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10.5. SR 08-05-2019
Eclty1� ,.,�� Request for Action River To Item Number Mayor and City Council 10.5 Agenda Section Meeting Date Prepared by Work Session August 5, 2019 Lori Ziemer, Finance Director Item Description Reviewed by 2020 Budget Cal Portner, City Administrator Reviewed by Action Requested Continue 2020 budget discussion. Background/Discussion The preliminary budget is drafted based on the same level of services as in 2019 and is developed using a combination of historical data and future projections based on anticipated operations for 2020. In September, the Council will need to adopt the preliminary property tax levy,which is the maximum amount the city can levy for taxes payable 2020. The preliminary tax levy includes the following: ■ Early estimates from the county indicate about a 5.5% NTC increase - approx. $27,436,000. ■ Additional$150,000 for the full debt service payment for the public safety building bonds (taxes payable 2022 will be the last year as the bonds will be paid off February, 2023). ■ Tax abatement levy decreases due to an abatement payoff in 2019. ■ Government Building Reserve levy amount is the decrease of the tax abatement levy. ■ Lake Orono Dredging levy is the city's share for city-owned property along the lake. The draft General Fund budget totals $17,451,200,which is a 7.6%increase from the prior year. With the senior activities moving to the multi-purpose facility mid- 2020,it is anticipated about$106,500 could potentially be moved out of the General Fund. Staff seeks Council input in order to effectively and efficiently complete the budget process with direction for the preliminary property tax levy amount. Financial Impact N/A Attachments ■ Personnel Request Summary ■ Capital Outlay Summary ■ General Fund Summary ■ Preliminary Tax Levy The Elk River Vision A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAMIRE1 Department: Police Police IT Included in Fire Fire Fire Investigative Juv. Detective Phased GENERAL Residential Office Deputy Chief - Assistant Sergeant Retirement FUND Rental Specialist Assistant Training 4101 Regular Pay 45,250 8,000 45,650 98,900 56,700 40,850 80,000 - 95,000 4102 Overtime Pay - - - - 4103 Part-Time Pay - - - - 4104 PERA 3,400 1,400 (400) 4,400 4,250 3,050 14,150 - 16,800 4105 FICA 2,800 - 3,050 5,850 3,500 2,550 - 4107 Medicare 650 100 700 1,450 800 600 1,150 - 1,400 4108 Insurance 13,500 - 14,750 28,250 14,750 14,750 14,750 4109 Workers Comp 200 300 250 750 250 200 4,000 Total Personal Services 65,800 9,800 64,000 139,600 80,250 62,000 114,050 - 131,950 Additional Costs: 4217 Uniform Allowance 650 - - 650 - - - 4219 Computer/phone 2,500 - - 2,500 - - - Total Additional Costs 3,150 - - 3,150 - - - Total New Position Requests 68,950 9,800 64,000 142,750 80,250 62,000 114,050 - 131,950 Start Date:2/1/2020 3/1/2020 2020 BUDGET REQUESTED POSITIONS Not included in General Fund Budget 2020 CAPITAL OUTLAY Requested General Capital Department Item Amount Fund Library Reserve Elections Election Equip. - City contrib.15,600 15,600 Information Tech.IT infrastructure replacement 190,000 190,000 Emergency Management Audio/video upgrade 27,000 27,000 Building Safety iPlan Review Tables (2)30,000 30,000 Equipment Services Vehicle Diagnostic Scanner 13,500 13,500 General Fund Departments 276,100$ 260,500$ -$ 15,600$ Library Furniture/shelving 10,000 10,000 Total 286,100$ 260,500$ 10,000$ 15,600$ Funding Source 2018 2019 YTD 2020 % ACTUAL BUDGET 6/30/19 PRELIMINARY CHANGE General Fund Revenues: Property taxes 10,508,700$ $11,187,400 $3,982,565 $12,605,900 12.7% Other taxes 137,532 150,000 14,740 140,000 -6.7% Licenses & Permits 790,831 857,000 403,541 798,500 -6.8% Intergovernmental Revenues 578,324 571,500 12,127 555,500 -2.8% Charges for Services 930,293 969,200 578,094 936,500 -3.4% Fines 137,114 154,500 58,046 140,000 -9.4% Other Revenues 273,799 259,500 77,595 276,500 6.6% Transfers In 2,058,735 2,072,100 420,757 1,998,300 -3.6% Total General Fund Revenues 15,415,328 16,221,200 5,547,465 17,451,200 7.6% General Fund Expenditures General Government: Mayor & Council 149,224 149,050 49,282 150,550 1.0% Communications 253,786 326,350 122,877 328,950 0.8% Administrative Services 490,436 531,850 247,623 560,450 5.4% Human Resources 255,559 280,500 133,058 305,850 9.0% Elections 37,614 6,800 6,300 62,200 814.7% Finance 605,933 644,550 348,614 648,850 0.7% Information Technology 364,601 440,000 201,566 746,600 69.7% Legal 273,462 230,000 124,932 240,000 4.3% Community Development 159,737 162,750 75,943 206,700 27.0% Planning 344,685 352,550 154,864 369,950 4.9% Building Maintenance 670,808 726,550 329,864 769,300 5.9% Energy City 29,992 31,150 12,631 27,550 -11.6% Total General Government 3,635,837 3,882,100 1,807,554 4,416,950 13.8% Public Safety: Police 5,462,953 5,856,650 2,539,980 6,225,800 6.3% Fire 1,136,830 1,353,900 563,333 1,437,050 6.1% Building Safety 672,567 513,500 259,207 558,050 8.7% Code Enforcement 95,493 115,700 46,207 120,150 3.8% Environmental 42,443 32,450 14,129 53,150 63.8% Total Public Safety 7,410,286 7,872,200 3,422,856 8,394,200 6.6% Public Works: Street Maintenance 1,213,910 1,418,150 606,754 1,389,000 -2.1% Snow Removal 279,936 279,600 229,205 307,500 10.0% Equipment Services 208,273 221,400 96,212 245,050 10.7% Engineering 206,926 357,750 137,765 385,500 7.8% Total Public Works 1,909,045 2,276,900 1,069,936 2,327,050 2.2% Culture & Recreation: Parks Maintenance 1,130,649 1,147,600 479,468 1,277,550 11.3% Recreation 739,982 792,000 349,772 792,600 0.1% Sr. Citizen Programs 227,153 250,400 86,786 242,850 -3.0% Total Culture & Recreation 2,097,784 2,190,000 916,026 2,313,000 5.6% Total General Fund Expenditures $15,052,952 $16,221,200 $7,216,372 $17,451,200 7.6% CITY OF ELK RIVER 2020 GENERAL FUND BUDGET 2017 2018 2019 YTD 2020 REVENUES:ACTUAL ACTUAL BUDGET 6/30/2019 PRELIMINARY % CHANGE TAXES Property Taxes $9,943,268 $10,508,700 $11,187,400 $3,982,565 $12,605,900 12.7% Gravel Tax 144,132 137,532 150,000 14,740 140,000 -6.7% TOTAL TAXES 10,087,400 10,646,232 11,337,400 3,997,305 12,745,900 12.4% LICENSES & PERMITS Liquor License 73,069 76,170 75,000 76,400 76,000 1.3% Amusement License -465 - - - - - Cigarette License 3,475 3,075 3,000 - 3,000 0.0% Rental License 66,565 54,156 65,000 44,997 65,000 0.0% Mining License 18,604 25,227 25,000 24,836 25,000 0.0% Garbage Hauler License 2,100 2,090 2,000 120 2,000 0.0% Other Business License/Permit 15,470 10,635 14,000 8,940 12,000 -14.3% NPDES Permit 19,600 26,600 18,000 11,900 20,000 11.1% Building Permit 541,994 468,632 480,000 185,399 475,000 -1.0% Plumbing/Heating Permit 246,991 106,573 160,000 44,845 110,000 -31.3% Permit Surcharge 930 271 1,000 274 500 -50.0% Animal License 4,500 3,592 5,000 450 - -100.0% Other Non-Business Lic/Permit 14,710 13,810 9,000 5,380 10,000 11.1% TOTAL LICENSES & PERMITS 1,007,543 790,831 857,000 403,541 798,500 -6.8% INTERGOVERNMENTAL REVENUE MV Credit 5,930 5,788 5,500 - 5,500 0.0% PERA Aid 13,984 13,984 14,000 - - -100.0% Fire State Aid 181,297 188,502 182,000 2,000 190,000 4.4% Police State Aid 273,612 269,703 275,000 - 270,000 -1.8% Police Training Reimb 11,174 30,624 30,000 - 30,000 0.0% State Crime Prevention Grant 60,365 62,473 65,000 10,127 60,000 -7.7% Other Grants - 7,250 - - - 0.0% TOTAL INTERGOVTL REVENUE 546,362 578,324 571,500 12,127 555,500 -2.8% CHARGES FOR SERVICES Planning & Zoning Fees 33,985 26,793 32,000 9,893 30,000 -6.3% Plan Check Fee 262,578 227,767 200,000 89,788 215,000 7.5% Special Assessment Search 1,050 300 800 470 500 -37.5% Copies 2,906 3,283 2,500 964 3,000 20.0% Other General Govt Services 3,091 1,128 1,500 652 1,500 0.0% Lockout Fees 6,125 5,280 6,000 2,900 5,500 -8.3% Police Services 16,760 9,958 10,000 2,894 10,000 0.0% School Liaison 123,624 130,084 130,000 68,273 149,000 14.6% Animal Impound Fee 4,500 4,500 4,000 1,075 4,000 0.0% Fire Contracts 252,362 274,936 275,000 269,829 277,000 0.7% Fire Services 1,906 8,904 2,000 20 2,000 0.0% Street Services 13,206 22,788 12,000 9,123 18,000 50.0% Engineering Services Reimb 134,131 65,923 130,000 24,316 75,000 -42.3% Recreation Fees 60,682 68,914 78,000 62,600 70,000 -10.3% Sr Center Activities 43,673 31,858 44,000 19,742 44,000 0.0% Park Use Fee 27,066 31,317 27,000 9,915 20,000 -25.9% Building Rent 2,400 2,400 2,400 600 - -100.0% Sewer Inspection Fee 11,440 12,925 11,000 4,440 11,000 0.0% Contractor License Check 1,035 1,235 1,000 600 1,000 0.0% TOTAL CHARGES FOR SERVICES 1,008,303 930,293 969,200 578,094 936,500 -3.4% 2020 BUDGET GENERAL FUND REVENUES CITY OF ELK RIVER 2017 2018 2019 YTD 2020 REVENUES:ACTUAL ACTUAL BUDGET 6/30/2019 PRELIMINARY % CHANGE FINES & FORFEITS Court Fines 173,236 126,079 145,000 56,786 135,000 -6.9% Parking Fines 5,360 10,460 9,500 1,260 5,000 -47.4% Ordinance Violations 75 575 - - - - TOTAL FINES & FORFEITS 178,671 137,114 154,500 58,046 140,000 -9.4% OTHER REVENUE Interest Income 119,225 128,952 100,000 51,577 115,000 15.0% Refunds & Reimbursements 130,003 114,548 130,000 - 130,000 0.0% Contributions 16,000 21,336 23,000 24,000 25,000 8.7% Miscellaneous Revenue 4,912 8,963 6,500 2,018 6,500 0.0% TOTAL OTHER REVENUE 270,140 273,799 259,500 77,595 276,500 6.6% TRANSFERS IN Transfers 12,437 422 - 112 - - Transfer-Landfill 56,000 56,000 50,000 - - -100.0% Transfer-Capital Outlay Reserv 13,250 13,600 14,000 - - -100.0% Transfer-GRE Reserve 45,000 45,000 50,000 - - -100.0% Transfer-Development 14,000 14,000 10,600 - 10,600 0.0% Transfer-WWTS 130,000 150,000 150,000 - 155,000 3.3% Transfer-Liquor 482,850 492,000 500,000 - 500,000 0.0% Transfer-Garbage 46,150 46,750 48,000 - 50,000 4.2% Transfer-Utilities 1,035,000 1,159,363 1,165,000 420,645 1,195,000 2.6% Transfer-Stormwater 15,000 15,000 15,000 - 15,500 3.3% Transfer-EDA 34,800 36,600 38,000 - 39,500 3.9% Transfer-HRA 24,750 30,000 31,500 - 32,700 3.8% TOTAL TRANSFERS IN 1,909,237 2,058,735 2,072,100 420,757 1,998,300 -3.6% TOTAL GENERAL FUND REVENUE $15,007,656 $15,415,328 $16,221,200 $5,547,465 $17,451,200 7.6% 2018 2019 2020 INCREASE/ EXPENDITURES:ACTUAL BUDGET PRELIMINARY (DECREASE)% CHANGE PERSONAL SERVICES FULL TIME SALARIES 7,746,587$ $8,518,050 $9,047,700 $529,650 6.2% OVERTIME 224,635 199,500 210,500 11,000 5.5% PART TIME SALARIES 711,624 751,000 823,400 72,400 9.6% PERA 903,715 1,012,700 1,102,950 90,250 8.9% FICA 320,275 362,950 388,350 25,400 7.0% OTHER RETIREMENT CONTRIBUTIONS 218,502 212,000 220,000 8,000 3.8% MEDICARE 123,172 136,850 145,850 9,000 6.6% INSURANCE 999,523 1,097,050 1,199,050 102,000 9.3% WORKERS COMPENSATION 230,499 235,300 268,550 33,250 14.1% TOTAL PERSONAL SERVICES 11,478,532 12,525,400 13,406,350 880,950 7.0% SUPPLIES OFFICE SUPPLIES 40,624 41,800 48,350 6,550 15.7% FUELS & LUBES 214,493 230,000 237,000 7,000 3.0% UNIFORM ALLOWANCE 67,876 74,650 78,200 3,550 4.8% OPERATING SUPPLIES 635,690 589,600 630,700 41,100 7.0% EQUIPMENT PARTS 125,948 126,300 130,300 4,000 3.2% STREET SIGNS 33,975 32,500 33,000 500 1.5% TOTAL SUPPLIES 1,118,606 1,094,850 1,157,550 62,700 5.7% OTHER SERVICES & CHARGES AUDIT FEES 15,450 16,000 21,750 5,750 35.9% LEGAL FEES 273,462 230,000 240,000 10,000 4.3% PROFESSIONAL SERVICES 149,266 117,150 112,150 (5,000) -4.3% TELEPHONE 90,510 91,000 77,700 (13,300) -14.6% POSTAGE 8,431 13,600 12,600 (1,000) -7.4% TRAVEL/CONFERENCES/SCHOOLS 128,013 169,700 178,150 8,450 5.0% CAR ALLOWANCE 4,800 4,800 4,800 - 0.0% ADVERTISING/MARKETING 15,821 18,700 13,200 (5,500) -29.4% PUBLISHING 10,723 15,800 17,100 1,300 8.2% PROPERTY/LIABILITY INSURANCE 149,129 156,900 162,050 5,150 3.3% UTILITIES 394,022 396,200 405,950 9,750 2.5% BLDG REPAIR/MAINT SERVICES 154,050 178,600 161,850 (16,750) -9.4% EQUIP REPAIR/MAINT SERVICES 398,308 446,350 487,550 41,200 9.2% CONTRACTUAL SERVICES 165,795 231,900 200,250 (31,650) -13.6% BUILDING RENT 1,861 1,400 1,800 400 28.6% EQUIPMENT RENTAL 33,551 31,500 29,200 (2,300) -7.3% DUES & SUBSCRIPTIONS 50,397 54,300 56,350 2,050 3.8% TAXES & LICENSES 711 700 700 - 0.0% CREDIT CARD FEES 12,235 12,100 13,100 1,000 8.3% MISCELLANEOUS 76,379 82,250 82,550 300 0.4% EQUIPMENT REPLACEMENT CHARGE 310,000 332,000 348,000 16,000 4.8% TOTAL OTHER SERVICES & CHARGES 2,442,914 2,600,950 2,626,800 25,850 1.0% CAPITAL OUTLAY 12,900 - 260,500 260,500 - TOTAL GENERAL FUND EXPENDITURES $15,052,952 $16,221,200 $17,451,200 1,230,000 7.6% CITY OF ELK RIVER 2020 BUDGET GENERAL FUND EXPENDITURES Personal Services: COLA increase - nonunion $148,000 Union contracts: Police 80,000 49er's 39,000 Step increases: Non-union 141,500 Police 38,000 Unions 40,500 New positions - Investigative Asst.65,800 Juvenile Detective 9,800 Phased retirement 64,000 PERA Police & Fire 28,000 Insurance 5%57,000 Overtime 11,000 Seasonal employees 20,000 Workers comp insurance 33,250 775,850 Other: Elections 55,400 Computer replacements 48,250 Software subscription service 41,250 Capital outlay 260,500 $1,181,250 Components of General Fund Increase City of Elk River Levied Levied Levied Preliminary Tax Levy Pay 2017 Pay 2018 Pay 2019 Pay 2020 General Fund 9,969,250$ 10,497,800$ $11,187,400 $12,605,900 Library 53,650 54,000 66,000 69,000 General Property Tax Levy 10,022,900 10,551,800 11,253,400 12,674,900 Special Levies: 2010 GO CIP Bonds 368,030 369,500 470,130 619,920 Economic Development Tax Abatement 172,840 142,530 160,235 138,550 Government Building Reserve - - 55,000 21,685 Lake Orono Dredging - - - 100,000 Total Levy 10,563,770$ 11,063,830$ 11,938,765 $13,555,055 General Fund Change from Previous Year 372,400$ 528,550 689,600 $1,418,500 Percentage Change from Previous Year 3.9%5.3%6.6%12.7% Total Dollar Change from Previous Year 392,037$ 500,060$ 874,935 $1,616,290 % Change 3.9%4.7%7.9%13.5% Note: This will be adjusted as we go thru the budget process and do updates. NTC Value 22,868,723$ 24,046,382$ $26,006,616 $27,436,000 *County Estimate - May Tax Rate 46.193%46.010%45.907%49.406% % Increase in NTC 3.8%5.15%8.15%5.50%