HomeMy WebLinkAbout05/21/2012 Council Packet•
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CITY OF LINO LAKES
COUNCIL WORK SESSION AGENDA
Monday, May 21, 2012
Community Room
6:00 P.M.
1. 2011 -2012 Organizational Assessment
2. 2009 -2012 Staff Reductions (13.75 employees)
3. Council /Staff Priorities
4. 2013 Budget Impacts
o Taxable Market Value (7% reduction for Payable 2013)
o Recreation Complex ($300,000)
o Street Reconstruction ($50,000 Incr.)
o Capital Equipment Replacement ($75,000 Incr.)
o Wage Increases @ 2% ($106,500)
o Centennial Utilities' Franchise (23,000)
o ECFE Space ($60,000)
o Anoka Co. Salt Storage Shed ($75,000)
o Lake /Main & Birch/Ware Signalization Projects ($173,000)
o Proposed Levy Cap ( ?)
5. Summary of Fund Balance
6. 2013 Budget Priorities
7. Adjournment
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WORK SESSION STAFF REPORT
Date: May 21, 2012
To: City Council
From: Jeff Karlson, City Administrator
Re: Budget Priorities
Background
The primary objectives for Monday night's meeting are to discuss the budget impacts for
2013 and to determine the process Council and staff needs to undertake in order to
establish budget priorities. This will involve taking a serious look at the City's
operations and service levels and creating realistic expectations. The goal will be to get
everyone on the same page.
Staff will present a brief history of what has transpired over the past three years related to
the tax levy and budget cuts, which resulted in the elimination of 13 FTE positions. The
recent resignation of the Community Relations Coordinator reduces that number to 13.75
positions.
Next, we will talk about what staff sees as its priorities and what the Council has
communicated as priorities.
Item #4 of the agenda shows what staff has identified as the major budget considerations
as we begin preparation of the 2013 budget. Each particular would either impact the tax
levy or the City's reserve fund balance.
Al Rolek will provide a summary of the current fund balance. The Council elected to use
$100,000 of fund reserves to close a budget gap in 2012 and redirected an additional
$150,000 out of fund reserves for street reconstruction. The Council has recently
indicated that it would like to use reserves funds in the near future for the recreation
complex and street reconstruction.
Lastly, management staff believes it will be necessary for the Council to establish budget
priorities to help guide the budget process. Tough choices will need to be made
regarding how city services are delivered in this current economic environment. The
Council will need to focus on which City services are the most important to Lino Lakes
residents and who gets hurt the most if there are cuts.
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WS - Item 10
WORK SESSION STAFF REPORT
Work Session Item
Date: February 6, 2012
To: City Council
From: Al Rolek
Re: Revised Draft - 2012 -2016 5 -year Financial Plan
Background
A draft of the 2012 -2016 5 -year Financial Plan was reviewed by the City Council in
January. Staff has revised the assumptions related to changes in the tax base,
development and permit revenues, and health insurance renewal rates to reflect a more
optimistic approach as directed by the City Council at the last work session. Service
levels remain unchanged from the original draft. We have revised the impact on the
city's future levies and recalculated projected rates during the term of the plan.
The revised plan reflects an overall increase in expenditures of 16.10% for the five -year
period, down from the original 17.93 %. The tax base assumptions are revised ranging
from a 5.0% decrease in 2012 to a 3.0% increase in 2016, reflecting an anticipated market
stabilization and recovery. The forecast includes both market adjustments and new
construction. The net result is a slight tax base increase over the five -year period.
Over this period the city tax rate projected in the plan will go from 42.778% in 2012 to
50.547% in 2016, down from the original 57.445 %. Because of the new amendments
proposed by the Charter Commission to restrict the city's levy authority, a comparison
has been included on the levy page to show the impact of a proposed levy cap.
Most assumptions for expenditures remain the same as in the original draft. A few, such
as projections for employee health insurance renewals, were revised downward to reflect
a more optimistic approach to the forecast. Again, staffing levels were assumed to
remain constant over the plan term. The primary drivers for increases within the draft
plan are personnel costs, pavement management, capital equipment replacement
planning, and energy costs. Revenue projections related to development and construction
over the period were increased to reflect more optimism in the real estate markets.
While we acknowledge Council's awareness of the fact, we must reiterate that this is a
financial plan, not a budget, and it does not constitute authorization for future spending,
nor does it commit the Council or the City to any provisions of this plan. The city budget
will continue to be prepared annually, and current appropriations will continue to be
presented to and approved by the City Council on an annual basis. While it is the
Council's and staffs intention to be fiscally responsible, it is possible and, in fact, likely
that future budgetary needs will differ from what is outlined in this draft. Likewise, the
five -year plan will be updated each year and city needs reassessed at the time of renewal.
Staff will review the revised draft plan on Monday night.
Requested Council Direction
Council insight and direction in developing a final draft of the plan.
Attachments
Revised draft of the 2012 -2016 5 -year Financial Plan
Requested Council Direction
Council insight and direction in developing a final draft of the plan.
Attachments
Revised draft of the 2012 -2016 5 -year Financial Plan
DRAFT
FIVE -YEAR
FINANCIAL PLAN
For the Years
2012 — 2016
February 6, 2012
MINNESOTA
CITY OF LINO LAKES
FIVE -YEAR GENERAL FUND PLAN SUMMARY
201 2 - 2016
2nd Draft - 2 -6 -12
Adopted Adopted Proposed Estimate Estimate Estimate Estimate
2010 2011 2012 2013 2014 2015 2016
General Fund Plan
Total Estimated Expenditures
Total Estimated Revenue
Estimated Surplus /(Deficit)
Annual Change % (0.23 %) (2.88 %) 7.33% 3.16% 4.22% 3.60%
Total Change % from 2011 (2.88 %) 4.24% 7.53% 12.07% 16.10%
9,461,755
9,461,755
9,439,622
9,439,622
9,167, 602
9,167,602
9,839,697
9,839,697
10,150, 887
10,150, 887
10, 579,178
10, 579,178
10,959,619
10,959,619
Tax Levies
General Fund Levy
Debt Levies
Total Tax Levy
Annual Change %
Total Change % from 2011
Voter - Approved (Referendum) Levies
Tax Rates
Tax Capacity Rate
Annual Change in Tax Rate
Total Change in Tax Rate from 2011
Voter - Approved (Referendum) Rates
7,816,232 7,719,240 7,192,818 8,056,797 8,309,071 8,608,180 8,881,872
879,182 940,760 1,034,441 1,025,090 1,015,691 835,607 799,607
8,695,414 8,660,000 8,227,259 9,081,887 9,324,762 9,443,787 9,681,479
(0.41 %) (5.00 %) 10.39% 2.67% 1.28% 2.52%
(5.00 %) 4.87% 7.68% 9.05% 11.80%
172,935 165,231
161,818 163,656
37.903% 42.042% 42.778% 49.707% 51.238% 50.821% 50.547%
4.14% 0.74% 6.93% 1.53% (0.42 %) (0.27 %)
0.00% 0.74% 7.67% 9.20% 8.78% 8.51%
0.000% 0.000% 0.000% 0.010% 0.010% 0.010% 0.010%
1
General Fund Levy
CITY OF LINO LAKES
2012 - 2016 Estimated Tax Levy
Pay Pay Pay Pay Pay Pay Pay
2010 2011 2012 2013 2014 2015 2016
7,816,232 7,719,240 7,192,818 8,056,797 8,309,071 8,608,180 8,881,872
Debt Levy
Taxable G.O. Imp Bond 2003B 23,524 21,917 20,248•,; 23,781 -
G.O. Imp Refunding Bond 2005B 124,176 124,172 134,863 134,528 155,782 - -
G.O. Tax Abatement Bond 2006C (YMCA) 140,091 196,581 235,011 + 245511 264,458 278,140 285,411
G.O. CIP Bond 2006E ** 322,470 325,410 408,720 59;060 443,940 449,820 460,110
Certificate of Indebtedness 2007 60,349, - - -
Certificate of indebtedness 2008 81,732 80,808
Certificate of Indebtedness 2009 126,840 127,008
Certificate of Indebtedness 2010 64,864 64,61:7 :, 64,890
Certificate of Indebtedness 2011 43,365 ;� 42,851 43,481 -
Certificate of Indebtedness 2012 54,469 53,561 54,086 -
Certificate of Indebtedness 2013 - 54,469 53,561 54,086
Total Debt Levy 879,182 940,760 1,034,441 1,025,090 1,015,691 835,607 799,607
Total Levy 8,695,414 8,66 7, 259 9,081 887 ;!•' "9,324,762 9,443,787 9,681,479
Net Levy 8,695,414 8,660,000 8279,081,887 9,324,762 9,443,787 9,681,479
Referendum Levies
G.O. Improvement Bond 2012A
Total
** Is decreased by School District tease - through June,
General Levy x Max A. nual No Growth'lncrease (3.9 %)
Amount. Needed General Levy Exceeds Levy'Gap
172,935 165,231 161,818 163,656
172,935
165,231
161,818 163,656
7,192,818 7,473,338 7,764,798 8,067,625 8,382,263
583,459 544,273
540,555 499,609
2
CITY OF LINO LAKES
2012 -2016 Financial Plan
Net Tax Capacity Calculation
Actual Actual Estimate Estimate Estimate Estimate Estimate
2010 2011 2012 2013 2014 2015 2016
Taxable Market Value 2,001,889,600 1,811,830,300 1,721,238,785 1,652,389,234 1,652,389,234 1,685,437,018 1,736,000,129
Annual % Change (6.22 %) (9.49 %) (5.00 %) (4.00 %) 0.00% 2.00% 3.00%
Total Net Tax Capacity Value 22,070,825 19,783,539 18,044,643 17,322,857 17,322,857 17,669,314 18,199,394
Less FD Contribution in Value 1,697,800 1,576,360 1,246,883 1,197,008 1,197,008 1,220,948 1,257,576
Less Captured Value for Tax Increment 327,659 251,890 280,221 269,012 269,012 274,392 282,624
Total Net Tax Capacity Value 20,045,366 17,955,289 16,517,539 " 15,856,837 15,856,837 16,173,974 16,659,193
Annual% Change
Total % Change from 2011
Total Levy
Less FD Distribution
Total Net Levy for Tax Rate
Annual % Change
Total % Change from 2011
(10.43 %) (8 :D1 %) (400%
(8,01%) (11.69%
Net Tax Capacity Rate Calculation
0.00% 2.00% 3.00%
11.69 %). (9.92 %) (7.22 %)
2010 2011 2012 2011.
2014
2015 2016
8,695,414 8,660,000 8,227,259 9,081,887 ' , 9,324,762 9443,787 9,681,479
1,097,539 1,111,501 1,161:407„ 1,200,000 ..; "', "1,200,000 1,224,000 1,260,720
7,597,875 7,548,49!
Projected City Tax Capacity Rate ! 737.903%
Adjustment to Maintain 2012 Tax Rate
Referendum Levy
Market Value Tax Rate
7,065;852 7,881,887
(0
65 %)
8,124,762
8,219,787 8,420,759
(6.39 1 1;1.55% 3.08% 1.17% 2.44%
4.42% 7.63% 8.89% 11.56%
49.707% 5:1 38 %° . '50y821% : , 50.:07 %a'
3
0.000%
(1,098,669) (1,341,544)
(1,300,905) (1,294,310)
172,935 165,231 161,818 163,656
0.010% 0.010%
0.010% 0.009%
CITY OF LINO LAKES
FIVE -YEAR GENERAL FUND REVENUE PLAN SUMMARY
2012 - 2016
Adopted Adopted Adopted Estimate Estimate Estimate Estimate
2010 2011 2012 2013 2014 2015 2016
Total Property Taxes
Total Intergovernmental Revenue
Business Licenses and Permits
Non - Business Licenses and Permits
Charges for Services
Public Safety
Municipal Fines
Investments
Administrative Charges
Miscellaneous
Total Revenues
ANNUAL INCREASE %
TOTAL INCREASE % FROM 2011
7,680,232
570,323
43,600
352,650
10,950
268,000
130,000
93,000
60,000
253,000
7,605,240 7,342,818 8,206,797 8,459,071
567,282 474,051 445,000 445,
79,200 82,400 83,700 85,016
333,000 333,000. ,,400
10,900 7,900 7,900 ; 7,900
307,000 236,500 ? 236,500 236,500 000
135,000 135,000 ' 135332, 00 800 _ 135380,000
60,000 40,000 '35,000 - ` .35,000
56,000 - "--
58,000 60,000 65000
286,000 457,933,' - `'297,000
024000 •,
8,758,180 9,031,872
445,000 445,000
86,348 87,697
503,250 598,650
7,900 7,900
236,500 236,500
135,000 135,000
40,000 50,000
65,000 65,000
302,000 302,000
9,461,755 9,439,622 9,167602 9;839,697 10,150,887 10,579,178 10,959,619
(0.23 %) (2.88 %) 7.33%
(2.88 %) 4.24%
3.16% 4.22% 3.60%
7.53% 12.07% 16.10%
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CITY OF LINO LAKES
2012 - 2016 FIVE YEAR FINANCIAL PLAN
GENERAL FUND EXPENDITURES
Adopted Adopted Adopted Estimated Estimated Estimated Estimated
DEPT# DESCRIPTION 2010 2011 2012 2013 2014 2015 2016
ADMINISTRATION
4D1 MAYOR AND COUNCIL 86,311 88,809 85,818 86,908 88,624 90,385 92,194
402 ADMINISTRATION 466,458 451,724 396,391 389,923 406,222 417,087 428,408
403 ELECTIONS 23,605 14,060 23,145 43,162 22,584 15,180 23,328
404 CABLE TV 2,580 2,713 2,715 2,780 2,821 2,862 2,906
405 CHARTER COMMISSION 1,500 1,500 1,500 1,500 1,500 1,500 1,500
406 SENIORS 34,954 0 ;? 0 0 0 0 0
407 FINANCE 487,632 507,389 511,672 524,831 537,676 550,979 564,766
414 LEGAL CONSULTANTS 160,000 175,000 140.000- ".: "' 142';800 145,656 148,569 151,541
TOTAL ADMINISTRATION 1,263,040 1,241,194 1,,161,540, 1191904 1,205,083 1,226,562 1,264,641
COMMUNITY DEVELOPMENT
415 ECONOMIC DEVELOPMENT 99,401 140;278 135,059, , 140,755 143,755 146,847
416 PLANNING AND ZONING 231,289 212,089 135,739 138,5 1 140,527 - 142,615 194,777
417 ENGINEERING 216,500 176,600 _k 114,900 131,448 108,538 135,667 112,841
99'653 204 771 = 2407,29513 6 213,795 218,514
461 ENVIRONMENTAL 97,135 63,033 ,
418 COMMUNITY DEVELOPMENT 225,530 232,807
61;325 46,743 3 48,350 49,195
462 SOLID WASTE ABATEMENT 36,475 35,569 35,477 o ;m 35,848 36,524 37,222 37,944
463 FORESTRY 65,065 45,957 45,442 46,038 46,860 47,710 48,589
TOTAL COMMUNITY DEVELOPMENT 971,395 906,333 728,195 741,202 729,951 769,113 808,707
PUBLIC SAFETY
420 POLICE PROTECTION 3,224,357 3,135,130 3 133,593 3,314,488 3,394,632 3,477,575 3,563,735
421 FIRE PROTECTION 516,045 525,844 542,778 553,634 564,706 576,000 587,520
422 BUILDING INSPECTIONS 207,560 213,259" 212,124, 220,375 225,768 231,371 237,199
TOTAL PUBLIC SAFETY 3,947,962 - 3,874,233 ;° 3,888,495. " s ',4,088,497 4,185,106 4,284,947 4,388,455
PUBLIC SERVICES
430 STREETS
431 FLEET MANAGEMENT
432 GOVERNMENT BUILDINGS
450 PARKS DEPARTMENT
451 RECREATION
TOTAL PUBLIC SERVICES
OTHERS
499 CONTINGENCY /OTHERS/TRANSFERS'
TOTAL OTHERS
TOTAL GENERAL FUND EXPENDITURES
93;249 940,923 ; 929,106 1,028,362 1,024,464 1,071,415 1,069,262
23,378 375;531 379,233 397,333 420,125 444,826 471,615
499,146 464,291 402,255 419,172 438,964 460,221 483,071
:541,913 579,944 573,350 587,262 605,037 622,525 640,656
283,321 295,607 288,180 295,966 302,159 308,570 315,212
647,007 2,656,296 2,572,124 2,728,094 2,790,748 2,907,556 2,979,816
631,851 761,569
631,851
ANNUAL CHANGE %
TOTAL CHANGE %,FROM 2011
9,461,255
761,569
9,439,626
817,250 1,090,000 1,240,000 1,391,000 1,518,000
817,250 1,090,000 1,240,000 1,391,000 1,518,000
9,167,604 9,839,697 10,150,887 10,579,178 10,959,619
(0.23 %) (2.88 %) 7.33% 3.16% 4.22% 3.60%
(2.88 %) 4.24% 7.53% 12.07% 16.10%
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