1. 2015 Final Budget Presentation City of Northfield

2. 2015 Budget Development Attempted to keep expense in line with prior year Slight increase a result of increased personnel expense and increase in IT expense Departments presented to council over the last several months

3. General Fund Budget Not many major changes – $132,736 – approved from new department requests- refer to section 8, page 1 – $106,690 – additions allowed from analyzing 2014 vs 2015 request- refer to section 8, page 2 – Departments do decrease area’s when necessary – IT charges modified-section1, pg 2- general govt. exp. & transfer out ($148,000) – Proposed personnel increase budgeted for using council direction

4. General Fund

6. 2012201321042015-prelim Total Expense10,300,12910,469,65510,853,84511,108,072 % Change4.41%1.62%3.54%2.29%

7. Levy Amounts

8. 2012201320142015-Prelim Total Levy6,770,9917,345,288 7,561,090 % Increase5.0%7.8%0.00%2.8% Average % increase3.9%

9. Gen Fund Excess $ 2011-Actual2012-Actual2013-Actual2014- Budgeted 2015- Preliminary Rev over Exp.$539,729$507,385$336,729$635,119$394,119 % increase-1.61%-5.99%-33.63%46.98%-37.94%

10. Why excess Gen Fund $ Council purposely under-budgeted LGA in – 2011 by $500,000 – 2012 by $660,000 – 2013 by almost $500,000 – 2014 budgeted less expense in the amount of $635,000 This was due to the fact the state used Local Government Aid to balance their budget. Under budgeting is way to keep our City less reliant on LGA

11. 2014 General Fund Currently As of November 30 th we are 91.67% through the year Expenditures in the General Fund are at 72.60% through November 30 th. December is a big month, but we are on track to stay within budget in 2014

12. Special Revenue Funds Stayed mostly the same with the exception of personnel increases G.W. Bunday Fund transfer occurred in 2014, so fund balance will be lowered in 2014.

13. Debt Service Funds No changes Will review one last time with updated debt study before final numbers are requested next week

14. Capital Projects Funds Changes to the Park Fund and Capital Reserve Fund. – If CIP projects are approved, General Fund Transfer will be requested, Section 4, pg. 6 – Revenue from 2002 bond fund closure in 2015, section4, pg.7 – Library HVAC in 2015 added, section4, pg. 7

15. Internal Service Funds IT Fund- Revenue has been adjusted to reflect it is from funds and departments, not just a single transfer – Section5, pg. 1 Insurance Fund personnel expense allocation – Section 5, pg. 3

16. Enterprise Funds Utility funds adjusted to reflect rate increases CIP projects updated to match CIP schedule pending approval by council 2016 anticipated transfer in/out from Water Fund to Waste Water (300,000) and Storm Water (400,000) – This will come back to council for approval with the projects

17. Preliminary Levies 20142015-PreliminaryDifference General Levy7,345,2887,561,090215,802 HRA207,746218,551 10,805 EDA203,591214,180 10,589 Total7,756,6257,993,821237,196

18. Prelim levy and tax rate Market value of real estate “collapsed” in 2010 2014 Market value started to recoup what was lost 2015 large increases in market valuation for single residence homes are being seen in Rice County 2015 commercial values in Rice county seem to be relatively the same as prior year

19. Prelim levy and tax rate History of our city tax rate – 201254.519% – 201365.540% (Police station) – 201463.252% – 2015 61.693% - proposed The tax rate is going down due to increased net tax capacity.

20. Prelim levy and tax rate Levy is 2.8% higher Tax capacity is approximately 6% higher – This creates a lower rate – Levy is spread over a larger overall dollar amount – Does this mean lower taxes? maybe

21. Prelim levy and tax rate Net tax capacity increase from increase existing property values will not create lower taxes Net tax capacity increase from new properties does create lower taxes Current tax capacity increase is (mostly) from increased value of residential homes – see map from county in packet

22. Prelim levy and tax rate See Packet material