8.1. SR 12-03-2012 REQUEST FOR ACTION
River •
TO ITEM NUMBER
Mayor and City Council 8.1
AGENDA SECTION MEETING DATE PREPARED BY
General Business December 3,2012 Cal Portner, City Administrator
ITEM DESCRIPTION REVIEWED By
Resolution Accepting Councilmember Resignation and
Declaring a Vacancy REVIEWED BY
ACTION REQUESTED
1. Approve the attached resolution accepting Councilmember Zerwas'resignation and declaring a
vacancy effective January 7, 2013.
2. Provide staff direction regarding the appointment of a replacement.
BACKGROUND/DISCUSSION
At the November 6,2012,general election,Councilmember Nick Zerwas was elected to the Minnesota
House of Representatives.
Councilmember Zerwas has submitted his resignation effective January 7,2013. Because his resignation
leaves less than two years remaining on his term, state statute provides for the City Council to appoint a
successor.
Staff seeks direction on the appointment process as well as the direction to advertise for persons
interested in being appointed.
As discussed at the November work session,if the Council chooses to hold a special election,an
ordinance must be approved specifying the conditions in which a special election will be held.
FINANCIAL IMPACT
N/A
ATTACHMENTS
• Resignation Letter
• Resolution
Action Motion by Second by Vote
Follow Up
rr EREn ur
N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-03-2012\Council Vacancy Staff Report.docx NATURE
Cal,
One of the greatest honors I have ever known was to be elected at age 25 to represent
Ward 1 on the Elk River City Council. To be able to serve as a Councilmember for the
same community my father served as Police Chief for 23 years has truly been a
humbling, but rewarding experience.
Being elected to serve in the Minnesota House of Representatives this fall for House
District 30A, is also a truly unbelievable honor. However,my election requires me to step
down from my position on the Elk River City Council. I will resign my City Council
position effective January 8th 2013, and my last City Council meeting will be January 7th
2013.
By resigning with less than two years left in my City Council term I am providing the
City of Elk River maximum flexibility in filling my position, and I would urge the
Councilmembers to avoid an expensive special election and fill the vacancy with an
appointment as allowed by Minnesota State Statute. I am providing notice now in order
for the city to move expeditiously in order to provide Ward 1 with representation as soon
after my resignation as possible.
On a final note, please pass along to every city staff member my sincerest thanks and
gratitude for their service and commitment to the city of Elk River. I have had the honor
and privilege of working with some of the most amazing professionals in public service,
and I am eternally grateful for everything they have taught me.
Sincerely,
Nick Zerwas
Elk River City Councilmember
RESOLUTION NO. 12-
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION ACCEPTING COUNCILMEMBER RESIGNATION AND
DECLARING A VACANCY
WHEREAS, the Elk River City Council has received the written resignation of Council
Member Nick Zerwas, effective on January 7, 2013.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ELK RIVER,
MINNESOTA, AS FOLLOWS:
1. The Council accepts Council Member Zerwas'resignation as described above.
2. The Council declares that a vacancy exists on the Council effective January 7,2013.
Passed and adopted by the City Council of the City of Elk River this 3rd day of December,2012.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City Clerk
N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-03-2012\Council Vacancy Staff Report.docx
. 1
12/04/2012
Pae&
f14.
2013 Budget and Tax Levy
City Council Meeting
December 3, 2012
Overview Elk
• Vision and Goals
• Summary of Budget Process
• Proposed Tax Levy
• Budget Overview
• General Fund
• Special Revenue
• Enterprise
• Public Comment
• Tax Levy&Budget approval
Vision and Goals Fi
fiivc
Our Vision-Abounding in natural beauty,Elk River is a
vibrant,historic river town that promotes an active lifestyle in an
innovative and involved community offering unlimited
opportunities.
Goals supporting the Vision
• Innovation
• Community Development
• Beautification
• Opportunities
• Strategic Planning(2013)
1
12/04/2012
Budget Process
rii.
It
May—December 2012
• Budget workpapers to Departments—May 9th
• Review long-term financial model—May 14th
• Department prepared budget requests and
goals for 2013—June 1st
• City Council Budget worksessions—10 total
• Adopt preliminary tax levy—September 4th
Budget Process
9 E( t
May—December 2012 +�
• County prepares proposed tax notices and
mails to property owners—Sept./Nov.
• Public Comment Meeting—December 3rd
• Adopt 2013 property tax levy and budgets
• Final levy certified to county by Dec.28,2012
Other Public Meetings E '
River
•Sherburne County—December 10th
•Elk River Area Schools—December 10th
2
12/04/2012
Taxes and Values
It is Ci
• Public Notices
• Determining Property Tax Amount
• Taxable Market Value
—Allocation
—Distribution
—Class rates
Public Notices E
Pr nperty Valuation Property Tax Notice Property Tan Statement
MARCH NOVEMBER MARCH
T F M A M J J A S O N D J F M
Year 1 year 2
Determining Property Tax ,.,k:
«f,t t
$1,634511,700
`°i° •,,,,,,•,,„ Total value of
all property
Prgerty
•
n•V"'•""'r w..•w n u.Total n rnei"$19,964,892
•""'r°,,,tr"a Actual value taxed
e �uG. •e.r:«n.:...
Itate
3
12/04/2012
Taxable Market Value ,
Property Class Pay 2012 Pay 2013 %Change
Residential 1,240,423,300 1,078,957,600 -13.02
Commercial 348,160,400 347,445,200 -0.21
Industrial 38,126,500 38,270,700 0.38
Utility 47,454,000 46,413,900 -2.19
Agricultural 37,528,400 38,394,800 2.31
Cabins 948,700 984,400 3.76
Apartments 56,055,000 59,477,100 6.10
Other 765 865 13.07
Railroad 2,463,300 2,682,600 8.90
Personal Property 17,412,900 18,055,900 3.69
TOTAL 1,788,573,265 1,630,683,065 -8.83
Source:Sherburne County Assessor
Market Value Allocation '
River
Agricultural Cabins Apartments Otherr Railroad Personal Property
Utility 2.<.94 G :1°` 3.6%!-PB%— t1.2% 1.1%
2.0%Industri l_�
23%
Residential
•
66.2%
Source'.Sherburne County Assessor -"'
Distribution E
Payable 2013-Distribution of Value Change
„w416 sc
and..3013 ese.rn ,/
Source:Sherburne County Assessor �!.II-� .1
4
12/04/2012
Other impacts
1�l,tl
Changes made to one area may have an
impact to another area
• Value changes
• Legislative
• Improvements
The city approves the tax levy amount,the distribution
and rate impacts are affected by changes in property
value,and legislated class rates.
Class Rates
liver
Type of Property NTC Class Rate
Residential Homestead
first$500,000 1.00%
over$500,000 1.25%
Commercial/Ind.
first$150,000 1.50%
over$150,000 2.00%
Rental Housing
four or more units 1.25%
Seasonal Residential
Recreational
first$500,000 1.00%
over$500,000 1.25%
For more class rates see ewe.revenue.state.mn.us
City Tax Levy
11
• Tax Levy Components
• Levy by Use
5
12/04/2012
Tax Levy Components ,
Levy 2012 2013 %Chg.
Components Levy Proposed Front 2012
General Fund $9,142,170 $9,303,135 1.76%
Library 63,100 63,100 0.00%
Surface Water Mgmt. 50,000 50,000 0.00%
Debt Service 592,041 643,497 8.69%
Tax Abatement 428,504 216_083 -49.51%
Total $10,275,815 $10,275,815 0.00%
Dollar Increase $0
7 ..�,f%
Tax Le b Use
vY y 1
Ero
Storm Water 0 topmlent_
U%library ` Debt
I% 6%
ce�eai woa
91%
t
General Fund Budget ,,�
RZ i f a t
• Revenues
• Expenditures
• 2013 Budget Changes
• Expenditure—Changes
• Cost of City Services
6
12/04/2012
Revenues
( �.
cl,Fl
2013
2012 Proposed Difference Percent
Budget Budget Change
General Taxes $ 9,212200 $ 9,387,150 $174,950 1.90%
License and Permits 412,650 558,400 145,750 35.32%
Intergov'I Revenue 542,450 545,600 3,150 0.58%
Charges For Services 650,350 687,000 36,650 5.64%
Fines and Forfeits 132,500 127,200 (5,300) -4.00%
Other Revenue 200,150 197,500 (2,650) -1.32%
Transfer In 1,161,600 1,234,150 72,550 6.25%
Fund Balance 366,150 99,950 (266,200)-72.70%
Total $12,678,050 $12,836,950 $158,900 1.25%
Revenues
Ll,F•t
Other Reserves
Finesse Rorie.
FO .\\ ]gy
$12,816,950¢ene,alFUn
% PProPmea
Transfer In
Charges for Senices\ 10%
Intergovernmental\
4%Ue
License&Peones
4%
Property Taxes
]3%
Fcx sa
Expenditures ,�k
Liver
BY type
2012 2013 Difference Percent
Budget Proposed Change
Budget
Personal Serves $ 9,036,750 $ 9,326,200 $ 289,450 3.20%
Supples 1,081,150 1,111,100 29,950 2.77%
Other Charges And Svcs 2,397,550 2,241,950 (155,600) -6.49%
Captal Outlay 122,100 112,900 (9,200) -7.53%
Operating Transfer Out 40,500 44,800 4,300 10.62%
Total $ 12,678,050 $ 12,836,950 $ 158,900 1.25%
•/ rr
CPI as of October n 2.62%
7
12/04/2012
2013 Budget Changes
1k ISv i;
• No new services
• Adjustments for inflation
• Staff Additions:
—PD Administrative Assistant(FT)
—IT Desktop Support(PT)
—CODD Planning Intern(PT)
—PR Intern(PT)
Expenditures - Changes ,d
By category
2013
2012 Proposed Percent
Budget Budget Difference Change
General Government $ 2,825,300 $ 3,014750 $ 189450 671%
Pi it Safety 5,782,450 5,754,500 (27,950) -0.48%
Pubic World 2,175050 2,242,000 66,850 107%
Cuture&Recreaton 1,854,650 1,780,900 (73,750) -3.98% ,.
Operating Transfer Out 40,500 44800 4300 10.62%
Total $ 15678,050 $ 12,836,950 0 158,900 1.25%
,
CPI as of October is 2.62%
Expenditures
4iys-r
Culture& _ _.Transfers Out
Recreation --- 0%
14% General
Government
Public Works 24%
17%
Public Safety
45%
8
12/04/2012
Cost of City Services
cllt•l
Per Month
based on population of 22,974
General Government $ 10.94
Public Safety 20.87
Public Works 8.13
Culture & Recreation 6.46
Other 0.16
Total $46.56
Tax Impacts
E .
ly,t
• City Tax Comparison
• Residential Tax Bill- Distribution
• Commercial Tax Bill - Distribution
• Tax Rate Comparison
• City Tax Estimates
City Tax Comparison ,,,
fl,,t.f
City Tax 2012
$1,200
$1,000
$800
$600
$400
$200
$- ,y
Source-LMC Value-8152.200 Home
9
12/04/2012
City Tax Comparison
Rt
City Tax 2012(Sherburne County Cities)
$1,200
$1,000
$800
$600
$400
$200
$-
5• E e
te
Source-LMC Value-$152.200 Home
xix.*
Property Tax Distribution
Rh er
Median Value Home
$152.200 Market Value
Estimated property tax bill$2,09308
School District
728 City of Elk River
31% 32%
Sherburne
County
Other 34%
3%
Property Tax Distribution „k
Commercial Property
$1,000 000 Market Value-estimated
Property Its bill$41$19 37
Other
2%
School District City of Elk River
728 24%
24%
State General Sherburne
Tax County
25% 25%
a ,
10
12/04/2012
Tax Capacity Rate i ik;
City,County,&School Comparison(estimates only)
Actual Proposed Revised
2012 2013 2013
City 47.588 51.497 50.05
EDA 1.505 1.485
HRA 1.369 1.294
Ref.(YMCA) 0.01363 0.01502
County 52.014 54.578
Rail 2.422 2.541
School 45.548 51.290
Ref. 0.173 0.174
TOTAL 150.446 162.685
•
City Tax Estimates
diver`
Preliminary Final w/o TIF 19&16
2011/12 2012/13 Dili % Diff %
Change Change
Residential $709.14 $662.55 ($46.59) (6.57%) ($65.33) (9.21%)
$152,200
Commercial $9,253.31 $9,913.17 $658.86 7.12% $378.39 4.09%
Industrial
$1M
Average Value Changes
Residential—11%Decrease
Commercial—1%Decrease
Other Funds ftk ,
• Special Revenue Funds
• Enterprise Funds
11
12/04/2012
Special Revenue Funds
Rivtl
Library $96,500
Ice Arena $990,000
Pinewood $233,300*
Landfill $131,950
Storm Sewer $254,700
Safety $35,000
•includes a transfer of$44,800 from General Fund
Enterprise Funds ,.
6 fiver
• Liquor
-Budgeted to transfer out$717,500
• Sanitary Sewer
-Proposed rate increase of 2%
• Garbage
—Proposed no rate change
Budget Summary ►`
�ifver
Total Exp.
Enterprise Revenues Expenditures Capital &Capital
Funds Outlay Outlay
Liquor Fund 6,527,000 6,400,750 15,000 6,415,750
Sewer Fund 2,196,400 2,757,200 611,500 3,368,700
Garbage 1,363,400 1,381,850 0 1,381,850
Fund
12
12/04/2012
Public Comment
Request public comment
E 1
River
Elk
River -
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