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The CITY of EDINA 2016-2017 Budget September1, 2015 Council Meeting.

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Presentation on theme: "The CITY of EDINA 2016-2017 Budget September1, 2015 Council Meeting."— Presentation transcript:

1 The CITY of EDINA 2016-2017 Budget September1, 2015 Council Meeting

2 The CITY of EDINA Agenda Definitions Process and Timeline Budget Challenges HRA Levy Tax Comparisons www.EdinaMN.gov 2

3 The CITY of EDINA Definitions General Fund: The main operating fund of the City’s government functions. Includes about $37M of revenues and expenditures. Governmental Funds: In addition to the general fund, the City has a debt service fund, construction fund, HRA fund, and several special revenue funds. Annual expenditures are about $60-$70M. Enterprise Funds: Used to account for “business-type” activities. Total annual expenses equal about $40M Consolidated Budget: Approximately $100M in total revenues and expenditures/expenses and includes all City and HRA funds, governmental and enterprise. www.EdinaMN.gov 3

4 The CITY of EDINA Definitions www.EdinaMN.gov 4 Edina Consolidated Budget $100M Governmental Funds $60-$70M General Fund $37M Debt Service Fund $7M Construction Fund $15M Special Revenue Funds, including HRA Enterprise Funds $40M Utility Fund $16M Liquor Fund $12M Park Enterprises $11M

5 The CITY of EDINA Definitions Estimated Market Value: One way to measure “tax base”. The City Assessor estimates values for each property in Edina. The total EMV of all properties in Edina is around $10B. Tax Capacity: A second way to measure “tax base”. Tax capacity is a uniquely Minnesotan way of calculating property taxes. Tax capacity uses EMV and property classifications so that different types of property are taxed differently. www.EdinaMN.gov 5

6 The CITY of EDINA Definitions Total City Property Tax Levy or Levies: Often described as one, but the City actually has several different levies organized by purpose. General Fund Property Tax Levy: The dollar amount that the City needs from property taxes to pay for General Fund expenditures. About $25M of the $37M General Fund budget (68%). Debt Levies: Edina has several debt levies that go towards principal and interest payments on some of the City’s debt. The City also has debt that is paid by revenue other than property taxes, like our utility fund debt and special assessment debt. Other Levies: Arts & culture, equipment, and HRA are examples. www.EdinaMN.gov 6

7 The CITY of EDINA Agenda Definitions Process and Timeline Budget Challenges HRA Levy Tax Comparisons www.EdinaMN.gov 7

8 The CITY of EDINA Work Plan Drives Budget www.EdinaMN.gov 8 Work Plan Themes Council Work Plan Goals Staff Budget Staff

9 The CITY of EDINA Biennial Budget Process www.EdinaMN.gov 9 Even Year: CIP Focus First year of biennial budget Update operating budget for odd year Review CIP in detail Odd Year: Operating Budget Focus Second year of biennial budget Plan for next biennial budget

10 The CITY of EDINA Budget Timeline April 21City Manager presents 2016-2017 proposed work plan to Council May 15Department Heads send budget requests to Finance July 8ELT reviews 2016-2017 budget draft July 21City Manager presents 2016-2017 budget draft to Council Sept. 1City Council adopts preliminary 2016 property tax levy and budget Sept. 16City Council adopts new water/sewer connection charges and utility rates based on the rate study discussed on July 7 Dec. 1Public Hearing & option to adopt 2016 final property tax levy and budget. Dec. 15Deadline to adopt final 2016 property tax levy and budget www.EdinaMN.gov 10

11 The CITY of EDINA Agenda Definitions Process and Timeline Budget Challenges HRA Levy Tax Comparisons www.EdinaMN.gov 11

12 The CITY of EDINA 2016-2017 Budget Challenges Minimum wage increase affects many positions in Edina. 11.5% rate cap for health insurance premiums. FT employee count increased by 1 since last budget cycle, but 4.2 increase in the General Fund is offset by a 3.2 decrease elsewhere. Edinborough & Centennial Lakes reserve balances are projected to decrease. Liquor profits are lower than past years - 2014 budgeted transfer was $1,800,100 but actual was $1,035,000 - 2015 budgeted transfer is $1,850,100 but actual will be less than $1M - Draft 2016 budgeted transfer is about $1.15M less than 2015 budget www.EdinaMN.gov 12

13 The CITY of EDINA 2016-2017 Budget Challenges www.EdinaMN.gov 13

14 The CITY of EDINA 2016-2017 Budget Challenges 2014 General Fund unassigned fund balance was $708,294. This is lower than in the past, which affects our CIP funding. Services and expectations are increasing for all departments Preliminary budget would result in about a 7.07% property tax levy increase (City portion) – new staff requests not included (5 total FT staff requests) – GIS not included – Weber Woods and many work plan items also not included – Street sweeping expenses are being moved to Storm Utility fund Council and staff have identified many possibilities, but priorities may need to be adjusted. www.EdinaMN.gov 14

15 The CITY of EDINA Budget Summary www.EdinaMN.gov 15

16 The CITY of EDINA 2016-2017 Work Plan Themes Focused Redevelopment - PW site decision with community space + financing by 3/1/16 - Hwy 100 lid study completed by 12/31/17 - Fred Richards plan + financing by 12/31/16 Future Planning - Comprehensive plan draft complete by 12/31/17 Intergovernmental Relations www.EdinaMN.gov 16

17 The CITY of EDINA 2016-2017 Work Plan Themes Transportation & Infrastructure - Complete Grandview transportation study & plan by 12/31/17 - Complete construction of street or woonerf - Start construction on WTP #5 in 2017 - Study S’dale sanitary capacity & implement plan by 2017 - Convert debt retirement in 2017 into CIP funding - Consider increasing franchise fees for streets by 12/31/16 Enterprise Stability - Complete business plans for each enterprise www.EdinaMN.gov 17

18 The CITY of EDINA Levy Drivers www.EdinaMN.gov 18

19 The CITY of EDINA Agenda Definitions Process and Timeline Budget Challenges HRA Levy Tax Comparisons www.EdinaMN.gov 19

20 The CITY of EDINA HRA Levy for 2017 State law allows an HRA to levy up to 0.0185% the previous year’s taxable market value of all property in the City. This limit would produce tax revenue of about $1.8M in Edina. An HRA raises its own levy separate from the City, and the HRA levy is not subject to levy limits (other than above) Levies collected by an HRA must be used only for purposes listed in the HRA Act. A $95,000 HRA levy in Edina would be $4/year for a median single family home ($457,300) Sources: LMC Handbook for Cities, Edina Finance Dept., & Edina Assessing Division www.EdinaMN.gov 20

21 The CITY of EDINA Agenda Definitions Process and Timeline Budget Challenges HRA Levy Tax Comparisons www.EdinaMN.gov 21

22 The CITY of EDINA Estimated Market Value (EMV) www.EdinaMN.gov 22 Source: City Assessor’s Office and Hennepin County

23 The CITY of EDINA Annual Property Taxes www.EdinaMN.gov 23 Source: LMC Property Tax Calculator 7/20/15 & City Assessor’s Office

24 The CITY of EDINA Annual Property Taxes www.EdinaMN.gov 24 Source: LMC Property Tax Calculator 7/20/15, Bureau of Labor Statistics 8/13/15 & City Assessor’s Office

25 The CITY of EDINA Property Tax Distribution 2015 Taxes on a Homestead property valued at $457,300 in the Edina school district. www.EdinaMN.gov 25

26 The CITY of EDINA 2016 Estimated Levy Impacts In 2015 the median home pays about $100 per month in property taxes to fund all of the City provided services. Tax capacity is increasing in Edina by about 6% for taxes payable in 2016. The median value single family home is now $457,300. If the budget includes an 7.07% property tax increase, the effect on the $457,300 single family home would be about: - about 6% increase in City property taxes. - about $71 increase per year, or about $6 per month. - this home would pay about $106 per month in 2016 City property taxes. www.EdinaMN.gov 26

27 The CITY of EDINA Governmental Revenue Per Capita www.EdinaMN.gov 27 The total revenue approach: 2013 governmental revenue per capita 1Plymouth $ 684.12 2Minnetonka $ 875.60 3Eden Prairie $ 881.88 4Richfield $ 987.76 5Edina $ 1,011.63 6Hopkins $ 1,147.21 7Maple Grove $ 1,192.77 8St. Louis Park $ 1,240.14 9Bloomington $ 1,488.13 10Golden Valley $ 1,435.72 11Minneapolis $ 2,020.35 Source: MN State Auditor website 7/7/15

28 The CITY of EDINA Property Tax Revenue Per Capita The tax per capita approach: 2013 Property tax revenue per capita 1Plymouth $ 399.98 2Maple Grove $ 492.27 3Richfield $ 515.37 4Eden Prairie $ 520.78 5Bloomington $ 541.53 6St. Louis Park $ 542.23 7Edina $ 546.40 8Hopkins $ 575.73 9Minnetonka $ 606.30 10Minneapolis $ 773.91 11Golden Valley $ 814.57 Source: MN State Auditor website 7/7/15 www.EdinaMN.gov 28

29 The CITY of EDINA City Property Taxes The property buyer approach: 2014 estimated city taxes on $400,000 house 1Edina* $ 1,14112Burnsville* $ 1,861 2Plymouth* $ 1,20213St. Louis Park $ 1,937 3Eden Prairie* $ 1,42414Bloomington* $ 1,941 4Shoreview* $ 1,49515Apple Valley* $ 1,995 5Minnetonka* $ 1,55916Maplewood* $ 2,008 6Eagan* $ 1,59317Savage* $ 2,269 7Woodbury* $ 1,62218Golden Valley $ 2,466 8Lakeville* $ 1,65019Hopkins $ 2,496 9Shakopee* $ 1,67320Richfield $ 2,571 10Maple Grove* $ 1,68521Minneapolis $ 2,976 11Inver Grove Heights* $ 1,859 Source: LMC Property Tax calculator 7/7/15 *City is a member of the MLC www.EdinaMN.gov 29


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