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5.1. SR 12-13-2004 Item 5.1. MEMORANDUM TO: Mayor and City Council FROM: Pat Klaers, City Adminis~t:I~ December 13, 2004 DATE: SUBJECT: Consider Resolution Setting the Final Tax Levy for Taxes Payable 2005 and Consider Motion Adopting 2005 Budget At this December 13, 2004 meeting, tbe City Council is requested to approve tbe proposed 2005 tax levy resolution, tbe proposed 2005 general fund budget, and tbe special revenue funds. The City Council reviewed tbe proposed 2005 budget at a number of City Council meetings in August and September. On September 13, 2004 tbe City Council approved a resolution tbat called for a 2005 proposed maximum levy of $7,623,985. This is a $1,059,182 or 16.13% increase over tbe adopted 2004 tax levy amount. This percentage increase is identical to tbe estimated increase in tbe city Net Tax Capacity (NTC) for 2005. On December 6, 2004 tbe City Council held its trutb-in-taxation public hearing. The county sent out notice of this public hearing to all property owners in tbe city. A notice was also published in tbe December 1, 2004, Elk River Star News. This public hearing is required by state law to receive public input on tbe proposed city tax levy and budget. The city is required to present some specific tax levy and budget information to tbe public at this public hearing. At this December 6, 2004 public hearing tbe proposed 2005 tax levy and municipal budget were reviewed. One property owner was in attendance at this public hearing. However, this property owner left inunediately following tbe Mayor's opening comments regarding tbe fact tbat individual property values would not be evaluated or discussed at this public hearing. Mayor Klinzing furtber noted tbat individual property values would be discussed at the Board of Review in the spring of 2005. s: \ Council\Pat\Budget\2005\ApproveBudget&FinalTa.\:Levy.doc Tax levy and budget notes of interest include tbe following: . The city tax rate, which is approximately one-third of the total tax bill, is not changing. The 2004 tax rate was 43.78 and this is the projected rate for 2005. (The 2003 tax rate was 44.61.) The general fund budget is projected in the amount of $9,284,100. This is a $1,408,700 or 17.89% increase. Taxes are the largest revenue source in tbe general fund. Approximately 65% of tbe general fund revenues come from taxes. Taxes in the general fund are projected at $6,051,800 for 2005. This is an $869,550 or 16.78% increase. There are 7 new full-time positions and two part-time positions included in the 2005 budget. Budget includes a 3% wage increase for non-union city employees. The largest expenditure type is personal services. The personal services total in tbe general fund is $6,928,150 or 75% of the total general fund. Expenditures for personal services are increasing $1,030,150 or 17.5% in 2005. Public Safety (police, fire, emergency preparedness, building/environmental) is tbe largest expenditure category at 47%. . . . . . . It is recommended tbat the Council approve tbe identical resolution for taxes payable in 2005 as what was approved on September 13, 2004 for tbe proposed maximum tax levy resolution. Attachments . 2005 General Fund Revenue Pages 2005 General Fund Expenditure Pages 2005 Special Revenue Funds Summary Page 2005 Tax Levy Resolution . . . Recommendation It is recommended tbat tbe City Council approve Resolution 04-_ authorizing tbe property tax levy for collection in 2005. It is recommended tbat tbe City Council approve a motion adopting the 2005 municipal general fund budget and tbe special revenue funds. s: \ Council\Pat\Budget\200S \ApproveBudgct&FinalTa..,<Levy.doc SOURCE OF FUNDS 2002 2003 2004 2005 ACTUAL ACTUAL ADOPTED PROPOSED GENERAL TAX $ 3,937,875 $ 4,415,026 $ 5,182,250 $ 6,051,800 INTERGOVERNMENTAL REVENUES 1,533,367 814,285 500,650 963,750 CHARGES FOR SERVICES 648,113 896,233 633,850 700,850 FINES & FORFEITS 134,840 177,242 170,000 154,000 LICENSES & PERMITS 715,853 1,143,614 716,000 871,000 OTHER REVENUES 100,775 55,006 81,700 51,700 TRANSFERS 347,000 341,000 473,950 491,000 USE OF RESERVES 117,000 TOTAL $ 7,417,823 $ 7,842,406 $ 7,875,400 $ 9,284,100 GENERAL TAX Ad Valorem Tax Gravel Tax ................................................. . . . . . . . . . . . . . . . .. ................ .............. INTERGOVERNMENTAL REVENUES local Government Aid PERA Aid Police Relief Urban Street Maintenance Police Training Reimbursement Other Grants (Safe & Sober) ................................................. ................................................. .....,........................................... ................................................. .................. .............................. ................................................ CHARGES FOR SERVICES GENERAL GOVERNMENT Administrative Project Fees Planning & Zoning Fees Plan Check Fees Contractor License Surcharge Sewer Inspection Fees Miscellaneous Sales Assessment Searches ................................................. ................................................. ................................................. .......................................... ................................................ ................................................ ................................................. PUBLIC SAFETY School Liaison Police Contracts/Fees lockout Fees Impound Fees Fire Calls & Contracts ................................................. ................................................. ....................................... .............................. ........................ PUBLIC WORKS Street Services ........................... ..................... RECREATION Recreation Fees Concessions Bulilding Rent ParklFacility Fees ................................................. ................................................ . . . . . . . . . . . . . . . . . . . . .. .......................... ............... ....................... $ 5,997,800 54,000 $ 6,051,800 686,800 11,500 146,000 36,000 10,500 72,950 963,750 25,000 350,700 2,400 12,000 1,500 2,000 20,000 6,000 12,000 2,500 78,850 25,000 115,000 30,000 2,400 15,500 700,850 FINES & FORFEITS Court Fines Parking Fines LICENSES & PERMITS PERMITS Building Permits Building Permit Surcharge Plumbing & Heating Permits Other Non-Business LICENSES Animal Cigarette Liquor Amusement Garbage Haulers Mineral Extraction Apartment Licenses Other Business OTHER REVENUE Interest Contribution-Guardian Angels Miscellaneous Revenue TRANSFERS Liquor Landfill Street Reserve NSP/RDF Reserve Drug Forfeiture Sewer Utilities Economic Development Authority Housing & Redevelopment Authority TOTAL REVENUES SOURCE OF FUNDS ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ..............................................,.. ...................................... ................................................. ................................................. ...............................,. ,.............. ................................................. ................................................. ........................................ ................................................. ............................... ................. ................................................. ................................................. ................................................. ................................................. ................................................ ................................................. ................................................. ................................................. ................................................. ................................................. 150,000 4,000 625,300 1,400 138,800 4,000 1,500 3,000 50,250 1,400 850 13,500 15,000 16,000 45,000 3,700 3,000 195,000 40,000 45,000 39,500 3,900 15,000 126,100 17,000 9,500 154,000 871,000 51,700 491,000 $ 9,284,100 APPROPRIATIONS SUMMARY 2002 2003 2004 2005 ACTUAL ACTUAL ADOPTED PROPOSED MAYOR & COUNCIL $ 162,513 $ 175,464 $ 175,850 $ 195,150 CABLE TV 64,184 56,448 64,900 117,850 ADMINISTRATION 328,441 327,424 379,900 408,900 ELECTIONS 44,091 36,200 1,450 FINANCE 403,576 324,414 370,000 464,500 INFORMATION TECHNOLOGY 96,521 160,750 200,200 LEGAL 197,096 186,106 206,450 219,400 PLANNING 327,435 310,381 300,400 374,050 CITY HALL 136,472 99,659 141,300 180,200 CONTINGENCY 27,527 5,463 75,000 100,000 POLICE 2,508,214 2,532,829 2,712,200 3,081,000 FIRE 376,485 402,800 414,900 523,950 EMERGENCY MANAGEMENT 25,729 24,352 23,150 23,900 BUILDING & ENVIRONMENTAL 546,460 566,158 557,850 710,750 STREETS 764,757 721,711 757,850 794,650 SNOW REMOVAL 95,090 105,573 165,800 250,350 EQUIPMENT SERVICES 254,462 272,663 266,350 278,600 ENGINEERING 134,709 88,266 75,000 105,000 PARK MAINTENANCE 288,978 325,625 322,400 390,000 RECREATION 372,086 400,977 473,500 600,950 SR. CITIZEN PROGRAMS 81,950 81,315 87,100 96,450 ECONOMIC DEVELOPMENT 21,134 ENERGY CITY 8,870 12,255 16,950 18,100 TRANSFERS 119,154 193,330 91,600 148,700 TOTAL $ 7,289,413 $ 7,309,734 $ 7,875,400 $ 9,284,100 12/2/2004 , , '" 0 '" '" 0 '" '" 0 '" ,0 <f' <f' '" 0' '" 0 '" '" on on 0 '" 0 '" 0 '" '" m on 0 N ... on '" ~, 0 ... 0 ... ... .. .,; 0 .; .; .; 0 - '" ,c- O '" .. on ... ... ~ '" '" ... ... N " N N .. ~ ~ N ~ on, 15 I- 2;; "Q.'; . , uO .., . c..uirn o " . -c > '" oCt ~ fti ;g~i3 ~ 0 II(! - . . . o " 0_ ~ ~ . & 0." . m o '" . E E ~~ > oc !!: ~E w:S '0 ~ Z'~ 0~ o , "- .. ffi o & '" -c . ~ iii III 0."& ~ b) E' c.. ..~ :g~u ~ol(l ~ ~;f!. <f' 0 '" '" 0 0 '" 0 '" 0 ~ '" 0 '" Q Q '" Q Q <f' <f' <f' on '" '" '" '" on 0 on '" '" '" - '" ... ... "!. N 0 on '" '" '" N .,; .. .. N ,.; '" .; '" '" 0 on m ... - N '" on '" 0 '" 0 0 '" 0 '" 0 on '" on on N ... N .; ,.; .; .. 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" I ~ o " i5 , ~ w . o 00 ~~ ~; 'C C , "- ro ;;; c w w c:J CD ~ ro U) (]) o m u i- u .f 'OE'O "E"E"E w w , u u 0 Iii Ii> E Q.Q.<( SPECIAL REVENUE FUNDS Library Ice Arena Equipment Certificates Equipment Reserve Sanitary Landfill Safety Storm Sewer 2005 Proposed $ 69,000 705,500 345,000 199,200 98,900 26,500 175,000 S:\Council\Pat\Budget\Special Revenue Fund".doc RESOLUTION 04 - A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION AUTHORIZING THE PROPERTY TAX LEVY FOR COLLECTION IN 2005 WHEREAS, the Elk River City Council has reviewed the City's anticipated revenues and expenditures for all funds in 2005; 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 2005: General Fund Street Replacement Library Surface Water Management City Special Assessments 1994 Storm Sewer Bonds 2003 Improvement Bonds 2005 Certificate of Indebtedness 2004 Certificate of Indebtedness 2003 Certificate of Indebtedness Public Safety Lease Revenue Bonds Economic Development Tax Abatement TOTAL illY $5,997,795 150,000 69,000 175,000 23,888 116,994 131,600 86,000 104,733 126,391 638,589 3,995 $ 7,623,985 Passed and adopted by the City Council of the City of Elk River this 13th day of December, 2004. Stephanie Klinzing, Mayor ATTEST: Joan Schmidt, City Clerk