HomeMy WebLinkAbout09.14.06 Council Packet
City of Fannington
325 Oak Street
Farmington, MN 55024
1. CALL TO ORDER
2. APPROVE AGENDA
Mission Statement
Through teamwork and cooperation,
the City of Farmington provides quality
services that preserve our proud past and
foster a promising future.
AGENDA
SPECIAL CITY COUNCIL MEETING
SEPTEMBER 14, 2006
5:30 P.M.
CITY COUNCIL CHAMBERS
3. APPROVE 2007 PRELIMINARY TAX LEVY AND BUDGET
ADJOURN
City of Farmington
325 Oak Street, Farmington, MN 55024
(651) 463-7111 Fax (651) 463-2591
www.ci.farmington.mn.us
TO:
Mayor, Council Members, City Administrator
FROM:
Robin Roland, Finance Director
SUBJECT:
2007 Preliminary Levy and Budget information
DATE:
September 8, 2006
Information regarding the 2007 Preliminary Levy and Budget that Council will consider at a Special
meeting on September 14th is attached with this memo, These items address the questions which
Council members raised on Tuesday September 5th during the Council meeting,
First, with regard to building permit numbers, The 2007 preliminary budget used 275 new residential
unit building permits as the basis for the estimate, The City's 2020 Comprehensive PIan calls for an
average of 275 permits annually and prior to 2003 this was the number used for the budget project
annually. As you can see from the attached sheet, our historical average from 1998 - 2005 was 379
units, We also consider how many platted lots are available for development,
Council did not give direction on how many building permits should be budgeted, only to say that the
number should be less - a more 'realistic' number. This concern is understandable due to the visible
slowdown in the real estate market. At 8/31/06, the number of permits issued so far is 150 ofthe 300
which were budgeted, There are 50 permits sitting in our Building department waiting to be picked
up and paid for, Ifwe assume that all of these permits will 'come in' then perhaps a more reasonable
estimate is 200 permits for both 2006 and 2007, We would reduce the proposed budget by $275,000
if that estimate is chosen, The only cautionary note here is that commercial/industrial and
institutional permits are not considered in this budgetary estimate.
Second, regarding the growth in the tax base, The numbers provided by Dakota County reflect an
increase in the 2007 gross tax capacity of 13.2%; 3,2% due to new construction and 10% due to
valuation increases to existing property, The 2007 net tax capacity however shows growth of 23%
due to the removal of four TIP districts which no 10nger must be subtracted from the tax base, At
2006 tax capacity rates, this amounts to $520,000 in levy growth with no increase to the tax capacity
rate, The preliminary levy and budget sought to capitalize on the additional funding without a
corresponding tax rate increase,
Third, with regard to the tax levy amount and its affect on individual properties, Attachment #2 with
this memo reflects six properties, their 2006 & 2007 market values, percentage increases, 2006 tax
burden and the resulting 2007 tax burden at various levels of tax levy; as proposed, with $250,000
reduction and with $500,000 reduction, Resulting tax rates at the indicated levels are 43,34%,
41.844% and 40.3489%, respectively,
Staff is re"vieyvilig proposed 2007 expenditures to address a combination of levy reductiorJbllilding
permit revenue adjustment. Once Council determines the level of levy and building permit revenue
adjustments they wish to make at the Special meeting, staff will have the corresponding expenditure
reductions available,
Respectfully submitted,
p~
. Robin Roland
Finance Director
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City of Farmington
Building permit analysis
Number of "Building Permits"
Year residential units (acct # 4305)
1998 276 $ 542,013
1999 343 597,633
2000 383 786,190
2001 486 965,310
2002 582 1,175,565
2003 539 1,110,999
2004 225 603,370
2005 198 564,379
Historical
average 379 $ 793,182
2020
comprehensive
plan average 275
Budget 2006 300 825,000
Actual 8/31/06 150 472,041
Proposed 2007
275
756,250
"Lot" inventory:
As of 8/31/06 there are 927 platted lots available and another 990 shown on concept plans.
9/8/2006
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Professional Services
2006 2007 Proposed
Adopted Difference
1005 Adm / Leg
1006 Adm / HPC 5,000 5,500 500
1010 Adm 16,763 17,200 437
1013 Adm / Elections 8,000 (8,000)
1014 Adm / Communications 1,000 2,000 1,000
1011 HR/ITHR 14,200 16,200 2,000
1012 HR / IT IT 3,750 3,750
1021 Finance / Accounting 12,100 13,000 900
1022 Finance / Risk Mgmt
1030 CD / Planning 1,500 1,500
1035 Cd / Cd 1,500 1,500
1050 PS / Adm 28,150 27,900 (250)
1051 PS / Patrol 2,200 2,200
1052 PS / Inv 7,307 7,307
1054 PS / Em Mgmt 3,500 3,500
1060 Ps / Fire 9,400 15,400 6,000
1061 Ps / Rescue 1,500 1,500
1070 PW / Eng 79,600 79,600
1031 PW / Building Insp 1,550 1,550
1071 PW / GIS 20,000 20,000
1072 PW / Streets 33,300 33,300
1073 PW / Snow Removal 9,000 9,000
1074 PW / Signals 2,150 2,150
1076 PW / Natural Res 22,800 27,800 5,000
1090 P&R / Park Maint 8,380 11 ,780 3,400
1092 P&R / Bldg Maint 30,781 31,976 1,195
1095 P&R / Rec 17,300 34,300 17,000
304,481 369,913 65,432