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    2012 Preliminary Budget & Levy Presentation

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    City of Hopkins
    Presentation of the 2012 preliminary City budget and tax levy, made to the Hopkins City Council on September 6.

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    2012 Preliminary Budget & Levy Presentation

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    City of Hopkins
    228 views14 pages
    Presentation of the 2012 preliminary City budget and tax levy, made to the Hopkins City Council on September 6.

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    Presentation of the 2012 preliminary City budget and tax levy, made to the Hopkins City Council on September 6.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    228 views14 pages

    2012 Preliminary Budget & Levy Presentation

    Uploaded by

    City of Hopkins
    Presentation of the 2012 preliminary City budget and tax levy, made to the Hopkins City Council on September 6.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 14

    City of Hopkins

    2012 Preliminary Levy and Budget

    Truth and Taxation Process


    Process changed in 2009 Council adopts a proposed levy. Council sets budget meeting dates to discuss budget and receive public comments Recommended budget meeting dates

    Budget

    Meeting Tuesday, December 6th Budget Approval Tuesday, December 20th

    Legislative changes effecting local governments

    Local Government Aid (LGA)


    $50,000

    earmarked for the Arts Center Unallotted since 2009

    Market Value Homestead Credit (MVHC)


    Unallotted

    for 2009, 2010 & 2011 Program eliminated for 2012

    No levy limits for 2012.


    No

    levy limits in 2005-2008 Levy limits for 2009-2011

    City Planning
    City council and staff have been meeting and discussing options for maintaining a balanced budget in 2012 and beyond. Options include budget cuts, use of reserves, taxes and new revenue sources. The 2012 General Fund budget details will be outlined prior to adoption of the final budget and levy in when we hold our budget meeting in December 2011.

    Why do levies go up?


    Increased spending and/or decreases in non tax revenue sources Spending may increase for several reasons
    Inflationary increases Additional or enhanced programs Infrastructure improvements New debt levies

    Non tax revenue sources may decrease


    Slow economy Reduction in government aids Reduced revenues due to economic Reduced interest earnings

    factors

    How do levies go down?

    The City may reduce its tax levy by decreasing costs or increasing non tax revenue sources.
    To

    decrease costs the city could eliminate programs or services it currently provides to the citizens. The City may also outsource certain city services at a lower cost. The City may cancel or delay capital projects

    Increased revenues are derived primarily from new fees and increased charges for services. The City may receive grants for specific programs.

    What are our tax needs?

    The 2012 preliminary levy


    Levy

    set at $10,348,328 Proposed increase of $209,914 or 2.07% over the 2011 levy.

    The increase is primarily a result of decreases in revenue sources and inflationary increases in expenditures. Expenditures will increase 2.14%

    Tax Levy Options


    The levy set this evening will be the maximum levy for 2012. Levy can be reduced but it cannot be increased. Staff continues to evaluate the budget and the final levy and budget may include additional reductions.

    2012 Proposed General Fund Budget and 2012 Preliminary Levy


    2012 General Fund Budget $10,519,463
    This is a increase over last years budget of 2.14% The increase is due to inflationary increases.

    2012 Levy $10,348,328


    This is an increase over last years levy of $209,914 or 2.07%. Increase is due primarily to loss of revenue

    Budget Challenges
    Change in market value homestead credit program Flat or decreasing property values Decrease in several revenue sources

    police and fire aid court fines

    Decreased interest income

    Budget Impacts
    Reduced spending across all departments Delayed hiring of staff vacancies Reduced capital expenditures Focus on savings and efficiencies

    Development and Taxes

    City property taxes for 2012 are going to be affected by decisions that were made over past years for various development projects that continue to be added to the tax base.
    Recently

    decertified TIF District 2-1 Added over $500,000 to the tax base in 2011

    Additional projects in the planning stages will add to the citys tax base for 2013 and beyond.

    Fiscal Disparities

    Changes in the Fiscal Disparities Program affects the tax rate for Hopkins properties.
    Year Contribution 2012 2011 2010 2009 2008 2007 2006 2005 3,092,328 3,324,078 2,858,921 2,766,202 2,450,063 2,116,466 1,952,996 1,526,509 Distribution 2,650,437 2,645,025 2,913,208 2,840,070 2,405,483 1,997,455 1,836,753 1,673,106 Net Gain/(Loss) (441,891) (679,053) 54,287 73,868 (44,580) (119,011) (116,243) 146,597

    Financial Impacts
    Arts Center debt paid off 8 years early Construction project bids have been very favorable due to low bids New bonds issued have low interest rates Recent bond refundings have saved us over $535,000 in interest expense

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