2012-08-21 Council Worksession BudgetCITY OF MENDOTA HEIGHTS
CITY COUNCIL WORKSHOP AGENDA
August 21, 2012 – 5:00 p.m.
Mendota Heights City Hall
1. Call to Order
2. 2013 Budget Discussion
DATE: August 21, 2012
TO: Mayor and City Council
FROM: Justin Miller, City Administrator
SUBJECT: Draft 2013 Budget
BACKGROUND
Attached to this report is a copy of the draft 2013 City of Mendota Heights operating budget. It
incorporates staff’s recommendations on what resources are needed to provide city services as
directed by the city council. Areas worth highlighting include:
1) The overall levy is proposed to increase by 3.99%, or $246,487. Almost half (43%, or
$106,520) of this increase is due to debt service levies that are to pay off bonds
previously issued by the city.
2) Contracts with two of the three labor unions had a 2% wage increase already negotiated
for 2013. This 2% was carried over to the remaining union (police sergeants) and the
non-unionized employees as well.
3) Health insurance premiums are set to increase by 14.2% in 2013. Included in this budget
is a 10% increase in the city contribution, leaving the remaining increase to the
employees. Unfortunately, our claims history over the past two years was significant,
with our history calling for a 61.8% rate increase. Fortunately, our membership in the
SW/WC Service Cooperative helped pare this increase down to a more manageable level.
Staff is already working with the insurance committee to look at cost-containment
options. Within the general fund, salaries and benefits comprise 65% of all expenditures.
4) Non-property tax revenues are anticipated to increase by 1.88%, or $21,701.
The impact of this proposed budget on various home values is listed below (a 4% market value
decrease was the average decrease for Mendota Heights in 2013):
2012 Home
Value
2013 Home Value
(4% market value
decrease)
2012 City Tax 2013 City Tax $/% Change
$350,000 $336,000 $1,175.97 $1,211.45 $35.48/3.02%
$450,000 $432,000 $1,511.96 $1,557.58 $45.62/3.02%
$550,000 $528,000 $1,847.95 $1,903.70 $55.75/3.02%
According to state statutes, a preliminary levy must be adopted by the city council by September
15th. This levy will be used by Dakota County in preparing preliminary tax statements and while
the city’s final levy approved in December can go down from the preliminary level, it cannot be
increased. The council is scheduled to approve the preliminary levy at the September 4th city
council meeting.
It is staff’s intent to review the overall budget at the beginning of the budget workshop and then
to respond to questions from the council as we go through each department. Department
directors will be on hand to answer any questions.
BUDGET IMPACT
The budget, which will be formally approved in December, will guide the city’s operations for
2013.
RECOMMENDATION
This budget workshop is intended to provide the city council with an opportunity to review the
proposed budget and provide feedback to staff. The direction received will allow staff to
develop a preliminary levy amount to be approved by the city council on September 4th.
-r >
0 (1)
U)
-Gq Cl) E3 C:
C31 CD 3
CTI Ul ml
C) p p
0 (D C)
0 C) C) 4F
CD C:) C)
(D
-G9 -C& -69
mi
w
N3 (D
IQ M
00
(n
C) C� C)
O
C, C)
(D CD CD
tll
E
0
0
co
�4
co
-69 -ca
OD 4�1
PO J 137
I
4- Oo CC)
W
CD
CD
9
m C�
-GG 4.9
co al =
C" m (D -P, CL w
K) iQ M
A J 0)
0
w
-c-P -69 G9 N
C)
CD C31
CD Go cn
-En � CD
cn w m
m m cn -1
:--A 6) :rl. 0
ml N co CD
co
CD w
:3
CD
X
;u
. . . . . . . . . N
C) 0 C) C) C) C) a O
CD
En
-3. C) C) C) a C) C)
C:) to co -4 a) ul
-h
0
(D
w N) N N N N N N N N3
N p w m :P mwm 40:)
M
0
r+
CD --1 6 '3 — w 6 Co C) i\)
al w m -r� m N) co 00
CD -11 w C31 N) co --4 co (D
(D.
N
-r >
0 (1)
U)
-Gq Cl) E3 C:
C31 CD 3
CTI Ul ml
C) p p
0 (D C)
0 C) C) 4F
CD C:) C)
(D
-G9 -C& -69
mi
w
N3 (D
IQ M
00
(n
C) C� C)
O
C, C)
(D CD CD
tll
E
0
0
co
�4
co
-69 -ca
OD 4�1
PO J 137
I
4- Oo CC)
W
CD
CD
9
m C�
-GG 4.9
co al =
C" m (D -P, CL w
K) iQ M
A J 0)
0
w
-c-P -69 G9 N
C)
CD C31
CD Go cn
-En � CD
cn w m
m m cn -1
:--A 6) :rl. 0
ml N co CD
co
CD w
:3
CD
TAX LEVY SUMMARY
CITY OF MENDOTA HEIGHTS
2013 BUDGET
TAX LEVY SUMMARY
—� —
2012
2013
% CHANGE
GENERAL FUND
$5,193,935
$5,331,402
2.65%
EMERGENCY PREPAREDNESS
$25,000
$25,000
0.00%
FIRE RELIEF
$68,500
$68,000
-0.73%
INFRASTRUCTURE /FACILITY RESERVE
$20,000
$20,000
0.00%
EQUIPMENT RESERVE
$20,000
$20,000
0.00%
LEGAL AND CONTINGENCY
$40,000
$40,000
0.00%
GENERAL FUND LEVY
$5,367,435
$5,504,402
2.55%
IMPROVEMENT BONDS
$441,786
$545,471
23.47%
EQUIPMENT CERTIFICATES
$53,004
$52,059
-1.78%
TOTAL SPECIAL LEVY
$494,790
$597,530
20.76%
MARKET VALUE REFERENDUM LEVY
$262,847
$266,627
— 1.44%
STREETLIGHT TAXING DISTRICT
$45,000
$48,000
6.67%
TOTAL TAX LEVY
$6,170,072
$6,416,559
3.99%
CITY OF MENDOTA HEIGHTS
gn1 'l MIDGET
Net Tax Capad
Tax Capacity Value
Fiscal diaparatiesContribution
Net Tax Capacity
Tax Capacity Rate
Tax levy
Fiscal disparities
Net tax levy
Net Tax capacity
Tax Capacity Rate
Pay 2012 Pay 2013
Actual ~�~�----81 3O3Y�
20.198.353 19,586.1 - .
(2,703,L48J (2,601,272
17,495,005 16,984,909
1
2
Actual
Estimate
5,882,2%5
6,101,982
5,608'440
5'849.528
17/05,0O5
0.32057
16,984,909
4.09%
-i.32%
4.34%
'2.82%
CL
O
(D
3
'0
rn
cn
0
:3
Cn
>
>XT-Uwomm::lm>O
= (D SD -- 0 0 (D 0- 0
0
3 C) (D CL
ID
0 0.
Cn
=. =3 cn —
:3 Cn r,-
(C) fll
0
O M
(D
f.9
J,
CY)
0)
(D-D,00 0) (D
CD
C) -
CY)
MCI
-11 -11 03 (r) Cl,
co
-M
-t,. -co -n -C:)
C)
-4 0 CT) (3) CO 00 NJ CY) (3) C)
CD
O
0 0 C) CD C) C) 0 C) CD C) C)
4G9
M (n
C)
41
6
-
(P
ro (D w CD co M 0) 1" w N
-1 4��
" 4� (n (a N " CD w w
C)
�D
N) --j 00 N) M co N
-ENP
m
Co (0 M (D " w (D m
(D
-.1
CD
CD C) CD C:) CD Cl CD C) CD CD C)
f.9
41
.a
zp
rQ
m
N)
0) cn — tQ CD -4
PQ C) — "
- -coo
CD
CD
C)
p
--I " -4 0 CD
- - -
m
co
cn
(0
- - - - -
j m CD 0 w CO 0 m rQ --j w m
m CD 00 03 w m OD w 00 PO
cn
00000700 CTI 000
Cn
j
03
C)
M
C) D. — co CD
C)
(D
to
!�
-4
m
0)
M
(D M co N) -A m 00 w
-
C
c C C 0 D m w C D m
0 C)
cn
cn
E9
cn
N)
-W
C)
0
cn
rQ
-,j -,I N) w m
tQ t m — 4�, J�- 0) w
4
0
W
p
P
-4
-,, .01 CO 00a) co --4 "
-CD -oa
m
C13
-A
- rn CD —
0) rQ 00
4
-.1
rQ
0) -1 W 00 M (D Cn CD --4 C) rQ
a 0 0 CD CD CD C) CD C) 0 CD
ul
ffl
Cn
ffl
p
N
-
O.
CY)
--j
M
— -4 00 w m (0 w
" w w C) N m m
C)
CD
co
p
-P,
m :-4 ZP� M — M 4P, M N 00 :P ro
-C) -ro -00
C)
co
-0)
--� x, -P, co w — ro ro
cn
0) --A w w (D w �P CO --4 M M
o
J
o
CD
o o o CD o C) c) 0 o C) a a
P
C)
co co M w M
m N) r1i fQ co Uri (0 w 0) w
C)
(0
w co
U) co cn CD w 0) 0) 03 U)
-a) -C) -rl -C) -C, -W
co
tQ
C)
-OD
In
C)
N)
M
M C) cn (D 4�- N) 4- CD m w m rl.)
C13
CD
CD 0 C) 0 C) CD C, C) C) CD CD 0
1.0
P)
.69
P
cn
K) 0) (D N (D cn CD m -4 w
71
US
Cn
P
Ul 00 M 0) (D CD W
P-
CA
rQ
-
— C) C) cn cn W M (.0 co i1i w
cn
co
0) cn -P. N) 4�1 " --j 00 0) m
o
w
CD
C) CD C:) C�i C) CD CD CD C) 0 CD Cl
1.9
P)
N
tQ
C)
r1i
C)
--j OD tQ -P� 00 (co:) w
w C) cn 0)000 -P
ro
CD
-4 (D y P 93 N) rQ -P, -C,
00
m
cn
-0) 00 -4 W CD
j
0 4p- 0) M 00 00 0 C) -"J C71 M
C) 41. m � 0) m
m
iQ
ri
C)
(D " co
I
6
N3
W m -4 M P� W 0) 00 W
113
P-
--4 w 0 Go — -11 co w 0) rQ w -D,
- - - - - - - - -
CD
m
- I
a) w — co o m co co m �� m --4
--A
C)
00
0) cn N 03 -P, -11 -4
0)
o
N
c) En 0 -,I ro m (D CO w
CL
O
(D
3
'0
rn
cn
0
:3
Cn