HomeMy WebLinkAbout#30 Prelim 2017 General Fund and Library Fund Annual Budget & Levy
MAYOR & COUNCIL COMMUNICATION
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DATE: September 20, 2016
REGULAR
ITEM #30
RESOLUTION #2016-77
AGENDA ITEM: Approve 2017 Preliminary General Fund & Library Fund Annual Budget
and Tax Levy
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Cathy Bendel, Finance Director
REVIEWED BY: Finance Committee
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item ..................................................................Finance Director
- Report/Presentation…………….…Finance Director/Finance Committee Chair
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates
POLICY RECOMMENDER: Finance Director and Finance Committee
FISCAL IMPACT: NA
SUMMARY AND ACTION REQUESTED: Pursuant to State law regarding the adoption of
the Preliminary 2017 General Fund and Library Fund Levy, the City Council is asked to approve
the Preliminary 2017 Annual Budget and Levy for these two funds. It is recommended that the
City Council pass Resolution 2016-77, thereby approving the Preliminary 2017 General Fund
and Library Fund Annual Budget’s and Levies by undertaking the following motion:
“Move to approve Resolution No. 2016-77 adopting the preliminary 2017 General Fund and
Library Fund Annual Budget’s and Levies”
City Council Meeting [Regular Agenda Item #27]
September 20, 2016
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BACKGROUND INFORMATION: The City of Lake Elmo has both the legal and fiduciary
authority and responsibility under Minnesota State Statute to adopt a Preliminary 2017 General
Levy. Typically the City Council adopts a Preliminary Annual Budget at the same time.
Following such adoption, the City Council may lower, but not raise the General and Library
Levies and a final Levy and Budget must be adopted by December 28th, 2016.
STAFF REPORT: There were two joint meetings with the Finance Committee and the City
Council on July 19, 2016 and August 10, 2016 to review the 2017 budget for the City of Lake
Elmo General Fund. The Finance Committee met on September 13, 2016 and made additional
recommendations. At the September 14, 2016 Library Board meeting, the Library Board will be
reviewing an in-depth budget and levy presentation for 2017 related to the Library Fund. As a
result of those meetings, the Finance Committee is recommending that the City Council approve
the attached Preliminary Annual Budget for the General Fund and adopt the 2017 Levies as
summarized in Resolution 2016-77.
RECOMMENDATION: It is recommended that the City Council pass Resolution 2016-77,
thereby approving the Preliminary 2017 General Fund and Library Fund Annual Budget’s and
Levies by undertaking the following motion:
“Move to approve Resolution No. 2016-77 adopting the preliminary 2017 General Fund and
Library Fund Annual Budget’s and Levies”
ATTACHMENT:
1. Resolution No. 2016-77
2. Preliminary 2017 General Fund Budget
3. Preliminary 2017 Library Fund Budget
4. Tax Impact Work Sheet
CITY OF LAKE ELMO
WASHINGTON COUNTY, MINNESOTA
RESOLUTION NO. 2016-77
RESOLUTION APPROVING PROPOSED 2016 TAX LEVY, COLLECTIBLE IN 2017
AND
PROPOSED 2017 BUDGET
WHEREAS, the City Council has conducted budget workshops and meetings to review the 2016
Tax Levy, collectible in 2017, and the proposed 2017 General Fund and 2017 Library Fund Budgets; and
WHEREAS, the City is required to adopt a proposed budget for payable 2017 and certify its
proposed property tax levy payable in 2017.
BE IT RESOLVED that the City adopts the proposed 2017 General Fund and Library Fund
Budgets,
BE IT FURTHER RESOLVED by the Council of the City of Lake Elmo, County of
Washington, Minnesota that the following proposed sums of money be levied for the current year, collectible
in 2017, upon taxable property in the City of Lake Elmo, for the following purposes:
Total General Fund Levy $1,998,847
Total G.O. Debt Levy $ 824,622
Library Levy $ 256,957
Total Levy $3,080,426
BE IT FUTHER RESOLVED that the City Clerk is hereby instructed to transmit a certified copy
of this resolution to the County Auditor of Washington County, Minnesota.
ADOPTED, by the Lake Elmo City Council on the 20th day of September, 2016.
______________________________
Mike Pearson
Mayor
ATTEST:
__________________________________
Julie Johnson
City Clerk
2016 Full Year Budget 2016 Year To Date as of 7/31 2016 Projections 2017 Draft Budget Notes
REVENUE
Current Ad Valorem Taxes $256,957.00 $128,478.00 $256,957.00 $256,957.00
Rental Income $0.00 $0.00 $0.00 $0.00
Interest Earning $0.00 $0.00 $0.00 $0.00
Miscellaneous Revenue $0.00 $0.00 $0.00 $0.00
Donation $0.00 $10,970.00 $15,000.00 $4,000.00
Total Revenue $256,957.00 $139,448.00 $271,957.00 $260,957.00
EXPENSE
FT Salaries $46,311.00 $27,517.65 $49,500.00 $49,995.00 1% pay increase
PT Salaries $26,260.00 $14,071.88 $26,000.00 $27,047.80 3% pay increase
PERA Contributions $4,277.00 $3,119.23 $4,700.00 $4,555.00
FICA Contributions $3,479.00 $2,482.73 $3,800.00 $3,895.00
Medicare Contributions $814.00 $580.68 $850.00 $910.00
Health/Dental Insurance $14,144.00 $8,160.00 $14,361.60 $14,500.00
Unemployment Benefits $0.00 $0.00 $0.00 $0.00
Workers Compensation $0.00 $0.00 $0.00 $350.00
Library Service Supplies $1,100.00 $0.00 $600.00 $1,500.00
Office Supplies $3,600.00 $1,592.02 $2,800.00 $3,500.00
Library Collection Maintenance $42,811.00 $42,157.56 $55,000.00 $55,000.00 includes new computers and added database
Legal Services $1,500.00 $3,358.00 $3,800.00 $4,000.00
Contract Services $6,000.00 $0.00 $1,200.00 $6,000.00
Telephone $1,560.00 $1,119.13 $1,800.00 $1,800.00
Internet $1,800.00 $676.28 $1,800.00 $2,000.00
Information Technology (Equinox)$3,100.00 $0.00 $3,100.00 $3,200.00
Information Technology Network Maintenance $0.00 $0.00 $0.00 $0.00
Software $0.00 $0.00 $0.00 $0.00
Insurance $2,000.00 $1,637.00 $2,000.00 $2,200.00
Utilities $7,500.00 $3,344.08 $8,000.00 $8,000.00
Refuse $600.00 $569.34 $1,000.00 $600.00
Repair/Maint Bldg $12,000.00 $17,926.75 $22,000.00 $30,000.00 includes $15000 in building improvements
Repair/Maint NOT Bldg $0.00 $94.42 $100.00 $0.00
Repair/Maint Eqip (out-LH Imp $0.00 $0.00 $0.00 $0.00
Library Card Reimbursements $12,000.00 $18,004.67 $28,000.00 $32,000.00
WA Cty service fee $9,300.00 $0.00 $0.00 $0.00
Library service improvements $46,000.00 $0.00 $0.00 $0.00
Miscellaneous $1,800.00 $369.94 $800.00 $1,000.00
Building Purchase Repayment $0.00 $0.00 $0.00 $0.00
Building Property Tax $1,000.00 $0.00 $1,000.00 $0.00
Other Equipment $0.00 $0.00 $0.00 $0.00
Subscriptions $0.00 $0.00 $0.00 $0.00
Conferences & Training $3,500.00 $0.00 $700.00 $2,500.00
Programs $4,500.00 $0.00 $4,000.00 $6,000.00
Internal Charges $0.00 $10.00 $100.00 $500.00
Associate Library Charges Equipment $0.00 $0.00 ??
Associate Library Charges Service Charges $0.00 $0.00 ??
Total Library $256,956.00 $146,791.36 $237,011.60 $261,052.80 Restroom and parking lot costs not included in 2016 projections
Proposed Pay 2017 Property Tax Impact Worksheet
Taxing District:
STEP 1 - Calculate the Taxing District's Tax Rate:
Actual Proposed %
Item Pay 2016 Pay 2017 Change
(A)(B)(C)
1.Levy before reduction for state aids $3,112,204 $3,080,426 -1.0%
2.State Aids - $0 $0 0.0%
3.Certifed Property Tax Levy = $3,112,204 $3,080,426 -1.021%
4.Fiscal Disparity Portion of Levy - $157,509 $161,272 2.4%
5.Local Portion of Levy = $2,954,695 $2,919,154 -1.2%
6.Local Taxable Value 2017 is an ESTIMATE ÷ 12,779,339 13,995,965 9.5%
7.Local Tax Rate = 23.121%20.857%-9.8%
8.Market Value Referenda Levy $0 $0 0.0%
9.Fiscal Disparity Portion of Levy (SD only)- $0 $0 0.0%
10.Local Portion of Levy = $0 $0 0.0%
11.Referenda Market Value 2017 is an ESTIMATE ÷ 1,175,646,100 1,278,432,400 8.7%
12.Market Value Referenda Rate = 0.00000%0.00000%0.0%
STEP 2 - Calculate the Impact of the Taxing District's Rate on Residential Homestead Taxes:
13.Assumes a 2.1%change in market value from 2016 to 2017, which is the city median change.
(D)(E)(F)(G)(H)
Market Homestead Taxing
Value Market Taxable District
Before Value Market Tax Portion of
Exclusion Exclusion Value Capacity Tax
Actual Pay 2016
Pay 2016 76,000 @40%500,000@1.0%(A7 x G) +
MV - rem @ 9%(D) - (E)rem @ 1.25%(A12 X D)
14.368,100 4,100 364,000 3,640 $841.60
15.97,900 28,400 69,500 695 $160.69
16.146,900 24,000 122,900 1,229 $284.16
17.244,900 15,200 229,700 2,297 $531.09
18.391,800 2,000 389,800 3,898 $901.26
Proposed Pay 2017
Pay 2017 MV 76,000 @40%500,000@1.0%(B7 x G) +
X 1.021 - rem @ 9%(D) - (E)rem @ 1.25%(B12 x D)
19.375,800 3,400 372,400 3,724 $776.71 ($64.89)
20.100,000 28,200 71,800 718 $149.75
21.150,000 23,700 126,300 1,263 $263.42
22.250,000 14,700 235,300 2,353 $490.77
23.400,000 1,200 398,800 3,988 $831.78
Percentage Change from 2016 to 2017
24.2.1%-17.1%2.3%2.3%-7.7%
25.2.1%-0.7%3.3%3.3%-6.8%
26.2.1%-1.3%2.8%2.8%-7.3%
27.2.1%-3.3%2.4%2.4%-7.6%
28.2.1%-40.0%2.3%2.3%-7.7%
0800 Lake Elmo
Tax Increase
(Decrease)
Instructions for Calculating a Residential Homestead Property Tax:
D.Market Value of Residential Homestead
Assumes that the Pay 2017 market value changed from Pay 2016 by 2.1%.
Countywide, the median change in market value from Pay 2016 to Pay 2017 is 1.1%.
E.Calculate the Homestead Market Value Exclusion
40% of the first 76,000 of market value (D), reduced by 9% on the market value over 76,000
The exclusion decreases as the market value over 76,000 increases, until a 413,300 home receives 0 exclusion.
F.Calculate Taxable Market Value
Market Value before Exclusion (D) - Homestead Market Value Exclusion (E).
G.Calculate the Net Tax Capacity of a Residential Homestead
Pay 2016:1st 500,000 of (F) Taxable Market Value @ 1.00%, remainder @ 1.25%
Pay 2017:1st 500,000 of (F) Taxable Market Value @ 1.00%, remainder @ 1.25%
H.Calculate the Taxing District's portion of the Tax
Pay 2016:multiply the Pay 2016 net tax capacity (G) by the Pay 2016 tax capacity local tax rate (A7), plus
multiply the Pay 2016 market value before exclusion (D) by the Pay 2016 market value tax rate (A12)
Pay 2017:multiply the Pay 2017 net tax capacity (G) by the Pay 2017 tax capacity local tax rate (B7) , plus
multiply the Pay 2017 market value before exclusion (D) by the Pay 2017 market value tax rate (B12)
19-23.Line 19 will default to the median residential homestead value for the taxing authority for taxes payable in 2016.
24-28.Calculate the % increase/decrease from 2016 to 2017
(2017 -2016) / 2016
There is no longer a homestead credit. The market value homestead credit was eliminated starting with taxes payable in
2012 and was replaced with a market value exclusion for homestead property.