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01-958Council File # Ol - 9� �(� �Tt TL.! � �/i�i�o�/ i; � . CITY OF RESOLUTION PAU�, M Green Sheet # jI�4 7j7 Presented Referred To Committee Date 1 Resolution Setting The Maairuum Property Tax Levy For The City's 2002 Budget 2 WHEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the City Council 3 on August 14, 2001 the Mayor's Proposed 2002 Budget for the CiTy of Saint Paul, with said recommended 4 budgets totaling $507,710,679, befare subtracting out "Trausfers To Funds and Transfers From Funds° and 5"Subsequent Year's Debt Service' ; and the net spending plan for the 2002 budgets totals $405,099,152 after 6 netting out adjustments for transfers and 2003 debt service costs; and 7 WHEREAS, the Mayor did recommend, as part of his comprehensive 2002 Financing Plan for the City of Saint 8 Paul, that the 2001 Net Property Tas Levy Payable In 2002 be $62,393,263. The Mayor's recommended Net 9 Tax Levy (before fiscal disparities distribution levies) is no change from the tax levied certified by the City 10 Council for the Adopted 2001 City Budget; and is detailed as follows: 11 12 BUDGET +2.0% DELINQ. REVENUE ALLOWANCE MAYOR'S REC. TAX LEVY 13 City Levy far City Operations $42,700,851 $854,017 14 City Levy for Debt Service 18,838,395 (a) 15 City Levy for Port Authority 1 421 569 28.431 16 TOTAL RECOMMENDED: $62,960,815 $882,448 17 18 PROPOSED NET LEVY CERTIFIED: 19 NET LEVY FOR CITY GOVERNMBNT (Without Port AuthoriTy Levy) $43,554,868 18,838,395 1,450,000 $63,843,263 $63,843,263 $62,393,263 20 Footnote: �al The City's debt service levy for eeneral obiigation bonds i�rotected bv a 5% Designated 21 Reserve within the General Debt Service Fund, ner Mn. Statutes 475.61: and thus rec�uires no allowance for 22 anticipated delinquencies. 23 WI3EREAS. this and past Cit�Councils haue acted responsiblv bv not increasin��ro�erty taxes durine the a�st 24 ei�t years. with the net levy certified last veaz beins $4,343,284 less than the 19921ew of $66.736.547 for the 25 1993 bud�et, despite the fact that inflation, as measured by the Consumer Price Index, for the ei�ht yeaz period 26 has been 26%: and 27 WHEREAS, the Mavor's Pro�osed General Fund Budeet has as a financing source, the use of $7,178.000 of 28 fund balance: and on September 5, 2001 the Citv's Fiscal Advisor, Sprinested Incorporated did advise the CitY 29 Council that the one major orofion the Citv Council can alwavs take to protect the Citv's AAA bond rating is to 30 maintain a health�fund balance in its General Fund. 31 WHEREAS, the 2002 Minnesota Le¢isiature enacted significant chanpes in the state's �ro�ertv taac svstem and 1 state aid formulas which distribute Local Government Aid and Homestead Agricultural Credit Aid to the Citv' �� 2 Housing and Redevelopment Authoritv's and Port Authoritv's budgets• and ��! t 3 WAEREAS. the 2002 Citv and HRA bud�et documents which idenrifv bud�et detail where submitted late to 4 the Citv Council and HRA Boazd _ not allowine adequate tixne for the Citv Council to fully understand the 5 impact of all the nronosed changes for the Citv and I�2A budeets• and 7 10 11 12 WFIEREAS. the City Council stron�y desires to have no increase in the Citv's finai tas lew for the 2002 bud�et the Council is not totall�comfortable with the suecifics of the Mavor's �ronosed budgets because of the many tmknowns associated with the proposed bud¢et With limited review of the siumnarv budeets Citv Council members haue raised serious questions regardin� use of the General Fund's fund balances tax increment revenue reductions for both debt service and redevelopment projects, total HACA elimination to the HRA shortaee in PED Aduiinistrative Fund financing use of one time revenue sources for ongoin�operating budgets. and the adequacv of 2001 and 2002 revenaes for the General Debt Service Fund: and 13 WI�REAS, the Laws of 1999, chapter 243, art. 6, sec 2 requires city council approvai of any increase in the 14 city tax rate for 2002; 15 NOW THEREFORE. BE IT RESOLVEA that the City Council rec�uests Mavar Coleman, the Financial 16 Services Office and the Administration to work closelv with the Citv Council in presentingoptions to resolve 17 budget shortaees in a resnonsible way which will protect the inte�ritv of the City's and the HRA's bud�ets; and 18 BE IT FURTHER RESOLVED, in accordance with Minnesota Statutes, Section 275.065, Subdivision 1, the 19 City Council, after considering the Mayor's recommendations, but absence public hearings on the Mayor's 20 budget proposal, does hereby accept the Budgets for Fiscal Year 2002 as proposed by the Mayor, as 21 constituting the Proposed Budgets for the City of Saint Paul; and approves the taac rate increase (as 22 calculated); and 23 BE IT ALSO RESOLVED, That in accordance with the same referenced Statute, the CiTy Council, after 24 considering the Mayor's recommendafion for property tax levies, including the request of the Port Authority, 25 does hereby certify to the Ramsey CounLy Auditor that the Propused Maximum Tax Levy for the City Of 26 Saint Paul for Taxes Payable In 2002 (for use in calcularing the Truth-In-Tasation Notices to be mailed in 27 November of 2001) is: NET CITY LEVI' (Operations, Debt and Port Authoritv): $63,843,263 Requested by Department oL Adopfion Certified by Council Secretary � Appx � � Form Approved by City Attomey � Approved by Mayor for Submission to Council � � S � � t �� Adopted by Council: Date �. �_�� 7d0 � DEPMThffN'IroFFICF/CO[ACIL DATEINRIATED O I �� ExecutiveAdministration-Financial°Services 08-30-01 CaREEN T. NO. 11.3470 �o��oN��o,� o o��o� � ��. PeterHames 266-8796 ;�� Oz crrrerro�r �, crsrr.�r MltSTBEONCOUNCL FNDAB�AI'� � �/� � �3 80DGEID➢tECTOR � � � F[N.ffiMGI.SFRVICFSDRt �� I Zf/�/' � MAYOM(OHASSISTAM) O TOTAL # OF SIGNATIJRE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) AC110N REQUFSTID Approval of a Council Resolution adopting a mar�mum annual tax levy and an adjusted tax rate for 2002. acronsgtvuanoNS ry�ve(n) mxcjcac�U PERSONAL SERViCE CONTRACTS MUST ANS4VER TfIE FOLLONIIVG QUF.STIONS: � u�vm�c coea.+�ss�on crm..soevicecohmass�oH 1. Has this pe�xon/firm ever worked under a wnixac[ fox tbis depaztwenP! �Cmwnsnn'ee _ YES NO _�1 saatF _ 2. Has tUis person/fssm everbeen a city employee? _n�s�crcouxr _ YES NO 5[meNrrs muCt[ CoUNCa oarECrrvt: 3. Dces this person/fumpossess a skill not noxmallypossessed by any cuxrent ciry employee? YES NO (Erzplain all yes answers on separate sheet and attach to green shee4) Wl]IATING PROBLEM.ISSUE.OPPOATUNI'1'Y (Who. w6et. Mrcq Whuc, whY) State law requ:res [he City of Saint Paul to cer[ify by September 15[h a maximum�afi8ual tae levy. This maximum annual ta�c lery cannot be exceeded (except under severe restrictions) when financing the General Fund and General Debt Service budgets. Mn Laws 1999 Chap[er 7A3, article 6, sea 2 also require the City Council to pass a resolurion, by October 20, 7,p01 approving an inerease if the lery results in a higher adjusted ta4 rate for the 2002 Budget. �/ Qa � G h ��' L�'°"�� ` � ADVqNTAGESffAPPAOVED� CY 1� V The Ci[y will be in compliance with State law, DISADVANTAGESiFAYPROV6D None. DLSADVANiAG6 OF NOT APPROVFD' � City cannot levy taxes for 2001 Pay 2002 to finance its budge[. TOTALAMWN'I'OFT6ANSACTION C0.ST/REVENUEBUDGEI'ED(qRQ.EOIJ� YFS NO I"UNDINC SOURCE ACTIVITY NOMBER FINACICIAL INFORF(A]'[ON: (EXPLA W ) , - Flnancial5ervicesOttice (G:4Sf1/JtEmBUDGET123�Yfi2001\ �U[TXLEVY.WK4) 0850-01 S �..x�S�, ' d_ � ...}�,}� Presented by Referred To + ��w"' q � \ � co,�n�it ��ie # e t�9 58� Creen Sheet # Resolution Setting The Maximum Property T� Levy For The City's 2002 Budget 2 WFIEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the 3 on August 14, 2001 the Mayor's Pzoposed 2002 Budget for the City of Saint Paul, with said recon 4 budgets totaling $507,7I0,679, before subtracting out "Transfers To Funds and Transfers Fro 5"Subsequent Year's Debt Service' ; and the net spending plan for the 2002 budgets totaling O5,( 6 netting out adjustments for transfers and 2003 debt service costs; and " and 152 after 7 WI3EREAS, the Mayor recommended, as part of his comprehensive 2002 Finan ' g Plan for the Ciry of Saint 8 Paul, that the 2001 Net Property Tax Levy Payable in 2002 be $62,393,263. e Mayor's recommended Net 9 Tas Levy (before fiscat dispariries distriburion levies) represents no change om the tax levy certified by the City 10 Council for the Adopted 2001 City Budget; and is detailed as follows: 11 12 13 14 15 16 17 18 19 City Levy for City Operations City Levy for Debt Service City Levy for Port Authority TOTAL RECOMNIENDED: PROPOSED NET LEVY FOR CITY BUDGET +2.0% REVENLJE ALL& $42,700,851 18,838,395 �LINQ. MAYOR'S REC. WANCE TAX LEVY $354,017 $43,554,863 (a) 18,838,395 28,431 1.450,000 $882,448 $63,843,263 $63,843,263 (Without Port Authority Levy) $62,393,263 20 Footnote: (a) The CiTy's debt service 1 for general obligation bonds is protected by a 5% Designated Reserve 21 within the General Debt Service Fun per Mn. Statutes 475.61; and flius requires no allowance for anticipatad 22 delinquencies. 23 WHEREAS, this and past Ci Councils have acted responsibly by not increasing property taz�es during the past 24 eight yeazs, with the net le certified for 2001 being $4,343,2841ess than the 19921evy of $66,736,547 for the 25 1993 budget, despite the ct that inflation, as measured by the Consumer Price Index, for the eight year period 26 has been 26 percent; 27 WI�EREAS, the�ayor's Proposed General Fund Budget includes, as a financing source, the use of $7,178,000 28 of General Fund fund balance; and a�_ysr ��.� �� Q ��9�� ° ti 1 WHEREAS, on September 5, 2001, the City's Fiscai Advisor, Springsted Incorporated advised the City Council 2 that the one major means by which the City Council can protect the City's AAA bond rating i�to maintain a 3 heaithy fund balance in its General Fund; and � 4 WI�REAS, the 2002 Minnesofa Legislature enacted significant changes in fhe 5 State Aid fortnulas that distribute Local Government Aid and Homestead Agrici 6 Housing and Redevelopment Authority's and Port Aufhority's budgets; and � `s properiy tax system and Credit Aid to the City's, 7 WI�EREAS, the City Council has not had sufficient time, since receivin e Mayor's budget less than one 8 month ago, to fiilly analyze the potential consequences of changes in th State's local aid formulas, substantial 9 reducrions in projected revenues from tax increment financing distric , greater dependence on the City's £und 10 balance to fmance on-going City operations, and the reductions in ity services proposed by the Mayor; and 11 WHEREAS, while the City Council is deeply committed to t e efficient delivery of essential City services at the 12 lowest possible cost, the Council is not confident that the ximusn taY levy amount proposed by the Mayor will 13 allow the continued delivery of quality City services or, i the altemative, that it will not require an imprudent use 14 of the General Fund fund balance; and 15 WHEREAS, the Ciry's budget and the related tas vy will not be approved until December, by which time fhe 16 necessary analysis of the issues outlined above 1 have been completed; and 17 WHEREAS, the City Council balieves it to 18 the duration of its analysis and deliberatio� fiscally prudent to maintain some budget financing flexibility for .�. 19 WHEREAS, a 3 percent increase in maximum levy would yield $1,915,298 to compensate for any significant 20 shortfalls identified during the Coun 's review of the Mayor's proposed budget while maintaining a total tax 21 levy smaller, in actuai dollars, th at approved for 1993; and 22 �VHEREA5, a 3 percent 23 proposed for other major in the m�imum levy would be significantiy smaller than the increases ons in the Twin Cities region including the City of Minneapolis; and 24 NOW THEREFORE, B IT RESOLVED, that in accordance with Minnesota Statutes, Section 275.065, 25 Subdivision 1, the City ouncil, after considering the Mayor's recommendations, but absent public hearings on 26 the Mayor's budget pr osai, does hereby accept the Budgets for Fiscal Year 2002 as proposed by the 27 Mayor, as constitut' g the Proposed Budgets for the City of Saint Paul; and approves the tax rate increase 28 {as calculated); an 29 2 Councif File M Green Sheet # RESOLUTION OF SAINT PAUL, MINNESOTA Presentetl By: Referred To: Committee: Date oi- qs� 113470 �0 � i z 3 a 5 s � a 9 70 71 iz 13 ia is is n is is zo zt 2z 23 24 25 2s z� 28 2s 30 31 32 33 34 35 36 37 � 39 40 W HEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the Ciry Co cil on August 14, 2001 the Mayo�'s Propased Budget, with said recommended budgets totaling $507,71 Q679 before subtracii out "Transfers To and Transfers From Funds" and ° Subsequent Year Debt"; and totaling $405,099,152 after netting out "Tr sfers To and Transfer From Funtls" antl "Subsequent Year DebY; antl W HEREAS, the Mayor did recommend, as part of ihe comprehensive 2002 Financing Plan for e City of Saint Paul, that the 2001 Net Property Tax Levy Payable in 2002 be $62,393,263. The Mayors recommended t Tax Levy (before fiscal disparities distribution levies) is no change from the tax levy certified for the Adopted 2001 City Budg , and is detailed as follows: BUDGET City �evy for City Operations City Levy for Deb[ Service Levy for Port Authority TOTALRECOMMENDED: NET LEVY Levy for Port Authority Net Levy for City Government W HEREAS, the Laws of 1999, Chapter 243, art. 6, sec. 42, 18. 63,843,263 (1,450,000) 62,393,263 city council approval of any increase in ihe city tax rate for 2002; and NOW, THEREFORE, BE IT RESOLVED, that in acc ance with Minnesota Statutes, Section 275.065 Subdivision 1, the City Council, after considering the Mayor's recommenda ns, but absent public hearings on the Mayor's budget proposal, does hereby accept the Budgets for Fiscal Year 2002 a proposed by the Mayor as constituting the Proposed Budgets for the City of Saint Paul; and approves the tax rate inc ase (as calculated); and be it FURTHER RESOLVED, that in accordance ith the same referenced Statute, the City Council, after considering the Mayor's recommendation for property tau fevies, in ding the request of the Port Authority, does here6y certify to the Ramsey County Auditor that the Proposed Maximum Tar evy for the Ciry of Saint Paul for Taxes Payable in 2002 (for use in calculating the Truth-In-Taxation Notices to be mailed ' November of 2001) as follows: NET LEVY and Port Authority): $63,843,263 Requested by Departmeni of: Office ina pial Servic s Budqet Section By: � Approv�y��x��p�ed by i nce Director: / T. . BY: '� 4�� Adopted by Council: Date Adoption Certified by Council Secretary: By: Approved by Mayor. Date BY: For��by City Attorney: By: ✓�1- C _ — Approve � ayor for Submis ion to Council: B Y� ,�f"�,�� SanfPaulFl�rcia}/g'erv+eesOHice(G:'SIjAHED1BUDGEf11Y31Y1#0011MM%LEYY.WK4) Ofl�1W00 !/ +2.0% DELINQ MAYOft'S REC. ALLOWANCE TAX LEVY 854,017 43,554,868 0 78,838,395 28,431 1,450,000 882,448 63,843,263 Council File # Ol - 9� �(� �Tt TL.! � �/i�i�o�/ i; � . CITY OF RESOLUTION PAU�, M Green Sheet # jI�4 7j7 Presented Referred To Committee Date 1 Resolution Setting The Maairuum Property Tax Levy For The City's 2002 Budget 2 WHEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the City Council 3 on August 14, 2001 the Mayor's Proposed 2002 Budget for the CiTy of Saint Paul, with said recommended 4 budgets totaling $507,710,679, befare subtracting out "Trausfers To Funds and Transfers From Funds° and 5"Subsequent Year's Debt Service' ; and the net spending plan for the 2002 budgets totals $405,099,152 after 6 netting out adjustments for transfers and 2003 debt service costs; and 7 WHEREAS, the Mayor did recommend, as part of his comprehensive 2002 Financing Plan for the City of Saint 8 Paul, that the 2001 Net Property Tas Levy Payable In 2002 be $62,393,263. The Mayor's recommended Net 9 Tax Levy (before fiscal disparities distribution levies) is no change from the tax levied certified by the City 10 Council for the Adopted 2001 City Budget; and is detailed as follows: 11 12 BUDGET +2.0% DELINQ. REVENUE ALLOWANCE MAYOR'S REC. TAX LEVY 13 City Levy far City Operations $42,700,851 $854,017 14 City Levy for Debt Service 18,838,395 (a) 15 City Levy for Port Authority 1 421 569 28.431 16 TOTAL RECOMMENDED: $62,960,815 $882,448 17 18 PROPOSED NET LEVY CERTIFIED: 19 NET LEVY FOR CITY GOVERNMBNT (Without Port AuthoriTy Levy) $43,554,868 18,838,395 1,450,000 $63,843,263 $63,843,263 $62,393,263 20 Footnote: �al The City's debt service levy for eeneral obiigation bonds i�rotected bv a 5% Designated 21 Reserve within the General Debt Service Fund, ner Mn. Statutes 475.61: and thus rec�uires no allowance for 22 anticipated delinquencies. 23 WI3EREAS. this and past Cit�Councils haue acted responsiblv bv not increasin��ro�erty taxes durine the a�st 24 ei�t years. with the net levy certified last veaz beins $4,343,284 less than the 19921ew of $66.736.547 for the 25 1993 bud�et, despite the fact that inflation, as measured by the Consumer Price Index, for the ei�ht yeaz period 26 has been 26%: and 27 WHEREAS, the Mavor's Pro�osed General Fund Budeet has as a financing source, the use of $7,178.000 of 28 fund balance: and on September 5, 2001 the Citv's Fiscal Advisor, Sprinested Incorporated did advise the CitY 29 Council that the one major orofion the Citv Council can alwavs take to protect the Citv's AAA bond rating is to 30 maintain a health�fund balance in its General Fund. 31 WHEREAS, the 2002 Minnesota Le¢isiature enacted significant chanpes in the state's �ro�ertv taac svstem and 1 state aid formulas which distribute Local Government Aid and Homestead Agricultural Credit Aid to the Citv' �� 2 Housing and Redevelopment Authoritv's and Port Authoritv's budgets• and ��! t 3 WAEREAS. the 2002 Citv and HRA bud�et documents which idenrifv bud�et detail where submitted late to 4 the Citv Council and HRA Boazd _ not allowine adequate tixne for the Citv Council to fully understand the 5 impact of all the nronosed changes for the Citv and I�2A budeets• and 7 10 11 12 WFIEREAS. the City Council stron�y desires to have no increase in the Citv's finai tas lew for the 2002 bud�et the Council is not totall�comfortable with the suecifics of the Mavor's �ronosed budgets because of the many tmknowns associated with the proposed bud¢et With limited review of the siumnarv budeets Citv Council members haue raised serious questions regardin� use of the General Fund's fund balances tax increment revenue reductions for both debt service and redevelopment projects, total HACA elimination to the HRA shortaee in PED Aduiinistrative Fund financing use of one time revenue sources for ongoin�operating budgets. and the adequacv of 2001 and 2002 revenaes for the General Debt Service Fund: and 13 WI�REAS, the Laws of 1999, chapter 243, art. 6, sec 2 requires city council approvai of any increase in the 14 city tax rate for 2002; 15 NOW THEREFORE. BE IT RESOLVEA that the City Council rec�uests Mavar Coleman, the Financial 16 Services Office and the Administration to work closelv with the Citv Council in presentingoptions to resolve 17 budget shortaees in a resnonsible way which will protect the inte�ritv of the City's and the HRA's bud�ets; and 18 BE IT FURTHER RESOLVED, in accordance with Minnesota Statutes, Section 275.065, Subdivision 1, the 19 City Council, after considering the Mayor's recommendations, but absence public hearings on the Mayor's 20 budget proposal, does hereby accept the Budgets for Fiscal Year 2002 as proposed by the Mayor, as 21 constituting the Proposed Budgets for the City of Saint Paul; and approves the taac rate increase (as 22 calculated); and 23 BE IT ALSO RESOLVED, That in accordance with the same referenced Statute, the CiTy Council, after 24 considering the Mayor's recommendafion for property tax levies, including the request of the Port Authority, 25 does hereby certify to the Ramsey CounLy Auditor that the Propused Maximum Tax Levy for the City Of 26 Saint Paul for Taxes Payable In 2002 (for use in calcularing the Truth-In-Tasation Notices to be mailed in 27 November of 2001) is: NET CITY LEVI' (Operations, Debt and Port Authoritv): $63,843,263 Requested by Department oL Adopfion Certified by Council Secretary � Appx � � Form Approved by City Attomey � Approved by Mayor for Submission to Council � � S � � t �� Adopted by Council: Date �. �_�� 7d0 � DEPMThffN'IroFFICF/CO[ACIL DATEINRIATED O I �� ExecutiveAdministration-Financial°Services 08-30-01 CaREEN T. NO. 11.3470 �o��oN��o,� o o��o� � ��. PeterHames 266-8796 ;�� Oz crrrerro�r �, crsrr.�r MltSTBEONCOUNCL FNDAB�AI'� � �/� � �3 80DGEID➢tECTOR � � � F[N.ffiMGI.SFRVICFSDRt �� I Zf/�/' � MAYOM(OHASSISTAM) O TOTAL # OF SIGNATIJRE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) AC110N REQUFSTID Approval of a Council Resolution adopting a mar�mum annual tax levy and an adjusted tax rate for 2002. acronsgtvuanoNS ry�ve(n) mxcjcac�U PERSONAL SERViCE CONTRACTS MUST ANS4VER TfIE FOLLONIIVG QUF.STIONS: � u�vm�c coea.+�ss�on crm..soevicecohmass�oH 1. Has this pe�xon/firm ever worked under a wnixac[ fox tbis depaztwenP! �Cmwnsnn'ee _ YES NO _�1 saatF _ 2. Has tUis person/fssm everbeen a city employee? _n�s�crcouxr _ YES NO 5[meNrrs muCt[ CoUNCa oarECrrvt: 3. Dces this person/fumpossess a skill not noxmallypossessed by any cuxrent ciry employee? YES NO (Erzplain all yes answers on separate sheet and attach to green shee4) Wl]IATING PROBLEM.ISSUE.OPPOATUNI'1'Y (Who. w6et. Mrcq Whuc, whY) State law requ:res [he City of Saint Paul to cer[ify by September 15[h a maximum�afi8ual tae levy. This maximum annual ta�c lery cannot be exceeded (except under severe restrictions) when financing the General Fund and General Debt Service budgets. Mn Laws 1999 Chap[er 7A3, article 6, sea 2 also require the City Council to pass a resolurion, by October 20, 7,p01 approving an inerease if the lery results in a higher adjusted ta4 rate for the 2002 Budget. �/ Qa � G h ��' L�'°"�� ` � ADVqNTAGESffAPPAOVED� CY 1� V The Ci[y will be in compliance with State law, DISADVANTAGESiFAYPROV6D None. DLSADVANiAG6 OF NOT APPROVFD' � City cannot levy taxes for 2001 Pay 2002 to finance its budge[. TOTALAMWN'I'OFT6ANSACTION C0.ST/REVENUEBUDGEI'ED(qRQ.EOIJ� YFS NO I"UNDINC SOURCE ACTIVITY NOMBER FINACICIAL INFORF(A]'[ON: (EXPLA W ) , - Flnancial5ervicesOttice (G:4Sf1/JtEmBUDGET123�Yfi2001\ �U[TXLEVY.WK4) 0850-01 S �..x�S�, ' d_ � ...}�,}� Presented by Referred To + ��w"' q � \ � co,�n�it ��ie # e t�9 58� Creen Sheet # Resolution Setting The Maximum Property T� Levy For The City's 2002 Budget 2 WFIEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the 3 on August 14, 2001 the Mayor's Pzoposed 2002 Budget for the City of Saint Paul, with said recon 4 budgets totaling $507,7I0,679, before subtracting out "Transfers To Funds and Transfers Fro 5"Subsequent Year's Debt Service' ; and the net spending plan for the 2002 budgets totaling O5,( 6 netting out adjustments for transfers and 2003 debt service costs; and " and 152 after 7 WI3EREAS, the Mayor recommended, as part of his comprehensive 2002 Finan ' g Plan for the Ciry of Saint 8 Paul, that the 2001 Net Property Tax Levy Payable in 2002 be $62,393,263. e Mayor's recommended Net 9 Tas Levy (before fiscat dispariries distriburion levies) represents no change om the tax levy certified by the City 10 Council for the Adopted 2001 City Budget; and is detailed as follows: 11 12 13 14 15 16 17 18 19 City Levy for City Operations City Levy for Debt Service City Levy for Port Authority TOTAL RECOMNIENDED: PROPOSED NET LEVY FOR CITY BUDGET +2.0% REVENLJE ALL& $42,700,851 18,838,395 �LINQ. MAYOR'S REC. WANCE TAX LEVY $354,017 $43,554,863 (a) 18,838,395 28,431 1.450,000 $882,448 $63,843,263 $63,843,263 (Without Port Authority Levy) $62,393,263 20 Footnote: (a) The CiTy's debt service 1 for general obligation bonds is protected by a 5% Designated Reserve 21 within the General Debt Service Fun per Mn. Statutes 475.61; and flius requires no allowance for anticipatad 22 delinquencies. 23 WHEREAS, this and past Ci Councils have acted responsibly by not increasing property taz�es during the past 24 eight yeazs, with the net le certified for 2001 being $4,343,2841ess than the 19921evy of $66,736,547 for the 25 1993 budget, despite the ct that inflation, as measured by the Consumer Price Index, for the eight year period 26 has been 26 percent; 27 WI�EREAS, the�ayor's Proposed General Fund Budget includes, as a financing source, the use of $7,178,000 28 of General Fund fund balance; and a�_ysr ��.� �� Q ��9�� ° ti 1 WHEREAS, on September 5, 2001, the City's Fiscai Advisor, Springsted Incorporated advised the City Council 2 that the one major means by which the City Council can protect the City's AAA bond rating i�to maintain a 3 heaithy fund balance in its General Fund; and � 4 WI�REAS, the 2002 Minnesofa Legislature enacted significant changes in fhe 5 State Aid fortnulas that distribute Local Government Aid and Homestead Agrici 6 Housing and Redevelopment Authority's and Port Aufhority's budgets; and � `s properiy tax system and Credit Aid to the City's, 7 WI�EREAS, the City Council has not had sufficient time, since receivin e Mayor's budget less than one 8 month ago, to fiilly analyze the potential consequences of changes in th State's local aid formulas, substantial 9 reducrions in projected revenues from tax increment financing distric , greater dependence on the City's £und 10 balance to fmance on-going City operations, and the reductions in ity services proposed by the Mayor; and 11 WHEREAS, while the City Council is deeply committed to t e efficient delivery of essential City services at the 12 lowest possible cost, the Council is not confident that the ximusn taY levy amount proposed by the Mayor will 13 allow the continued delivery of quality City services or, i the altemative, that it will not require an imprudent use 14 of the General Fund fund balance; and 15 WHEREAS, the Ciry's budget and the related tas vy will not be approved until December, by which time fhe 16 necessary analysis of the issues outlined above 1 have been completed; and 17 WHEREAS, the City Council balieves it to 18 the duration of its analysis and deliberatio� fiscally prudent to maintain some budget financing flexibility for .�. 19 WHEREAS, a 3 percent increase in maximum levy would yield $1,915,298 to compensate for any significant 20 shortfalls identified during the Coun 's review of the Mayor's proposed budget while maintaining a total tax 21 levy smaller, in actuai dollars, th at approved for 1993; and 22 �VHEREA5, a 3 percent 23 proposed for other major in the m�imum levy would be significantiy smaller than the increases ons in the Twin Cities region including the City of Minneapolis; and 24 NOW THEREFORE, B IT RESOLVED, that in accordance with Minnesota Statutes, Section 275.065, 25 Subdivision 1, the City ouncil, after considering the Mayor's recommendations, but absent public hearings on 26 the Mayor's budget pr osai, does hereby accept the Budgets for Fiscal Year 2002 as proposed by the 27 Mayor, as constitut' g the Proposed Budgets for the City of Saint Paul; and approves the tax rate increase 28 {as calculated); an 29 2 Councif File M Green Sheet # RESOLUTION OF SAINT PAUL, MINNESOTA Presentetl By: Referred To: Committee: Date oi- qs� 113470 �0 � i z 3 a 5 s � a 9 70 71 iz 13 ia is is n is is zo zt 2z 23 24 25 2s z� 28 2s 30 31 32 33 34 35 36 37 � 39 40 W HEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the Ciry Co cil on August 14, 2001 the Mayo�'s Propased Budget, with said recommended budgets totaling $507,71 Q679 before subtracii out "Transfers To and Transfers From Funds" and ° Subsequent Year Debt"; and totaling $405,099,152 after netting out "Tr sfers To and Transfer From Funtls" antl "Subsequent Year DebY; antl W HEREAS, the Mayor did recommend, as part of ihe comprehensive 2002 Financing Plan for e City of Saint Paul, that the 2001 Net Property Tax Levy Payable in 2002 be $62,393,263. The Mayors recommended t Tax Levy (before fiscal disparities distribution levies) is no change from the tax levy certified for the Adopted 2001 City Budg , and is detailed as follows: BUDGET City �evy for City Operations City Levy for Deb[ Service Levy for Port Authority TOTALRECOMMENDED: NET LEVY Levy for Port Authority Net Levy for City Government W HEREAS, the Laws of 1999, Chapter 243, art. 6, sec. 42, 18. 63,843,263 (1,450,000) 62,393,263 city council approval of any increase in ihe city tax rate for 2002; and NOW, THEREFORE, BE IT RESOLVED, that in acc ance with Minnesota Statutes, Section 275.065 Subdivision 1, the City Council, after considering the Mayor's recommenda ns, but absent public hearings on the Mayor's budget proposal, does hereby accept the Budgets for Fiscal Year 2002 a proposed by the Mayor as constituting the Proposed Budgets for the City of Saint Paul; and approves the tax rate inc ase (as calculated); and be it FURTHER RESOLVED, that in accordance ith the same referenced Statute, the City Council, after considering the Mayor's recommendation for property tau fevies, in ding the request of the Port Authority, does here6y certify to the Ramsey County Auditor that the Proposed Maximum Tar evy for the Ciry of Saint Paul for Taxes Payable in 2002 (for use in calculating the Truth-In-Taxation Notices to be mailed ' November of 2001) as follows: NET LEVY and Port Authority): $63,843,263 Requested by Departmeni of: Office ina pial Servic s Budqet Section By: � Approv�y��x��p�ed by i nce Director: / T. . BY: '� 4�� Adopted by Council: Date Adoption Certified by Council Secretary: By: Approved by Mayor. Date BY: For��by City Attorney: By: ✓�1- C _ — Approve � ayor for Submis ion to Council: B Y� ,�f"�,�� SanfPaulFl�rcia}/g'erv+eesOHice(G:'SIjAHED1BUDGEf11Y31Y1#0011MM%LEYY.WK4) Ofl�1W00 !/ +2.0% DELINQ MAYOft'S REC. ALLOWANCE TAX LEVY 854,017 43,554,868 0 78,838,395 28,431 1,450,000 882,448 63,843,263 Council File # Ol - 9� �(� �Tt TL.! � �/i�i�o�/ i; � . CITY OF RESOLUTION PAU�, M Green Sheet # jI�4 7j7 Presented Referred To Committee Date 1 Resolution Setting The Maairuum Property Tax Levy For The City's 2002 Budget 2 WHEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the City Council 3 on August 14, 2001 the Mayor's Proposed 2002 Budget for the CiTy of Saint Paul, with said recommended 4 budgets totaling $507,710,679, befare subtracting out "Trausfers To Funds and Transfers From Funds° and 5"Subsequent Year's Debt Service' ; and the net spending plan for the 2002 budgets totals $405,099,152 after 6 netting out adjustments for transfers and 2003 debt service costs; and 7 WHEREAS, the Mayor did recommend, as part of his comprehensive 2002 Financing Plan for the City of Saint 8 Paul, that the 2001 Net Property Tas Levy Payable In 2002 be $62,393,263. The Mayor's recommended Net 9 Tax Levy (before fiscal disparities distribution levies) is no change from the tax levied certified by the City 10 Council for the Adopted 2001 City Budget; and is detailed as follows: 11 12 BUDGET +2.0% DELINQ. REVENUE ALLOWANCE MAYOR'S REC. TAX LEVY 13 City Levy far City Operations $42,700,851 $854,017 14 City Levy for Debt Service 18,838,395 (a) 15 City Levy for Port Authority 1 421 569 28.431 16 TOTAL RECOMMENDED: $62,960,815 $882,448 17 18 PROPOSED NET LEVY CERTIFIED: 19 NET LEVY FOR CITY GOVERNMBNT (Without Port AuthoriTy Levy) $43,554,868 18,838,395 1,450,000 $63,843,263 $63,843,263 $62,393,263 20 Footnote: �al The City's debt service levy for eeneral obiigation bonds i�rotected bv a 5% Designated 21 Reserve within the General Debt Service Fund, ner Mn. Statutes 475.61: and thus rec�uires no allowance for 22 anticipated delinquencies. 23 WI3EREAS. this and past Cit�Councils haue acted responsiblv bv not increasin��ro�erty taxes durine the a�st 24 ei�t years. with the net levy certified last veaz beins $4,343,284 less than the 19921ew of $66.736.547 for the 25 1993 bud�et, despite the fact that inflation, as measured by the Consumer Price Index, for the ei�ht yeaz period 26 has been 26%: and 27 WHEREAS, the Mavor's Pro�osed General Fund Budeet has as a financing source, the use of $7,178.000 of 28 fund balance: and on September 5, 2001 the Citv's Fiscal Advisor, Sprinested Incorporated did advise the CitY 29 Council that the one major orofion the Citv Council can alwavs take to protect the Citv's AAA bond rating is to 30 maintain a health�fund balance in its General Fund. 31 WHEREAS, the 2002 Minnesota Le¢isiature enacted significant chanpes in the state's �ro�ertv taac svstem and 1 state aid formulas which distribute Local Government Aid and Homestead Agricultural Credit Aid to the Citv' �� 2 Housing and Redevelopment Authoritv's and Port Authoritv's budgets• and ��! t 3 WAEREAS. the 2002 Citv and HRA bud�et documents which idenrifv bud�et detail where submitted late to 4 the Citv Council and HRA Boazd _ not allowine adequate tixne for the Citv Council to fully understand the 5 impact of all the nronosed changes for the Citv and I�2A budeets• and 7 10 11 12 WFIEREAS. the City Council stron�y desires to have no increase in the Citv's finai tas lew for the 2002 bud�et the Council is not totall�comfortable with the suecifics of the Mavor's �ronosed budgets because of the many tmknowns associated with the proposed bud¢et With limited review of the siumnarv budeets Citv Council members haue raised serious questions regardin� use of the General Fund's fund balances tax increment revenue reductions for both debt service and redevelopment projects, total HACA elimination to the HRA shortaee in PED Aduiinistrative Fund financing use of one time revenue sources for ongoin�operating budgets. and the adequacv of 2001 and 2002 revenaes for the General Debt Service Fund: and 13 WI�REAS, the Laws of 1999, chapter 243, art. 6, sec 2 requires city council approvai of any increase in the 14 city tax rate for 2002; 15 NOW THEREFORE. BE IT RESOLVEA that the City Council rec�uests Mavar Coleman, the Financial 16 Services Office and the Administration to work closelv with the Citv Council in presentingoptions to resolve 17 budget shortaees in a resnonsible way which will protect the inte�ritv of the City's and the HRA's bud�ets; and 18 BE IT FURTHER RESOLVED, in accordance with Minnesota Statutes, Section 275.065, Subdivision 1, the 19 City Council, after considering the Mayor's recommendations, but absence public hearings on the Mayor's 20 budget proposal, does hereby accept the Budgets for Fiscal Year 2002 as proposed by the Mayor, as 21 constituting the Proposed Budgets for the City of Saint Paul; and approves the taac rate increase (as 22 calculated); and 23 BE IT ALSO RESOLVED, That in accordance with the same referenced Statute, the CiTy Council, after 24 considering the Mayor's recommendafion for property tax levies, including the request of the Port Authority, 25 does hereby certify to the Ramsey CounLy Auditor that the Propused Maximum Tax Levy for the City Of 26 Saint Paul for Taxes Payable In 2002 (for use in calcularing the Truth-In-Tasation Notices to be mailed in 27 November of 2001) is: NET CITY LEVI' (Operations, Debt and Port Authoritv): $63,843,263 Requested by Department oL Adopfion Certified by Council Secretary � Appx � � Form Approved by City Attomey � Approved by Mayor for Submission to Council � � S � � t �� Adopted by Council: Date �. �_�� 7d0 � DEPMThffN'IroFFICF/CO[ACIL DATEINRIATED O I �� ExecutiveAdministration-Financial°Services 08-30-01 CaREEN T. NO. 11.3470 �o��oN��o,� o o��o� � ��. PeterHames 266-8796 ;�� Oz crrrerro�r �, crsrr.�r MltSTBEONCOUNCL FNDAB�AI'� � �/� � �3 80DGEID➢tECTOR � � � F[N.ffiMGI.SFRVICFSDRt �� I Zf/�/' � MAYOM(OHASSISTAM) O TOTAL # OF SIGNATIJRE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) AC110N REQUFSTID Approval of a Council Resolution adopting a mar�mum annual tax levy and an adjusted tax rate for 2002. acronsgtvuanoNS ry�ve(n) mxcjcac�U PERSONAL SERViCE CONTRACTS MUST ANS4VER TfIE FOLLONIIVG QUF.STIONS: � u�vm�c coea.+�ss�on crm..soevicecohmass�oH 1. Has this pe�xon/firm ever worked under a wnixac[ fox tbis depaztwenP! �Cmwnsnn'ee _ YES NO _�1 saatF _ 2. Has tUis person/fssm everbeen a city employee? _n�s�crcouxr _ YES NO 5[meNrrs muCt[ CoUNCa oarECrrvt: 3. Dces this person/fumpossess a skill not noxmallypossessed by any cuxrent ciry employee? YES NO (Erzplain all yes answers on separate sheet and attach to green shee4) Wl]IATING PROBLEM.ISSUE.OPPOATUNI'1'Y (Who. w6et. Mrcq Whuc, whY) State law requ:res [he City of Saint Paul to cer[ify by September 15[h a maximum�afi8ual tae levy. This maximum annual ta�c lery cannot be exceeded (except under severe restrictions) when financing the General Fund and General Debt Service budgets. Mn Laws 1999 Chap[er 7A3, article 6, sea 2 also require the City Council to pass a resolurion, by October 20, 7,p01 approving an inerease if the lery results in a higher adjusted ta4 rate for the 2002 Budget. �/ Qa � G h ��' L�'°"�� ` � ADVqNTAGESffAPPAOVED� CY 1� V The Ci[y will be in compliance with State law, DISADVANTAGESiFAYPROV6D None. DLSADVANiAG6 OF NOT APPROVFD' � City cannot levy taxes for 2001 Pay 2002 to finance its budge[. TOTALAMWN'I'OFT6ANSACTION C0.ST/REVENUEBUDGEI'ED(qRQ.EOIJ� YFS NO I"UNDINC SOURCE ACTIVITY NOMBER FINACICIAL INFORF(A]'[ON: (EXPLA W ) , - Flnancial5ervicesOttice (G:4Sf1/JtEmBUDGET123�Yfi2001\ �U[TXLEVY.WK4) 0850-01 S �..x�S�, ' d_ � ...}�,}� Presented by Referred To + ��w"' q � \ � co,�n�it ��ie # e t�9 58� Creen Sheet # Resolution Setting The Maximum Property T� Levy For The City's 2002 Budget 2 WFIEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the 3 on August 14, 2001 the Mayor's Pzoposed 2002 Budget for the City of Saint Paul, with said recon 4 budgets totaling $507,7I0,679, before subtracting out "Transfers To Funds and Transfers Fro 5"Subsequent Year's Debt Service' ; and the net spending plan for the 2002 budgets totaling O5,( 6 netting out adjustments for transfers and 2003 debt service costs; and " and 152 after 7 WI3EREAS, the Mayor recommended, as part of his comprehensive 2002 Finan ' g Plan for the Ciry of Saint 8 Paul, that the 2001 Net Property Tax Levy Payable in 2002 be $62,393,263. e Mayor's recommended Net 9 Tas Levy (before fiscat dispariries distriburion levies) represents no change om the tax levy certified by the City 10 Council for the Adopted 2001 City Budget; and is detailed as follows: 11 12 13 14 15 16 17 18 19 City Levy for City Operations City Levy for Debt Service City Levy for Port Authority TOTAL RECOMNIENDED: PROPOSED NET LEVY FOR CITY BUDGET +2.0% REVENLJE ALL& $42,700,851 18,838,395 �LINQ. MAYOR'S REC. WANCE TAX LEVY $354,017 $43,554,863 (a) 18,838,395 28,431 1.450,000 $882,448 $63,843,263 $63,843,263 (Without Port Authority Levy) $62,393,263 20 Footnote: (a) The CiTy's debt service 1 for general obligation bonds is protected by a 5% Designated Reserve 21 within the General Debt Service Fun per Mn. Statutes 475.61; and flius requires no allowance for anticipatad 22 delinquencies. 23 WHEREAS, this and past Ci Councils have acted responsibly by not increasing property taz�es during the past 24 eight yeazs, with the net le certified for 2001 being $4,343,2841ess than the 19921evy of $66,736,547 for the 25 1993 budget, despite the ct that inflation, as measured by the Consumer Price Index, for the eight year period 26 has been 26 percent; 27 WI�EREAS, the�ayor's Proposed General Fund Budget includes, as a financing source, the use of $7,178,000 28 of General Fund fund balance; and a�_ysr ��.� �� Q ��9�� ° ti 1 WHEREAS, on September 5, 2001, the City's Fiscai Advisor, Springsted Incorporated advised the City Council 2 that the one major means by which the City Council can protect the City's AAA bond rating i�to maintain a 3 heaithy fund balance in its General Fund; and � 4 WI�REAS, the 2002 Minnesofa Legislature enacted significant changes in fhe 5 State Aid fortnulas that distribute Local Government Aid and Homestead Agrici 6 Housing and Redevelopment Authority's and Port Aufhority's budgets; and � `s properiy tax system and Credit Aid to the City's, 7 WI�EREAS, the City Council has not had sufficient time, since receivin e Mayor's budget less than one 8 month ago, to fiilly analyze the potential consequences of changes in th State's local aid formulas, substantial 9 reducrions in projected revenues from tax increment financing distric , greater dependence on the City's £und 10 balance to fmance on-going City operations, and the reductions in ity services proposed by the Mayor; and 11 WHEREAS, while the City Council is deeply committed to t e efficient delivery of essential City services at the 12 lowest possible cost, the Council is not confident that the ximusn taY levy amount proposed by the Mayor will 13 allow the continued delivery of quality City services or, i the altemative, that it will not require an imprudent use 14 of the General Fund fund balance; and 15 WHEREAS, the Ciry's budget and the related tas vy will not be approved until December, by which time fhe 16 necessary analysis of the issues outlined above 1 have been completed; and 17 WHEREAS, the City Council balieves it to 18 the duration of its analysis and deliberatio� fiscally prudent to maintain some budget financing flexibility for .�. 19 WHEREAS, a 3 percent increase in maximum levy would yield $1,915,298 to compensate for any significant 20 shortfalls identified during the Coun 's review of the Mayor's proposed budget while maintaining a total tax 21 levy smaller, in actuai dollars, th at approved for 1993; and 22 �VHEREA5, a 3 percent 23 proposed for other major in the m�imum levy would be significantiy smaller than the increases ons in the Twin Cities region including the City of Minneapolis; and 24 NOW THEREFORE, B IT RESOLVED, that in accordance with Minnesota Statutes, Section 275.065, 25 Subdivision 1, the City ouncil, after considering the Mayor's recommendations, but absent public hearings on 26 the Mayor's budget pr osai, does hereby accept the Budgets for Fiscal Year 2002 as proposed by the 27 Mayor, as constitut' g the Proposed Budgets for the City of Saint Paul; and approves the tax rate increase 28 {as calculated); an 29 2 Councif File M Green Sheet # RESOLUTION OF SAINT PAUL, MINNESOTA Presentetl By: Referred To: Committee: Date oi- qs� 113470 �0 � i z 3 a 5 s � a 9 70 71 iz 13 ia is is n is is zo zt 2z 23 24 25 2s z� 28 2s 30 31 32 33 34 35 36 37 � 39 40 W HEREAS, in accordance with Section 10 of the City Charter, Mayor Coleman presented to the Ciry Co cil on August 14, 2001 the Mayo�'s Propased Budget, with said recommended budgets totaling $507,71 Q679 before subtracii out "Transfers To and Transfers From Funds" and ° Subsequent Year Debt"; and totaling $405,099,152 after netting out "Tr sfers To and Transfer From Funtls" antl "Subsequent Year DebY; antl W HEREAS, the Mayor did recommend, as part of ihe comprehensive 2002 Financing Plan for e City of Saint Paul, that the 2001 Net Property Tax Levy Payable in 2002 be $62,393,263. The Mayors recommended t Tax Levy (before fiscal disparities distribution levies) is no change from the tax levy certified for the Adopted 2001 City Budg , and is detailed as follows: BUDGET City �evy for City Operations City Levy for Deb[ Service Levy for Port Authority TOTALRECOMMENDED: NET LEVY Levy for Port Authority Net Levy for City Government W HEREAS, the Laws of 1999, Chapter 243, art. 6, sec. 42, 18. 63,843,263 (1,450,000) 62,393,263 city council approval of any increase in ihe city tax rate for 2002; and NOW, THEREFORE, BE IT RESOLVED, that in acc ance with Minnesota Statutes, Section 275.065 Subdivision 1, the City Council, after considering the Mayor's recommenda ns, but absent public hearings on the Mayor's budget proposal, does hereby accept the Budgets for Fiscal Year 2002 a proposed by the Mayor as constituting the Proposed Budgets for the City of Saint Paul; and approves the tax rate inc ase (as calculated); and be it FURTHER RESOLVED, that in accordance ith the same referenced Statute, the City Council, after considering the Mayor's recommendation for property tau fevies, in ding the request of the Port Authority, does here6y certify to the Ramsey County Auditor that the Proposed Maximum Tar evy for the Ciry of Saint Paul for Taxes Payable in 2002 (for use in calculating the Truth-In-Taxation Notices to be mailed ' November of 2001) as follows: NET LEVY and Port Authority): $63,843,263 Requested by Departmeni of: Office ina pial Servic s Budqet Section By: � Approv�y��x��p�ed by i nce Director: / T. . BY: '� 4�� Adopted by Council: Date Adoption Certified by Council Secretary: By: Approved by Mayor. Date BY: For��by City Attorney: By: ✓�1- C _ — Approve � ayor for Submis ion to Council: B Y� ,�f"�,�� SanfPaulFl�rcia}/g'erv+eesOHice(G:'SIjAHED1BUDGEf11Y31Y1#0011MM%LEYY.WK4) Ofl�1W00 !/ +2.0% DELINQ MAYOft'S REC. ALLOWANCE TAX LEVY 854,017 43,554,868 0 78,838,395 28,431 1,450,000 882,448 63,843,263