HomeMy WebLinkAboutRES 80-069 RESOLUTION APPROVING THE 1980 TAX LEVY, COLLECTIBLE IN 1981 AND THE 1981 CITY BUDGET Meeting Sheet
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102730
Box: 23
Folder: RES 1980
Document: RES 80-069 RESOLUTION APPROVING THE 1980 TAX LEVY.,
COLLECTIBLE IN 1981 AND THE 1981 CITY BUDGET
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RESOLUTION 80-069
A RESOLUTION APPROVING THE 1980 TAX LEVY,
COLLECTIBLE IN 1981 AND THE 1981 CITY BUDGET
WHEREAS, the City Council has reviewed the. financial needs of the
City for fiscal year 1981, and
WHEREAS,. the Council has attempted to provide a level of expenditures
necessary to provide an adequate level of service.
NOW,. THEREFORE, BE IT_ RE_ SOLVED, that the following sums of money be
levied the current year, collectible in 1981; upon taxable property
in the City of St. Anthony, for the following purpose:
Fund Levy
General (No. 101)_ $519,988
AND, FURTHERMORE, that sufficient funds have been provided for all
debt service (bonded debt) obligations so that all tax levies
for such obligations are hereby cancelled.
• AND, FURTHERMORE, that the 1981 budget is hereby approved.
The City Clerk is hereby instructed to transmit a certified copy of
this resolution to the County Auditor of Hennepin and Ramsey
Counties.
Adopted this 7 46 day of , 1980 .
Mayor
ATTEST: (�_rl-4 A-04 J ,�6
City Clerk
Reviewed for administration : •
-'
CiVy Manager
MEMORANDUM
DATE: October 7 , 1980
TO: Mayor and Councilmen
FROM: Jim Fornell, City Manager
SUBJECT: 1981 Budget and Tax Levy
Attached are some final recommended modifications to the proposed
1981 budget and a resolution certifying the 1980/81 tax levy.
The preparation of a budget is an art, not a science. It is impos-
sible to project with perfect accuracy every expense and revenue. -
Staff does . its best to control expenses and maximize revenues but
through a fiscal year some budget transfers are necessary, in part
due to changing needs. A contingency of $25,00.0 is provided as a
last resort for some of these transfers , should revenues not exceed
the estimate or should appropriations be inadequate and there are no
other appropriations which are projected to be underspent.
While budgets are inexact, I feel more comfortable with the analytical
• quality of this and recent budgets due to improvements in format and
monitoring. Data supports this : from 1977 to 1979 the City had
general fund budgetary surpluses; from 1972-1976 we had deficits.
(_In 1977 we had a surplus only because of the transferred assets of
a terminated debt ,service fund'. ) The number of budget transfers has
also been reduced.
This budget is very lean. There is very little margin for error in
estimates in an effort to produce a fiscally conservative budget.
Reserves are adequate, with the exception of the sewer fund, and
can provide a margin .of relief, if necessary. Some revenue sources
are cause for concern: General Revenue Sharing, the liquor operation
profits, and intergovernmental revenue sources. The "bottom line"
is that one cannot have a highly conservative budget yet expect to
provide a considerable margin for error and a very high service
level. I would characterize this budget as conservative but prudent.
The property tax consequence should be insignificant. According to
mid-September assessed valuation figures , our mill levy should be:
proposed levy 519 ,988 = 10 .28 mills
assessed valuation 50 ,580 ,272
This compares with a 1979/80 mill levy of 11.197 mills. Homesteaded
valuations have increased however, but the homestead tax credit has
-2-
also increased. The net. impact should be a modest decrease in the net
cost of City services paid by the homeowning taxpayer, U1 imately,
this may e-unrealistic over the.. next few. years, should costs continue
to rise. People can't continue to expect little or no increase in
their total tax bill. from all sources without a reduction in service
level (witness the state' s. mandated 8% expenditure reductions and
resulting service level reductions) .
RECOMMENDATION
I recommend the adoption of the. budget and the mill. levy Cas modi-
fied) . The City Council could- increase the mill levy as follows,
however:
$519 ,988 as proposed
16 ,385 to levy limitation (actual) (_l)'
173 ,000 special levies Cest.) ('2.)
$709 ,373. maximum. levy (est. )
This would be a mill levy of 14 .0 mills which is .about the suburban
city average. The City levy in St. Anthony is less than the suburban
average; the School and, to a lesser extent, the County levy is more
than the suburban average.
I would recommend against a sizable increase in the levy, especially
for capital improvements until priorities are fixed, needs are clear
and the cost/benefit is justified. In my opinion, it is not wise
to build significant surpluses without a reason for them.
JWF/cjk
cc: Department Heads
(1) The levy limit has been increased in the amount of the State
Aid to Local Government decrease.
(21 Miscellaneous. The "city' s bill" means a special levy of up to
$130,000.
• RECOMMENDED MODIFICATIONS
(Explanation to follow)
A. General Fund
ESTIMATED REVENUES Change to $1,376 ,435 (orig". )
3000-3011 - Property taxes 519 ,988 + 2 ,850
3300-3380 - Snow/ice rev. (Henn. Cty. ) 3 ,800 + 700
3300-3340 - State aid 230 ,800 + 1,900
3900-3988 - Revenue sharing transfer 50,000 -10 ,000
Final- Recommended Est. Rev. $1,371,885
APPROPRIATIONS $1,376 ,435 (orig-. )
4051-3350 - Insurance 47 ,000 - 3 ,000
4080-3200 - Planning; _.Consilti4g/ 0 -12 ,000
Contracted services
4095-3200 - Buildings; Consulting/ 18 ,000 + 2 ,500
Contracted services
4110-1100 - Police; salaries reg. 291,000 + 2 ,000
4110-1110 - Police; salaries overtime 20 ,000 + 3 ,000
4110-3330 - Police; care of prisoners 7 ,000 + 3 ,500
• 4120-2215 - Fire; communications 10 ,750 + 250
4120-3410 - Fire; travel., conf. , schools 1,500 + 100
4120-3420 - Fire; subscriptions &memberships 600 + 100
4.210-4530 - P.W. ; machinery & equipment 12 ,600 - 6 ,000
4010-6710 - Council; contingency 25,000 + 5 ,000
Final Recommended Appropriations $1,371,885
B. Sewer Fund
ESTIMATED REVENUES $ 197 ,160 (orig. )
No change unless the sewer rate is in-
creased. Without an increase, the deficit
will be slightly larger.
Final $ 197 ,160
APPROPRIATIONS $ 300 ,650 (orig. )
4810-3200 - Consulting services 3,100 + 600
Final $ 301,250
C. Water Fund
ESTIMATED REVENUES $ 173,675 (orig. )
No change as there is a small projected
surplus based upon the current water rate.
Final $ 173 ,675
APPROPRIATIONS Charge to $ 173 ,675 (orig.)
4820-3:200 - Consulting services 3,800 + 600
4820-6800 - Retained earnings 1,075 - 600
Final $ 173 ,675