2018 Tax Levy and Budget December 4, :00pm

Transcription

1 2018 Tax Levy and Budget December 4, :00pm

2 Reviewed the 2018 budget process with Council and provided Council/Public Budget Request form Started budget process memo to City depts Budget requests due to Finance Department Tax Levy Committee begins meeting Present proposed levy and budget to City Council Present proposed levy and budget to City Council for approval Proposed levy and meeting date certified to Otter Tail County Public Meeting Discuss and adopt budget and levy - 6:00 pm (Council Chambers) Final levy certified to Otter Tail County

3 General Fund The General Fund is the general operating fund of the City. This fund is supported in part through Local Government Aid and the property tax levy. Special Revenue Funds Special revenue funds are used to account for proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Debt Service Funds Debt service funds are used to account for financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Capital Projects Funds Capital projects funds are used to account for financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds Enterprise funds are operated similar to a private business. The consumers of the services pay a user charge. No property tax funds are used in these businesses. Internal Service Fund The Equipment Fund is funded through user charges (equipment rent) to various City departments.

4 2018 Proposed expenditure budget $44,407, Proposed property tax levy $5,978,541 (6.73% increase) 2018 Proposed tax rate % (3.98% increase) 2018 LGA $3,672,125 (increase of $32,609 from 2017) Funding $60,000 for tree trimming program & additional $30,000 for tree removal General Fund includes street maintenance & materials of $340,000 Funding property abatements of $82,000 ($25,000 General Fund and $57,000 from Tax Increment Funds to the Port Authority) Funding $25,000 for contract planner services for second half of 2018 First year of annexation payments to Fergus Falls Township for Woodland Heights Included $5,000 to be used towards fireworks

5 Description Amount Communications Specialist $93,000 Golf Course Building and Equipment 79,500 Street Maintenance Materials 40,000 Street Overlays 30,000 General Government Buildings Capital Outlay 25,000 Building Inspection Software/Training/Equipment 22,000 Data Processing Services 18,000 Overtime Wages 18,000 Fire Department Building Repair/Hoses 16,000 Skating Rinks Boards for Cleveland 15,000 Rental Registration Software 12,000 General Department Requests 12,000

6 Fund Type Revenues Expenditures General Fund $11,929,570 $11,929,570 Special Revenue 1,665,625 1,424,120 Debt Service 2,429,327 2,424,550 Capital Projects 12,596,632 12,441,434 Enterprise 14,796,354 14,287,921 Internal Service 2,047,167 1,899,812 Total $45,464,675 $44,407,407

7 Other 1% Special Assessments 1% Bonds 6% Use of Fund Balance 12% Interest 1% Property Taxes 13% Other Taxes 3% Intergovernmental 13% Transfers 10% Rent 1% Charges/Sales 39%

8 Debt Service 6% Notices/Publishing 0% Property/Liability Insurance 1% Repairs and Maintenance 1% Transfers 6% Wages 19% Benefits 4% Capital Outlay 28% Health 4% Supplies 4% Liquor Store Inventory 10% Services 6% Other 1% Depreciation 5% Utilities 2% Building/Equipment Rental 5%

9 Proposed Increase/ Percent 2015 Levy 2016 Levy 2017 Levy 2018 Levy (Decrease) Change General Fund (Fund 101) $ 3,366,043 $ 3,803,576 $ 4,151,349 $ 4,518,673 $ 367,324 Port Authority (Fund 202) 75,000 75,000 75,000 75,000 - Public Library (Fund 222) 631, , , ,868 (1,396) Tax Abatement (Fund 225) 16,357 17,500 - Tax Abatement (Fund 229) 18,000 18,000 G.O. Equip. Certificates, Series 2005 (Fund 337) 20, PIR Project 2003A (Fund 406) 100, PIR Project 2005A (Fund 405) 2015 Refunding 34,000 20,000 18,000 16,000 (2,000) PIR Project 2007B (Fund 407) 2015 Refunding 55,000 36,000 34,000 34,000 - PIR Project 2009 (Fund 409) 66,000 66,000 66,000 64,000 (2,000) PIR Project 2012B (Fund 412) 56,000 56,000 56,000 56,000 - G.O.Capital Improvement Bonds 2010 (Fund 331) 75,000 71,000 71,000 68,000 (3,000) G.O. Capital Improvement Bonds 2012C (Fund 333) 370, , , ,000 - Capital Projects Operations (Fund 403) 30,000 30,000 30,000 30,000 - Airport Capital Improvement (Fund 456) 40,000 40,000 40,000 40,000 - Total $ 4,934,505 $ 5,240,050 $ 5,601,613 $ 5,978,541 $ 376, % Levy - General $ 3,366,043 $ 3,803,576 $ 4,151,349 $ 4,518,673 $ 367, % Levy - Port Authority 75,000 75,000 75,000 75, % Levy - Public Library 631, , , ,868 (1,396) -0.02% Levy - Tax Abatement 16,357 17,500-18,000 18, % Levy - Debt Service/Capital Projects 776, , , ,000 (7,000) -0.12% Levy - Capital Project Funds 70,000 70,000 70,000 70, % Total $ 4,934,505 $ 5,240,050 $ 5,601,613 $ 5,978,541 $ 376, % City Tax Rate % % % % Percent Change - Levy 4.94% 11.44% 6.90% 6.73% Percent Change - Tax Rate 6.22% 9.97% 1.32% 3.98%

10 59.000% $5,600, % % $5,100, % % $4,600, % % $4,100, % % $3,600, City Tax Levy $4,934,505 $5,240,050 $5,601,613 $5,978,541 City Tax Rate % % % % %

11 Change City Tax Rate % % % % 3.98% Estimated City Tax: $125,000 Home $524 $543 $550 $572 $22 $500,000 Business $4,899 $5,072 $5,138 $5,343 $205 Trends: City Tax Rate % % % % 3.98% OTC Tax Rate % % % % 2.22% ISD #544 Tax Rate % % % % (1.42%) HRA Tax Rate 1.631% 1.622% 1.606% 1.611% 0.31% Total Tax Rate % % % % 2.32% ISD #544 RMV Rate % % % % (9.23%)

12 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Taxes Licenses & Grants & Aids Charges Other Transfers Use of Fund Permits Balance 2017 $4,359, ,475 4,135, , ,250 $1,636,291 $135, $4,706, ,325 4,162, , ,000 $1,593,029 $0

13 Revenue Changes Amount Taxes $346,824 Local Government Aid 32,609 Rental Registration 39,000 TZD Program Police Overtime (10,000) PEG Access Fees 12,500 Moved TIF I 1-12 Transfer to Port Authority (25,000) Other Charges (4,280) 2017 Use of Fund Balance-Master Plan (135,000) Net Change $256,653

14 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 General Public Safety Engineering / Parks & Recreation Comm/Econ Government Public Works Development 2017 $2,287,528 $4,211,644 $2,727,004 $2,041,885 $404, $2,295,364 $4,368,361 $2,727,149 $2,133,853 $404,843

15 Expenditure Changes Amount Wages & Benefits $97,094 Elections 24,760 Benefits Owed 25,000 Health Insurance 16,800 Tree Trimming Program/Removal 90,000 Contract Planner Services 25,000 Annexation 26,851

16 Expenditure Changes Amount Master Plan-Downtown/River 2017 ($135,000) Cable Television/PEG Access 12,500 Police Radio Replacements 13,000 Fireworks 5,000 Communications 15,000 Equipment Rent 2% Increase 25,053 Other 15,595 Net Change $256,653

17 Port Authority (202) Revenues: Increase/ Actual Actual Actual Budget Proposed Decrease Taxes $ 338 $ 74,203 $ 74,840 $ 75,000 $ 75,580 $ 580 Intergovernmental Investment Earnings 14,696 6,089 7,244 10,000 7,000 (3,000) Other Interest Rent 560, , , , ,400 (2,560) Miscellaneous 2,600 1,800 1, Transfer In 1,814 57,000 57,000 Use of Fund Balance - Total Revenues $ 580,102 $ 668,326 $ 420,908 $ 328,260 $ 380,280 $ 52,020 Expenditures: Wages and Benefits $ 53,414 $ 43,052 $ 43,899 $ 77,826 $ 52,658 $ (25,168) Supplies 1, ,200 1,265 1, Services/Insurance 51,346 49,386 81,696 44,753 53,266 8,513 Repairs and Maintenance 15,037 41,397 79,546 28,000 20,000 (8,000) Property Taxes/SW Fee 10,843 13,895 17,777 18,663 18,000 (663) Other , (100) Capital Outlay 60,000 57,000 57,000 Debt Service 81,356 80,396 30, ,760 - (149,760) Transfers Out 469, , ,139 - Total Expenditures $ 682,484 $ 704,989 $ 679,463 $ 320,767 $ 202,989 $ (117,778)

18 Increase/ Actual Actual Actual Budget Proposed Decrease Revenues: Current Property Taxes $ 582,582 $ 622,674 $ 652,845 $ 696,264 $ 694,868 $ (1,396) Del/Other Property Taxes 5,952 8,438 6,623 6,750 6,650 (100) Intergovernmental 86,295 94,854 90,321 84,275 88,088 3,813 Charges for Services 5,205 5,779 4,479 4,500 4,000 (500) Fines 15,418 13,759 13,783 14,000 13,000 (1,000) Contributions 39,186 22,177 15,460 - Investment Earnings 5,979 2, ,000 1,500 (500) Miscellaneous 6,907 10,140 6,340 8,400 8, Transfers In 5,445 10,385 6,000 6,000 6,000 - Total Revenues $ 752,969 $ 790,888 $ 796,789 $ 822,189 $ 822,706 $ 517 Expenditures: Wages and Benefits $ 524,038 $ 555,240 $ 596,426 $ 633,035 $ 647,347 $ 14,312 Supplies 17,861 23,995 25,389 19,900 21,000 1,100 Services/Insurance/Utilities 56,436 54,570 51,863 56,552 42,007 (14,545) Repairs and Maintenance 15,932 13,951 9,943 14,000 13,000 (1,000) Books/Materials 83,588 85,618 79,446 81,000 82,150 1,150 Other 4,000 4,143 3,267 3,960 3,460 (500) Capital Outlay 15,673 2,059-11,000 11,000 - Transfers Out 23,892 14,946 2,742 2,742 2,742 - Total Expenditures $ 741,421 $ 754,522 $ 769,076 $ 822,189 $ 822,706 $ 517 Maintenance of Effort (MOE) Required $ 489,235 $ 489,235 $ 489,235 $ 489,235 $ 489,235 Provided 588, , , , ,818 Difference $ 99,298 $ 146,536 $ 170,333 $ 214,054 $ 212,583

19 Increase/ Actual Actual Actual Budget Proposed Decrease Revenues: Current Property Taxes $ 29,777 $ 29,636 $ 29,601 $ 30,000 $ 30,000 $ - Del/Other Property Taxes Intergovernmental 894, ,372 2,338,510 3,455,000 1,130,000 (2,325,000) Investment Earnings (6,488) 3,619 - Miscellaneous 60,087 46, ,693 60,000 60,000 - Transfer In 632, , ,459 1,679,976 2,019, ,218 G.O. Bonds Issued - 12,020,000 2,590,000 (9,430,000) Use of Fund Balance (Library Bond Proceeds) 5,325,000 5,325,000 Total Revenues $ 1,611,053 $ 658,751 $ 2,708,306 $ 17,244,976 $ 11,154,194 $ (6,090,782) Expenditures: Miscellaneous $ 29,007 $ 59,749 $ 9,411 $ 9,976 $ 19,194 $ 9,218 Capital Outlay 1,931,200 1,240,355 1,475,693 17,235,000 11,135,000 (6,100,000) Transfer Out 2,597 32,634 16,395 - Total Expenditures $ 1,962,804 $ 1,332,738 $ 1,501,500 $ 17,244,976 $ 11,154,194 $ (6,090,782)

20 Project Amount Streets: Junius Ave. (Union to Cascade) $ 400,000 Summit/Sheridan/Mt. Faith (Friberg to Concord) 600,000 Citywide Street (mill & overlay) 625,000 Union: Alcott to Douglas 450,000 Somerset Rd: Ann St. (Vacated) to 700' east 220,000 Reconstruct Lake Alice Area - Phase 3A 600,000 Lincoln Frontage Roads - Mall Area 250,000 Bridge Rehab Study/Plans: Union over Railroad 100,000 Various Parking Lots 100,000 Total Streets $ 3,345,000

21 Sidewalk/Bikepath Reconstruction: CR#1 East:Reconstruct Ped/Bike Path - Bayview $ 130,000 Vets Home to Fir/Union Ave. 100,000 Lincoln: Kennedy Park Rd to Western (Phase 1) 75,000 Lincoln: Kennedy Park Rd to Field St. (Phase 2) 100,000 CSAH 88-Tower Rd to Maryland (seal coat) 35,000 Otter Tail Dr. - Tower Rd. to KPR (Seal Coat) 25,000 Western Ave & Pioneer Rd Sidewalks 60,000 Cascade Bike Lane imp. - TH210 to Summit 10,000 Sidewalk Program 30,000 Total Sidewalk/Bikepath Reconstruction $ 565,000 Buildings: Library Renewal Project 6,825,000 Community Ice Arena - Chiller Capacity 400,000 Total Buildings $ 7,225,000 Totals for 2018 Fund 403 Budget $ 11,135,000

22 $1,000,000 $500,000 $ Gross Profit $658,980 $681,879 $646,769 $697,297 $673,052 Operating Expenses $450,914 $479,408 $469,073 $465,770 $505,417 Operating Income $208,066 $202,471 $177,696 $231,527 $167,635

23 $1,500,000 $1,000,000 $500,000 $ Gross Profit $931,339 $962,264 $996,251 $986,158 $1,036,348 Operating Expenses $492,359 $529,864 $580,318 $594,101 $629,268 Operating Income $438,980 $432,400 $415,933 $392,057 $407,080

24 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Operating Revenues $2,540,157 $2,580,556 $2,770,508 $2,758,500 $3,241,196 Operating Expenses $2,359,847 $2,274,081 $2,596,552 $2,487,993 $2,831,392 Operating Income $180,310 $306,475 $173,956 $270,507 $409,804

25 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- $(500,000) Operating Revenues $2,147,039 $2,048,795 $2,225,357 $2,109,500 $2,305,500 Operating Expenses $2,088,874 $2,117,646 $2,148,142 $2,161,734 $1,960,767 Operating Income $58,165 $(68,851) $77,215 $(52,234) $344,733

26 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Operating Revenues $1,954,414 $2,116,762 $2,212,424 $2,201,700 $2,331,700 Operating Expenses $1,610,351 $1,603,816 $1,651,178 $1,623,772 $1,841,656 Operating Income $344,063 $512,946 $561,246 $577,928 $490,044

27 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Operating Revenues $437,797 $478,274 $495,717 $514,000 $575,000 Operating Expenses $352,333 $420,251 $423,288 $397,377 $444,314 Operating Income $85,463 $58,023 $72,429 $116,623 $130,686

28 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Operating Revenues $1,843,272 $1,896,983 $1,942,238 $1,980,752 $2,017,167 Operating Expenses $1,618,479 $1,479,567 $1,656,810 $1,749,433 $1,765,803 Operating Income $224,793 $417,417 $285,427 $231,319 $251, Planned Equip. Replacements/Bldg. Imp. - $650,000