2019 Operating Budget City of Racine, Wisconsin 1 Property Tax - PowerPoint PPT Presentation

2019 Operating Budget City of Racine, Wisconsin 1

Property Tax Levy  Total proposed Property tax levy for 2019: $54,322,250  2018 Budgeted levy: $54,322,250  Increase: $0  Increase as Percent of Total: 0.00%  1.06% Increase in Operational Levy  2.25% Decrease in Debt Service Levy 2

Property Tax Rate  2019 Estimated Tax Rate per $1,000: $16.07  2018 Tax Rate per $1,000: $16.59  Estimated Tax Rate Decrease per $1,000: $0.52  Estimated Percentage Tax Rate Decrease: 3.13% 3

Tax levy allocation $ Increase % Increase 2018 2019 (Decrease) (Decrease) General Fund $ 32,204,966 $ 32,205,500 $ 534 0.00% Transit 1,300,000 1,276,319 (23,681) -1.82% Civic Center 294,000 296,000 2,000 0.68% Debt Service 17,404,776 17,013,053 (391,723) -2.25% Library 2,239,208 2,465,271 226,063 10.10% Recycling 285,932 314,725 28,793 10.07% Municipal Court 92,468 140,165 47,697 51.58% Cemetery 230,000 222,849 (7,151) -3.11% Health Lab 270,900 388,368 117,468 43.36% Total $54,322,250 $54,322,250 $0 0.00% 4

General Fund Revenues 2019: $82,032,499 2018: $81,583,209 2017: $81,161,548 2019 Increase: $449,290 2019 Percent: 0.55% General Fund Tax Levy: $32,205,500 Public Safety Expenditures: $46,763,751 Public safety expenditures as percent of general fund tax levy: 145.2% (2018: 141.6%) Tax levy percent of total revenues: 39.26% (2018: 39.70%) Non property tax revenue percent: 60.74% (2018: 60.30%) 5

General Fund Revenues by Type Transfers Miscellaneous Revenues Other Financing Sources 4% 1% 2% Charges for Services Fund Balance Applied 5% 3% Fines and Forfeitures 2% Property Taxes 39% Licenses and Permits 3% Intergovernmental Revenues 41% Other Taxes 2% 6

General Fund Expenditures 2019 $82,032,499 2018 $81,583,209 2017 $81,161,548 2019 Increase: $449,290 2019 % Increase: 0.55%  In last 15 years general fund expenditures have gone up 8.9% compared to the CPI of: 36.9% for an equal time period.  Conclusion: In real terms (adjusted for inflation) general fund expenditures have gone DOWN by 28.0% 7

General Fund Expenditures by Object Inter-Departmental Capital Outlay 8% 0% Operating Expenditures 13% Salaries & Fringes 79% 8

Budget Changes Salary and Benefit Estimated Changes: 1. Wage step increases  Approximately $400,000 2. CPI wage increase (2.25%)  Approximately $600,000 3. Police and Fire estimated contract wage increases applied  Approximately $500,000 4. New Positions  Approximately $500,000 9

Budget Changes Salary and Benefit Changes continued:  City Development:  2 long seasonal positions for increased code enforcement: $32,000 increase  1 full time property maintenance inspector for increased code enforcement: $82,000  City Assessor:  1 full time assessment clerk position: $79,000  City Assessor position reclassified to administrative manager position: $9,000  Human Resources:  Human Resource manager position reclassified to administrative manager position $20,000 10

Budget Changes Salary and Benefit Changes continued:  Information Systems:  1 Database technician position increased to full time $75,000  Fire Department:  Reclassification of an existing position to create a Division Chief of Professional Standards position: $30,000  Finance Department:  City Clerk position grade reclassification: $10,000  City Administration:  Communication Coordinator Position moved from outside consultant to City employee : $101,000  Strategic Initiatives and Community Partnerships Officer: $120,000 11

Budget Changes Significant Operating Expenditure Changes: Contingency budget added: $250,000 1. Retiree Health Increased by $400,000 2. 3. Workers Compensation down by: $420,000 Remaining Engineering salaries and Professional Services allocated to 4. various proper capital project funding sources: $585,000:$ Storm Water related Forestry expenditures allocated to the Storm 5. Water Utility (85% of total): $930,000 Economic Development Services (RCEDC contract) re-allocated to 6. Intergovernmental Revenue Sharing: $82,400 12

Budget Changes Revenue Changes: $150,000 from Mt. Pleasant (Public Safety) 1. 2. $102,000 additional transit aides from Mt. Pleasant 3. Municipal Court Fines trending lower 4. Sale of Recyclables down by $75,000 (21%) 13

Positions by Year 825 800 Foxconn Announcement 775 750 822 817 805 793 792 787 783 782 725 764 735 731 700 727 724 722 718 718 675 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 14

Reserves $2.0 Million of Wage Provision Reserves Applied  $2,900,000 of assigned wage provision reserves remain $400,000 of Unassigned Reserves Applied for losses in revenues and non wage cost increases  $20,500,000 of unassigned reserves remain Health Insurance Fund Reserves Applied: $1.7 Million  $3,184,000 of unassigned reserves remain 15

General Fund Budgeted Use of Reserves Wage Provision Operations $2,800,000 $- $- $- $- $2,300,000 $- $- $1,800,000 $1,700,000 $2,700,000 $2,700,000 $2,700,000 $2,625,130 $2,000,000 $1,300,000 $- $2,200,000 $2,000,000 $800,000 $1,305,000 $- $- $800,000 $750,000 $750,000 $400,000 $300,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 16

Health Reserves - Budgeted Use $2,300,000 $2,049,000 $2,031,480 $2,050,000 $1,800,000 $1,700,000 $1,550,000 $1,300,000 $1,193,551 $1,120,231 $1,100,000 $1,050,000 $936,833 $831,642 $800,000 $700,000 $700,000 $550,000 $300,000 $50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 17

Fees Storm Water Utility Fee:  To Be billed quarterly on the water bill  $30.94/quarter  Equates to a quarterly increase of $5.38 or $1.80 a month  Migration to fee-basis for equity (Utility as service)  Storm Water related forestry operating costs are included in the storm water utility  A portion of curb and gutter operating costs included in the storm water utility 18

Fees Storm Water Utility Recycling Sanitary Sewer Totals 2019 2019 2019 2019 * Total Rate: $123.77 * Total Rate: $29.62 * Total Rate: $63.00 * Total Rate: $216.39 * Base Rate: $6.98 * ERU Rate: $116.79 2018 2018 2018 2018 * Total Rate: $102.26 * Total Rate: $29.62 * Total Rate: $63.00 * Total Rate: $194.88 * Base Rate: $5.87 * ERU Rate: $96.39 Increase Increase Increase Increase * Total Rate: $21.51 * Total Rate: $0.00 * Total Rate: $0.00 * Total Rate: $21.51 * Base Rate: $1.11 * ERU Rate: $20.40 19

Fees Recycling Fee: $29.32  No Increase Sanitary Sewer Fee: $63.00  No Increase Other User Fees:  A few other departmental user fees have seen minor adjustments and/or been packaged to be more customer friendly 20

Tax and Fee Impact on $100,000 Homeowner $2,000 $1,885.30 $1,875.09 $1,869.61 $1,900 $1,809.61 $1,800 $1,682.10 $1,700 Cost per $100,000 home $1,600 $1,546.59 $1,500 $1,395.59 $1,400 $1,290.25 $1,300 $1,200 $1,100 $1,000 2012 2013 2014 2015 2016 2017 2018 2019 Budget Year 21

Cumulative Tax and Fee Analysis Total Cost Percentage Budget Tax Total per $100,000 per $100,000 Increase Year Rate Storm Recycling Sanitary Fees Tax Total Cost (Decrease) 2012 11.46 77.25 11.00 56.00 144.25 1,146.00 $ 1,290.25 2013 12.36 79.87 21.72 58.00 159.59 1,236.00 $ 1,395.59 8.16% 2014 13.87 79.87 21.72 58.00 159.59 1,387.00 $ 1,546.59 10.82% 2015 15.10 87.38 26.72 58.00 172.10 1,510.00 $ 1,682.10 8.76% 2016 16.26 93.89 26.72 63.00 183.61 1,626.00 $ 1,809.61 7.58% 2017 16.86 93.89 26.72 63.00 183.61 1,686.00 $ 1,869.61 3.32% 2018 16.93 99.98 29.32 63.00 192.30 1,693.00 $ 1,885.30 0.84% 2019 16.59 123.77 29.32 63.00 216.09 1,659.00 $ 1,875.09 -0.54% 22

What ’ s next  October 18th-Capital Plan-Intergovernmental Revenue Fund-Questions  October 22th-Operating Budget-Questions  Public Safety  Public Works  Park and Recreation  November 8th-Public Hearing-potentially more questions  November 12th-Revisions  November 13 th -Adoption 23