act on the preliminary 2013 General F und B udget at the September 12 th City C ouncil meeting by certifying the 2013 preliminary levy . At the August 1 st workshop, the City C ouncil revie wed for the first time a draft of the 201 3 G eneral Fund B udget. Staff presented a preliminary budget with the understanding th at some important revenue information was unavailable at that time. The amount of the Fiscal Disparities to be received was unav ailable. The amount of Fiscal Disparity distribution dollars received either increases or decreases the amount to be levied to the property owners. If Fiscal D isparity distribution dollars decrease from the previous year then there would be an increase i n the levy to property owners to make up the loss. If an increase occurs, then the reverse happens. Also, th e Tax Capacity numbers for the C ity were unavailable. This tax capacity information is needed to evaluate the effect of various levels of tax rat es. D etails for the preliminary 2013 G eneral Fund B udget: 1) There are no levy limits for the 2013 B udget. Levy limits had been removed by the L egislature in 2012. Staff will be recommending that a special levy for the equipment certificates be approved o nce again to pay the annual principal and interest payments that will be due in the amount of $75,705. 2) The amount of LGA state aid was frozen by the L egislature for budget year 2013 at the 2012 level. LGA remains at $310,126. 3) Fiscal D isparity distribut ion dollars for 2013 increased by $4,490 over the 2012 level. This results in a slightly lower ad valorem property tax portion of the levy. Remember that for 2012, the fiscal disparity dollars decreased $51,158 as compared to 2011. 4) The overall general fund expenditur es are proposed to increase by $38,458 or 2 %. -The Police contract increased 1% -Health insurance premiums are estimated to increase 13% due to being a small group with additional health expenses in our group during 2012 . None of the insu rance companies have provided new premium data at this time. Meeting Date September 5, 2012 Agenda Item Workshop 1 Attachment Draft 2013 General Fund Budget Fiscal Disparities Information Submitted By Bart Fischer, City Administrator
5) There is a n estimated 2% COLA increase for empl o yees consistent with increases in the CPI index . 6) The proposed budgeted tran sfer from sanitary sewer is lower than in years past . 7) In total, when t aking into account projected expenditures and revenues the projected levy amount for our general operating budget would be $ 1,129,007 Impacts to the Overall Property Tax Levy: 2012 Budget: Property Tax Levy $945,644 Levy for Equipment Certificates $72,300 Total Levy: $1,017,944 2013 Preliminary Budget: Draft Property Tax Levy $1,053,302 Levy for Equipment Certificates $75,705 Total Preliminary Levy $1,129,007 (1 0.9% increase) The legislature in 2011 cr eated additional stress on the C ity for 2012 and future years with the removal of the Market Value Credit state aid. The city no longer will receive Market Value Credit to offset the property tax levy . The legislature in 2012 froze the Local Government Aid to cities at the 2012 level cre ating additional stress on the City since the C ity would have benefitted over $30,000 f or 2013. Impact on Median Value Home in Falcon Heights: Payable 2012 Payable 2013 Change MedianValue Home (Estimated Taxable Value) 229,600 201,360 -28,240 Tax Capacity (1% of Value) 2,296 2,014 -282 City Tax Rate 23.499% 27.77 7 % +4.278% City Taxes 540 5 59.50 +19.50 *For reference, t he increase on the City taxes for a median value home from 2011 to 2012 was approximately $25. For every $10,000 change in the levy, the C ity taxes on a median value home would change approximately $5.50. The C ity’s total local tax capacity decreased approximately $167,700 fro m payable 2012 for payable 2013 , helping contribute t o a rise in the City’s tax rate.
Budget Impact Dependent upon eventual adoption of the 2013 General Fund Budget later in 2012. Att achment(s) Draft 2013 General Fund Budget Fiscal Disparities Information Action(s) Requested No acti on required, but guidance on co ntinual refinement of the 2013 General Fund Budget so the preliminary general fund levy can be set at the 9/12/12 C ouncil meeting.