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HomeMy WebLinkAboutDecember 1, 2003 Truth in TaxCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci.columbia-heights.mn, us ADMINISTRATION Mayor Julienne Wyckoff Councilmembers Robert ,~. Williams Bruce Nawrocki Tammera Ericson Bruce Kelzenberg CitF Manager Walter R. Fehst The following is the agenda for the Truth in Taxation Heating of the City Council to be held at 7:00 p.m. on Monday, December 1, 2003 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled Persons are available upon request when the request is made at least 96 hours in advance. Please call the Deputy City Clerk at 763-706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) Call to Order - Roll Call Pledge of Allegiance Presentation of 2004 Budget and Tax Levy Information a. Walt Fehst, City Manager and William J. Elrite, Finance Director, will present information. b. Public comments c. City Council comments Adjournment Walter R. Fehst, City Manager THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS Of DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER City of Columbia Heights Truth in Taxation Hearing on the 2004 Proposed Budget and Property Taxes December 1, 2003 TRUTH IN TAXATION HEARING ON THE 2004 PROPOSED BUDGET AND PROPERTY TAXES Table of Contents 2004 Budget Message ......................................................... 2004 Revenue by Source ...................................................... 2004 All Budgetary Funds Expenditures By Functional Area .......... 2004 All Budgetary Funds Expenditures By Classification ............. 2004 Sources of General Fund, Library Fund, and EDA Revenue... 2004 General, Library, and EDA Expenditures by Classification .... Major Expenditure Increases .................................................. Class Rate Percentages By Real Property Type ......................... Changes in State Aid ........................................................... Proposed Property Taxes ..................................................... Changes in Tax Levy 2002-2004 ............................................. Where Your Property Taxes Go ............................................... Increase in Tax Revenue to City .............................................. Property Tax History from 1997 to 2004 .................................... Tax Levies Payable 2001 - 2004 ............................................. What will $30 a Month Buy? ................................................... A1 - A9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 CITY OF COLUMBIA HEIGHTS 2004 BUDGET MESSAGE This budget message accompanies the 2004 budget document prepared for the Truth in Taxation hearing which is distributed to the City Council and available to the public. The purpose of this document is to touch on the highlights of the 2004 budget overall as well as each functional area of the City. Budget Format The City of Columbia Heights budget is prepared and distributed in a summary format with useful narrative information highlighting the department activities, objectives, and budget summary. This format is designed to go beyond the normal number-crunching budget and provide the user of the budget with a more descriptive narrative explaining the highlights of the budget. Under this format the budget is broken down into ten functional areas and is prepared with a summary for each of these areas along with a detailed budget workbook for the City Council to utilize during their budget review. The summary budget book is then again summarized in a public document that is used for the City's public budget adoption meeting and for any required Truth in Taxation hearings. The budget message follows the format of the overall budget and provides a narrative section summarizing each of the functional areas along with overall summary information regarding the budget document, the total budget, property taxes, and other revenue sources. Budget Overview Budget Highlights The budget has been in a steady downward trend for several years due to levy limits. With the imposition of levy limits and no new revenue sources, it has been difficult for the City of Columbia Heights to maintain cost of living increases in the budget and impossible to increase budgets to provide expanded services to residents. This situation worsened in 2003 when the state reduced state aid by $696,700. This scenario continued into the preparation of the 2004 budget. For 2004, the state reduced aid to the City by an additional $1,048,796 allowing the City to only make up 60% of this reduction or approximately $629,276 in a property tax increase. On June 30, 2003 the City Council adopted resolution 2003-28 providing staff with guidelines for the preparation of the 2004 budget. These guidelines directed staff to prepare a budget utilizing an additional levy to make up the 60% reduction in state aid. The following chart reflects the effect of these budget reductions on the tax-supported funds. Page A-1 ~CiW of Columbia Height, Minn~ota State Aid Cu~ 2003'2004 CiW Manager's Pmp~ed 2,004 Budget Levels · Reductions for 2004 Budget ' Adopted' Re'vi'sed ..... C'uis ' wi~. Al.lo.we.d Levy lnc.mase Budget Budget For $ 420,000 4.51% 2003 2003 2003 Max Budge! icut'fm 2.003 .. General Fund Mayor-Council 211,014 200,463 (10,551) 20i,493 (9~521). City Manager 412,706 397,796 (14,9!0) 394,085 (18,621) Elections 8,105 8,105 0 38,105 30,000 Finance 643,973 611,774 (32.199) 614,918 (29,055) Assessing t0i ,000 I01,000 0 t01,000 Legal Services 196,572 t 86,743 (9,829) 187,703 (8,869) General Govt Bldgs 158,546 158,546 0 151,393 (7.153) Police 2,786,587 2,652,306 (134,281) 2,660,860 (125,727) Fire 916,572 870,760 (45.812) 875,217 (41,355) Civil Defense 84,973 84,.973 0 81,139 (3;834) Animal Control 16,150 16,150 0 15,421 (729) Engineering 319,076 275,64t (43,435) 304,680 (14,396t Streets 690,319 649,874 (40,445) 659,173 (31,146) Street Lighting i26,416 126,416 0 120,712 (5.704) Traffic Signs & Signals 73,251 73,251 0 69,946 (3,305) Weed Control 16,428 16,428 0 15,687 (741) Recreation Admin 224,417 172,747 (51,670) 214,292 (10,125) Youth Athletics 19,702 19,702 0 18,813 (889) Adult Athletics 25,328 25,328 0 24.185 (1,143) Youth Enrichment 22,t69 22,169 0 21,169 (1.000) Travel Athletics 22,635 22,635 0 21,614 (1,021) Trips & Outings 38,666 38,666 0 36,921 (1,745) Senior Citizens 78,580 78,580 0 75,035 (3',545) Recog/Speciai Events 71,368 71,368 0 68,148 (3,220) Murzyn Hall 249,022 249,022 0 237,786 (11,236) Parks 751,437 734,321 (17,116) 717.533 (33,904) Tree Maintenance- 104.500 1.01,100 (3.400) 99,785 (4,715) Contingencies/Transfers 50,000 50,000 0 47.744 (2,256) Budgeted Transfers 480,000 480,000 0 458,343 (21,657) Total 8,899,512 8,495,86~4 ,(403,648)' 8~532,900 ' (366,612) Library Fund ............... Libra~ 679,700 645,800 (33,900) 649,033 (30,867) I 5; i33,900) 649,033 (30,667) Total 679,700 64 800 community DeveloPment ..... Protective Inspections 225,204 215,455 (9,749) 215,043 (10,161 ) Com Dev Admin 137,799 118,564 (19,215) 131,582 (6,217) Economic Dev Fund 140,569 140,569 0 134,227 (6.342) Total 503,572 474,608 (28,964) ' .480,85.1 (22,72I) t'Grand'T°tal ' '1 10,,082,7e4'1 ,91',616,272 ,(466:,512)1" ,9,~62:784 ','(420,000)1 Page A-2 As mentioned above, the state legislature significantly reduced state aid to the City of Columbia Heights in 2002. The following chad reflects what the City received in state aid for the years 2001 through 2003 and includes the projection for 2004. Changes in State Aid 200t Adopted 2002 Adopted 2003 Adopted Revised 2003 2004 Proposed , , , Budget , Budgiet Budget Bud~let Budget HACA t ,004,368 0 0 0 0 LGA 2,385,618 2~589~420 2~651,999 1 ~955,299. 1,603,203 Total 3,389,986 2,589,420 2,651,999 !,955,299 t,603,203 Chan,~e from Prior Year 60,835 (800,566) , 62,579, , (696,700) (t~048,796) Following the guidelines established by the state legislature and governor, the City has passed a significant amount of the aid reductions to residents in the form of a property tax levy increase. It should be noted that although the city and county had property tax levy increases as a result of the state legislation in 2002, in that year there was a significant offset to this because the state drastically increased aid to school districts and the levy reduction by school districts was greater than the levy increase from the city and county. This is not the situation for taxes payable in 2004. For property taxes payable in 2004, the county, city and school are all experiencing aid reductions from the state and all three entities are increasing property taxes. This will result in an across-the-board property tax increase to all residential property in Columbia Heights. The following chart shows property taxes for the years 2000 through 2004. PROPERTY TAXES, 2000 - 2004 Proposed Property 2000 2001 2002 2003 2004 Taxes Adopted Adopted Adopted Adopted Proposed Library 500,244 547,767 591,588 433,585 433,585 EDA 119,296 119,295 137,015 140,569 84,965 General Fund 2,676,416 2,958,490 4,095,527 4,243,830 4,298,710 Total Levy 3,295,956 3,625,552 4,824,130 4,817,984 5,447,260 Levy Increase from Prior Year 57,331 329,596 1,198,578 (6,146) 629,276 Page A-3 The final remaining factor in the property tax formula is the state legislature's restructuring of class rate percentages for real property taxes payable in 1997 through 2003. The class rate changes made during this period of time will affect property taxes in all future years. This change had a major effect on residential property, as it was a significant shift in tax capacity value from commercial-industrial and residential non-homestead to residential homestead property. As you can see from the following table, for residential homestead property there is no change in class rate for the first $72,000 of value. There was a slight decrease in class rate for higher priced homes. However, there was a significant decrease in class rate for commercial-industrial property and residential non-homestead property. The net result of this is that although there was small reduction for residential property, there was a far greater reduction for non-residential property that, in effect, shifts a significant amount of property tax payment to residential homestead property from other properties. CLASS RATE PERCENTAGES BY REAL PROPERTY TYPE TAXES PAYABLE 1997, 1998, 1999, 2000, 2001, 2002 and 2003 Real Property Payable Payable Payable Payable Payable Payable Description 1997 1998 1999 2000 and 2001 2002 2003 Class Class Class Class Rate Class Class Rate Rate Rate Rate Rate Residential homestead First $72,000 1.00% Over $72,000 2.00% First $75,000 1.00% 1.00% Over $75,000 1.85% 1.70% First $76,000 1.00% 1.00% $76,000 - $500,000 1.65% 1.00% 1.00% Over $500,000 1.25% 1.25% Corn merci a l-lnd ustd al and public utility First $100,000 Over $100,000 First $150,000 2.70% 2.45% 2.40% 1.50% 1.50% Over $150,000 4.00% 3.50% 3.40% 2.00% 2.00% Residential non-homestead, I unit First $72,000 2.30% Over $72,000 2.30% First $75,000 1.90% 1.25% Over $75,000 2.10% 1.70% First $76,000 1.20% 1.00% $76,000 - $500,000 1.65% 1.00% 1.00% Over $500,000 1.25% 1.25% Residential non-homestead, 2-3 units and undeveloped land 2.30% 2.10% 1.70% .. 1.65% 1.50% 1.25% Residential non-homestead 4 or more units 3.40% 2.90% 2.50% 2.40% 1.80% 1.50% Low Income 1.00% 0.90% 1.00% Page A-4 Economic Environment As indicated in the Moody's Municipal Credit Report for the City of Columbia Heights, our finances remain satisfactory with reasonable General Fund reserves. As a result, the City has retained an A1 bond rating. In this rating review Moody's commended the City of Columbia Heights for our foresight in setting up reserve capital replacement funds and restructuring our funds to meet state auditor recommendations. Our revenue structure is somewhat vulnerable to economic pressure since a significant amount of our General Fund revenue still comes from state aid. As this aid and the city's property tax revenue are received in the last six months of the year, the City has been maintaining a cash flow fund balance equal to 45% of the General Fund operating budget. Subsequently, although it may appear that we have a significant fund balance reserve, it is actually dedicated to cash flow purposes. Without this fund balance, it would be necessary for the City to borrow money to operate with during the first six months of the year. The City's primary source for increased revenue is through property tax levies. Over the past several years, the City Council has maintained a very conservative profile in increasing taxes by minimal percentages. To maintain the quality of services provided to the residents of Columbia Heights, it was necessary in the 2004 budget to make a significant tax increase in the property tax levy and pass on to the residents 60% of the reduction that the City saw in state aid for 2004. Significant Highlights on Expenditures by Functional Area Administration The Administration functional area includes Mayor, City Council, City Manager, Assessing, and the Legal budgets. The proposed 2004 budget for this functional area is $882,599. This is down $38,693 from the adopted 2003 budget of $921,292. The most significant areas of change in the budget are a reduction to the Mayor/Council budget of $9,892 with the major cuts being a $4,400 decrease in Expert and Professional Services, a $2,716 reduction due to lower insurance costs, and a reduction of $1,000 in contingencies. The City Manager budget decreased by $19,919 for 2004 with the major reductions being in the form of a $7,508 cut in personnel costs due to the elimination of an intern position and a decrease in overtime. Supplies decreased by $5,675 through a reduction in the purchase of new computer equipment. Other Services and Charges were reduced by $6,736 with the primary cut being $4,000 to the advertising budget. The budget for Legal Services was reduced by $8,882. The net result of the above is that this functional area budget decreased by $38,693. Community Development This functional area covers all services previously provided by the Housing & Redevelopment Authority with the exception of the management of Parkview Villa North and South. The specific departments covered by this functional area are Building Inspections, Administration, Community Development Block Grant, Parkview Villa North and South, the Economic Development Authority, Housing Redevelopment Authority, multi-use redevelopment, and some miscellaneous housing programs. This functional area of the City was created in 1996 with the establishment of the EDA and the transfer of the previous HRA staff to the EDA as a City department. In recent years this budget has seen several changes and modifications with the increases and decreases to the Community Development Block Grant programs and the transfer of the Section 8 program to Page A-5 Metro HRA. In mid-2002 a new director was hired for the Community Development Department. Under his guidance, the primary objectives are the redevelopment of the City's industrial area and the development of a specific budget and funding sources to cover these redevelopment projects. Finance Department This functional area covers Elections, Finance, Information Systems, and Utility Billing Administration for the water, sanitary sewer, storm sewer, and refuse departments. The Finance Department for 2004 is $614,918 compared to a 2003 budget of $643,973. This is a reduction of $29,055. The largest expenditure in the Finance Department budget is for personnel. The personnel portion of this budget comprises 87% of the total budget. Subsequently, it is virtually impossible to make any large budget reductions without reducing personnel costs. Therefore, the proposed 2004 budget, which includes a reduction of $29,055 in expense, results in a reduction of personnel costs of $26,044. This type of reduction cannot be made without eliminating a position as it is known now and restructuring the department. It is hopeful that this restructuring can be done through attrition, otherwise it will be necessary to lay off one individual. The next major item in this functional area is the Election Department budget. As the City has gone to strictly an even year election, we did not have elections in 2003. In 2003 the only budgeted expenditure was for the payment on our voting equipment of $8,105. Subsequently, the budget for 2004 increases greatly as we will be having a general and primary election. This brings the total 2004 budget to $37,859. For 2004 the IS Department budget remains status quo. This department has two employees whose job responsibilities are to maintain all of the City's networking, computers, and to provide staff training on general computer applications. In addition to this, a significant amount of IS staff time is spent on program development. In 2002 the City acquired database software called CityView. This software allows the structuring and sharing of data under one central database. Since the purchase of this software, the IS department has developed a Human Resources module for tracking employees from the time of hire to the time of termination. They are also in the final stages of implementing a Special Assessment module, fire tracking, and a building permit program under the CityView centralized database. The bottom line is that this is a highly cost-effective way for the City to control data and computer costs. Fire This functional area is comprised of the Fire and Civil Defense departments. The Fire Department budget for 2004 is $878,907 which is a decrease of $35,165 from the 2003 budget of $916,572. This reduction was accomplished without the elimination of fire department personnel, which is a major benefit to residents. The Fire Department provides medical care, fire suppression and inspection services to the citizens of Columbia Heights. They also provide emergency medical services to the city of Hilltop and maintain a fully licensed, basic life-support ambulance and have the ability to transport patients to area hospitals. However, transportation services are not currently provided. Due to staff turnover in the Fire Department during 2003 it is anticipated that one firefighter position will be held vacant until July of 2004. Holding this position vacant until that time will generate additional cost savings over and above what is projected in the proposed 2004 Fire Department budget. The other major highlight for 2004 is a grant that will provide the Fire Department with a quint fire apparatus truck. This is a major addition to the department as it will be the first actual ladder truck that has aerial capabilities of firefighting. The grant for this truck, which totals $500,000 was acquired through the efforts of the Fire Chief and his staff who should be commended for this effort in providing the city with a significant enhancement to firefighting equipment through a grant as an alternative to utilizing City funds. Page A-6 General Government This functional area as a group was created new for the 1998 budget process. It is a collection of all the departmental areas that are not specifically assigned to one division head. This functional area includes the following departments: General Government Buildings, Recognition/Special Events, Contingencies and Transfers, Cable Television, Refuse and Hazardous Waste funds. Some of the notable areas under this budget are the City's float and royalty events. The City's float and royalty appear in several parades throughout central Minnesota and western Wisconsin bringing great recognition to the City of Columbia Heights. Another area in this functional budget is the cable television fund. During 2003 new equipment was purchased to replace existing broadcasting equipment. This new equipment will greatly enhance the quality of the City's cable channels. This budget is totally funded from franchise fees that the City receives from the cable company. In addition to funding all cable TV expenses, funds in the Cable/TV fund are used by other departments in the City for communication related items. The final item in this area is General Government Buildings. The budget for this department covers building maintenance for City Hall. For 2004 we have included $20,000 to enhance security and staff safety at City Hall. With the rapidly changing society we live in, staff security and safety has become a major issue and priority. Library The City's library is located at 820 40th Avenue. The library's main goal is to provide free access to informational and recreational materials for patrons in a pleasant environment conducive to the acquisition of knowledge. A variety of library-related programs (e.g. storytimes, reading clubs, filmtimes, homebound delivery, etc.) are offered for patrons of all ages from preschool through senior citizen. As a city-supported library, Columbia Heights participates in the MELSA regional system through a contract with the Anoka County library system, State-wide Borrowers Compact, and METRONET. This enables Columbia Heights patrons to gain access to special services and scholarly materials available to other participating libraries. For 2004, the proposed library budget is $631,271. This is a decrease of $48,429 from the adopted 2003 budget of $679,700. To accomplish this budget reduction several small areas of supplies and building improvements were cut. One of the most noticeable patron services that is proposed to be cut is the microfilm subscription to the Star Tribune. For many years the Columbia Heights Library has been one of two libraries in Anoka County that has maintained the microfilm subscription of the Star Tribune. The elimination of this service is a true sign of how steep the budget reduction has become. Liquor The liquor function is comprised of three liquor stores, Top Valu I, Top Valu II, and Heights Liquor, along with a capital equipment replacement fund for each of the three stores. Top Valu I is located at 4340 Central Avenue. This store opened in November of 1984 and was the City's first endeavor into a large volume discount liquor operation. Since it's opening it has been very successful. The City's second endeavor along this line was Top Valu II at 2241 37th Avenue. This store follows the same concept as Top Valu I and opened in April of 1994. As this store is located in a lower traffic area, its growth has been slower but very steady. Each year it shows a progressive increase in sales and profitability. Heights Liquor is the third store and is located at 5225 University Avenue. This store was opened in 1964 and has remained a very small, traditional municipal liquor operation. It does not operate on a high volume discount basis. Page A-7 Markups are higher at this store, along with profitability, which is due primarily to taking advantage of high volume purchasing discounts based on the volume purchased at Top Valu and the lower overhead expenses of a city-owned operation. For several years, an important discussion item regarding the liquor operation has been building a new, larger, state of the art, liquor store on University Avenue. The current store is very small and has seen significant deterioration over the years. Its size is inadequate to handle the high volume of customers and traffic. Building a new store on University Avenue could be extremely profitable to the City as we, once again, could compete with the new liquor store in Fridley and other more modern operations. Along this line, another major concern is the store we are renting on Central Avenue. Here the City spends approximately $150,000 each year on rent and CAM expenses. These unnecessary expenses could be eliminated if the City owned its liquor store on Central Avenue, which would make the operation more profitable. Currently the profits generated from the liquor operation are equivalent to a 16% property tax reduction. With newer, more cost-effective, City- owned stores on University and Central Avenues, the profitability could be increased with the net income being utilized to further offset property tax levies. Subsequently, acquiring a building on Central Avenue and constructing a building on University Avenue are major priorities for 2004. Police This functional area is comprised of the Police Department, Animal Control, DARE, and Capital Equipment Replacement budgets. The most significant item in this area is personnel costs. Over the past several years departmental staffing was increased from 22 sworn officers to 26 with the addition of three officers by federal grants, and one additional officer over and above the grant requirements. In 1999 all grant funding and the requirement to maintain this staffing level ended. The City Council has annually reviewed the costs of maintaining this higher staffing level and in the 2002 budget decided to cut back by one officer to a staffing level of 25 sworn officers. This staffing level was again reviewed for the 2003 budget and the decision was made to maintain the staff level at 25 sworn officers. The discussion regarding this staffing level continues with the 2004 budget and is concentrated on reducing the staffing level to 23 sworn officers which would still be one more from the base strength of 22 sworn officers prior to the federal grants. For 2004 the proposed Police Department budget is $2,530,312, which is down $256,275 from the adopted 2003 budget of $2,766,587. This proposed budget for 2004 does include 24 sworn officer positions. Public Works This functional area is comprised of several departments crossing several funds. One of the significant advantages of the functional area budget format adopted in 1998 is that it shows the entire Public Works function in one area. Areas covered are engineering, streets, weed control, parks, tree programs, water utility, sanitary sewer utility, storm sewer utility, garage, and capital equipment replacement funds for the Public Works operation. For 2004 the total Public Works budget is $6,623,027. The primary reductions to the 2004 budget are in the area of personnel costs. The first reduction was not filling one clerical position in the Public Works Engineering Department. This position had been vacant for several years and was proposed to be filled in 2003. Not filling this position resulted in a savings of $11,592 in the Engineering Department. In the Street Department, seasonal staffing was reduced. In the Parks Department there was a decrease of $40,029, primarily in the seasonal staffing area with the intent of not opening several ice skating rinks in 2004. These items combined with the reduction of supplies and capital outlay has allowed Public Works to significantly reduce their budget for 2004. Page A-8 Recreation Recreation is comprised of severel departments including Administration, Youth Athletics, Youth Enrichment, Adult Athletics, traveling teams, Trips and Outings, Senior Citizens, CHASE, and Murzyn Hall management. Over the years the recreation program has seen steady growth in their budget. One of the most notable areas is the Senior Citizen program. Over the years this program has grown consistently and is well received by seniors. For 2004 the Recreation Administration budget has decreased by $75,379 due to the elimination of the Youth Enrichment Coordinator and repositioning of the salary of the Athletic Coordinator to the respective programs. There was also a significant review of the allocation of administrative and operating costs for Murzyn Hall. In this re-allocation the Murzyn Hall budget decreased by $64,936. This was significantly due to space allocation to the Recreation budgets in the amount of $40,139. In addition to that, staff is doing an in-depth evaluation of fees charged for the use of Murzyn Hall in an effort to make Murzyn Hall more self-sustaining and less reliant on taxpayer dollars. Conclusion The above narrative should provide an overview of the most salient changes and assumptions included in the budget. The budget for 2004 goes way beyond a hold-the-line budget. It makes significant reductions to all functional area budgets. The property tax format in the state saw significant changes in 2002 and prior years with state legislation shifting local government aid from cities to schools. This resulted in a significant increase in the City portion of the property tax bill. However, it also resulted in a significant decrease in the school property tax levy, which overall for 2002 resulted in reduced property taxes. For 2004 this is not the case. For 2004 state legislation made cuts in state aid at all levels of government. With the significant state deficit, it can be anticipated that the state may cut back even more on aid to the city and that in future years they will look to cities to make up this aid cutback through increased property taxes. The City, for several years, has been at a hold-the-line budgeting concept, and each year has looked at City staffing and wherever feasible reduced staff and services. Because of this ongoing process of holding back on expenses, it is virtually impossible to make further budget adjustments without increasing property taxes. Subsequently, the only alternative may be to pass the state aid cuts on to residents in the form of property taxes to cover basic services and inflation. The budget process is a major undertaking by City staff and the City Council that requires a great deal of work performed by all involved to bring the process to a successful conclusion. I extend my appreciation in this endeavor to all department directors and their staff, and a special thanks to Barb Kelzenberg, Sue Schmidtbauer and Paul Grosse for their time in compiling the budget and their extensive efforts to ensure the accurecy of the entire document. This is a very trying and exhausting endeavor, and their extensive efforts are greatly appreciated. Page A-9 2004 Revenue By Source All Funds Net Sales Liquor 1,620,150 Transfers in & Non Revenue Receipts 3,109,621 Allocations 75,000 Taxes ~5,447,260 Debt Service and HRA Taxes 952,483 Sales & Related Charges 4,316,020 Miscellaneous 1,348,362 lCharges for Services 511,950 Fines and Forfeits 100,000 Licenses & Permits 323,100 Intergovernmental Revenue 2,600,743 Page 1 2004 All Budgetary Funds Expenditures By Functional Area Public Works 6,623,027 Administration 882,599 Recreation Debt Se~ice 624,300 1,406,713 Police 2,608,635 Community ,pment 1,267,271 Finance 1,201,141 ~ ~ ~ Fire "~_General Government ~~'~ Library 2,407,919 Liquor 631,271 1,398,316 Page 2 2004 All Budgetary Funds Expenditures by Classification Contingencies & Transfers 2,813,930 Capital Outlay 2,558,550 Personal Services 8,053,044 ,...., Other Services~ & Charges 3,946,412 ~_ Supplies 3,862,730 Page 3 Sources of General Fund, Library Fund and EDA Revenue 2004 Budget Charges for Services 504,350 Other 595,821 Transfers 491,266 Intergovernmenta 1,890,783 "-......... Taxes 5,447,260 --- Page 4 2004 General Fund, Library Fund and EDA Fund Expenditures by Classification Contingencies & Transfers 692,736 Capital Outlay 54,105 ~~¥ ~ Other Services / ~: &Charges ~ / X Supplies_~ 529,439 _ Personal Services 6,046,267 Page 5 Major Expenditure Changes Decrease , , 2003 Bud~let 2004 Bud~let from 2003 Police 2,790,643 2,530,312 (260,331 ) Transfers 480,000 338,725 (141,275) Civil Defense 84,973 34,565 (50,408) Recreation Admin & General 224,417 174,087 (50,330) Library 679,700 631,271 (48,429) Parks 751,437 711,407 (40,030) Fire 916,572 878,907 (37,665) Streets 690,319 656,492 (33,827) Finance 643,973 614,918 (29,055) Recognition/Special Events 71,368 46,4,,07 (24,961) City Manac, ler 412,706 392,787 /19,919) · -- Page 6 CLASS RATE PERCENTAGES BY REAL PROPERTY TYPE TAXES PAYABLE 1997, 1998, 1999, 2000, 2001, 2002, 2003 and after Real Property Payable Payable Payable Payable Payable Payable !Description 1997 1998 1999 2000 and 2002 2003 and 2001 after Class Class Class Class Class Class Rate Rate Rate Rate Rate Rate Residential homestead First $72,000 1.00% Over $72,000 2.00% First $75,000 1.00% 1.00% Over $75,000 1.85% 1.70% First $76,000 1.00% 1.00% $76,000 - $500,000 1.65% 1.00% 1.00% Over $500,000 1.25% 1.25% Commercial-Industrial and Public Utility First $100,000 Over $100,000 First $150,000 2.70% 2.45% 2.40% 1.50% 1.50% Over $150,000 4.00% 3.50% 3.40% 2.00% 2.00% Residential non-homestead, 1 unit First $72,000 2.30% Over $72,000 2.30% First $75,000 1.90% 1.25% Over $75,000 2.10% 1.70% First $76,000 1.20% 1.00% $76,000 - $500,000 1.65% 1.00% 1.00% Over $500,000 1.25% 1.25% Residential non-homestead, 2-3 units, and undeveloped land 2.30% 2.10% 1.70% 1.65% 1.50% 1.25% Residential non-homestead 4 or more units 3.40% 2.90% 2.50% 2.40% 1.80% 1.50% Low Income 1.00% 0.90% 1.00% Page 7 1 1 ! 1 ! ' '11 ' 1 I 1 1 ! ! ! 1 ! ! ! I Changes in State Aid 2001 Adopted 2002 Adopted 2003 Adopted Revised 2003 2004 Proposed Budget Budget Budget Budget Budget !HACA 1,004,368 0 0 0 0 ,LGA 2,385,618 2,589,420 2,651,999 1,955,299 1,603,203 'Total 3,389,986 2,589,420 2,651,999 1,955,299 1,603,203 Change from 'Prior Year 60,835 (800,566) 62,579 (696,700) (1,048,796) Page 8 I 1 1 1 I ! ' 1 1 I 1 ! 1 1 i I ! I i I Proposed Property Taxes 2001-2004 Property Taxes 2001 2002 2003 2004 Actual Actual Revised Proposed !Library 547,767 591,588 433,585 433,585 'EDA 119,295 137,015 140,569 84,965 General Fund 2,958,490 4,095,527 4,243,830 4,928,710 Total Levy 3,625,552 4,824,130 4,817,984 5,447,260 Levy Increase from Prior Year 329,596 1,198,578 (6,146) 629,276 Page 9 Changes in Tax Levy $5,000,000- $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 -- 2002 2003 2004 · General Fund 4,095,527 4,243,830 4,928,710 BLibra~Fund 591,588 433,585 433,585 DEDA Fund 137,015 140,569 84,965 Page 10 WHERE YOUR PROPERTY TAXES GO Payable 2003 Miscellaneous 7% County ~ School 19% City 42% WHERE YOUR PROPERTY TAXES GO Payable 2004 County 30% Miscellaneous 7% City 42% School 21% ,-- Page 11 I I I I City of Columbia Heights Increase in Tax Revenue to City Comparison of 2003 to 2004 Property Taxes Library EDA General Fund Base Levy Levy for 60% of State Aid Reduction Total Levy Certified to County Actual 2003 433,585 140,569 4,243,830 4,817,984 N/A 4,817,984 Proposed 2004 433,585 140,569 4,243,83O 4,817,984 629,276 5,447,260 Amount of Increase 0 0 0 0 629,276 629,276 Page 12 ! I I City of Columbia Heights, Minnesota Property Tax History from 1997 to 2004 On Five Selected Properties Est Mkt Value 2003 176,100 179,400 132,700 171,500 172,400 Est Mkt Value 2004 184,800 200,400 140,800 177,000 190,400 Taxable Value 2003 149,400 145,000 114,800 163,600 170,200 Taxable Value 2004 167,300 162,400 128,600 177,000 190,400 Property Identification Number Year R36 ** ** 41 0042 R36 ** ** 13 0043 R25 ** ** 41 0157 R25 ** ** 22 0047 R25 ** ** 21 0097 2004 1,823.95 1,740.40 1,300.14 1,930.17 2,104.45 2003 1,587.93 1,513.69 1,128.58 1,751.27 1,835.57 2002 1,697.96 1,622.21 1,215.65 1,873.16 1,962.91 2001 1,724.55 1,648.69 1,198.27 1,957.54 2,146.22 2000 1,568.26 1,515.30 1,071.81 2,038.67 2,069.82 1999 1,619.32 1,451.44 1,007.19 1,652.56 1,955.62 1998 1,742.06 1,547.69 1,055.55 1,820.10 2,110.15 1997 2,027.80 1,798.04 1,169.61 2,041.79 2,467.61 Increase from 2003 to 2004 236.02 226.71 171.56 178.90 268.88 Increase from 2002 to 2004 125.99 118.19 84.49 57.01 141.54 (Decrease) Increase from 1997 to 2004 (203.85) (57.64) 130.53 (111.62) (363.16) Page 13 City of Columbia Heights, Minnesota TAX LEVIES PAYABLE 2001 - 2004 2001 2002 2003 2004 Amount Adopted Adopted Adopted Adopted of Chan~le General Fund 2,958,490 4,095,527 4,243,830 4,928,710 684,880 Library 547,767 591,588 433,585 433,585 0 EDA 119,295 137,015 140,569 84,965 (55,604) Total Levy 3,625,552 4,824,130 4,817,984 5,447,260 629,276 MARKET VALUE (PAYABLE 2003) MARKET VALUE (PAYABLE 2004) 2002 Taxes 2003 Taxes 2004 Proposed Taxes Amountoflncrease 2003/2004 56,500 63,3OO County I City 128 174 128 160 138 192 10 32 School 194 137 157 2Oi Other 16 19 26 Total 512 444 513 69 MARKET VALUE (PAYABLE 2003) 92,600 MARKET VALUE (PAYABLE 2004) 103,700 County City School Other Total 2002 Taxes 221 300 330 28 879 2003 Taxes 236 297 239 37 809 2004 Proposed Taxes 267 373 285 52 977 Amount of Increase 2003/2004 31 76 46 15 168 MARKET VALUE (PAYABLE 2003) 124,900 MARKET VALUE (PAYABLE 2004) 139,900 County City School Other Total 2002 Taxes 334 454 486 41 1,315 2003 Taxes 362 456 348 55 1,221 2004 Proposed Taxes 401 559 411 77 1,448 Amount of Increase 2003/2004 39 103 63 22 227 MARKET VALUE (PAYABLE 2003) 154,200 MARKET VALUE (PAYABLE 2004) 172,700 County City , School Other Total 2002 Taxes 438 595 626 69 1,728 2003 Taxes 477 600 447 89 1,613 2004 Proposed Taxes 522 729 526 118 1,895 Amount of Increase 2003/2004 45 129 79 29 282 MARKET VALUE (PAYABLE 2003) 186,300 1 MARKET VALUE (PAYABLE 2004) 208,700 County City School Other Total 2002 Taxes 551 748 778 68 2,145 2003 Taxes 601 757 554 92 2,004 2004 Proposed Taxes 654 913 650 125 2,342 Amount of Increase 2003/2004 53 156 96 33 338 Page 14 WHAT WILL $30 A MONTH BUY? (Based on 2004 Property Tax) $30 a Month Buys Quality and Quantity in the City of Columbia Heights Telephone Two Twins Tickets Pizza for four Basic Cable TV Columbia Heights City Services Parks Streets Police Fire Library The average home in Columbia Heights pays $30 per month in city real estate taxes. The average Columbia Heights resident will spend $30 every month on various services and pleasures, such as pizza and pop for four at a local restaurant, basic cable TV for the family, monthly phone services, etc. The best value for your money in Columbia Heights is still all of the city services that $30 of your monthly property taxes will buy! Page 15