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2018.11.08 Work Session Packet (2nd) 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Nov. 2, 2018 City Council Second Work Session Agenda Thursday, Nov. 8, 2018 Immediately following the City Council meeting Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the second work session of the Crystal City Council was held at ______ p.m. on November 8, 2018 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff ____ Deshler ____ Norris ____ Kolb ____ Therres ____ LaRoche ____ Gilchrist ____ Parsons ____ Revering ____ Adams ____ Elholm ____ Budziszewski ____ Ray ____ Dahl II. Agenda The purpose of the work session is to discuss the following agenda items: 1. 2019 – 2020 Budget review. 2. Constituent issues. 3. New business.* 4. Announcements.* * Denotes no supporting information included in the packet. III. Adjournment The work session adjourned at ______ p.m. Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531- 1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. Sept. 4, 2018 Two-year budget to focus on long term planning and capital needs. Reorganize capital funds. ●Street Fund (combined street construction and street maintenance funds). ●Parks Capital Fund (parks and park improvements). ●Building Fund (includes all city buildings and pool. ●Fleet Fund ●IT Fund (operations and capital). First step in long term capital plan. Internal Service Funds Long term planning for major capital expenditures. ●Reinvesting in parks to keep neighborhoods strong. ●Keeping business area vibrant (Becker Park Improvements). ●Police department needs. Works in progress. ●Detailed work on capital funds. ●Updated financial policies including fund balance/emergency fund policy. Change 2019 2020 Wages and benefits increase Workers compensation insurance increase Elections (including presidential primary –3 total) Additional police officer Additional funding (1% each year) ─ Park Capital Fund Increase for WMFRD (no change in service levels) Inflationary increase in levy contribution to Capital Funds Loss of COPS grant (federal funds) *This includes 100% of 2nd year funding. Category 2016 Actual 2017 Actual 2018 Budget 2019 Proposed 2020 Proposed Taxes: Property & Assessments $8,004,393 $8,709,286 $ 9,489,779 $9,716,249 $10,341,584 Special Assessments 95,653 59,331 114,000 70,500 70,500 Intergovernmental Revenue 2,008,524 2,003,243 1,868,789 1,912,339 1,777,339 Licenses & Permits 773,479 785,452 844,228 837,610 855,310 Charges for Services 793,092 758,967 831,551 818,859 864,902 Investment Income 75,154 34,575 68,000 68,000 68,000 Fines & Forfeits 322,009 327,096 304,000 292,000 307,000 Interfund Transfers and Transfers In 343,286 445,475 444,449 458,860 474,258 Miscellaneous 58,796 46,688 72,280 68,028 69,000 TOTAL $12,474,383 $13,170,113 $14,037,076 $14,242,445 $14,827,893 Change $205,369 1.46% $585,476 4.11% Major General Fund Revenue Changes Total Cost per capita* Projected Property Tax Increase $144,470 $6.32 Reallocation of State Aid Revenue $61,000 $2.67 Special Assessments -$43,500 -$1.90 Police/Fire Pension Aid $44,000 $1.93 Pawn Shop Transaction Fees -$42,000 -$1.84 Recreation $4,085 $.18 Community Center $13,300 $.58 Miscellaneous $9,603 $.42 Administrative and Other Transfers $14,411 $.63 Total $205,369 $8.98 *Per capital costs based on the Metropolitan Council’s estimated population of 22,855 for the City of Crystal in 2016. Category 2016 Actual 2017 Budget 2018 Proposed 2019 Proposed 2020 Proposed City Council, Admin., Elections, Legal, Finance $2,315,220 $2,388,515 $2,291,364 $2,055,507 $2,146,913 Police 4,829,962 5,184,703 5,629,175 5,918,569 6,164,559 Fire 1,239,663 1,320,108 1,360,507 1,445,107 1,508,437 Community Development 523,035 543,950 571,191 647,469 689,370 Streets, Parks, Buildings, Forestry, Engineering 2,257,257 2,356,329 2,590,741 2,503,105 2,578,410 Recreation 1,448,395 1,534,643 1,594,098 1,672,688 1,740,204 Transfers out -3,186 --- Total $12,613,532 $13,331,434 $14,037,076 $14,242,445 $14,827,893 Change $205,369 1.46% $585,448 4.11% Major Expenditure Changes Total Cost per capita* Wages and Benefits $346,088 $15.93 Elections $12,500 $.55 Administration -Website Completion -$35,000 -$1.53 Administration -Service Contracts -$32,500 -$1.42 Legal Services -$27,000 -$1.18 IT Reallocation Costs -$85,000 -$3.72 West Metro Fire District $62,600 $2.74 Police and Fire Pension $44,000 $1.93 Street Maintenance -Salt $15,000 $.66 Recreation $26,964 $1.18 City Building Reallocation -$188,377 -$8.24 Miscellaneous Increases $66,112 $2.89 Total $205,369 $8.99 *Per capital costs based on the Metropolitan Council’s estimated population of 22, 855 for the City of Crystal in 2016. *Per capital costs based on the Metropolitan Council’s estimated population of 22,855 for the City of Crystal in 2016. Major Revenue Changes Total Cost per capita* Projected Property Tax $625,335 $27.45 COPS Grant -$120,000 -$5.25 DEED Grant for Cadets -$20,000 -$.88 Building and Electrical Permits $17,000 $.74 Police/Fire Pension Aid $5,000 $.23 Fines $15,000 $.66 Recreation $27,300 $1.19 Community Center $6,100 $.27 Pool $8,700 $.38 Misc. and Administrative Transfers $21,041 $.92 Total $585,476 $25.62 Major Expenditure Changes Total Cost per capita* Wage and Benefits $410,645 $17.97 Elections Staffing $114,475 $5.01 Professional Services -Finance -$25,000 -$1.09 Administration –Service Contracts -$10,000 -$.44 Legal-Completion of Code Updates $15,000 -$.66 West Metro Fire District $60,313 $2.64 Miscellaneous Increases $50,015 $2.59 Total $585,448 $25.62 *Per capital costs based on the Metropolitan Council’s estimated population of 22,855 for the City of Crystal in 2016. Fund 2016 Actual 2017 Actual 2018 Levied 2019 Proposed 2020 Proposed General Fund $8,571,947 $8,657,000 $9,436,779 $9,716,249 $10,266,584 Pool Bonds Debt Service 210,600 212,000 --- EDA 246,200 277,200 277,200 282,744 288,399 Capital Improvement Funds 1,119,160 1,141,620 1,191,110 1,344,139 1,477,946 Total Tax Levy $9,937,307 $10,075,820 $10,905,089 $11,343,139 $12,032,928 Change $438,043 4.02% $695,859 6.13% Fund 2016 2017 2018 Levied 2019 Proposed 2020 Proposed Buildings $563,153 $ 574,400 $574,400 $585,888 $597,606 Fleet ---85,680 86,537 Information Technology ---159,179 158,037 Police Equipment Revolving 134,700 137,400 151,900 154,938 158,037 Park Improvement ---$248,310 $358,914 PIR 261,000 266,220 301,210 -- Street Construction 160,307 163,600 163,600 110,144 116,950 Total Capital Improvement Levy $1,119,160 $1,141,620 $1,191,110 $1,344,139 $1,477,946 Internal Service Funds Payable 2016 Payable 2017 Payable 2018 Payable 2019 Payable 2020 Tax Capacity $15,250,280 $16,716,693 $18,459,975 $19,577,862 **$20,556,755 TIF Captured Value (325,706)(248,944)(212,599)*(212,599)*(212,599) Area-wide Contribution (1,088,334)(1,082,015)(1,079,088)(1,216,174)(1,216,174) Area-wide Distribution 3,999,304 4,375,023 4,467,214 4,578,315 4,467,214 Net Tax Capacity $17,835,544 $19,760,757 $21,635,502 $22,727,404 $23,595,196 Certified Levy 9,099,500 9,798,620 10,627,889 11,060,388 11,744,529 EDA Levy 246,200 277,200 277,200 282,744 288,399 Local Levy $9,345,700 $10,075,820 $10,910,633 $11,343,132 $12,032,928 * Estimates for the 2019 Captured Tax Capacity from Tax Increment Finance Districts have not yet been received. The prior year, TIF Captured Value was used to calculate the estimated 2019 tax rate. ** Estimated at 5% increase over 2019. 2016 2017 2018 Payable 2019 Payable 2019 City Tax Rate 51.83%50.36%50.42%49.91%51.00% County Tax Rate 45.36 44.09 42.81 42.81 42.81 School Tax Rate 33.83 31.61 31.96 31.96 31.96 Other Tax Rate 10.43 10.21 9.05 9.05 9.05 Total Tax Rate 141.45%136.27%134.23%133.73%134.82% 2018 Market Value of a Home Taxable Market Value 2018 Actual 2019 Estimated $ Increase % Increase $158,760 $135,800 $685 $708 $23 3% $176,400 $155,000 $781 $808 $26 3% $196,000 $176,400 $889 $919 $30 3% $235,200 $219,100 $1,105 $1,142 $37 3% $282,240 $270,400 $1,363 $1,409 $46 3% Based upon proposed increase in the city tax levy. . Tax impacts may change slightly as more information becomes available Sept. 4 Adopt preliminary 2019-2020 operating budgets and 2019 preliminary tax levy. Sept.17 Work session to review utility rates and long-term plan Oct. 16 Adopt 2019 fee schedule and utility rates. Oct.16 Opportunity for public input. Dec. 4 Review and adopt final 2019 property tax levy and 2019-2020 budget.