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8.0. SR 08-25-1997City of iver MEMORANDUM Item #8. TO: FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City Administrator August 19, 1997 1998 Budget Worksession The first City Council worksession on the 1998 budget is scheduled for Monday, August 25, 1997, in the Training Room following the completion of some regular city business items. The proposed maximum levy and budget must be approved by the City Council and certified to the state no later than Monday, September 15, 1997. For all practical purposes this means that the City Council must finalize the budget and determine the proposed maximum levy some time around September 8-10. Additionally, by September 15, 1997, the City Council must establish its December 1997 public hearing dates for consideration of the 1998 budget and tax levy. There is between one and two hours of non budget items on the 8/25/97 City Council agenda. The balance of the evening will be dedicated to reviewing and discussing issues related to the 1998 proposed budget. The budget worksession agenda looks something like the following: · Discuss the 1998 proposed revenues including the impact of the levy limit law · Discuss the 1998 proposed expenditures, concentrating on personnel and capital outlay items · Discuss the 1998 "budget gap" · Review the special levy and special revenue budgets · Review miscellaneous financial issues · Review required City Council action before September 15, 1997 The city budget issues in 1998 are similar to what the city has had to deal with in the past few years. The challenge facing us relates to how the city can finance the growth that it is experiencing. This will be especially challenging in 1998 with levy limits. The budget concerns in 1998 relate to how the city can finance the necessary personnel additions, capital outlay items, and programs when the only substantial increase in revenues comes 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 1998 Budget Worksession August 25, 1997 Page 2 from taxes and, for the first time in years, the amount of additional tax revenues the city can collect is being restricted. REVENUES A new state law imposes levy limits upon municipalities. This law has an impact on the 1998 general fund budget. For the first time in a number of years the city cannot determine the level of service necessary to meet our needs and then adjust taxes accordingly to finance this level of service. However, if the city makes some minor adjustments in the non general fund budgets and takes advantage of the special levy for part of the expense for the COPS FAST employees, then the total impact on the general fund tax revenues is not overly significant as compared to previous years. The levy limits law allows the city to increase the non bonded 1997 tax revenue amount by an inflationary factor and by a local household growth rate. The levy limit law impacts the tax revenues in the general fund, library, development fund, dam loan, and part of the surface water management (SWM) program that is not for debt. The "minor" adjustment noted above which will help the general fund situation is to have all the available increase in revenue for inflation and household growth go toward general fund activities. If the Council accepts this adjustment, then the library, SWM program, development fund, and dam loan budgets and tax levies will be identical in 1997 and 1998. This approach shifts approximately $15,000 of tax revenue to the general fund to finance municipal services. With this shift of tax revenue increases to the general fund, and by adding the $58,432 in COPS FAST special levy into the general fund, the total general fund tax revenue increase will be approximately $317,450. This is similar to the 1997 increase of $312,650 and to the 1996 increase of $326,950. The general fund tax revenue increase has always been the majority of the total budget increase and this will be true again in 1998. Tax revenues in the budget have an impact on the city tax rate. We have usually tried to keep the tax rate stable and live off our growth in the tax base. To make an informed decision regarding this goal, the city needs the county figures for increase in our net tax capacity. However, with levy limits in place, this county information on our growth isn't really necessary unless the city does not levy to the maximum allowed by law. Not needing this growth information from the county in 1997 is good because it will not be available. The reason this information will not be available from the county 1998 Budget Worksession August 25, 1997 Page 3 is due to all the additional work and time required based on the 1997 tax class changes that were signed into law this spring. We will be fortunate to know the growth in our net tax capacity before the end of the calendar year. In 1996, the city tax rate was 24.033. This was approximately 22.5 percent of the total. In 1997, the city tax rate was 24.683. This was approximately 21.5 percent of the total. In 1997, the total tax rate included the school building levy. It is estimated that the 1998 city tax rate will be somewhat stable and that our percent of the total may decline. A revenue source that has become a significant issue in the past few years is the COPS FAST funding. Elk River has, or will have, six police officers hired and partially funded under this state and federal program. The revenues for these employees will increase from $101,750 in 1997 to $152,550 in the 1998 budget. The problem that we have as a city is not here in 1998, but will be here in 1999, 2000, and beyond as this $152,550 moves down to zero. These police officer expenses will then have to absorbed within our tax revenue increases. This is true with or without levy limits being in place. This impact could be dramatic upon the city budget. The impact may be felt most in our ability to add additional employees that are necessary for desired new programs. This could impact our ability to hire additional maintenance employees, develop a city engineering department, absorb additional community recreation expenses, add clerical support, etc. We can't really see or touch this problem at this time, but it is very real and will be realized within the next few years. Two revenue decreases of note in 1998 are the $22,000 reduction from the school for the DARE program and the $25,500 reduction for not planning to use any cash flow reserves to balance the budget. The school reduction assumes the cut of one officer from the DARE program and means that the general fund tax revenues will have to absorb this additional police officer expense. If the school cuts both Elk River DARE officers, then further revenue adjustments will be required. The use of cash flow reserves to balance the budget is not generally recommended. It is okay to use this approach occasionally, but the city does not want to annually be dependent on this budgeting technique. These funds can be very difficult to replace if we use them annually to balance the budget. One of the biggest positives in the general fund revenues continues to be the monies generated by our growth. These monies include building permits, plan check fees, plumbing and heating permits, planning and zoning fees, etc. The city also continues to try to be conservative in our estimates for these 1998 Budget Worksession August 25, 1997 Page 4 growth related revenues for two reasons. One reason is that we are always concerned about meeting expenditures when these growth related revenues decline and the request for services is reduced, yet the city has staffed up to meet a higher demand level. The other reason for a conservative projection in this growth area is that revenues exceeding projections has been one of the main reasons that the city has been able to substantially increase its cash flow fund balance the past few years. EXPENDITURES The three most significant expenditure issues are: 1.) how the city can fund personal services increases (wage adjustments and new employees); 2.) the need to establish a long term source of revenues to fund the annual capital outlay program; and 3.) how to fund increased or new services and new programs. Personal Services - The personal services category in the general fund budget is proposed to increase by $300,950 to a total of $3,382,200. By way of comparison the personal services category increased by $342,250 in 1996, and is projected to increase by $303,150 in 1997. The reason for the increases is the cost of living adjustments, step increases for employees, and the hiring of new employees. The hiring of new employees is initially funded out of the city council contingency fund and then these expenses are moved to the departmental budgets. In 1997 these positions included the mechanic, 'two COPS FAST officers, the part time office service worker in building/zoning, changing the police part time office service worker to full time, and the addition of part time help in the street/park department. The funds for new employees (and the change in status of employees) begin in the city council contingency fund. Additionally, wage increases for non union employees are also in the city council contingency fund. This provides the Council with the maximum amount of flexibility for wage adjustments and in the timing of hiring new employees. Due to financial constraints on the general fund budget there are very few dollars available for new positions in 1998. Accordingly, the request for new positions is down slightly in recognition of the financial constraints we are facing. The following positions have been requested: Increasing the building/zoning office service worker hours. I am not recommending that this additional time be approved because I want to wait and see the impact of a third building inspector on this department. Additionally, more hours would mean a third clerical employee in this department as the part time help hired in 1997 was 1998 Budget Worksession August 25, 1997 Page 5 clear in stating up front that she could not work full time. This request could cost up to $15,000. · The planning department is requesting that the intern position be established as a permanent planning position. I am recommending approval of this request. Seven months of wages are already in the planning department budget. An upgrade of the intern position to a planner position and the allocation of five additional months of wages needs to happen for this position to be established. This request will cost approximately $12,000. · The police department is asking for the establishment of a captain position. This is not an increase in manpower, but a promotion. I am not an expert in police chain of command issues or supervisory responsibilities, but I have not been convinced of the need for this position. This promotion has been discussed for a few years. The cost of this position change would be about $ by the time a sergeant is promoted to captain, a corporal promoted to sergeant, and an officer promoted to corporal. One of the ongoing concerns in the police department is pay. In the past, the Chief has expressed a legitimate concern over how close in pay the sergeants were to his wages when considering the overtime pay the sergeants receive. The captain will not receive overtime pay and I can see this total pay relationship concern becoming an issue. Additionally, the Chiefs pay has an internal relationship to the pay of other department heads. · The administration department is asking for the hiring of a part time Cable TV employee. I am recommending approval of this position. The purpose of this employee is to reduce the current expenses for videotaping meetings and to provide more cable programming opportunities. The net increase in cost to the city will not exceed $5,000. · The street/park department has requested the elevation of a current employee to the park foreman position. I support this request and have heard Councilmembers request this change in the past. This employee currently works in a park foreman capacity and we need to formalize this change. Accordingly, this increase in pay, due to increased responsibility, is already in the proposed 1998 park budget. This change will cost about $2,000. The Council should be advised that the contingency fund also includes the wages for the two vacant police department positions. These two positions are a total of somewhere between $81,600 and $113,600 for entry level versus top paid officers. The contingency fund also includes approximately $45,000 for the wages/benefits for the non union general fund employees. When taking into consideration these two expenditures, it is easy to see that there 1998 Budget Worksession August 25, 1997 Page 6 are limited dollars available in the $227,000 contingency fund for new employees and then for true council contingency type of expenditures. Capital Outlay - Capital outlay expenditures identified in the budget are usually in the $400,000 neighborhood. This includes expenditures for street/park trucks and equipment, police vehicles, building lease/purchase payments, sirens, payments of fire trucks, and miscellaneous equipment. The source of funds for these expenses are taxes and equipment reserves. Items identified in the general fund are financed by taxes as are items identified in the equipment certificate program. The city does not like using the equipment certificate approach as we end up paying interest on these "loans", but at this point in time we have very little choice. The equipment certificates are outside of the levy limits. Items identified in the equipment reserve budget are financed by the annual contribution from Municipal Utilities which does not go into the general fund. City equipment reserves are also used to help finance items listed on the equipment reserves budget. One of the approaches the city has used in the past to balance the budget is to cut capital outlay items or to purchase requested capital outlay items in the current year by way of using the city council contingency fund. We also move some requested capital outlay items out of the general fund and into the equipment certificate or equipment reserve budgets. Staff will seriously look at the shifting of these expenses prior to the presentation of the budget on August 25, 1997. New Pro~rams and New or Additional Services - If the city park and recreation bond referendum passes, the city can expect extra expenses in the park maintenance area. This is especially true if permanent bathrooms/shelters are constructed. Experience tells us that this is a heavy maintenance issue. Additionally, with the construction of new trails and the installation of additional park equipment, overall park maintenance expenses are expected to increase. There are no funds programmed in the 1998 budget for a city engineering department. This department has been under review and consideration for many years and I think we can expect this department to be established in the near future. The City Council will need to review the demand ibr this type of service versus the net expenses that the city would incur. The community recreation organization is currently going through a small evolution. This organization has lost some members, but may actually be getting stronger in the services that they are providing to the core group. Elk 1998 Budget Worksession August 25, 1997 Page 7 River finances over half of this organization and has over half of the participants in the programs offered. There may be a day in the not too distant future where the city will be asked to finance the entire operation and contract out services to neighboring communities. This can be complicated when the School District has most of the recreation facilities. The city currently gets a very good buy on its park and recreation services and the hiring of a park and recreation director and support staff in lieu of a community recreation organization would cost the city more money. The city continues to strongly support Community Recreation. As the city grows and the demand for services increase, there are always requests for more police officers, street/park maintenance employees, office service workers in the police department and administration departments, etc. Additionally there are new positions that are always being evaluated such as a human resource coordinator or an administrative assistant for the city administrator. These requests need to be annually evaluated. THE 1998 BUDGET GAP Annually when the City Council reviews its proposed budget in August- September, a budget gap exists between requested expenditures and available revenues. The City Council either closes this budget gap in the fall and balances the budget when the proposed maximum levy and budget is certified in mid September; or the City Council certifies a maximum levy and budget and balances the expenditures and revenues at worksessions prior to the December public hearing(s) on the city levy and budget. The 1998 proposed revenues are $4,951,550. The 1998 proposed expenditures are $4,977,200. The 1998 budget gap for this August 25, 1997, Council worksession is $25,650. Some issues to look at in attempting to close this budget gap from $25,650 to zero include the following: · 0-$7,200 · 0-$6,550 · 0-$12,400 · 0-$3,OOO Reconsider the Historical Society contribution request Reconsider the Central Minnesota Initiative Fund contribution request Move some more of the police capital outlay items to the equipment reserve budget or purchase a few items (such as radios) now out of 1997 city council contingency funds. Move the street capital outlay request for the computer to the equipment reserve or equipment certificate budget or 1998 Budget Worksession August 25, 1997 Page 8 · 0-$6,600 · 0-$4,000 purchase this item now using 1997 city council contingency funds Move the equipment repair and maintenance capital outlay request for a hoist to equipment reserve or equipment certificate budget or purchase now using 1997 city council contingency funds Move the park capital outlay request for a mower to the equipment reserve or equipment certificate budget or purchase now using 1997 city council contingency funds. An alternative to purchasing all of the equipment items noted above would be simply to delete them from the budget and delay the request for a year or more. Another approach in helping to balance the budget is to increase some revenue projections. We do this reluctantly, but we know we are conservative in some of our revenue projections and in this regard we could probably gain $10,000 through increasing revenues in the following categories: building/zoning permits; plan check fees; liquor store transfers; and street reserve transfers. One issue that needs to be looked at is the school contribution for the police liaison program. As most Councilmembers are aware, the city may not be teaching the DARE program in the schools in Elk River. This is a School Board decision. The county sheriffs department may provide this service at a more economical price to the School District. This may result in a further reduction in revenues and may increase the budget gap from what was noted above. Regardless of what happens with the Elk River officers teaching the DARE program, I believe it is appropriate for the city to establish a different funding relationship with the School District for the police officers they are requesting. Last year we had two DARE officers and a juvenile officer that served the two junior highs and the senior high. It is assumed that even if the DARE program is not taught by Elk River officers that at least this one juvenile officer will remain. The School District, since about 20 years ago, has reimbursed the city 42 percent of the salary/benefits for the police officers that work in the schools. In reality, the police officers spend 75 percent of their time in the school (9 out of 12 months), and the city has additional expense in equipping the officers with uniforms, vehicles, etc. It is suggested that the City Council establish a new funding formula between the city and the School District for any officers that are full time in the schools. 1998 Budget Worksession August 25, 1997 Page 9 Overall the budget gap seems reasonably manageable this year. One reason for this relates to the small number of additional employees and employee changes that are being requested. The other reason for this small gap is the special levy for the COPS FAST program. If we had our usual request for new employees and some of these employees were hired, we would have a much more difficult budget gap issue to address. SPECIAL LEVY AND SPECIAL REVENUE BUDGETS Outside of the general fund, the city has a number of budgets that are special levy or special revenue budgets. These budgets are as follows: · Library · Surface Water Management (SWM) · Special Assessments · Equipment Certificates · Equipment Reserves · HRA · EDA · Landfill · Ice Arena Of the above list, it should be noted that the equipment reserves, landfill, and ice arena budgets have no impact on the city tax levy. Additionally the EDA and HRA levies are separate from the city tax levy resolution, but still require City Council approval. Of the above list, the library, SWM, special assessment, and equipment certificate budgets have an impact on the city tax levy. The 1998 library and SWM budgets are proposed at the same level as what was adopted in 1997. The majority of the SWM budget is for debt repayment for projects that were recently completed. The special assessment levy and budget is proposed to decrease in 1998. The equipment certificate budget is identified in the capital outlay summary page. This equipment certificate budget is subject to City Council debate and accordingly will not be finalized until after City Council discussion on 8/25/97. At this time the proposal before the Council for equipment certificates is $120,050. This is compared to the $111,000 amount that was adopted in 1997. The equipment reserves budget page is also not finalized. Funds for these expenditures come from the city equipment reserves and from the part of the municipal utilities contribution which is not in the general fund revenues 1998 Budget Worksession August 25, 1997 Page 10 section. The expenditures for the equipment reserves budget are also identified in the capital outlay summary page and are subject to City Council discussion at its 8/25/97 worksession. The City Council should note that the total capital outlay expenses proposed in 1998 are in the amount of $403,500. By comparison, in 1997 the City Council had $409,250 in expenses for these type of capital outlay items. Four of the Council members sit on the EDA and Councilmember Dietz also receives the EDA packet, so everyone should be familiar with the EDA budget. The HRA budget is scheduled to be reviewed and considered prior to the City Council meeting on August 25, 1997. It is expected that the HRA will adopt the proposed budget at this meeting. Regarding the HRA and EDA, the City Council needs to pass individual motions approving the tax levy resolutions for these two agencies. These resolutions will be handed out at the meeting. The landfill budget is very straightforward. The city has staff time, legal, environmental, and the active gas extraction program expenses included in the landfill operation. The city is reimbursed for these expenses from the landfill surcharge that is available to be used for waste abatement purposes. Additionally the city transfers out $19,750 from this fund to the general fund to help offset the expenses of police services to monitor garbage truck activities in and around the landfill and throughout the city. The ice arena budget is new to the city and the budget has closely followed the estimates that were provided to the city by the Ice Arena Task Force and which were used in the bond documents. It will be a number of years before we actually have a clear understanding of the operation and expenses at the ice arena and for the revenues that are generated from the various programs and activities. At this time our concerns with the ice arena are the same as with any fund inasmuch as we are concerned that revenues meet the projected level and that expenditures can be held to the budgeted amount. Our first obligation with the ice arena is to pay off the debt. If there are not sufficient funds available to operate the arena after this obligation, then the city will have to look at other funding sources which include general reserves or a tax levy. 1998 Budget Worksession August 25, 1997 Page 11 MISCELLANEOUS FINANCIAL ISSUES There are a number and variety of financial issues that the City Council should also review and discuss. These issues are noted below. A number of 1997 city council contingency expenditures need to be acknowledged by the City Council. The first item is that there are expenses associated with the park and recreation bond referendum which are not included within the park budget. These expenses will need to come from the city council contingency fund. Another item not considered when the budget was approved was a computer for the planning department. This PC is needed now and should not wait until after the budget is approved. Accordingly, it is recommended that this expenditure come out of the 1997 city council contingency fund (another PC for the planning department is still in the budget). Two final 1997 contingency fund expenditures relate to the ADA update and putting the City Council minutes books into permanently bound documents. Both of these expenditures are going to slightly exceed the amounts of the administration and council budgets. I don't know that we will need to have the extra expenses come out of the city council contingency fund, but I would like to at least note to the City Council that activities in these two areas are moving forward. A number of purchases that were discussed during the staff budget meetings are being recommended to take place now. The first expenditure is for 2 snowplows and 3 snow truck boxes. The cost for these items is estimated to be $27,100. Sufficient new funds for these purchases are available from the state and federal emergency snow removal reimbursement program. As this was unforecasted revenue that we received, and as we would like to get the snow removal fleet improved before the next snow season, it is recommended that we apply these monies toward this expenditure now. The other purchase is an update of the air photos for the core village area. This is about 30 air photos and funds are available from the selling of topographical maps to developers. We have received over $4,000 of unbudgeted revenues from the selling of these topographical maps and believe it is appropriate to move forward now with the purchase of air photos using this revenue source. I would recommend the Council approve both these expenditures. As is typical during the budget meetings, there are a number of personnel issues that need to be reviewed by the Council. The Personnel Committee (Lori, Sandy, Tom, and Phil) will not have an opportunity to meet before the August 25, 1997, budget meeting. The Committee will have an opportunity to meet before the planned September 8, 1997, budget worksession (which will follow the EDA meeting). At that time recommendations on some 1998 Budget Worksession August 25, 1997 Page 12 changes in the street/park department positions, the ice arena part time and full time employees, and the pay for the police reserves is anticipated. I would like to discuss with the City Council some improvements that are planned at the Nord house which the city owns directly north of the golf course and in the southwest corner of the Woodland Trails Park near the County Road 32 and County Road I intersection. This house has been rented out since we acquired it a number of years ago and is in the need to some repairs. Due to health/safety issues, the city has already repaired the septic system and completed some minor plumbing work in the house. Additionally the city has installed a new well and has sealed up the old well. This new well will also serve any park building that is constructed in the future. The other improvement that is necessary in order for this house to remain viable is a vinyl siding improvement project. The city has received two quotes for vinyl siding, new gutters, and some storm windows, and the low quote is $7,530 for these items. Vinyl siding will allow us to keep the house in good condition for the next ten years or so. Staff recommends Council approval to proceed forward with vinyl siding, new gutters, and storm window improvements at the Nord house. The funding source for these expenses would be the rent revenue that we have received and saved for the past few years. The one remaining issue with this house is the appearance of the roof. The roof is in good shape, but the appearance is very poor due to some modifications that took place about ten years ago. A small additional expenditure will be needed to clean up this appearance or else to put another layer of shingles on the roof. This roofing work would not happen until 1998. One final item relates to the Library. The Library Board has discussed and reviewed the need for additional parking ever since the building expansion took place. An increased level of activity beyond expectations has created parking shortages on a much too frequent basis. The only viable option for improving the parking situation is to purchase property around the library. The property directly north on Proctor has recently become available and the board and staff would like to pursue this purchase. Following the purchase of this property we would like to remove the structure and develop the area into additional parking for the library. This purchase would give the library an option some time in the future to expand the building in this direction. Expansion of the building in other directions (east, south, and west), are not likely, so this purchase may also pay some long term dividends if the building ever needs to be expanded. It is believed that we can purchase the property and do the improvements within the $110-120,000 range. Most of the necessary funds for this expenditure are available in the library reserve. Assistant City Administrator Lori Johnson will be able to address the finances of this proposal at the 8/25/97 worksession. 1998 Budget Worksession August 25, 1997 Page 13 CITY COUNCIL ACTION At the August 25, 1997, City Council budget worksession, or at a special City Council worksession on September 8, 1997, the City Council should consider the following: · A motion approving the EDA tax levy resolution (to be handed out); · A motion approving the HRA tax levy resolution (to be handed out); · A motion to adjust the debt levies per the recommendation of the Assistant City Administrator (Lori will have a handout and make a presentation on these adjustments at the worksession); · A motion approving the general city tax resolution (this resolution also approves the proposed maximum budget); and, · A motion calling for the city Truth in Taxation public hearing on the tax levy and budget for December 1, 1997, with a continuation date of December 8, 1997. The issues noted above require City Council action no later than early September in order for information to be certified to the state by September 15, 1997. Additional requested City Council action on various items are noted throughout this budget memo. These items include closing the budget gap, purchasing non budgeted items now, pursuing improvements to the Nord house, pursuing the purchase of the property north of the library, and directing a letter to be sent to the school regarding the funding of police officers. Attachments · 1998 General Fund Revenues · 1998 General Fund Expenditure Summary · 1998 Capital Outlay List · 1998 General Fund Expenditure Budget Pages · 1998 Special Levy and Revenue Pages · City Tax Levy Resolution · City Tax Rate Information Pages Bond Fund PAYABLE 1998 DEBT SERVICE LEVY ADJUSTMENTS G.O, Improvement Bonds Series 1992A 1993B Permanent Improvement' Revolving 1997 Equipment Certificate Scheduled A~u~ed Levy Levy $ 255,967 $ - 28,829 - 132,438 32,673 Reason for Adiustment Sufficient cash available from Special Assessments. Sufficient cash available from Special Assessments. Reduced by amount of fire pumper payment from Equipment Reserves (1997 & 1998) RESOLUTION 97- A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION APPROVING THE 1998 TAX LEVY FOR ECONOMIC DEVELOPMENT PURPOSES FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City Council of the City of Elk River has received a request from the Economic Development Authority to levy a tax for the benefit of the Authority in the amount of .01813% of taxable market value of taxable property in the City for the year of 1998; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River as follows: The City Council of the City of Elk River proposes that a tax in the amount of .01813% of the taxable market value in the City less Homestead and Agricultural Credit Aids of $12,069.00 be levied in the year 1998 for the benefit of the City of Elk River Economic Development Authority to be used for Economic Development Authority purposes as provided under Minnesota Statute 469.090 et. seq. Passed and adopted by the City Council of the City of Elk River, Minnesota this ~ day of ., 1997. ATTEST: Henry A. Duitsman, Mayor Sandra A. Thackeray, City Clerk RESOLUTION 97- A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION APPROVING THE 1998 TAX LEVY FOR ECONOMIC DEVELOPMENT PURPOSES FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City Council of the City of Elk River has received a request from the Economic Development Authority to levy a tax for the benefit of the Authority in the amount of .01813% of taxable market value of taxable property in the City for the year of 1998; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River as follows: The City Council of the City of Elk River proposes that a tax in the amount of .01813% of the taxable market value in the City less Homestead and Agricultural Credit Aids of $12,069.00 be levied in the year 1998 for the benefit of the City of Elk River Economic Development Authority to be used for Economic Development Authority purposes as provided under Minnesota Statute 469.090 et. seq. Passed and adopted by the City Council of the City of Elk River, Minnesota this __ day of ~, 1997. Henry A. Duitsman, Mayor ATTEST: Sandra A. Thackeray, City Clerk RESOLUTION 97- A RESOLUTION FOR THE CITY OF ELK RIVER a RESOLUTION AUTHORIZING THE PROPOSED MAXIMUM TAX LEVY FOR CALENDAR YEAR 1998 WHEREAS, WHEREAS, the Elk River City Council has review the City's anticipated expenditures for all funds in 1998; and, The: Elk River City Council has considered projected revenues for all funds in 1998; and, WHEREAS, revenues from sources other than property taxes are not sufficient to meet anticipated expenditures of all funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that the proposed General fund Budget in the amount of $ is hereby adopted. BE IT FURTHER RESOLVED by the City Council of the City of Elk River that the following amounts are the maximum to be levied as property taxes payable in 1998: General Fund Library Dam Loan Development Fund Surface Water Management Matching Grants 1994 Storm Sewer Bonds City Special Assessments 1989 Fire Equipment 1994 Certificate of Indebtedness 1995 Certificate of Indebtedness 1996 Certificate of Indebtedness 1997 Certificate of Indebtedness 1998 Certificate of Indebtedness Gross Levy $ 3,206,538 54,950 32,572 125,000 51,473 58,432 117,627 24 682 70 424 23 124 24 694 20 739 32 673 35 000 HACA Reduction $ 497,265 8,522 5,051 19,385 7,982 9,062 18 242 3 828 10 921 3 586 3 830 3 216 5 067 5 428 Net Levy $2,7O9,273 46,428 27,521 105,615 43,491 49,370 99,385 20,854 59,503 19,538 20,864 17,523 27,606 29,572 TOTAL 3,877,928 601,385 3,276,543 Passed and adopted by the City Council of the City of Elk River this day of ,1997 ATTEST: Henry A. Duitsman, Mayor Sandra A. Thackeray, City Clerk Economic Development Authority - Elk River, Minnesota Public Project Revenue Bonds (City Hall Project) Projected Revenue Fiscal NSP Year Payment City Hall Net Liquor General Fund Reserve Revenue (Current (Landfill) Transfer Lease) APPENDIX I Public Fire Other/ Total Works Station Property Projected Lease Lease .Tax Revenue 1992 87,550 75,000 40,000 0 0 0 1993 89,301 75,000 40,000 15,000 0 0 1994 91,087 75,000 30,000 30,000 0 0 1995 92,909 75,000 30,000 30,000 0 0 1996 94,767 75,000 25,000 30,000 0 0 1997 96,662 75,000 25,000 30,000 0 0 1998 98,596 75,000 20,000 30,000 37,000 28,000 1999 100,567 75,000 20,000 30,000 37,000 28,000 2000 102,579 75,000 20,000 30,000 37,000 28,000 2001 104,630 75,000 20,000 30,000 37,000 28,000 2002 106,723 75,000 20,000 30,000 37,000 28,000 2003 108,857 75,000 20,000 30,000 37,000 28,000 2004 111,035 75,000 15,000 30,000 37,000 28,000 2005 113,255 75,000 15,000 30,000 37,000 28,000 2006 115,520 75,000 15,000 30,000 37,000 28,000 2007 117,831 75,000 15,000 30,000 37,000 28,000 2008 120,187 75,000 15,000 30,000 37,000 28,000 2009 122,591 75,000 15,000 30,000 37,000 28,000 2010 75,000 15,000 30,000 37,000 28,000 15,000 217,550 0 219,301 0 226,087 0 227,9O9 0 224,767 0 226,662 0 288,596 0 290,567 0 292,579 0 294,630 0 296,723 0 298,857 0 296,035 0 298,255 0 300,520 0 302,831 0 305,187 0 307,591 0 185,000 Prepared by SPRINGSTED Incorporated (10-Sep-91) Page 5 Gross Levy Comparison General Fund Library Dam Loan Development Fund Matching Grants Surface Water Management 1994 Storm Sewer Bonds City Special Assessments 1989 Fire Equipment Equipment Certificates of Indebtedness TOTAL 1997 1998 2,939,800 $ 3,206,538 54,950 54,950 32,572 32,572 125,000 125,000 58,432 53,605 51,473 115,495 117,627 33,577 24,682 68,586 70,424 120,970 136,230 increase/(~Decrease) .. Amount. Percent $266,738 9.07% 58,432 (2,132) -3.98% 2,132 1.85% (8,895) -26.49% 1,838 2.68% 15,260 12.61% ~77,928 333,373 9.41% 333234 0.113217471 8/22/97:MISC.XLS Notice of Proposed Total Budget and Property Taxes The ~ city council will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the city will provide in 1998. SPENDING' The total budget amounts below compare the city's 1997 total actual budget with the amount the city proposes to spend in 1998. 1997 Total Proposed 1998 Actual Budget Budget Change From TAXES: The property tax amounts below.compare that portion of the current budget levied in property taxes in the city of Spruceville for 1997 with the property taxes the city proposes to collect in 1998. 1997 Property Proposed 1998 Change from Taxes Property Taxes ~ Attend the Public Hearing All ~ city residents are invited to attend the public hearing of the city council to express their opinions on the budget and on the proposed amount of 1998 property taxes. The hearing will be held on: December ~ City Hall You are also invited to send your written comments to' City of ~l~'~e, Mayor's Office, 321 Spruce Street, Sp1',~-,.,i~, MN 55555 ~ty of River MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor & City Council Phil Hals, Street/Park Supt. August 25, 1997 Purchase of Snow Removal Equipment In the 1998 budget, I had identified the need to purchase two 12' reversible trip edge snowplows and three dump box inserts. The plows will replace two old moldboard trip plows we are now using. The dump box inserts will allow us to haul 14 to 16 cubic yards of snow instead of 6 cubic yards on our single axle dump trucks. These boxes will shorten the time it takes to haul the snow from the downtown area. Little Falls Machine quoted two plows at $4,045 each plus taxes in the amount of $527.65 for a total of $8,617.65. Fair Mfg. Quoted three dump box inserts at $5,621 each plus taxes in the amount of $1,096.09 and freight in the amount of $525 for a total of $18,484.09. The total amount is $27,101.74 and funds would be drawn from the state and federal monies we received for winter storm relief in January 1997. e:\shrdoc\council\snowplow.doc 13065 Orono Parkway · P.O. Box 490 ° Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 SHERBURNE COUNTY HISTORICAL SOCIETY 13122 First St. Becker, MN 55308 July 8, 1997 612-261-4433 ~ 612-441-1880 ~ 1-800-932-2066 City of Elk River c/o Pat Klaers, Administrator 13065 Orono Road Elk River, MN 55330 Dear Mayor Duitsman and Members of the Elk River City Council: In May, Bob Minton and John Oliver, board members of the Sherburne County Historical Society, approached the City of Elk River to ask for help in funding a new Sherburne County Heritage Center. We wish to again make a formal request to the City. As outlined by Bob and John, we are requesting a total of $36,000 which could be pledged over a three or five year period. This is a prorated amount based on the City's population. A three year pledge would amount to $12000 per year and a five year pledge would amount to $7200 per year. We hope you share in our belief that this is an important project that will benefit the residents of Elk River and the residents of Sherburne County. Clear Lake and Livonia Townships have shown their support through a $5000 and a $3000 pledge, respectively. We realize that such a request requires some deliberation and also that the City must consider such requests in its budget. Either Bob or John will be contacting you shortly to answer any questions you may have and to find out what next steps are necessary to help the City make its determination. We thank you for your past support and are hopeful for your support in building the heritage center. Sincerely, Kurt Kragness Executive Director General Fund Library Dam Loan Development Fund Matching Grants Surface Water Management 1994 Storm Sewer Bonds City Special Assessments 1989 Fire Equipment Equipment Certificates of Indebtedness TOTAL Gross Levy Comparison Increase/(Decrease) . 1997_ 1998 -_Amount Percent $ 2,939,800 $ 3,206,538 $266,738 9.07% 54,950 54,950 32,572 32,572 - 125,000 125,000 - . 58,432 58,432 53,605 51,473 (2,132) -3.98% 115,495 117,627 2,132 1.85% 33,577 24,682 (8,895) -26.49% 68,586 70,424 1,838 2.68% 120,970 136,230 15,260 12.61% ~77,928 333,373 g.41% 333234 0.113217471 8/22J97:MISC.XLS U I I !!!!!!!!! !![!! City of Elk ver O C cc- o S INFORMATION ! ! _ I il