Loading...
3. SR 08-29-2022 Request for Action To Item Number Mayor and City Council 3 Agenda Section Meeting Date Prepared by Work Session August 29, 2022 Lori Ziemer, Finance Director Item Description Reviewed by 2023 Budget Cal Portner, City Administrator Reviewed by Action Requested Continue 2023 budget discussion. Background/Discussion As of the August 8 budget work session, the 2023 General Fund budget was $20,888,600 and is currently $20,852,600, after the removal of the $36,000 IT server to the Capital Reserve fund. 76% of the General Fund budget is comprised of personal services and is supported with a General Fund tax levy of $14,850,600, which comprises 71% of the General Fund revenues. Net Tax Capacity (NTC) values are expected to be received in September, but early estimates from the county are about $38,100,000, or about a 20% increase. With an estimated 20% increase in the NTC values, the preliminary tax rate, with fully funding the debt service levies, would be about 43.242%, compared to 43.967% in 2022. On September 6, the Council will adopt the maximum preliminary tax levy for taxes payable 2023 to be certified to the county by their requested deadline of September 15. The final tax levy will be adopted in December and can be the same or lower, but cannot be greater, than the preliminary tax levy. Following is a comparison of the surrounding communities COLA and levy increase: The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 Discussion Items to Consider:  Personnel requests – funding of personnel requests included in the General Fund budget.  Compensation plan update – the budget impact at the 3% COLA of the three pay plan options not included in the budget is:  Debt service tax levy – debt service payments are currently being funded from the Government Building Reserve, which is supported by the landfill fee anticipated to end about 2027.  Council direction regarding the General Fund budget and preliminary tax levy. Financial Impact N/A Mission/Policy/Goal The city’s mission is to grow responsibly and be good stewards for every dollar to develop a sustainable and prosperous community. Attachments  Personnel Requests  2023 General Fund Summary  2023 General Fund by Account  2023 General Fund Revenues  2023 Preliminary Tax Levy  2023 Estimated Tax Impact 9,600 336,250345,850 FUND TOTAL GENERAL 178,250 45,350 20,250 10,850 3,250 72,800 5,500 6,000 900 300 2,400 - 550650300 2,9002,4002,1501,0001,950 38,60011,40058,00059,950 New Street 5/2023 Streets Maintenance - 350100 1,8501,5001,0001,000 24,55013,65042,00043,000 Sign 1/2023 Streets Shop Tech Addl hours -- 700 8,7002,8506,0006,000 49,30013,65075,20081,200 Fire New 6/2023 Fire Officer -- 800250250400650 4,0503,350 53,95017,05079,45080,100 New Clerk 1/2023 Police - Records Support Svcs --- 450 400 100 5,950 6,9006,900 2023 BUDGET Safety 1/2023 reclass Building Position Plan Review Permit Tech/ PERSONNEL REQUESTS ----- 300 1,300 20,80022,40022,400 New Intern Planning 4/23 - 10/23 Community Development -- 450150 2,3001,900 30,45017,05052,30052,300 1/2023 Human PT to FT Resources HR Assistant Start Date: Total Additional Costs Total Personal Services Department: Position:Regular PayPart-Time PayPERAFICAMedicareInsuranceWorkers CompAdditional Costs: Background/Psych Eval. Uniform Allowance Supplies Training/LicenseTotal Position Requests CITYOFELKRIVER 2023PRELIMINARYBUDGET GENERALFUND 20192020202120222023%ofIncrease/% LACTUALACTUALBUDGETPRELIMINARYBudget(Decrease)Change ACTUA GeneralFundRevenues: Propertytaxes$11,171,84811,934,049$12,297,572$13,109,300$14,850,60071.2%$1,741,30013.3% Othertaxes158,232193,275233,745180,000225,0001.1%45,00025.0% Licenses&Permits822,899665,5191,015,529865,700994,3004.8%128,60014.9% IntergovernmentalRevenues607,320607,367581,927623,000614,0002.9%(9,000)1.4% ChargesforServices923,063779,9641,035,9531,018,0001,117,2005.4%99,2009.7% Fines134,49389,359127,266120,000125,0000.6%5,0004.2% OtherRevenues495,889278,453297,915260,000275,0001.3%15,0005.8% TransfersIn1,922,6572,613,9432,281,9602,737,6502,651,50012.7%(86,150)3.1% TotalGeneralFundRevenues16,236,40117,161,92917,871,86718,913,65020,852,600100.0%$1,938,95010.3% GeneralFundExpenditures GeneralGovernment: Mayor&Council142,390141,884161,522189,250203,7501.0%14,5007.7% Communications274,801282,556334,651412,750439,1502.1%26,4006.4% AdministrativeServices540,930566,052597,464618,500658,2503.2%39,7506.4% HumanResources281,080300,387344,469376,600447,5002.1%70,90018.8% Elections6,30073,5616,30048,7006,6000.0%(42,100)86.4% Finance632,392597,788620,548686,150732,3003.5%46,1506.7% InformationTechnology419,605501,899454,648542,550613,2002.9%70,65013.0% Legal315,866232,017244,402255,000275,0001.3%20,0007.8% CommunityDev/Planning495,545554,689578,245601,600476,9002.3%(124,700)20.7% FacilitiesMaintenance711,842755,149812,257931,2501,030,1504.9%98,90010.6% EnergyCity29,57322,30723,92238,70049,0500.2%10,35026.7% TotalGeneralGovernment3,850,3244,028,2894,178,4284,701,0504,931,85023.7%230,8004.9% PublicSafety: Police5,647,8225,734,6956,338,2126,788,6007,524,75036.1%736,15010.8% Fire1,289,6961,243,6091,514,7521,611,2001,920,2509.2%309,05019.2% BuildingSafety514,626498,824489,072548,650578,1502.8%29,5005.4% CodeEnforcement91,45880,36086,31694,200108,7000.5%14,50015.4% Environmental32,47754,75957,57862,500102,5500.5%40,05064.1% TotalPublicSafety7,576,0797,612,2478,485,9309,105,15010,234,40049.1%1,129,25012.4% PublicWorks: StreetMaintenance1,323,2791,411,9361,472,0801,429,5001,681,5508.1%252,05017.6% SnowRemoval334,574284,921336,707338,000359,7001.7%21,7006.4% EquipmentServices232,155221,272253,000362,800386,7001.9%23,9006.6% Engineering330,734336,587396,165493,450508,9002.4%15,4503.1% TotalPublicWorks2,220,7422,254,7162,457,9522,623,7502,936,85014.1%313,10011.9% Culture&Recreation: ParkMaintenance1,152,1051,185,5291,310,8521,548,7001,686,5008.1%137,8008.9% Recreation787,334661,903648,970801,050917,1004.4%116,05014.5% Sr.CitizenPrograms203,479153,302119,465133,950145,9000.7%11,9508.9% TotalCulture&Recreation2,142,9182,000,7342,079,2872,483,7002,749,50013.2%265,80010.7% TransfersOut 237,813887,986171,591 0.0%0.00% TotalGeneralFundExpenditures$16,027,876$16,783,972$17,373,188$18,913,650$20,852,600100.0%$1,938,95010.3% ^ CITYOFELKRIVER 2023PRELIMINARYBUDGET GENERALFUNDEXPENDITURESBYACCOUNT 20192020202120222023INCREASE/% EXPENDITURES:ACTUALACTUALACTUALBUDGETPRELIMINARY(DECREASE)CHANGE PersonalServices FullTimeSalaries$8,258,390$8,369,176$9,130,334$9,887,400$10,635,100$747,7007.6% Overtime241,940204,970276,223240,500263,50023,0009.6% PartTimeSalaries729,576773,721657,853786,750745,000(41,750)5.3% PERA981,7661,016,4941,123,0731,211,9501,303,95092,0007.6% FICA347,126346,884366,023411,500435,20023,7005.8% OtherRetirementContributions230,424237,496248,909245,000255,00010,0004.1% Medicare130,963131,705142,267158,000169,05011,0507.0% Insurance1,083,8431,097,4401,197,9401,326,8001,612,550285,75021.5% WorkersCompensation228,410215,240267,271327,550407,35079,80024.4% TotalPersonalServices12,232,43812,393,12613,409,89314,595,45015,826,7001,231,250 8.4% Supplies OfficeSupplies41,25641,08239,40539,95028,950(11,000)27.5% Fuels/Lubes180,234176,958154,724216,450369,300152,85070.6% UniformAllowance68,75374,643109,57266,65069,9503,3005.0% OperatingSupplies608,558654,970667,777716,400785,25068,8509.6% EquipmentParts152,808115,208145,394142,500211,30068,80048.3% StreetSigns19,18932,54649,61543,00046,0003,0007.0% TotalSupplies1,070,7981,095,4071,166,4871,224,9501,510,750285,800 23.3% Services&Charges AuditFees15,62517,70020,60523,50022,000(1,500)6.4% EngineeringFees1,47285,00085,0000.0% LegalFees315,866232,017244,402255,000275,00020,0007.8% ProfessionalServices115,106136,27199,592120,850145,50024,65020.4% Telephone78,61573,35372,55879,75079,9001500.2% Postage12,0639,68410,05315,35014,700(650)4.2% Travel,Conferences/Schools118,91777,549113,688192,200193,9001,7000.9% CarAllowance4,8006,4009,6009,6009,6000.0% Advertising/Marketing17,59113,92712,4166,4009,0002,60040.6% Publishing13,00413,5118,82621,25022,6501,4006.6% Property/liabilityInsurance158,535163,537183,379207,900218,85010,9505.3% Utilities360,765404,871407,785436,500481,60045,10010.3% BuildingMaintenance137,984127,116155,182118,300176,65058,35049.3% Equipment/SoftwareMaint.439,792455,194522,253651,450737,50086,05013.2% ContractualServices183,948184,069214,024280,700348,15067,45024.0% BuildingRent1,6701,1126576,5006,5000.0% EquipmentRental36,18228,98835,33735,00030,500(4,500)12.9% Dues&Subscriptions53,04651,94050,65256,80055,450(1,350)2.4% Taxes&Licenses220967348950550(400)42.1% CreditCardFees16,10516,97119,65420,25021,7501,5007.4% Miscellaneous74,99344,27633,01666,00050,200(15,800)23.9% FleetReplacementCharge332,000348,000372,000404,000436,50032,5008.0% ITEquipmentCharge93,70093,700 TotalServices&Charges2,486,8272,407,4532,587,4993,093,2503,515,150421,900 13.6% CapitalOutlay 37,718 TransfersOut237,813887,986171,591 TotalGeneralFundExpenditures$16,027,876$16,783,972$17,373,188$18,913,650$20,852,600$1,938,95010.3% CITYOFELKRIVER 2023BUDGET GENERALFUNDREVENUES 20192020202120227/31/222023INCREASE/% REVENUES:ACTUALACTUALACTUALBUDGETACTUALPRELIMINARYDECREASECHANGE Taxes PropertyTaxes11,171,84811,934,04912,297,57213,109,3006,771,877 14,850,600 1,741,30013.3% GravelTax158,232193,275233,745180,00017,761225,00045,00025.0% TotalTaxes11,330,08012,127,32412,531,31713,289,3006,789,63815,075,6001,786,30013.4% Licenses&Permits LiquorLicense76,4408,13073,59576,00081,85082,0006,0007.9% CigaretteLicense3,0003,0504,6563,0001004,0001,00033.3% THCLicense4,0004,000#DIV/0! RentalLicense67,27950,99462,60365,00042,83565,0000.0% MiningLicense24,83625,76125,84926,00024,54026,0000.0% GarbageHaulerLicense1,8052,3552,4602,0001252,50050025.0% Other BusinessLicense/Permit18,35516,48515,95516,00013,40516,0000.0% NPDESPermit19,42521,72824,67522,00013,68024,0002,0009.1% BuildingPermit457,246407,688588,999500,000403,093600,000100,00020.0% Plumbing/HeatingPermit136,723106,095191,019140,000104,800150,00010,0007.1% PermitSurcharge55068075370047080010014.3% AnimalLicense8009658004100.0% OtherNonBusinessLic/Permit16,44021,58824,16515,00011,47020,0005,00033.3% TotalLicenses&Permits822,899665,5191,015,529865,700696,778994,300128,60014.9% IntergovernmentalRevenue MVCredit6,1366,1765,7566,0006,0000.0% FireStateAid200,423207,497218,909215,0003,000225,00010,0004.7% PoliceStateAid294,632310,309276,543315,000300,000(15,000)4.8% PoliceTrainingReimb31,81429,16838,00232,00035,0003,0009.4% StateCrimePreventionGrant59,83142,64742,71755,0008,32248,000(7,000)12.7% OtherGrants50011,570 TotalIntergovernmentRevenue607,320607,367581,927623,00011,322614,000(9,000)1.4% ChargesforServices Planning&ZoningFees25,46219,99233,72525,00017,23025,0000.0% PlanCheckFee223,094182,459281,502250,000204,074250,0000.0% SpecialAssessmentSearch7806301,2505002105000.0% Copies1,7711,3831,4911,5005551,5000.0% OtherGeneralGovtServices7315250013(500)100.0% LockoutFees6,0004,4653,7805,5001,8053,500(2,000)36.4% PoliceServices28,51418,27667,17718,00010,03025,0007,00038.9% SchoolLiaison141,808149,368155,077162,000170,582175,00013,0008.0% AnimalImpoundFee2,5001,0003001,000375500(500)50.0% FireContracts269,829280,008289,662335,000380,317400,00065,00019.4% FireServices6,4008,6872,4756,0003,000(3,000)50.0% StreetServices26,50816,54927,42625,000 12,25230,0005,00020.0% EngineeringServicesReimb34,42522,22316,50520,0009,67520,0000.0% RecreationFees59,08913,48132,50560,00036,16060,0000.0% SrCenterActivities43,7489,17236,26435,00022,58037,0002,0005.7% Farmer'sMarket10,26710,67221,83915,00031,13420,0005,00033.3% ElkRiverFest7,94750020,62219,00013,30520,0001,0005.3% ParkUseFee22,74522,38725,23825,00016,12330,0005,00020.0% SewerInspectionFee9,72017,52017,84013,0008,79015,0002,00015.4% ContractorLicenseCheck1,1251,1401,2751,0007401,20020020.0% TotalChargesforServices923,063779,9641,035,9531,018,000935,9501,117,20099,2009.7% Fines CourtFines133,23388,109125,266120,00062,927125,0005,0004.2% ParkingFines1,260150 OrdinanceViolations1,1002,0002,000 TotalFines134,49389,359127,266120,00064,927125,0005,0004.2% OtherRevenue InterestIncome221,966117,415119,745100,00055,080120,00020,00020.0% Refunds&Reimbursements224,635147,378145,251130,0009,665125,000(5,000)3.8% ContributionsConcertSponsorships25,00019,00020,00025,90020,0000.0% MiscellaneousRevenue24,28813,66013,91910,0004,57110,0000.0% TotalOtherRevenue495,889278,453297,915260,00095,216275,00015,0005.8% 20192020202120227/31/222023INCREASE/% REVENUES:ACTUALACTUALACTUALBUDGETACTUALPRELIMINARYDECREASECHANGE TransfersIn Transfers112490,4254601,656 TransferCapitalOutlayReserv50,00078,50028,50057.0% TransferDevelopment10,60010,60010,60010,650(10,650)100.0% TransferMPF140,000(140,000)100.0% TransferWWTP150,000155,000160,000165,000170,0005,0003.0% TransferLiquor500,000500,000500,000750,000750,0000.0% TransferGarbage48,00050,00052,00054,000 56,5002,5004.6% TransferUtilities1,129,4451,312,2181,355,0001,355,000536,0261,380,00025,0001.8% TransferStormwater15,00015,500121,000135,000135,0000.0% TransferEDA38,00039,50041,00043,00045,0002,0004.7% TransferHRA31,50040,70041,90035,00036,5001,5004.3% TotalTransfersIn1,922,6572,613,9432,281,9602,737,650537,6822,651,500(86,150)3.1% TotalGeneralFundRevenues16,236,40117,161,92917,871,86718,913,6509,131,51320,852,6001,938,95010.3% GeneralFund ExpendituresbyCategory Services&Charges $3,515,150 17% Supplies $1,510,750 7% PersonalServices $15,826,700 76% GeneralFund RevenuesbySource Fines ChargesforServices OtherRevenues $125,000 TransfersIn $1,117,200 $275,000 1% $2,651,500 5% IntergovtlRevenue 1% 13% $614,000 3% Licenses/Permits $994,300 5% OtherTaxes $225,000 1% PropertyTaxes $14,850,600 71% 2023PRELIMINARYTAXLEVY LeviedLeviedLeviedLeviedPreliminary TaxLevyPay2019Pay2020Pay2021Pay2022Pay2023 GeneralFund$11,187,400$11,938,300$12,315,000$13,109,300$14,850,600 Library66,00069,00071,50075,95075,000 GeneralPropertyTaxLevy11,253,40012,007,300$12,386,50013,185,250$14,925,600 SpecialLevies: DebtService 2010APSBuilding470,130619,920618,870602,650 2020APSBuildingExpansion606,346 606,346 2020BRefundingPWBuilding422,830 422,830 2021AFireStation3/Equip.389,135 389,135 EconomicDevelopmentTaxAbatement160,235138,55098,45097,800131,475 2023Sportechabatementadded GovernmentBuildingReserve55,000 LakeOronoDredging100,000 TotalLevy$11,938,765$12,865,770$13,103,820$13,885,700$16,475,386 GeneralFundChangefromPreviousYear$689,600$750,900$376,700$794,300$1,741,300 PercentageChangefromPreviousYear6.6%6.7%3.2%6.4%13.3% TotalDollarChangefromPreviousYear$874,935$927,005$238,050$781,880$2,589,686 %Change7.9%7.8%1.9%6.0%18.7% NTCValue$26,006,616$27,823,086$29,409,713$31,581,676$38,100,000*EstimatefromCounty TaxRate45.907%46.241%44.556%43.967%43.242% %IncreaseinNTC8.2%7.0%5.7%7.4%20.6% TaxRateHistory 49.000% 48.000% 47.000% 46.000% 45.000% 44.000% 43.000% 42.000% 41.000% 40.000% 2014201520162017201820192020202120222023 CITY OF ELK RIVER ESTIMATED TAX IMPAC T Residential (Homestead): With Valuation Change Impact Estimated City Tax Estimated Market ValueTax Capacity Rate Property ValueValue 43.967%43.242%DollarPercentExclusion *Tax Capacity Value 20222023Change202220232022202320222023changechange $227,800$281,50023.6%$16,738 $11,905 $2,111$2,696$928$1,166$23825.6% $10,321 $5,236 $299,100$355,60018.9%$2,888$3,504$1,270$1,515$24519.3% $334,500$397,90019.0%$7,135 $1,429 $3,274$3,965$1,439$1,714$27519.1% $416,300$490,70017.9%$0 $0 $4,163$4,907$1,830$2,122$29216.0% $4,462 $0 $364,200$440,50021.0%$3,597$4,405$1,582$1,905$32320.4% $300,800$345,50014.9%$10,168 $6,145 $2,906$3,394$1,278$1,467$18914.8% $250,000$250,0000.0%$2,353$2,353$1,034$1,017($17)-1.6% $14,740 $14,740 Commercial/Industrial: Estimated City Tax Estimated Tax Capacity Rate Property ValueValue43.967%43.242%DollarPercentTax Capacity Value 20222023Change2022202320222023changechange $4,645,100$5,266,30013.4%$92,152$104,576$40,516$45,221$4,70511.6% $4,034,200$4,699,40016.5%$79,934$93,238$35,145$40,318$5,17314.7% $1,676,700$1,905,60013.7%$32,784$37,362$14,414$16,156$1,74212.1% $2,786,100$3,158,30013.4%$54,972$62,416$24,170$26,990$2,82011.7% $2,000,000$2,000,0000.0%$39,250$39,250$17,257$16,973($284)-1.6% * As property value increases, the market value exclusion is phased out at $413,800 & over. Per county assessor, residential market values increased overall approx. 19%.