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Home My WebLink AboutDecember 3, 2007 Truth in Taxation\la~or CITY OF COLUMBIA HEIGHTS `""''' `'`'"'""' Cuuncihnembers Xnhrrr I. l6i!liunre 590 40"' Avenue N~, Columbia Heights, DiN 55421-3878 (763)706-3600 TDD (763) 706-3692 lirurr;~'~n+rrr+kr Tunroruru Urcl+nr 1'rsit our rvebsite rr(: rvs~iuci.colnn~bin-Itei~hts.nai.as e,acc l~,-L-r-nhrr~ Cil}• Dlanagcr li'nhi°rK hi~lr.ti, The following is the agenda for the Truth in Taxation Hearing of the City Council to be held at 7:00 p.m. on Monday, December 3, 2007 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation \vill 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 Truth in Taxation Hearing to Order -Roll Call 2. Pledge of Alle ig_ ance Presentation of 2008 Budget and Tax Levy Information Walt Fehst, City Manager, will present budget overview information. b. William J. Elrite, Finance Director, will graphic budget information using Power Point c. Presentation by staff on department needs (10 minutes each) i. Bill Roddy, Acting Chief of Police ii. Becky Loader, Library Director d. Walt Fehst, City Manager Budget Presentation Summation e. Public Comments 4. Adjournment of Truth in Taxation Hearin L ~// ~ ! r Walter R. Fehst, City Manager C~ City of Columbia Heights Truth in Taxation Hearing on the 2008 Proposed Budget and Property Taxes December 3, 2007 City of Columbia Heights Truth in Taxation Hearing on the 2008 Proposed Budget and Property Taxes December 3, 2007 TRUTH IN TAXATION HEARING ON THE 2008 PROPOSED BUDGET AND PROPERTY TAXES Table of Contents 2008 Budget Message ......................................................... 1 2008 Revenue by Source ........................ .............................. 2 2008 All Budgetary Funds Expenditures by Functional Area.......... 3 2008 Sources of General Fund, Library Fund, and EDA Revenue... 4 2008 General ,Library, and EDA Expenditures by Classification.... 5 General Fund Percent of Fund by Department ............................ 6 History of LGA .................................................................... 7 Property Taxes 2003 to 2008 ................................................. 8 Where Your Property Taxes Go ............................................... 9 Property Tax History from 1998 to 2008 ........................ ... ......... 10 Tax Levies Payable .......................................... ... ... ............. 11 Market Value Comparison .................. ................................... 12 Cumulative LGA Lost ........................................................... 13 LGA and Tax Levy History ........................ ........................... 14 Total Tax Supported Budgets ................................................. 15 Cost Savings 2003 to 2008 ................................................... 16 What will $60 a Month Buy? ................................................... 17 Draft Final Resolution ....................................... ... ... ... ... ........ 18 Summary of Addbacks ......................................................... 20 CITY OF COLUMBIA HEIGHTS 2008 BUDGET MESSAGE The budget message and document have been put together to comply with the City Charter and state statute requirements for providing budget information and adopting a proposed budget and proposed tax levy. Under state statutes the City of Columbia Heights must adopt a proposed budget and a proposed tax levy and certify it to the County Auditor's office prior to September 15. The City then has until December 28 to adopt and certify a final budget and levy to the County Auditor's office. The final levy can be less than the proposed levy but it cannot be greater than the proposed levy. Based on this, staff traditionally recommends establishing a proposed levy that is adequate to cover budgetary needs with the understanding that as the budget process is finalized, the City Council has the opportunity to reduce the final property tax levy. Budget Format The City of Columbia Heights budget is prepared and distributed in a format that includes useful narrative information that highlights department activities, objectives, and budget summary. This format is designed to 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 narrative budget message for each of these areas. When the City Council meets with the various departments, a detailed budget workbook will be distributed to the council for each of the functional areas. The workbook is intended for utilization during the work session to provide more detail for each individual budget. At the end of the City Council budget review process, a summary of the budget will be assembled for distribution to the public at the City's Truth in Taxation hearing, which is generally held one week prior to the adoption of the budget. Budget Overview Budget Highlights The budget has followed a steady downward trend for several years and has not kept up with inflation due to cutbacks in local government aid (LGA). With no significant new revenue sources, it has been difficult for the City of Columbia Heights to maintain cost of living increases within the budget and impossible to increase the budget to provide expanded services to residents. Some services have actually been reduced due to decreased revenue and inflation. The current situation began in 2003 when the state reduced LGA to cities to offset the state budget deficit. As is reflected in the following chart, this reduction in LGA continued through the year 2006 with a total annual loss to the City of Columbia Heights of $1,623,512. The year 2007 was the first year since 2001 where the City of Columbia Heights saw an increase in state aid. In 2007 the city's LGA increased by $210,107. In 2008 the increase to LGA will be $21,554. i-i City of Columbia Heights, Minnesota History of Local Government Aid Certified Increased Loss LGA Lost LGA to LGA final Aid Certified for Columbia Hei hts 2003 2,651,999 0 After 2003 Legislative Reductions 2003 1,955,299 696,700 696,700 2004 1,603,203 1,048,796 352,096 2005 1,058,477 1,593,522 544,726 2006 1,028,487 1,623,512 29,990 2007 1,238,594 1,413,405 (210,107) 2008 1.260.148 1.391.851 (21,554) otal LGA lost in 6 years 7,767,786 Properiy Taxes Since 2003 and as a direct result of the large reduction in LGA, it was necessary to increase property taxes. As part of the 2004 budget process, the City Manager developed athree-year strategy that involved sizeable property tax increases in 2004 and 2005 followed by much smaller property tax increases in 2006 and 2007. As you can see from the following chart, in 2004 the city's property tax levy increased by $629,276. This was followed by a property tax increase of $655,277 in 2005. In 2006 the increase dropped significantly to $245,000. In 2007, due to the slight increase the city received in LGA, the tax increase was $153,076 or an increase in our levy of 2.41 %. In 2008 the proposed levy increased by $416,282 or 6.4%. In addition to this, the City sold street infrastructure improvement bonds in 2007. The principal and interest levy for these bonds is $128,475, bringing the total levy increase to $544,757 or 8.38%. However, it should be noted that the effect on individual property tax bills will vary greatly. One of the main factors for this is how each property value increased or decreased in comparison to the total property value increase for the city. As property values fluctuate, some residents will actually see a reduction in property taxes in 2007 while other individual's bills will go up proportionately if their property has seen an increase in value. The following chart shows the city's property tax levies for the last six years for the Library, EDA and General Fund and the total decrease or increase in the property tax levy for these years. i-z Property Taxes 2003 - 2008 Property Taxes 2003 2004 2005 2006 2007 2008 Ado ted Ado ted Ado ted Ado ted Ado ted Pro osed Library 433,585 433,585 438,835 478,319 504,748 532,509 EDA 140,569 84,965 84,965 84,965 140,898 78,622 General Fund 4,243,830 4,928,710 5,578,737 5,784,253 5,854,967 6,305,764 otal Lev 4,817,984 5,447,260 6,102,537 6,347,537 6,500,613 6,916,895 Levy Change from Prior Year 629,276 655,277 245,000 153,076 416,282 Computation of Pr~o~~eity Taxes The State of Minnesota has established a very complex formula for how property tax levies are distributed to residential and commercial properties. The formula involves several factors, from homestead credits to an area-wide tax on commercial property that is shared and distributed to communities that have a limited commercial base. However, from community to community the single most important factor in the distribution of property tax levies to individual properties is the ratio of the value of your property compared to the total value of the property in your taxing district. For example, in Columbia Heights the portion of the city's levy that appears on each individual property tax statement is in direct relationship to the value of that property compared to the total value of property in the City of Columbia Heights. This factor makes it virtually impossible to compare taxes on properties of the same value from community to community as you need to factor in the total value of all property in each community. It should be quite clear that a $200,000 home in Columbia Heights would not have the same ratio to the total community value as a $200,000 home in Blaine or Coon Rapids. Subsequently, the distribution of the city tax levy fora $200,000 home in Columbia Heights would be different than the distribution of the tax levy fora $200,000 home in Blaine or Coon Rapids. In addition to this, the appraised value of homes in Columbia Heights is different. A home in Columbia Heights that is appraised at $200,000 would very likely have a very different appraisal value in Blaine or Coon Rapids. The bottom line is that it is impossible to compare taxes from one community to another on the exact value of a home. A much more accurate method is to compare what the taxes are on an average-value home in each community. When this type of tax comparison is utilized, Columbia Heights consistently comes out as being one of the lowest taxed communities in the metropolitan area. 1-3 Major Revenue Sources The two major revenue sources for the City of Columbia Heights are LGA and our property tax levy. The following chart reflects the shifting that has occurred with the reduction in state LGA over the past years making the city more reliant on our property tax levy for revenue. As you can see from the chart, in 2003 the City of Columbia Heights was certified to receive $2,651,999 in LGA and our property tax levy was $4,817,984 for a total of $7,469,983. For the next three years, 2004, 2005 and 2006, LGA continued to decline and the levy portion of our revenue continued to increase. However, even for 2006 our total combined revenue from these two sources was less than it was in 2003. As you can see from the chart, 2007 and 2008 are the first years where our combined LGA and property tax levy exceeded where we were at in 2003. This has necessitated the City of Columbia Heights to operate under a very tight budget the last four years and absorb inflation into these smaller budgets. LGA and Tax Levy History ^LGA ^ Tax Levy 6,500,000 - _ __ ___ _ ______ _. __.__.--_____ __.__._ _ ___ 7,500,000 6,500,000 4,817,984 6,500,613 5,500,000 6,241,986 6,918,895 4,500,000 5,447,260 8,347,537 3,500,000 2,500,000 2,651,999 i 1,500,000 1,803,203 1,058,473 1,028 487 1,238,594 1,280,148 ~ 500,000 1~ ---- . __ _ _ _ - ~~__ - 2003 2004 2005 2006 2007 2008 LGA 2,651,999 1,603,203 1,058,473 1,028,487 1,238,59 1,260,148 Tax Le 4,817,98 5,447,260 6,241,986 6,347,537 6,500,613 6,916,895 otal 7,469,983 7,050,463 7,300,459 7,376,02 7,739,207 8,177,043 1-4 Significant Highlights on Expenditures The following chart shows what the City Council and staff have actually accomplished in reducing the budget over the last four years. As you can see from this chart, the budget for tax-supported funds, the General Fund, Library Fund, and EDA Fund, in 2003 was $9,719,781. The budget saw a major reduction to $8,948,853 in 2004. Since 2004 there have been additions made to the Police and Fire departments and other inflationary factors that bring us to a budget of $9,508,549 in 2007, which is still over $200,000 less than the budget for 2003. 2008 is the first year of noticeable budget growth, where the budget actually exceeds the 2003 budget. Considering the inflation rate over the last four years, this has been a major accomplishment--to maintain services to residents, absorb all inflationary costs, and maintain a low budget. Total Tas Supported Budgets General Fund, Library Fund, and EDA Fund _ __---_ __.... . _ _ __ _- _ _ - - _ _ _ __ __ - _ __ _ _ 10,006,735 ~o,ooo,oo0 9,719,781 i 9,508,549 s,soo,ooo '~ 152 347 9 i , , , 8,948,853 9,040,029 9,000,000 8.00,000 4 5,000,000 7,500,000 T,000,000 F ~~ ~,N 6,500,000 - t .,., , - 6,000,000 5,.00,000 2003 2004 2005 2006 200T 2008 Conclusion The above narrative should provide an overview of the most salient changes and assumptions included in the budget. The property tax increase for 2008 is the start of the City's financial recovery from the significant losses of state aid that started in 2003. The 2008 levy allows for an increase in some services to residents. i-s All Budgetary Funds Revenue by Source Sales & Related Charges 5,456,067 Miscellaneous 704, 500 Fines & Forfeits 143, 000 Charges for Services 514,966 Intergovernmental Revenue Licenses & 2,222,804 Permits 480, 370 Ad ValoremTaxes 6, 846, 895 HRA & TIFF Levy 946, 241 2 All Budgetary Funds Expenditures by Functional Area Recreation 679,694 Public Works Solid Waste & Recycling 1,381,637 Public Works Utility Funds 6,613,455 Community Development 871,996 Finance 1,246,038 Fire 1,182,112 General Government 551,245 Public Works General Fund 2,200,639 Administration 880,864 Debt Service 2,470,750 Police 3,142,850 Library 719,156 Liquor 2,195,525 3 Sources of General Fund, Library Fund and EDA Revenue Transfers & Non Charc Serv 514, Intergovernmental 1,680,304 Taxes 7,043,136 Other RPv General Fund, Library and EDA Expenditures by Classification Contingencies & Transfers Capital Outlay ~.~~ ~~~ E Other Service: & Charges 1, 784, 050 Supplies 640,318 Personal Services 6, 902, 024 5 General Fund by Percent of Total Mayor-Council General Government Building Finance Recreation City Manager Fire Public Works Police 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 6 City of Columbia Heights, Minnesota History of Local Government Aid Certified LGA Lost LGA Increased Loss to LGA Ori final Aid Certified for Columbia Hei hts 2003 2,651,999 0 Aid After 2003 Legislative Reductions 2003 1,955,299 696,700 696,700 2004 1,603,203 1,048,796 352,096 2005 1,058,477 1,593,522 544,726 2006 1,028,487 1,623,512 29,990 2007 1,238,594 1,413,405 (210,107) 2008 1,260,148 1,391,851 (21,554) Total LGA lost in 6 years 7,767,786 Property Taxes 2003 - 2008 Property Taxes 2003 Adopted 2004 Adopted 2005 Adopted 2006 Adopted 2007 Adopted 2008 CM Proposed 2008 Council Proposed Library EDA General Fund 433,585 140,569 4,243,830 433,585 84,965 4,928,710 438,835 84,965 5,578,737 478,319 84,965 5,784,253 504,748 140,898 5,854,967 532,509 78,622 6,235,764 532,509 78,622 6,305,764 Total Levy 4,817,984 5,447,260 6,102,537 6,347,537 6,500,613 6,846,895 6,916,895 Levy Change from Prior Year 629,276 655,277 245,000 153,076 346,282 416,282 Percentage Increase 13.06% 12.03% 4.01% 2.41% 5.33% 6.40% Infrastructure Bond Levy 128,474 128,475 Total Levy 6,975,369 7,045,370 Percentage Increase 7.48% 8.38% County 33% Where Your Property Taxes Go Payable 2007 Miscellaneous 4% School 19% city Where Your Property Taxes Go 44% Payable 2008 Miscellaneous 7% County 32% School 17% City 44% City of Columbia Heights, Minnesota Property Tax History from 1998 to 2008 On Five Selected Properties Est Mkt Value 2004 184,800 200,400 140,800 177,000 190,400 Est Mkt Value 2005 202,200 220,000 150,000 216,500 229,800 Est Mkt Value 2006 215,700 248,400 162,700 225,700 249,800 Est Mkt Value 2007 239,400 259,100 180,000 226,600 242,600 Est Mkt Value 2008 240,400 259,700 186,800 238,600 255,500 Taxable Value 2004 167,300 162,400 128,600 177,000 190,400 Taxable Value 2005 192,400 186,800 147,900 203,600 219,000 Taxable Value 2006 215,700 214,800 162,700 225,700 249,800 Taxable Value 2007 237,400 247,000 180,000 226,600 242,600 Taxable Value 2008 240,400 259,700 186,800 238,600 255,500 Pro ert Identification Number Year R36 *" "" 41 0042 R36 ** ** 13 0043 R25 ** ** 41 0157 R25 ** ** 22 0047 R25 ""` *" 21 0097 2008 2540.43 2728.34 1857.94 2476.41 2678.19 2007 2,469.54 2,527.40 1,740.81 2,287.90 2,475.75 2006 2,385.91 2,335.86 1,678.97 2,473.29 2,777.15 2005 2,077.05 1,976.80 1,495.10 2,184.83 2,375.53 2004 1,844.02 1,760.98 1,323.95 1,949.37 2,122.33 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 Increase from 2007 to 2008 70.89 200.94 117.13 188.51 202.44 Increase from 2003 to 2008 952.50 1,214.65 729.36 725.14 842.62 (Decrease) Increase from 1998 to 2008 798.37 1,180.65 802.39 656.31 568.04 10 City of Columbia Heights, Minnesota TAX LEVIES PAYABLE 2003 - 2008 Change County City School Other Total In Value 2003 Taxes 0 MARKET VALUE PAYABLE 2004 2004 Taxes 0 MARKET VALUE PAYABLE 2005 2005 Taxes 0 MARKET VALUE PAYABLE 2006 2006 Taxes 0 MARKET VALUE PAYABLE 2007 110,300 2007 Taxes 245 335 310 29 920 MARKET VALUE PAYABLE 2008 114,400 4,100 2008 Taxes 274 371 304 45 994 Amount of Increase 2007/2008 28 35 (6) 16 74 Change County City School Other Total In Value 2003 Taxes 128 160 137 19 444 MARKET VALUE PAYABLE 2004 63,300 2004 Taxes 139 193 152 19 503 MARKET VALUE PAYABLE 2005 74,400 2005 Taxes 151 220 166 20 557 MARKET VALUE PAYABLE 2006 85,600 2006 Taxes 177 251 132 23 583 MARKET VALUE PAYABLE 2007 98,400 2007 Taxes 206 282 270 25 783 MARKET VALUE PAYABLE 2008 188,700 90,300 2008 Taxes 531 720 542 87 1,881 Amount of Increase 2007/2008 326 439 271 62 1,098 Change County City School Other Total In Value 2003 Taxes 236 297 239 37 809 MARKET VALUE PAYABLE 2004 103,700 2004 Taxes 270 375 277 36 958 MARKET VALUE PAYABLE 2005 119,300 2005 Taxes 309 450 306 40 1,105 MARKET VALUE PAYABLE 2006 137,200 2006 Taxes 355 502 255 46 1,158 MARKET VALUE PAYABLE 2007 157,800 2007 Taxes 403 552 475 50 1,480 MARKET VALUE PAYABLE 2008 175,900 18,100 2008 Taxes 487 660 501 80 1,728 Amount of Increase 2007/2008 84 108 26 30 248 Change County City School Other Total In Value 2003 Taxes 362 456 348 55 1,221 MARKET VALUE PAYABLE 2004 139,900 2004 Taxes 405 563 400 55 1,423 MARKET VALUE PAYABLE 2005 160,800 2005 Taxes 457 666 437 59 1,619 MARKET VALUE PAYABLE 2006 182,700 2006 Taxes 512 724 364 66 1,666 MARKET VALUE PAYABLE 2007 192,600 2007 Taxes 519 711 595 64 1,889 MARKET VALUE PAYABLE 2008 194,000 1,400 2008 Taxes 550 745 559 90 1,944 Amount of Increase 2007/2008 31 34 (37) 26 55 Change County City School Other Total In Value 2003 Taxes 601 757 554 92 2,004 MARKET VALUE PAYABLE 2004 208,700 2004 Taxes 661 919 635 89 2,304 MARKET VALUE PAYABLE 2005 240,000 2005 Taxes 739 1,077 687 96 2,599 MARKET VALUE PAYABLE 2006 268,100 2006 Taxes 806 1,141 568 104 2,618 MARKET VALUE PAYABLE 2007 258,400 2007 Taxes 737 1,011 822 91 2,661 MARKET VALUE PAYABLE 2008 296,000 37,600 2008 Taxes 903 1,225 885 149 3,162 Amount of Increase 2007/2008 166 214 63 58 501 11 City of Columbia Heights, Minnesota Tax Levies Payable 2007 - 2008 MAR ET A UE PAYABLE 2007 110,300 MARKET VALUE PAYABLE 2008 114,400 ~- 4,100 Increased Market Value County City School Other Total 2007 Taxes 245 335 310 29 920 2008 Taxes 274 371 304 45 994 Amount of Increase 2007/2008 28 35 6 16 74 2008 Pro ert Taxes based on 2007 value of 110,300 945 What the 2008 increase would have been without an increase in value 25 MAR ET A E PAYABLE 2007 98,400 MARKET VALUE PAYABLE 2008 188,700 90,300 Increased Market Value ounty ity chool they Total 2007 Taxes 206 282 270 25 783 2008 Taxes 531 720 542 87 1,881 Amount of Increase 2007/2008 326 439 271 62 1,098 2008 Pro ert Taxes based on 2007 value of 98,400 802 What the 2008 increase would have been without an increase in value 19 MAR ET ALUE PA AB E 2007 157,800 MARKET VALUE PAYABLE 2008 175,900 18,100 Increased Market Value ounty ity chool ther Tota 2007 Taxes 403 552 475 50 1,480 2008 Taxes 487 660 501 80 1,728 Amount of Increase 2007/2008 84 108 26 30 248 2008 Pro ert Taxes based on 2007 value of 157,800 1,512 What the 2008 increase would have been without an increase in value 32 MARKET VALUE PAYABLE 2007 192,600 MARKET VALUE PAYABLE 2008 194,000 1,400 Increased Market Value County City School Other Total 2007 Taxes 519 711 595 64 1,889 2008 Taxes 550 745 559 90 1,944 Amount of Increase 2007/2008 31 34 37 26 55 2008 Pro ert Taxes based on 2007 value of 192,600 1,927 What the 2008 increase would have been without an increase in value 38 MAR ET AL AYAB E 2007 258,400 MARKET VALUE PAYABLE 2008 296,000 (-~' 37,600 Increased Market Value ounty ity coo ther Total 2007 Taxes 737 1,011 822 91 2,661 2008 Taxes 903 1,225 885 149 3,162 Amount of Increase 2007/2008 166 214 63 58 501 2008 Pro ert Taxes based on 2007 value of 258,400 2,713 What the 2008 increase would have been without an increase in value 52 12 3, 000, 000 2, 500, 000 2, 000, 000 1, 500, 000 1, 000, 000 500, 000 Cumulative LGA Lost ^ Certified LGA ~ Lost LGA n -1,048,796 ~;_ 1,593,522 1,391,851 2,651,999 .n 1,603,203 ~-~ 1,238,594 1,955,299 1,058,477 1,260,148 1,028,487 2003 2003 2004 2005 2006 2007 2008 13 LGA and Tax Levy History 8, 500, 000 7, 500, 000 6, 500, 000 5, 500, 000 4, 500, 000 3, 500, 000 2, 500, 000 1, 500, 000 500, 000 2003 2004 2005 2006 2007 2008 LGA 2,651,999 1,603,203 1,058,477 1,028,487 1,238,594 1,260,148 Tax Levy 4,817,984 5,447,260 6,102,537 6,347,537 6,500,613 6,916,895 Total 7,469,983 7,050,463 7,161,014 7,376,024 7,739,207 8,177,043 14 Total Tax Supported Budgets General Fund, Library Fund, and EDA Fund 10,006,735 10,000,000 g 719,781 9,508,549 q 9,500,000 ' 9,152, 347 8,948,853 9,040,029 9,000,000 8,500,000 8,000,000 7,500,000 7,000,000 6,500,000 6,000,000 5,500,000 2003 2004 2005 2006 2007 2008 15 Cost Savings from 2003 to 2008 Year I General Fund Lib Total tax (Reduction) suppported or increase EDA Levv budgets to budget Bud et Histo Budget Prior to LGA Cuts 2003 8,899,512 679,700 140,569 9,719,781 Adopted Budget reduced from 2003 2004 8,232,617 631,271 84,965 8,948,853 (770,928) Adopted 2005 Budget 2005 8,318,543 636,521 84,965 9,040,029 91,176 Adopted 2006 Budget 2006 8,410,751 656,631 84,965 9,152,347 112,318 Adopted 2007 Budget 2007 8,685,591 682,060 140,898 9,508,549 356,202 Proposed 2008 Budget 2008 9,208,957 719,156 78,622 10,006,735 498,186 Net Budget Reduction Over 6 Years Projected 2008 Budget compared to 2003 Budget 286,954 16 WHAT WILL $60 A MONTH BUY? (Based on 2008 Property Tax) $60 a Month Buys Quality and Quantity in the City of Columbia Heights ~~~ --- ~~ I I l LL'L' ~ ~ ~~ L l'L'L JJ ~` ~' n~j ~~ll J-~, ` L~_~1 I ~___~ ~ ANC. ~, F/ ~j Telephone Dinner for Four I~ Two Twins Tickets Standard Cable TV The average home ($193,100) in Columbia Heights pays $60 per month in city real estate taxes. The average Columbia Heights resident will spend $60 every month on various services and pleasures, such as dinner and pop for four at a local restaurant, standard 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 $60 of your monthly property taxes will buy! 17 RESOLUTION 2007- RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2008, SETTING THE CITY LEVY, AND APPROVING THE HRA LEVY. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA: that the following is hereby adopted by the City of Columbia Heights. Section A. The budget for the City of Columbia Heights for the year 2008 is hereby approved and adopted with appropriations for each of the funds listed below. Expense General Fund 9,202,557 Community Development Fund 597,133 Economic Development Fund 274,863 State Aid 148,949 Cable Television 132,182 Library 738, 346 DARE Project 5,375 Infrastructure 113,792 Capital Improvement 27,345,000 Capital Equipment Replacement Funds 461,815 Construction Funds 1,054,300 Central Garage Fund 579,273 Liquor Operating 7,964,924 Liquor Capital/Non-Operating 319,042 Water Utility Fund 2,209,771 Sewer Utility Fund 1,660,244 Refuse Fund 1,399,336 Storm Sewer Fund 387,556 Data Processing 268,532 Debt Service Fund 2,859,426 Total Expense Including Interfund Transfers 57,722,416 Section B. The estimated gross revenue to fund the expense budget of the City of Columbia Heights for all funds, including general ad valorem tax levies and use of fund balances, as hereinafter set forth for the year 2008: Revenue General Fund 9,202,557 Community Development Fund 597,133 Economic Development Fund 274,863 State Aid 148,949 Cable Television 132,182 Library 738, 346 DARE Project 5,375 Infrastructure 113,792 Capital Improvements 27,345,000 Capital Equipment Replacement Funds 461,815 Construction Funds 1,054,300 Central Garage Fund 579,273 Liquor Operating 7,964,924 Liquor Capital/Non-Operating 319,042 Water Utility Fund 2,209,771 Sewer Utility Fund 1,660,244 Refuse Fund 1,399,336 Storm Sewer Fund 387,556 Data Processing 268,532 Debt Service Fund 2,859,426 Total Revenue Including Interfund $ ransfers 57,722,416 RESOLUTION 2007- RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2008, SETTING THE CITY LEVY, AND APPROVING THE HRA LEVY. Section C. The following sums of money are levied for the current year, collectable in 2008, upon the taxable property in said City of Columbia Heights, for the following purposes: Estimated General Fund Levy 6,305,764 Estimated Library Levy 532,509 Estimated EDA Fund Levy 78,622 Total 6,916,895 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, COUNTY OF ANOKP,, MINNESOTA: That the county auditor is authorized to fix a property tax rate for taxes payable in the year 2008 that is higher than the tax rate calculated for the city for taxes levied in 2006, collectable in 2007. BE IT FURTHER RESOLVED :That the City has adequate fund balances and reserves to pay 2008 Bond principal and interest payments on General Obligation Bond Series 2003A and General Obligation Bond Series 2006A and that the county auditor is authorized to cancel these Bond Levies for taxes payable in 2008. BE IT FURTHER RESOLVED: That the City shall levy a General Obligation Bond Series 2007A in the amount of $128,475.17 and that the county auditor is authorized to collect these Bond Levies for taxes payable in 2008. The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. Approved this -------------------day of ----------------- Offered By: Seconded By: Roll Call: Ayes: Nays: Mayor Gary Peterson Patricia Muscovitz, Deputy City Clerk, CMC 19 City of Columbia Heights Budget Cuts and Add Backs Prepared 11 /08/07 Summary of add backs New Items Ma or/Council -$6,400 Deduction from su lies for 12 new chairs for Council dais Bond revenue $27,000,000 Communit Center Ca ital Buildin $27,000,000 Addition for Public Safet Communit Center Libra $19,190 Addition of Library Clerk - $11,839 Addition of Libra Su ervisor - $7,351 Cleanup Items Li uor $63,141 Store #1 - frin e benefits were not included in the on final bud et Cable $8,849 Special Projects Coordinator position was included in budget but was not allocated to cable - $8849 Refuse & Recycling $37 Correction for the difference between the proposed adopted total and the budgeted transfer out labor amount Bonds and Transfers New Infrastructure bonds for city share of street improvements Revenue from Bond levy $122,357 2008 tax levy to cover bond payment in 2008 of $36,773 and Feb 2009 of $85,584 $122,357 Bond payment in 2008 $36,773. To budget for 2008 bond expense $36,773 New liquor store bonds Liquor store lease payment to the EDA ($17,236). The liquor proposed -$17,236 operating budget for store 1 & 2 has $227,500 budgeted for lease bond payments. The actual expense will be $210,264. This reduces the budgeted amount and sets it up in the non-operating dept. EDA Lease Revenue Bonds $210,264. This establishes the EDA $210,264 budget to pay the liquor bonds from liquor store revenue transferred to the EDA. New TIF bonds for the industrial park development TIF levy revenue to cover 2008 payment of $158,875 and Feb 2009 $244,169 payment of $85,294 EDA TIF Bonds $158,875. This establishes the EDA budget to pay $158,875 the TIF bonds that were sold to finance the first part of the industrial ark housin develo ment Total Ex ense Add Backs $27,473,493 Total Revenue Increases $27,366,526 Net add backs $106,967 20 lice epartment ruth and Taxation entation 007 December 3, 2007 PERS L SERVICES 2004 2005 2006 2007 Proposed 2008 SALARY $1,769,786 $1,769,749 $1,846,702 $2,020,953 $2,076,274 FRINGE $450,282 $450,495 $483,399 $542,142 $570,796 TOTAL $2,220,068 $2,290,256 $2,314,281 $2,563,094 $2,646,548 -4.8% +3% +1% +7.8% +2.1% City of Occurrence New Cases Arrests Search Warrants Andover 9 14 3 Anoka 10 6 1 Bethel 1 1 0 Blaine 36 32 9 Brooklyn Center 3 6 2 Brooklyn Park 21 25 4 Champlin 10 6 2 Circle Pines/Lexington 4 3 1 Columbia Heights 10 6 3 Coon Rapids 31 23 7 Dayton 1 0 1 East Bethel 6 2 1 Fridley 10 9 1 Golden Valley 1 0 0 Ham Lake 8 5 1 Linwood 1 0 0 Maple Grove 1 0 0 Maplewood 18 8 7 Minneapolis 1 0 0 Moundsview 3 4 1 Oak Grove 4 0 0 Osseo 1 0 0 Plymouth 1 1 1 Ramsey 3 5 1 Spring Lake Park 1 0 1 St. Francis 2 2 0 St. PauI/V11est St. Paul 2 2 1 Anoka-Hennepin Narcotics & Violent Crimes Task Force 2007 - 3rd Quarter Statistics Quarter New Cases Arrests Search Warrants 3~d Quarter, 2007 199 160 48 2"d Quarter, 2007 196 247 57 1st Quarter, 2007 270 268 54 4th Quarter, 2006 221 250 58 3~d Quarter, 2006 283 274 53 2"a Quarter, 2006 245 249 50 15t Quarter, 2006 267 292 45 2 Anoka-Hennepin Drug Task Force Activity In Columbia Heghts (2005 vs. 2007) 2005 (CH not in DTF) Jan. -Oct. 2007 (as DTF Member) 2007 Projected CASES 62 50 60 ARRESTS 56 38 46 SEARCH WRTS 6 8 10 SEIZURES: Meth gr. Cocaine gr. Crack gr. Marijuana oz. 86 44 25 18 77 163 113 92 92 195 136 110 BUYS Not available ~, *Meth & Crack 3 Anoka-Hennepin Drug Task Force Drug Seizures/Buys in Columbia Heights (2005-2007) 500 450 400 350 300 250 200 150 100 50 O ~ 2005 D 1st Half, 2006 ~ 2nd Half, 2006 ®2007 ~ Meth (Grams) Cocaine (grams) Crack (grams) Heroin (grams) Marijuana (ounces) 2005 (pre DTF) 86 44 24 0 18 2006, Jan-Jun (pre DTF) 476* 5 62 1 36 2006, July-Dec (in DTF) 53 17 37 8 8 2007, Jan-Oct (in DTF) 77 163 116 0 101 2007 Projected 105 215 150 0 121 *470 grams was from one case where AHDTF did CI buy 8~ follow-up search warrant in Columbia Heights. 4 Meth (gr) Cocaine Crack Heroin Marijuana (gr) (gr) (gr) (oz) GRID 1 1.9 2 2.6 3 3.4 4 2.6 5 0.1 6 2.7 7 3.7 8 17.6 9 1.0 10 7.0 11 3.9 12 2.0 13 2.7 14 6.2 15 1.7 16 3.8 17 3.3 18 2.4 19 20.9 20 10.1 Increase's from 2006 October Monthly Report 5 Supplies oposed 2008 6, 050 .9% 6 Other Services and Charges oposed 2008 20,274 .005% 7 2006 Data Population # of Sworn Officers Arrests # of Part 1 Crimes # of Part 2 Crimes % of Crime Cleared Columbia Heights (HIIItOp) 18,372 792 19,371 25 1.29/1000 (Authorized) 23 1.1911,000 (actual) 1,370 138 1,508 1,108 112 1,220 1,547 159 1,706 46% CH 51% HT Anoka 17,908 27 1.511,000 679 879 1164 29% Crystal 22,020 27 1.22/1,000 817 749 808 40% Hastings 20,480 28 1.40/1,000 615 538 776 47% Hopkins 17,063 25 1.47/1,000 591 504 765 43% New Brighton 21,277 27 1.2811,000 589 587 712 39% New Hope 20,108 27 1.34/1,000 967 909 1,177 42% South St Paul 19,600 26 1.3211,000 817 742 1,300 33% West St Paul 19,303 25 1.2911,000 1,099 1,159 1,177 42% Brooklyn Center 28,025 44 1.5711,000 1,409 2,184 1,842 38% Richfield 34,123 43 1.2611,000 1,464 1,358 1,967 44% White Bear Lake 24,201 25 1.03/1,000 1,116 860 1,502 41% Shoreview 27,159 Contract with Ramsey County 7 2 1 67% THANK YOU