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#2 Public hearing, discussion and possible action on proposed City and Library budgets ADMINISTRATIVE SERVICES MEMORANDUM November 14, 2011 TO: City Council FROM: Jacob J. Winzenz, Dir. of Admin. Services/Asst. City Manager SUBJECT: Public Hearing and Possible Action on FY2012 Proposed City and Library Budgets On October 10, 2011, the proposed 2012 City and Library budgets were distributed to the City Council. As proposed by the City Manager, the 2012 City and Library budgets had a net increase of $211,737 in total expenditures (including debt service). However, total revenue (including applied fund balance) decreases $536,387 resulting in an increase in the municipal tax levy, without TIF, of $748,124, or 2.61%. This increase in the tax levy, plus the TIF tax levy, results in a 3.12% increase in the tax levy for municipal purposes. Even though the tax levy is increasing, the owner of an average home assessed at $120,100 will see a decrease in their property tax bill of approximately $8.58 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. These adjustments result in no net change in the proposed 2012 tax levy. A summary of these adjustments are attached for your review. A public hearing on the proposed 2012 City and Library budgets is scheduled during the November 14, 2010 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 28, 2011. The City Council may also discuss the proposed budgets and make amendments. At the meeting on November 28, 2011, 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 2012 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 December 5, 2011 or December 6, 2011. pl Proposed 2012 Municipal Tax Rate & Levy Comparison 11/7/2011 For Years Indicated Below AmountPercentage AdoptedProposedIncreaseIncrease 20112012(Decrease)(Decrease) Tax Levy: Municipal Property Tax Levy$28,645,563$29,393,687$748,1242.61% TIF Levy857,4911,029,382171,89120.05% Total Tax Levy$29,503,054$30,423,069$920,0153.12% Tax Rates: Municipal Property Tax Rate$8.1303$7.6384($0.4919)-6.05% TIF Tax Rate0.24330.26750.02429.95% Total Tax Rate$8.3736$7.9059($0.4677)-5.59% Taxes Paid (Ave. Home 2010 $114,000; 2011 $120,100) Municipal Purposes$926.85$917.37($9.48)-1.02% TIF27.7432.134.3915.83% Total Taxes Paid$954.59$949.50($5.09)-0.53% Assessed Valuation (estimate)$3,523,305,580$3,848,151,430$324,845,8509.22% Ave. Home Assessed Valuation$114,000$120,100 AmountPercentage AdoptedProposedIncreaseIncrease Municipal Purposes20112012(Decrease)(Decrease) Operations Levy (w/o TIF): General Fund$20,454,560$21,005,162$550,6022.69% Library2,966,8332,986,41919,5860.66% Total Operation Levy $23,421,393$23,991,581$570,1882.43% (w/o TIF) Debt Levy : General Fund$4,983,084$5,186,604$203,5204.08% Library241,086215,502(25,584)-10.61% Total Debt Levy $5,224,170$5,402,106$177,9363.41% Levy without TIF$28,645,563$29,393,687$748,1242.61% Non-Property tax Rev/Applied Fund Bal$17,043,469$16,507,082($536,387)-3.15% Total Expenditures$45,689,032$45,900,769$211,7370.46% Note: Municipal Tax Levy & Rate includes the General Fund and Hedberg Public Library. \\petey\COJHome\Finance & Administration\Accounting\Budget\2012\2012 Proposed Budget Characteristics.xlsMunicipal11/7/2011 pl Proposed 2012 General Fund Budget 11/7/2011 Characteristics AmountPercentage AdoptedProposedIncreaseIncrease 20112012(Decrease)(Decrease) Revenues: Non-Property Tax Revenues$14,910,600$14,747,150($163,450)-1.10% Transfers 350,000 160,000 (190,000)-54.29% Applied Fund Balance890,000825,000(65,000)-7.30% Total$16,150,600$15,732,150($418,450)-2.59% Expenditures: Operations$36,605,160$36,737,312$132,1520.36% Debt Service4,983,0845,186,604203,5204.08% Total$41,588,244$41,923,916$335,6720.81% Tax Levy: City Property Tax Levy$25,437,644$26,191,766$754,1222.96% TIF Levy761,463917,249155,78620.46% Total Tax Levy$26,199,107$27,109,015$909,9083.47% Tax Rates: City Property Tax Rate$7.2198$6.8063($0.4135)-5.73% TIF Tax Rate0.21620.23840.022210.27% Total Tax Rate$7.4360$7.0447($0.3913)-5.26% Taxes Paid (Ave. Home 2010 $114,000; 2011 $120,100) General Fund$823.06$817.44($5.6200)-0.68% TIF24.6528.633.980016.15% Total Taxes Paid$847.71$846.07($1.6400)-0.19% Assessed Valuation (estimate)$3,523,305,580$3,848,151,430$324,845,8509.22% Ave. Home Assessed Valuation$114,000$120,100 AmountPercentage AdoptedProposedIncreaseIncrease General Fund20112012(Decrease)(Decrease) Total Levy $25,437,644$26,191,766$754,1222.96% (w/o TIF) Less: Debt Service4,983,0845,186,604203,5204.08% Operations Levy $20,454,560$21,005,162$550,6022.69% (w/o TIF) \\petey\COJHome\Finance & Administration\Accounting\Budget\2012\2012 Proposed Budget Characteristics.xlsGeneral Fund11/7/2011 pl Proposed 2012 Hedberg Public Library Budget 11/7/2011 Characteristics AmountPercentage AdoptedProposedIncreaseIncrease 20112012(Decrease)(Decrease) Revenues: Non-Property Tax Revenues$834,199$774,932($59,267)-7.10% Applied Fund Balance58,6700(58,670)-100.00% Total$892,869$774,932($117,937)-13.21% Expenditures: Operations$3,859,702$3,761,351($98,351)-2.55% Debt Service241,086215,502(25,584)-10.61% Total$4,100,788$3,976,853($123,935)-3.02% Tax Levy: City Property Tax Levy$3,207,919$3,201,921($5,998)-0.19% TIF Levy96,028112,13316,10516.77% Total Tax Levy$3,303,947$3,314,054$10,1070.31% Tax Rates: City Property Tax Rate$0.9105$0.8321($0.0784)-8.61% TIF Tax Rate0.02740.02910.00176.20% Total Tax Rate$0.9379$0.8612($0.0767)-8.18% Taxes Paid (Ave. Home 2010 $114,000; 2011 $) Library Purposes$103.80$99.94($3.8600)-3.72% TIF3.123.490.370011.86% Total Taxes Paid$106.92$103.43($3.4900)-3.26% Assessed Valuation (estimate)$3,523,305,580$3,848,151,430$324,845,8509.22% Ave. Home Assessed Valuation$114,000$120,100 AmountPercentage AdoptedProposedIncreaseIncrease Library20112012(Decrease)(Decrease) Total Levy $3,207,919$3,201,921($5,998)-0.19% (w/o TIF) Less: Debt Service241,086215,502(25,584)-10.61% Operations Levy $2,966,833$2,986,419$19,5860.66% (w/o TIF) \\petey\COJHome\Finance & Administration\Accounting\Budget\2012\2012 Proposed Budget Characteristics.xlsLibrary11/7/2011 P.L. 11/4/11 City of Janesville City Council Budget Adjustments 2012 Budget General Fund Tax Levy Proposed$ 26,191,766 Council Changes: October 20, 2011 Recreation $ 2,500 Reductionofrevenueassociatedwithalcoholpermit salesforuseinParkpavillionsandatMainSt. Entertainment. Subtotal$2,500 Council Changes: November 3, 2011 Recreation- Ice $ (2,500) Increaseicerentalfees$5.00perhourafterfacility renovation (9/1/12) Parks - Increaseovertimeexpenseby$10,000toprovide weekendcleaininganddecreasetreefundingby $10,000. Subtotal-$2,500 Total General Fund Tax Levy as of November 3, 2011$ 26,191,766 Other Funds Budgets Adjustments Council Changes: November 3, 2011 Sanitation$ 130,000 Increase tipping fee to $35 ton Sanitation 200,000 Maintain tonnage at landfill at 2011 levels Total Revenue Increase for Sanitation Fund$ 330,000 \\Petey\Budget\Orientation\Budget Admin and Distribution\2012\Summary of Council Budget Adjustments 2012.xlsx