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.
2018-2022 Capital Improvement Project & Debt
Capital Improvement Projects 2018 17,753,680 2019 12,429,147 2020 14,429,147 2021 9,088,780 2022 20,096,780 Total 74,221,567 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 74,221,567 CIP PROJECTS 0 2018 2019 2020 2021 2022
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
2018 2022 CIP and Debt Year Proportion of Project Exp Capital Program Fund Assessments Est. Current Collected Assessments Collected thru Taxes 2018 3,738,280 2,304,780 1,433,500 573,400 860,100 2019 3,122,140 1,468,340 1,653,800 661,520 992,280 2020 3,085,180 1,531,580 1,553,600 621,440 932,160 2021 2,657,480 1,493,180 1,164,300 465,720 698,580 2022 2,774,180 998,380 1,775,800 710,320 1,065,480 Totals 15,377,260 7,796,260 7,581,000 3,032,400 4,548,600
2018-2022 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%)
2018-2022 Assessments Collected thru Taxes 860,100 over 10 years 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 86,010 86,010 86,010 86,010 86,010 86,010 86,010 86,010 86,010 86,010 Collected thru taxes $860,100 (60%)
Capital Programs Fund Minimum Required Balance $500,000 South St. Paul CIP Checkbook Date Item Deposit Withdrawal Balance 12-31-2016 Balance forward 4,459,800 2016 2016 Park Ref overage 1,273,460 3,186,340 2017 2017 Projects 1,272,730 1,913,610 2017 LGA 900,000 2,813,610 2018 2018 Project Requests 2,304.780 508,830 2018 LGA 900,000 1,408,830 2019 2019 Project Requests 1,531,580-122,750 2019 LGA 900,000 777,250 2020 2020 Project Requests 1,493,180-715,930 * Estimated cash 2020 LGA 900,000 184,070*
Ellen Paulseth, CPFO Budget Roundtable MN GFOA Conference September 27, 2017
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
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
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
Long-Term Financial Outlook Tax Rate
Long-Term Financial Outlook - Taxes
City Property Tax Levy History Average Annual Increase Proposed Year and Past Five Years is 2.8% TAX LEVY HISTORY 5.0 20,738,833 3.0% 21,365,600 2.0 0.0 18,528,400 % 18,528,400 % 2.5 18,991,610 4.0% 19,751,270 2013 2014 2015 2016 2017 2018
City Tax Capacity Rate History Average Annual Increase Proposed Year and Past Five Years is 0.65% TAX CAPACITY RATE HISTORY 48.659% 48.378% 48.507% 47.248% 46.353% 2.0% 45.446% 2013 2014 2015 2016 2017 Est 2018
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 39,682,641 2013 2014 2015 2016 2017 Est 2018
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 3,052,429 2013 2014 2015 2016 2017 Est 2018
Tax Rate Calculation Factors Maplewood Tax Rate Calculation Factors Fiscal City Tax Levy Tax Capacity Disparities Tax Rate 2013 18,528,400 31,936,556 2,295,581 48.659% 2014 18,528,400 31,688,029 2,582,639 48.378% 2015 18,991,610 34,824,694 2,551,939 46.353% 2016 19,751,270 35,038,551 2,439,009 48.507% 2017 20,738,833 37,221,915 2,872,903 47.248% 2018 21,365,600 39,682,641 3,052,429 45.446% Average Annual Increase/Decrease 2.9% 4.5% 6.2% -1.3%
Budgeting Fred Espe City of Shoreview
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
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
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
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
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
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
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
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
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
Thank you!