3. Truth in Taxation Hearing presentationTruth in Taxation Public Hearing2019 Budget
December 5, 2018
Purpose of Meeting:
Purpose: To gather public comment on the City’s budget,
and the property taxes needed to pay for the expenditures
that are budgeted for 2019
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/September –City Council Work Session budget
overview
September –City Council adopts resolution certifying
maximum tax levy of $2,313,880 (2.48% increase for 2019)
November-County mails proposed property tax statements
based on maximum levy amounts
December 5nd -Public hearing on 2019 budget
December 18th -Council adopts 2019 budget
Scandia’s Budget:
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
PERSONAL SERVICE
Pay structure - merit step increases for non-bargaining unit employees -2.00%
Pay structure - bargaining unit employees -2.75%
Mayor & Council wages increase based on Ordinance 156 -5.2%
Health insurance - bargaining unit - estimated -10.0%
Health insurance - non-bargaining unit - per renewal information from insurer -21.0%
PERA contribution rates - no change in rate -0.0%
Social security & medicare - no change in rate -0.0%
Workers Compensation - League range 3-6% increase -6.0%
Wage allocations
Administrator - 20% to Planning -20.00%
Public Works Director - 201 Sewer Systems -12.50%
Public Works Director - Uptown Sewer System -4.00%
Wage allocation estimates
Public Works staff - Parks Maintenance -7.50%
Public Works staff - Community Building Maintnenance -3.50%
Public Works staff - Uptown Sewer System -3.00%
Public Works staff - 201 Sewer Systems -5.50%
PT Parks - Park Improvement fund for lighted ballfield maintenance -20.00%
CONTRACTUAL SERVICES
League of Minnesota Cities dues increase -0.0%
Property insurance - League range 2 - 3% increase -
Liability Insurance - League 2-6% increase -
Auto damage & liability - League range 3 - 5% increase -
Xcel - electricity --2.0%
Contract with Sheriff Department - estimated increase -6.9%
Building Permit fees - 45% of Building permit revenues
REVENUES
Building permits - $165,000 less than 2018 projected, $254,000 less than 2017 actual -0.0%
2017 & 2018 impacts by Storm events, construction of community solar, and school
BUDGET ASSUMPTIONS
4.0%
Proposed General Fund Expenditures by Department
Proposed Spending: $1,696,800
After transfer to Capital Fund $45,800 decrease over 2018 budget
Budget decrease is primarily attributable to:
Decrease in transfer to Capital Funds -$400,000
Decrease in Public Works contractual services -$59,100
$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000
Administration & Finance
City Council
Elections
Planning & Building
Police
Fire
Public Works
Parks & Recreation
Community Center
Transfer
2019 2018 2017
Proposed General Fund Spending, by Department
Administration
& Finance,
$347,900 , 21%
City Council,
$31,000 , 2%
Elections,
$2,200 , 0%
Planning &
Building,
$119,200 , 7%Police,
$136,000 ,
8%
Fire, $262,400 ,
15%
Public Works,
$665,200 , 39%
Parks &
Recreation,
$83,100 , 5%
Community
Center,
$46,800 , 3%
Transfer ,
$3,000 , 0%
General Fund Expenditures by Department
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Transfer $523,200 $422,500 $423,500 $3,000
Community Center $36,380 $43,406 $49,600 $46,800
Parks & Recreation $63,411 $69,207 $72,800 $83,100
Public Works $679,904 $552,165 $730,500 $665,200
Fire $213,208 $255,659 $271,500 $262,400
Police $128,656 $135,309 $127,200 $136,000
Planning & Building $213,887 $175,600 $126,300 $119,200
Elections $1,765 $5,700 $6,200 $2,200
City Council $19,291 $19,500 $19,500 $31,000
Administration & Finance $331,274 $342,699 $344,000 $347,900
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
General Fund Budget by Category
Personal
Service,
$715,100 , 42%
Materials &
Supplies,
$173,900 , 10%
Contractual
Services,
$798,800 , 47%
Capital Outlay,
$6,000 , 1%
Transfers,
$3,000 , 0%
General Fund Expenditures by Category
$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000
Personal Service
Materials & Supplies
Contractual Services
Capital Outlay
Transfers
2019 2018 2017
General Fund Expenditures by Category
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Transfers $523,200 $422,500 $423,500 $3,000
Capital Outlay $27,666 $11,944 $6,500 $6,000
Contractual Services $938,605 $783,471 $863,600 $798,800
Materials & Supplies $116,452 $128,475 $187,200 $173,900
Personal Service $605,052 $677,855 $690,300 $715,100
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Other Income and Transfers in $49,637 $19,803 $18,000 $8,000
Fines & Forfeitures $8,415 $10,000 $12,000 $10,000
Charges for Service $63,915 $61,441 $60,900 $63,200
Intergovernmental Services $115,107 $96,023 $63,800 $70,200
Licenses and permits $366,902 $297,645 $132,600 $132,600
Other Taxes $18,431 $12,906 $13,200 $15,000
Property Taxes $1,531,749 $1,349,820 $1,349,820 $1,398,600
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
GENERAL FUND REVENUE SUMMARY
General Fund Summary
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Fund balance - 12/31 $1,715,456 $1,538,849 $1,194,676 $1,539,649
Revenue $2,154,157 $1,847,638 $1,650,320 $1,697,600
Expenditures $2,210,975 $2,024,245 $2,171,100 $1,696,800
Target Fund balance - 65% of net
expenditures $1,097,054 $1,055,759 $1,151,215 $1,102,920
Target Fund balance - 50% of net
expenditures $843,888 $812,122 $885,550 $848,400
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Fund Balance $-$3,981 $2,900 $1,900
Revenue $-$9,500 $10,200 $19,000
Expenditures $-$5,519 $7,300 $20,000
$-
$5,000
$10,000
$15,000
$20,000
$25,000
CABLE FRANCHISE FUND
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Fund Balance $46,608 $33,574 $40,218 $59,149
Revenue $145,205 $152,249 $152,202 $501,350
Expenditures $212,218 $165,283 $161,092 $478,476
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
DEBT SERVICE FUND SUMMARY
Capital Funds
General Capital Fund
Park Improvement Fund
Equipment Replacement Fund
Local Road Improvement Fund
2018 2019 CHANGE
CAPITAL IMPROVEMENT FUND
Bliss Addition Stormwater Plan - 100% of cost to be partially offset
by Watershed District --$ 30,000$ 30,000$
Fire Department - LED lighting - would be offset by savings in the
General Fund --$ 30,000$ 30,000$
PARK CAPITAL IMPROVEMENT FUND
Lilleskogen - wetland restoration --$ 10,000$ 10,000$
Concrete slabs under bleachers --$ 10,000$ 10,000$
Path from t-ball field to community building / pleasure rink expansion--$ 10,000$ 10,000$
Clearing and trails at nature parks (Bone Lake, Big Marine School
site, Orwell Court)--$ 10,000$ 10,000$
Settlers monument improvements --$ 5,000$ 5,000$
Doors for pavilion and water source at Lions Park --$ 15,000$ 15,000$
LOCAL ROAD IMPROVEMENT FUND
Engineering for 2020 Road Improvement projects --$ 50,000$ 50,000$
CAPITAL FUNDS CHANGES FROM 2018 - 2022 CAPITAL IMPROVEMENT PLAN
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Fund Balance $403,602 $625,585 $586,552 $617,052
Revenue $32,412 $433,288 $563,600 $228,500
Expenditures $13,642 $211,305 $380,650 $198,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
CAPITAL IMPROVEMENT FUND
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Fund Balance $477,802 $274,315 $275,662 $273,662
Revenue $171,834 $53,990 $60,540 $41,000
Expenditures $195,093 $257,477 $262,680 $43,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
EQUIPMENT REPLACEMENT FUND
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Fund Balance $(9,745)$100,763 $287,735 $84,843
Revenue $5,582 $111,919 $315,700 $147,600
Expenditures $3,768 $1,411 $18,220 $163,520
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
PARK CAPITAL FUND
Transfer from Capital
Improvement Fund
Sale of Olinda
Lane Lot and
repayment to
Capital
Improvement
Fund
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Fund Balance $1,455,036 $949,007 $117,603 $1,262,937
Revenue $1,169,768 $4,598,971 $5,139,750 $379,930
Expenditures $88,753 $5,105,000 $6,500,000 $66,000
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
LOCAL ROAD IMPROVEMENT FUND
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2017 Actual 2018 Proj.2018 Budget 2019 Budget
TAX LEVY FOR PUBLIC WORKS AND ROADS
General Fund - Public Works Local Road Improvement Fund Debt Service on 2018 Projects
Enterprise Funds
Uptown Sewer System Fund
201 Sewer System Fund
UPTOWN SEWER FUND
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Cash Balance $5,245 $9,870 $3,706 $6,011
Revenue $17,409 $19,800 $20,800 $20,800
Expenditures $17,183 $17,413 $21,700 $21,397
$-
$5,000
$10,000
$15,000
$20,000
$25,000
201 SEWER FUND
2017 Actual 2018 Projected 2018 Budget 2019 Budget
Cash Balance $82,892 $109,970 $107,342 $35,417
Expenditures $101,978 $99,522 $103,150 $137,525
Revenue $88,342 $87,900 $88,900 $90,900
$-
$50,000
$100,000
$150,000
$200,000
$250,000
SCANDIA PROPERTY TAX LEVY
Breakdown of Tax Levy
2017 Actual 2018 Budget 2019 Budget
Economic Development Authority $5,000 $800 $5,000
Local Road Improvement $560,533 $725,050 $378,930
Equipment Replacement $-$30,000 $30,000
Capital Improvement Fund $30,000 $-$-
Debt Service Fund $116,739 $152,202 $501,350
General Fund $1,531,749 $1,349,820 $1,398,600
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Property Tax Levy
2017 Actual 2018 Budget 2019 Budget
Levy Amount $2,257,872 $2,257,872 $2,313,880
Estimated Market Value $622,612,400 $642,439,900 $688,540,700
Taxable Market Value $590,055,800 $607,952,500 $655,957,100
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
PROPERTY TAX LEVYMARKET VALUE
Tax Levy and Levy per $1,000 of Market
Valuation
2017 Actual 2018 Budget 2019 Budget
Levy Amount $2,257,872 $2,257,872 $2,313,880
Levy / $1,000 of taxable market valuation $3.80 $3.71 $3.53
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
LEVY PER $1,000 OF MARKET VALUATIONPROPERTY TAX LEVY
How Does Scandia Compare?
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)
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.)