7.1. SR 12-04-2017Request for Action
To
Item Number
Mayor and City Council
7.1
Agenda Section
Meeting Date
Prepared by
Public Hearin
December 4, 2017
Lori Ziemer, Finance Director
Item Description
Reviewed by
2018 Budget and Tax Levy
Cal Portner, City Administrator
Reviewed by
Action Requested
Adopt, by motion, the resolution authorizing the property tax levy for collection in 2018.
Approve, by motion, the 2018 General, Special Revenue, and Enterprise Fund budgets.
Background/Discussion
The budgeting process began in May with 2018 department goals and budget requests. The Council
reviewed in detail each department operating budget and the property tax levy. In September, the
Council approved the preliminary (maximum) tax levy that was used to calculate the proposed property
tax notice that was mailed to each property owner in November. The final 2018 levy may be less than the
preliminary levy, but cannot be more.
Tax Lew
On September 18, the City Council adopted the preliminary tax levy of $11,123,030, which is an increase
of 5.3% over 2017. Since then, staff has made reductions to the budget and is recommending a proposed
final levy of $11,063,830, which is an increase of 4.7% and down slightly from the preliminary levy
increase of 5.3%.
The county estimates the city's Net Tax Capacity (NTC) values increasing by 5.3%, attributable to new
growth and market value increases. The final NTC may change slightly as the county continues to update
property values before calculating taxes in early 2018. The tax capacity rate based on the preliminary levy
is 46.190%, which is basically unchanged from last year's rate of 46.193%. With the approval of the
revised levy, the tax capacity rate will be adjusted downward to approximately 45.925%.
The city accounts for about one-third of a homeowners total property tax bill. The remainder is
attributed to the school district (27%), the county (36%), and other jurisdictions (3%). For businesses,
the city's share is about 25% of the total.
The majority of the property tax levy (95%) is used to fund city services such as police, fire, street
maintenance, parks and recreation, and general government. The remaining 5% pays for debt service, tax
abatement and library operations.
General Fund Budget
The Elk River Vision
A PehoMing community �a ith revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity P 01 W I R e
INAWRE1
The 2018 General Fund budget is at $15,229,550, which is a 5.9% increase over 2017. The greatest
portion of the city's General Fund operating budget is dedicated to public safety programs and services.
General government, public works, and culture and recreation make up the balance of the General Fund
budget. Due to the fact that city government is primarily a service industry, 76% of the operating budget
is personal service expenditures.
Financial Impact
Summary of 2018 Budgets
Below is a summary of the proposed budgets Council has reviewed and to be approved:
General Fund $15,229,550
Special Revenue Funds:
Library $ 118,850
Ice Arena $ 768,850
Enterprise Funds:
Sewer
Garbage
Liquor
Storm Sewer
Attachments
Revenues Expenditures
$2,702,000 $2,283,600
$1,612,500 $1,645,200
$7,138,000 $6,810,100
$ 500,000 $ 308,150
Tax levy resolution
Tax levy breakout
General Fund summary
The Elk River Vision
Depreciation Capit
$1,425,000 $366,250
$ 125,000 $ -
$ 448,000 $ -
Net Effect
$(1,372,850)
$ (32,700)
$ 202,900
$ (256,150)
A PehoMing community �a itb revolutionary and spirited resourcefulness, exceptional P 01 W E H E 8 6 T
service, and community engagement that encourages and inspires prosperity INAMIRE1
City of
Elk
River
Resolution 17-
A Resolution of the City of Elk River Authorizing the Proposed Property Tax
Levy for Collection in 2018
WHEREAS, the Elk River City Council has reviewed the City's anticipated expenditures
for all funds in 2018; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2018; and,
WHEREAS, revenues from sources other than property taxes are not sufficient to meet
anticipated expenditures of all funds; and,
WHEREAS, debt levies have been adjusted or cancelled based on revenue collections and
projections.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The following amounts are to be levied as property taxes
payable in 2018:
Levy —
General Fund $ 10,497,800
Library 54,000
2010A G.O. Capital Improvement Plan Bonds 369,500
Economic Development Tax Abatement 142,530
TOTAL $ 11.063.830
Passed and adopted this 41h day of December, 2017.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
City of Elk River
Levied
Preliminary
Final
Tax Levy
Pay 2017
Pay 2018
Pay 2018
General Fund
$9,969,250
$10,557,000
$10,497,800
Library
53,650
54,000
54,000
10,022,900
10,611,000
10,551,800
General Property Tax Levy
Special Levies:
2010 GO CIP Bonds
368,030
369,500
369,500
Economic Development Tax Abatement
172,840
142,530
142,530
10,563,770
11,123,030
11,063,830
Total Levy
General Fund Change from Previous Year
587,750
528,550
Percentage Change from Previous Year
5.9%
5.3%
Total Dollar Change from Previous Year
559,260
500,060
5.3%1
4.7%
Change
General Fund Revenues:
Property taxes
Othertaxes
Licenses & Permits
Intergovernmental Revenues
Charges for Services
Fines
Other Revenues
Transfers In
Total General Revenues
General Fund Expenditures
General Government:
Mayor & Council
Communications
Administrative Services
Human Resources
Elections
Finance
Information Technology
Legal
Community Development
Planning
Building Maintenance
Energy City
Contingency
Total General Government
Public Safety:
Police
Fire
Code Enforcement
Building Safety
Environmental
Total Public Safety
Public Works:
Street Maintenance
Snow Removal
Equipment Services
Engineering
Total Public Works
Culture & Recreation:
Parks Maintenance
Recreation
Sr. Citizen Programs
Total Culture & Recreation
Total General Fund Expenditures
CITY OF ELK RIVER
GENERAL FUND BUDGET
2017 2018 % of %
Budget Final Budget Budget Change
$9,969,250
$10,497,800
68.9% 5.3%
140,000
150,000
1.0% 7.1%
714,950
877,900
5.8% 22.8%
293,500
324,500
2.1% 10.6%
891,400
937,900
6.2% 5.2%
155,000
151,000
1.0% -2.6%
217,500
226,500
1.5% 4.1%
1,996,800
2,063,950
13.6% 3.4%
14,378,400
15,229,550
100.0% 5.9%
148,800
155,300
1.0% 4.4%
111,300
306,900
2.0% 175.7%
594,450
511,900
3.4% -13.9%
234,450
250,550
1.6% 6.9%
6,600
42,250
0.3% 540.2%
572,200
586,250
3.8% 2.5%
385,100
431,300
2.8% 12.0%
220,000
230,000
1.5% 4.5%
223,400
150,050
1.0% -32.8%
297,450
405,800
2.7% 36.4%
638,850
668,250
4.4% 4.6%
33,800
33,000
0.2% -2.4%
-
53,450
0.4% -
3,466,400
3,825,000
25.1% 10.3%
5,142,250
5,470,050
35.9% 6.4%
908,550
955,000
6.3% 5.1%
93,650
98,750
0.6% 5.4%
665,300
678,450
4.5% 2.0%
47,000
48,400
0.3% 3.0%
6,856,750
7,250,650
47.6% 5.7%
1,304,800
1,333,250
8.8% 2.2%
305,950
298,700
2.0% -2.4%
196,050
205,650
1.4% 4.9%
218,500
234,200
1.5% 7.2%
2,025,300
2,071,800
13.6% 2.3%
1,047,950
1,103,800
7.2% 5.3%
732,400
726,800
4.8% -0.8%
249,600
251,500
1.7% 0.8%
2,029,950
2,082,100
13.7% 2.6%
14,378,400
15,229,550
100.0% 5.9%
Cty
E
River
2018 Budget and Tax Levy
City Council Meeting
December 4, 2017
Purpose of tonight's meeting
■ 2018 General Fund Budget
■ Property Tax Levy for 2018
■ Other Budgets
■ Special Revenue
■ Enterprise
■ Public Comment
■ AdoptTax Levy
■ Approve Budgets
Budget Process Timeline
May
Budget forms to
depts.
June July - August
Budget requests City Council budget
,reviewed �worksessions
July -
May June August
r7
Sept. Nov. Dec.
September November
Adopt preliminary tax County mails
levy proposed tax notices
December
Council adopts final
budget & tax I evy
2018 General Fund Budget Summary
Property Taxes
Other Taxes
Licenses & Permits
Intergovernmental Revenues
Charges for Services
Fines
Other Revenues
Transfers In
Total Revenues
Expenditures:
General Government
Public Safety
Public Works
Culture & Recreation
Total Expenditures
2017
2018
Dollar
Budget
Proposed
Change
Change
$ 9,969,250
$10,497,800
$ 528,550
5.3%
140,000
150,000
10,000
7.1
714,950
877,900
162,950
22.8
293,500
324,500
31,000
10.6
891,400
937,900
46,500
5.2
155,000
151,000
(4,000)
-2.6%
217,500
226,500
9,000
4.1
1,996,800
2,063,950
67,150
3.4%
14, 378, 400
15, 229, 550
851,150
5.9
3,466,400
3,825, 000
358,600
10.3
6,856,750
7,250,650
393,900
5.7
2,025, 300
2,071, 800
46,500
2.3
2,029,950
2,082,100
52,150
2.6
$ 14, 378, 400
$ 15,229,550
$ 851,150
5.9
General Fund Revenues= by Category
Charges for Services
6%
Intergovernmental
Revenue
2%
License & Permi
6%
Other Taxes
1%
Fines and Other Transfer In
Gnrfcitc 10/ A AA.
)perty Taxes
69%
General Fund Expenditures - by Function
Culture & General
Recreation Government
Public Works 13•7% 25.1%
13.6
Public Safety
47.6%
General Fund Expenditures= by Category
Services &
Charges
dies 16%
Personal
Services
76%
k7
Expenditure Changes
■ Same service levels as 2017
■ New positions — 3 full-time
■ Sr. Communications Coordinator
■ Patrol Officers - 2
■ Wage/benefit adjustments
■ Elections
■ Software maintenance/upgrades
■ Fuel costs
Tax Le,
Levy 2017
Components Levy
General Fund $9,969,250
Library 53,650
Debt Service 368,030
Tax Abatement 172,840
Total $10,563,770
Dollar Change
Preliminary Levy
Dollar Change
2018
Proposed
$10,497,800
54,000
369,500
142,530
$11,063,830
$500,060
$11,123,030
$559,260
Chg.
From 2017
5.3%
.7%
.4%
-17.5%
4.7%
5.3
Tax Levy by Use
Debt Service
Library
Economic
^..FelUPI ent
1.5
Tax Levy History (2009=2018)
$12,000,000
�A,000,000
M,000,000
$6,000,000
$4,000,000
$2,000,000
2009 2010 2011 2012 2012 2014 2015 2015 2017 2013
PropertyTax Components
$30,000,000
$25,000,000
$20,000,000
$15,000, 000
$10,000, 000
$5,000,000
$0
Tax Levy, Tax Capacity and Tax Rate
■'IIIIL•i�I1ti IIill�i � f'Il�i f�irll�l k#Ilti C�illti �Il�i [i'i�l�l ■f�l�l B�
Tax Rate
52.000
50.000
48.000
45.000
44.000
42.000
40.000
38.000
Tax Rate
--+—Tax Capacity
fTax Levy
Tax Levy = amount needed from property owners to deliver city services
Tax Capacity = dollar value of the taxable portion of property values
Market Value AIIULaLlUll
Agric. Other
Apartments10 5%
0/
Corn rn.,
10
lential
4%
.8%)
Source: Sherburne County Assessor
apaci
Rates
city, county, & school comparison (estimates only)
city
EDA
H RA
Ref. (YMCA)
County
Rail
School
Ref.
Actual
2017
46.193
1.577
1.276
0.02541
50.460
1.656
36.659
0.19373
Proposed
2018
46.190
1.560
1.205
0.02408
49.423
1.499
36.020
0.19391
TOTAL 138.040 136.115
Revised
2018
45.925
WhereYour PropertyTax Dollar Goes
�Hij-lj j s,,r.vr j,I. s, iivt I E, I Ilk nliCCAW
L 118091A C
12
L 1118091E
T2�
City - $.34 County - $.36
N��tfL�kzrt�.11.l'_ I
T
School - $.27 Other - $.03
Median Value
mated
Residential (Homestead):
Tax Capacity Rate
Estimated
46.193 45.925
Total Estimated Tax
2017 2018
Property Value
Value
Change
Tax Capacity
Dollar
change
Percent
change
2017 2018
2017 2018
153,000 163,700
7.0%
1,295 1,412
598 648
50
8.4%
172,600 182,200
5.6%
1,509 1,614
697 741
44
6.3%
262,300 272,500
3.9%
2,487 2,598
1,149 1,193
44
3.8%
311,700 323,600
3.8%
3,025 3,155
1,397 1,449
52
3.7%
221,300 234,600
6.0%
2,040 2,185
942 1,003
61
6.5%
196,500 208,400
6.1 %
1,769 1,899
817 8721
55
6.7%
200,000 200,000
0.0%
1,808 1,808
835 830
5
-0.6%
Commercial/Industrial:
4,545,300 4,449,500
-2.11%
90,156 88,240
41,646 40,524
(1,122)
-2.7%
4,176,900 4,032,300
-3.46%
82,788 79,896
38,242 36,692
(1,550)
-4.1%
1,575,700 1,577,800
0.13%
30,764 30,806
14,211 14,148
(63)
-0.4%
1,246,900 1,193,300
-4.30%
24,188 23,116
11,173 10,616
557
-5.0%
Sherburne County - 2018 Proposed Tax Rates
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Becker Zimmerman
46.190
f
Elk River
55.838
East St. Cloud Big Lake
83.547
74.036
Princeton Clear Lake
2018 Sherburne County average = 56.031%
Other Budgets
Special Revenue Funds
Library
Ice Arena
Enterprise Funds
Liquor
Sewer
Garbage
Storm Sewer
$1 189850
$7689850
Revenues
$791389000
$297029000
$196129500
$ 5009000
Expenditures
$699359100
$490749850
$196459200
$ 7569150
Public Comment
■ Receive public comment regarding the 2018
Budget and Proposed 2018 Property Tax Levy