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HomeMy Public PortalAbout06.21.2022 Work Session Packet Posted 5/29/2009 Page 1 of 1 WORK SESSION AGENDA MEDINA CITY COUNCIL Tuesday, June 21, 2022 6:00 P.M. Medina City Hall 2052 County Road 24 I. Call to Order II. 2023 Budget Discussion III. Adjourn Posted 6.17.2022 MEMORANDUM TO: Mayor and City Council Members FROM: Erin Barnhart, Finance Director DATE: June 15, 2022 SUBJ: 2023 Preliminary General Fund Budget Summary Background Each department has reviewed their budgets and analyzed line items that will be increased or decreased based on current market and economy. Staff is currently collaborating with vendors to determine proposed increases and supply chain issues for 2023 as we are seeing the addition of surcharges on invoices in 2022. Property Tax Levy Preliminary calculations from Hennepin County estimate a 18.6% market value increase and a 19.8% tax capacity increase. Of the market value increase, 2.5% is attributed to new development and tax base growth from 2021. Levy and expenditure increase includes a transfer of $150,000 to the Fire Facility Fund. Preliminary 2023 tax rate: 20.63%; a decrease of 8.7% from 2022 General Fund General Fund revenue and expenditures are preliminarily budget at an increase of 6.1% respectively. The following is a summary of 2023 General Fund budget estimations and highlighted areas where increases are expected, or negotiations are in process. • Inflation Increases o Fuel o Materials/Supplies o Contracted Services – addition of surcharges • General Increases o Insurance (Property & Auto) • Current Contract Negotiations o Fire – Waiting on 2 of 4 fire budgets.  Hamel Volunteer Fire submitted increase of $15,650, 5.55%.  Maple Plain Fire will receive 5% inc. per contract (CPI increase not to exceed 5%). • Staffing o Second Police Sergeant – promotion of existing Police Officer – Total Compensation $8,000 inc. o Full-time Utility Billing Clerk – Total Compensation $80,000. o COLA 3.5% approved for 2023 – currently gathering market comparisons from neighboring cities to assess market increases, CPI and Social Security COLA. Work Session II 2 o Medical Insurance – 15% increase budgeted due to market uncertainty (10% employer, 5% employee).  2022 rate increase was 7%. The market rates will be released in October and budget will be adjusted accordingly with final budget approval in December. • Building Permits o Permit revenues/expenditures are budgeted to increase (no levy impact). o YTD single family home permits issued = 24 General Fund Revenue Losses • Steady decline in Federal Safe & Sober Grant revenue – a decrease of $19,000 budgeted for 2023. • Court Fine revenue – decrease of $40,000 budgeted for 2023. • Historically, interest earnings on fund balances have been budgeted conservatively, due to the current market that budget line item will be removed – decrease of $30,000 for 2023. • Antenna revenue (100% transferred out of the general fund to equipment and affordable housing fund) – decrease of $40,000 due to T-Mobile/Sprint merger and consolidation of equipment on tower. Discussion Items • Supply Chain and Cost Increases – Heavy Machinery and Squads (preliminary discussion; CIP will be discussed at July work session). • COLA and Market Increases Questions/Comments CITY OF MEDINA GENERAL FUND PRELIMINARY 2023 BUDGET 2023 Amount Percentage 2020 2020 2021 2021 2022 2022 Prelim Increase Increase Budget Actual Budget Actual Budget YTD Budget (Decrease) (Decrease) REVENUES & OTHER FINANCING SOURCES: 1 Property Tax Levy 3,434,452 3,344,141 3,731,800 3,620,188 4,147,600 0 4,657,752 510,152 12.3% 2 Other Taxes 75,000 91,711 75,000 104,420 85,000 0 75,000 (10,000)-11.8% 3 Licenses and Permits 390,669 717,380 391,269 776,618 492,500 275,739 509,400 16,900 3.4% 4 Intergovernmental 288,773 824,640 288,773 700,634 303,773 87,343 283,000 (20,773)-6.8% 5 Charges for Services 138,087 99,332 141,254 148,867 143,074 95,708 147,871 4,797 3.4% 6 Fines and Forfeitures 95,000 77,157 95,000 63,903 95,000 20,176 55,000 (40,000)-42.1% 7 Special Assessments 0439032000 0 N/A 8 Miscellaneous 164,359 303,106 131,875 54,835 240,881 178,457 122,018 (118,863)-49.3% 9 Sale of Assets 0000000 0 N/A 10 Transfers In 220,784 220,784 227,409 272,409 234,230 0 241,257 7,027 3.0% 11 Total Revenues & Other Financing Sources 4,807,124 5,678,690 5,082,380 5,741,908 5,742,058 657,422 6,091,298 349,240 6.1% EXPENDITURES & OTHER FINANCING USES: General Government: 12 Mayor & Council 25,544 25,525 25,544 26,575 25,544 12,883 25,544 (0)0.0% 13 Administration 662,230 667,970 664,268 644,691 691,552 276,400 804,545 112,993 16.3% 14 Elections 15,400 34,817 15,400 364 24,617 1,702 24,692 75 0.3% 15 Assessing 98,065 104,750 104,315 102,018 172,499 51,205 172,500 1 0.0% 16 Planning & Zoning 191,032 162,923 191,094 181,960 206,624 88,414 212,971 6,347 3.1% 17 Comprehensive Plan 8,000 0 8,000 0 8,000 0 8,000 0 0.0% 18 Data Processing 88,704 87,517 90,704 92,164 101,000 49,710 104,000 3,000 3.0% 19 Police/Public Works Facility 77,500 77,527 79,500 61,394 87,800 47,216 89,300 1,500 1.7% 20 Municipal Building 61,000 44,012 58,800 42,775 56,400 21,773 59,800 3,400 6.0% 21 Unallocated 0 0 0 0 0 0 0 0 N/A 22 Total General Government 1,227,475 1,205,040 1,237,625 1,151,941 1,374,036 549,302 1,501,351 127,315 9.3% Public Safety: 23 Police 1,737,110 1,818,689 1,849,789 1,872,072 2,023,300 882,512 2,151,012 127,712 6.3% 24 Police Records Management 13,500 9,142 13,500 9,599 14,200 10,079 10,250 (3,950)-27.8% 25 Fire 419,111 453,225 408,130 422,483 441,448 188,638 465,000 23,552 5.3% 26 Building Inspections 330,664 425,195 329,479 458,271 441,953 43,513 481,972 40,019 9.1% 27 Emergency Management 5,800 146,986 5,800 6,574 6,050 3,482 6,250 200 3.3% 28 Total Public Safety 2,506,185 2,853,237 2,606,698 2,769,000 2,926,951 1,128,225 3,114,484 187,533 6.4% Public Works: 29 Public Works 751,401 640,113 743,356 614,492 793,620 276,838 837,407 43,787 5.5% 30 Sanitation & Recycling 26,001 13,798 26,539 14,601 25,322 2,252 23,949 (1,373)-5.4% 31 Total Public Works 777,402 653,911 769,895 629,093 818,942 279,090 861,357 42,414 5.2% Parks & Recreation: 32 Community Building 41,808 28,494 42,076 42,242 40,035 18,229 43,449 3,414 8.5% 33 Parks 193,373 176,663 186,341 185,588 231,241 57,735 251,532 20,291 8.8% 34 Total Parks & Recreation 235,181 205,156 228,417 227,831 271,276 75,964 294,981 23,705 8.7% Economic Development Housing 56,880 0 57,010 0 57,907 0 57,907 0 0.0% 35 Transfers Out 4,000 4,000 4,000 504,000 147,174 0 111,218 (31,727)-24.4% 36 Reserves 0 0 178,734 0 0 0 0 0 N/A 37 Transfer to Fire Facility 0 0 0 0 145,771 0 150,000 4,229 2.9% Total Transfers 4,000 4,000 182,734 504,000 292,945 0 261,218 (27,498)-10.8% 38 Total Expenditures & Other Financing Uses 4,807,123 4,921,344 5,082,379 5,281,864 5,742,058 2,032,581 6,091,298 353,469 6.1% EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) 39 EXPENDITURES AND OTHER FINANCING USES 1 757,346 1 460,044 (1) (1,375,158) (0) (4,229) -78.4% 1 City of Medina 2023 Property Tax Levy Scenario Summary Actual Proposed Pay Pay 2022 2023 Property Tax Information: 1 Estimated Market Value Change (Taxable)N/A 18.6% 2 Estimated Tax Capacity Change (Taxable)N/A 19.6% 3 4 General Fund Levy $4,147,600 $4,657,752 5 % Change N/A 12.3% 6 7 Debt Service & Capital Levies $832,997 $849,446 8 % Change N/A 2.0% 9 10 Total Levy $4,980,597 $5,507,198 11 % Change N/A 10.6% 12 13 City Local Tax Capacity Rate 22.596% 20.630% 14 % Change N/A -8.7% 15 16 17 Estimated Property Taxes: 18 19 $700,000 Home With No Market Value Change $1,695 $1,547 20 % Change N/A -8.7% 21 22 $700,000 Home With 10.0% Market Value Increase $1,728 23 % Change 24 25 $5,000,000 C/I Property With No Market Value Change $22,257 $22,154 26 % Change N/A -0.5% 27 28 $5,000,000 C/I Property With 10.0% Market Value Increase $31,461 29 % Change 2 City of Medina Property Tax Levies 2023 Proposed Proposed Amount Percentage Pay Pay Increase Increase 2022 2023 (Decrease) (Decrease) 1 General Fund Levy 4,147,600 4,657,752 510,152 12.3% 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 216,615 364,791 148,176 68.4% 8 2013A G.O. Refunding Bonds (2007A recharacterized CIP portion)132,479 0 (132,479) -100.0% 9 10 Total Public Works and Police Department Facility 349,094 364,791 15,697 4.5% 11 12 Other Debt Service: 13 14 2011B Taxable G.O. Improvement Bonds - Hunter Drive North 0 0 0 N/A 15 2015A G.O. Improvement Bonds - Tower Drive 59,403 60,155 752 1.3% 16 17 Total Other Debt Service 59,403 60,155 752 1.3% 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 832,997 849,446 16,449 2.0% 24 25 Total Levies 4,980,597 5,507,198 526,601 10.6% 3 City of Medine Property Tax Levies 2023 Proposed 4 City of Medina 2023 Proposed Property Tax Scenario Residential Homesteads 2022 2023 2022-2023 Budget Proposed Change 1 City Tax Rate:22.596%20.630%-8.7% 2 3 General Fund Levy:$4,147,600 $4,657,752 $510,152 4 5 Debt Service & Capital Levies:$832,997 $849,446 $16,449 6 7 Total Levy:$4,980,597 $5,507,198 $526,601 8 9 Change in Total Levy:10.6% 10 11 2022 CITY PROPERTY TAXES 12 13 Homestead City Local City 14 Market Market Value Tax Tax Capacity Property 15 Value Exclusion Capacity Rate Taxes 16 2022 2022 2022 2022 2022 17 18 $100,000 ($28,200)$718 22.596%$162 19 $200,000 ($19,200)$1,808 22.596%$409 20 $300,000 ($10,200)$2,898 22.596%$655 21 $400,000 ($1,200)$3,988 22.596%$901 22 $500,000 $0 $5,000 22.596%$1,130 23 $600,000 $0 $6,250 22.596%$1,412 24 $700,000 $0 $7,500 22.596%$1,695 25 $800,000 $0 $8,750 22.596%$1,977 26 $900,000 $0 $10,000 22.596%$2,260 27 $1,000,000 $0 $11,250 22.596%$2,542 28 29 2023 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 2023 2023 2023 2023 (Decrease)(Decrease) 35 36 $100,000 ($28,200)$718 20.630%$148 ($14)-8.7% 37 $200,000 ($19,200)$1,808 20.630%$373 ($36)-8.7% 38 $300,000 ($10,200)$2,898 20.630%$598 ($57)-8.7% 39 $400,000 ($1,200)$3,988 20.630%$823 ($78)-8.7% 40 $500,000 $0 $5,000 20.630%$1,032 ($98)-8.7% 41 $600,000 $0 $6,250 20.630%$1,289 ($123)-8.7% 42 $700,000 $0 $7,500 20.630%$1,547 ($147)-8.7% 43 $800,000 $0 $8,750 20.630%$1,805 ($172)-8.7% 44 $900,000 $0 $10,000 20.630%$2,063 ($197)-8.7% 45 $1,000,000 $0 $11,250 20.630%$2,321 ($221)-8.7% 46 47 2023 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 10.0%2023 2023 2023 2023 (Decrease)(Decrease) 54 55 $110,000 ($27,300)$827 20.630%$171 $8 5.2% 56 $220,000 ($17,400)$2,026 20.630%$418 $9 2.3% 57 $330,000 ($7,500)$3,225 20.630%$665 $10 1.6% 58 $440,000 $0 $4,400 20.630%$908 $7 0.7% 59 $550,000 $0 $5,625 20.630%$1,160 $31 2.7% 60 $660,000 $0 $7,000 20.630%$1,444 $32 2.3% 61 $770,000 $0 $8,375 20.630%$1,728 $33 2.0% 62 $880,000 $0 $9,750 20.630%$2,011 $34 1.7% 63 $990,000 $0 $11,125 20.630%$2,295 $35 1.6% 64 $1,100,000 $0 $12,500 20.630%$2,579 $37 1.4% 65 66 2023 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 15.0%2023 2023 2023 2023 (Decrease)(Decrease) 73 74 $115,000 ($26,900)$881 20.630%$182 $20 12.0% 75 $230,000 ($16,500)$2,135 20.630%$440 $32 7.8% 76 $345,000 ($6,200)$3,388 20.630%$699 $44 6.7% 77 $460,000 $0 $4,600 20.630%$949 $48 5.3% 78 $575,000 $0 $5,938 20.630%$1,225 $95 8.4% 79 $690,000 $0 $7,375 20.630%$1,521 $109 7.7% 80 $805,000 $0 $8,813 20.630%$1,818 $123 7.3% 81 $920,000 $0 $10,250 20.630%$2,115 $137 7.0% 82 $1,035,000 $0 $11,688 20.630%$2,411 $152 6.7% 83 $1,150,000 $0 $13,125 20.630%$2,708 $166 6.5% 5 City of Medina 2023 Proposed Property Tax Scenario Commercial/Industrial Properties 2022 2023 2022-2023 Budget Budget Change 1 City Tax Rate:22.596%20.630%-8.7% 2 3 General Fund Levy:$4,147,600 $4,657,752 $510,152 4 5 Debt Service & Capital Levies:$832,997 $849,446 $16,449 6 7 Total Levy:$4,980,597 $5,507,198 $526,601 8 9 Change in Total Levy:10.6% 10 11 2022 CITY PROPERTY TAXES 12 13 City Local City 14 Market Tax Tax Capacity Property 15 Value Capacity Rate Taxes 16 2022 2022 Pay 2022 2021 17 18 $1,000,000 $18,500 22.596%$4,180 19 $2,000,000 $38,500 22.596%$8,700 20 $3,000,000 $58,500 22.596%$13,219 21 $4,000,000 $78,500 22.596%$17,739 22 $5,000,000 $98,500 22.596%$22,257 23 $6,000,000 $118,500 22.596%$26,777 24 $7,000,000 $138,500 22.596%$31,296 25 $8,000,000 $158,500 22.596%$35,815 26 $9,000,000 $178,500 22.596%$40,334 27 $10,000,000 $198,500 22.596%$44,854 28 29 2023 CITY PROPERTY TAXES (WITH NO MARKET VALUE CHANGE) 30 31 Market City Local City Property Percentage 32 Value Tax Tax Capacity Property Taxes Tax 33 2022 Capacity Rate Taxes Increase Increase 34 NO CHANGE 2023 Pay 2023 2023 (Decrease)(Decrease) 35 36 $1,000,000 $18,500 20.630%$3,817 ($364)-8.7% 37 $2,000,000 $38,500 20.630%$7,943 ($757)-8.7% 38 $3,000,000 $58,500 20.630%$12,069 ($1,150)-8.7% 39 $4,000,000 $78,500 20.630%$16,195 $0 N/A 40 $5,000,000 $98,500 20.630%$22,154 ($103)-0.5% 41 $6,000,000 $118,500 20.630%$26,653 ($124)-0.5% 42 $7,000,000 $138,500 20.630%$31,151 ($145)-0.5% 43 $8,000,000 $158,500 20.630%$35,649 ($166)-0.5% 44 $9,000,000 $178,500 20.630%$40,148 ($187)-0.5% 45 $10,000,000 $198,500 20.630%$44,646 ($208)-0.5% 46 47 2023 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE) 48 49 Market 50 Value City Local City Property Percentage 51 2022 Tax Tax Capacity Property Taxes Tax 52 INCREASE OF Capacity Rate Taxes Increase Increase 53 10.0%2023 Pay 2023 2023 (Decrease)(Decrease) 54 55 $1,100,000 $20,500 20.630%$4,229 $49 1.2% 56 $2,200,000 $42,500 20.630%$8,768 $68 0.8% 57 $3,300,000 $64,500 20.630%$13,306 $88 0.7% 58 $4,400,000 $86,500 20.630%$17,845 $106 0.6% 59 $5,500,000 $108,500 20.630%$22,384 $126 0.6% 60 $6,600,000 $130,500 20.630%$26,922 $146 0.5% 61 $7,700,000 $152,500 20.630%$31,461 $165 0.5% 62 $8,800,000 $174,500 20.630%$36,000 $184 0.5% 63 $9,900,000 $196,500 20.630%$40,538 $204 0.5% 64 $11,000,000 $218,500 20.630%$45,077 $223 0.5% 65 66 2023 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE) 67 68 Market 69 Value City Local City Property Percentage 70 2022 Tax Tax Capacity Property Taxes Tax 71 INCREASE OF Capacity Rate Taxes Increase Increase 72 15.0%2023 Pay 2023 2023 (Decrease)(Decrease) 73 74 $1,150,000 $21,500 20.630%$4,435 $255 6.1% 75 $2,300,000 $44,500 20.630%$9,180 $481 5.5% 76 $3,450,000 $67,500 20.630%$13,925 $707 5.3% 77 $4,600,000 $90,500 20.630%$18,670 $931 5.2% 78 $5,750,000 $113,500 20.630%$23,415 $1,158 5.2% 79 $6,900,000 $136,500 20.630%$28,160 $1,384 5.2% 80 $8,050,000 $159,500 20.630%$32,905 $1,609 5.1% 81 $9,200,000 $182,500 20.630%$37,650 $1,835 5.1% 82 $10,350,000 $205,500 20.630%$42,395 $2,061 5.1% 83 $11,500,000 $228,500 20.630%$47,140 $2,286 5.1% 6