HomeMy WebLinkAboutAgenda Packets - 2015/12/07
CITY OF MOUNDS VIEW
SPECIAL CITY COUNCIL MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, December 7, 2015
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
8. Next Council Work Session: After this meeting
Next Council Meeting: Monday, December 14, 2015, at 7pm
9. ADJOURNMENT
Item No: 7.A.
Meeting Date: December 7, 2015
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 and Street Improvement Fund)
The City Council adopted a 1% preliminary levy increase for 2016 back in September.
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 $6,493,326. The current proposed budget reflects expenditures of
$6,505,828. The increase ($12,502) was due to the lease payable for the Energy
Savings Program ($24,323) with reductions for insurance costs in several departments.
The City Council will continue to use $250,000 from levy reduction “assigned” fund
balance. This will leave a deficit of $53,307 that will be taken from unassigned fund
balance.
Looking forward to 2016, 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 2016 certified amount. The 2016 LGA amount has been certified by the
Department of Revenue at $666,792. The 2016 General Fund budget was constructed
using 90% of certified LGA the same as 2015 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 bonding session with indications that
infrastructure and tax cuts 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 7, 2015
6:00 pm
1
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.
2
Truth in Taxation
The Truth in Taxation meeting covers those City funds that
get a portion of the City-wide tax levy. Those funds are as
follows:
General ($4,093,813)
Street Improvement Capital Projects ($300,000)
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.
3
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 2016
4
General
Government
13%
Community
Development
6%
Public Safety
49%
Streets &
Highways
13%Park &
Recreation
8%
Debt service -
Fire Bonds
2%
Other
2%
Transfers
7%
General Fund Expenditures by Function
2016 Proposed Budget
Expenditure Pie Chart
5
-
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 -
Fire Bonds
Other Transfers
General Fund Expenditures
2014 Actual
2015 Budget
2016 Proposed
Expenditure Bar Graph
6
General Fund Expenditure Changes
2016 General Fund operating expenditures are proposed to increase by $62,118 or 1.08%, this includes personnel services, materials and supplies, contractual services, and contingency.
2016 General Fund capital expenditures, debt service and transfers are proposed to increaseby $76,966 or 12.84%. Transfers to other funds is the primary driver of the increase.
Total 2016 General Fund expenditures are proposed to increase by $139,084 or 2.18% over 2015.
7
Revenue Pie Chart
General property
taxes
66%
Other taxes
6%
Licenses &
permits
3%
Intergovernmental
15%
Other revenues
7%
Transfers from
other funds
3%
General Fund Revenues
2016 Proposed Budget
8
$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
2014 Actual
2015 Budget
2016 Proposed
Revenue Bar Graph
9
Budget Summary
2016 General Fund significant budget items
•The City proposes a 2.18% increase in General Fund spending which includes increases in operational spending of $62,118 and non-operational spending (debt service, capital outlay, transfers) of $76,966 for an overall increase of $139,084.
•Estimated LGA in 2016 is $666,792, 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 $37,135, this excludes transfers.
•Fund Balance will be reduced by $303,307 with $250,000 from Levy Reduction.
10
Proposed Property Tax Levy
2015 2016
Property tax base levy $3,665,826 $3,706,549
Special levy - Police Referendum 187,000 194,000
Special levy - PERA rate increase 39,145 39,145
Debt service levy - Fire bonds 158,339 154,119
Capital Project Street Imp.$300,000 $300,000
Total Levy $4,350,310 $4,393,813
1% Change $43,503
11
What Your Tax Dollars Buy
Median Taxable Valued Home in Mounds View 153,100$
City Tax on Median Valued Home 650.42$
Police 302.24 46.47%
Public Works 86.05 13.23%
Fire 66.07 10.16%
Parks and Recreation 62.94 9.68%
Administration 44.76 6.88%
Street Improvement levy 36.74 5.65%
Community Development 30.79 4.73%
Community Center 20.82 3.20%
650.42$ 100.00%
12
Sample Home Tax Impact
2015 Home 2015 2016 Home 2016
Taxable City Taxable City
Value Tax Value Tax Difference
32,450$ 145.44$ 33,542$ 141.89$ (3.55)$
80,700 361.11 84,584 357.66 (3.45)
139,550 624.90 145,625 616.04 (8.86)
198,500 889.11 206,567 873.84 (15.27)
257,350 1,152.90 267,609 1,132.07 (20.83)
316,300 1,417.11 328,551 1,389.87 (27.24)
375,250 1,681.32 389,492 1,647.67 (33.65)
432,400 1,937.82 447,534 1,893.20 (44.62)
486,450 2,180.33 503,476 2,129.85 (50.48)
13
City of Mounds View
26.00 cents
Ramsey
County
35.85 cents
School
District
31.61 cents
Other taxing
districts
6.54 cents
Tax Bill Breakdown
14
Tax Levy Per Capita
New Brighton
$325.67
Mounds View
$353.09
Blaine
$367.31Arden Hills
$360.42
Shoreview
$414.72
Fridley
$450.70
Spring Lake Park
$469.01
Roseville
$545.66
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
1
15
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.
119 out of 227
The City tax levy per capita ranked
142 out of 227
The state-wide average per capita levy is $388 for cities between 10,000 and 20,000. The City compares favorably at $353 per capita.
16
Prior Year’s Budgets
Local Government Aid (LGA) to the City has fluctuated but has stabilized with a more stable state economy.
$484,724 for 2011, withheld $252,646
$232,078 for 2012, withheld $0
$232,078 for 2013, withheld $0
$597,024 for 2014, withheld $0
$655,951 for 2015, withheld $0
Market Value Homestead Credit was eliminated for 2012 and beyond
Tax Levy
No levy increase in 2006, 2007, 2008, 2009, 2012, 2013 Street levy in 2010 7.9% or $300,000
General Fund in 2011 2% or $80,993
General Fund in 2014 2% or $83,629
General Fund in 2015 2% or $85,300
General Fund proposed 1% for 2016 or $43,503
17
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
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City of Mounds View
Questions?
19