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File #:
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WS 12-25
Version:
1
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Name:
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2013 General Fund Preliminary Budget
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Type:
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Workshop Item
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Status:
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Filed
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On agenda:
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5/10/2012
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Final action:
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5/10/2012
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Title:
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2013 GENERAL FUND PRELIMINARY BASE BUDGET
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Workshop Item: 2 - Joe Huss, Finance Director
Title
2013 GENERAL FUND PRELIMINARY BASE BUDGET
Background
At the April 12 Workshop, staff presented Council with preliminary 2012/13 valuation data from Anoka County that indicates a net loss in tax base of just over 7%. Council direction from this meeting was to begin developing 2013 Budget scenarios based on maintaining the current tax rate of 33.6%. Council further directed staff to extend the budget model into 2014 assuming an additional 4% decline in overall valuation and to supplement the budget with a reserve draw of $500,000 in both 2013 and 2014. Initial base budgets for 2013 and 2014 were developed based upon these assumptions as well as moderate growth in other revenue sources. For expenditures, salaries and benefits were increased by 2% based on current labor contracts, with additional adjustments made for contracts with escalators currently in place, notably the legal services contract, the assessing contract with Anoka County, and the SBM fire services contract. For comparative purposes, staff developed a second scenario wherein the dollar amount of the levy is maintained through 2014. At this point in the budget process it is important to keep in mind we are dealing with very raw, preliminary valuation data and that scenarios will change somewhat as this data is refined throughout the process.
Constant Tax Rate Scenario
To maintain the current tax rate of 33.6% would require a levy reduction of $1.5 million in 2013, per initial staff estimates. Incorporating the assumptions mentioned above for non-tax levy revenues and expenditures into the 2013 budget model produces a budget gap (expenditures exceeding revenue) of $1.66 million. Extending the model into 2014 with the assumptions of a 4% decline in tax base and a constant tax rate would require a levy reduction of $1 million and produce a budget gap of just over $3 million.
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2012 Adopted |
2013 Budget |
2014 Budget |
BEG. FUND RES |
$9,553,249 |
$9,223,391 |
$7,585,023 |
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REVENUE |
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Property taxes |
$16,295,000 |
$14,795,000 |
$13,795,000 |
Other taxes |
120,000 |
120,000 |
120,000 |
Licenses/permits |
1,565,200 |
1,614,700 |
1,614,700 |
Intergov. Revenue |
1,038,000 |
1,082,500 |
1,104,200 |
Charges/services |
3,932,200 |
4,018,350 |
4,058,500 |
Fines/forfeits |
297,000 |
297,000 |
297,000 |
Investment inc. |
235,000 |
227,500 |
227,500 |
Miscellaneous |
67,000 |
38,000 |
38,000 |
Reserve draw |
650,000 |
500,000 |
- |
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$24,199,400 |
$22,693,050 |
$21,254,900 |
EXPENDITURES |
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Legislative |
507,470 |
520,270 |
534,120 |
Administration |
1,230,375 |
1,151,470 |
1,263,090 |
Finance |
2,160,815 |
2,207,619 |
2,251,300 |
Safety services |
10,472,093 |
10,670,139 |
10,826,540 |
Public services |
7,979,795 |
8,076,045 |
8,199,225 |
Community dev. |
1,297,860 |
1,322,925 |
1,348,510 |
Other services |
380,850 |
382,950 |
385,090 |
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$24,029,258 |
$24,331,418 |
$24,807,875 |
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Safe Margin |
$170,142 |
(1,638,368) |
(3,552,975) |
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Fund Reserve |
$9,723,391 |
$7,585,023 |
$4,032,048 |
Constant Dollar Levy Scenario
If the current tax levy of $16,295,000 were to be levied in 2013 and 2014, initial estimates are that, with a 7% decline in value in 2013 and a 4% decline in value in 2014, the tax rate would increase from 33.6% in 2012 to 36.6% in 2013 and to 38.7% in 2014. Initial estimates indicate a budget gap of $138,400 for 2013 and that the budget gap for 2014 would be $550,000.
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2012 Adopted |
2013 Budget |
2014 Budget |
BEG. FUND RES |
$9,553,249 |
$9,223,391 |
$8,585,023 |
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REVENUE |
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Property taxes |
$16,295,000 |
$16,295,000 |
$16,295,000 |
Other taxes |
120,000 |
120,000 |
120,000 |
Licenses/permits |
1,565,200 |
1,614,700 |
1,614,700 |
Intergov. Revenue |
1,038,000 |
1,082,500 |
1,104,200 |
Charges/services |
3,932,200 |
4,018,350 |
4,058,500 |
Fines/forfeits |
297,000 |
297,000 |
297,000 |
Investment inc. |
235,000 |
227,500 |
227,500 |
Miscellaneous |
67,000 |
38,000 |
38,000 |
Reserve draw |
650,000 |
500,000 |
500,000 |
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$24,199,400 |
$24,193,050 |
$24,254,900 |
EXPENDITURES |
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Legislative |
507,470 |
520,270 |
534,120 |
Administration |
1,230,375 |
1,151,470 |
1,263,090 |
Finance |
2,160,815 |
2,207,619 |
2,251,300 |
Safety services |
10,472,093 |
10,670,139 |
10,826,540 |
Public services |
7,979,795 |
8,076,045 |
8,199,225 |
Community dev. |
1,297,860 |
1,322,925 |
1,348,510 |
Other services |
380,850 |
382,950 |
385,090 |
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$24,029,258 |
$24,331,418 |
$24,807,875 |
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Safe Margin |
$170,142 |
(138,368) |
(552,975) |
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Fund Reserve |
$9,723,391 |
$9,085,023 |
$8,032,048 |
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Recommendation
Review and discuss budget information and provide direction for further budget development.
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