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HomeMy Public PortalAbout06.20.2023 Work Session Meeting Packet Posted 5/29/2009 Page WORK SESSION AGENDA MEDINA CITY COUNCIL Tuesday, June 20, 2023 6:00 P.M. Medina City Hall 2052 County Road 24 I.Call to Order II.2024 Budget Discussion III.Adjourn Posted 06.16.2023 MEMORANDUM TO: Mayor and City Council Members FROM: Erin Barnhart, Finance Director DATE: June 16, 2023 SUBJ: 2024 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. Legislative changes will require City Hall to be open for voting on weekends two week prior to the election (primaries & general) as well as extended weekday hours. We anticipate an additional 75 operating hours for 2024 for early voting. Property Tax Levy Preliminary calculations from Hennepin County estimate a 9.5% market value increase and a 10% tax capacity increase. Of the market value increase, 2.3% is attributed to new development and tax base growth from 2022. Levy and expenditure increase includes a transfer of $150,000 to the Fire Facility Fund. Preliminary 2024 tax rate: 20.76%; a decrease of 8.1% from 2023. General Fund General Fund revenue and expenditures are preliminarily budget at an increase of 2.4% respectively. The following is a summary of 2024 General Fund budget estimations and highlighted areas where increases are expected, or negotiations are in process. • General Increases o Fuel - $7,500 o Materials/Supplies (street/trail, computer) - $41,100 o General Services (publishing, repairs, seminars, etc.) - $13,625 o Contracted Services – $62,700 o Insurance (property & auto) - $10,000 o Utilities (electric & gas) - $9,200 • Current Contract Negotiations o Fire  West Suburban Fire (merged Hamel Fire & Loretto Fire) ~$135,286 (operations). Awaiting submittal.  Maple Plain Fire will receive 5% inc. $787.50 per contract (CPI increase not to exceed 5%).  Long Lake Fire – awaiting submittal. ’24 contract • Staffing Work Session 2 o Union market wage adjustments + 3% COLA - $138,663 o Grade 8-11 market wage adjustment - $28,782 o Election Staff - $4,000 o COLA – 3% o Total Staff increase (market adjustment, steps, COLA, PERA) - $203,799 o Medical Insurance – 10%, $33,537 increase budgeted (7% City, 3% staff).  2023 rate increase was 1.9%. The market rates will be released in October and budget will be adjusted accordingly. Upcoming • Enterprise Funds (water, sewer, storm) and CIP will be discussed at the July 18th work session. CITY OF MEDINA GENERAL FUND PRELIMINARY 2024 BUDGET 2024 Amount Percentage 2021 2021 2022 2022 2023 2023 Prelim Increase Increase Budget Actual Budget Actual Budget YTD Budget (Decrease) (Decrease) REVENUES & OTHER FINANCING SOURCES: 1 Property Tax Levy 3,731,800 3,620,188 4,147,600 4,050,726 5,090,500 0 5,090,500 0 0.0% 2 Other Taxes 75,000 104,420 85,000 112,458 75,000 0 7,000 (68,000) -90.7% 3 Licenses and Permits 391,269 776,618 492,500 541,504 346,400 160,985 380,483 34,083 9.8% 4 Intergovernmental 288,773 700,634 303,773 327,154 283,998 83,997 332,000 48,002 16.9% 5 Charges for Services 141,254 148,867 143,074 387,662 310,871 184,256 331,015 20,144 6.5% 6 Fines and Forfeitures 95,000 63,903 95,000 49,480 55,000 23,849 55,000 0 0.0% 7 Special Assessments 0 32 0 0 0 0 0 0 N/A 8 Interest om Investments 30,000 (58,953) 30,000 (203,121) 0 1,365 0 0 N/A 9 Miscellaneous 101,875 113,788 210,881 221,058 122,018 151,308 175,992 53,974 44.2% 10 Sale of Assets 0 0 0 0 0 0 0 0 N/A 11 Transfers In 227,409 272,409 234,230 337,137 286,257 0 355,495 69,238 24.2% 12 Total Revenues & Other Financing Sources 5,082,380 5,741,908 5,742,058 5,824,058 6,570,044 605,760 6,727,485 157,441 2.4% EXPENDITURES & OTHER FINANCING USES: General Government: 13 Mayor & Council 25,544 26,575 25,544 26,985 25,544 15,049 25,894 350 1.4% 14 Administration 664,268 642,687 691,552 656,372 809,831 384,092 863,944 54,113 6.7% 15 Elections 15,400 364 24,617 23,311 24,692 1,424 28,998 4,306 17.4% 16 Assessing 104,315 102,018 172,499 121,736 172,499 58,223 172,500 1 0.0% 17 Planning & Zoning 191,094 181,960 206,624 210,508 213,117 85,035 225,416 12,299 5.8% 18 Comprehensive Plan 8,000 0 8,000 0 8,000 0 8,000 0 0.0% 19 Data Processing 90,704 92,164 101,000 95,124 104,000 60,185 106,500 2,500 2.4% 20 Police/Public Works Facility 79,500 61,503 87,800 95,171 89,300 58,730 97,700 8,400 9.4% 21 Municipal Building 58,800 42,775 56,400 42,821 59,800 27,325 61,800 2,000 3.3% 22 Unallocated 0 0 0 0 0 0 0 0 N/A 23 Total General Government 1,237,625 1,150,046 1,374,036 1,272,028 1,506,783 690,062 1,590,751 83,968 5.6% Public Safety: 24 Police 1,849,789 1,872,072 2,023,300 1,981,840 2,253,577 1,026,576 2,415,114 161,537 7.2% 25 Police Records Management 13,500 9,599 14,200 10,079 10,250 10,542 16,000 5,750 56.1% 26 Fire 408,130 422,483 441,448 458,167 476,281 224,368 622,342 146,061 30.7% 27 Building Inspections 329,479 458,271 441,953 633,972 482,466 71,286 517,513 35,047 7.3% 28 Emergency Management 5,800 6,574 6,050 4,687 6,250 4,340 7,625 1,375 22.0% 29 Total Public Safety 2,606,698 2,769,000 2,926,951 3,088,745 3,228,824 1,337,112 3,578,594 349,770 10.8% Public Works: 30 Public Works 743,356 665,430 793,620 802,271 840,377 365,684 884,793 44,416 5.3% 31 Sanitation & Recycling 26,540 14,601 25,322 8,037 24,102 4,789 24,717 615 2.6% 32 Total Public Works 769,896 680,031 818,942 810,308 864,479 370,473 909,510 45,030 5.2% Parks & Recreation: 33 Community Building 42,076 42,242 40,036 48,415 43,526 27,315 51,400 7,874 18.1% 34 Parks 186,341 185,588 231,241 211,036 252,763 107,484 282,036 29,273 11.6% 35 Total Parks & Recreation 228,417 227,831 271,277 259,451 296,289 134,799 333,436 37,147 12.5% Economic Development Housing 57,010 0 57,907 0 60,949 0 0 (60,949) -100.0% 36 Transfers Out 182,734 504,000 147,174 447,174 157,718 0 165,192 7,474 4.7% 37 Transfer to Fire Facility 0 0 145,771 145,771 455,000 0 150,000 (305,000)-67.0% Total Transfers 182,734 504,000 292,945 592,945 612,718 0 315,192 (297,526)-48.6% 38 Total Expenditures & Other Financing Uses 5,082,380 5,330,907 5,742,058 6,023,478 6,570,043 2,532,446 6,727,484 157,441 2.4% EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) 39 EXPENDITURES AND OTHER FINANCING USES 0 411,001 0 (199,420)0 (1,926,686)0 (1)N/A 1 City of Medina 2024 Property Tax Levy Scenario Summary Actual Proposed Pay Pay 2023 2024 Property Tax Information: 1 Estimated Market Value Change (Taxable)N/A 9.5% 2 Estimated Tax Capacity Change (Taxable)N/A 9.9% 3 4 General Fund Levy $5,090,500 $5,090,500 5 % Change N/A 0.0% 6 7 Debt Service & Capital Levies $910,446 $1,008,747 8 % Change N/A 10.8% 9 10 Total Levy $6,000,946 $6,099,247 11 % Change N/A 1.6% 12 13 City Local Tax Capacity Rate 22.598% 20.764% 14 % Change N/A -8.1% 15 16 17 Estimated Property Taxes: 18 19 $700,000 Home With No Market Value Change $1,695 $1,557 20 % Change N/A -8.1% 21 22 $700,000 Home With 7.5% Market Value Increase $1,843 $1,694 23 % Change N/A -8.1% 24 25 $5,000,000 C/I Property With No Market Value Change $22,259 $20,452 26 % Change N/A -8.1% 27 28 $5,000,000 C/I Property With 7.5% Market Value Increase $23,954 $22,010 29 % Change N/A -8.1% 2 City of Medina Property Tax Levies 2024 Proposed Proposed Amount Percentage Pay Pay Increase Increase 2023 2024 (Decrease) (Decrease) 1 General Fund Levy 4,635,500 4,940,500 305,000 6.6% 2 Future Fire Facility 455,000 150,000 (305,000) -67.0% 3 Total General Fund Levy 5,090,500 5,090,500 0 0.0% 4 5 Debt Service & Capital Levies: 6 7 Public Works and Police Department Facility: 8 9 2012A G.O. Capital Improvement Plan (CIP) Bonds - $6.1 million 364,791 362,943 (1,848)-0.5% 10 2013A G.O. Refunding Bonds (2007A recharacterized CIP portion)0 0 0 N/A 11 12 Total Public Works and Police Department Facility 364,791 362,943 (1,848)-0.5% 13 14 Other Debt Service: 15 16 2011B Taxable G.O. Improvement Bonds - Hunter Drive North 0 0 0 N/A 17 2015A G.O. Improvement Bonds - Tower Drive 60,155 60,304 149 0.2% 18 19 Total Other Debt Service 60,155 60,304 149 0.2% 20 21 Capital Levies: 22 23 Municipal Park Fund Levy 112,000 112,000 0 0.0% 24 Capital Road Fund Levy 61,000 61,000 0 0.0% 25 Capital Equipment Fund Levy 312,500 412,500 100,000 32.0% 26 27 Total Capital Levies 485,500 585,500 100,000 20.6% 28 29 Total Debt Service & Capital Levies 910,446 1,008,747 98,301 10.8% 30 31 Total Levies 6,000,946 6,099,247 98,301 1.6% 3 City of Medina Property Tax Levies 2024 Proposed General Fund Levy,  $4,940,500, 81.00% Future Fire Facility,  $150,000, 2.46% Capital Road Fund Levy,  $61,000, 1.00% 2015A G.O. Tower Dr Imp,  $60,304, 0.99% Municipal Park Fund Levy,  $112,000, 1.84%Capital Equipment Fund Levy,  $412,500, 6.76% 2012A G.O. PD/PW Facility, $362,943, 5.95% 4 City of Medina 2024 Proposed Property Tax Scenario Residential Homesteads 2023 2024 2023-2024 Budget Proposed Change 1 City Tax Rate:22.598%20.764%-8.1% 2 3 General Fund Levy:$5,090,500 $5,090,500 $0 4 5 Debt Service & Capital Levies:$910,446 $1,008,747 $98,301 6 7 Total Levy:$6,000,946 $6,099,247 $98,301 8 9 Change in Total Levy:1.6% 10 11 2023 CITY PROPERTY TAXES 12 13 Homestead City Local City 14 Market Market Value Tax Tax Capacity Property 15 Value Exclusion Capacity Rate Taxes 16 2023 2023 2023 2023 2023 17 18 $100,000 ($28,200)$718 22.598%$162 19 $200,000 ($19,200)$1,808 22.598%$409 20 $300,000 ($10,200)$2,898 22.598%$655 21 $400,000 ($1,200)$3,988 22.598%$901 22 $500,000 $0 $5,000 22.598%$1,130 23 $600,000 $0 $6,250 22.598%$1,412 24 $700,000 $0 $7,500 22.598%$1,695 25 $800,000 $0 $8,750 22.598%$1,977 26 $900,000 $0 $10,000 22.598%$2,260 27 $1,000,000 $0 $11,250 22.598%$2,542 28 29 2024 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 2022 Exclusion Capacity Rate Taxes Increase Increase 34 NO CHANGE 2024 2024 2024 2024 (Decrease)(Decrease) 35 36 $100,000 ($28,200)$718 20.764%$149 ($13)-8.1% 37 $200,000 ($19,200)$1,808 20.764%$375 ($33)-8.1% 38 $300,000 ($10,200)$2,898 20.764%$602 ($53)-8.1% 39 $400,000 ($1,200)$3,988 20.764%$828 ($73)-8.1% 40 $500,000 $0 $5,000 20.764% $1,038 ($92)-8.1% 41 $600,000 $0 $6,250 20.764% $1,298 ($115)-8.1% 42 $700,000 $0 $7,500 20.764% $1,557 ($138)-8.1% 43 $800,000 $0 $8,750 20.764% $1,817 ($161)-8.1% 44 $900,000 $0 $10,000 20.764% $2,076 ($183)-8.1% 45 $1,000,000 $0 $11,250 20.764% $2,336 ($206)-8.1% 46 47 2024 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE) 48 49 Market 50 Value Homestead City Local City Property Percentage 51 2022 Market Value Tax Tax Capacity Property Taxes Tax 52 INCREASE OF Exclusion Capacity Rate Taxes Increase Increase 53 5.0%2024 2024 2024 2024 (Decrease)(Decrease) 54 55 $105,000 ($27,800)$772 20.764%$160 ($2)-1.2% 56 $210,000 ($18,300)$1,917 20.764%$398 ($11)-2.6% 57 $315,000 ($8,900)$3,061 20.764%$636 ($19)-2.9% 58 $420,000 $0 $4,200 20.764% $872 ($29)-3.2% 59 $525,000 $0 $5,313 20.764% $1,103 ($27)-2.4% 60 $630,000 $0 $6,625 20.764% $1,376 ($37)-2.6% 61 $735,000 $0 $7,938 20.764% $1,648 ($47)-2.8% 62 $840,000 $0 $9,250 20.764% $1,921 ($57)-2.9% 63 $945,000 $0 $10,563 20.764% $2,193 ($67)-2.9% 64 $1,050,000 $0 $11,875 20.764% $2,466 ($77)-3.0% 65 66 2024 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE) 67 68 Market 69 Value Homestead City Local City Property Percentage 70 2022 Market Value Tax Tax Capacity Property Taxes Tax 71 INCREASE OF Exclusion Capacity Rate Taxes Increase Increase 72 7.5%2024 2024 2024 2024 (Decrease)(Decrease) 73 74 $107,500 ($27,600)$799 20.764%$166 $4 2.2% 75 $215,000 ($17,900)$1,971 20.764%$409 $1 0.2% 76 $322,500 ($8,200)$3,143 20.764%$653 ($2)-0.3% 77 $430,000 $0 $4,300 20.764% $893 ($8)-0.9% 78 $537,500 $0 $5,469 20.764% $1,136 $6 0.5% 79 $645,000 $0 $6,813 20.764% $1,415 $2 0.2% 80 $752,500 $0 $8,156 20.764% $1,694 ($1)-0.1% 81 $860,000 $0 $9,500 20.764% $1,973 ($5)-0.2% 82 $967,500 $0 $10,844 20.764% $2,252 ($8)-0.4% 83 $1,075,000 $0 $12,188 20.764% $2,531 ($12)-0.5% 5 City of Medina 2024 Proposed Property Tax Scenario Commercial/Industrial Properties 2023 2024 2023-2024 Budget Budget Change 1 City Tax Rate:22.598%20.764%-8.1% 2 3 General Fund Levy:$5,090,500 $5,090,500 $0 4 5 Debt Service & Capital Levies:$910,446 $1,008,747 $98,301 6 7 Total Levy:$6,000,946 $6,099,247 $98,301 8 9 Change in Total Levy:1.6% 10 11 2023 CITY PROPERTY TAXES 12 13 City Local City 14 Market Tax Tax Capacity Property 15 Value Capacity Rate Taxes 16 2023 2023 2023 2023 17 18 $1,000,000 $18,500 22.598%$4,181 19 $2,000,000 $38,500 22.598%$8,700 20 $3,000,000 $58,500 22.598%$13,220 21 $4,000,000 $78,500 22.598%$17,741 22 $5,000,000 $98,500 22.598%$22,259 23 $6,000,000 $118,500 22.598%$26,779 24 $7,000,000 $138,500 22.598%$31,298 25 $8,000,000 $158,500 22.598%$35,818 26 $9,000,000 $178,500 22.598%$40,338 27 $10,000,000 $198,500 22.598%$44,857 28 29 2024 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 2024 2024 2024 (Decrease)(Decrease) 35 36 $1,000,000 $18,500 20.764% $3,841 ($339)-8.1% 37 $2,000,000 $38,500 20.764% $7,994 ($706)-8.1% 38 $3,000,000 $58,500 20.764% $12,147 ($1,073)-8.1% 39 $4,000,000 $78,500 20.764% $16,300 ($1,441)-8.1% 40 $5,000,000 $98,500 20.764% $20,452 ($1,807)-8.1% 41 $6,000,000 $118,500 20.764% $24,605 ($2,174)-8.1% 42 $7,000,000 $138,500 20.764% $28,758 ($2,541)-8.1% 43 $8,000,000 $158,500 20.764% $32,911 ($2,907)-8.1% 44 $9,000,000 $178,500 20.764% $37,064 ($3,274)-8.1% 45 $10,000,000 $198,500 20.764% $41,216 ($3,641)-8.1% 46 47 2024 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 5.0%2024 2024 2024 (Decrease)(Decrease) 54 55 $1,050,000 $19,500 20.764% $4,049 ($132)-3.2% 56 $2,100,000 $40,500 20.764% $8,409 ($291)-3.3% 57 $3,150,000 $61,500 20.764% $12,770 ($450)-3.4% 58 $4,200,000 $82,500 20.764% $17,130 ($610)-3.4% 59 $5,250,000 $103,500 20.764% $21,491 ($769)-3.5% 60 $6,300,000 $124,500 20.764% $25,851 ($928)-3.5% 61 $7,350,000 $145,500 20.764% $30,211 ($1,087)-3.5% 62 $8,400,000 $166,500 20.764% $34,572 ($1,246)-3.5% 63 $9,450,000 $187,500 20.764% $38,932 ($1,405)-3.5% 64 $10,500,000 $208,500 20.764% $43,293 ($1,565)-3.5% 65 66 2024 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 7.5%2024 2024 2024 (Decrease)(Decrease) 73 74 $1,075,000 $20,000 20.764% $4,153 ($28)-0.7% 75 $2,150,000 $41,500 20.764% $8,617 ($83)-1.0% 76 $3,225,000 $63,000 20.764% $13,081 ($139)-1.0% 77 $4,300,000 $84,500 20.764% $17,545 ($195)-1.1% 78 $5,375,000 $106,000 20.764% $22,010 ($249)-1.1% 79 $6,450,000 $127,500 20.764% $26,474 ($305)-1.1% 80 $7,525,000 $149,000 20.764% $30,938 ($360)-1.2% 81 $8,600,000 $170,500 20.764% $35,402 ($416)-1.2% 82 $9,675,000 $192,000 20.764% $39,867 ($471)-1.2% 83 $10,750,000 $213,500 20.764% $44,331 ($526)-1.2% 6 Tax Levy Timeline Sept. 5, 2023 Nov. 2023 TNT = Truth in Taxation Dec. 5, 2023