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6.0. SR 09-14-1998-'ity of River MEMORANDUM TO: FROM: DATE: SUBJECT: Item # 6_. Mayor and City Council Pat Klaers, CityAd~~'s~trator. September 9, 1998 77~ 1999 Budget A special City Council budget meeting is to be held on Thursday, September 10, 1998. This meeting is necessary in response to the county providing the city information on its Net Tax Capacity (NTC) change for 1999. Based on the severity of the budget gap, due, in part, to our limited ability to increase tax revenues without significantly impacting the city tax rate, staff felt that a work session prior to the September 14th Council meeting was imperative. Limited information on the budget is contained in this memo. It is anticipated that most of the budget issues can be addressed during the September 10th meeting and that direction can be given to staff so that a tax levy resolution can be prepared and handed out at the September 14th meeting. Going into the September l0th work session, the budget gap has been reduced through raising the revenue projections, making expenditure cuts, and shifting some expenditures to reserves or financing the purchases in 1998. The gap has gone from $479,150 to $143,900. However, this gap is subject to change based on some Council and staff desires to include some expenses that were cut and to also make some further adjustments in either revenues or expenditures. Without knowledge of what is going to be taking place during the September l0th meeting, staff is recommending that the City Council levy to the amount identified during the August 31st work session plus an additional $150,000 in taxes for the general fund. This amount is still below the levy limit set by state law. This will be the proposed maximum levy and this number cannot be increased. However, the Council can and has in the past decreased this amount at the December public hearings prior to the adoption of the budget and tax levy. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 Memo/1999 Budget September 14, 1998 Page 2 On September 14th the City Council needs to: 2. 3. 4. approve the EDA tax levy resolution (attached) approve the HRA tax levy resolution (attached) approve a motion adjusting the debt levies (attached) approve the city tax levy resolution (to be handed out at the meeting) approve a motion calling for the city Truth in Taxation public hearing on the tax levy and budget for December 7, 1998, 6:00 p.m., with a continuation of December 14, 1998, 6:30 p.m. s:\council\ 1999bud.doc RESOLUTION 98- A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION APPROVING THE 1999 TAX LEVY FOR ECONOMIC DEVELOPMENT PURPOSES FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City Council of the City of Elk River has received a request from the Economic Development Authority to levy a tax for the benefit of the Authority in the amount of .01813% of taxable market value of taxable property in the City for the year of 1999; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River as follows: The City Council of the City of Elk River proposes that a tax in the amount of .01813% of the taxable market value in the City less Homestead and Agricultural Credit Aids of $12,069.00 be levied in the year 1999 for the benefit of the City of Elk River Economic Development Authority to be used for Economic Development Authority purposes as provided under Minnesota Statute 469.090 et.seq. Passed and adopted by the City Council of the City of Elk River, Minnesota this 14tl~ day of September, 1998. ATTEST: Henry A. Duitsman, Mayor Sandra A. Peine, City Clerk \\elkriverXsys\shrdoc\document\resoluti\98edalev.doc RESOLUTION 98- A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION APPROVING THE HOUSING AND REDEVELOPMENT AUTHORITY 1999 TAX LEVY WHEREAS, the Housing and Redevelopment Authority in and for the City of Elk River has requested that the City authorize a levy of .0131% of the taxable market value of the City for various redevelopment activities; and, WHEREAS, the City Council of the City of Elk River has consented to this levy. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that the Housing and Redevelopment Authority in and for the City of Elk River certify a levy of .0131% of the taxable market less Homestead and Agricultural Aids of $5,611.00 to the County Auditor. Passed and adopted by the City Council of the City of Elk River, Minnesota this 14th day of September, 1998. ATTEST: Henry A. Duitsman, Mayor Sandra A. Peine, City Clerk f:\shrdocXdocument\resoluti\98hralev.doc PAYABLE 1998 DEBT SERVICE LEVY ADJUSTMENTS For Taxes Payable in 1999 Bond Fund G.O. Improvement Bonds Sedes 1992A 1993B Permanent Improvement Revolving 1997 Equipment Certificate Scheduled Levy $ 255,967 28,829 132,438 Adjusted Levy 32,673 Reason for Adjustment Sufficient cash available from Special Assessments. Sufficient cash available from Special Assessments. Reduced by amount of fire pumper payment from Equipment Reserves (1997 & 1998) 1998 : ~ Sherburne County AUDITOR RAMONA DOEBLER August 28, 1998 To: From: Re: City Clerks and Administrators Ramona Doebler Dates for Hearing and Continuation of Hearing Proposed 1999 Tax Levies Preliminary 1999 Tax Values Enclosed is a listing of the dates and locations where the School Districts will be holding the Truth in Taxation Hear- ings and any necessary continuations. The County hearing and continuation dates are set by statute for December 3 and December 15, 1998. Please set your hearing and continuation for any other dates between November 29 and December 20, except for the dates set by the School District in your City, and certify them to the County Auditor by September 15 along with your Proposed 1999 Property Tax Levy. - If you have any questions, please call and we will try to answer them. The Department of Revenue recently supplied our programmers with the information they need to update our property tax prdgram after the changes in class rates, etc. by the 1998 Legislat~re. As soon as we can calculate the Net Tax Capacity Values and have verified them, I will supply you with the preliminary information that I know you Like to have. This could be the week of September 8th, after Labor Day. 13880 Highway 10 Elk River, MN 55330-4601 241-2861 ~3 1-800-438-0578 ~ Fax: 241-2875 1999 TAXES TRUTH IN TAXATION HEARINGS TAXING DISTRICT Sherburne County ISD =726 ISD ~727 ISD #728 ~SD.#742 ISD #477 DATE Dec 3, 1998 Continuation: Dec 15, 1998 Dec 7, 1998 Continuation: Dec 14, 1998 Dec 1, 1998 Continuation: Dec 10, 1998 Dec 1, 1998 Continuation: Dec 8, 1998 Dec 9, 1998 Continuation: Dec 17, 1998 Dec 8, 1998 Continuation: None TIME (Thur) 7:00 P.M. .(Tue) 7:00 P.M. (Mon) 8:00 P.M. (Mon) 8:00 P.M. (Tue) 7:00 P.M. (Thur) 7:00 P.M. (Tue) 7:00 P.M. (Tue) 7:00 P.M. (Wed) 6:30 P.M. (Thur) 6:30 P.M. (Tue) 7:00 P.M. LOCATION Commissioner's Room Government Center 13880 Hwy 10 NW Elk River, MN 55330 Becker H.S. Auditorium 12000 Hancock St Becker, MN 55308' Becket H.S. Auditorium Board Room Big Lake High School 501Minn Ave, Big Lake Board Room Community Ed Center, 1230 School St NW, Elk River, MN 55330 Community Ed Center, City Council Chambers City Hall, 400 2nd St S St. Cloud, MN 56301 City Council Chambers District Board Room 706 1st Street Princeton, MN 55371 District Board Room ISD #882 1SD #51 Dec 7, 1998 Continuation: Dec 14, 1998 Dec 14, 1998 Continuation: Dec 21, 1998 (Mon) 7:00 P.M. (Mon) 7:00 P.M. (Mon) 7:00 P.M. (Mon) 7:00 P.M. Board Meeting Room High School 302 Washington St Monticello, MN 55362 Board Meeting Room High School Intermediate School Media Center, Foley, MN 56329 Intermediate School, Media Center RESOLUTION 98- A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION AUTHORIZING THE 1998 PROPOSED PROPERTY TAX LEVY FOR COLLECTION IN 1999 WHEREAS, the Elk River City Council has review the City's anticipated expenditures for all funds in 1999; and, WHEREAS, the Elk River City Council has considered projected revenues for all funds in 1999; and, WHEREAS, revenues from sources other than property taxes are not sufficient to meet anticipated expenditures of all funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that the following amounts are the maximum to be levied as property taxes payable in 1999: General Fund Lake Orono Library Dam Loan Development Fund Surface Water Management City Special Assessments 1989 Fire Equipment 1994 Storm Sewer Bonds 1995 Certificate of Indebtedness 1996 Certificate of Indebtedness 1997 Certificate of Indebtedness 1998 Certificate of Indebtedness 1999 Certificate of Indebtedness TOTAL HACA Gross Lev), Reduction Net Lev)/ $ 3,489,800 $ 495,862 $2,993,938 100,000 14,209 85,791 62,500 8,881 53,619 32,572 4,628 27,944 135,000 19,182 115 818 59,500 17,868 71 862 114 225 23 631 22 857 28 978 31 500 40 000 8,454 51 2,539 15 10,211 61 16,230 97 3,358 20 3,248 19 4,117 24 4,476 27 5,684 34 O46 329 651 995 273 6O9 861 O24 316 $ 4,230,293 $ 601,079 $3,629,214 Passed and adopted by the City Council of the City of Elk River this 14th day of September, 1998. ATTEST: Henry A. Duitsman, Mayor Sandra A. Peine, City Clerk