6.6. SR 11-03-1997,._ _.y of
iver
Item #6.6.
MEMORANDUM
TO:
FROM:
DATE:
Mayor & City Council
Pat Klaers, City Admi i~t°r
November 3, 1997
SUBJECT: 1998 Budget
At the October 27, 1997, City Council budget worksession, a consensus on the
proposed city tax rate was reached by the Council. Based on preliminary
county information on the growth of the city net tax capacity (NTC), the
Council agreed to an approximately 3 percent increase in the city tax rate.
This means that the city tax rate would increase from 24.683 to 25.423. The
Council understood that this rate change and percentage increase will be
adjusted based on final county NTC calculations. The decision of the City
Council on 10/27/97 means that the 1998 proposed budgeted tax revenues
will decrease by $149,650.
The Truth in Taxation notices for the December I public hearing which will
be sent out to all property owners will contain the tax figures as approved by
the City Council on September 8, 1997. This tax information will indicate
that the city's rate is proposed to increase by almost 8 percent and will not
show any of the changes as agreed upon by the Council on 10/27/97. The city
cannot stop this information from going out to the public, but we do hope to
inform everyone of the changes the City Council intends to make in tax
revenues through articles in the city newsletter and the Star News. In order
to make the changes more valid in everyone's eyes, it is appropriate for the
City Council to approve by motion, reducing the proposed general fund tax
revenues by $149,650 from the amount identified in the September 8, 1997,
tax levy resolution. As noted above, this motion will then have the city tax
rate increase by approximately 3 percent based on the preliminary NTC
information provided by the county.
The proposed adjustments in the 1998 budget due to the $149,650 decrease in
tax revenues are displayed in the information which is attached to this
memo.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
On October 27, 1997, the City Council discussed, and I believe agreed to, the
adoption of a policy which over the next four to five years gradually adds $.5
million to the city development fund. A policy on this movement of funds will
be presented on either 11/24/97 with the enterprise fund budgets or on
12/22/97 with the 1997 budget amendments.
At the October 27, 1997, meeting the Council discussed the advertisement for
the planning intern vacancy. The Council moved this item to the end of the
meeting and then, as time ran short, decided to not discuss this issue. It is
recommended that the City Council authorize the advertisement of this
planning intern vacancy and the Council can discuss whether or not it wishes
this position to be established on a more long term basis in the spring. Our
current planning intern, who has experience in landscape design, helped not
only the planning department but also has proved to be of assistance to the
economic development department. We intend to use the landscape design
expertise of the next intern in developing central business district plans, park
trail plans, library parking lot proposals, etc.
Recommendations
It is recommended that the City Council adopt a motion which authorizes a
$149,650 decrease in the general fund tax revenues based on the September
8, 1997, tax levy resolution and that the budget with this amendment be
presented at the December 1, 1997, Truth in Taxation public hearing.
It is recommended that the City Council authorize the advertisement of the
planning intern position.
\\elkriver\sys\shrdoc\council\98bdgt.doc
_ _,y of
River
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Administrator
November 3, 1997
Adjustments in the Budget Due to the
$149,650 Reduction in General Fund
Tax Revenues
Revenue Increases
Plan Check Fees
Planning/Zoning Fees
Fire Calls and Contracts
Building Permit Fees
Plumbing/Heating Permits
Liquor Store Transfers
Street Reserve Transfers
Total
+$10,000
+$ 3,000
+$ 6,000
+$16,000
+$ 2,000
+$10,000
+$ 5:000
$52,000
Revenue Increase
Use of cash flow reserves -
+$50.700
Expenditure Reductions
· Mayor & Council- No contribution to
CMIF and Historical Society- ($13,850)
· Move the street computer, equipment repair/maintenance, hoist, and park
mower capital outlay purchases to the equipment reserve category -
($13,600)
· Reduce the ice arena reserve - ($2,000)
· General reduction in most of the budgets in the supplies and other
charges categories- ($17,500)
Total $46,950
Grand Total
$149,650
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
SOURCE OF FUNDS
1995 1996 1997 1998
ACTUAL ACTUAL ADOPTED PROPOSED
GENERAL PROPERTY TAX
INTERGOVERNMENTAL REVENUES
CHARGES FOR SERVICES
FINES & FORFEITS
LICENSES & PERMITS
OTHER REVENUES
TRANSFERS
TOTAL
$1,801,547 $2,160,675 $2,441,150 $2,782,250
941,211 957,127 1,014,950 1,102,550
392,941 476,632 337,800 328,300
73,058 80,028 77,000 80,000
287,446 439,001 267,000 299,950
157,605 91,852 138,900 142,150
297,600 267,950 259,050 242,000
$3,951,408 $4,473,265 $4,535,850 $4,977,200
GENERAL PROPERTY TAX
Ad Valorem Tax
INTERGOVERNMENTAL REVENUES
Local Government Aid
HACA
Local Performance Aid
PERA Aid
Police Relief
Gravel Tax
Urban Street Maintenance
Cops Fast Grant
Police Training Reimbursement
CHARGES FOR SERVICES
GENERAL GOVERNMENT
Administrative Project Fees
Plan Check Fees
Planning & Zoning Fees
Sewer Inspection Fees
Miscellaneous Sales
Assessment Searches
PUBLIC SAFETY
School Liaison
Police Contract
Impound Fees
Fire Calls & Contracts
PUBLIC WORKS
Street Services
RECREATION
Recreation Fees
Softball League Fees
241,550
506,900
18,550
10,000
100,000
39,500
28,000
152,550
5,500
15,000
102,750
14,500
1,000
2,500
5,000
60,000
3,000
1,300
70,000
3,000
48,900
1,350
$2,782,250
1,102,550
328,300
10/20/97
SOURCE OF FUNDS
FINES & FORFEITS
Court Fines
LICENSES & PERMITS
PERMITS
Building Permits
Building Permit Surcharge
Plumbing & Heating Permits
Contractor License Surcharge
Parking Permits
LICENSES
Dog/Cat
Cigarette
Liquor
Amusement
Gas Fitters
Garbage Haulers
Mineral Extraction
Apartment Licenses
Other Business
OTHER REVENUE
Interest
Landfill Surcharge
Contribution-Municipal Utilities
Contribution-Guardian Angels
Refunds & Reimbursements
TRANSFERS
Liquor
Equip & Program Reserve
Street Reserve
Landfill
NSP/RDF Reserve
Sewer
Economic Development Authority
Housing & Redevelopment Authority
TOTAL
80,000
80,000
182,500
8OO
45,000
4,700
5OO
1,500
5OO
33,000
2,250
1,500
75O
10,800
9,150
7,000
299,95O
45,000
9,000
78,000
3,700
6,450
142,150
113,450
43,050
35,000
19,750
19,750
8,000
2,000
1,000
242,000
10/20/97
APPROPRIATIONS SUMMARY
1995 1996 1997
Actual Actual Adopted
1998
Proposed
10/20/97
MAYOR & COUNCIL
ADMINISTRATION & FINANCE
ECONOMIC DEVELOPMENT
ELECTIONS
LEGAL
ENGINEERING
BUILDING & ZONING
ENERGY CITY
PLANNING
PLANNING COMMISSION
DATA PROCESSING
GOVERNMENT BUILDINGS
POLICE
POLICE RESERVE
FIRE
EMERGENCY PREPAREDNESS
STREETS
EQUIPMENT REPAIR & MAINT.
SNOW REMOVAL
STREET LIGHTING
SHADE TREE
PARKS
RECREATION
SR. CITIZEN PROGRAMS
CONTINGENCY
TOTAL
$ 69,227 $ 78,110$ 76,800
431,966 482,735 497,450
35,512 39,677 31,550
7,500 19,613 18,500
52,414 66,919 54,000
33,440 37,786 34,000
257,139 292,886 313,750
- 5,847 30,200
129,082 139,818 165,700
6,211 5,341 6,800
21,724 19,539 36,050
99,551 111,610 104,000
1,378,641 1,514,062 1,623,900
26,570 18,177 24,600
253,318 267,682 278,750
8,383 11,304 13,350
404,153 488,664 462,150
94,898 77,207 99,900
66,962 107,834 97,850
1,085 1,203 1,500
6,188 5,368 11,600
122,663 110,476 140,550
134,068 157,439 166,000
35,494 37,676 39,300
14,555 13,260 207,600
$ 93,750
534,450
33,750
22,450
63,600
43,OOO
348,750
20,200
175,600
7,300
40,700
166,500
1,794,800
28,350
274,200
14,800
495,000
120,250
123,250
1,500
11,600
159,100
193,750
43,900
166,650
_ Hoe
_
$3,690,744 $4,110,233 $4,535,850