4.6. & 4.7. SR 12-15-2003PIEMORANDUI !
Item 4.6. 4.7
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Pat Klaers, City Administrator
December 15, 2003
Consider Resolution Setting the Final Tax Levy for Taxes Payable
2004 and Consider Motion Adopting 2004 Budget
At this December 15, 2003 meeting the City Council is requested to approve the proposed 2004 tax
levy resolution, the proposed 2004 general fund budget, and the special revenue funds.
The City Council reviewed the proposed 2004 budget at a number of City Council meetings in
August and September. On September 8, 2003, the City Council approved a resolution that called
for the 2004 proposed maximum levy of $6,564,803. This is a $584,642 or 8.9% increase over the
adopted 2003 tax levy amount.
On December 8, 2003, the City Council held its truth in taxation public hearing. This public hearing
is required by state law to receive public input on the proposed city tax levy and budget. The county
sent out notice of this public hearing to all property owners in the city. A notice was also published
in the December 3, 2003 Elk River Star News.
At this December 8, 2003 public hearing the proposed 2004 tax levy and the proposed 2004 budget
were reviewed and discussed. At this public hearing one property owner addressed the City Council
with a question about use of the fund balance in order to balance the 2004 operating budget.
Tax levy and budget notes of interest include the following:
· The proposed general fund budget is $7,875,400. This is an 8.65% increase in
expenditures from the amended (in June) 2003 budget.
· The general fund budget includes two additional positions (for Information
Technology support and Building maintenance) and a Park and Recreation
Director to be hired mid-year.
· The budget includes 3% wage increases for city employees.
· The equipment and vehicle capital ouday items for 2004 are not in the
general fund but are located in the equipment certificate and equipment
reserves special revenue funds.
· The general fund budget is using $117,000 of fund balance monies in order
to balance the 2004 operating budget.
· The September 8, 2003 proposed maximum levy resolution is being
recommended for approval on December 15, 2003 for taxes payable in 2004.
The 2003 city tax rate is 44.614. Based on the proposed tax levy, the 2004 tax rate is estimated at
43.731. This is a 2% decrease in the city tax rate. This decrease is what a property owner will see for
their city taxes i__f their property value did not increase; however, this is not likely to be the case for
most property owners in 2004. According to Sherburne County information that was provided to
the city in September, the city net tax capacity (NTC) increased by 12% for 2004. The city wide
increase in the NTC is the reason why the city tax levy can increase substantially and yet the city tax
rate decrease.
Attachments
· 2003 general fund revenue pages
· 2003 general fund expenditure summary page
· special revenue funds summary page
· 2004 tax levy resolution
RecommeNdatioN
It is recommended that the City Council approve resolution 03-__ authorizing the 2003 proposed
tax levy for collection in 2004.
It is recommended that the City Council approve a motion adopting the 2004 municipal general
fund budget and the special revenue funds.
BLrDGET WORKSHEET
2004 Revenue Surmmary Date: 12/12/03
CITY OF ELK RIVER Time: ll:16am
Page: 1
Prior ................. Current Year ......................
Year Original Amended Actual Thru Estimated
Month: 12/12/03 Actual Budget Budget December Total Requested Recommended Adopted
Fund: 101 GENERAL FUND .....................................................
Revenues
TAX General property taxes
3111 Current Ad Valorem Taxes 3,876,039 4,588,800 4,588,800 4,160,566
3112 Delinquent Ad Valorem Taxes 51,304 0 0 46,567
3121 Gravel Tax 54,377 54,000 54,000 50,673
3131 Penalties/Interest 9,061 0 0 8,815
3132 Tax Forfeited Land Sale 1,471 0 0 0
General property taxes
LIC Licenses & peri, its
3211 Liquor License 40,915 53,450 53,450 50,008
3212 Amusement License 1,530 1,400 1,400 1,185
3213 Cigarette License 3,175 3,000 3,000 2,744
3214 Apartment License 15,840 13,500 13,500 17,340
3215 Gas Fitters License 4,725 3,000 3,000 2,905
3216 Mining License 13,596 13,500 13,500 14,014
3217 Garbage Hauler License 540 850 850 1,620
3218 Other Business License/PerTNit 25,251 15,000 15,000 18,370
3231 Building Permit 494,235 419,550 419,550 784,930
3232 Plumbing/Heating Permit 110,087 90,000 90,000 173,030
3233 Pe~it Surcharge 1,688 1,200 1,200 15,027
3234 Electric Permit 250 0 0 243
3235 Animal License 1,630 1,500 1,500 2,017
3236 Parking Permit 248 0 0 148
3237 Other Non-Business Lic/Permit 2,143 6,000 6,000 8,942
Licenses & permits
GOVT Intergovernmental revenue
3311 COPS Grant 19,011 0 0
3320 Low Income Housing Aid 9,893 0 0
3321 Local Government Aid 937,155 937,150 293,000
3322 MV Credit 297,127 0 0
3323 Local Performance Aid 0 0 0
3324PERA Aid 11,514 11,500 11,500 5,757
3325Police 2% Aid 139,972 132,000 132,000 146,106
3326Police Training Reimb 11,030 10,500 10,500 10,599
3327State-Aid Street Maint 35,025 33,350 33,350 35,970
3329State Crime Prevention Grant 11,113 9,750 9,750 4,069
3330Other State Grants 4,150 0 0 10,000
3341County Grant 3,000 0 0 2,576
3342Other Local Grants 0 0 0 0
Intergovernmental revenue
CHGS Charges for services
3411 Admin Project Fees 0 25,000 25,000
3412 Planning & Zoning Fees 19,705 20,000 20,000
3413 Plan Check Fee 284,069 252,300 252,300
3415 Special Assessment Search 2,400 1,800 1,800
3416 Maps/Ordinances 826 2,500 2,500
3417 Copies 2,627 2,000 2,000
5,128,250 5,128,250
54,000 54,000
3,992,252 4,642,800 4,642,800 4,266,621 5,182,250 5,182,250
52,000 52,000
1,400 1,400
3,000 3,000
15,000 15,000
3,000 3,000
12,500 13,500
850 850
16,000 16,000
444,800 494,250
99,100 110,100
1,400 1,400
1,500 1,500
4,000 4,000
715,853 621,950 621,950 1,092,523 654,550 716,000
1,155
........................................................
8,777
146,562 293,150 293,150
148,010
0
11,500 11,500
140,000 140,000
10,500 10,500
35,000 35,000
10,500
1,478,990 1,134,250 490,100 519,581 490,150 500,650
0
31,156 20,000 20,000
437,946 255,650 284,050
3,270 2,000 2,000
283 500
2,059 2,000 2,500
BURET WORKSHEET
2004 Revenue Sun%mary Date: 12/12/03
CITY OF ELK RIVER Time: ll:16am
Page: 2
Prior ................. Current Year ......................
Year Original Amended Actual Thru Estimated
Month: 12/12/03 Actual Budget Budget December Total Requested Recommended Adopted
Fund: 101 GENEP~AL FLTN-D
Revenues
CHGS Charges for services
3418 Other General Govt Services
3430 Lockout Fees
3431 Police Services
3432 School Liaison
3433 Mobile Connection Fees
3434 Animal Impound Fee
3435 Vehicle Impound
3436 Fire Contracts
3437 Fire Calls
3451 Street Services
3461 Recreation Fees
3467 Concessions
3472 Park Use Fee
3474 Facility Use Fee
3475 Building Rent
3483 Sewer Inspection Fee
3484 Contractor License Check
Charges for services
FINE Fines & forfeits
3510 Court Fines
3511 Parking Fines
Fines & forfeits
SA Special assessments
3610 Special Assmts-County
Special assessments
OREV Other revenue
3621 Interest Income
3622 Vending Machines
3623 Solid Waste Surcharge
3625 Refunds & Reimbursements
3626 Contributions
3628 Landfill Host Fee
3629 Miscellaneous Revenue
Other revenue
TRIN Transfers in
3921 Transfers
3925 Transfer-Landfill
3926 Transfer-Capital Outlay Reserv
3928 Transfer-Street Reserve
3929 Transfer-NSP/RDF Reserve
3930 Transfer-Development
3931 Transfer-Drug Forfeiture
3942 Transfer-WWTS
3943 Transfer-Liquor
3945 Transfer-Utilities
2,041 0 0
1,400 20,000 20,000
4,637 4,000 4,000 3,137
43,000 21,500 21,500 64,500
2,400 0 0 3,000
2,800 2,500 2,500 2,358
30 0 0 183
81,591 79,000 79,000 125,478
11,200 7,000 7,000 2,675
24,085 30,000 30,000 22,687
101,617 95,000 97,500 101,683
36,869 52,000 52,000 23,098
2,090 2,500 2,500 5,239
7,428 15,000 15,000 7,238
4,200 3,600 3,600 2,800
10,713 7,000 7,000 18,961
2,385 2,000 2,000 3,105
35
12,385 16,000 16,000
4,000 4,000
21,500 21,500
3,000 3,000
2,500 2,500
75,000 80,000
5,000 5,000
25,000 25,000
100,000 110,000
30,000 30,000
4,000 5,500
8,000 8,000
2,400 2,400
10,000 10,000
2,400 2,400
648,113 644,700 647,200 873 , 276 588 , 950 633,850
130,025 150,000 150,000 150,452 150,000 165,000
4,815 6,000 6,000 3,600 5,000 5,000
134,840 156,000 156,000 154,052 155,000 170,000
0 0 0 403
........................................................
0 0 0 403
76,714 90,000 90,000 14,873
37 0 0 74
9,000 9,000 9,000 9,000
19 1,500 1,500 255
2,700 3,700 3,700 5,200
0 0 0 0
12,305 3,000 3,000 3,552
75,000 75,000
3,700 3,700
290,000
3,000 3,000
100,775 107,200 107,200 32,954 371,700 81,700
20,000 0 0
28,000 30,000 30,000
25,000 0 0 0
0 45,000 45,000 0
39,500 39,500 39,500 39,500
0 0 0 0
0 0 0 0
10,000 10,000 15,000 15,000
120,000 145,000 145,000 145,000
100,000 105,000 105,000 115,000
18,000 18,000
45,000 45,000
39,500 39,500
15,000 15,000
145,000 195,000
105,000 105,000
BL~DGET WORKSHEET
2004 Revenue Su~m~ary Date: 12/12/03
Time: ll:16am
CITY OF ELK RIVER Page: 3
Prior ................. Current Year ......................
Year Original Amended Actual Thru Estimated
Month: 12/12/03 Actual Budget Budget December Total Requested Recommended Adopted
Fund: 101 GENERAL FUND
Revenues
TRIN Transfers in
3948 Transfer-EDA
3949 Transfer-HRA
Transfers in
Total Revenues
GENEP~AL FUND
Grand Total
3,000 5,000 5,000 5,000 22,950 22,950
1,500 1,500 1,500 1,500 3,500 3,500
347,000 381,000 386,000 321,000 423,950 473,950
7,417,823 7,687,900 7,051,250 7,260,410 7,866,550 7,758,400
7,417,823 7,687,900 7,051,250 7,260,410 7,866,550 7,758,400
7,417,823 7,687,900 7,051,250 7,260,410 0 7,866,550 7,758,400 0
APPROPRIATIONS SUMMARY
2001 2002 2003 2004 '
ACTUAL ACTUAL AMENDED PROPOSED
$ 153,458 $ 162,513 $ 170,200 $ 175,850
53,916 64,184 59,850 64,900
322,966 328,441 346,700 379,900
10,680 44,091 - 36,200
325,016 403,576 344,050 370,000
- 97,500 160,750
54,695 197,096 206,200 206,450
241,991 327,435 284,250 300,400
146,130 136,472 109,850 141,300
140,882 27,527 75,000 75,000
2,441,444 2,508,214 2,527,350 2,712,200
361,092 376,485 397,800 414,900
19,183 25,729 23,450 23,150
515,174 546,460 523,300 557,850
776,801 764,757 717,100 757,850
113,055 95,090 152,050 165,800
205,239 254,462 265,450 266,350
177,816 134,709 75,000 75,000
289,342 288,978 276,300 322,400
236,303 372,086 386,750 473,500
68,297 81,950 80,200 87,100
19,183 21,134 -
11,386 8,870 16,850 16,950
197,570 119,154 113,200 91,600
MAYOR & COUNCIL
CABLE TV
ADMINISTRATION
ELECTIONS
FINANCE
INFORMATION TECHNOLOGY
LEGAL
PLANNING
GOVERNMENT BUILDINGS
CONTINGENCY
POLICE
FIRE
EMERGENCY PREPAREDNESS
BUILDING & ENVIRONMENTAL
STREETS
SNOW REMOVAL
EQUIPMENT SERVICES
ENGINEERING
PARKS
RECREATION
SR. CITIZEN PROGRAMS
ECONOMIC DEVELOPMENT
ENERGY CITY
TRANSFERS
TOTAL
$ 6,881,619 $ 7,289,413 $ 7,248,400 $ 7,875,400
12/4/2003
SPECIAL REVENUE FUNDS
2004
Proposed
Library
Ice Arena
Equipment Certificates
Equipment Reserve
Sanitary Landfill
Safety
Storm Sewer
$ 69,000
679,850
331,000
108,800
67,900
18,650
291,250
S:~Council~Pat~Budget~Special Revenue Funds.doc
RESOLUTION 03 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING THE PROPERTY TAX LEVY
FOR COLLECTION IN 2004
WHEREAS, the Elk River City Council has reviewed the City's anticipated
revenues and expenditures for all funds in 2004; and,
WHEREAS,
revenues from sources other than property taxes are not sufficient
to meet anticipated expenditures of all funds; and,
WHEREAS,
the Elk River City Council has held a public hearing and received
public input on the tax levy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that
the following amounts be levied as property taxes payable in 2004.
General Fund
Library
Surface Water Management
City Special Assessments
1994 Storm Sewer Bonds
2003 Improvement Bonds
2004 Certificate of Indebtedness
2003 Certificate of Indebtedness
2000 Certificate of Indebtedness
PERA Employer Rate Increase
Public Safety Lease Revenue Bonds
Economic Development Tax Abatement
TOTAL
Levy
$5,117,598
69,000
175,000
25,164
116,230
100,000
140,000
129,203
38,826
11,675
638,263
3,844
$6,564,803
Passed and adopted by the City Council of the City of Elk River this
day of December, 2003.
ATTEST:
Stephanie Klinzing, Mayor
Joan Schmidt, City Clerk