09-08-2004 AgendaCITY OF RICHFIELD, MINNESOTA
WEDNESDAY, SEPTEMBER 8, 2004
SPECIAL CITY COUNCIL MEETING
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
5:30 P.M.
AGENDA
Call to order
Roll call
1. Consideration of 2004 Revised/2005 Proposed Budget resolutions adopting 2005
preliminary property tax levy and setting Truth in Taxation hearing dates, authorizing
budget revisions, authorizing revision of 2004 budget of various departments, and
authorizing use of Public Employees Retirement Association Police and Fire Fund
refund interest earnings for certain police and fire expenditures
Staff Report No. 139
Notes:
Adjournment
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9702.
AGENDA ITEM #
REPORT #~
STAFF REPORT
CITY COUNCIL MEETING
SEPTEMBER 8, 2004
1
139
Related to:
CITY COUNCIL GOAL(S) No.
REPORT PREPARED BY:
N/A ANn/oR RICHFIELD 2020 GOAL(S) NO N/A
CHRIS REGIS, FINANCE MANAGER
NAME, TITLE
COUNCIL PRESENTER:
DEPARTMENT DIItECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
~~
ATURE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of 2004 Revised/2005 Proposed Budget resolutions adopting 2005 preliminary
property tax levy, setting truth in taxation hearing dates, authorizing budget revisions,
authorizing revision of 2004 budget of various departments, and authorizing use of Public
Employees Retirement Association Police and Fire Fund.refund interest earnings for police
and fire ex enditures.
I. RECOMMENDED ACTION:
By motion: adopt the attached resolutions establishing the 2005
preliminary property tax levy and proposed dates for Truth in
Taxation hearings, authorizing budget revisions, authorizing revision
of 2004 budget of various departments, and authorizing the use of
Public Employees Retirement Association Police and Fire Fund
refund interest earnings for Police and Fire expenditures.
09082004budgetres
II. BACKGROUND
On August 18 and August 24, 2004, two Special City Council Worksessions were
conducted. At these meetings, a presentation and discussion of the 2004
Revised/2005 Proposed Budget and 2005 preliminary property tax levy took place.
For taxes payable 2005, levy limits have been removed by the Legislature.
Therefore, at the two Worksessions, information was presented to the City Council
regarding the preliminary property tax levy and other non-tax revenue information.
Consequently, as a result of these two meetings, the City of Richfield's preliminary
gross tax levy, which includes a debt levy of $385, 560 totals $10,993,024, which
represents a 7.17% increase from the 2004 gross levy.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City Charter establishes that at a special budget meeting of the
Council on or before September 15, the City Manager must submit to
the Council a proposed budget and a budget message in the form and
containing the information specified in Section 7.06. In affect the City
Charter now more closely follows the Truth in Taxation Statute, which
in the past overrode the Charter process for budget adoption.
• Consequently, as required by the Truth in Taxation legislation (MS
275.065) each "taxing authority" must certify its proposed property tax
levy for payable year 2005 to the County Auditor on or before
September 15, 2004. "Taxing authority" includes all counties, all
school districts, all cities regardless of population, all towns and all
special taxing districts. No local units of government are exempted
from this requirement.
• In addition, each "taxing authority" with a population of 500 or more,
must certify to their County Auditor the dates that have been selected
for the Truth in Taxation hearings by September 15, 2004. The date
for this hearing must not conflict with the hearing dates of the county
or of the school district in which the "taxing authority" is located. This
Truth in Taxation public hearing must be held between November 29
and December 20, 2004.
B. CRITICAL ISSUES
• Along with the 2004 Revised/2005 Proposed budget and preliminary
property tax levy, City staff is also recommending dates for this year's
Truth in Taxation public hearings. It is recommended that this year's
hearings be set for 6:30 p.m. Monday, December 6, 2004 with a
continuation date of 6:30. p.m. Monday, December 13, 2004. As
Council Members are aware, at these public hearings, the tax levy
may be reduced from the preliminary tax levy, but not increased.
• All official action concerning the preliminary tax levy and setting dates
for the Truth in Taxation hearings must be concluded before
September 15, 2004.
C. FINANCIAL
• The preliminary gross levy for payable 2005 is $10,993,024, which
includes a $385,560 debt levy.
• The City's tax capacity rate will reflect a slight decrease from 40.514%
in 2004 to 39.098% in 2005.
• A final resolution for consideration authorizes the revision of the 2004
budget to conform to the most recent 2004 revenue and expenditure
projections.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• The City Council could adopt a lesser 2005 preliminary property tax levy, or
2004 Revised/2005 Proposed budget or select other allowable Truth in
Taxation hearing dates.
V. ATTACHMENTS
• Resolution Adopting a Proposed Budget and Tax Levy for the Year 2005
• Resolution Authorizing Budget Revisions
• Resolution Authorizing Revision of 2004 Budget of Various Departments
• Resolution Authorizing Use of Public Employees Retirement Association
Police and Fire Fund Refund Interest Earnings for Police and Fire
Expenditures for 2004 Revised and 2005 Proposed Budget
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
RESOLUTION NO.
RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY
FOR THE YEAR 2005
WHEREAS, the Minnesota Truth in Taxation law provides for a proposed tax levy to
be certified to the County Auditor by September 15, 2004 and then recertified before
December 31, 2004.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota as follows:
1. The budget for the City of Richfield for the year 2005 is hereby approved and
adopted with appropriations for each of the departments to be as follows:
General Fund
Legislative/Executive $ 795,390
Administrative Services 1,058,500
Public Safety 6,904,380
Fire Services 2,543,030
Community Development 221,750
Public Works 3,407,660
Recreation Services 1,456,400
Transfers 15,000
TOTAL GENERAL FUND $16,402,110
2. The estimated gross revenue of the City of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year 2005 which are
more fully detailed in the City Manager's official copy of the 2005 budget, are
hereby found and determined to be as follows:
TOTAL GENERAL FUND $16,402,110
3. There is hereby levied upon all taxable property in the City of Richfield a direct
ad valorem tax in the year 2004, payable in 2005 for the following purposes and
in the following amounts:
PURPOSE
General Fund'
Debt Service
AMOUNT
$10,607,4642
385,560
' Provision has been made in the General Fund for the payment of the City's
.contributory share to Public Employees' Retirement Association.
2 General Fund Levy included all fiscal disparities distribution amounts.
4. The budget for the Housing and Redevelopment Authority of Richfield for the
year 2005 is hereby ratified and approved. There is hereby levied upon all
taxable property in the City of Richfield a direct ad valorem tax in the year 2004,
payable in 2005 for the following purposes:
PURPOSE AMOUNT
Housing and Redevelopment Authority $377,878
5. A certified copy of this resolution shall be transmitted to the County Auditor.
6. The Truth in Taxation public hearings shall be set for 6:30 p.m. December 6,
2004 with a continuation hearing at 6:30 p.m. December 13, 2004 if necessary.
Adopted by the City Council of the City of Richfield, Minnesota this 8th day of
September 2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
RESOLUTION NO.
RESOLUTION AUTHORIZING BUDGET REVISIONS
WHEREAS, the City Charter and Minnesota Statutes provide for a process for
adopting an annual budget and tax levy; and
WHEREAS, the City Charter provides certain authority for the City Manager and/or
City Council to revise the annual budget; and
WHEREAS, it would be beneficial to restate such authority with the adoption of the
budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota as follows:
1. The City Manager may increase the budget by City Council action provided that
unbudgeted receipts will be available to equal or exceed the increased expenditures.
2. The City Manager may authorize transfers between divisions within a department
providing the transfers do not increase or decrease the department or total budget.
3. The City Manager may transfer budgeted amounts between departments only with the
approval of the City Council
Adopted by the City Council of the City of Richfield, Minnesota this 8th day of
September, 2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF 2004 BUDGET OF VARIOUS
DEPARTMENTS
WHEREAS, Resolution No. 9405 appropriated funds for personal services, other
expenses and capital outlays for each department of the City for the year of 2004; and
WHEREAS, The City Charter, Chapter 7, Section 7.09, gives the Council authority
to transfer unencumbered appropriation balances from one department to another within
the same fund at the request of the City Manager; and
WHEREAS, The City Manager has requested a revision of the 2004 budget
appropriations in accordance with Charter provisions and as detailed in the Proposed 2005
budget document.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota as follows:
1. That the 2004 appropriations -for each department of the General Fund be
amended to establish the following totals:
General Fund
Legislative/Executive $ 866,380
Administrative Services 1,008,570
Public Safety 6,714,860
Fire Services 2,586,350
Community Development 215,690
Public Works 3,189,300
Recreation Services 1,415,590
Transfers 615,000
TOTAL GENERAL FUND 16,611,740
INCREASE $ 955,440
2. Estimated 2004 gross revenue of the City of Richfield from all sources, as the
same are more fully detailed in the City Manager's official copy of the proposed
2005 budget, are hereby revised as follows:
INCREASE
$955,440
3. That the City Manager and the Finance Manager bring into effect the provisions
of this resolution.
Adopted by the City Council of the City of Richfield, Minnesota this 8th day of
September 2004.
ATTEST:
Martin J. Kirsch, Mayor
Nancy Gibbs, City Clerk
RESOLUTION NO.
RESOLUTION AUTHORIZING USE OF PUBLIC EMPLOYEES RETIREMENT
ASSOCIATION POLICE AND FIRE FUND REFUND INTEREST EARNINGS FOR
CERTAIN POLICE AND FIRE EXPENDITURES
WHEREAS, the City of Richfield received a refund of overfunded residual assets
from the closed Public Employees Retirement Association (PERA) Police and Fire Fund;
and
WHEREAS, the City adopted a plan where only interest earnings on the principal of
the residual assets are to be used for eligible expenditures; and
WHEREAS, all eligible expenditures be restricted to Police and Fire expenditures;
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota as follows:
1. Proposed 2005/Revised 2004 Police and Fire Expenditures using PERA funds
Capital Improvement Budget 2004R 2005
800 MHz Radio 20,000 20,000
General Fund Operatinq Expenditures
Motor Vehicle 95,500. 117.000
115,500 137.000
Adopted by the City Council of the City of Richfield, Minnesota this 8th day of
September 2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk