3. Budget PresentationPublic Hearing
2015 Budget
December 3, 2014
Purpose: to gather public comment on the City’s budget, and
the property taxes needed to pay for the expenditures in 2015
Meeting held in each taxing jurisdiction (county, city, school
district, etc.)
Mandated by State Legislature
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. Preliminary
levy amount 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.
June/July- staff and committees draft budgets
August-council budget work sessions
September 3rd -council adopts resolution certifying maximum
tax levy (2.14% increase for 2015)
October-council budget work session
November 5th-Planning Commission holds public hearing on
2015-2019 Capital Improvement Plan
November- county mails proposed property tax statements
December 3rd -public hearing on 2015 budget
December 16th-council adopts 2015 budget
General Fund
Operating Budgets by Department
Debt Service Funds
Streets, Equipment (Fire Hall/Public Works Paid off
November 2014)
Capital Funds
Capital Improvement, Park Improvement, Equipment
Replacement, Local Road Improvement
Enterprise Fund
201 Wastewater System, Uptown Wastewater System
Economic Development Authority Fund
General
Fund
57%
Debt Service
8%
Capital
Funds
35%
EDA
0%
General Fund
Debt Service
Capital Funds
EDA
Total Proposed
Spending:
$3,603,162
29% Increase compared
to 2014 budget
Increase is due to
increase in Capital
projects (Log House
Landing, Tanker
replacement, Quinnell
Ave)
General Fund spending
is decreasing over 7%
Debt Service decreasing
over 16%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
EDA
Enterprise
Fund
Capital Fund
Debt Service
General Fund
Personnel
Services
18%
Materials &
Supplies
6%
Contractual
Services
27%
Capital Outlays
35%
Debt Service
8%
Transfers
6%
Proposed Spending:
$1,987,341
7.09% decrease
over 2014 budget
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Admin &
Finance
18%
City Council
1%
Elections
0%
Planning &
Building
4%
Police
6% Fire
14%
Public
works
52%
Parks
3%
Comm.
Center
2%
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2011
2012
2013
2014
2015
Personnel
Services
31%
Materials &
Supplies
10%
Contractual
Services
48%
Capital
Outlays
0% Transfers
11%
Codification
Council chairs
Netting expenses related to Planning applications
Reduction in transfers to Equipment Replacement Fund from Fire and
Public Works
Tree Trimming and grubbing along “P” roads
Permanent Part time Parks Maintenance position
Additional Funds for Vinterfest
Proposed Spending:
$294,628
16.27% decrease from
2014 budget
Fire Hall Public Works
Building paid off in
November 2014!
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
2011 2012 2013 2014 2015
Debt Service
Proposed expenditures of $1,228,000 include:
$400,000 towards the improvements at Log House Landing
($100,000 from City)
$12,000 seal coating of Community Center parking lot
$36,000 for improvements at Lilleskogen (Grants/Donations,
General Fund?)
Planning Commission Rec: $22k from General Fund
$230,000 for Fire Tanker Replacement (Equipment Replacement
Fund)
$550,000 for reclamation of Quinnell Ave ($425,000 Local Road
Improvement Fund, $125,000 County funds)
Taxes
87%
Licenses
&
Permits
3%
Intergovt
Revenues
1%
Charges for
Services
6%
Fines &
Forfeitures
1%
Other
2%
Property taxes, except:
Sand and Gravel Tax
$21,802 revenue to Public Works Budget
2014 2015
General Fund $1,620,464 $1,564,818
Debt Service $327,506 $272,691
Capital Fund $222,104 $375,000
EDA $1,000 $5,000
Total Levy $2,171,074 $2,217,509
Shift funds from Equipment
Replacement and Capital
Improvement to Local Road
Improvement
$127,704 in 2014 increased to
$345,000 in 2015 to LRIF
$2,013,651
$2,055,174
$2,171,074 $2,171,074
$2,217,509
$1,900,000
$1,950,000
$2,000,000
$2,050,000
$2,100,000
$2,150,000
$2,200,000
$2,250,000
2011 2012 2013 2014 2015
Levy
Year Payable Levy $ Increase % Increase
2011 $2,013,651 $95,004 4.95%
2012 $2,055,175 $41,523 2.06%
2013 $2,171,074 $113,514 5.64%
2014 $2,171,074 $0 0%
2015 $2,217,509 $46,435 2.14%
2015 Median Tax Value (Homestead): $297,450
Increase in value of 20% compared to 2014
Median Increase in Tax of $293
$271 in Forest Lake School District
$489 in Chisago School District
1,172 parcels will see an increase, 65 will see a decrease
2015 Median Tax Value (Commercial/Industrial/Utility): $130,550
No change in value from 2014
Total Tax decrease of $210 (5.8)
52 properties will see decrease, 2 an increase (one less than 2.5 %,
the other over 20%-Zavoral Mine?)
33.57 35.78 37.29
40.94
34.61
0
5
10
15
20
25
30
35
40
45
2011 2012 2013 2014 2015
Rates
Values Increase by 20% but levy increase is 2.14% so rate
drops
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)
Open hearing for comments and questions
Adoption of 2015 budget and tax levy, and 2015-2019
Capital Improvement Program (CIP) at regular
Council meeting on
Tuesday, December 16, 2014
(7:00 p.m.)