Budget Presentation Ideas Roundtable

Transcription

1 Budget Presentation Ideas Roundtable Various Budget Ideas will be presented by: Michelle Pietrick, City of South St. Paul Ellen Paulseth, City of Maplewood Lisa Herbert, City of Rogers Fred Espe, City of Shoreview Darin Nelson, City of Shakopee Robin Roland, City of Cottage Grove There is no one size fits all for the budget process each municipality is different and we can all learn from these differences.

2 Capital Improvement Project & Debt

3 Capital Improvement Projects ,753, ,429, ,429, ,088, ,096,780 Total 74,221,567 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 74,221,567 CIP PROJECTS

4 CIP Sources 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0

5 CIP and Debt Year Proportion of Project Exp Capital Program Fund Assessments Est. Current Collected Assessments Collected thru Taxes ,738,280 2,304,780 1,433, , , ,122,140 1,468,340 1,653, , , ,085,180 1,531,580 1,553, , , ,657,480 1,493,180 1,164, , , ,774, ,380 1,775, ,320 1,065,480 Totals 15,377,260 7,796,260 7,581,000 3,032,400 4,548,600

6 Assessments 2018 $3,738,280 Assessments 1,433,500 (39%) Collected Assessments 573,400 (40%) Capital Program Fund 2,304,780 (61%) Collected thru taxes 860,100 (60%)

7 Assessments Collected thru Taxes 860,100 over 10 years ,010 86,010 86,010 86,010 86,010 86,010 86,010 86,010 86,010 86,010 Collected thru taxes $860,100 (60%)

8 Capital Programs Fund Minimum Required Balance $500,000 South St. Paul CIP Checkbook Date Item Deposit Withdrawal Balance Balance forward 4,459, Park Ref overage 1,273,460 3,186, Projects 1,272,730 1,913, LGA 900,000 2,813, Project Requests 2, , LGA 900,000 1,408, Project Requests 1,531, , LGA 900, , Project Requests 1,493, ,930 * Estimated cash 2020 LGA 900, ,070*

9 Ellen Paulseth, CPFO Budget Roundtable MN GFOA Conference September 27, 2017

10 Long Term Outlook 10-Year Financial Management Plan Includes 10-Year Capital Improvement Plan Includes Existing Debt Obligations Includes Projected New Debt Obligations Includes Operating Projections Includes Economic Assumptions Includes Estimated Operating Projections for New Capital Improvements Establishes Tax Impact and Fund Balance Projections for 10 Years

11 Fund Balance History General Fund Fund Balance History - General Fund Ratio Minimum Target Maximum Target 60.00% 50.00% 40.00% 46.10% 48.51% 44.17% 46.20% 42.60% 40.47% 30.00% 20.00% 10.00% 0.00% Ending 2011 Ending 2012 Ending 2013 Ending 2014 Ending 2015 Ending 2016

12 Fund Balance Projections General Fund Fund Balance Projections - General Fund Ratio Minimum Target Maximum Target 60.00% 50.00% 40.00% 40.47% 30.00% 38.22% 37.45% 36.54% 35.48% 34.61% 33.60% 20.00% 10.00% 0.00% Ending 2016 Estimated 2017 Projected 2018 Projected 2019 Projected 2020 Projected 2021 Projected 2022

13 Long-Term Financial Outlook Tax Rate

14 Long-Term Financial Outlook - Taxes

15 City Property Tax Levy History Average Annual Increase Proposed Year and Past Five Years is 2.8% TAX LEVY HISTORY ,738, % 21,365, ,528,400 % 18,528,400 % ,991, % 19,751,

16 City Tax Capacity Rate History Average Annual Increase Proposed Year and Past Five Years is 0.65% TAX CAPACITY RATE HISTORY % % % % % 2.0% % Est 2018

17 City Net Tax Capacity History Average Annual Increase Proposed Year and Past Five Years is 2.67% TAX CAPACITY HISTORY 31,936,556 31,688,029 34,824,694 35,038,551 37,221,915 39,682, Est 2018

18 Fiscal Disparities Distribution History Average Annual Increase Proposed Year and Past Five Years is 6.58% FISCAL DISPARITIES DISTRIBUTION HISTORY 2,295,581 2,582,639 2,551,939 2,439,009 2,872,903 3,052, Est 2018

19 Tax Rate Calculation Factors Maplewood Tax Rate Calculation Factors Fiscal City Tax Levy Tax Capacity Disparities Tax Rate ,528,400 31,936,556 2,295, % ,528,400 31,688,029 2,582, % ,991,610 34,824,694 2,551, % ,751,270 35,038,551 2,439, % ,738,833 37,221,915 2,872, % ,365,600 39,682,641 3,052, % Average Annual Increase/Decrease 2.9% 4.5% 6.2% -1.3%

20 Budgeting Fred Espe City of Shoreview

21 Financial Policies Budget Policy Recognizes the importance of long-range financial planning Biennial Operating Budget Five Year Operating Plan (FYOP) Capital Improvement Plan (CIP) Fund Balance Policy Recognizes the importance of maintaining appropriate fund balances Focus on cash flow needs and financial stability Provides fund specific guidelines according to goals established in the FYOP

22 Financial Policies Debt Policy Provides guidelines for managing debt levels Balances the use of current resources and long-term debt financing Requires the City to consider debt levels the timing of debt issuance and managing the resources for debt repayment. Community Investment Fund Policy Establishes guidance for the funding of assets that provide community-wide benefit Revenue sources Eligible costs Debt service levels Minimum fund balance

23 Financial Policies Comprehensive Infrastructure Replacement Policy Provides guidance for the replacement and funding of capital assets: General Fixed Asset Replacement Fund Street Renewal Fund Enterprise Funds Internal Service Fund

24 Budget Reports Biennial Budget Reduces staff time devoted to budget development Improves the long-term planning and priority setting process Enhanced management of financial resources Encourages a policy and goal oriented budget process Allows the Council to have a two year view of the operating budget

25 Budget Reports Five-year Operating Plan Provides a comprehensive summary and strategy for each fund Estimates potential debt issuance Determines necessary tax levy support Evaluates future changes in user fees Outlines fund balance goals Analyzes working capital levels and establishes working capital targets

26 Budget Reports Capital Improvement Program Establishes revenue sources for the purchase and replacement of all capital assets Permanent capital funds Temporary capital funds Amended in year two of the budget process

27 Budget Reports Comprehensive Infrastructure Replacement Plan Updates capital replacement estimates for a minimum of 40 years Identifies revenue sources to support capital costs Evaluates the impact of capital costs on interfund charges, property tax levies, and user fees

28 Budget Reports (pamphlets) Community Benchmarks Compares Shoreview to 14 larger and 14 smaller metropolitan area cities Property Tax data Revenue and spending activity Budget Summary Executive summary of the Operating Budget Utility Operations and Utility Rates Provides historical and projected financial information that impacts utility rate changes

29 Budget Schedule August Review preliminary budget for levy certification September Adopt preliminary levy October Review CIP November Final review of Operating Budget, Tax Levy, FYOP, CIP, and Utility Rates December Adopt Operating Budget, Tax Levy, FYOP, CIP, CHIRP, and Utility Rates

30 Thank you!