Public Hearing PresentationPublic Hearing
2016 Budget
December 2, 2015
Purpose: to gather public comment on the City’s budget, and
the property taxes needed to pay for the expenditures in 2016
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.
April-June-Capital Improvement Committee reviews and
recommends projects for five year CIP
June/July-staff and committees draft operating budgets
August-council budget work sessions
September 15th -council adopts resolution certifying maximum
tax levy (1.82% increase for 2016)
November 4th-Planning Commission holds public hearing on
2016-2020 Capital Improvement Plan
November-county mails proposed property tax statements
December 2nd -public hearing on 2016 budget
December 15th-council adopts 2016 budget
General Fund
Operating Budgets by Department
Debt Service Funds
Streets (2007 Road Bond prepay December 2015) and
Equipment (2010 Fire Rescue Truck paid off February 2016)
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
55%
Debt Service
5%
Capital
Funds
40%
EDA
0%
General Fund
Debt Service
Capital Funds
EDA
Total Proposed
Spending:
$3,906,340
8.62% Increase
compared to 2015 budget
Increase in General
Fund (Council Audio,
Elections, PW Roads)
Debt Service decreasing
over 34%
Increase in LRIF for
reconstruction work $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
EDA
Enterprise
Fund
Capital Fund
Debt Service
General Fund
Personnel
Services
16%
Materials &
Supplies
5%
Contractual
Services
25%
Capital Outlays
40%
Debt Service
5%Transfers
9%
Proposed Spending:
$2,101,629
5.75% increase
over 2015 budget
City Council
increase 34% for
audio equipment
Elections increase for
election year
Public Works increase
15% due to increase
in transfer to LRIF
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Admin &
Finance
15%
City Council
1%
Elections
0%
Planning &
Building
5%
Police
6%Fire
11%
Public
works
57%
Parks
3%
Comm.
Center
2%
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2012
2013
2014
2015
2016
Personnel
Services
29%
Materials &
Supplies
9%
Contractual
Services
45%
Capital
Outlays
1%
Transfers
16%
Council Chambers Audio Equipment
Local Election cycle returns in 2016
Increase in transfer from General Fund fund balance to Local Road
Improvement Fund
Personnel Changes:
New Administrator
New Public Works Director
Collective Bargaining Agreement for Public Works
Proposed Spending:
$193,902
34.19% decrease from
2015 budget
2007 Road Bond
prepaid early in
December 2015
2010 Fire Rescue
Equipment Certificate
paid off in February 2016
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
2012 2013 2014 2015 2016
Debt Service
Proposed expenditures of $1,543,500 include:
$40,000 towards the improvements at Log House Landing boat
ramp ($20,000 from City)
$38,500 for improvements at Lilleskogen (Grants/Donations)
$115,00 for Fire SCBA, Masks and Compressor
Replacements(Equipment Replacement Fund)
$200,000 for Replacement of Dump Truck w/plow (Equipment
Certificate)
$1,150,000 for reclamation of 236th, 237th and Novak loop and
portions of Oldfield Road nearby (Local Road Improvement Fund)
Property Owners Surveyed via Fall Newsletter
22 responses received
Question #1: How distribute $100
$8.77 Administration and Finance
$12.14 Community Center
$17.50 Parks and Rec
$29.55 Fire Department
$30.23 Public Works
Question #2: How to fund Com Center CIP
50% Donations
50% Grants
40.91% Tax Levy
Question #3: How to fund Fire Dept CIP
36.36% Donations
45.45% Grants
77.27% Tax Levy
Question #4: How to fund Park CIP
81.82% Donations
63.64% Grants
31.82% Tax Levy
45.45% Park Dedication Fees
Question #5: How to fund Public Works CIP
27.27% Donations
50% Grants
72.73% Tax Levy
1.Street Maintenance Program
2.Civil Defense Siren
3.Fire Station HVAC System
4.Fire Dept SCBA Compressor Replacement
5.Fire Dept SCBA and Masks Replacements
6.Fire Dept Grass Rig Replacement
7.Fire Hall/Public Works Roof Replacement
8.Zamboni Replacement
8. John Deere Tractor Replacement
10. Fire Dept Radio Replacement
11. Tennis Court Reconstruction
11. Dump Truck w/Plow Replacement
13. John Deere Tractor Mower w/Broom and Blower Replacement
14. Lilleskogen Park Restoration
15. Pickup w/ Plow Replacement
15. Tiger Boom Mower Attachment Replacement
17. Tiger Ditch Rear Mower Replacement
17. Ford Ranger Replacement
Taxes
74%
Licenses
&
Permits
3%
Intergovt
Revenues
2%
Charges for
Services
6%
Fines &
Forfeitures
0%
Other
15%
Property taxes, except:
Sand and Gravel Tax
$21,802 revenue to Public Works Budget
2015 2016
General Fund $1,564,818 $1,502,939
Debt Service $272,691 $148,582
Capital Fund $375,000 $606,350
EDA $5,000 $0
Total Levy $2,217,509 $2,257,871
Shift funds from Equipment
Replacement and Debt Service to
Local Road Improvement
$345,000 in 2015 increased to
$581,142 in 2016 to LRIF
$2,055,174
$2,171,074 $2,171,074
$2,217,509
$2,257,871
$1,950,000
$2,000,000
$2,050,000
$2,100,000
$2,150,000
$2,200,000
$2,250,000
$2,300,000
2012 2013 2014 2015 2016
Levy
Year Payable Levy $ Increase % Increase
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%
2016 $2,257,871 $40,362 1.82%
2016 Median Tax Value (Homestead): $284,200
Decrease in value of 4.4% compared to 2015
Median Decrease in Tax of $79
$75 in Forest Lake School District
$93 in Chisago School District
99 parcels will see an increase, 1,095 will see a decrease
2016 Median Tax Value (Commercial/Industrial/Utility): $101,400
Slight decrease from 2015
Total Tax decrease of $69 (1.9%)
60 properties will see decrease, none will see an increase
35.78
37.29
40.94
34.61
36.71
30
32
34
36
38
40
42
2012 2013 2014 2015 2016
Rates
Values Decrease by 4% but levy increases is 1.82% so
rate increases
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 2016 budget and tax levy, and 2016-2020
Capital Improvement Program (CIP) at regular
Council meeting on
Tuesday, December 15, 2015
(7:00 p.m.)