HomeMy WebLinkAboutCC WORKSESSION 07292003 Meeting Sheet
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Box: 29
Folder: CC PACKETS 2001-2004
Document: CC WORKSESSION 07292003
07/21/2003 10:01 FAX 612 781 9323 CITY OF ST ANTHONY [a001
s� TX REPORT mxc
TRANSMISSION OR
TX/RX NO 1186
CONNECTION TEL 612 706 1020
CONNECTION ID SCHOOL
ST. TIME 07/21 09:59
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City of St. Anthony
3301 Silver Lake Road
St. Anthony, MN 55418
Phone: 612-789-8881
Fax: 612-781-9323
FAX T
to: Susan Bodurtha, ISD#282
from: Connie Kroeplin, City Clerk
date: July 21, 2003
re: Council &School Board 7/29 Agenda
pages: 3
NOTES: Attached is the July 29 meeting agenda and a policy for Central Park.
CITY OF ST. ANTHONY VILLAGE
JOINT CITY COUNCIL-SCHOOL BOARD
MEETING AGENDA
6:30 pm
Tuesday, July 29, 2003
New Central Park Building
1. Call to order by Mayor Hodson.
2. Update on City Projects.
a. Fire Station. Council will consider bids on site work and footings on August 26;
bids on the building package will be considered by the Council on September 23.
b. Public Works. Council will consider bids on site work and footings on August 26;
bids on the building package will be considered at a special meeting on September
30.
C. Stonehouse Project. The off-sale store will close on August 30 and be demolished
near September 15 for the anticipated redevelopment.
d. Autumn Woods. This is a 38 unit townhouse project.
e. Kenzie Terrace Tax Increment Financing District decertification.
f. Apache Plaza.
3. Update on School Projects.
a. Citizen Ad Hoc Finance Advisory Committee report.
4. Discuss proposed policy on Central Park.
5. Discuss impact the impact on the School District relating to loss of grandfather lease on
seniors/youth.
6. The next meeting will be on September 30 at 7:30 pm and will be hosted by the School
District.
Note: There will be a Council Work Session on the 2004 City budget
following the joint meeting.
CENTRAL PARK POLICY
(Proposed)
It will be the joint policy of the City Council and School Board that the following
will be the policy governing improvements to Central Park.
• Changes can only be approved by the School Board and/or City Council,
depending upon the request for the changes.
• Replacement of any existing items may be completed by the appropriate
entity- Council or School staff.
• The School District Superintendent and the City Manager will be the key
staff when deciding which entity needs to make an approval.
7/15/2003
Proposed
IMPORTANT DATES
St. Anthony Budget Schedule for 2004 Budget
April 22, 2003: Public Hearing to Discuss/Review 2004 Budgeting Goals
(Input from Residents is encouraged)
June - JujyL City Manager& Staff Meetings to discuss/draft 2004 Budget.
July 29, 2003: Work Session to discuss 2004 Budget & State Aid cuts.
September 9, 2003-
1) Resolution passed setting Proposed 2004
Tax Levy and Budget
2) Resolution passed setting Public Hearing
and reconvening dates.
November 29, 2003
December 21, 2003-
City must conduct a public hearing, which cannot conflict with
Hennepin County, Ramsey County, Independent School District
#282 or the Special Taxing Districts hearing dates.
December 8, 2003:
Public Hearing Date/adoption of final 2004
Property Tax Levy and Budget.
*****Please note: The public hearing must be held between November 29th and
December 21st. The City's initial public hearing cannot be held on the same day as
Hennepin or Ramsey Counties Initial Hearing Dates, I.S.D. #282 Initial Hearing Date or
Metro Special Taxing Districts Hearing Date.
MEMORANDUM
DATE: July 10, 2003
TO: Mike Mornson, City Manager
FROM: Roger Larson, Finance Director
ITEM: REVIEW OF 2003 - 2004 BUDGETS
In balancing the State budget, the Legislature finalized cuts in Local Government Aid and
Market Value Credit. In addition, they established the guidelines for 2004 Levy Limits.
A review of how the adjustments affect St. Anthony is as follows:
2003
1) Local Government Aid ($198,563) - 100% is Cut
2) Market Value Credit 68,785) - $134,750 Remaining
Total Reduction ($267,338)
2004.
1) No additional loss in aid, however, a new distribution formula will be
implemented over several years. Present law allows for no more than a 10%
increase or reduction in aid can occur in one year.
2) Strict levy limits been approved for 2004 (None in 2005). The levy limit is
set by taking last years general fund levy and adding 60% of the loss in LGA
and Market Value Credit($2,168,627 = $160,409= $2,329,036).
3) The debt levy for roads, the equipment certificate for fire truck, the tax
abatement bonds for central park and the new public works/fire station lease
revenue bonds are exempt from levy limits. In addition, the requirement to
have voter approved debt issuance was dropped.
At this year's goal setting, to offset the cuts in aid, staff and council agreed on a
contingency plan totaling$194,100(see attachment#1). When the actual cuts were
finalized by the State, the reductions totaled$267,348. To balance the 2003 budget, the
City Manager recommends we transfer$73,300 from the Tires Plus Building Fund
(12/31/02 Balance= $416,582.41).
To balance the 2004, budget the City Manager recommends the following adjustments be
made (see attachment#2):
1) 2003 Budget Line Items cuts become permanent $ 26,500
2) 2003 —Salary Cuts become permanent:
a. P/W Employee $ 30,200
b. Community Service Officer $ 10,400
3) 2004 Eliminate Northwest Youth and Family $ 3,500
4) 2004—Additional Adjustments/Personnel Layoff's 64,700
Budget Adjustments $135,300
5) Levy Back 60% LGA/Market Value Credit Loss $160,409*
6) 0% salary increase, $25.00 Health Insurance ($ 28,361)
Total Budget Adjustments $267,348
*Because of the limited ways Cities can raise revenues, the levy is a primary source of
funding for all City Governments. Formulas for distribution of State Aid and the amount
that Cities are allowed to levy the following year are based on the previous years levy. In
a practical sense, when Levy Limits are in place, it forces the Cities to levy to the limit or
lose additional dollars of State Aid or levying capabilities.
Also, attached is an estimate of the average cost to St. Anthony taxpayers for the projects
that have been approved this year which affect the 2004 property taxes.
The analysis is based on taking last years average property tax payment (based on the
average valuation= $183,900) and adding the cost for the 2003 road improvement
project, the equipment certificate for the fire truck, the lease revenue bonds for the public
works/fire buildings and the 60% levy back for LGA and Market Value Credit losses.
Attachment #1
2003 Budget Adjustments/Contingency Plan:
State Aid Cuts — 2003
Calculation (State Aid Cuts):
2003 Total Levy $2,6761041
Add: 2003 Local Government Aid $ 198,563
$2,874,604
Multiply by 9.3% = State Aid Cuts $ 267,348
$198,563 or 100% of St. Anthony's LGA is eliminated
$ 68,785 of Market Value Credit is cut
(Remaining MVC = $120,371)
Budget Reductions/Adjustments:
Renegotiate Prosecuting Attorney $ 125000
Eliminate Village Fest/Fire Works $ 59000
Eliminate Action Contribution $ 2,500
Eliminate Community Concerts $ 2,000
Reorganize Volunteer Dinner $ 31000
Reorganize Employee Recognition $ 1,000
Eliminate Holiday Lunch 1,000
$ 26,500
Staff Reductions: (Become Permanent)
P/W Employee $ 305200 Vacant
Community Service Officer 10,400 Vacant
$ 40,600
Sources of Revenue:
2002 Liquor Profits $ 505000
2002 Budget Reserves 77,000
$127,000
Total $1949100
Funding Gap $ 73,248
Tires Plus Transfer $ 739300
Attachment #2
2004 Budget Adjustments:
Reduces Current Working Personnel by 1
LGA/Market Value Credit Reductions $267,348
2003 Budget Cuts $ 26,500 Permanent
2003 Salary Cuts:
P/W Employee $ 30,200 Permanent
Community Service Officer $ 105400 Permanent
2004 Budget Cuts:
Northwest Youth & Family $ 39500 Permanent
2004 Salary Cuts:
Additional Adjustments/Layoff in Personnel 64,700 Permanent
Total $1359300
Revenue Adjustments:
Levy Back LGA/Losses $160,409*
Total $2959709
Health Insurance Increase ($ 28.)361)
2004 Budget Adjustments $2679348
Recommended Salary Adiustments:
2004 - 0% salary adjustment, health insurance increase = $25.00.
2005 — 2% salary adjustment, health insurance increase = $25.00.
*Calculation (2004 Levy Limit) — Current Legislation
allows Cities to levy back 60% of LGA & Market Value
Credit Losses.
Levy Limit is set by taking the 2003 General Fund Levy and adding
60% of the loss in LGA and Market Value Credit set levy Limits:
2003 General Fund Levy $21168,627
Add: 60% - 2003 LGA & MVC Loss $ 160,409**
2004 Levy Limit $293299036
**$267,348 X .60% = $160,409
MINNESOTA° REVENUE
July 17, 2003
ST ANTHONY CITY OF
CLERK-FINANCE DIRECTOR
CITY HALL
3301 SILVER LAKE ROAD
ST ANTHONY, MN 55418
TO: ALL CITY CLERKS/ADMINISTRATORS
RE: CERTIFICATION OF CY 2003 LGA AND MARKT VALUE CREDIT
REDUCTIONS
Following is the amount of local government aid (LGA) your city was scheduled to receive in
CY 2003, the amount of the CY 2003 LGA reduction(per 1St Special Session Laws 2003,
Chapter 21, Article 5, Section 12), and the net amount of LGA payable in CY 2003.
1. CY 2003 LGA: $ 198,563
.2. CY 2003 LGA REDUCTION: $ 198;563
3. CY 2003 NET LGA (1-2): $ 0
Following is the amount of market value credit your city is scheduled to receive in CY 2003, the
amount of the market value credit reduction (per 1St Special Session Laws 2003, Chapter 21,
Article 5, Section 12), and the net amount of market value credit payable in CY 2003 (half of
which will be paid in October 2003 and half in December 2003). NOTE: the amount of market
value credit includes real and personal residential and ag property only. It does not include
manufactured home market value credit.
4. CY 2003 MARKET VALUE CREDIT: $ 189,156
5. CY 2003 MARKET VALUE CREDIT REDUCTION: $ �68,:785
6. CY 2003 NET MARKET VALUE CREDIT (4-5): $ 120,371
Further information regarding 2003 LGA and market value credit reductions may be found at
the Department of Revenue website: .www.taxes.state.mn.us. If you have any further questions
regarding 2003 aid and credit reductions,please contact Shawn Wink at (651) 296-3394.
Property Tax Division Tel: 651-296-3394
Mail Station 3345 Pax: 651-297-2166
St.Paul,MN 55146-3345 TTY: Call 711 for Minnesota Relay
An equal opportunity employer
Property Tax Estimate - 2004
Current Property Taxes (2003) $ 770.58
-9 2003 Road Improvement $ 36.70
Equipment Certificate $ 23 .23
Public Facilities $ 160.00
� 60% Levy Limit/Recapture LGA $ 84.00
$ 1 ,074.51
F i v/ Less: Kenzie Desertification ($ 71 .00
✓ Total Estimated Property Taxes $ 1 ,003.51
✓ Amount of Property Tax Increase $ 232. 93
✓ Amount % Property Tax Increase $ 116.47
Capital Equipment Funding: (2004)
Revenues:
Police Contracts $ 35,000
Water/Sewer $ 605000
Water Filtration Interest Earnings $ 50,000
Trade/Sale of Existing Equipment 5,000
Total Available for Capital Equip $150,000*
*Due to the redevelopment of the Stonehouse and SAV I the liquor
transfer into the capital equipment fund is not available in 2004.
Fire:
Turnout Gear $15,000
Automatic External Defibrillator $ 3,500
$18,500
Public Works:
Toro Gang Mower $355000
Refurbish Park Equipment $15,000
$50,000
Police:
Two Squad Cars $48,000
Teardown/Building of Squads $ 45000
Equipment Replacement 4,000
$56,000
Admin/Finance:
H/P Lazer Jet Printers $ 3,000
Software Upgrades $ 3,500
Network Upgrades $ 4,000
$ 10,500
Contingency/Emergency Replacement 15,000
Total Capital Equipment $150,000