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#3 Public Hearing on Proposed 2010 City and Library Budgets ADMINISTRATIVE SERVICES MEMORANDUM November 3, 2009 TO: City Council FROM: Jacob J. Winzenz, Dir. of Admin. Services/Assistant City Manager SUBJECT: Public Hearing on FY2010 Proposed City and Library Budgets On October 1, 2009, the proposed 2010 City and Library budgets were distributed to the City Council. As proposed by the City Manager, the 2010 City and Library budgets had a net decrease in total expenditures (including debt service) of $166,162. However, total revenue (including applied fund balance) decreases $719,314 resulting in an increase in the municipal tax levy of $553,152, or 2.01%. This increase in the tax levy results in a 1.39% increase in the tax rate for municipal purposes which costs the owner of an average home assessed at $113,800 an additional $12.50 per year. Over the following three weeks the City Council held three (3) study sessions with staff on the proposed budget and made numerous adjustments. In addition, the City Council reviewed and made an adjustment to the proposed 2009 borrowing for major capital projects which affects 2010 debt service. These adjustments result in a net decrease in the 2010 tax levy of $26,975. A summary of these adjustments are attached for your review. With the adjustments made by the City Council, the proposed City and Library expenditures for 2010 (including debt service) decrease by $193,137, or .42%. With the revenues changes described above the tax levy for municipal purposes increases by $526,177, or 1.91%. This increase in the tax levy results in a 1.29% increase in the tax rate for municipal purposes which costs the owner of an average home assessed at $113,800 an additional $11.62 per year. However, this year Janesville is benefitting from a decline in the TIF tax rate which reduces the tax rate increase to .6%. This will cost the owner of the average assessed home $5.56 on an annual basis. A public hearing on the proposed 2010 City and Library budgets is scheduled during the November 9, 2009 City Council meeting. At this time it would be appropriate to open the public hearing, receive any comments regarding the proposed budgets, and then continue the public hearing to November 23, 2009. At the meeting on November 23, 2009 the public hearing on the proposed budget will be continued, and then closed. Following the public hearing the City Council may discuss, make amendments to, and then take action upon the proposed 2010 City and Library budgets. The City Council will then need to schedule a very brief special meeting to set the tax levy. The City Manager’s office suggests this meeting be held at 7:00 a.m. on November 25, 2009 or November 30, 2009. P.L. 10/29/09 City of Janesville Council Study Session Budget Adjustments For the Proposed 2010 Budget General Fund Tax Levy$ 24,916,347 Council Changes: October 8, 2009Category City Councilpoverty initiative$ 15,000 Subtotal$ 15,000 Council Changes: October 13, 2009 Parksrecycling costs $ (6,300) ParksTraxler warming house operations 1,000 Policehire additional officer on July 1 27,000 Snow Removallevel of service 2"- 3" removal policy 50,000 Subtotal$ 71,700 Council Changes: October 20, 2009Category Recreationwading pool hours at Riverside match Palmer$ 6,700 Subtotal$ 6,700 Council Changes: October 26, 2009Category Debt Servicedefer $1,000,000 borrowing for Fire Station$ (120,375) Subtotal$ (120,375) Subtotal Changes to 10/26/2009$ (26,975) Total General Fund Tax Levy as of October 26, 2009$ 24,889,372 C:\Documents and Settings\winzenzj\Local Settings\Temporary Internet Files\Content.Outlook\SEUROQG8\2010 Summary of City Council Study Session Adjustments.xlsx P.L. Proposed 2010 Municipal Tax Rate & Levy Comparison 10/29/2009 For Years Indicated Below With Revisions Through 10/26/09 Council Meeting AmountPercentage AdoptedProposedIncreaseIncrease 20092010(Decrease)(Decrease) Tax Levy: Municipal Property Tax Levy$27,506,587$28,032,764$526,1771.91% TIF Levy964,972784,794(180,178)-18.67% Total Tax Levy$28,471,559$28,817,558$345,9991.22% Tax Rates: Municipal Property Tax Rate$7.9031$8.0052$0.10211.29% TIF Tax Rate0.27730.2241(0.0532)-19.18% Total Tax Rate$8.1804$8.2293$0.04890.60% Taxes Paid (Ave. Home $113,800) Municipal Purposes$899.37$910.99$11.621.29% TIF31.5625.50(6.06)-19.20% Total Taxes Paid$930.93$936.49$5.560.60% Assessed Valuation$3,480,490,530$3,501,835,270$21,344,7400.61% Note: Municipal Tax Levy & Rate includes the General Fund and Hedberg Public Library. AmountPercentage AdoptedProposedIncreaseIncrease Municipal Purposes20092010(Decrease)(Decrease) Operations Levy (w/o TIF): General Fund$19,157,706$19,491,106$333,4001.74% Library2,879,8602,908,66028,8001.00% Total Operation Levy $22,037,566$22,399,766$362,2001.64% (w/o TIF) Total Expenditures$45,660,536$45,467,399($193,137)-0.42% J:\Finance & Administration\Accounting\Budget\2010\2010 Proposed Budget Characteristics.xlsMunicipal11/3/2009 P.L. Proposed 2010 General Fund Budget 10/29/2009 Characteristics With Revisions Through 10/26/09 Council Meeting AmountPercentage AdoptedProposedIncreaseIncrease 20092010(Decrease)(Decrease) Revenues: Non-Property Tax Revenues$15,961,109$15,654,250($306,859)-1.92% Applied Fund Balance1,231,000850,000(381,000)-30.95% Total$17,192,109$16,504,250($687,859)-4.00% Expenditures: Operations$36,349,815$35,995,356($354,459)-0.98% Debt Service5,292,8695,398,266105,3971.99% Total$41,642,684$41,393,622($249,062)-0.60% Tax Levy: City Property Tax Levy$24,450,575$24,889,372$438,7971.79% TIF Levy857,763696,793(160,970)-18.77% Total Tax Levy$25,308,338$25,586,165$277,8271.10% Tax Rates: City Property Tax Rate$7.0250$7.1075$0.08251.17% TIF Tax Rate0.24650.1991(0.0474)-19.23% Total Tax Rate$7.2715$7.3066$0.03510.48% Taxes Paid (Ave. Home $113,800) General Fund$799.45$808.83$9.38001.17% TIF28.0522.66(5.3900)-19.22% Total Taxes Paid$827.50$831.49$3.99000.48% Assessed Valuation $3,480,490,530$3,501,835,270$21,344,7400.61% Ave. Home Assessed Valuation$113,800$113,800$0.0825$9.39 AmountPercentage AdoptedProposedIncreaseIncrease General Fund20082007(Decrease)(Decrease) Total Levy $24,450,575$24,889,372$438,7971.79% (w/o TIF) Less: Debt Service5,292,8695,398,266105,3971.99% Operations Levy $19,157,706$19,491,106$333,4001.74% (w/o TIF) J:\Finance & Administration\Accounting\Budget\2010\2010 Proposed Budget Characteristics.xlsGeneral Fund11/3/2009 P.L. Proposed 2010 Hedberg Public Library Budget 10/21/2009 Characteristics AmountPercentage AdoptedProposedIncreaseIncrease 20092010(Decrease)(Decrease) Revenues: Non-Property Tax Revenues$861,840$880,385$18,5452.15% Applied Fund Balance100,00050,000(50,000)-50.00% Total$961,840$930,385($31,455)-3.27% Expenditures: Operations$3,841,700$3,839,045($2,655)-0.07% Debt Service176,152234,73258,58033.26% Total$4,017,852$4,073,777$55,9251.39% Tax Levy: City Property Tax Levy$3,056,012$3,143,392$87,3802.86% TIF Levy107,20988,001(19,208)-17.92% Total Tax Levy$3,163,221$3,231,393$68,1722.16% Tax Rates: City Property Tax Rate$0.8780$0.8976$0.01962.23% TIF Tax Rate0.03080.0251(0.0057)-18.51% Total Tax Rate$0.9088$0.9227$0.01391.53% Taxes Paid (Ave. Home $113,300) Library Purposes$99.92$102.15$2.23002.23% TIF3.512.86(0.6500)-18.52% Total Taxes Paid$103.43$105.01$1.58001.53% Assessed Valuation 3,480,490,530$3,501,835,270$21,344,7400.61% Ave. Home Assessed Valuation$113,800 AmountPercentage AdoptedProposedIncreaseIncrease Library20092010(Decrease)(Decrease) Total Levy $3,056,012$3,143,392$87,3802.86% (w/o TIF) Less: Debt Service176,152234,73258,58033.26% Operations Levy $2,879,860$2,908,660$28,8001.00% (w/o TIF) J:\Finance & Administration\Accounting\Budget\2010\2010 Proposed Budget Characteristics.xlsLibrary11/3/2009