HomeMy WebLinkAboutAgenda Packets - 1998/08/31 CITY OF MOUNDS VIEW
WORK SESSION
AGENDA
August 31, 1998
6:00 p.m.
Items Discussed
Per Consensus
1. Discussion of 1999 Budget.
August 28, 1998
To: Honorable Mayor and City Council
From: Chuck Whiting, City Administrator
Re: August 31, 1998 City Council Budget Work Session
Monday's meeting has been set to continue with work on the 1998 city budget. Council will recall
being briefed on the initial draft budget several weeks ago and identifying some issues of interest
to Council and staff for consideration in 1998. This should continue on Monday evening.
First, a couple of objectives for the meeting should be set. The City will need to set a preliminary
levy at its September 14 meeting. This will set the maximum levy the Council may consider as it
continues with budget work during the fall prior to setting a final budget levy in December. This
preliminary levy will sent to the county for their calculations in the Truth in Taxation notices to be
sent to taxpayers in October notifying them of the City, school and county maximum levies and
budget hearings. The state Department of Revenue sets a maximum levy the City may set. That
amount has been adjusted since staff last reported. In this packet you will note the August 10 revised
notice which for Mounds View set the maximum levy at $1,680,211 or an allowable increase of
5.02% over the 1998 levy. This is $24,605 more than the maximum levy presented to Council last
month, so there is some more room to work with. The recommendation to Council at this point will
be to set the preliminary levy at this maximum allowable amount September 14 with the
understanding that it can be reduced as the budget gets more fully worked into the fall.
The second objective for Monday night is to more fully explore the interests and priorities of the
Council and delve into the purposes of some of the expenses and revenues. Council is advised to
bring their July 17 Preliminary 1999 Budget packet for the discussion. I have asked department
heads to again attend the meeting for answering questions. Bruce has figured that 1% of the levy
equals about $16,000, so it may be possible to view items in the budget from that comparison
standpoint.
Three issues need further work to understand their impact on the budget. The City's direction in
street reconstruction and assessment policies should be reviewed and will be put on the September
8 work session. The recent decisions on Spring Lake Road do not have immediate impacts on the
1999 budget, but depending on the approach to street reconstruction and assessment policies long
term costs and cash flow will likely be effected. In payroll,the Hay evaluation and options can have
an impact on the budget and will also be on that agenda for discussion as well. Right now, 3%has
been added to existing payroll(pre-Hay) for a working number in the budget. This figure is general
and has only three general reasons for being set at 3% ,being the amount established for the second
year of the police contract, a percentage amount equal to 1998's increase and it seems in line with
what other cities have been doing(not knowing what is being proposed generally by other cities for
1999). It is clear from discussions at the Council that payroll and comparable worth matters illicit
various opinions, but the approach that should pertain for Monday night's discussion is simply
overall payroll expense. Right now, no comparable worth adjustments are delineated in the budget.
Three options will exist for considering payroll from an overall budgetary approach. First, a
percentage increase such as the 3% currently in draft that is covers wage increases and comp worth
adjustments. Second, a percentage increase pertaining to wage increases (as with the police
agreement) with consideration of comp worth adjustments on top. Or third, a combination resulting
in variable increases in wages by position with comp worth adjustments figured within an acceptable
budgeted amount.
The third major issue to be further worked on is the general fund associated expenses of the
community center. Next week I will begin reviews of proposals from outside bidders for
management services, and as approved by the Council several weeks ago, will be working towards
a presentation to the Council for management options at the October work session. For Monday
night,two areas are currently in the budget pertaining to the community center, one,the$50K under
miscellaneous, and the assumption for budgeting purposes of having some or most of Park and
Recreation payroll and associated expenses available for managing the community center. These
obviously have to be worked on more, but will need to be decided somewhat quickly, and hence the
October schedule.
Finally, while the rest of the budget does not need final decisions on Monday night, the items
outlined in the cover memo of July 17 should be prioritized as possible and compared to priorities
within the budgeted figures. What we are ultimately trying to do with a budget is reflect the
direction the community would like to see City Hall move towards by allocating resources in a
budget plan. Last year we reviewed several service aspects of the budget relative to the concerns on
the franchise fee and ended up reassessing the need for the fee in proportion to the interest in
retaining most of the city services. An easy question to answer should be does a particular expense
or revenue help get the city to where you, the residents or other interests want it to go. It is a little
harder to define where city hall is going or should go. We have spent some time on sorting those
questions out in our retreats and perhaps that approach with an eye towards compromise under a
collective vision may help in making the 1999 budget meet the needs you see in Mounds View. See
you Monday night.
. MINNESOTA Department of Revenue
Property Tax Division Mail Station 3340 St.Paul,MN 55146-334C
Phone(612)296-3155 Fax(612)297-216f
REVISED
Payable 1999 Overall Levy Limitation Notice August 10, 1998
MOUNDS VIEW CITY OF
CLERK ADMINISTRATOR
CITY HALL
2401 HIGHWAY 10
MOUNDS VIEW, MN 55112
The payable 1999 overall levy limitation for your city is: $ 1,680,211
The following is a listing of the factors used in determining your city's payable 1999
overall levy limitation. See the enclosed letter for an explanation of these factors and for
additional information concerning your city's overall levy limitation.
1. Adjusted Levy Limit Base for Payable 1998: $ 2,713,704
2. Adjustment for Payable 1997 Market Value of New C/I Construction
a. Payable 1996 Total Taxable Market Value: $ 371,353,650
b. Payable 1997 Market Value of New C/I Construction: $ 100,000
c. Adjustment(1 +Ratio of(b)to (a)): 1.000
3. New Construction Adjusted Payable 1998 Levy Limit Base
(1 x 2c): $ 2,713,704
3. Implicit Price Deflator Adjustment(Mar. 98/Mar. 97): 1.018
4. Household Growth Adjustment
a. 1996 Households: 4,904
b. 1997 Households: 4,927
c. Ratio of 1997 to 1996 Households(b/a, but not less than
1.000): 1.005
6. Adjustment for Payable 1998 Market Value of New C/I Construction
a. Payable 1997 Total Taxable Market Value: $ 387,967,350
b. Payable 1998 Market Value of New C/1 Construction: $ 683,276
c. Adjustment(1 +Ratio of(b) to (a)): 1.002
7. Adjusted Levy Limit Base for Payable 1999 (3 x 4 x 5c x 6c): $ 2,781,916
8. New Net Tax Capacity-Based Referendum Levies: $
9. 1999 Property Tax Aids
a. 1999 Certified Local Government Aid (LGA): $ 723,414
b. 1999 Certified Homestead and Agricultural Credit Aid
(HACA): $ 362,726
c. 1999 Certified Local Performance Aid(LPA): $ 15,565
d. 1999 Estimated Taconite Aids: $
e. 1999 Certified Existing Low Income Housing Aid: $
f. Total (a+b+c+d+e): $ 1,101,705
10. 1998 Tax Rate Excess Tax Increments: $
11. Payable 1999 Overall Levy Limitation(7+8 - 9f- 10): $
An equal opportunity employer 77'Y/TDD:(612)215-0069
1999 Budget Summary 08/27/98 12:45 PM BDGT99GF.WK4
City of Mounds View
1999 Budget Summary
1995 1996 1997 1998 1999 Change from 1998
Actual Actual Actual Budget Budget Dollar Percent
General Fund:
Revenues:
Property taxes-general $1,482,384 $1,490,832 $1,537,809 $1,599,940 $1,655,425 $55,485 3.47%
Property taxes-Fire Bonds 94,158 92,535 90,749 87,638 80,151 (7,487) -8.54%
Franchise Fee 235,936 245,437 248,129 200,000 200,000 0 0.00%
Other taxes 32,593 57,580 51,672 15,000 27,000 12,000 80.00%
Licenses and permits 128,253 128,182 118,976 121,730 121,030 (700) -0.58%
Intergovernmental 1,163,696 1,208,522 1,276,451 1,271,206 1,291,676 20,470 1.61%
Charges for services 8,632 5,523 22,257 4,200 11,200 7,000 166.67%
Fines&forfeitures 48,877 37,898 52,780 43,500 43,500 0 0.00%
Interest 91,146 121,210 148,397 79,000 79,000 0 0.00%
Miscellaneous 61,123 127,907 97,183 18,900 18,900 0 0.00%
Transfers: 109,715 0 0.00%
Special Projects Fund 49,554 99,062 90,000 90,000 90,000 0 0.00%
Water Fund 60,197 62,605 64,500 64,500 64,500 0 0.00%
Sewer Fund 36,120 37,567 38,690 38,690 38,690 0 0.00%
Vehicle&Equipment Fund 67,753 64,000 35,000 0 (35,000) -100.00%
Use of reserves 0 0 0.00%
Total revenues 3,670,137 3,714,860 3,901,593 3,669,304 3,721,072 51,768 1.41%
Expenditures:
Legislative Services:
City Council $74,022 $57,333 $71,580 $60,430 $70,683 $10,253 16.97%
Advisory Commissions 421 4,563 6,136 5,375 5,350 (25) -0.47%
Subtotal 74,443 61,896 77,716 65,805 76,033 10,228 15.54%
Administrative Services:
Office of the City Administrator 108,373 91,006 95,938 113,801 122,086 8,285 7.28%
Elections 3,233 8,038 11,003 17,440 7,514 (9,926) -56.92%
Central Services 292,703 327,895 301,565 342,702 367,624 24,922 7.27%
Finance 185,913 157,545 137,262 172,880 157,857 (15,023) -8.69%
Subtotal 590,222 584,484 545,768 646,823 655,081 8,258 1.28%
Community Development 223,314 222,975 280,503 327,308 328,592 1,284 0.39%
Police 1,151,969 1,249,121 1,248,816 1,340,490 1,377,724 37,234 2.78%
Fire 157,918 173,029 187,149 174,846 175,150 304 0.17%
Parks,Recreation&Forestry:
Recreation 100,989 115,240 119,872 99,198 101,474 2,276 2.29%
Parks 341,683 261,639 274,474 253,205 223,876 (29,329) -11.58%
Atheletic Field Maintenance 10,906 17,092 30,985 18,356 17,793 (563) -3.07%
Forestry 43,204 50,258 51,652 51,945 54,672 2,727 5.25%
Subtotal 496,782 444,229 476,983 422,704 397,815 (24,889) -5.89%
Fleet Services:
Building&Grounds Maintenance 51,920 55,097 57,168 47,031 54,305 7,274 15.47%
Squad&Staff Car Maintenance 47,272 52,624 51,549 45,044 46,388 1,344 2.98%
Vehicle&Equipment Maintenance 22,102 19,925 25,853 13,351 20,664 7,313 54.77%
Subtotal 121,294 127,646 134,570 105,426 121,357 15,931 15.11%
Streets:
Pavement Management 132,000 190,527 208,561 240,063 251,811 11,748 4.89%
Snow&Ice Control 54,521 85,198 76,254 81,005 70,740 (10,265) -12.67%
Sign Maintenance 25,469 24,827 28,255 37,176 30,660 (6,516) -17.53%
Subtotal 211,990 300,552 313,070 358,244 353,211 (5,033) -1.40%
Other
Social Service Coordination 13,342 13,500 14,319 15,165 15,435 270 1.78%
Debt service-Fire Bonds 88,758 92,565 90,749 87,638 80,151 (7,487) -8.54%
Transfers 169,220 57,704 25,000 25,000 25,000 0 0.00%
Miscellaneous 65,058 14,440 16,502 99,700 100,200 500 0.50%
Subtotal 336,378 178,209 146,570 227,503 220,786 (6,717) -2.95%
Total expenditures 3,364,310 3,342,141 3,411,145 3,669,149 3,705,749 36,600 1.00%
Revenue over(under)expenditures $305,827 $372,719 $490,448 $155 $15,324 $15,169 9786.15%
If City levies thettiaximum levy,the44vald increase by$24,605 to 1,684 11 for a 5.02%increase over 1998.
The resulting Revenue over expe dittlres would then be the following: _ $39,929
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