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Home My WebLink About08-27-2018 Council Special Work Session Packet SPECIAL WORK SESSION AGENDA CITY OF LINO LAKES Monday, August 27, 2018 CITY COUNCIL WORK SESSION Community Room (not televised) Following Regular City Council Meeting 1. 2019 Draft Budget& Tax Levy a) Review Updated 2019 Levy & Tax Rate b) Review Updated General Fund Forecast Gap Analysis c) Review 2018 Budget Surplus To Follow 2. Set Meeting Date for Next Budget Work Session 3. Adjourn GENERAL FUND FORECAST GAP ANALYSIS 2018-2019 8/2/2018 8/22/2018 8/27/2018 Adopted Proposed Proposed Proposed % 2018 2019 2019 2019 Change"' Change' Tax Levies General Fund Levy 8,165,859 8,752,181 8,790,569 8,699,715 533,856 6.54% Debt Levies 1,610,873 1,662,292 1,862,292 1,862,292 251,419 15.61% Total Tax Levy 9,776,732 10,414,473 10,652,861 10,562,007 785,275 "8.03% Year-over-Year Change Levy$ 637,741 876,129 785,275 8.03% Drill-Down on Year-Over-Year Levy Changes 8/2/2018 8/22/2018 8/27/2018 Adopted Proposed Proposed Proposed % 2018 2019 2019 2019 Change Change Revenues Property Taxes(Delinquent, Penalties/Interest) 49,000 39,000 39,000 39,000 (10,000) 20.41% Intergovt Revenue 645,367 577,061 577,111 577,111 (68`,256) 10.58% Business Licenses/Permits 130,515 137,600 137,600 137,600 7,085 5.43% Non-Business Licenses/Permits 556,532 764,860 764,860 764,860 208`,328 37.43% Charges for Services 29,571 25,477 25,477 25,477 (4,094) -13.84% Public Safety Service Charges 201,200 200,800 200,800 200,800 (400) -0.20% Municipal Fines 134,132 119,132 119,132 119,132 (15,000) =11.18% Miscellaneous 308,855 322,445 322,445 322,445 13`,590 4.40% Use of Reserves 725,000 - - 100,000 (625,000) 86.21% Total Revenues/Funding Sources 2,780,172 2,186,375 2,186,425 2,286,425 (493;747) -17.760% Expenditures Personal Services 7,166,774 7,480,712 7,519,150 7,426,258 259,484 3.62% Supplies 472,025 472,775 472,775 472,775 750 0.16% Other Services and Charnges 1,264,200 1,291,923 1,291,923 1,288,861 24,661 1.95% Contracted Services 672,087 748,794 748,794 743,794 71,707 10.67% Capital Outlay 53,045 74,352 74,352 94,452 41,407 78.06% Others 1,317,900 870,000 870,000 960,000 (357,900) 27.16%0 Total Expenditures 10,946,031 10,938,556 10,976,994 10,986,140 -- 40,109 0.37% Debt Service Bonds 1,046,341 1,055,008 1,255,008 1,255,008 208,667 19.94% Certificates of Indebtedness 564,532 607,284 607,284 607,284 42`,752 7.57% Total Debt Service 1,610,873 1,662,292 1,862,292 1,862,292 251,419 15.61% 0 Year-over-Year Change Levy$ 637,741 876,129 785,275 Total Levy Supported by Valuation Increase($10,392,545) 615,813 615,813 615,813 Gap to Maintain Flat Tax Capacity Rate 21,928 260,316 169,462 CITY OF LINO LAKES 2019 Proposed General Fund Net Tax Capacity Calculation Actual Actual Adopted Actual Proposed 2016 2017 2018 2018 2019 Taxable Market Value 1,699,288,883 1,808,417,118 1,962,454,648 1,959,826,108 2,086,113,493 Annual % Change 0.29% 6.42% 8.52% 8.37% 6.44% Total Net Tax Capacity Value 18,440,817 19,643,805 21,320,744 21,289,294 22,661,135 Less FD Contribution in Value 1,115,822 1,168,180 1,215,580 1,215,584 1,322,826 Less Captured Value for Tax Increment 261,525 293,970 421,342 421,495 421,495 Total Net Tax Capacity Value 17,063,470 18,181,655 19,683,822 19,652,215 20,916,814 Annual % Change 0.20% 6.55% 8.26% 8.09% 6.43% Net Tax Capacity Rate Calculation Actual Actual Adopted Actual Proposed 2016 2017 2018 2018 2019 Total Levy 9,058,428 9,491,855 9,776,732 9,776,732 10,562,007 Less FD Distribution 1,206,188 1,284,902 1,360,639 1,360,639 1,434,676 Total Net Levy for Tax Rate 7,852,240 8,206,953 8,416,093 8,416,093 9,127,331 Annual % Change 5.34% 4.52% 2.55% 2.55% 8.45% Projected City Tax Capacity Rate 46.019% 45.140% 42.756% 42.826% 43636% City of Lino Lakes 2019 Proposed Tax Levy Adopted Adopted Proposed Difference 2017 2018 2019 2018-2019 % Change General Fund Levy 7,360,431 8,165,859 8,699,715 533,856 6.54% Special Levy- PERA Contribution - - - - - *** Total Operating Levy 7,360,431 8,165,859 8,699,715 533,856 6.54% Debt Levy Certificate of Indebtedness 2014 178,164 - - - *** Certificate of Indebtedness 2015A 71,749 70,258 - (70,258) (100.00%) Certificate of Indebtedness 2015B 215,030 214,090 213,119 (971) (0.45%) Certificate of Indebtedness 2016 172,189 167,097 167,559 462 0.28% Certificate of Indebtedness 2017 - 113,087 111,395 (1,692) (1.50%) Certificate of Indebtedness 2018 - - 115,211 115,211 *** G.O. Tax Abatement Bond 2006C (2) - - - - *** G.O. CIP Refunding Bond 2006E (3) 464,100 - - G.O. Bond 2012A (Signal Project) (1) 177,692 176,390 180,012 3,623 2.05% G.O. Bond 2015A (Street Reconstruction) (1) 217,127 219,227 215,972 (3,255) (1.48%) G.O. Bond 2015A -Abatement Portion 56,096 55,151 54,206 (945) (1.71%) EDA Lease/Revenue Bond 2015 (Fire Station #2) 317,717 319,397 315,722 (3,675) (1.15%) G.O. Tax Abatement Refunding Bond 2016C (2) 261,560 276,176 289,097 12,920 4.68% G.O Bond 2018A (Street Reconstruction) - - 200,000 200,000 *** Total Debt Levy 2,131,424 1,610,873 1,862,292 251,420 15.61% Total Levy 9,491,855 9,776,732 10,562,007 785,276 8.03% (1) Levy result of Voter-Approved Referendum (2) Levy result of participation in YMCA project (3) Levy result of Civic Complex Construction. City of Lino Lakes Use of Reserves Summary 2019 Proposed Budget 2017 Excess Reserves $ 100,000 Reserve Level Maintained at 50% -$275,000 Remaining 2018 Revenues $ 200,000 Additional Bldg Permit Revenue 2018 Personal Services $ 164,500 Vacancies: $ 5,000 Administration -Temporaries $ 3,500 Economic Development-Temporaries $ 115,000 Public Safety- Police $ 41,000 Recreation -Supervisor 2018 Expenditures $ 110,650 $ 2,000 Mayor/Council - Professional Services $ 1,000 Mayor/Council -Travel/Tuition $ 13,000 Administration - Health Insurance $ 1,000 Administration -Travel/Tuition $ 1,000 Administration - Printing & Publishing $ 1,500 Charter Administration - Professional Services $ 7,000 Finance- Other Consultant $ 12,500 Legal- Municipal Attorney $ 5,000 Economic Development- Professional Services $ 1,000 Community Development- Dental Insurance $ 30,000 Streets - Patching Materials $ 2,000 Streets- Professional Services $ 600 Streets- Rental Equipment $ 750 Fleet- Maintenance Supplies $ 10,000 Fleet-Shop Parts $ 8,000 Fleet- Professional Services $ 1,500 Fleet-Capital Outlay $ 2,000 Government Bldgs-Small Tools $ 10,000 Government Bldgs- Professional Services $ 300 Environmental - Maintenance Supplies $ 500 Environmental - Professional Services Total Use of Reserves $ 575,150