HomeMy Public PortalAbout08.17.2021 Complete Work Session Packet Posted 5/29/2009 Page 1 of 1
WORK SESSION AGENDA
MEDINA CITY COUNCIL
Tuesday, August 17, 2021
6:00 P.M.
Medina City Hall
2052 County Road 24
I. Call to Order
II. 2022 Budget Discussion
III. Adjourn
Posted 8.12.2021
MEMORANDUM
TO: Mayor and Medina City Council
FROM: Scott Johnson, City Administrator
DATE OF REPORT: August 11, 2021
DATE OF MEETING: August 17, 2021
SUBJECT: August 17, 2021 - Work Session
Work Session 6:00 PM
2022 Budget Discussion – General Fund
Finance Director Erin Barnhart and staff have been working on the draft 2022 budget. The third
budget discussion will center on the draft general fund budget. Next, the draft 2022 preliminary
budget will be brought forward for discussion at the 6 PM September 7th Work Session and staff
will request approval of the preliminary 2022 budget at the City Council Meeting at 7 PM that
night. The preliminary budget approved in September can be reduced but cannot be increased
with the final budget approval in December. Attached is the memo and draft budget information
from Finance Director Barnhart.
MEMORANDUM
TO: Mayor and City Council Members
FROM: Erin Barnhart, Finance Director
DATE: August 17, 2021
SUBJ: 2022 Preliminary General Fund Budget Summary
Property Tax Levy
Preliminary calculations from Hennepin County estimate a 6.8% market value increase and a
7.6% tax capacity increase. The market value increase is attributed to development growth in
2020 (3%) and market value increases on existing homes. In addition to growth, a debt service
levy decrease provides ~$127,000 (pg.1, line 36) of additional tax revenue while maintaining a
flat tax rate. It is proposed that any surplus tax revenue be allocated to the future fire facility.
Proposed 2022 tax rate: 22.492%; 0% increase from 2021.
General Fund – see attached pg. 1, General Fund Budget Summary
The following is a summary of 2022 General Fund budget estimations and highlighted areas
where increases are expected, or negotiations are in process.
General Increases
• Administration – Wages/Benefits/Insurance. (Ln. 13)
• Elections – Election judges, supplies and potential need for an additional precinct. (Ln.
14)
• Assessing – Contract with Hennepin County to cover Commercial/ Industrial. Budgeted
full contract increase when we move 100% to County assessing contract. (Ln. 15)
• Planning & Zoning – Wages/Benefits/Insurance and liability insurance increase. (Ln. 16)
• Data Processing – Request for Quote in process for IT Consultant Service; budgeted for
an increase can be lowered depending on actual cost of new contract. Budgeted the
addition of workflow software – online form submittal and payment. (Ln. 18)
• Facilities– HVAC maintenance, utilities. (Ln. 19-20)
• Police – Wages/Benefits, Workers Comp rates, liability, and auto insurance, Lexipol
contract maintenance, supplies, fuel, and training. (Ln. 23-24)
• Building Inspections – Addition of full-time administrative assistant. Building inspector
contract increase. Increases are 100% covered by permit revenues. (Ln. 26)
• PW/Parks – Wages/Benefits/Insurance, general contract increases and fuel. (Ln. 29-33)
Current Contract Negotiations
• Fire
• IT Consultant
• Police Union (LELS)
Work Session
2
Staffing
• Move PW/Planning Administrative Assistant to 100% public works department (Public
Works facility) - current 65/35 split between PW and Planning. The current position is
also split between PW facility and City Hall.
• Addition of full-time Building Administrative Assistant (City Hall) – as discussed at the
July 20th work session, this position will assist in other duties as directed by the Planning
Director, allowing for a reduction in consultant fees.
• Promote Accountant II to Accountant I. Moves position up one pay grade and adds two
step increases that will be applied over the next two years.
o This staff member is currently performing all functions of the Accountant I
position and is an integral part of maintaining segregation of duties. The finance
department has two full-time staff and segregation of duties and internal controls
are heavily monitored in our annual audit
• COLA increase – Union negotiations in process. 3.5% currently budgeted.
• Medical Insurance – 10% increase estimated (6% employer, 4% employee)
o 2021 rate increase was 7%. The market rates will be released in October and
budget will be adjusted accordingly.
Tax Assessment & Levy Timeline
Budget Open House and Preliminary Levy Certification Resolution – September 7, 2021
Certify Preliminary Levy – September 30, 2021, deadline
Truth in Taxation Notices (TNT) – November distribution
TNT Meeting/Final Budget – December 7, 2021
Certify Final Levy – December 30, 2021, deadline
CITY OF MEDINA
GENERAL FUND
PRELIMINARY 2022 BUDGET SUMMARY
2022 Amount Percentage
2019 2019 2020 2020 2021 2021 Prelim Increase Increase
Budget Actual Budget Actual Budget YTD Budget (Decrease) (Decrease)
REVENUES & OTHER FINANCING SOURCES:
1 Property Tax Levy 3,325,897 3,280,862 3,434,452 3,344,141 3,731,800 1,917,462 4,145,200 413,400 11.1%
2 Other Taxes 33,000 86,330 75,000 91,711 75,000 49,160 85,000 10,000 13.3%
3 Licenses and Permits 377,400 599,726 390,669 717,380 391,269 432,419 492,500 101,231 25.9%
4 Intergovernmental 263,910 295,468 288,773 824,640 288,773 483,618 303,773 15,000 5.2%
5 Charges for Services 123,146 153,911 138,087 99,332 141,254 110,609 143,074 1,820 1.3%
6 Fines and Forfeitures 110,000 98,187 95,000 77,157 95,000 43,820 95,000 0 0.0%
7 Special Assessments 1,715 444 0 439 0 16 0 0 N/A
8 Miscellaneous 123,698 223,574 164,359 303,106 131,875 154,006 97,707 (34,168) -25.9%
9 Sale of Assets 0000000 0 N/A
10 Transfers In 213,572 213,573 220,784 220,784 227,409 0 234,230 6,821 3.0%
11 Total Revenues & Other Financing Sources 4,572,338 4,952,074 4,807,124 5,678,690 5,082,380 3,191,108 5,596,484 514,104 10.1%
EXPENDITURES & OTHER FINANCING USES:
General Government:
12 Mayor & Council 25,146 26,264 25,645 25,525 25,544 15,842 25,544 (0) 0.0%
13 Administration 630,578 732,195 662,230 669,973 664,268 391,929 692,480 28,212 4.2%
14 Elections 11,400 1,378 15,400 34,817 15,400 0 24,617 9,217 59.8%
15 Assessing 93,589 101,144 98,065 104,750 104,315 59,382 172,500 68,185 65.4%
16 Planning & Zoning 189,411 184,493 191,032 162,923 191,094 101,802 203,651 12,557 6.6%
17 Comprehensive Plan 8,000 0 8,000 0 8,000 0 8,000 0 0.0%
18 Data Processing 81,583 84,061 88,704 87,517 90,704 49,418 118,000 27,296 30.1%
19 Police/Public Works Facility 76,415 67,410 77,500 75,524 81,500 39,961 87,800 6,300 7.7%
20 Municipal Building 60,810 46,936 61,000 44,012 58,800 17,631 56,400 (2,400) -4.1%
21 Unallocated 0 0 0 0 0 0 0 0 N/A
22 Total General Government 1,176,932 1,243,880 1,227,576 1,205,040 1,239,625 675,964 1,388,991 149,366 12.0%
Public Safety:
23 Police 1,649,125 1,647,906 1,737,110 1,818,689 1,849,789 1,054,696 2,017,843 168,054 9.1%
24 Police Records Management 8,700 8,905 13,500 9,142 13,500 9,599 14,200 700 5.2%
25 Fire 446,242 425,597 419,111 453,225 408,130 260,325 441,448 33,318 8.2%
26 Building Inspections 318,343 339,170 330,664 425,195 329,479 105,101 441,089 111,610 33.9%
27 Emergency Management 5,200 4,739 5,800 146,986 5,800 6,236 5,825 25 0.4%
28 Total Public Safety 2,427,610 2,426,318 2,506,185 2,853,237 2,606,698 1,435,958 2,920,405 313,707 12.0%
Public Works:
29 Public Works 727,877 752,426 751,401 589,176 741,356 350,437 797,130 55,774 7.5%
30 Sanitation & Recycling 20,080 15,031 26,001 13,798 26,539 9,236 27,253 714 2.7%
31 Total Public Works 747,957 767,457 777,402 602,973 767,895 359,672 824,384 56,488 7.4%
Parks & Recreation:
32 Community Building 41,146 35,248 41,808 28,494 42,076 20,284 41,002 (1,074) -2.6%
33 Parks 170,970 205,705 170,944 176,663 186,341 87,029 232,087 45,746 24.5%
34 Total Parks & Recreation 212,116 240,954 212,752 205,156 228,417 107,313 273,088 44,671 19.6%
Economic Development Housing 0 0 56,880 0 57,010 0 57,907 897 1.6%
35 Transfers Out 4,000 404,000 4,000 4,000 4,000 500,000 4,000 0 0.0%
36 Transfer to Fire Facility 0 0 0 0 0 0 127,708 127,708 N/A
37 Total Expenditures & Other Financing Uses 4,568,615 5,082,608 4,784,795 4,870,407 4,903,645 3,078,906 5,596,484 692,839 14.1%
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER (UNDER)
38 EXPENDITURES AND OTHER FINANCING USES 3,723 (130,534) 22,329 808,283 178,735 112,202 0 (178,735) -100.0%
1
City of Medina
2022 Property Tax Levy Scenario Summary
Actual Proposed
Pay Pay
2021 2022
Property Tax Information:
1 Estimated Market Value Change (Taxable)N/A 6.8%
2 Estimated Tax Capacity Change (Taxable)N/A 7.6%
3
4 General Fund Levy $3,731,800 $4,145,200
5 % Change N/A 11.1%
6
7 Debt Service & Capital Levies $891,059 $832,997
8 % Change N/A -6.5%
9
10 Total Levy $4,622,859 $4,978,197
11 % Change N/A 7.7%
12
13 City Local Tax Capacity Rate 22.492% 22.492%
14 % Change N/A 0.0%
15
16
17 Estimated Property Taxes:
18
19 $700,000 Home With No Market Value Change $1,687 $1,687
20 % Change N/A 0.0%
21
22 $700,000 Home With 3.0% Market Value Increase $1,687 $1,766
23 % Change N/A 4.7%
24
25 $5,000,000 C/I Property With No Market Value Change $22,154 $22,154
26 % Change N/A 0.0%
27
28 $5,000,000 C/I Property With 3.0% Market Value Increase $22,154 $23,055
29 % Change N/A 4.1%
2
City of Medina
Property Tax Levies
2022 Proposed
Proposed Amount Percentage
Pay Pay Increase Increase
2021 2022 (Decrease) (Decrease)
1 General Fund Levy 3,731,800 4,145,200 413,400 11.1%
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 212,151 216,615 4,464 2.1%
8 2013A G.O. Refunding Bonds (2007A recharacterized CIP portion) 134,757 132,479 (2,278) -1.7%
9
10 Total Public Works and Police Department Facility 346,908 349,094 2,186 0.6%
11
12 Other Debt Service:
13
14 2011B Taxable G.O. Improvement Bonds - Hunter Drive North 61,000 0 (61,000) -100.0%
15 2015A G.O. Improvement Bonds - Tower Drive 58,651 59,403 752 1.3%
16
17 Total Other Debt Service 119,651 59,403 (60,248) -50.4%
Capital Levies:
18 Municipal Park Fund Levy 112,000 112,000 0 0.0%
19 Capital Equipment Fund Levy 312,500 312,500 0 0.0%
20
21 Total Capital Levies 424,500 424,500 0 0.0%
22
23 Total Debt Service & Capital Levies 891,059 832,997 (58,062) -6.5%
24
25 Total Levies 4,622,859 4,978,197 355,338 7.7%
3
City of Medina
Property Tax Levy
2022 Proposed
4
City of Medina
2022 Proposed Property Tax Scenario
Residential Homesteads
2021 2022 2021-2022
Budget Proposed Change
1 City Tax Rate:22.492%22.492%0.0%
2
3 General Fund Levy:$3,731,800 $4,145,200 $413,400
4
5 Debt Service & Capital Levies:$891,059 $832,997 ($58,062)
6
7 Total Levy:$4,622,859 $4,978,197 $355,338
8
9 Change in Total Levy:7.7%
10
11 2021 CITY PROPERTY TAXES
12
13 Homestead City Local City
14 Market Market Value Tax Tax Capacity Property
15 Value Exclusion Capacity Rate Taxes
16 2021 2021 2021 2021 2021
17
18 $100,000 ($28,200)$718 22.492%$161
19 $200,000 ($19,200)$1,808 22.492%$407
20 $300,000 ($10,200)$2,898 22.492%$652
21 $400,000 ($1,200)$3,988 22.492%$897
22 $500,000 $0 $5,000 22.492%$1,125
23 $600,000 $0 $6,250 22.492%$1,406
24 $700,000 $0 $7,500 22.492%$1,687
25 $800,000 $0 $8,750 22.492%$1,968
26 $900,000 $0 $10,000 22.492%$2,249
27 $1,000,000 $0 $11,250 22.492%$2,530
28
29 2022 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 2021 Exclusion Capacity Rate Taxes Increase Increase
34 NO CHANGE 2022 2022 2022 2022 (Decrease)(Decrease)
35
36 $100,000 ($28,200)$718 22.492%$161 $0 0.0%
37 $200,000 ($19,200)$1,808 22.492%$407 $0 0.0%
38 $300,000 ($10,200)$2,898 22.492%$652 $0 0.0%
39 $400,000 ($1,200)$3,988 22.492%$897 $0 0.0%
40 $500,000 $0 $5,000 22.492%$1,125 $0 0.0%
41 $600,000 $0 $6,250 22.492%$1,406 $0 0.0%
42 $700,000 $0 $7,500 22.492%$1,687 $0 0.0%
43 $800,000 $0 $8,750 22.492%$1,968 $0 0.0%
44 $900,000 $0 $10,000 22.492%$2,249 $0 0.0%
45 $1,000,000 $0 $11,250 22.492%$2,530 $0 0.0%
46
47 2022 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE)
48
49 Market
50 Value Homestead City Local City Property Percentage
51 2021 Market Value Tax Tax Capacity Property Taxes Tax
52 INCREASE OF Exclusion Capacity Rate Taxes Increase Increase
53 2.0%2022 2022 2022 2022 (Decrease)(Decrease)
54
55 $102,000 ($28,100)$739 22.492%$166 $5 2.9%
56 $204,000 ($18,900)$1,851 22.492%$416 $10 2.4%
57 $306,000 ($9,700)$2,963 22.492%$666 $15 2.2%
58 $408,000 ($500)$4,075 22.492%$917 $20 2.2%
59 $510,000 $0 $5,125 22.492%$1,153 $28 2.5%
60 $612,000 $0 $6,400 22.492%$1,440 $34 2.4%
61 $714,000 $0 $7,675 22.492%$1,726 $39 2.3%
62 $816,000 $0 $8,950 22.492%$2,013 $45 2.3%
63 $918,000 $0 $10,225 22.492%$2,300 $51 2.3%
64 $1,020,000 $0 $11,500 22.492%$2,587 $56 2.2%
65
66 2022 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE)
67
68 Market
69 Value Homestead City Local City Property Percentage
70 2021 Market Value Tax Tax Capacity Property Taxes Tax
71 INCREASE OF Exclusion Capacity Rate Taxes Increase Increase
72 4.0%2022 2022 2022 2022 (Decrease)(Decrease)
73
74 $104,000 ($27,900)$761 22.492%$171 $10 6.0%
75 $208,000 ($18,500)$1,895 22.492%$426 $20 4.8%
76 $312,000 ($9,200)$3,028 22.492%$681 $29 4.5%
77 $416,000 $0 $4,160 22.492%$936 $39 4.3%
78 $520,000 $0 $5,250 22.492%$1,181 $56 5.0%
79 $624,000 $0 $6,550 22.492%$1,473 $68 4.8%
80 $728,000 $0 $7,850 22.492%$1,766 $79 4.7%
81 $832,000 $0 $9,150 22.492%$2,058 $90 4.6%
82 $936,000 $0 $10,450 22.492%$2,350 $101 4.5%
83 $1,040,000 $0 $11,750 22.492%$2,643 $113 4.4%
5