12-09-2019 Council Packet - Laserfiche WebLink

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AGENDA ITEM property's value, the City's share of the property tax bill would be: an increase of $2.16 (0.56% on a home previously valued at $250,000; an increase in tax of $4.60 (0.56%) on a $500,000 home; a $1,000,000 home will see an increase of $10.35 (0.56%); and a $2,000,000 home has an increase of $21.85 (0.56%). The actual tax impact on any particular property will depend on how the property's taxable value changed in relation to the rest of the City. Tables illustrating a 5% increase in value and a 5% decrease in value are included in this budget document. General Fund Budget General Fund Expenditures The 2020 expenditure budget is $9,143,200 which is an increase of $ 565,920 (6.6%) over the 2019 budget. The preliminary budget that is being presented for approval tonight includes expenditures totaling $9,143,200; an increase in expenditures of $565,920 (6.6%). The significant increases are the following. Wages and Benefits (Personal Services) are increasing $296,160 (5.4%). This increase is broken down as follows: Non -Union Wages 3% $27,900 Police Unions (Sgrt and Patrol) 3% + Add Longevity Ste $100,000 Admin and Public Works Unions 2.5% $25,250 Health Insurance $126/month/Employee $34,700 Elections Election Year $45,000 Worker's Comp Ins Exp Rating Change $27,110 Step Increases $36,200 Total $296,160 Insurance expenditures are another category that is increasing significantly (30.5%). This $37,500 increase is due to two factors: one is a change in our loss ratio due to land use lawsuits, and the other is a continuation of a trend of increasing costs related to police departments. There were two changes in accounting practices that increased the General Fund budget, but did not increase overall spending. The first was to move $80,000 in street maintenance from the Pavement Management Fund to the General Fund. The Associated tax revenue was also moved to the General Fund. The other change was to the accounting for the Toward Zero Deaths Grant. This increase of $119,500 is completely offset by an increase in amount of grant revenue recorded. After accounting for these increases, the remaining General Fund increases total $32,760 or 0.3%. General Fund Revenues For revenues the General Fund budget also totals $9,143,200 and is increasing by $565,920. The largest increase in revenues is the property tax line at $299,000. Other significant increases include $125,000 in the State Grant line item which was also discussed in the expenditure section. Administrative Fees charged to the utility Funds are increasing by $38,000 and are based on a percentage of the Finance and Administration budgets. Coop Police Services are increasing by $57,170 and are the amounts charged to the City of Spring Park, Minnetonka Beach and Mound for providing them police services. All other revenue changes total $46,750 and represent 0.5% of the revenue budget. Special Revenue Funds The special revenue funds that budgets are adopted for are the Park Fund, The Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. In the Park Fund the primary revenue source is park dedication fees collected from developers. By state law, these funds must be used for parkland acquisition and development. The Drug Prepared By:.MRU Reviewed By: JJV Approved By: �bV