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4. Truth in Taxation Hearing on 2018 Budget and Property Tax LevySCAN Taxation Budget ger 6. 2017 Hearing Purpose ❖ Purpose: to gather public comment on the City's budget, and the property taxes needed to pay for the expenditures that are budgeted for 2018 ❖ 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 Rudgp* Pr ❖ April - July - Capital Improvement Committee met to recommend 2018-2022 CIP ❖ June/July- staff and committees draft operating budgets ❖ August - City Council Work Session budget overview ❖ September - City Council adopts resolution certifying maximum tax levy (4.2% increase for 2018) ❖ October & November - City Council Work Session review of Departmental and Fund budgets ❖ November- County mails proposed property tax statements ❖ December 6"d - Public hearing on 2018 budget ❖ December 19th -Council adopts 2018 budget India's C ❖ General Fund ■ Operating Budgets by Department ❖ Special Revenue Fund ■ Cable Television 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 BUDGET ASSUMPTIONS Pay structure - merit step increases for non -bargaining unit employees Pay structure - bargaining unit employees Mayor & Council wages increase based on Ordinance 156 Health insurance - bargaining unit - estimated Health insurance - non -bargaining unit - per renewal information from insurer PERA contribution rates - no change in rate Social security & medicare - no change in rate Workers Compensation - League range 3-6% increase Assessor - contract + 200 additional building permits @ $10 / League of Minnesota Cities dues increase Property insurance - League range 2 - 3% increase Liability Insurance - League 2-6% increase Auto damage & liability - League range 3 - 5% increase Xcel - electricity - Building permits - $200,000 less than 2017 projected, $27,000 less than 2016 actual Contract with Sheriff Department - estimated increase Wage allocations Administrator - 20% to Planning Public Works Director - 201 Sewer Systems Public Works Director - 5% Uptown Sewer System Public Works staff - 201 Sewer Systems Public Works staff - Uptown Sewer System Public Works staff - Parks Maintenance Public Works staff - Community Building Maintnenance 2.75% - 3.0% - 0.0% - 8.0% - 8.0% - 0.0% - 0.0% - 6.0% - 0.0% - 30.0% - 6.0% 20.00% 12.50% 5.00% 8.00% 3.00% 8.00% 1.70% SIGNIFICANT CHANGES FROM STEADY STATE -DOES NOT INCLUDE CAPITAL PROJECTS REVENUE Use of Solar Energy Production Tax -city 20% share ($400/ year for each MwH in place) - $ 1,200 Accounting services provided to Lakes Area Cable (1/2 year) - $ (1,800) Building permits - $ 30,000 EXPENDITURES ADMINISTRATION Lakes Area Television - withdraw from joint powers agreement 6/30/2018 - $ (4,300) Revolving Loan Fund - transfer balance from the General Fund - $20,000- no impact on levy - $ 20,000 COUNCIL Council travel & conferences - $ 1,000 PLANNING - COMPREHENSIVE PLAN UPDATE Remainder on comprehensive planning agreement ($43,000 in 2017) - $ 15,000 FIRE Increase Fire Chief hours worked and wages - $ 33,000 PUBLIC WORKS Moved additional wages to Parks - $ (8,500) Moved wages to Community Building - $ (2,400) Refurbish signs - 2 welcome to Scandia, Community Building, Fire / Public Works, Warming house, lighted ballfield - 6 @ $500 - $ 3,000 Transfer of excess General fund balance ($523,200 in 2017) - $ 400,000 PARKS Additional PW wage allocation - $ 8,500 COMMUNITY BUILDING Added wages for Public Works maintenance - $ 2,400 PAY STRUCTURE Modify base pay from levels established in 2013 - 0.75% increase = $1,200 - $ 1,200 Proposed General Fund Spending, by Department Community Center, 2% Parks & Recreation, $69,300,3% Transfer, $423,500, 20% Administration & Finance, $344,000 ,16% City Council, $19,500,1% Elections, $6,200, 0% $127,200, 6% $271,500, 12% Planning & Building, $126,300, 6% Proposed General Fund Expenditures by Department Transfer Community Center Parks & Recreation Public Works Fire Police Planning & Building Elections City Council Administration & Finance $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 ■ 2018 ■ 2017 ❑ Proposed Spending: $2,160,800 ■ $188,900 or 8% decrease over 2017 budget ■ Budget decrease is primarily attributable to: ■ Decrease in transfer to Capital Funds - $99,700 ■ Road Maintenance Funds levy moved to Local Road Improvement fund - $115,000 General Fund Spending by Department $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Transfer Public Works Planning & Building Community Center Parks & Recreation Fire Police F Elections City Council Administration & Finance 2016 Actual $347,724 $603,020 $112,602 $37,763 $53,008 $200,280 $120,696 $5,428 $17,645 $320,225 2017 Projected $523,200 $715,900 $223,600 $40,910 $67,800 $239,937 $124,300 $1,900 $19,400 $339,300 2017 Budget $523,200 $848,600 $149,000 $40,200 $60,900 $244,500 $120,500 $1,300 $18,900 $342,600 2018 Budget $423,500 $730,500 $126,300 $42,800 $69,300 $271,500 $127,200 $6,200 $19,500 $344,000 General Fund Budget by Category Capital Outlay, $4,200,0% Materials & Supplies, $184,900 ,8% Budgeted General Fund Expenditures by Category Transfers Capital Outlay Contractual Services Materials & Supplies Personal Service $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 02018 02017 General Fund Spending by Category $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ 2016 Actual 2017 Projected 2017 Proposed 2018 Budget Transfers $347,724 $523,200 $523,200 $423,500 Capital Outlay $5,197 $28,700 $11,700 $4,200 Contractual Services $805,510 $967,547 $988,100 $857,900 Materials & Supplies $107,476 $158,900 $185,800 $184,900 Personal Service $552,483 $617,900 $640,900 $690,300 General Fund Summary $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Fund balance - 12/31 $1,772,274 $1,536,764 $1,258,774 $1,021,784 Revenue $1,844,078 $2,060,737 $1,836,200 $1,645,820 Expenditures $1,818,391 $2,296,247 $2,349,700 $2,160,800 CABLE FRANCHISE FUND $12,000 Franchise & PEG Fees Midco: July - December $10,000 $8,000 $6,000 $4,000 $2,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Fund Balance $- $- $- $10,200 Revenue $- $- $- $10,200 Expenditures $- $- $- $- DEBT SERVICE FUND SUMMARY $250,000 Special assessments from retired road improvement debt transferred to Local Road Improvement Fund $200,000 2017 debt for plow truck $150,000 $100,000 $50,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Fund Balance $113,621 $43,794 $37,603 $34,904 Revenue $187,459 $140,386 $130,948 $152,202 Expenditures $187,098 $210,213 $206,981 $161,092 Capital Funds ❖General Capital Fund ❖Park Improvement Fund ❖Equipment Replacement Fund ❖Local Road Improvement Fund $800,000 CAPITAL IMPROVEMENT FUND $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Fund Balance $384,832 $394,927 $283,132 $708,627 Revenue $31,144 $30,500 $165,000 $453,000 Expenditures $2,370 $20,405 $266,700 $139,300 $600,000 EQUIPMENT REPLACEMENT FUND $500,000 $400,000 $300,000 $200,000 $100,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Fund Balance $501,061 $359,841 $302,355 $292,341 Revenue $30,454 $188,912 $239,294 $51,000 Expenditures $- $330,133 $438,000 $118,500 $250,000 PARK CAPITAL FUND $200,000 $150,000 $100,000 $50,000 $(50,000) 2016 Actual 2017 Projected 2017 Budget 2018 Budget Fund Balance $(11,559) $(4,046) $(12,559) $193,434 Revenue $8,253 $11,450 $33,700 $215,700 Expenditures $- $3,937 $34,700 $18,220 $7,000,000 LOCAL ROAD IMPROVEMENT FUND $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Fund Balance $374,020 $1,549,453 $1,477,853 $117,603 Revenue $936,870 $1,200,433 $1,157,833 $5,139,750 Expenditures $965,806 $25,000 $54,000 $6,500,000 TAX LEVY FOR PUBLIC WORKS AND ROADS 5% annual increase in LRIF levy $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ 2016 Actual 2017 2017 2018 2019 2020 2021 2022 Projected Budget Budget Budget Budget Budget Budget Debt Service on 2018 Projects $- $- $- $- $408,345 $408,240 $402,780 $405,300 Local Road Improvement Fund $581,142 $560,533 $554,833 $725,050 $347,208 $379,340 $418,429 $451,220 General Fund - Public Works $820,377 $822,500 $822,500 $621,420 $716,420 $716,420 $716,420 $716,420 Street Name Location C d J d J N o N N I N IN I N I N I N I N 1199th Street N C) 1 1 1 'a N 51 I L L N 12012 1 1 1 1 1 1 1 1 1 1 .� > L L ' 199th Street N C C 1997 i ' ' ' ' i i ' Pave ' a_ C() 1199th Street N I Parkview to Hwy 95 1 1 1 , 2012 , 1997 1 1 1 1 1 1 1 1 1 Pave 1 1 201 51 I I I I 12012 1 1 1 1 1 1 1 1 1 1 1 1 ' 199th Street N 'Oakhill Rd N to Parkview ' 3 ' 1997 i ' ' ' ' i i ' Pave ' 20' S' 1228th Street N I Lofton Ave to Meadowbrook Ave 1 1 1 1989 1 1995 1 1 1 1 1 1 paVe I I 1 1 281 221 '230th Street N 'IWest City Limits to Manning Trl 'I 1 'I 1992 12000 1 2000' 'I 'Pave 'I I' I' 25' I 17' Xirk Ave N 230th St. to 225th St . 1 . 1992 2000 Pave 25 17 ,Mallard Ave ,228th St. to North End 3 , 1996 11 Pave, 21, 17, 1Meadowbrook Ave N 1228th St N to Oakhill Rd N 1 3 1 1992 12011 1Seal 1 I I I I 1 1 251 61 Meadowbrook Ave N :Melanie Trl N to 228th St N 3 ' 1992 ' 2011 ' Seal ' 25' 6' Meadowbrook Ave N Oakhill Rd to South End 3 1992 2011 Seal 25: 61 IMelanie Trl N (south) (Melanie Trl to Meadowbrook Ave 1 3 1 1995 12012 1Seal I I I I I 1 1 221 51 I I I I 12000 1 1 1 1 1 1 I I I I ;Oakhill Road N ;Meadowbrook Ave N to Scandia Trl 3 ; 1992 ; 25; 17; ' IParkview Ave N Parvew Lan N to Parvew Ln N 'I 3 'I 1997 12012 'I 'I I' I' I' I I I' Pave I' I 201' 51' Old Marine Tr N Olinda Trl N to Oxboro Ave N 3 2000 1994 1 1 Pave I I I I I I I 1 1 231 17 'Oldfield Ave N 'Oakhill Rd N to North 1 ' 1992 ' 2000 ' 25 17' Oren Road N Oldfield Ave N to Olinda Trl N 3 1992 2000 25• 17, I Orwell Ave N 1197th St N to Old Marine Trl N 1 3 1 1994 12000 1 1 1 1 1 Pave I I I 1 1 231 171 Orwell Ct N 'Orwell Ave N to West ; 1 ; 1994 12000 ; ; ; 'Pave ; 23; 17 IOxboro Ave N 10akhill Rd N to Old Marine Trl N 1 3 1 2004 1997 I 12 1 1 1 1 1 IpaVe I 1 1 201 131 ' IParkview Ave N Parvew Lan N to Parvew Ln N 'I 3 'I 1997 12012 'I 'I I' I' I' I I I' Pave I' I 201' 51' Parkview Lane N :199th St N to Parkview Ave N : 3 : 1997 : 2012 : : Pave: 20: 5 241$ Street Improvements Project Location Scandia, Minnesota BOLENK � October 2017 & M ELIC `` z y C• _ O o LANE .'HIELSEM.�1p}�r. \' y 23AIh L KE .r Y R 23NA Si N v 22M STN 72AIINST. H. 223N yo PILAR i U 4 _ 2 RD. N w l] GOOt! $ 2 LAKF u i34Mh 87 . { gg xrnnsT. N. q zumST. N.EL Z z 2161n Sr. H. `+ yj ■ LA/II 2r8ln 9T. N. �,Op a 3�nh ]151h STN T 15 21 87 M. 2137H &CANDIA *R r, ® 2131hSTATE HAN. 91 tCANOIF rR N x SIF Ir iY, 91 &hAY�Iw TR.k ■ raS NB Ci h1EA06V1HRap((CIR 6TATEHWT a7 y(\ l^�rl� TL 29NA $T. F.4,t O { 208th 5TH �1 S T t F 4 * 2079sT w V cm MALL WIIXRRYTRAIL j� ST.M ,e ^, _. STLW4N1, 6T. H.T 2` 2i Sq� it �� _ - g k V' Rn-d 8T. N. ¢ 3 x 57 N, r T O dAK L;ta Af. _ J $ Q F r° r°y ❑ 197N ST N '+99Gi STN �. a C I 19Th ST. C Me er [ 4 Nati L7.h� 'y tiEy 'tarvo OO[RORb CIR. j� 8 co. RD so- 1 igHs �'�i UPTOWN SEWER FUND $25,000 $20,000 $15,000 $10,000 $5,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Cash Balance $2,782 $2,943 $2,743 $1,404 Revenue $19,161 $18,000 $18,000 $20,800 Expenditures $21,781 $20,200 $20,400 $21,700 Cash Balance ■ Revenue ■ Expenditures 201 SEWER SYSTEM RATES AND NET INCOME $25,000 $1,600.00 $1,400.00 $20,000 $1,200.00 $1,000.00 $15,000 $800.00 $10,000 $600.00 $400.00 $5,000 $200.00 $- $0.00 2013 2014 2015 2016 2017 2018 Revenue Operating Expenses � Depreciation Base Charge $50,000 $40,000 $30,000 $20,000 $10,000 Jim $(10,000) $(20,000) 2017 Projected 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget ■ Year End Cash Balance $2,943 $1,404 $2,968 $4,301 $5,404 $(16,923) ■ Revenue $18,000 $20,800 $20,800 $20,800 $20,800 $20,800 ■ Expenditures $22,839 $27,339 $19,236 $19,466 $19,697 $43,127 201 SEWER FUND $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ 2016 Actual 2017 Projected 2017 Budget 2018 Budget Cash Balance $68,210 $74,510 $76,610 $98,960 Revenue $82,149 $82,900 $80,900 $88,900 Expenditures $110,201 $66,200 $62,000 $64,450 201 SEWER SYSTEM RATES AND NET INCOME $140,000 $900.00 $800.00 $120,000 $700.00 $100,000 $600.00 $80,000 $500.00 $60,000 $400.00 $300.00 $40,000 $200.00 $20,000 $100.00 $- $0.00 2011 2012 2013 2014 2015 2016 2017 2018 � Revenue Operating Expenses � Depreciation Annual Rate: 201 SEWER SYSTEM $1,500,000 $1,000,000 $500,000 $(500,000) $(1,000,000) $(1,500,000) 2017 Projected 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget ■ Year End Cash Balance $74,510 $98,960 $54,410 $78,860 $67,310 $(1,068,240) ■ Revenue $82,900 $88,900 $88,900 $88,900 $88,900 $88,900 ■ Expenditures $76,600 $64,450 $133,450 $64,450 $100,450 $1,224,450 CAN I ERTY EVY Breakdown of Tax Levy PROPERTY TAX LEVY Fund 2016 2017 2018 Proposed General Fund ; $1,498,148 ; $1,551,300 ; $1,349,820 Debt Service Fund $ 148,582 $ 116,739 , $ 152,202 , Capital Improvement Fund I $ 30,000 I $ 30,000 I $ - Equipment Replacement I $ - I $ - I $ 30,000 j Local Road Improvement ' $ 581,142 ' $ 554,833 ' $ 725,050 ' Economic Development Authority $ - $ 5,000 $ 800 Total Levy $2,257,872 $2,257,872 $2,257,872 TAX LEVY TOTAL AND LEVY PER $11000 OF TAXABLE MARKET VALUE $2,500,000 $4.50 $4.00 $2,000,000 $3.50 Lu J $3.00 0 $1,500,000 c $2.50 � LU a $2.00 $1,000,000 $1.50 $500,000 $1.00 $0.50 $ $ 2015 Actual 2016 Actual 2017 Budget 2018 Budget ■ Levy Amount $2,222,509 $2,244,336 $2,257,872 $2,257,872 ■ Levy 1$1,000 of taxable market valuation $3.66 $3.80 $3.82 $3.71 $1,600 $1,400 $11200 $1,000 M Comparison of Taking Pay 2017 District Portion of Tac yrs. 201 202,000 100,000 150,000 250,000 400,000 ❑ Pay 2017 Tax ■ Proposed 2018 Tax How Does Scandia Compare? 10496 9Q95 a046 Proposed 2018 Tax Rates 0.8% 0.71A 0.6% F Ci L4 il— C 19-21r, -11_21 O O C ' L�Cr C .0 W L4 o 0� E [� J �n W r 3 m resCL Yp� 6 4 C — O� on 00 Q � � ¢ on � s c7 �6 � � 3 0 R atl J r O Do4P 4P 1 0 w O> O D 4 C O w4 CD M cm 1P M 2 0 4 d 0 L7 I � t,17 C J J R E$ z R ff7 il5 � CD � L6 9d c _ � V m7 C $ m L _ sy W 0 a cG 22 G � OSB 22 co ❑ p 0.2% 0.195 0.0% 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 2017 vs. Proposed 2018 Tax lutes Proposed Pay 2017 2018 $"a Taxing District Rate Rate Che Proposed Pay 2017 2018 4$ Taxing District Rate Rate Chi Towns: Town of Baytown VyMO 14.540% 13.72696 -5.6% County: County without Library 27.79296 27.271% -1.9% Town of Denmark 11,264,'0 11.052% -1.9% County with Llbrary 30AS% 29.95276 -1.6% Town of Grey Claud I51and 22.4553'0 21.833% -2.9% County MVA: 4.003789'. 0.00469% 24.0°x6 Town of May 11.108% 10.83496 -2.5% County RRA 0.24396 0.224% -8.0% Town ofStlllwater 22.6743'0 21.761% -4.0% County CDA 1.475% 1.4673'0 -0.596 Town of West Lakeland 7.8703'0 8.1537. 3.67. Schools: ISD 200 Hastings 20.305% 2D.519% 1.1% ISD 200 Hasiings MVR; 0.24713% 0.228$93'0 -7.4% Cities: City of Afton 32.3003'0 32.258% -0.1% 151)622 N St PaulfMaplewood 33.582% 30.028% -10.6% City of Bayport 39.4109'0 35.967% -8.7% ISD 622 N St Paul/Maplewood MVR: 0.215904`4 0.1945696 9.856 City of Birchwood 24.1023'0 24.899% 25% ISD 624 White Bear Lake 23.476% 23.6313'0 0.796 City of Cottage Grove - Urban 43.0123'0 40.562% -5.7% 15D 624 White Bear Lake MVR: 0.229969'. 0.22258% -3.2% City of Dellwood 15.102010 14.61846 -3.2% ISD 831 Forest Lake 31.213% 26.217% -16.0% City of Forest Lake 43.473% 42.03445 -3.396 City of Grant 13.789v0 13.9159'. 0.9% 151) 832 Mahtomedi 34.0939'. 32.157% -5.6% City of Hastings 62.5189'0 91.30746 46.0% ISD 832 Mahtomedi MVR: 0.2537846 0.24118% -5.0% City of Hugo - Urban 36.360% 36.29491a -D.2% ISD 833 South Washington Co 34.30995 32.1849'0 -6.2% City of Lake Elm 20.0183'0 22.5979'. 12.99'. 151)833 South Washington Co MVR: 0.31281% 0.15596% -50.1% City of Lake St Croix Beach 47.619010 47.04146 -1.2% ISD 834 Stillwater 20.3904`4 2D_122% -1.3% City of Lakeland 44.213% 36.52145 -17.4% ISD 834 Stillwater MVR: 0.1950495 0.1$939% -2.99'0 City of Lakeland Shores 24.94995 24.6539'. -1.2% 150 Z144 L1115ago Lakes City of Landfall 56.649% 80.74346 42.5% ISD 2144 Chisa o Lakes MVR: 0.17256% 0.17180% -0.4% City ofMahtomedi 37.580% 33.97795 -9.6% City of Marine on 51 Crolx 60,67870 61.373% 1.1% Others Brown's Creek WS 5.275% 5,0183'0 .4.93'0 City of Newport 60.304% 55.84046 -7.4% carrielian marine 4 City of Oak Park Heights 56.143% 54.45191a -3.0% Comfort Lake WS 5.012% 7.822% 56.1% CRY of Oakdale 39.72136 38.47070 -3.196 Rice Creek WS 2.0887. 1.837% -12.0% City of S€andia 36.594010 36.601% 0.056 South Washington WS 0.839% 0.817% -2.6% City of St Mary's Paint 24 10% 22.687% -6.1% Valley Branch WS 1.887% 2.322% 23.1% City of St Paul Park 43.9199'0 42.5527. -3.17o Hastings HRA 1.5007. 1.453% -3.174 City of Stillwater -Urban 57.322010 53.750% -6.2% Woo dbury HRA 0.276% 0.255% -7.7% City of WN Ite Bear lake 18 9693'0 18.993% 0.1% Metropolltan Councli 0.85876 0.815% .5 .096 City of Willernie 4$.807'x'0 49.70674 1.87. Met Coun€i1 Transit 1.307% 1.225% -5.3% City of Woodbury 35.122010 33.684% -4.1% Met Mosquito Control 0.463% 0.440% -5.0% City of Woodbury MVR: 0.01187% 4.01112% -6.4% Stateo e 45.000% -1.8% Stateof MN Icabin5] 20.845% 21.000% 0.7% Fiscal Disparities (C/1) 150.04946 145.095% -9.3% ze Next Steps •'• Open hearing for comments and questions •'• Adoption of 2018 budget and tax levy at the Council meeting on Tuesday, December 19, 2017 (7:00 p.m.)