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Home My WebLink AboutDecember 1, 2008 Truth & TaxationCITY OF COLUMBIA HEIGHTS 1911-t0"' :lvcnuc NI?, Cului~ebia 96ci~ieEs, il!' >5-821-3878 (763)706-3600 TDD (763) 706-3692 l7sitourweGsileat: wnrn•.ci.culruirGrrr-1rri~Orr.c.nraa.c 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 1, 2008 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. ~'tavor Gcv~r 1.. l'rhv'.enr Councilmcm6cn Robert .~I. 117/hum.~~ lirr«'r ;Vrnrrrvi'/u 7'unuucru Ilrrhnr lirrrce l.'eL-euhrr„ CfI1' Nlana~cr I Puller R. !•idr.~'r 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 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 763-706-361 I, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) Call Truth in Taxation Hearing to Order -Roll Call. 2. Pledce of Allegiance 3. Presentation of ?009 Budget and Tax Levy Information a. Walt Fehst, City Manager, will present budget overview information. b. William J. Elrite, Finance Director, will present graphic budget information using Power Point c. Presentation by staff on department needs (10 minutes each) i. Scott Nadeau, Chief of Police d. Walt Fehst, City Manager Budget Presentation Summation e. Public Comments 4. Adjournment of Truth in Taxation Hearing Walter R. Fehst, City Manager C1~ CITY OF COLUMBIA HEIGHTS Truth in Taxation Hearing on the 2009 Proposed Budget and Property Taxes December 1, 2008 City of Columbia Heights Truth in Taxation Hearing on the 2009 Proposed Budget and Property Taxes December 1, 2008 TRUTH IN TAXATION HEARING ON THE 2009 PROPOSED BUDGET AND PROPERTY TAXES Table of Contents 2009 Budget Message ......................................................... 1 2009 All Budgetary Funds Expenditures by Functional Area.......... 2 2009 Revenue by Source ...................................................... 3 2009 General ,Library, and EDA Expenditures by Classification.... 4 2009 Sources of General Fund, Library Fund, and EDA Revenue... 5 General Fund Percent of Fund by Department ............................ 6 History of LGA .................................................................... 7 Property Taxes 2003 to 2009 ................................................. 8 Where Your Property Taxes Go ............................................... 9 Property Tax History from 1998 to 2009 .................................... 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 2009 ................................................... 16 What will $60 a Month Buy? ................................................... 17 Draft Final Resolution ........................................................... 18 Summary of Addbacks ......................................................... 20 CITY OF COLUMBIA HEIGHTS 2009 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 29, 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 2008 the City's LGA increased by $21,554. In 2009 the increase to LGA will be $165,190. City of Columbia Heights, Minnesota History of Local Government Aid Original Aid Certified for Columbia Heights Aid After 2003 Legislative Reductions Total LGA lost in 7 Certified LGA Lost LGA Increased Loss to LGA 2003 2,651,999 0 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 (1,383,415) 210,107 2008 1,260,148 (1,361,861) 21,554 2009 1,425, 338 (1,196, 671) 165,190 (8,904,477) Property 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. 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 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 operating levy increased by $416,282 or 6.40%. In addition to this, the City sold street infrastructure improvement bonds in 2007. The principal and interest levy for these bonds was $128,475, bringing the total levy increase to $544,757 or 8.38%. In 2009 the proposed operating levy increases by $297,222 or 4.30%. In addition to this, the City of Columbia Heights sold bonds for a new public safety building. The bond levies increase the total levy by $359,771 or an addition of 5.03% for a total levy increase of $785,468, or 9.33%. 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 or decrease for the City. As property values fluctuate, some residents could actually see a reduction in property taxes in 2009 while other individual's bills will go up proportionately if their property change was not proportionate to the citywide change in value. The following chart shows the city's property tax levies for the last seven years for the Library, EDA and General Fund and the total decrease or increase in the property tax levy for these years. 1-2 Property Taxes 2003 Adopted 2007 Adopted 2008 Adopted 2009 CM Proposed Council Reductions 2009 Council Proposed Library EDA General Fund 433,585 140,569 4,243,830 519,981 140,898 5,839,734 551,699 78,622 6,286,574 573,215 80,000 6,675,262 114,360 573,215 80,000 6,560,902 Total Levy 4,817,984 6,500,613 6,916,895 7,328,477 7,214,117 Levy Change from Prior Year 153,076 416,282 411,582 297,222 Percentage Increase 2.41% 6.40% 5.95% 4.30% Infrastructure Bond Levy 128,475 581,886 93,640 488,246 Total Levy 7,045,370 7,910,363 7,702,363 Percentage Increase 8.38% 12.28% 9.33% Computation of Property 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 for a $200,000 home in Columbia Heights would be different than the distribution of the tax levy for a $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 8,500,000 7,500,000 6,500,000 4,817,984 5, 500, 000 6,500,6'13 6,102,537 7,328,477 4 500 000 6,9'16,895 f f 5,447,260 6,347,537 3,500,000 2,500,000 2,65'1,999 1 f500fooo 1,603,203 1, 0 58, 477 1, 028, 487 1, 238, 694 1, 260,'148 1, 425, 3 38 500,000 ~ -~ Significant Highlights on Expenditures The following chart shows what the City Council and staff have actually accomplished in maintaining a very conservative budget over the last six 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 $9,535,729 in 2007, which is still $184,000 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 Tax Supported Budgets General Fund, Library Fund and EDA Fund 10,000,000 10,516,565 9,719,781 8,040,029 9,535,729 10,037,416 8,000,000 8,948,853 -9,152,347 6,000,000 4,000,000 2,000,000 0 2003 2004 2005 2006 2007 2008 2009 Conclusion The above narrative should provide an overview of the most salient changes and assumptions included in the budget. The property tax increase for 2009 is the start of the City's financial recovery from the significant losses of state aid that started in 2003. The 2009 levy allows for an increase in some services to residents. I-J All Budgetary Funds Expenditures by Functional Area Administration Recreation 963,071 714,863 ~ I Public Works Solid Waste & Recycling 1,429,098 Public Works Utility Funds 8,117,131 Public Works General Fund 2,264,209 Debt Service 2,111,450 Community Development 992,870 Finance 1,256,801 Fire 1,246,947 General Government 563,927 Library 783,847 Police ~ Liquor 3,426,313 1,387,311 z All Budgetary Funds Revenue by Source Ad ValoremTaxes Sales & Related Charges 7 069,822 5,771,839 Miscellaneous 984,806 HRA & TIFF Levy Fines & Forfeits 1,141,930 150,000 Charges for Services Intergovernmental Licenses & Permits 544,300 Revenue 418,010 2,618,114 General Fund, Library and EDA Expenditures by Classification Contingencies & Other Services & Capital Outlay ,-,.~~,,.~~~„ Charges 1,901,32; Supplies 711,222 Personal Services 7, 821, 090 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% City of Columbia Heights, Minnesota History of Local Government Aid Original Aid Certified for Columbia Heights Aid After 2003 Legislative Reductions Total LGA lost in 7 years Certified LGA Lost LGA Increased Loss to LGA 2003 2,651,999 0 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 (1,383,415) 210,107 2008 1,260,148 (1,361,861) 21,554 2009 1,425,338 (1,196,671) 165,190 (8,904,477) Property Taxes 2003 - 2009 Property Taxes 2003 Adopted 2007 Adopted 2008 Adopted 2009 CM Proposed Council Reductions 2009 Council Proposed Library EDA General Fund 433,585 140,569 4,243,830 519,981 140,898 5,839,734 551,699 78,622 6,286,574 573,215 80,000 6,675,262 114,360 573,215 80,000 6,560,902 Total Levy 4,817,984 6,500,613 6,916,895 7,328,477 7,214,117 Levy Change from Prior Year 153,076 416,282 411,582 297,222 Percentage Increase 2.41% 6.40% 5.95% 4.30% Infrastructure Bond Levy 128,475 581,886 93,640 488,246 Total Levy 7,045,370 7,910,363 7,702,363 Percentage Increase 8.38% 12.28% 9.33% County 32% Where Your Property Taxes Go Payable 2008 Miscellaneous 7% city 44% Where Your Property Taxes Go Payable 2009 Miscellaneous 7% School 17% County 29% City 42% School 22% City of Columbia Heights, Minnesota Property Tax History from 1998 to 2009 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 Est Mkt Value 2009 238,500 247,400 192,300 255,600 273,600 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 Taxable Value 2009 238,500 247,400 192,300 255,600 273,600 Pro ert Identification Number Year R36 ** ** 41 0042 R36 ** *'` 13 0043 R25 "'` '`* 41 0157 R25 ** ** 22 0047 R25 '`* "* 21 0097 2009 2,793.74 2,873.68 2,150.73 2,981.28 3,217.45 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 2008 to 2009 253.31 145.34 292.79 504.87 539.26 Increase from 2003 to 2009 1,205.81 1,359.99 1,022.15 1,230.01 1,381.88 (Decrease) Increase from 1998 to 2009 1, 051.68 1, 325.99 1, 095.18 1,161.18 1,107.30 1U City of Columbia Heights, Minnesota TAX LEVIES PAYABLE 2003 - 2009 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 2008 Taxes 274 371 304 45 994 MARKET VALUE PAYABLE 2009 108,900 (5,500) 2009 Taxes 262 396 352 47 1,056 Amount of Increase 2008/2009 (12) 25 48 2 63 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 2008 Taxes 531 720 542 87 1,881 MARKET VALUE PAYABLE 2009 187,700 (1,000) 2009 Taxes 530 801 664 95 2,090 Amount of Increase 2008/2009 (1) 80 123 8 209 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 2008 Taxes 487 660 501 80 1,728 MARKET VALUE PAYABLE 2009 179,400 3,500 2009 Taxes 502 758 631 90 1,981 Amount of Increase 2008/2009 15 98 131 10 254 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 2008 Taxes 550 745 559 90 1,944 MARKET VALUE PAYABLE 2009 194,100 100 2009 Taxes 552 834 690 99 2,174 Amount of Increase 2008/2009 2 88 131 9 230 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 2008 Taxes 903 1,225 885 149 3,162 MARKET VALUE PAYABLE 2009 266,100 (29,900 2009 Taxes 796 1,204 976 143 3,119 Amount of Increase 2008/2009 107 21 91 (5 43 City of Columbia Heights, Minnesota Market Value Comparison 2008 - 2009 MARKET VALUE PAYABLE 2008 MARKET VALUE PAYABLE 2009 114,400 108,900 (5,500) Decreased Market Value 2008 Taxes County 274 City 371 School 304 Other 45 Total 994 2009 Taxes 262 396 352 47 1,056 Amount of Increase 2008/2009 (12) 25 48 2 63 2009 Propert Taxes based on 2008 value of 114,400 996 What the 2009 increase would have been without a decrease in value 2 MARKET VALUE PAYABLE 2008 MARKET VALUE PAYABLE 2009 188,700 187,700 (1,000) Decreased Market Value 2008 Taxes County 531 City 720 School 542 Other 87 Total 1,881 2009 Taxes 530 801 664 95 2,090 Amount of Increase 2008/2009 (1) 80 123 8 209 2009 Property Taxes based on 2008 value of 188,700 1,884 What the 2009 increase would have been without a decrease in value 3 MARKET VALUE PAYABLE 2008 MARKET VALUE PAYABLE 2009 175,900 179,400 ~~I y 3,500 Increased Market Value 2008 Taxes County 487 City 660 School 501 Other 80 Total 1,728 2009 Taxes 502 758 631 90 1,981 Amount of Increase 2008/2009 15 98 131 10 254 2009 Propert Taxes based on 2008 value of 175,900 1,732 What the 2009 increase would have been without an increase in value 4 MARKET VALUE PAYABLE 2008 MARKET VALUE PAYABLE 2009 194,000 194,100 ~' ~" 100 Increased Market Value 2008 Taxes County 550 City 745 School 559 Other 90 Total 1,944 2009 Taxes 552 834 690 99 2,174 Amount of Increase 2008/2009 2 88 131 9 230 2009 Propert Taxes based on 2008 value of 194,000 1,948 What the 2009 increase would have been without an increase in value 4 MARKET VALUE PAYABLE 2008 MARKET VALUE PAYABLE 2009 296,000 266,100 (29,900) Decreased Market Value 2008 Taxes County 903 City 1,225 School 885 Other 149 Total 3,162 2009 Taxes 796 1,204 976 143 3,119 Amount of Increase 2008/2009 (107) (21) 91 (5) (43) 2009 Property Taxes based on 2008 value of 296,000 3,168 What the 2009 increase would have been without a decrease in value 6 12 Cumulative LGA Lost ^ Certified LGA ~ Lost LGA 3, 000, 000 ------------- _ _ ----- ---__ _..- -- --------- --- ------- - -- --- _- 2,500,000 1,048,796 ~~r 1,413,405 1,226,661 696,700 ~~ 1,623,512 2,000,000 - ~ - - --- ~~_ . -5~= 1,593,522 1,391,851 - 1,500,000 - 2,651,999 1,603,203 1,238,594 _ 1,425,338 1,000,000 1,955,299 - 1,058,477 - 1,260,148 1, 028,487 500,000 2003 2003 2004 2005 2006 2007 2008 2009 13 LGA and Tax Levy History 8,500,000 7,500,000 6, 500, 000 - I 1 4,817,984 5,500,000 6,500,613 6,102,537 7,328,477 4 500 000 6,916,895 > > 5,447,260 6,347,537 3,500,000 2,500,000 2,651,999 1 ,500,000 1,603,203 _ ` - _ - I I - - {_1,058,477 1,028,487 1,238,594 1,260,148 1,425,338 500,000 - 1.1 ~-_~__ -~ __. ._~__~.~__~ ~~.~ -~~__u._ _ __---u . 2003 2004 2005 2006 2007 2008 2009 LGA 2,651,999 1,603,203 1,058,477 1,028,487 1,238,594 1,260,148 1,425,338 Tax Levy 4,817,984 5,447,260 6,102,537 6,347,537 6,500,613 6,916,895 7,328,477 Total 7,40~,~~~ 'T,®~~0,~~~ 1,101,014 7,376,024 7,739,207 8,177,043 8,753,815 14 15 Cost Savin s from 2003 to 2009 Total tax (Reduction) suppported or increase to Year General Fund Librar EDA Lev budgets budget Bud et Histor 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 8,711,736 683,095 140,898 9,535,729 383,382 Adopted 2008 Budget 2008 9,220,448 738,346 78,622 10,037,416 501,687 Proposed 2009 Budget 2009 9,652,718 783,847 80,000 10,516,565 479,149 Net Budget Reduction Over 7 Years Projected 2009 Budget Compared to 2003 Budget 796,784 16 WHAT WILL $60 A MONTH BUY? (Based on 2009 Property Tax) $60 a Month Buys Quality and Quantity in the City of Columbia Heights -y- 'JJ~ LL~\ I I ~~ ~~ L~~ V ~~ _I Telephone Dinner for Four Two Twins Tickets ~~ Il Standard Cable TV Columbia Heights City Services ~- _ ~> =r - ,,. C =E14a's _ - ~. , i a .,u ~ __ o Parks Streets Police Fire Library The average home ($168,800) 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 2008- RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2009, 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 2009 is hereby approved and adopted with appropriations for each of the funds listed below. Expense General Fund 9,793,340 Community Development Fund 625,309 Economic Development Fund 347,561 State Aid 147,896 Cable Television 131,412 Library 783,847 DARE Project 5,700 Infrastructure 279,017 Capital Improvement 595,068 Capital Equipment Replacement Funds 461,613 Construction Funds 1,520,300 Central Garage Fund 1,193,048 Liquor Operating 8,164,211 Liquor Capital/Non-Operating 835,386 Water Utility Fund 2,374,102 Sewer Utility Fund 1,759,396 Refuse Fund 1,429,098 Storm Sewer Fund 421,281 Data Processing 283,985 Debt Service Fund 2,111,450 Total Expense Including Interfund Transfers 33,263,020 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 2009: Revenue General Fund 9,793,340 Community Development Fund 625,309 Economic Development Fund 347,561 State Aid 147,896 Cable Television 131,412 Library 783,847 DARE Project 5,700 Infrastructure 279,017 Capital Improvements 595,068 Capital Equipment Replacement Funds 461,613 Construction Funds 1,520,300 Central Garage Fund 1,193,048 Liquor Operating 8,164,211 Liquor Capital/Non-Operating 835,386 Water Utility Fund 2,374,102 Sewer Utility Fund 1,759,396 Refuse Fund 1,429,098 Storm Sewer Fund 421,281 Data Processing 283,985 Debt Service Fund 2,111,450 Total Revenue Including Intertund Transfers 33,263,020 18 RESOLUTION 2008- RESOLUTION ADOPTING A BUDGET FOR THE YEAR 2009, SETTING THE CITY LEVY, AND APPROVING THE HRA LEVY. Section C. The following sums of money are levied for the current year, collectable in 2009, upon the taxable property in said City of Columbia Heights, for the following purposes: Estimated General Fund Levy 6,560,902 Estimated Library Levy 573,215 Estimated EDA Fund Levy 80,000 Total 7,214,117 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, COUNTY OF ANOKA, MINNESOTA: That the county auditor is authorized to fix a property tax rate for taxes payable in the year 2009 that is higher than the tax rate calculated for the city for taxes levied in 2007, collectable in 2008. BE IT FURTHER RESOLVED :That the City has adequate fund balances and reserves to pay 2009 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 2009. BE IT FURTHER RESOLVED: That the City shall levy for the General Obligation Bond Series 2007A (Infrastructure Fund) in the amount of $130,587.20, and 2008A (Public Safety Building) in the amount of $357,659, and that the county auditor is authorized to collect these Bond Levies for taxes payable in 2009. 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, CMC City Clerk 19 City of Columbia Heights Budget Cuts and Add Backs Prepared 11/3/08 Cit Council reductions to ro osed lev resolution #2008-210 Ado ted 09/08/2008 Resolution Detail General levy 6,675,262 Library 573,215 EDA 80,000 Sub total 7,328,477 Infrastructure Bond 130,587 Public Safety bond 357,659 Murzyn Hall bond 93,640 Total proposed levy City Manager's recommended levy 7,910,363 City Council reduction of $208,000 Maintenance & Utilities on New Gym (64,360) Maintenance & Utilities on New Public Safety Bldg (50,000) Murzyn Hall Improvements Bond (93,640) Adopted Proposed Levy 7,702,363 New Items Adds and (Deducts) Community Development Fund 201 Other Services and Charges - (RIBS Program) Revenue - (RIBS Program) (20,000) (30,000) General Government Buildings Fund 411 Capital Improvements Securit Im rovements - Cit Hall 40,000 Total General Government Buildings 40,000 IS Fund 720 I~Addition of Part-time Intern 13,634 Community Center Capital Building Fund 418 Appropriate funds for maintenance and utility expense for new: Gymnasium Building 75,000 Public Safety Building 50,000 Transfer to Debt Service Fund for Hone ell Im rovements to Murz n Hall 93,640 Total Community Center Capital 218,640 Recognition/Special Events Fund 101 Increased a er, osta e and fuel costs for Cit newsletter 6,967 Total Recognition/Special Events 6,967 Police Fund 101 27th Officer Crime Prevention S ecialist 70,000 63,655 Total Police 133,655 2a