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HomeMy Public PortalAbout09.04.2018, sp. mtg. packet Posted 5/29/2009 Page 1 of 1 SPECIAL MEETING AGENDA MEDINA CITY COUNCIL Tuesday, September 4, 2018 6:00 P.M. Medina City Hall 2052 County Road 24 I. Call to Order II. 2019 Budget Open House III. Adjourn Posted 8/30/2018 MEMORANDUM TO: Medina City Council FROM: Erin Barnhart, Finance Director DATE OF REPORT: August 30, 2018 DATE OF MEETING: September 4, 2018 SUBJECT: Budget Open House – 6:00 PM 2019 Budget – General Fund Budget and Preliminary Levy Staff will present information on the proposed general fund budget for 2019. This includes a 3% increase for the general fund levy. There are two options being discussed for the overall debt service levy regarding the Municipal Park Fund Levy. Preliminary estimations from Hennepin County show a market value (MV) increase of 2.5% for 2019; a decrease from 2018’s 5.6% overall MV increase. The proposed 2019 tax rate options for Medina are: Option 1: 21.503%, which is a 0.1% decrease from 2018. $14,000 Municipal Park Levy Option 2: 21.667%, which is a 0.7% increase from 2018. $44,000 Municipal Park Levy Reserves Per city policy: As of 12/31/17, the general fund balance goal was $1,844,435 (using 5/12 of 2018 budgeted expenditures of $4,426,643). The General fund balance at 12/31/17 was $3,136,438 or $1,292,003 above the goal; $611,344 being surplus from 2017 and the remaining $680,659 reserves. Of the general fund reserves, $267,500 has been assigned for specific functions, leaving $413,159 of unassigned reserves in 2018. The reserves assigned within the general fund are as follows: - $105,000 post-retirement benefits - $125,000 whistle-less crossing at CR 116/ Hwy 55 - $37,500 potential litigation (remaining from original $280,000) Total - $267,500 Action Needed Recommend option 1 or 2 in determining the preliminary tax levy for 2019 City of Medina 2019 Property Tax Levy Scenario Summary Actual Proposed Pay Pay 2018 2019 Property Tax Information: Estimated Market Value Change (Taxable)N/A 2.5% Estimated Tax Capacity Change (Taxable)N/A 3.0% General Fund Levy $3,229,026 $3,325,897 % Change N/A 3.0% Debt Service & Capital Levies $675,791 $676,997 % Change N/A 0.2% Total Levy $3,904,817 $4,002,894 % Change N/A 2.5% City Local Tax Capacity Rate 21.523% 21.503% % Change N/A -0.1% Estimated Property Taxes: $700,000 Home With No Market Value Change $1,749 $1,747 % Change N/A -0.1% $700,000 Home With 5.0% Market Value Increase $1,749 $1,848 % Change N/A 5.7% $5,000,000 C/I Property With No Market Value Change $21,200 $21,180 % Change N/A -0.1% $5,000,000 C/I Property With 5.0% Market Value Increase $21,200 $22,255 % Change N/A 5.0% 1 City of Medina Property Tax Levies 2019 Proposed Proposed Amount Percentage Pay Pay Increase Increase 2018 2019 (Decrease) (Decrease) 1 General Fund Levy 3,229,026 3,325,897 96,871 3.0% 2 3 Debt Service & Capital Levies: 4 5 Public Works and Police Department Facility: 6 7 2012A G.O. Capital Improvement Plan (CIP) Bonds - $6.1 million 243,915 241,710 (2,205) -0.9% 8 2013A G.O. Refunding Bonds (2007A recharacterized CIP portion)133,917 135,681 1,764 1.3% 9 10 Total Public Works and Police Department Facility 377,832 377,391 (441) -0.1% 11 12 Other Debt Service & Capital Levies: 13 14 2010A G.O. Improvement Bonds - Holy Name Drive and Pioneer Trail 29,500 29,500 0 0.0% 15 2011A G.O. Bonds - Hunter Drive South 14,000 0 (14,000) -100.0% 16 2011B Taxable G.O. Improvement Bonds - Hunter Drive North 58,000 59,000 1,000 1.7% 17 2015A G.O. Improvement Bonds - Tower Drive 61,959 62,606 647 1.0% 18 Municipal Park Fund Levy 0 14,000 14,000 N/A 19 Capital Equipment Fund Levy 134,500 134,500 0 0.0% 20 21 Total Other Debt Service & Capital Levies 297,959 299,606 1,647 0.6% 22 23 Total Debt Service & Capital Levies 675,791 676,997 1,206 0.2% 24 25 Total Levies 3,904,817 4,002,894 98,077 2.5% 2 City of Medina 2019 Proposed Property Tax Scenario Residential Homesteads SCENARIO - GENERAL FUND LEVY PLUS 3.0% 2018 2019 2018-2019 Budget Proposed Change 1 City Tax Rate:21.523% 21.503% -0.1% 2 3 General Fund Levy:$3,229,026 $3,325,897 $96,871 4 5 Debt Service & Capital Levies:$675,791 $676,997 $1,206 6 7 Total Levy:$3,904,817 $4,002,894 $98,077 8 9 Change in Total Levy:2.5% 10 11 2018 CITY PROPERTY TAXES 12 13 Homestead City Local City 14 Market Market Value Tax Tax Capacity Property 15 Value Exclusion Capacity Rate Taxes 16 2018 2018 2018 2018 2018 17 18 $100,000 ($28,200) $718 21.523% $155 19 $200,000 ($19,200) $1,808 21.523% $389 20 $300,000 ($10,200) $2,898 21.523% $624 21 $400,000 ($1,200) $3,988 21.523% $858 22 $500,000 $0 $5,000 21.523% $1,076 23 $600,000 $0 $6,250 21.523% $1,345 24 $750,000 $0 $8,125 21.523% $1,749 25 $800,000 $0 $8,750 21.523% $1,883 26 $900,000 $0 $10,000 21.523% $2,152 27 $1,000,000 $0 $11,250 21.523% $2,421 28 29 2019 CITY PROPERTY TAXES (WITH NO MARKET VALUE CHANGE) 30 31 Market Homestead City Local City Property Percentage 32 Value Market Value Tax Tax Capacity Property Taxes Tax 33 2019 Exclusion Capacity Rate Taxes Increase Increase 34 NO CHANGE 2019 2019 2019 2019 (Decrease) (Decrease) 35 36 $100,000 ($28,200) $718 21.503% $154 ($0) -0.1% 37 $200,000 ($19,200) $1,808 21.503% $389 ($0) -0.1% 38 $300,000 ($10,200) $2,898 21.503% $623 ($1) -0.1% 39 $400,000 ($1,200) $3,988 21.503% $858 ($1) -0.1% 40 $500,000 $0 $5,000 21.503% $1,075 ($1) -0.1% 41 $600,000 $0 $6,250 21.503% $1,344 ($1) -0.1% 42 $750,000 $0 $8,125 21.503% $1,747 ($2) -0.1% 43 $800,000 $0 $8,750 21.503% $1,882 ($2) -0.1% 44 $900,000 $0 $10,000 21.503% $2,150 ($2) -0.1% 45 $1,000,000 $0 $11,250 21.503% $2,419 ($2) -0.1% 46 47 2019 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE) 48 49 Market 50 Value Homestead City Local City Property Percentage 51 2019 Market Value Tax Tax Capacity Property Taxes Tax 52 INCREASE OF Exclusion Capacity Rate Taxes Increase Increase 53 5.0%2019 2019 2019 2019 (Decrease) (Decrease) 54 55 $105,000 ($27,800) $772 21.503% $166 $11 7.4% 56 $210,000 ($18,300) $1,917 21.503% $412 $23 5.9% 57 $315,000 ($8,900) $3,061 21.503% $658 $34 5.5% 58 $420,000 $0 $4,200 21.503% $903 $45 5.2% 59 $525,000 $0 $5,313 21.503% $1,142 $66 6.2% 60 $630,000 $0 $6,625 21.503% $1,425 $79 5.9% 61 $787,500 $0 $8,594 21.503% $1,848 $99 5.7% 62 $840,000 $0 $9,250 21.503% $1,989 $106 5.6% 63 $945,000 $0 $10,563 21.503% $2,271 $119 5.5% 64 $1,050,000 $0 $11,875 21.503% $2,553 $132 5.5% 3 City of Medina 2019 Property Tax Levy Scenario Summary Actual Proposed Pay Pay 2018 2019 Property Tax Information: Estimated Market Value Change (Taxable)N/A 2.5% Estimated Tax Capacity Change (Taxable)N/A 3.0% General Fund Levy $3,229,026 $3,325,897 % Change N/A 3.0% Debt Service & Capital Levies $675,791 $706,997 % Change N/A 4.6% Total Levy $3,904,817 $4,032,894 % Change N/A 3.3% City Local Tax Capacity Rate 21.523% 21.667% % Change N/A 0.7% Estimated Property Taxes: $700,000 Home With No Market Value Change $1,749 $1,760 % Change N/A 0.7% $700,000 Home With 5.0% Market Value Increase $1,749 $1,862 % Change N/A 6.5% $5,000,000 C/I Property With No Market Value Change $21,200 $21,342 % Change N/A 0.7% $5,000,000 C/I Property With 5.0% Market Value Increase $21,200 $22,425 % Change N/A 5.8% 1 City of Medina Property Tax Levies 2019 Proposed Proposed Amount Percentage Pay Pay Increase Increase 2018 2019 (Decrease) (Decrease) 1 General Fund Levy 3,229,026 3,325,897 96,871 3.0% 2 3 Debt Service & Capital Levies: 4 5 Public Works and Police Department Facility: 6 7 2012A G.O. Capital Improvement Plan (CIP) Bonds - $6.1 million 243,915 241,710 (2,205) -0.9% 8 2013A G.O. Refunding Bonds (2007A recharacterized CIP portion)133,917 135,681 1,764 1.3% 9 10 Total Public Works and Police Department Facility 377,832 377,391 (441) -0.1% 11 12 Other Debt Service & Capital Levies: 13 14 2010A G.O. Improvement Bonds - Holy Name Drive and Pioneer Trail 29,500 29,500 0 0.0% 15 2011A G.O. Bonds - Hunter Drive South 14,000 0 (14,000) -100.0% 16 2011B Taxable G.O. Improvement Bonds - Hunter Drive North 58,000 59,000 1,000 1.7% 17 2015A G.O. Improvement Bonds - Tower Drive 61,959 62,606 647 1.0% 18 Municipal Park Fund Levy 0 44,000 44,000 N/A 19 Capital Equipment Fund Levy 134,500 134,500 0 0.0% 20 21 Total Other Debt Service & Capital Levies 297,959 329,606 31,647 10.6% 22 23 Total Debt Service & Capital Levies 675,791 706,997 31,206 4.6% 24 25 Total Levies 3,904,817 4,032,894 128,077 3.3% 2 City of Medina 2019 Proposed Property Tax Scenario Residential Homesteads SCENARIO - GENERAL FUND LEVY PLUS 3.0% 2018 2019 2018-2019 Budget Proposed Change 1 City Tax Rate:21.523% 21.667% 0.7% 2 3 General Fund Levy:$3,229,026 $3,325,897 $96,871 4 5 Debt Service & Capital Levies:$675,791 $706,997 $31,206 6 7 Total Levy:$3,904,817 $4,032,894 $128,077 8 9 Change in Total Levy:3.3% 10 11 2018 CITY PROPERTY TAXES 12 13 Homestead City Local City 14 Market Market Value Tax Tax Capacity Property 15 Value Exclusion Capacity Rate Taxes 16 2018 2018 2018 2018 2018 17 18 $100,000 ($28,200) $718 21.523% $155 19 $200,000 ($19,200) $1,808 21.523% $389 20 $300,000 ($10,200) $2,898 21.523% $624 21 $400,000 ($1,200) $3,988 21.523% $858 22 $500,000 $0 $5,000 21.523% $1,076 23 $600,000 $0 $6,250 21.523% $1,345 24 $750,000 $0 $8,125 21.523% $1,749 25 $800,000 $0 $8,750 21.523% $1,883 26 $900,000 $0 $10,000 21.523% $2,152 27 $1,000,000 $0 $11,250 21.523% $2,421 28 29 2019 CITY PROPERTY TAXES (WITH NO MARKET VALUE CHANGE) 30 31 Market Homestead City Local City Property Percentage 32 Value Market Value Tax Tax Capacity Property Taxes Tax 33 2019 Exclusion Capacity Rate Taxes Increase Increase 34 NO CHANGE 2019 2019 2019 2019 (Decrease) (Decrease) 35 36 $100,000 ($28,200) $718 21.667% $156 $1 0.7% 37 $200,000 ($19,200) $1,808 21.667% $392 $3 0.7% 38 $300,000 ($10,200) $2,898 21.667% $628 $4 0.7% 39 $400,000 ($1,200) $3,988 21.667% $864 $6 0.7% 40 $500,000 $0 $5,000 21.667% $1,083 $7 0.7% 41 $600,000 $0 $6,250 21.667% $1,354 $9 0.7% 42 $750,000 $0 $8,125 21.667% $1,760 $12 0.7% 43 $800,000 $0 $8,750 21.667% $1,896 $13 0.7% 44 $900,000 $0 $10,000 21.667% $2,167 $14 0.7% 45 $1,000,000 $0 $11,250 21.667% $2,438 $16 0.7% 46 47 2019 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE) 48 49 Market 50 Value Homestead City Local City Property Percentage 51 2019 Market Value Tax Tax Capacity Property Taxes Tax 52 INCREASE OF Exclusion Capacity Rate Taxes Increase Increase 53 5.0%2019 2019 2019 2019 (Decrease) (Decrease) 54 55 $105,000 ($27,800) $772 21.667% $167 $13 8.2% 56 $210,000 ($18,300) $1,917 21.667% $415 $26 6.7% 57 $315,000 ($8,900) $3,061 21.667% $663 $39 6.3% 58 $420,000 $0 $4,200 21.667% $910 $52 6.0% 59 $525,000 $0 $5,313 21.667% $1,151 $75 7.0% 60 $630,000 $0 $6,625 21.667% $1,435 $90 6.7% 61 $787,500 $0 $8,594 21.667% $1,862 $113 6.5% 62 $840,000 $0 $9,250 21.667% $2,004 $121 6.4% 63 $945,000 $0 $10,563 21.667% $2,289 $136 6.3% 64 $1,050,000 $0 $11,875 21.667% $2,573 $152 6.3% 3 CITY OF MEDINA GENERAL FUND PRELIMINARY 2019 BUDGET 2019 Amount Percentage 2016 2016 2017 2017 2018 Prelim Increase Increase Budget Actual Budget Actual Budget Budget (Decrease) (Decrease) REVENUES & OTHER FINANCING SOURCES: 1 Property Tax Levy 3,043,667 3,075,681 3,134,977 3,132,281 3,229,026 3,325,897 96,871 3.0% 2 Other Taxes 30,000 90,023 30,000 73,488 30,000 30,000 0 0.0% 3 Licenses and Permits 371,800 653,577 372,800 595,499 374,300 377,400 3,100 0.8% 4 Intergovernmental 220,618 256,925 207,618 256,433 232,118 263,910 31,792 13.7% 5 Charges for Services 114,964 133,645 112,831 143,411 124,564 111,146 (13,418) -10.8% 6 Fines and Forfeitures 115,000 88,792 105,000 96,050 105,000 110,000 5,000 4.8% 7 Special Assessments 1,000 356 1,000 12,545 0 1,715 1,715 N/A 8 Miscellaneous 144,881 203,485 128,167 182,453 108,225 123,698 15,473 14.3% 9 Sale of Assets 300 0 300 0 300 0 (300) -100.0% 10 Transfers In 211,164 201,987 217,048 217,049 223,110 228,573 5,463 2.4% 11 Total Revenues & Other Financing Sources 4,253,394 4,704,469 4,309,741 4,709,209 4,426,643 4,572,338 145,695 3.3% EXPENDITURES & OTHER FINANCING USES: General Government: 12 Mayor & Council 25,144 25,375 26,294 25,323 25,144 25,643 499 2.0% 13 Administration 586,815 696,463 591,789 568,959 602,321 635,610 33,289 5.5% 14 Elections 16,900 12,364 10,900 1,501 10,900 11,400 500 4.6% 15 Assessing 85,500 88,793 88,872 90,515 90,493 93,840 3,347 3.7% 16 Planning & Zoning 188,407 184,871 190,150 191,825 193,840 190,529 (3,311) -1.7% 17 Comprehensive Plan 8,000 53,318 8,000 125 8,000 8,000 0 0.0% 18 Data Processing 71,850 60,335 72,850 73,271 82,083 82,083 0 0.0% 19 Police/Public Works Facility 70,400 60,489 69,415 69,521 69,415 76,415 7,000 10.1% 20 Municipal Building 43,200 42,457 48,410 39,499 39,100 48,800 9,700 24.8% 21 Unallocated 2,300 2,100 2,300 0 2,100 2,100 0 0.0% 22 Total General Government 1,098,516 1,226,566 1,108,980 1,060,540 1,123,396 1,174,420 51,024 4.5% Public Safety: 23 Police 1,585,729 1,561,911 1,564,597 1,524,428 1,617,770 1,649,375 31,605 2.0% 24 Police Records Management 8,650 8,379 8,850 8,561 8,850 8,850 0 0.0% 25 Fire 373,550 403,064 394,172 426,262 424,716 446,242 21,526 5.1% 26 Building Inspections 295,391 324,625 300,006 240,697 312,013 320,483 8,470 2.7% 27 Emergency Management 5,200 6,554 5,200 4,246 5,200 5,200 0 0.0% 28 Total Public Safety 2,268,520 2,304,533 2,272,825 2,204,194 2,368,549 2,430,150 61,601 2.6% Public Works: 29 Public Works 681,533 620,653 708,212 618,315 706,455 731,599 25,144 3.6% 30 Sanitation & Recycling 15,057 14,087 15,112 13,302 18,146 20,080 1,934 10.7% 31 Total Public Works 696,590 634,740 723,324 631,617 724,601 751,678 27,077 3.7% Parks & Recreation: 32 Community Building 34,764 31,608 33,950 32,540 37,127 41,145 4,018 10.8% 33 Parks 153,004 166,931 168,662 165,077 170,970 170,944 (26) 0.0% 34 Total Parks & Recreation 187,768 198,539 202,612 197,617 208,097 212,089 3,992 1.9% 35 Transfers Out 2,000 202,000 2,000 2,000 2,000 4,000 2,000 100.0% 36 Total Expenditures & Other Financing Uses 4,253,394 4,566,378 4,309,741 4,095,967 4,426,643 4,572,338 145,695 3.3% EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) 37 EXPENDITURES AND OTHER FINANCING USES 0 138,092 0 613,242 0 (0) (0) N/A CITY OF MEDINA PROPERTY TAX SHARE BY TAXING AUTHORITY PAY 2018 Share 2018 in Cents Tax Rate County $0.44 42.808% Schools $0.26 25.464% * City $0.22 21.521% Other $0.07 6.960% ** $1.00 96.753% * School District #284 Wayzata ** Other includes various metro taxing districts, and other special taxing districts (excluding watershed) County $0.44 Schools $0.26 City $0.22 Other $0.07 CITY OF MEDINA PROPERTY TAX SHARE BY TAXING AUTHORITY PAY 2018 Share 2018 in Cents Tax Rate County $0.37 42.808% Schools $0.38 43.824% * City $0.19 21.521% Other $0.06 6.450% ** $1.00 114.603% * School District #879 Delano ** Other includes various metro taxing districts, and other special taxing districts (excluding watershed) County $0.37 Schools $0.38 City $0.19 Other $0.06 CITY OF MEDINA PROPERTY TAX SHARE BY TAXING AUTHORITY PAY 2018 Share 2018 in Cents Tax Rate County $0.45 42.808% Schools $0.25 24.024% * City $0.23 21.521% Other $0.07 6.960% ** $1.00 95.313% * School District #278 Orono ** Other includes various metro taxing districts, and other special taxing districts (excluding watershed) County $0.45 Schools $0.25 City $0.23 Other $0.07 CITY OF MEDINA PROPERTY TAX SHARE BY TAXING AUTHORITY PAY 2018 Share 2018 in Cents Tax Rate County $0.37 42.808% Schools $0.38 43.442% * City $0.19 21.521% Other $0.06 6.450% ** $1.00 114.221% * School District #883 Rockford ** Other includes various metro taxing districts, and other special taxing districts (excluding watershed) County $0.37 Schools $0.38 City $0.19 Other $0.06 MAJOR FUNDS 101 225 601 602 603 General Fund Park Dedication  Fund Water Fund Sewer Fund Storm Water Fund Fund Balance January 1, 2018 $3,615,586 $1,603,700 $2,360,985 $1,816,475 $298,912 Fund Balance September 1, 2018 $2,936,320 $1,564,411 $1,967,115 $1,784,759 $404,275 DEBT SERVICE 312 313 316 319 320/601 321/601 322 323 324 DEBT SERVICE PRINCIPLE PAYMENTS 2010A G.O.  Improvement  Bonds  2011A  Improvement  Bonds Hunter  South  2011B  Improvement  Bonds Hunter  North 2012A G.O. Capital  Improvement Bonds 2012B G.O. Refunding  Bonds 2013A G.O.  Refunding Bonds 2015A G.O.  Improvement Bonds 2016A G.O.  Refunding Bonds  (2008A) 2017A G.O.  Improvement  Bonds Deer Hill 2019 $25,000 $20,000 $90,000 $175,000 $455,000 $335,000 $120,000 $165,000 $0 2020 $30,000 $95,000 $175,000 $465,000 $340,000 $120,000 $170,000 $90,000 2021 $30,000 $100,000 $180,000 $90,000 $350,000 $120,000 $175,000 $95,000 2022 $100,000 $180,000 $355,000 $115,000 $175,000 $95,000 2023 $185,000 $360,000 $115,000 $185,000 $95,000 2024 $365,000 $115,000 $185,000 $95,000 2025 $370,000 $115,000 $100,000 2026 $380,000 $115,000 $100,000 2027 $390,000 $115,000 $105,000 2028 $395,000 $115,000 $105,000 2029 $405,000 $115,000 $105,000 2030 $420,000 $120,000 $110,000 2031 $430,000 $120,000 $115,000 2032 $440,000 2033 $455,000 2034 $465,000 TOTAL REMAINING PRINCIPLE $85,000 $20,000 $385,000 $5,410,000 $1,010,000 $1,740,000 $1,520,000 $1,055,000 $1,210,000 TOTAL OUTSTANDING DEBT PRINCIPLE $12,435,000 City of Medina Major Fund Balances Preliminary 2019 Budget