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HomeMy WebLinkAboutWK - September 15, 20201685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, September 15, 2020 City Campus/Council Chambers 1. Call to Order — 6:00 p.m. 2. Discuss 2021 Budget Development - Administration 3. Preview 2021 Proposed Properly Tax Levy - Administration 4. Other Business 5. Adjournment Some or all members of the Andover City Council may participate in the September 15, 2020 Special City Council meeting by telephone or video conference rather than by being personally present at the City Council's regular meeting place at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MN 55304. Members of the public can physically attend, although there is very limited seating in the City Council Chambers as appropriate social distancing will be done by the Council and visitors. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2021 Budget Development Discussion DATE: September 15, 2020 INTRODUCTION City Administration continues to work on the 2021 Annual Operating Budget Development process and is looking to update the City Council and seek direction as the preparation of the 2021 Annual Operating Budget proceeds. Also, each year the City Council is required by state law to prepare and submit a preliminary property tax levy certification to Anoka County Property Records and Taxation Division by September 30'h. The property tax component is a significant portion of the operating budget and that number will be discussed in detail with the "Preview 2021 Preliminary Tax Levy" workshop agenda item. City Administration will review with the Council the bold italics items in this staff report at the meeting. The following are the 2021 Budget Development guidelines adopted at the April 7th City Council meeting: 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness using sustainable revenue sources and operational efficiencies. Note: Preliminary Anoka County Assessor estimated taxable market value figures for the City ofAndover are reflecting only a close to a 1.39% increase in total taxable market value. (See attached Pay 2021 Valuation Estimates). 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2021 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management & information technology) through targeting revenue enhancements or expenditure limitations in the 2020 adopted General Fund budget. Note: With propertV tax revenues making up close to 80% of the total General Fund revenues cash flow designations approaching 50% are appropriate and recommended by the Citv's auditor. The 2020 budget development exceeded this guideline for cash flow, also Emergency Fund Balances (approximately 3% of planned General Fund expenditures per Tnance policy) are in place to stabilize a situation, not be a complete solution. Staff will review with the Council the attached 2020 General Fund Fund Balance Analysis at the meeting: each identifying impacts based on what maybe selected by the Council for the 2021 Preliminary Tax Levy and the corresponding impact to the General Fund budget. 3) A commitment to limit the 2021 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The adopted 2020 debt levy was 21.33% of the gross tax levy, the 25% guideline for 2021 provides reasonable margin to accommodate additional long-term debt if necessary. The current proposed 2021 debt levy is still anticipated to be approximately 21 % of the gross tax levy). 4) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced based on a cost benefit analysis rather than a year -based replacement schedule. Note: The City Vehicle Purchasing Committee has performed this analysis and has made recommendations on equipment needs to the City Council as part of the 2021-2025 Capital Improvement Plan (CIP) developmentprocess. This will be covered in more detail with 2021- 2025 CIP development discussions, next discussion will be on September 22nd. An October 20 Public Hearing is planned for the proposed 2021-2025 CIP. 5) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. Note: City Finance Staff continually maintain various financial models to determine the long-term impacts of present-day expenditures and financing decisions. Fiscal assumptions are based upon a set of financial data including growth factors, tax capacity valuations, per capita spending, fund balance reserve, and debt ratios. Administration did review with the Council the Long -Range Debt Service & General Fund Impact model at the August 251h workshop meeting. 6) Continued commitment to strategic planning targeted toward meeting immediate and long- term operational, staffing, infrastructure, and facility needs. Note: The most recent Council Community Vision and Organizational Goals and Values document was adopted by the City Council on December 3, 2019. Administration will assure that direction provided in that document is integrated into department work plans and budgets. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns, and demands, and to do so in a cost-effective manner. Note: Special attention is given to fiscal values, commercial & residential development or redevelopment, collaboration opportunities, service delivery, livability, and image of the community. Most recently financial decisions have been impacted by the COVID-19 pandemic response and local economy. Staffing: New for the 2020 budget: The City Council approved the Community Center request for an Assistant Manager to assist with facility and recreational management as part of the current Community Center expansion project; the timing of the hire is dependent on the construction schedule and the funding for the position is contained in the Community Center Special Revenue Fund. The hire will likely happen early 2021. New StafRnz Requests for the 2021 budget: Administration has received new staffing requests from the Engineering and Fire Departments for the 2021 budget. Engineering Request: Administration has received a new full-time staffing requests from the Engineering Department for consideration in the 2021 budget. The Engineering Department request is for a Geographic Information System (GIS) specialist position to focus on mapping solutions. The function is currently being done via a shared vendor contract with three other Anoka County Cities. This position would have limited impact on the General Fund as the GIS function is primarily funded by the utility funds and development fees. Administration is recommending approval of this position, to be accompanied by a significant reduction in the shared vendor contract commitment. This recommendation is based on the increasing volume of mapping data the City currently maintains and needs to adequately track and maintain City infrastructure. The hire if approved is proposed to happen mid -2021. Fire Department Request: New staffing requests for the Fire Department contain position modifications to address current needs, re-establish the Deputy Fire Chief position, while providing for an appropriate station/command structure. These positions have direct impact to the General Fund, other grant funding sources are being evaluated as well as a reallocation of existing budget dollars. Administration is recommending partial approval of this request at this time, the recent COVID Pandemic response has shown the need for expanding the part-time (75%) Fire Technician position to fulltime through a reallocation of budget (this position update if approved would be implemented late 2020). Administration is still evaluating the other requests, looking/applying for potential grant funding, and determining what other options may be available. There are some anticipated retirements and staff vacancies within the next few years; in response Administration/Human Resources will continue to focus on succession planning, utilization of internship opportunities, continued cross -training of staff, and/or possible realignment of resources. Personnel Related Implications: To date the following are the other projected issues facing personnel related expenses: 1. Human Resources will review all position -based salaries and the associated benefit package to determine if the total package is competitive with other government entities. Administration will discuss the results in more detail at the meeting. Pay steps for eligible employees will be included in a 2021 budget proposal. A cost of living adjustment (COLA) for non -bargaining employees will be evaluated with market comparable data, a placeholder is contained in the 2021 budget proposal numbers. Each 1% contemplated for the non -bargaining employees impacts the General Fund approximately $32,500. The current Public Works Union contract expires December 31, 2021 and the negotiated wage (3%) for 2021 is included in the 2021 budget proposal numbers. 2. A midyear review of the employee health plan for the 2021 Budget was conducted with our broker on July 21st. Our group continued to experience some high claims over this Past year and the broker is predicting a significant increase in a renewal rate. Administration has authorized our broker to do a full marketing of our group to other currently carrying a place holder for a 15% increase in the rates, each 5% reduction could save the General Fund $28,000. History: Recapping the 2020 budget regarding the employee health plan, the City decided to stay with the Health Partners Open Access program. The existing two HSA plans at that time with varying deductibles were eliminated and only one HSA plan with higher deductibles ($6,900 single and $13,800 family) and stacked with an HRA (Health Reimbursement Arrangement) were offered for 2020. The HRA was funded utilizing premium savings that were achieved from the proposed renewal (29%) to a new higher deductible plan (with a 7.2% increase). Employees have $3,500 single and $7,000 family deductibles; but with the stacked HRA, the City will reimburse the remainder of the deductible, if needed, to the provider up to $3,400 for single and $6,800 for family. The plan offered is accompanied with a health spending account (HSA), originally implemented in 2006. The City does contribute annually to an employee's HSA to assist with the high deductible out of pocket costs. That contribution is evaluated annually as part of the marketing of the health insurance plans. Contractual Departments: 1. The City Attorney 2020 contract reflected a 2% increase over the 2019 contract. There have been limited discussions to date for 2021, but a status quo contact is anticipated with a 2% rate increase. 2. Administration had renewal discussions with the Anoka County Sherifffor a 2021 status quo contract. The Anoka County Sheriff's Office was before the City Council to formallv proposal was approved at that meeting. The contract renewal reflects a 1.28% increase ($41.528) in total contract cost. The 2021 City of Andover Law Enforcement expenditure budget is $3,287,046 which is offset by a Police State Aid revenue budget of $137,280 and School Liaison revenue budget of $102,331 reflecting a net tax levy impact of $3,047,435. The 2021 Sheriff s contract provides for: a. 80 hours per day of patrol service b. 6 hours per day of service provided by a Community Service Officer c. School Liaison Officers in the middle school and high school d. 2 Patrol Investigators e. 50% of the Crime Watch Program's coordinator position. Per contract, the Sheriff always provides the required number of deputies for all hours contracted by the City. If the Sheriff's Office has a deputy vacancy or a deputy is injured etc., they still provide the City with a deputy at straight time even though they may have to fill those hours with overtime which at times may cost the Sheriff s Department additional but is not billable per the contract. 3. Recycling: With the relocation of the Recycling Center a few years ago, the City has seen a significant increase in the use of the facility reflecting additional contractual disposal/recycling costs. The requested 2021 budget currently reflects predicted expenses to which the City is seeking additional recycling grants funds from the County to offset the increased expenses. Council Memberships and Donations/Contributions: The following memberships/contributions are currently included in the 2021 Budget: ■ North Metro Mayors Association $15,150 (GF) • Metro Cities $ 9,542 (GF) ■ Mediation Services $ 3,366 (GF) ■ YMCA — Water Safety Program $ 9,000 (GF) ■ Alexandra House $20,928 ($15,328 GF & $5,600 CG) ■ Youth First (Program Funding) $14,000 ($12,000 GF & $2,000 CG) ■ NW Anoka Co. Community Consortium - JPA $10,000 (GF) ■ Teen Center Funding (YMCA) $24,500 ($8,100 GF & $16,400 CG) • Family of Promise $ 3,000 (CG) ■ Lee Carlson Central Center for Family Resources $ 1,500 (GF) • Senior High Parties $ 1,000 (CG) • Stepping Stone $ 1,000 (CG) ■ Hope for Youth $ 1,000 (CG) Some are funded via the General Fund (GF), and those that qualify for charitable gambling funding are done through the Charitable Gambling (CG) Special Revenue Fund. Council direction will be sought on the memberships/contributions for 2021. Capital Projects Levy: Capital Projects Levy — The 2020 Capital Projects Levy Budget specifically designates $2,036,509 of the general tax levy to capital projects and equipment needs relating to Capital Project Outlay ($275,000), Road and Bridge ($1,287,469), Pedestrian Trail Maintenance ($104,040), Park Projects ($15,000) and Facility Maintenance Reserve ($355,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is evaluated annually and along with Capital Outlay, Pedestrian Trail Maintenance, Parks Projects, and Facility Maintenance levies increased/decreased according to the City Council budget guidelines. • Road and Bridge An adjustment was made to the Road & Bridge funding formula in 2014, primarily to stop the continual decrease in the levy that has been happening over the past few years due to decreases in the Anoka County Assessor taxable market value figures for the City of Andover. Based on Council discussion, consensus was to stop the decline in road funding and evaluate annually through the adopted City Council Budget Development Guidelines. It should be noted that in 2014, Local Government Aid (LGA) in the amount of $74,655 was used to help fund the Road & Bridge Fund. That State of Minnesota funding has largely gone away, down to $0.00 in 2017, 2018 and 2019. Future increases in LGA or even the presence of LGA for the City of Andover based on the current State formula are remote. The 2019 City of Andover Road & Bridge levy was $1,254,788, a 7.34% increase over 2018. The 2020 budget contained a 2.60% increase ($32,681) to $1,287,469. Administration is proposing an increase again for 2021, current estimated market value growth yields a 4.27% increase ($54,967). • Pedestrian Trail Maintenance The 2019 City of Andover Pedestrian Trail Maintenance levy was $102,000, a 2.00% increase over 2018. The 2020 budget included a 2% increase ($2,040) to $104,040. Administration is proposing a 2% increase ($2,081) for 2021. • Park Improvements This levy is an annual appropriation to be used to underwrite park improvement projects as recommended by the Park and Recreation Commission and approved by the City Council. This funding is intended to be a supplemental source of capital funding for park projects that is separately identified in the City's Five -Year Capital Improvement Plan. The 2015 levy was $61,500, but only $15,000 was levied for 2016. $46,500 of the previous levy was re -assigned to the General Fund to focus on Park's maintenance/replacement items. In addition to the re -assigned funds an additional $43,500 of General Fund levy was assigned to Parks Repair/Replacement items for a total levy of $90,000 in 2016, and that continued for 2017. The 2018 General Fund levy assigned to Parks Repair/Replacement items levy was increased to $100,000 and continued at that level for 2019 and 2020; the Parks Project levy continues to remain at $15,000. Administration is not recommending there be any adjustment to these levies for the 2021 budget4evy. • Equipment/Projects Under the Capital Projects Levy, a levy is proposed to be designated to Capital Equipment/Project expenditures identified through the CIP process. Through this designation, the City, over time, will build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending environment. The 2020 levy was $275,000 and Administration will be recommending a $25,000 decrease to offset the increased levy for the 2020A G.O. Equipment Certificates sold on March 19, 2020. Administration is proposing a $250,000 Capital Project/Equipment levy for the 2021 budget. • Capital Equipment/Projects This was a reassigned levy in 2017 to provide for the 2017 equipment purchases. Administration/Finance proposed a straight $500,000 Capital Equipment Purchases Levy for the 2017 equipment purchases rather than through debt service levy and an equipment bond. This process continued through 2018 but increased the levy by $25,000 to $525,000. In 2019, this levy is turned back to debt service levy for the City Campus Master Plan implementation. Administration is not recommendinz a Capital Eguipment/Proiect levy for 2021; equipment purchases for 2020 were funded throuzh the 2020A G.O. Equipment Certificates. 0 Facility Maintenance This was a new $50,000 levy proposed for 2018. A facility condition assessment study identified many maintenance repairs for City facilities such as roof repairs, HVAC, electrical panels, fire alarm systems, windows, and air quality related items (the comprehensive listing which is proactive and reactive was shared with the Council at the August 25V" workshop meeting). This levy was increased to $355,000 for the 2019 budget to help address the significant deferred maintenance items that have been identified. Most recently for the Public Works and Community Center buildings expansion projects within the City Campus Master Plan materialized. The $355,000 levy is anticipated to continue to address additional facility repairs. Administration is not recommending any adjustment to Facility Maintenance levy. $355,000 is again proposedfor the 2021 levy. Debt Service Levy: Annually the Finance Department conducts a detailed debt service analysis to monitor outstanding debt and to look for early debt retirement or refinancing opportunities that will yield interest expense savings to the City. (Staffalong with Ehlers & Associates has complete reviews to see if any refinancing opportunities are available at this time, there are none; we will continue to monitor refunding opportunities, as markets can move quickly, and calculate potential savings for each issue that may meet parameters which may generate savings.) The proposed 2021 Debt Service levy is as follows: • 2010A G.O. Open Space Referendum $ 184,078 (The last year is 202 1) • 2012C Taxable G.O. Abatement Bonds $ 973,263 (The last year is 203 1) • 2018A Capital Improvement Plan Bonds $ 456,344 (The last year is 2043) 2019A GO Abatement Bonds $ 976,966 (The last year is 2039) • 2020A GO Equipment Certificates $ 406,224 (The last year is 2023) • 2021 GO Equipment Certificates $ 170,000 (The last year is 2025) Total $3,166,875 Staff will review the total Debt Service Levy with the Council at the meeting. ACTION REQUESTED The Council is requested to receive a presentation and provide direction to staff. submitted, Andover Valuation Totals Captured Tax Increment CITY OF ANDOVER Pay 2021 Valuation Estimates (94,415) (101,030) (114,064) (119,973) Fiscal Disparity Contribution (1,184,724) (1,269,524) (1,310,143) (1,348,420) Local Tax Rate Value 30,007,904 31,604,711 34,675,332 35,828,582 Fiscal Disparity Distribution 4,807,372 4,966,404 5,355,244 5,475,223 Total Adjusted Values ESTIMATE 36,571,115 Pay 2018 $ 41,303,805 Pay 2019 32,975,265 5.40% Pay 2020 9.46% Pay 2021 Pay 2020 Taxable Tax Taxable Tax Taxable Tax Taxable Tax Market Capacity Market Capacity Market Capacity Market Capacity Value Value Value Value Value Value Value Value $ 2,959,411,470 $ 31,287,043 $ 3,127,397,979 $ 32,975,265 $ 3,561,318,700 $ 36,099,539 $ 3,610,928,500 $ 37,296,975 (94,415) (101,030) (114,064) (119,973) Fiscal Disparity Contribution (1,184,724) (1,269,524) (1,310,143) (1,348,420) Local Tax Rate Value 30,007,904 31,604,711 34,675,332 35,828,582 Fiscal Disparity Distribution 4,807,372 4,966,404 5,355,244 5,475,223 Total Adjusted Values $ 34,815,276 $ 36,571,115 $ 40,030,576 $ 41,303,805 $ 32,975,265 5.40% 5.04% 9.46% 3.18% Taxable Market Value % Change Tax Capacity Value % Change Pay 2018 $ 2,959,411,470 Pay 2018 $ 31,287,043 Pay 2019 $ 3,127,397,979 5.68% Pay 2019 $ 32,975,265 5.40% Pay 2020 $ 3,561,318,700 13.87% Pay 2020 $ 36,099,539 9.47% Pay 2021 $ 3,610,928,500 1.39% Pay 2021 $ 37,296,975 3.32% Taxable Market Values $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $0 Pay 2018 Pay 2019 Pay 2020 Pay 2021 Tax Capacity Values $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Pay 2018 Pay 2019 Pay 2020 Pay 2021 City of Andover General Fund 2020 Fund Balance Analysis 9/11/2020 Actual December 31, 2019 $ 9,363,451 2020 Estimated Fund Balance Increase (Decrease) (1,292,482) Projected December 31, 2020 8,070,969 Less: Snow Emergency (90,000) Public Safety (90,000) Facility Management (90,000) Information Technology (90,000) 2021 Budgeted Use of Fund Balance (335,374)✓ Economic Development (300,000) Fiscal Disparities Flunctuation (300,000) Prepaids ! Inventories (122,993) Working Cash Flow (6,286,703) Estimated Balance Available for Adjustments $ 365,899 2020 Working Cash Flow Designation Calculation: 2021 Requested Expenditure - Preliminary Estimate $12,573,406 % of 2021 General Fund Expenditures 50.000% $ 6,286,703 CITY OF ANDOVER General Fund Revenue & Expense Summary EXPENDITURES Actual Actual Actual Actual Actual Budget Estimate Requested' Budget Change (') General Government 2015 2016 2017 2018 2019 2020 2020 2021 $ % REVENUES 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 2.01% Property Taxes $ 7,634,715 $ 8,217,768 $ 8,332,634 $ 8,634,130 $ 8,864,720 $ 9,392,032 $ 9,392,032 $ 9,759,793 367,761 3.92% License and Permits 452,616 625,906 546,378 562,525 855,831 410,900 595,483 436,450 25,550 6.22% Intergovernmental Revenues 749,570 733,953 793,932 829,861 822,129 780,806 781,394 813,298 32,492 4.16% Charges for Current Services 804,684 912,220 843,022 888,944 1,133,160 736,210 816,781 752,360 16,150 2.19% Fines and Forfeits 99,304 88,600 75,287 73,719 62,349 75,250 55,250 50,250 (25,000) -33,22% Interest Income 63,709 68,380 64,751 107,560 208,957 75,000 75,000 75,000 0 0.00% Miscellaneous Revenue 154,239 194,812 178,616 176,662 192,058 133,850 145,736 138,850 5,000 3.74% Transfers 196,930 196,930 196,930 178,558 188,008 190,688 190,688 212,031 21,343 11.19% TOTAL REVENUES 10,155 767 11,038,569 11,031,550 11,451,959 12,327,212 11,794,736 12,052,364 12,238,032 443,296 3.68% EXPENDITURES General Government 2,511,970 2,592,649 2,642,223 2,748,464 2,843,957 3,267,676 3,288,676 3,371,797 104,121 3.19% Public Safety 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 2.01% Public Works 2,817,981 2,966,674 2,854,540 3,158,490 3,148,743 3,502,808 3,671,808 3,710,025 207,217 5.92% Other 256,720 283,077 764,875 241,940 15,001 95,928 1,095,928 95,928 0 0.00% TOTAL EXPENDITURES 10,090,003 10,509,726 11,039,974 11,105,246 11,099,494 12,155,896 13,344.B46 12,573,406 417,510 3.43% 9/11/2020 City of Andover General Fund 2020 Fund Balance Analysis 9/11/2020 Actual December 31, 2019 $ 9,363,451 2020 Estimated Fund Balance Increase (Decrease) (1,292,482) Projected December 31, 2020 8,070,969 Less: Snow Emergency (90,000) Public Safety (90,000) Facility Management (90,000) Information Technology (90,000) 2021 Budgeted Use of Fund Balance (500,674) ✓ Economic Development (300,000) Fiscal Disparities Flunctuation (300,000) Prepaids / Inventories (122,993) Working Cash Flow (6,286,703) Estimated Balance Available for Adjustments $ 200,599 2020 Working Cash Flow Designation Calculation: 2021 Requested Expenditure - Preliminary Estimate $12,573,406 % of 2021 General Fund Expenditures 50.000% $ 6,286,703 CITY OF ANDOVER General Fund Revenue & Expense Summary EXPENDITURES Actual Actual Actual Actual Actual Budget • Estimate Requested Budget Change (') General Government 2015 2016 2017 2018 2019 2020 2020 2021 $ 3.19% REVENUES 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 2.01% Property Taxes $ 7,634,715 $ 8,217,768 $ 8,332,634 $ 8,634,130 $ 8,864,720 $ 9,392,032 $ 9,392,032 $ 9,594,493 202,461 2.16% License and Permits 452,616 625,906 546,378 562,525 855,831 410,900 595,483 436,450 25,550 6.22% Intergovernmental Revenues 749,570 733,953 793,932 829,861 822,129 780,806 781,394 813,298 32,492 4.16% Charges for Current Services 804,684 912,220 843,022 888,944 1,133,160 736,210 816,781 752,360 16,150 2.19% Fines and Forfeits 99,304 88,600 75,287 73,719 62,349 75,250 55,250 50,250 (25,000) -33.22% Interest Income 63,709 68,380 64,751 107,560 208,957 75,000 75,000 75,000 0 0.00% Miscellaneous Revenue 154,239 194,812 178,616 176,662 192,058 133,850 145,736 138,850 5,000 3.74% Transfers 196,930 196,930 196,930 178,558 188,008 190,688 190,688 212,031 21,343 11.19% TOTAL REVENUES 10,155 767 11,038 569 11,031,550 11,451,959 12,327,212 11,794,736 12,052,364 12,072,732 277,996 2.31 EXPENDITURES General Government 2,511,970 2,592,649 2,642,223 2,748,464 2,843,957 3,267,676 3,288,676 3,371,797 104,121 3.19% Public Safety 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 2.01% Public Works 2,817,981 2,966,674 2,854,540 3,158,490 3,148,743 3,502,808 3,671,808 3,710,025 207,217 5.92% Other 256,720 283,077 764,875 241,940 15,001 95,928 1,095,928 95,928 0 0.00% TOTAL EXPENDITURES 10,090,003 10,509,726 11,039,974 11,105,246 11,099,494 12,155,896 13,344,846 12,573,406 417,510 3.43% UNDER OVER BUDGET $ 65,764 $ 528,843 $ (8,424) $ 346,713 $ 1,227,718 $ (361,160) $ (1,292,482) $ 500,674 $ 139 514 9/11/2020 City of Andover General Fund 2020 Fund Balance Analysis 3 9/11 /2020 Actual December 31, 2019 $ 9,363,451 2020 Estimated Fund Balance Increase (Decrease) (1,292,482) Projected December 31, 2020 8,070,969 Less: Snow Emergency (90,000) Public Safety (90,000) Facility Management (90,000) Information Technology (90,000) 2021 Budgeted Use of Fund Balance (435,374) Economic Development (300,000) Fiscal Disparities Flunctuation (300,000) Prepaids / Inventories (122,993) Working Cash Flow (6,286,703) Estimated Balance Available for Adjustments $ 265,899 2020 Working Cash Flow Designation Calculation: 2021 Requested Expenditure - Preliminary Estimate $12,573,406 % of 2021 General Fund Expenditures 50.000% $ 6,286,703 CIN OF ANDOVER General Fund Revenue 8 Expense Summary EXPENDITURES Actual Actual Actual Actual Actual Budget Estimate Requested • Budget Change (') General Government 2015 2016 2017 2018 2019 2020 2020 2021 $ % REVENUES 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 2.01% Property Taxes $ 7,634,715 $ 8,217,768 $ 8,332,634 $ 8,634,130 $ 8,864,720 $ 9,392,032 $ 9,392,032 $ 9,659,793 267,761 2.85% License and Permits 452,616 625,906 546,378 562,525 855,831 410,900 595,483 436,450 25,550 6.22°A Intergovernmental Revenues 749,570 733,953 793,932 829,861 822,129 780,806 781,394 813,298 32,492 4.16% Charges for Current Services 804,684 912,220 843,022 888,944 1,133,160 736,210 816,781 752,360 16,150 2.19% Fines and Forfeits 99,304 88,600 75,287 73,719 62,349 75,250 55,250 50,250 (25,000) -33.22% Interest Income 63,709 68,380 64,751 107,560 208,957 75,000 75,000 75,000 0 0.00% Miscellaneous Revenue 154,239 194,812 178,616 176,662 192,058 133,850 145,736 138,850 5,000 3.74% Transfers 196,930 196,930 196,930 178,558 188,008 190.688 190,688 212,031 21,343 11.19% TOTAL REVENUES 10 155,767 11,038,569 11,031,550 11,451,959 12327 212 11,794,736 12,052,364 12,138 032 343,296 2.85% EXPENDITURES General Government 2,511,970 2,592,649 2,642,223 2,748,464 2,843,957 3,267,676 3,288,676 3,371,797 104,121 3.19% Public Safety 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 2.01% Public Works 2,817,981 2,966,674 2,854,540 3,158,490 3,148,743 3,502,808 3,671,808 3,710,025 207,217 5.92% Other 256,720 283,077 764,875 241,940 15,001 95,928 1,095,928 95,928 0 0.00% TOTAL EXPENDITURES 10,090,003 10,509,726 11,039,974 11,105,246 11 099 494 12,155,896 13,344,846 12,573,406 417,510 3.43% UNDER OVER BUDGET $ 65,764 $ 528,843 $ (8,424) $ 346,713 $ 1,227,718 $ (361,160) $ (1,292,482) $ 435,374 $ 4 214 9/11/2020 City of Andover General Fund 2020 Fund Balance Analysis on N 9/1112020 Actual December 31, 2019 $ 9,363,451 2020 Estimated Fund Balance Increase (Decrease) (1,292,482) Projected December 31, 2020 8,070,969 Less: Snow Emergency (90,000) Public Safety (90,000) Facility Management (90,000) Information Technology (90,000) 2021 Budgeted Use of Fund Balance (678,374) Economic Development (300,000) Fiscal Disparities Flunctuation (300,000) Prepaids / Inventories (122,993) Working Cash Flow (6,286,703) Estimated Balance Available for Adjustments $ 22,899 2020 Working Cash Flow Designation Calculation: 2021 Requested Expenditure - Preliminary Estimate $12,573,406 % of 2021 General Fund Expenditures 50.000% $ 6,286,703 CITY OF ANDOVER General Fund Revenue & Expense Summary EXPENDITURES Actual Actual Actual Actual Actual Budget Estimate Requested' Budget Change (') General Government 2016 2016 2017 2018 2019 2020 2020 2021 $ % REVENUES 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 201% Property Taxes $ 7,634,715 $ 8,217,768 $ 8,332,634 $ 8,634,130 $ 8,864,720 $ 9,392,032 $ 9,392,032 $ 9,416,793 24,761 0.26% License and Permits 452,616 625,906 546,378 562,525 855,831 410,900 595,483 436,450 25,550 6.22% Intergovernmental Revenues 749,570 733,953 793,932 829,861 822,129 780,806 781,394 813,298 32,492 4.16% Charges for Current Services 804,684 912,220 843,022 888,944 1,133,160 736,210 816,781 752,360 16,150 2.19% Fines and Forfeits 99,304 88,600 75,287 73,719 62,349 75,250 55,250 50,250 (25,000) -33.22% Interest Income 63,709 68,380 64,751 107,560 208,957 75,000 75,000 75,000 0 0.00% Miscellaneous Revenue 154,239 194,812 178,616 176,662 192,058 133,850 145,736 138,850 5,000 3.74% Transfers 196,930 196,930 196,930 178,558 188,008 190,688 190,688 212,031 21,343 11.19% TOTAL REVENUES 10,155,767 11,038,569 11,031 550 11,451,959 12,327 212 11 794,736 12,052,364 11,895,032 100,296 0.83% EXPENDITURES General Government 2,511,970 2,592,649 2,642,223 2,748,464 2,843,957 3,267,676 3,288,676 3,371,797 104,121 3.19% Public Safety 4,503,332 4,667,326 4,778,336 4,956,352 5,091,793 5,289,484 5,288,434 5,395,656 106,172 201% Public Works 2,817,981 2,966,674 2,854,540 3,158,490 3,148,743 3,502,808 3,671,808 3,710,025 207,217 5.92% Other 256,720 283.077 764,875 241,940 15,001 95,928 1,095,928 95.928 0 0.00% TOTAL EXPENDITURES 10,090,003 10,509,726 11,039,974 11,105,246 11,099,494 12,155,896 13,344,846 12,573,406 4`17,510 3.43% UNDER(OVER)BUDGET $ 65,764 $ 528,843 $ (8,424) $ 346,713 $ 1,227,718 $ (361,160) $ (1,292,482) $ (678,374)$ 317 214 9/11/2020 Y 0JF ���]'� O / E 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Councilmembers Jim Dickinson, City Administrator Preview 2021 Preliminary Tax Levy September 15, 2020 0 INTRODUCTION Each year the City Council is required by state law to approve a preliminary budget and submit a preliminary levy certification to Anoka County Property Records and Taxation Division. Legislation requires the certification to take place by September 30th. The last regular City Council meeting to adopt the 2021 Preliminary Levy is September 151. The certification will be the outcome of the numerous budget workshops held with the Council over the summer with the last workshop discussion to be held on September 15' from 6:00 PM to 7:00 PM. The final discussions will be summarized and presented at the regular September 15`h City Council meeting. DISCUSSION At the August 25th Council workshop there were some outstanding items the Council wanted follow-up information on before setting the 2021 Preliminary Lew This memo and attachments present various meeting later in the evening_ All calculations now have the most recent taxable market value estimates from Anoka Counv along with the recently released fiscal disparities valuations and predicted distribution to the City of Andover. Also each option below continues to focus on supporting city operations providing for road improvements and needed infrastructure. Lastly each $100,000 of levy will impact a $250,000 home annually about $7.50. Option I: Original City Staff Proposal The Preliminary 2021 Budget proposes a total property tax levy of $15,112,245: $9,681,793 (64.07%) operational levy, $3,166,875 (20.96%) debt service levy, and $2,263,577 (14.97%) capital/watershed levy. The 2021 Proposed Property Tax Levy is estimated to increase the current City tax rate by 1.30%. That rate will be applied to the City's growing tax base and will reflect a 4.37% increase in the gross tax levy. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2020. Option 2: Constant Tax Rate Proposal The Preliminary 2021 Budget proposes a total property tax levy of $14,946,945: $9,516,493 (63.67%) operational levy, $3,166,875 (21.19%) debt service levy, and $2,263,577 (15.15%) capital/watershed levy. The 2021 Proposed Property Tax Levy is estimated to increase the current City tax rate by 0.00%. That rate will be applied to the City's growing tax base and will reflect a 3.23% increase in the gross tax levy. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2020. Oration 3: Orieinal Staff Proposal minus $100,000 The Preliminary 2021 Budget proposes a total property tax levy of $15,012,245: $9,581,793 (63.82%) operational levy, $3,166,875 (21.10%) debt service levy, and $2,263,577 (15.08%) capital/watershed levy. The 2021 Proposed Property Tax Levy is estimated to increase the current City tax rate by 0.51%. That rate will be applied to the City's growing tax base and will reflect a 3.68% increase in the gross tax levy. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2020. Option 4: 2% Gross Tar Levy Increase The Preliminary 2021 Budget proposes a total property tax levy of $14,769,245: $9,338,793 (63.23%) operational levy, $3,166,875 (21.44%) debt service levy, and $2,263,577 (15.32%) capital/watershed levy. The 2021 Proposed Property Tax Levy is estimated to decrease the current City tax rate by 1.39%. That rate will be applied to the City's growing tax base and will reflect a 2.00% increase in the gross tax levy. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2020. BUDGETIMPACT This is the first step in establishing the City of Andover property tax levy for 2021 ACTION REQUESTED The Andover City Council is requested to receive a brief presentation, discuss, and provide direction to staff on what tax option and type of presentation is desired at the September 15th City Council meeting to adopt the 2021 Preliminary Tax Levy. Jim y submitted, Option 1 - Proposed 2021 Property Tax Levy Option 2 - Proposed 2021 Property Tax Levy Option 3 - Proposed 2021 Property Tax Levy Option 4 - Proposed 2021 Property Tax Levy City of Andover, Minnesota Property Tax Levy Codified C M.d Cadillac! Codified Codified Requested Change 2016 2017 TO18 2019 2020 2021 %of Total S % General Fund Lew General Operations $ ],94],528 S 8,254,354 $ 8.543,255 S 0,045,970 S 9,198030 $ 9,561,793 63.27% S 36],]61 4.00% Parks RepairlReplacement Items 90,000 90,000 10.000 10.000 120,000 120,000 0.79% $ 0.00% Total General Fund 8,037,528 8,344,354 0,643,256 8,945,970 9,314,032 9,681 793 640fi% S 367,761 3.95% Debi Sconce Funds Lew 2010A G.O. Open Space Referendum Bands 188,291 187,840 188.777 183.969 184.199 /84.078 201M G.O. Equipment Continue 142,885 - - - - - 20128 G.O. Cep Improv Refunding Bonds 498.435 - - - - - 2012CTaxable G.O.Abatement Bonds 9]],332 974,418 972,055 969,370 9]6,]00 973,263 2014A G.O. Equipment Certificate 295,470 295,260 294,945 294,525 - - 2016AG.O. Equipment Condole - 152,528 143,310 142,837 143,373 - 2018A G.O. Cap Improv Plan Bonds - - - 525,000 433,603 456,344 2019A G.O. Abatement Bonds - - - - 1,001,090 976,986 2020 G.O. Equipment Certificate - - - - 350,000 406,224 2021 G.O. Equipment Certificate 170,000 Total Debt Service 2,100,413 1,610,047 1,591 2.115.729 3,089,045 3,166.8]5 20.96% S 77,830 262% Other Levies Community Center Operations Levy - - - - - 155,000 1.03% $ 155,000 SDIVI01 Capital projects Levy Capital Equiparentotroject 250,000 20,000 275,000 275,000 275,000 250,000 1.65% $ (25.000) -909% Capital Equipment purchases - 50.000 525,000 - - - 0.00% S 11DIVI01 Facility Maintenance Reserve - - 50,000 355,000 355,000 355,000 2.35% S .00% Pads Projects 15,000 15,000 15,000 15,000 15,000 15,000 0.10% $ 0.00% Road B Brides 1,089.146 1,116.079 1169,014 1,254,788 1,287,469 1342,456 8.88% S 54.987 4.27% Pedegdan Trail Maintenance 61,838 63,075 100,000 102,000 104,640 106,121 0.70% $ 2,081 2.00% Lowe Rum River Watershed 40,000 40.000 40.000 40,000 4.000 40,000 0.25% S 0.00% Total Other 1,455,964 1,964,154 2,174,014 2,041,780 2,076,509 2,263,57] 14.97% $ 32,068 154% Gross City Levy 11,593,925 11,938,555 12,416,357 13,103,407 14,479,586 15,112,245 100% $ 632,659 4.37% Less Fiscal Cupertino Cstnbuecn 1,586,747 1,]36,54] 1,802,963 1,725,448 1,896,892 1,952,248 Lo cal Tax Rate Levy $ 10.00].1]8 $ 10.202.008 $ 10,613,394 S 11.378.039 $ 12,582,694 S 13,159,999 Less i-oxy Based on Mallet Value $ 186.291 $ 18],840 $ 188,]]] S 183,988 S 184,199 S 184,0]8 Net Local Tax Rate Levy S 9,820,887 $ 10,014,188 $ 10,424,617 S 11,194,050 $ 12,398,495 $ 12,975,921 Adjusted Tax Capacity Value- (1) 25,543,662 26,703,971 30,007,904 ]1.604,]11 34,675,332 35,828,582 SDIV/01 4.54% 12.37% 5.32% 9.72% 3.33% Chanoea %hange Tax Capacity Rate"' 36.M7% 37.501% 34.740% 35.419% 35.756% 36.220% 0464% 1.300% Tax Capacity Rete W/O LRRWSD 38.31496 3].3]4% 34.627% 35.310% 35.855% Tax Capacity Rate With LRRWSD 38702% 3]]38% 34.952% 35621% 35.942% Voter Approved Ref - MV 0.00699% 0.00681% 0.00601% 0.00572% 0.00526% "Adjusted Value determined by adjusting for Fiscal Wapanflis and Tax los errant estimates "' Rlendad rate due to, the City ofAadoyor Is vying for Lower Rum River Watershed Wsfrict (1) Adjusted Tax Capacity Value is subject to change. OV*1on aI CITY OF ANDOVER MINNESOTA Attachment 2021 Property Tax Levy Proposed 2021 Levy General Fund Levy General Operations $ 9,561,793 Park Repair/Replacement Items 120,000 Total General Fund 9,681,793 Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds 184,078 2012C Taxable G.O. Abatement Bonds 973,263 2018A G.O. Capital Improvement Plan Bonds 456,344 2019A Taxable G.O. Abatement Bonds 976,966 2020A G.O. Equipment Certificate 406,224 2021A G.O. Equipment Certificate 170,000 Total Debt Service 3,166,875 Other Levies Community Center Operations Levy 155,000 Capital Projects Levy Capital Equipment/Project 250,000 Facility Maintenance Reserve 355,000 Parks Projects 15,000 Road & Bridge 1,342,456 Pedestrian Trail Maintenance 106,121 Lower Rum River Watershed 40,000 Total Other 2,263,577 Gross City Levy $ 15,112,245 City of Andover, Minnesota Property Tax Levy Certified Carl Certified Certified Canned Requested Change 2016 2017 2018 2019 2020 2021 %of Total S % General Fund Lew General Operations S ),94),528 $ 8,254,354 $ 0,543,255 $ 8,845,910 S 9,194,032 $ 9,396,493 6287% 3 202,461 2.20% Pahs RepeidReplecement Items 94000 90000 100000 189,099 120,000 120,0011 0.80% E 0.00% Tehl General Fund 8,037.528 8,344,354 8,643,256 0,945,970 9,314,032 91516,493 63.67% S 202,461 2.17% Dahl Service Funds Lew 2010A G.O. Open Space Referendum Bonds 185,291 181.040 188,M 183,989 184,199 184,078 2012A G.O. Equipment Certificate 142,885 - - - - - 2012B G.O_ Cap Improv Refunding Bonds 498,435 - - - - - 2012C Taxable G.O. Abatement Bonds 91],332 974,418 972,055 969.318 978,180 973,263 2014A G.O. Equipment Certificate 295.470 295.260 294,945 294,525 - - 2016AG.O.Equipment Certificate - 152,529 143,310 142,837 143,373 - 2018A G.O. Cap Improv Plan Bonds - - - 525,000 433,603 456,344 2019A G.O. Abatement Bonds - - - - 110011090 976,966 2020 G.O. Equipment Certifcate - - - - 350.000 406,224 2021 GO. Equipment Cenifcate - 170,OW Total Debt Be,.. 2,100,413 1,610,041 11599,087 2,115,729 3,089,045 3,166,815 21.18% $ 77,830 2.52% Other Levies Community Canter Operations Levy - - - - - 155,00 104% $ 155,000 ODIV101 Capital Projects Levy Capital EquipmentlProject 250.000 254011 275,000 275,00 215,00 250,00 181% 3 (25,00) -9.00% Capital Equipment Pumhaees - 50,00 525,00 - - - 0.0% S - aDIVI01 Faulity Maintenance Reserve - - 5400 355,00 355,000 355,000 2.38% $ - 0.0% Pence Projects 15,00 15,00 15,00 15,00 15,00 15,000 0.10% $ - 0.0% Read S and, 1,09,146 1,116,079 1,169,014 1,254,138 1,281,469 1,342,466 8.98% $ 54,987 427% Pedestrian Trall Maintenance 61,838 63.075 10009 102.Wo 10(040 10.121 0.71% $ 2,081 2.0% lover Rum River Watershed 40,000 4400 40,000 40,00 4400 40,000 0.27% $ 000% Total Other 1,455,984 1.984054 2,174,014 2,041,788 2.076.50 2,263,577 15.15% 5 32,08 1.54% Gross City Levy 11,593,925 11,938,555 12,416,357 13,10,487 14,479,586 14,946,945 100% S 467,359 123% Less Facet Disparities Ustdbullon 1.588,747 1,736,547 1,804963 1,725,448 1,896,892 1,952,246 Local Tax Rab Lew S 10,00),1)8 S 10.202.008 S 10,613,394 S 11,378,039 $ 12,582,694 S1 Les. Le Based on Market Value S 186,291 $ 187,640 $ 188,]/) S 183,989 5 it84,199 S 136,078 Net Local Tex Rah Levy 9,820,887 S 10,014,168 S 10,424,617 S 11.194,050 $ 12.398,495 $ 12,810,621 _L Adjusted Tax Capacity W.." (1) __L5 50,662 26,703,971 30,007.904 31,804,711 34,615,332 35,828,582 EDIVI01 4.54% 12.37% 5.32Y. 9.72% 3.33% Chane %Chance Tax Capacity Rate"' 38.441% 37.01% 34]40% 35.419% 35.756% 35.760% 0.004% 0.010% Tax Capacity Rete WIO LRRWSO 38.314% 37.374% 34.621% 35.310% 35.656% Tax Capacity Rate With LRRWSD 38.102% 37.738% 34.952% 35.621% 35.942% Voter Approved Ref - MV 0.00699% 0.00681% 0.00681% O.W572% 00526% "AndabW Value determined by adjuadr, WFlscal D.Penf es end Tex Irxrament esdmefes "' BleMed sate due to the City of Andaverlavying for Lower Rum River Wetushad asMsf (1) Adjusted Tax Capacity Value is subject to change. o0ton a CITY OF ANDOVER, MINNESOTA Attachment A 2021 Property Tax Levy Proposed 2021 Levy General Fund Levy General Operations $ 9,396,493 Park Repair/Replacement Items 120,000 Total General Fund 9,516,493 Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds 184,078 2012C Taxable G.O. Abatement Bonds 973,263 2018A G.O. Capital Improvement Plan Bonds 456,344 2019A Taxable G.O. Abatement Bonds 976,966 2020A G.O. Equipment Certificate 406,224 2021A G.O. Equipment Certificate 170,000 Total Debt Service 3,166,875 Other Levies Community Center Operations Levy 155,000 Capital Projects Levy Capital Equipment/Project 250,000 Facility Maintenance Reserve 355,000 Parks Projects 15,000 Road & Bridge 1,342,456 Pedestrian Trail Maintenance 106,121 Lower Rum River Watershed 40,000 Total Other 2,263,577 Gross City Levy $ 14,946,945 City of Andover, Minnesota Property Tax Levy Km14P1[-D Community Center Operations Le, Car68ad Certified CeTRad CenBiad Cartirad Requested 1.03% S Change SDIVI01 Capital Projects Levy 2016 2017 2018 2019 2020 2021 %of Total 3 % General Fund Lew 250,000 251000 275,000 275,000 275,000 200.000 1.67% S (25.000) 409% General Operations S 7,947,528 $ 0,254,354 S 6,543,256 3 8,045,970 $ 9,194,032 $ 9,461,793 63.03% 6 267,761 2.91% Pads RepaidReplacement Items 90,000 90,000 100,000 101000 120,000 120,000 0.0094 $ - 0.00% Total General Fund 8,037,520 1344,354 8,643,256 8,945,970 9,314,032 9,581,793 63.83% $ 267,761 2.87% Deb! Service Funds Lew 2010A G.O. Open Space, Referendum Bond. 186,291 187,840 188,M 103,989 184,199 164,076 8.94% $ 5,987 4.27% 2012A G.O. Equipment Cedificats 142,085 - - - - - 0.71% $ 2.081 2,0% 20128G,O. Cep Improv Refunding Bonds 498,435 - - - - - 027% S 0.00% 2012C Taxable GO, Abatement Bonds 977,332 974,418 972,055 969,378 976,700 973,263 Total Other 1,455,984 2014A G.O. Equipment Certificate 295,470 295,260 294.945 294.525 - - 1LOSS 1.54% Gross City Levy 11,593,925 2016AG.O.Equipment Contexts - 152.529 143,310 142,837 143,373 - 532,659 3.68Y. 2018A G.O. Cap Improv Plan Bonds - - - 525,000 431,603 456,344 1,896,892 1.952,246 2019A G.O. Abatement Bonds - - - - 1,001,090 976,968 Local Tax Rate Levy S 10,007,178 S 10,202,008 $ 10.613.394 2020 G.O. Equipment Certificate - - - - 350,000 406,224 2021 G.O. Equipment Certifiate Lineol-ir, saeetlon Market Value $ 186,291 $ 187,800 $ 188, $ 183,989 170,000 S 184,078 Total Carl service 2,100,413 1,610,47 1599.007 2.115.729 3.089.045 3.166.875 21.10% S 77.830 2.52% Km14P1[-D Community Center Operations Le, - - - - - 1ill 1.03% S 155,000 SDIVI01 Capital Projects Levy Capital EqulpmenVPmjed 250,000 251000 275,000 275,000 275,000 200.000 1.67% S (25.000) 409% Capital Equipment Purchases - 501000 525,000 - - - 0.00% $ SDIVIUI Facility Maintenance Reserve - - 501000 355,000 355,000 355,000 2.3616 S - 0.00% Peds Projects 15,000 15,000 15,000 15,000 15,000 15,000 0.10% 6 - 0.0094 Road B Bridge 1,089,146 1,116,079 1,169,014 1,254788 1,287,469 1.342,456 8.94% $ 5,987 4.27% Retention Trail Maintenance 61,B98 63,075 101000 102.000 101040 106,121 0.71% $ 2.081 2,0% Lower Rum River Watershed 40,000 40,000 40,000 40,000 40,000 0.000 027% S 0.00% Total Other 1,455,984 1,984,154 2.174,014 2,041,788 2,076,509 2,263,577 15.08% $ 1LOSS 1.54% Gross City Levy 11,593,925 11,938.555 12,416,357 13,103,407 14,479.586 15,012,245 100% $ 532,659 3.68Y. Less Fiscal Departure Distribution 1,586,747 1,736,547 1,002,963 1,725,448 1,896,892 1.952,246 Local Tax Rate Levy S 10,007,178 S 10,202,008 $ 10.613.394 S 11,378,039 S 12,582,694 S 13,059,999 Lineol-ir, saeetlon Market Value $ 186,291 $ 187,800 $ 188, $ 183,989 S 184.199 S 184,078 NO Local Tax Rata Levy S 9,020,887 $ 10,014,168 $ 10,424,617 S 11,1941050 $ 12,398,495 S 12,875.921 Adjusted Tex Capacity Value" (1) 25,543,662 26,703,971 30,007,904 31,604,711 34,675,332 35,828,582 SDIVA01 4.54% 12.T% 5.32% 9.72% 3.33% Chance %Chance Tax Capacity Rate... 36.447% 37.501% U.740% 35.419% 35.756% 35940% 0.184% 0.510% TO Capacity Rale WAD LRRWSD 36.314% 37.374% 34.627% 35.310% 35.656% Tae Capacity Rete With LRRWSD 38.702% 37738% 34.952% 35.621% 35.942% Voter Approved Ret - MV 0.00699% 0.001 1% 0.0088194 0.00572% 0.00526% "Adfusted Value detemi by adjuster, for Flsnl Disparities and Tax Incroment estimates "Bh ntkd rate due to the Gly of Andover levying far Lower Rum River Watershed Unfold (1) Adjusted Tax Capacity Valva is subject to change. CITY OF ANDOVER, MINNESOTA Attachment A 2021 Property Tax Levy Proposed 2021 Levy General Fund Levy General Operations $ 9,461,793 Park Repair/Replacement Items 120,000 Total General Fund 9,581,793 Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds 184,078 2012C Taxable G.O. Abatement Bonds 973,263 2018A G.O. Capital Improvement Plan Bonds 456,344 2019A Taxable G.O. Abatement Bonds 976,966 2020A G.O. Equipment Certificate 406,224 2021A G.O. Equipment Certificate 170,000 Total Debt Service 3,166,875 Other Levies Community Center Operations Levy 155,000 Capital Projects Levy Capital Equipment/Project 250,000 Facility Maintenance Reserve 355,000 Parks Projects 15,000 Road & Bridge 1,342,456 Pedestrian Trail Maintenance 106,121 Lower Rum River Watershed 40,000 Total Other 2,263,577 Gross City Levy $ 15,012,245 City of Andover, Minnesota O 1 OV -N Property Tax Levy Certified Certified cartifiad certified Certified Requested Change 2016 2017 2016 2019 2020 2021 %of Total $ % Gambrel Fund Lew General Operations E ],94],528 E 8,254,354 $ 8.543,258 E 0,045,970 E 9,194,032 E 9,216.793 62.42% E 24,761 0.27% Perks Repair/Replacement Items 90,000 90,00 100,000 100,000 120,000 120,000 0.01% E 0.00% Total Genbral Fund 8,037.528 8,344,361 8,643,256 8,945,970 9,314,032 9,338,793 63.23% $ 24,761 0.27% Not service Funds Lew 2010A G.O. Open Space Referendum Bonds 186.291 187.840 fill 183.989 184,199 184,078 201M G.O. Equipment Cenificate 142,085 - - - - - 20128 G.O. Cap Improv Refunding Bonds 498,435 - - - - - 2012CTaxableG.O.Abatement Bonds 977,332 974,418 972,055 989,378 976,780 973,263 2014A G.O. Equipment Cenilude 295,470 295.260 294.945 294,525 - - 2016AGO. Equipment Cenificate - 152,529 143,310 142,837 143,373 - 201BA G.O. Cap Improv Plan Bands - - - ws'obo 433.603 456,344 2019A G.O. Abatement Bonds - - - - 1,001,090 976.9135 2020 G.O. Equipment CenlOcate - - - - 350,000 408,224 2021 G.O. Equipment Certificate 170,000 Total Debt Service 2.100.413 1.610.047 1.599.087 2.115.729 3.069.045 3.168.075 21.44% E T' 830 2.52% Other Levies Community Canter Operations Levy - - - - - 155,000 1.05% $ 155,000 SDIVMI capital Prolbats Levy Capital EquipmenVProjaot 250,000 250,000 275,000 275,000 275,000 250,00 1.89% 8 (25,00) .9.01 Capital Equipment Purchases - 500,000 525,000 - - - 0.00% S - SDIVMI Facility Maintenance RBseNe - - 50,000 355,000 355,000 355,000 2.40% S - a.m% Perks Projects 15,000 15,000 15,000 15,000 15,000 15,000 0.10% $ - 0.00% Road 8 Bridge 1,009,146 1,116,079 1,169,014 1.254,788 1,287,469 1,342,456 809% E 54,987 4.27% Pedestrian Tmil Maintenance 81,838 63,075 100,000 102,000 104,40 105,121 0.72% S 2,081 2.00% Lower Rum River Watershed 40,000 40.000 40.000 40.000 40.000 40.000 0.27% $ 0.00% Total Other 1,455,984 1,984,159 2,174,014 2,041788 2,076,509 2,263,5]/ 15.32% E 32.068 1.54% Gross City Levy 11,593,925 11,938,555 12,416,357 13,103,487 14,479,508 14,769,245 100%. E 289,659 t00% Less Fiscal Oisprimms !Distribution 1,586,747 1.736,547 1,802,983 1.725,448 1.898,892 1,952,246 Local Tax Rah Levy E 10,007,178 E 10,202,008 E 10,813.394 E 11,378,039 E 12,5824694 E 12,816,999 Less Lev, Based on Market Value $ 186,291 S 187,840 S 188,777 $ 183,989 f 184,199 E 184,078 Net Local Tex Rah Levy S9.820.887 _L_10.014.168 E 10,424.617 _L11,191.050 _LI2.398.495 _LI2.632.921 Adjusted Tax Capactty Value" (1) 25,547,662 26,703,971 30.007,904 31,604,711 %,675,332 35,828,582 BDIVIoI 454% 12.37% 5.32% 9.72% 3.33% Change %Chume Tax Capacty Rate... 30447% 37.501% 34.740% 35.419% 35.758% 35260% 0.496% -1390% TU Capacity Rate NO LRRWSO 38.314% 37.374% 34.627% 35.310% 35656% Tax Capacity Rate Nth LRRWSO 38702% 37738% 34.952% 35.621% 35.942% Voter Approved Ref -MV 0.00699% 0,0681% 0.00681% 0,0572% 0.00526% "Adjusted Value determined by adjusling far fiscal asperities and Tax Increment ec6.dtea ---Blended rata due to the City of Andover levying for Lower Rum River Watershed DSMC (1) Adjusted Tax Capacity Value is subject to change. CITY OF ANDOVER, MINNESOTA Attachment A 2021 Property Tax Levy Proposed 2021 Levy General Fund Levy General Operations $ 9,218,793 Park Repair/ReplacementItems 120,000 Total General Fund 9,338,793 Debt Service Funds Levy 2010A G.O. Open Space Referendum Bonds 184,078 2012C Taxable G.O. Abatement Bonds 973,263 2018A G.O. Capital Improvement Plan Bonds 456,344 2019A Taxable G.O. Abatement Bonds 976,966 2020A G.O. Equipment Certificate 406,224 2021A G.O. Equipment Certificate 170,000 Total Debt Service 3,166,875 Other Levies Community Center Operations Levy 155,000 Capital Projects Levy Capital Equipment/Project 250,000 Facility Maintenance Reserve 355,000 Parks Projects 15,000 Road & Bridge 1,342,456 Pedestrian Trail Maintenance 106,121 Lower Rum River Watershed 40,000 Total Other 2,263,577 Gross City Levy $ 14,769,245