Adopt Resolution #18-194 Adopting Proposed 2019 Payable Tax Levies (General, EDA and Debt Service) and Schedule Public Hearing for December 11, 2018

Purpose:  Each taxing authority must certify its proposed preliminary property tax levies for payable 2019 to the County Auditor by September  28, 2018. Background:  The levy as presented reflects the consensus of the majority of the City Council at the final preliminary budget/levy work session on August 28, 2018.  Proposed 2019 Payable Tax Levy: Proposed Tax Levies: General Fund Levy:                                                                                                        $10,047,646 EDA Levy (Included in General Levy)                                                                                 101,663 (EDA presented 8-9-18) Debt Service Levy – CIP Bond-(Fire Station #2) (Being Requested)                                  205,678 Debt Service Levy – CIP Bond(Municipal Center) (Being Requested)                            1,136,613 Debt Service Levy - 2013 Equipment Certificate                                                                   77,267 Debt Service Levy - 2014 Equipment Certificates                                                                100,853  Reconstruction Debt - Andrie & Overlays (Being Requested)                                               77,509 Reconstruction Debt - Sunwood Drive & Alpine (Being Requested)                                    46,597 Reconstruction Debt - River's Bend & Stanhope Terrace (Being Requested)                       55,600 Reconstruction Debt - Garnet Street & Overlays (Being Requested)                                    57,124      TOTAL PROPOSED LEVY – 2017                                                                        $11,906,550 The attached resolution, as it is presented, reflects a levy of $11,906,550. The proposed levy for 2019 reflects a $532,155 (4.68% increase) over the adopted levy in 2018 of $11,374,395. The levy increase of $532,155 is mostly attributed to three areas: Personnel Funding - $587,086 increase over 2018 adopted budget.  The increase is attributed to a 2.75% cost of living (COLA) adjustment for approximately 85 employees; step increases;  double-digit health insurance increases; single dental for all full-time employees;  increase in hours for Engineering Administrative Assistant from 20 hours to 40 hours/week; New Part-Time Recreation Specialist (offset with elimination of 2 interns),  and four new Full-Time positions:  Firefighter-Inspector, 2 Patrol Officers (one starting Oct. 1, 2019) and Public Works Maintenance Worker (March 1, 2019 start). Supplies:  $63,000 of levy increase.  Attributed to uniforms for two new patrol officers and increase in road salt Debt Service Levy - Decrease of $117,931.  50% of road debt will be one-time funded from the Public Improvment Revolving Fund (PIR) and Fire Station #2 debt is being reduced by $75,000 from remaining Fire Station #1 debt service funds. As noted, the EDA levy is included in the overall levy amount of $11,906,550. While the proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process.   The proposed levy must be certified to Anoka County by Friday, September 28, 2018. Therefore, the Council must make a decision this week in regard to the amount of this levy. Schedule Budget Public Hearing Date: The Truth-in-Taxation (TNT) law was changed in 2009. The City is no longer required to hold a special TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing, the City is required to hold a regularly scheduled meeting at which the budget and levy will be discussed. The City may adopt the budget and levy immediately following. The public meeting must be held between November 25 and December 28 and held after 6:00 P.M. Staff is recommending that the public meeting be held at its regularly scheduled meeting of December 11, 2018, with adoption of the 2019 General Fund Budget and levy to immediately follow. The public meeting date must be certified to Anoka County by Friday, September 28, 2018; therefore, the City Council must make a decision as to the date selected for the 2019 payable public meeting at tonight's meeting.

At its worksession of August 28, 2018 the City Council created an Option 3A out of the five options that were presented.  Option 3A would keep the requested levy amount at $11,906,550, but also add back a new October 1, 2019 hire for a Patrol Officer (two new Patrol Officers are now included in budget/levy request).  The additional funding (approximately $30,000) for this October 1, 2019 Patrol Officer was to be offset by $30,000 in line-item budget reductions.
  The $30,000 line item reductions are as follows:
                            ($18,000) related to Taser Replacements.  Original budget requests was $24,000.  Tasers will be purchased  over a period of 4 years instead of 1 year.
                            ($9,000) related to health insurance.  A recent hire was budgetd for family insurance, but waived coverage
                            ($3,000) Police Over-time 
                          ($30,000)  Total
 

As this is the adoption of a preliminary levy that can be amended (only lowered) no alternatives are being listed.  Budget work sessions until final adoption in December will allow for alternations if needed

No funding required.

Based on the consensus of the City Council at its work session of August 28, 2018, recommend authorization of preliminary levy in the amount of $11,906,550 with the possibility of reduction prior to City Council adoption of the final levy on December 11, 2018 and to schedule the city of Ramsey's budget/levy public meeting on Tuesday, December 11, 2018 at 7:00 P.M.

Motion to recommend Council adopt Resolution #18-194 Approving the Proposed 2018, Payable 2019 Tax Levy and to schedule the city of Ramsey's budget/levy public meeting on Tuesday, December 11, 2018 at 7:00 P.M.