3. a Truth in Taxation public hearingin Taxation
201
Budget
December 7, 2016
Hearing
Purpose of Meeting0
:
❖ Purpose: to gather public comment on the City's budget,
and the property taxes needed to pay for the expenditures
in 2017
❖ Meeting held in each taxing jurisdiction (county, city,
school district, etc.)
❖ Mandated by State Legislature
How Property Tax System Works
❖ Assessor sets proposed property values as of January 1 for the
following year taxes. Values are based on comparable sales.
❖ These values are sent to the County Auditor. Auditor then sends
property specific notices to property owners notifying of the value
change. Included in the notice is the information about the Board
of Review meeting.
❖ City Council conducts Board of Review meeting in April of each
year; this is when residents can question their proposed values.
❖ Values are then finalized and set for calculating the taxes.
❖ In September the City sets the maximum levy amount which is
used to calculate taxes in notices mailed in November
❖ City and other jurisdictions adopt levy and budgets in December.
Tax rates are calculated by County based on the levies adopted by
each jurisdiction.
City Budget Process:
❖ June/July- staff and committees draft operating budgets
❖ August - City Council Work Session budget overview
❖ September - City Council adopts resolution certifying
maximum tax levy (0.00% increase for 2017)
❖ October & November - City Council Work Session review
of Departmental and Fund budgets
❖ November- County mails proposed property tax
statements
❖ December 7"d - Public hearing on 2017 budget
❖ December 20th -council adopts 2017 budget
Scand'als Budget:
❖ General Fund
■ Operating Budgets by Department
❖ Special Revenue Fund
■ Economic Development Authority
*.**Debt Service Funds
■ Streets and Equipment
❖Capital Funds
■ Capital Improvement, Park Improvement, Equipment
Replacement, Local Road Improvement
*.**Enterprise Fund
■ 201 Wastewater System, Uptown Wastewater System
Pay structure- merit step increases for non- bargaining unit employees -
2.0%
Pay structure- bargaining unit employees -
2.0%
Mayor &Council wages increase based on Ordinance 156 -
2.5%
Health insurance -30% increase - League recommendation is 10-15%: Proposed renewal increase
ranges from 3-5% depending on age group and deductible increasedfrom $1,5W to $1,750
6.0%
PERA contribution rates- no change in rate
OD%.
Social security&medicare - no change in rate
0D%
Workers Compensation - League range 4-8%increase
9.0%
Assessor- contract +20o additional building permits @ $10/
League of Minnesota Cities dues increase
3.0%
Property insurance - League range 2-3%increase -
3.0%
Liability Insurance - League 2% increase -
3.0%
Auto damage&liability - League range 3 -]%increase -
3.0%
%cel - electricity - appplied for 6.4% increase in 2016 and 1.25S in 2017 -
6.5%
Lakes Area Television support -
-12.0%
Building permits- no change from 2016 budget -$25,000 less than 2016 projMel -
Contract with Sheriff Department - estimated increase -
3.5%
Wage allocations
Administrator - 20% to Planning
Public Works Director -12.5%201 systems, 5% uptown system
Public Works staff -].5%201 systems, 2.5% uptown system, .9% parks
PT Parks -2" to Park Improvement fund for lighted ballfield maintenance
CHANGES FROM STEADY STATE
ADMINISTRATION
Website upgrade - provide for custom background and 3 sets of banners using Scandia
images - $ 3,000
Data technology replacements and upgrades
Purchase firewall appliance - $ 2,200
Replace switch with gigabit ethernet switch - $ 2,500
Replace 2011 Dell server- $ 7,000
PLANNING - COMPREHENSIVE PLAN UPDATE (SPLIT 80% 2017 / 20% 2018)
Update on major issues - $52,500 - $ 42,000
PUBLIC WORKS
Add 2 additional layers to GIS (culverts and guardrails) - $ 1,000
Upgrade GIS to be able to view from mobile devices - $ 2,000
Purchase used roller for patching - $ 8,000
PAY STRU CTU RE
Modify base pay from levels established in 2013 - $1% increase = $1,600 - ?
EDA
Add funding to match County predevelopment loan fund - recommended by EDA - $ 5,000
Proposed General Fund Spending, by Department
Community Center, $40,200 , 2%
Parks & Recrea
$60,900 , 3°/
ty Council,
18,900,1%
actions,
100,0%
anning & Building,
$149,000, 6%
Proposed General Fund Expenditures by Department
Community Center
Parks & Recreation
Public Works
Fire
Police
Planning & Building
Elections
City Council
Administration & Finance
$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000
72017 ■ 2016
❑ Proposed Spending: $2,342,000
■ $240,370 or 11% increase over 2016 budget
■ Budget increase is primarily attributable to:
■ Transfer to Local Road Improvement Fund - $175,476
■ Funding for Comprehensive Plan update - $43,000
General Fund Spending by Department, 2013-2017
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
2013 Actual 2014 Actual 2015 Actual 2016 Projected 2016 Budget 2017 Proposed
■Public Works $847,491 $1,055,613 $1,029,107 $1,018,124 $1,197,153 $1,371,800
■ Community Center $36,808 $42,439 $37,759 $38,600 $40,261 $40,200
■ Parks & Recreation $59,385 $59,802 $56,589 $58,600 $60,879 $60,900
■ Fire $276,840 $258,138 $224,038 $223,824 $232,959 $236,800
■Police $116,384 $121,113 $115,642 $116,200 $116,197 $120,500
Planning & Building $204,125 $71,066 $105,206 $117,500 $96,206 $149,000
■ Elections $470 $5,827 $1,172 $5,350 $6,150 $1,300
■City Council $17,801 $18,406 $19,578 $23,100 $26,976 $18,900
■Administration & Finance $347,730 $316,393 $351,783 $332,662 $324,849 $342,600
General Fund Spending by Category, 2017
Capital Outlay,
$4,000,0%
Proposed General Funds Expenditures by Category
Transfers
Capital Outlay
Contractual Services
Materials & Supplies
Personal Service
Transfer to Local Road Improvement Fund
Increase for Comprehensive Planning
consultant
$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000
02017 02016
General Fund Spending by Category - 2013 to 2017
$2,500,000
$2,000,000
$1,500,000
6
$1,000,000
$500,000
$ 2013 Actual 2014 Actual 2015 Actual 2016 Projected 2016 Budget 2017 Proposed
■Transfers $99,900 $300,000 $356,522 $347,724 $347,724 $523,200
■Personal Service $529,128 $559,416 $568,674 $586,100 $619,021 $640,900
Capital Outlay $84,212 $4,716 $18,525 $9,100 $13,000 $4,000
Contractual Services $1,014,750 $905,138 $895,284 $860,986 $936,630 $988,100
Materials & Supplies $179,044 $179,526 $101,869 $130,050 $185,255 $185,800
General Fund Summary
$2,500,000
$2,000,000
—
$1,500,000
-
$1,000,000
$500,000
$
2013 Actual
2014 Actual
2015 Actual
2016 Projected
2016 budget
2017 Proposed
Fund balance - 12/31
$1,594,415
$1,715,890
$1,746,587
$1,663,672
$1,398,396
$1,145,472
■Revenue
$2,170,437
$2,070,197
$1,944,186
$1,851,045
$1,753,439
$1,823,800
*Expenditures
$1,905,575
$1,948,722
$1,913,489
$1,933,960
$2,101,630
$2,342,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
Fund Balance
■ Revenue
n Expenditures
Debt Service Funds Summary
Debt issued for equipment purchase and
transferred to Equipment Replacement Fund
2013 Actual 2014 Actual
$285,595 $319,120
$120,889 $837,493
$89,309 $803,968
2015 Actual
$113,260
$293,585
$531,093
Early retirement of 2007 Road
♦� Improvement Debt
Special
assessments from
2007 Road
improvement
bods transferred
to Local Road
Improvement
Fund
2017 Proposed
$35,928
$130,948
$206,781
2016 Projected 2016 budget
$111,701 $120,424
$185,539 $193,902
$187,098 $186,738
Capital Funds
❖General Capital Fund
❖Park Improvement Fund
**.*Equipment Replacement Fund
❖Local Road Improvement Fund
GENERAL CAPITAL FUND
$450,000
$400,000
$350,000
Log House Landing boat ramp - $20,000
from City, $20,000 from Watershed
district, $15,000 from National Park
$300,000
Service
$250,000
205th St. (Log House Landing)
pave with bound aggregate -
$200,000
$150,000
$100,000
$50,000
2013 Actual
2014 Actual
2015 Actual
2016 Projected 2016 budget 2017 Proposed
Fund Balance
$267,532
$335,466
$356,058
$384,688 $366,758 $282,988
Revenue
$91,992
$95,099
$30,967
$31,000 $50,700 $165,000
Expenditures
$41,616
$27,165
$10,375
$2,370 $40,000 $266,700
Fund Balance
Revenue
Expenditures
EQUIPMENT REPLACEMENT FUND
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
Fund Balance
a Revenue
Expenditures
I*
2013 Actual 2014 Actual 2015 Actual
$528,358 $451,023 $470,608
$650,918 $112,713 $236,523
$344,953 $190,048 $216,938
F,
2016 Projected 2016 budget 2017 Proposed
$483,258 $361,608 $404,552
$29,650 $206,000 $239,294
$17,000 $315,000 $318,000
Fund Balance Revenue Expenditures
PARK CAPITAL FUND
$60,000
Budgeted projects assume 100%
Lilleskogen parking lot — funded funding via donations & grants
$50,000 with loan from Capital \
Improvement Fund \�I
$40,000 -
$30,000
$20,000 — —
$10,000 —
$(10,000)
$(20,000)
$(30,000) 2013 Actual 2014 Actual 2015 Actual 2016 Projected 2016 budget 2017 Proposed
Fund Balance $7,984 $1,067 $(19,812) $(19,162) $(18,592) $(9,892)
Revenue $28 $3,012 $26,393 $8,150 $33,720 $43,900
Expenditures $1,450 $9,929 $47,273 $7,500 $32,500 $35,200
Fund Balance ■ Revenue ■ Expenditures
LOCAL ROAD IMPROVEMENT FUND
$1,800,000
No projects planned for 2017
$1,600,000
$1,400,000
$1,200,000
-
$1,000,000
$800,000
$600,000
$400,000
$200,000
$
2013 Actual
2014 Actual
2015 Actual
2016 Projected
2016 budget 2017 Proposed
Fund Balance
$-
$328,137
$402,956
$419,822
$102,322 $1,581,055
Revenue
$-
$328,137
$703,246
$936,866
$949,366 $1,161,233
Expenditures
$-
$-
$628,427
$920,000
$1,250,000 $-
UPTOWN SEWER FUND
$20,000
$15,000
$10,000
-
-
- -
$5,000
-
-
$(5,000)
2013 Actual
2014 Actual
2015 Actual
2016 Projected
2016 budget
2017 Proposed
Cash Balance
$(3,380)
$96
$(144)
$(355)
$1,807
$(894)
n Revenue
$18,813
$17,831
$18,183
$18,200
$18,000
$18,000
Expenditures
$13,160
$13,078
$16,820
$15,772
$13,410
$15,400
Cash Balance ■ Revenue
■ Expenditures
201 SEWER FUND
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$
2013 Actual
2014 Actual
2015 Actual
2016 Projected
2016 budget
2017 Proposed
Cash Balance
$175,550
$153,877
$51,185
$64,935
$69,975
$64,935
Revenue
$83,897
$74,064
$75,095
$74,800
$69,550
$72,500
Expenditures
$60,741
$82,863
$68,618
$61,050
$50,760
$62,000
N I
:RTY
EVY
Breakdown of Proposed 2017
Tax Levy
Fund
2015 budget 2016 Budget 2017 Proposed
General Fund
$
11564,818 '
$
1, 498,148
' $
11545,600
Debt Service Fund
$
2721691
$
148,582
$
116,739
Capital Improvement
Fund
$
30,000
$
30,000
$
301000
Local Road I
I
I
Improvement j
$
345,000 j
$
581,142
j $
560,533
Economic I
I
'
I
Development
I
I
I
Authority
$
21500 ;
$
-
$
51000
Total Levy $ 2, 215, 009 $ 2, 257, 872 $ 2, 257, 872
Total Property Tax Levy History
$2,500,000
$2,222,509 $2,257,872 $2,257,872
$2,171,074 $2,171,074
$2,000,000 -
$1,500,000
$1,000,000
$500,000
$-
2013 Actual 2014 Actual 2015 budget 2016 Budget 2017 Proposed
Property Tax Levy based on taxable value
45.00%
40.98%
40.00%
36.99% 36.72% 36.61%
34.70%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
-
2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Proposed
$1,600
$1,400
$1,200
$1,000
$800
$600
$40o
$zoo
$0
Comparison of Taxing District Portion
of Tax
Pay 2016 vs. 2017
■ Pay 2016 Tax ■ Proposed 2017 Tax
Counts of Proposed 2017 Tax Notices - Residential Homestead
by Range of Percentage of Increase/Decrease in City/Town Portion of Tax
11 Plarced Ogden he Rage a 11Cand .. he 11
Day
2017
Change
1Tal T Is
Model
>
�harke c_Tya
Mail
�c_Ty
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ke8
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„N eN „N „N eN kN
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silly of Afton
391 100
21%
$76
]oo 86
45
83
837
183
654
1,tv of Damon
182400
45%
9
05%
1
13
3 7 262 141 167 21
2 1
2
11
631
286
345
176
i
2
46
254
303
0
303
9
04%
114
71
27
261 1 172 2946 1 959 1 632 584
6
mod
($45)
65%
11
36
64
84 29 38 27 11
9
3]
38%
49
45
160
121 165 197 708 1 736 855
454 389
61
68
5008
737
4271
1,tv of G rant
407200
33%
ffi
115 137 108 26 436 233
32 28
18
23
1 229
439
790
71
11
1 5%
16
so
7
87 198 687 1 852 576 339
160 177
90
4
4243
1 045
a 198
858
91
31 194
125
14
383
3
380
1,tv of L akel and
214000
72%
812
6
213 297 27 10 16 2
6
1
1 1
1 606
548
58
11
� is of M artor, ad
287700
37%
$39
38%
8
4
6
7 14 24 222 1 380 205
132 197
36
93
2328
63
2265
1,tv of N e port
169700
70%
5
162 127
20
22
865
14
851
161
75 83 142 159 144 26
46 22
51
7T
993
468
525
silly of Oakdale
207500
31%
$32
46%
41
130
45
if9s 244 33, 439 3332 1 856
668 518
154
31
7986
988
6998
� is of P ine Springs
353700
126%
26
1,tv of S Cap did
280900
1 3%
$3
148 41
17 17
4
1 188
934
254
1
2
4 10 147 597 263
sitkyocSfilmier
235 400
3
19
124 375 1 662 322 512 lg7
93 so
65
84
5 454
2191
3263
283 800819
31
3169 743
226 293
76
98
18380
11 847
6533
Tom of eoaallom
8240
5775k
1
556
557
0
557
Tom of Denmark
363000
44%
16
Tom of May
340500
41%
Ce)
OW
1 T
17
46 79 307 03 30
32
Tom of St vider
378200
61%
192
10
Tom ofWest LakeIantl421
200
04%
811
6
144
�2400089
1645
7899 1 12861 6
33939,522
How Does Scandia Compare?
70%
clay
I
""
Z7
V
CL
v
30%
r-
ZO%
10%
0%
Proposed 2017 Tax bates
21 CL CL CL
L
�c 4 s pi�
�} Q '0 , � Y C i] 'G Lq L Cs f?
7C
ory F
x C7
F'
C
J LL.f ~~ O
O a 61 J Ci —
Y
m
-t Qi
Q
U a
13
3
C f}
A° O ul
COjc
� G
9 u7 U+
z
U ,N
S
N
w
t fn
a
k..P„
0.7%
0.
3
0.596
P.3%
0.296
0.1%
OA*
5
L
�c 4 s pi�
S.7 C
,�-
13
3
4Su
� G
9 u7 U+
z
U ,N
S
N
w
k..P„
0.7%
0.
3
0.596
P.3%
0.296
0.1%
OA*
5
Your Proposed Property Tax Bill
➢ Will also be affected by:
✓ Valuation changes different than median
✓ Classification changes
✓ Homestead Market Value Exclusion
✓ School district differences, levy referenda
✓ Watershed district differences
✓ Other taxing districts (Metro Council, Mosquito Control,
County HRA, Transit)
Pay 2016 vs. Proposed 2017 Tax Rates
Pai
Pay M17
%
�hg
he
Date
Cho
Couing ntry,County without Library
27 811%
Than..
Baytown Twp hvMOl
Coundywith Library
30 564%
30 43�
a4sy
DenmarkTwp
11 21
11255%
0 2w
AidesED
Agan
GreyCloud Island Twp
00%
4aul/Mpwtl
MayTwp
10 6,5%
11119%
44%
Bayport
St1IwaterTwp
20 Stew
22 543w
9 Ey
ED 622 N St aul/Mpwd
West Lakeland Two
a183%
7871%
3 S
Pai
Pay M17
%
mat
he
Date
Cho
Couing ntry,County without Library
27 811%
27 Trinew
0 1%
Coundywith Library
30 564%
30 43�
a4sy
County
MVR 0 00390%
0 004%
2 9%
AidesED
Agan
4aul/Mpwtl
569%
III
ED 200 testing,
20 933w
20 430w
24%
200 Hastings
MVP.35
AidesED
Agan
4aul/Mpwtl
569%
34 556w
2 Sw
Bayport
37 107%
39369%
6 1%
ED 622 N St aul/Mpwd
MVP.
Birchwood
White Bear lake
DotageGrove t0iban)
White Bear lake
MVP.
otl
est Late
EA.962%
31 Impy
25 3%
Forest Lake
Forest Lake
MVP'.
Grant
13 75�
13819%
0 5%
ED 832 abtomedi
Mabtomedi
MVP.
Hugo (Urban
Washington OF
Lake Elmo
Washington No
MVP.
Lake St 0olx Beach
OROIwaM
Lakeland
OROIwaM
MVP.
Lakeland Shores
40 CFIsgo Laks
25 700%
A4 310A
54%
Landfall
SO 2144 Chasse Laws
MVP.
0170%
0173%
17%
Mabtometll
34 557�
37560%
S4%
Marine o .Croix
OIM1ec
CreekwS
Newport
61 550w
60221%
2 3�
Carnahan
Oak Park Heights
Comfort Lake WS
4 159%
Oakdale
39 492w
39819%
0 By
R W Metro
Pine pin ng
eekwS
2192%
dAgro
367224
507%
-F SES
South Washington WS
St May a Point
24 di
24165%
2 3�
Valley Branch W
St Paul Park
Hi
Stillwater (Urban
Woodbury Lisp LWhite
Bear Lake
Metropolitan Caundl
Wdlern,
53 691%
4SPEw
93%
Met Control Transit
1 373%
1 306w
4 9%
Woodbury
Rol
Woodbury MVP.
00121
0011®%
24%
StateofPon Ch
State of MN leaders)
21 167%
21 000w
0 SO
Fiscal Disparities lC/II
15.262%
150.WY/
01%
Counts of Proposed 2017 Tax Notices - Residential Homestead
by Range of Percentage of Increase/Decrease in Total Tax
Me
A
P:n
>an
„N
„N
„N
eN
aMeml:N
e
tltl
�tl.
stl
�tl
„.tl
etl
�tl
etl
tltl
5
$eHV
70
etl
IF
tyois®nae 831
280200
%
$91
x%
a
3
1
]
e
41
329
441
112
m
24
9
2
mm
65
m
2144
99 mo
3%
ryvZ
-i %
a
a
1a
re
ao
s
w
1a
]
]
]
m
-.....•i.
mal
2¢6960.......
13%
884
28%
8
c...._�5
m
3;a
361
4ass
126
36
3i..
i
1je
PkyofSt ry¢Port
PkyofSt Paul Park 833
167 000
4 7%
$28
1 2%
6
1
1
6
23
384
448
212
255
255
M
PikyofStill,vater 834
235400
08%
$8
03%
6
3
21
138
442
1 876
2249
382
151
ill
44
18
13
5454
2486
2968
PkyofWhte Bear Lake 832
232300
25%
13
I,kv offtlerne 832
147100
27%
23
-12%
silly olWootlbury
833
POP
M
4
314
1501
35a5
4,®e
na
73
14
83
1450)
12D74
16�
834
4®67
a
]
4n
1
e
2
4
t_>_62
9)
18386
14888
ToDari of eallovn
8441
of enmam 200
354300
@2203
-
833
¢m6
9
9
6
��
1
.......
.
1
1
v
-1
106
98
8
1
2
21
1
120
w
1w521
1
„__1,g_
1e
ZI
n
1
e19
43
6]
163
243
61
163
36
26
11
1
812
596
21612
4
]
3
662
586
16
616
24]
48
34
5
3
1183
823
366
oum 120¢1
245666
11%
823
-69%
463
1072
3078
7865
13230
1 13341
9P52
6184
41]8
3056
2633
616
444
68966
39649
39857
Next Steps
•'• Open hearing for comments and questions
•'• Adoption of 2017 budget and tax levy at the Council meeting on
Tuesday, December 20, 2016
(7:00 p.m.)