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HomeMy WebLinkAboutAgenda Packets - 2016/12/05 CITY OF MOUNDS VIEW SPECIAL CITY COUNCIL MEETING AGENDA MOUNDS VIEW CITY HALL Monday, December 5, 2016 6:00 PM 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller 4. APPROVAL OF AGENDA 5. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 6. SPECIAL ORDER OF BUSINESS 7. COUNCIL BUSINESS A. Truth in Taxation Meeting 8. Next Council Work Session: After this meeting Next Council Meeting: Monday, December 12, 2016, at 7pm 9. ADJOURNMENT Item No: 7.A. Meeting Date: December 5, 2016 Type of Business: Truth in Taxation Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Truth in Taxation Meeting Attached is the Truth in Taxation presentation which covers those funds that receive tax revenues from the City-wide tax levy. (General Fund, Street Improvement Fund, and EDA Fund) The City Council adopted a 3.4% City levy increase, a 2.28% HRA levy, and a 1.37% EDA levy increase for 2017 back in September. The General Fund levy can be reduced to an increase of 1.71% from 3.4%. The EDA/HRA levies can be reduced to an increase of 2.28%. The total overall increase is 3.99% for the combined levies. There have been some minor changes from the preliminary budget as more accurate information has become available. The preliminary General Fund budget reflected expenditures of $6,590,596. The current proposed budget reflects expenditures of $6,584,264. The decrease ($6,332) was due primarily to changes to the Fire department budget. The General fund will be in balance after considering use of $250,000 from assigned fund balance. (Levy Reduction fund balance) Looking forward to 2017, state budget projections show a surplus for the current budget period. That means that there will probably not be any cuts to the late December LGA payment or the 2017 certified amount. The 2017 LGA amount has been certified by the Department of Revenue at $671,517. The 2017 General Fund budget was constructed using 90% of certified LGA as a precaution from changes at the state level. The revenue forecast will come out in early December and again in early February. The next legislative session will be a two year budget session with a number of unfinished items from the 2016 session, indications are that infrastructure, tax cuts, and healthcare will be the primary focus and how to finance it. Staff welcomes any comments or questions. Respectfully Submitted, Mark Beer City of Mounds View Truth in Taxation Meeting December 5, 2016 6:00 pm Mission Statement Our Mission is to provide high quality public services that effectively address changing citizen and community needs in a fiscally responsible and customer-friendly manner. Truth in Taxation The Truth in Taxation meeting covers those City and Economic Development Authority (EDA) funds that get a portion of the City-wide tax levy. Those funds are as follows: General ($4,168,947) Street Improvement Capital Projects ($300,000) EDA/HRA ($100,000) The General Fund is the City’s operating fund and accounts for most city-wide activities, the Street Improvement Fund accounts for street and trail-way improvements. The EDA fund is the economic development fund of the City. Expenditures by Purpose Personnel 61% Supplies 5% Contractual services 24% Contingency 0% Fire debt service 2% Capital outlays 1%Transfers 7% General Fund Expenditures by Type 2017 General Government 14% Community Development 6% Public Safety 49% Streets & Highways 13%Park & Recreation 8% Debt service 2% Other 1% Transfers 7% General Fund Expenditures by Function 2017 Proposed Budget Expenditure Pie Chart - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 General Government Community Development Public Safety Streets & Highways Park & Recreation Debt service Other Transfers General Fund Expenditures 2015 Actual 2016 Budget 2017 Proposed Expenditure Bar Graph General Fund Expenditure Changes 2017 General Fund operating expenditures are proposed to increase by $82,569 or 1.42%,this includes personnel services, materials and supplies, contractual services, and contingency. 2017 General Fund capital expenditures, debt service and transfers are proposed to decreaseby ($40,133) or (5.64%). Capital Outlays and Debt Service are the primary drivers of the decrease. Total 2017 General Fund expenditures are proposed to increase by $42,436 or 0.65%over 2016. Revenue Pie Chart General property taxes 66% Other taxes 6% Licenses & permits 3% Intergovernmenta l 15% Other revenues 7% Transfers from other funds 3% General Fund Revenues 2017 Proposed Budget $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 General Fund Revenues 2015 Actual 2016 Budget 2017 Proposed Revenue Bar Graph Budget Summary 2017 General Fund significant budget items •The City proposes a 0.65% increase in General Fund spending which includes increases in operational spending of $82,569 and decrease in non-operational spending (debt service, capital outlay, transfers) of ($40,133) for an overall increase of $42,436. •Estimated LGA in 2017 is $671,517, the City included 90% of this in the budget as a precaution from future uncertainty at the state level. •Other non-property tax revenues are projected to increase $56,609, this excludes transfers. •Fund Balance will be reduced by $250,000 all from Levy Reduction. Proposed Property Tax Levy 2016 2017 Property tax base levy 3,706,549$ 3,833,967$ Special levy - Police Referendum 194,000 205,000 Special levy - PERA rate increase 39,145 39,145 Debt service levy - Fire bonds 154,119 90,835 Capital Project Street Imp.300,000 300,000 EDA/HRA levy - 100,000 Total Levy 4,393,813$ 4,568,947$ 3.99% Change 175,134$ What Your Tax Dollars Buy Median Market Valued Home in Mounds View 184,350$ City Tax on Median Valued Home 673.19$ Police 311.45 46.27% Public Works 88.68 13.17% Fire 71.59 10.64% Parks and Recreation 64.17 9.53% Administration 50.27 7.47% Street Improvement levy 37.86 5.62% Community Development 27.07 4.02% Community Center 22.09 3.28% 673.19$ 100.00% Sample Home Tax Impact 2016 Home 2016 2017 Home 2017 Taxable City Taxable City Value Tax Value Tax Difference 33,542$ 141.89$ 35,475$ 142.22$ 0.33$ 84,584 357.66 91,550 367.02 9.36 145,625 616.04 155,923 625.09 9.05 206,567 873.84 220,298 883.17 9.33 267,609 1,132.07 284,673 1,141.25 9.18 328,551 1,389.87 349,147 1,399.73 9.86 389,492 1,647.67 413,521 1,657.80 10.13 447,534 1,893.20 472,596 1,894.63 1.43 503,476 2,129.85 531,671 2,131.46 1.61 City of Mounds View 26.86 cents Ramsey County 38.42 cents School District 31.71 cents Other taxing districts 3.01 cents Tax Bill Breakdown Tax Levy Per Capita New Brighton$356.34 Mounds View$356.98 Arden Hills$369.79 Blaine $381.51 Shoreview$430.96 Fridley$494.70Spring Lake Park $481.51 Roseville $545.52 $0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 1 Spending per Capita In the most recent data available from the Office of State Auditor, For cities over 2500 in population the City spending per capita ranked. 161 out of 229 The City net tax levy per capita ranked 190 out of 229 The state-wide average per capita levy is $396 for cities between 10,000 and 20,000. The City compares favorably at $352 per capita. Prior Year’s Tax Levy Tax Levy General Fund in 2016 1% or $43,503 General Fund in 2015 2% or $85,300 General Fund in 2014 2% or $83,629 No levy increase 2013 No levy increase 2012 General Fund in 2011 2% or $80,993 Street levy in 2010 7.9% or $300,000 No levy increase 2009 No levy increase 2008 No levy increase 2007 No levy increase 2006 Summary The City strives to be a good steward of public resources by considering the following: •Thoughtful Expenditures, linked to mission and priorities, aimed at sufficiency, and attentive to total cost and value. •Maintenance and conservation •Commitment to ongoing improvement City of Mounds View Questions?