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7.0. SR 11-23-1998'ity of iver TO: FROM: DATE: SUBJECT: MEMORANDUM Item 7. Mayor & City Council Pat Klaers, City Administer/_ November 23, 1998 Budget Memo The purpose of this budget meeting is to review where we are at with the 1999 proposal and to prepare for the December 7 Truth in Taxation public hearing. Hopefully we will have received our taxation and public hearing statement from the county by Monday so we can see firsthand what the statements are indicating to property owners for taxes payable in 1999. During the first budget worksession in August 1998, the City Council looked at a gap of $479,150 between available revenues and requested expenditures. At the August worksession the Council made some decisions regarding funding for the Lake Orono project, the capital outlay budgets for 1999, how to deal with the ice arena deficit, and how to fund the police Y2K solution. Following the August Council worksession, staff reduced the budget gap by raising revenue projections, making expenditure cuts, shifting some expenditures into the reserves funding category, or else by requesting that expenditures be made in 1998. The gap then decreased to $143,900 and the City Council closed this budget gap by authorizing additional tax revenues in the amount of $150,000 on September 14, 1998. Attached for your information are the changes made after the August worksession and the revenue summary and expenditure summary the Council reviewed on September 14 which included the $143,900 budget gap. Also attached is the 1999 capital outlay page which shows the funding of equipment by the general fund, equipment certificates, and equipment reserves. At this time, a number of"minor" budget changes are being proposed to the Council. These changes are reflected in the November revenue and expenditure summaries as attached and staff will be prepared to discuss these changes in as much detail as 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 desired by the Council on November 23, 1998. However, briefly, the changes include: · Using development fund monies to make up for the LGA loss as agreed upon by the Council on September 14 as well as increasing one of the reserve allocations to cover part of this LGA loss · Increasing the police relief revenues based on 1998 actuals and increasing the police grant amount based on the recently received police overtime grant. On the other side of the coin, the changes include: Increasing the police overtime expenditure by $5,000 Adding back into the budget the City Code codification project in the amount of $19,000 These changes, along with the $6,100 in "excess" funds from the September 14 budget (the difference between the $150,000 tax revenue increase authorized by the Council and the $143,900 budget gap) leaves the City Council with a balanced budget in the amount of $5,363,450 as identified in the November attachments. There are still a number of issues that the Council should review as it prepares for the December 7, 1998, Truth in Taxation public hearing. By this I mean the Council should recognize what is not in the budget and also what new activities are in the budget. In this regard, the Council should note that there are no contributions to the Historical Society or the Rivers of Hope organization listed in the budget and if funds are contributed they will have to come out of the contingency budget...the city is not accepting the last COPS FAST grant for an additional police officer which has been unfilled since approval was received in early 1998...the additional economic development employee is not in the general fund and is being financed out of the EDA/HRA budgets...the current proposal includes staffing for the Youthbound program, a part time assistant for the senior citizen coordinator, and a part time recreation programmer, all of which were not part of the 1998 budget. According to the most recent Elk River Star News, f your house valuation did not change, and you have a house valued at $120,000 in Elk River, then you will see only a very minor increase in your tax bill for 1999. I certainly hope that this is the case, but I expect more attendance at our Truth in Taxation hearing than what we have seen at any previous meeting. The recent legislative action on tax classes which shifts taxes to residential properties, the increases in property values in Elk River, and the tax rate increase in 1999, all combine to increase residential property taxes, especially if you have a home valued at $100,000 or less. Assistant City Administrator Lori Johnson and I will be in attendance at this meeting to discuss with the Council tax rate information and the budget, plus what we may hear on December 7 at the Truth in Taxation public hearing. Attached for your information is an article from the November 15, 1998, Star Tribune on Truth in Taxation meetings. In addition to discussing the budget at this November 23 meeting, I would like to review with the City Council a number of personnel issues. These issues include a change in our sick time policy to be consistent with the police union contract, a discussion on the Brimeyer executive search firm and our vacant city planner position, and a few recommendations on wage adjustments. Page i 9/10/98 BUDGET MEETING NOTES 8/31/98 9/7/98 REVENUES: CHANGES: $5,083,750 - 28,200 + 2,000 +20,000 + 5,000 + 9,000 + 5,000 +10,000 + 2,000 +15,000 +20,000 +15,000 +12,000 +25,000 $5,195,550 Cops Fast Program Police Tro~nin g Reimbursement Administrative Projects Planning Fees Recreation Fees Fines Building Permits Cigarette License Interest Liquor Transfer Street Reserve Transfer Utilities Transfer Cash Flow Fund Balance Transfer NET CHANGE' $ +111,800 Page 2 8/31/98 EXPENDITURES: $5,562,900 9/7/98 CHANGES: -19,000 - 3,000 - 3,000 - 500 2,500 * -14,750 ** -16,800 6,700 1,500 * 3,500 500 * 2,500 -40;~,00 1,500 -11 500 -35 000 3 000 2 000 5 000 2 000 * 5 000 6 000 5 000 i 000 2 000 -35,000 + 5,000 $5,339,450 Mayor/City Council-Codification Mayor/CC-Rivers of Hop e Mayor/CC-Historical Society Administrative/Finance-Supplies Ad mi ni strative/Finance-S ervices/Ch arges Administrative/Finance-Capital Outlay Econ. Dev.-Personal Services Move G.F. 40% Share ~c ~e~ em~. +o ~ ]z~ Elections-Delay Third Machine To 1999 Buildin g/Zonin g-Service/Charges Building/Zoning-Capitol Outlay Energy City-Services/Charges Plannin g-Capital Outlay Pohce-Personal Service (Cops Fast) Police-Supplies Police-Services/Charges ~ ~ Pohce-Capital Outlay (Vehicle"t~et Up) Fire-Supplies Fife-Services/Charges Fire-Personal Services/Part-Time Inspectors Parks-Supplies Parks-Capital Outlay (Cushman) Parks-Capital Outlay (Varsity Fields) Recreation-Personal Services Recreation-Supplies Recreation-Services/Charges Contingency Snow Removal-Supphes NET CHANGE:$ -223,450 *Purchase in 1998 (computer related, except Parks) ** Need HRA and EDA approval, ff new employee hired Page 3 8/31/98 EXPENDITURES AT REVENUES AT GAP AT $5,562,900 5,083,750 479,150 GAP $479,150 111,800 223,450 $143,900 Revenue additions (9/7) Expenditure changes (9/7) 9/7/98 Expenditures Revenues $5,339,450 5,195,550 143,900 SOURCE OF FUNDS 1996 1997 1998 1999 ACTUAL ACTUAL ADOPTED PROPOSED GENERAL PROPERTY TAX INTERGOVERNMENTAL REVENUES CHARGES FOR SERVICES FINES & FORFEITS LICENSES & PERMITS OTHER REVENUES TRANSFERS USE OF RESERVES TOTAL $2,160,675 $2,470,418 $2,632,600 $2,833,800 957,127 1,041,805 1,102,550 1,050,550 476,632 509,976 347,300 436,500 80,028 84,221 80,000 95,000 439,001 492,321 317,950 351,150 91,852 122,621 64,150 79,150 267,950 270,169 360,700 324,400 - 25,000 $4,473,265 $4,991,531 $4,905,250 $5,195,550 9/9/98 GENERAL PROPERTY TAX Ad Valorem Tax INTERGOVERNMENTAL REVENUES Local Government Aid HACA Local Performance Aid PERA Aid Police Relief Gravel Tax Urban Street Maintenance Cops Fast Grant State Crime Prevention Grant Police Training Reimbursement Other Grants (Safe & Sober) CHARGES FOR SERVICES GENERAL GOVERNMENT Administrative Project Fees Plan Check Fees Planning & Zoning Fees Contractor License Surcharge Sewer Inspection Fees Miscellaneous Sales Assessment Searches PUBLIC SAFETY School Liaison Police Contract Impound Fees Fire Calls & Contracts PUBLIC WORKS Street Services RECREATION Recreation Fees $2,833,800 $2,833,800 227,650 506,000 17,750 11,500 100,000 41,000 28,000 80,150 23,000 7,500 8,000 50,000 127,750 17,500 5,200 1,000 2,500 5,000 70,000 7,000 2,300 76,000 3,000 69,250 1,050,550 436,500 SOURCE OF FUNDS FINES & FORFEITS Court Fines Parking Fines 90,000 5,000 95,000 LICENSES & PERMITS PERMITS Building Permits Building Permit Surcharge Plumbing & Heating Permits Other Non-Business LICENSES Dog/Cat Cigarette Liquor Amusement Gas Fitters Garbage Haulers Mineral Extraction Apartment Licenses Other Business OTHER REVENUE Interest Landfill Surcharge Contribution-Guardian Angels Refunds & Reimbursements TRANSFERS Liquor Capital Outlay Reserve Street Reserve Landfill NSP/RDF Reserve Sewer Utilities Economic Development Authority Housing & Redevelopment Authority Undesignated Fund Balance TOTAL SOURCE OFFUNDS 223,500 800 52,000 1,000 1,900 2,500 35,000 2,250 1,8OO 75O 10,800 11,850 7,000 351,150 60,000 9,000 3,700 6,450 79,150 110,000 28,900 45,OO0 19,750 19,750 8,000 90,000 2,000 1,000 324,400 25,000 $5,195,550 9/9/98 APPROPRIATIONS SUMMARY 1996 1997 1998 1999 A~ual A~ual Adopted Proposed $ 78,110 $ 79,778 $ 78,900 $ 87,400 502,274 551,793 572,650 582,400 39,677 35,880 33,750 33,150 19,613 22,050 13,400 66,919 83,652 62,600 72,600 37,786 39,502 42,000 42,000 292,886 337,671 347,650 399,350 5,847 14,773 20,200 21,050 139,818 139,818 175,100 215,050 5,341 6,153 7,300 7,300 111,610 108,857 166,500 134,400 1,514,062 1,631,674 1,790,300 2,001,650 18,177 14,419 28,350 34,450 267,682 280,805 273,200 301,100 11,304 19,363 14,800 14,050 488,664 493,642 490,500 510,300 77,207 137,377 111,650 136,200 107,834 81,140 123,250 124,550 1,203 1,301 1,500 1,500 5,368 8,188 11,600 11,500 140,970 160,256 170,350 182,050 126,944 134,171 175,500 249,450 37,676 40,354 43,900 57,900 13,260 72,714 141,650 106,650 MAYOR & COUNCIL ADMINISTRATION & FINANCE ECONOMIC DEVELOPMENT ELECTIONS LEGAL ENGINEERING BUILDING & ZONING ENERGY CITY PLANNING PLANNING COMMISSION GOVERNMENT BUILDINGS* POLICE POLICE RESERVE FIRE EMERGENCY PREPAREDNESS STREETS EQUIPMENT REPAIR & MAINT. SNOW REMOVAL STREET LIGHTING SHADE TREE PARKS RECREATION SR. CITIZEN PROGRAMS CONTINGENCY TOTAL $4,110,232 $4,473,281 $4,905,250 $5,339,450 '1999 Proposed does not include $28,400 debt payment transfer. 9/9/98 1999 CAPITAL OUTLAY Funding Source General Equipment Equipment Department Department Item Fund Certificate Reserve Total Mayor & Council City Code Software 0 0, Administration Postage Meter 1,900 Copy Machine 10,650 ' Intemet Research Workstation 0 Computers - 2 0 File Server Upgrade 0 12,550 Elections Optical Scanners - ~ 7.. 13,400 13,400 Planning Computer 0 0 Building & Envior Software/Hardware for mapping system 17,000 Computers 0 ICopy Machine 2,600 19,600 Govt. Building City Hall Building Debt 67,600 67,600 Police Squad Cars (2) & Setup/Striping 0 30,000! · -eho~f'E",~F~'1~ion ~¢', ~'~4~ 25,000 Mobile Radios 6,000 ~/' Investigator Vehicle ~. 13,00_ 0-~ 74,000 Fire Chassis for Tanker 2 75,000 Pumper payment 13,000 29,000 , 117,0001 Emergency Prep. Siren 13,000 13,000 Streets Computer/Fuel System Upgrade 5,000 Tandem Axel Truck 111,000 Skid Loader 21,000 137,000 Parks Sod Cutter 1,000 Bleachers 3,000 Water Pump 1,000 Facility Improvements 0, 5,000 Recreation Ice Arena 8,000 8,000 $128,150 $162,000 $177,000 $467,150 9/9/98 SOURCE OF FUNDS 1996 1997 1998 1999 ACTUAL ACTUAL ADOPTED PROPOSED GENERAL PROPERTY TAX INTERGOVERNMENTAL REVENUES CHARGES FOR SERVICES FINES & FORFEITS LICENSES & PERMITS OTHER REVENUES TRANSFERS USE OF RESERVES TOTAL $2,160,675 $2,470,418 $2,~32,600 $2,993,950 957,127 1,041,805 1,102,550 1,028,800 476,632 509,976 347,300 436,500 80,028 84,221 80,000 95,000 439,001 492,321 317,950 351,150 91,852 122,621 64,150 78,250 267,950 270,169 360,700 354,800 - - 25,000 $4,473,265 $4,991,531 $4,905,250 $5,363,450 GENERAL PROPERTY TAX Ad Valorem Tax INTERGOVERNMENTAL REVENUES Local Government Aid HACA Local Performance Aid PERA Aid Police Relief Gravel Tax Urban Street Maintenance Cops Fast Grant State Crime Prevention Grant Police Training Reimbursement Other Grants (Safe & Sober/Comm. Poi ........................................... CHARGES FOR SERVICES GENERAL GOVERNMENT Administrative Project Fees Plan Check Fees Planning & Zoning Fees Contractor License Surcharge Sewer Inspection Fees Miscellaneous Sales Assessment Searches PUBLIC SAFETY School Liaison Police Contract Impound Fees Fire Calls & Contracts PUBLIC WORKS Street Services RECREATION Recreation Fees 11/18/98 $2,993,950 $2,993,950 198,150 495,850 17,750 11,500 108,900 41,000 28,000 80,150 23,000 7,500 17,000 50,000 127,750 17,500 5,200 1,000 2,500 5,000 70,O00 7,000 2,300 76,000 3,000 69,250 1,028,800 436,500 SOURCE OF FUNDS FINES & FORFEITS Court Fines Parking Fines 90,000 5,000 95,000 LICENSES & PERMITS PERMITS Building Permits Building Permit Surcharge Plumbing & Heating Permits Other Non-Business LICENSES Dog/Cat Cigarette Liquor Amusement Gas Fitters Garbage Haulers Mineral Extraction Apartment Licenses Other Business OTHER REVENUE Interest Landfill Surcharge Contribution-Guardian Angels Refunds & Reimbursements TRANSFERS Liquor Equipment & Program Reserve Street Reserve Landfill NSP/RDF Reserve Sewer Utilities Development Economic Development Authority Housing & Redevelopment Authority Undesignated Fund Balance TOTAL SOURCE OF FUNDS 223,500 8OO 52,0O0 1,000 1,900 2,500 35,000 2,250 1,800 750 10,800 11,850 7,000 351,150 60,000 9,000 3,70O 5,550 78,250 110,000 37,150 45,000 19,750 19,750 8,000 90,000 22,150 2,000 1,000 354,800 25,000 $5,363,450 11/18/98 APPROPRIATIONS SUMMARY 1996 1997 1998 1999 Actual Actual Adopted Proposed MAYOR & COUNCIL ADMINISTRATION & FINANCE ECONOMIC DEVELOPMENT ELECTIONS LEGAL ENGINEERING BUILDING & ZONING ENERGY CITY PLANNING PLANNING COMMISSION GOVERNMENT BUILDINGS* POLICE POLICE RESERVE FIRE EMERGENCY PREPAREDNESS STREETS EQUIPMENT REPAIR & MAINT. SNOW REMOVAL STREET LIGHTING SHADE TREE PARKS RECREATION SR. CITIZEN PROGRAMS CONTINGENCY TOTAL $ 78,110 $ 79,778 $ 78,900$ 106,400 502,274 551,793 572,650 582,400 39,677 35,880 33,750 33,150 19,613 22,050 13,400 66,919 83,652 62,600 72,600 37,786 39,502 42,000 42,000 292,886 337,671 347,650 399,350 5,847 14,773 20,200 21,050 139,818 139,818 175,100 215,050 5,341 6,153 7,300 7,300 111,610 108,857 166,500 134,400 1,514,062 1,631,674 1,790,300 2,006,650 18,177 14,419 28,350 34,450 267,682 280,805 273,200 301,100 11,304 19,363 14,800 14,050 488,664 493,642 490,500 510,300 77,207 137,377 111,650 136,200 107,834 81,140 123,250 124,550 1,203 1,301 1,500 1,500 5,368 8,188 11,600 11,500 140,970 160,256 170,350 182,050 126,944 134,171 175,500 249,450 37,676 40,354 43,900 57,900 13,260 72,714 141,650 106,650 $4,110,232 $4,473,281 $4,905,250 $5,363,450 '1999 Proposed does not include $28,400 debt payment transfer. 11/18/98 B SECTION www~une.~om/me~.o ' Star?ibune Sunday NOVEMBER 15, 1998 Truth in Taxation hearings have bccn fairly . quiet in recent years, but taxpayers and. government officials still show support for the nearly decade-old system. Yearly tax notices stir just'a whisper By JeffTey W. Peters and David Peterson Star Tribune Staff Writers In the deafening silence that often dominates annual Truth in Taxation hearings, local offi- cials hear a roar of approval. Attendance at the meetings that school districts, cities and counties will hold early next month to discuss proposed budgets and tax rates is almost uniformly sparse. But there ap- pears to be equally meager en- thusiasm for abandoning the nearly decade-old process. Instead, taxpayers and local leaders alike see the system of notices and meetings as a valu- able opportunity to involve peo- pie in government decisions. "It's a good thing. Everyone has the right to know what to expect in taxes, and not just get billed," said Chris Reed, an un- employed engineer who lives in Cottage Grove. "I've got a feel- ing that if it went away, taxes might run amok." Many public officials credit a general satisfaction with ser- vices and tax levels for the lack of participation in recent years. "If people have an opportu- nity, they vote with their legs," said outgoing Eagan Mayor Tom Egan. Turn to PROPERTY TAX on B8 Also on B& -- Property tax facts. Key facts Truth in Taxation What is it? Every property owner in Minnesota receives a statement of proposed taxes between Nov. 10 and Nov. 24 each year -- a mailing man- dated by the Legislature in 1990. The specific calculations on each taxpayer's notice eliminate the confusion that often resulted from Minneso- ta's complicated tax system and multiple taxing agencies. Depending on which school district a taxpayer lives in, for instance, the proposed pay- able 1999 taxes on a $115,000 Bloomington home range from $1,542 to $1,697. What if l rent? Landlords must · post their notices in the rental property. What if I have something to say? In addition to the notices mailed by county officials, all counties, school districts and cities with more than 500 resi- dents must hold hearings be- tween Nov. 29 and Dec. 20. The meetings must be sched- uled so property owners can attend all meetings that apply to their home or business. At the hearings, agencies typical- ly re~4ew their proposed bud- gets and tax levies for the coming year and invite citizen comment. :~ How can I be effective? Public officials and taxpayer advo- cates offer these tips: Do your homework. Call elected officials and ask about the cur- rent budget and past trends. Ask about the impact of state aid or property tax reform on your taxes. Make choices. Consider what programs and services are most important to you. If you think spending is too high, suggest where cuts could be made. Look to the future. Truth in Tax- ation hearings come late in the budget process. It may be too' late for dramatic changes in the 1999 budget, but you can influence next year's spending plan. Get involved earlier. The best time to influence tax and spending plans is at the begin- ning of the budget process, in the spring and early summer. That's when department heads describe their plans for the next year and seek funding. For more information >~ The Minnesota Department of Revenue: 651-296-3781, http://www, taxes.state.mn.us ~- The Minnesota Taxpayers Asso- clarion: 651-224-7477, http://~vw.mntax.org PAGE B8 · STAR TRIBUNE PROPERTY TAX from B1 Most metro-area homeowners will get tax notices this week "I don't think we ever had more and where the money goes." than 10 people come out for the In fact, even though the hear- Truth inTaxationmeeting. I think ings are designed to focus on that's a sign people are satisfied." budget deliberations and not is- Most taxpayers wait until the sues such as a particular home's annual notice detailing the high- assessed value, an increase in est possible property tax on their _m__a_r_~e[ yE!Ue is off~'h-v(/h-ats'i:[fig-~- home or business arrives to de- ~o_~c_~r_~d_.r_e~Oent to_one of ]" cide if they will attend one of the the meetkags. meetings. "We have the assessing staff Most metro taxpayers will re- on hand to help people with ceive the form this week. questions about their assessment The form includes informa- or property classification," said tion on the property's taxable Marie Coutu, communications market value, lists all taxes paid director for Dakota County. "It to local governments in 1998, re- gives people a chance to talk with ports the total tax local agencies someone and know they can ask plan to collect in 1999 and calcu- about their value and correct any lates the percentage change from mistakes." 1998. It also lists how spending Cost concems changes and other factors affect- Even many'local officials have ed each jurisdiction's tax bill and come to have a grudging accep- gives the time, date and location tance of the notification and of each agency's public hearing, hearing requirements imposed by "I look at it, and if it hasn't the Legislature in 1990. changed any, I don't worry about "I still think it's an important it. I've never had a problem," means of public education," said Reed said. "...I would definitely Leroy Arnoldi, the Scott County get involved if taxes were going assessor. "Different entities sub- upalot." mit different budgets. The tax- payer may want to know, if two Democracy in action of the big three are decreasing, Although officials often out- why is the other increasing. It number citizens at the annual tax leads to greater citizen involve- discussions, notices predicting 30 ment in the whole process." to 40 percent tax increases drew Others, however, question the more than 1,000 angry residents cost of encouraging that in- to a St. Paul hearing in 1993 and volvement. nearly that many to the Hastings "It seems like a waste of time School District meeting in 1992. and money. People aren't turning John Taylor, business director out for it [the hearing]. And we for the Hastings district, said he get a lot of them back in the tried to explain that school mail," said Darla Groshens, the spending was only rising about 3 Wright County auditor/treasurer. percent, that most of the increase Hennepin County will spend was due to the vagaries of the more than $100,000 on postage state's schoolfundingformula, alone to mail out more than "But nothing could have satis- 300,000 notices. Ramsey County fled their anger that night," Tay- puts the annual cost of preparing lot recalled. "One guy said 'You're and mailing the notices at about just the bottom of the food chain $90,000, while Dakota County es- and we've come to get a bite.' ' timates it will spend al~out That ability to confront local $75,000 on its notices. officials and demand explana- "The state of Minnesota tions is exactly what keeps the should share in this expense," Truth in Taxation notices and said Terry Johnson, the Anoka hearings a popular feature of County financedirector."Wefeel Minnesota's complicated tax it's an unfunded mandate. We system, also think at some p. oint we need "I believe in them," said Coon to find some method of using the Rapids resident Kirsten Sandvik. Internet to make the same infor- "The simple fact is, we have gone mation available and equally in- to that hearing before. We had teractive." problems when we first built our home with water coming in, so Show vs. substance we wanted our taxes lowered un'- Some alsd worry that the par- til that was resolved .... I like the ticipation permitted by the form fact that you see the breakdown, and timing of the tax hearings is and what's happening with the more show than substance. special school levies-coming on Even when the people come, and off ~ how it breaks down officials caught betweenlooming Metro/State SUNDAY, NOVEMBER 15' 1998 ~Vhat they're saying about Truth in Taxation notices: "I believe in them. The simple fact ~,,, is, we have gone to that hearing before. We had problems when we first built our home with water coming in, so we wanted our taxes lowered until that was resolved.... I like the fact thatyou see the breakdown, and what's happening with the special school levies com- ing on and off-- how it breaks down and where the money goes.' -- Kirsten Sandv~, homeowner, Coon Rapids "I look at it, and if it hasn't changed any, I don't worry about it. I've never had a problem. It's a good thing. Everyone has the right to know what to expect in taxes, and not just get billed, l've got a feeling that if it went away, taxes might run a-~ok. I would definitely get in- t ediftaxesweregoingupalot." -- Chris Reed, unemployed engineer, Cottage Grove "I don't pay much attention to it, to tell you the truth. All I know is, I have to pay taxes. [The noticel really doesn't stand out to me, and I'm sure l get rid of it as soon as it comes out. Maybe government people should do something differently to get a bigger response than they do now. I do think it's good infor- mation to have." -- Rachel Ramirez, office manager, St. Paul budget deadlines, complicated state funding formulas and con- tinuing demands for more ser- vices find that their ability to re- spond is limited. "Our big criticism is that the 'ting comes so late in the get process that's it's pretty ~ough to make a big change," said Lynn Reed, research director for the Minnesota Taxpayers Associ- ation, a group whose aims in- clude educating Minnesotans about state tax and spending pol- icies. "If a government gets a real negative reaction, they might shave a little off, but that doesn't strike me as real citizen in- volvement.'' Sometimes, though, citizen protests can have a delayed ef- Shifting burden ~fifle§ota legislators have steadily reduced the difference between classification rates on residential and commercial properties, effec- tively forcing local homeowners to pay a greater share of city and county prop- erty tax levies. Some predict that increasing the tax burden of homeowners will spur them to take a greater interest in the city and county budget and tax proc- ess. Increased state aid to education has reduced the portion of school funds raised from taxes on residential property. Individual property tax bills are calcu- lated by multiplying the property value by the state classification rate to arrive at a property's tax capacity. That number is then multiplied by the local tax rate. / / Property i 1998 ! 1999 / class / Classification rate i Classification rate Residential homestead " .......... i ................. First $75,000 of value 1% ] 1% Valueover $75,000 i 1.85% I 1.7% Commercial and industrial ~ First $150,000 of value i 2.7% ] 2.45% Value over $150,000 ~1 4% I 3.5% From 1997 to 1999 the share of city and county property taxes paid by Min- nesota homeowners will have risen from 39 percent to 44 percent; the portion paid by business properties will have shrunk from 32 percent to 29 percent. In both years, business property accounted for about 15 percent of market value in Minnesota; homes made up about 58 percent of market value. Source: Minnesota Department of Revenue; Minnesota Taxpayers Association Property tax revenue sources 1997 Other* Residential . 29%~ 39% 1999 ~/~al~ ~ Other* Residential Business ~_. ~ 32% ] ~ Business 29% spring and summer budget ses- sions in local papers and on cable televis,!on. "But people just don't come, said former auditor/trea- ! surer Richard Stafford, who was elected to the County Board this I year. "When times are good and peop, le are pretty comfortable, ,~ they re not going to drive dow,,n ~:l to Stillwater on a Tuesday night.' · Lynn Reed hopes continuing i '/state efforts to shift the.~p_Lo_E~ty /tax burde'h ~~ss proper- [ t f T6--ti 6Tn e~-~_~e~r.T_~ !-~J ~s p i r e ~ mb. Le-'~-C~a-~f~ o s c r u t in !.z..e_[o c_c_al '~ spreE.ding plans. Since 1997, the fect, Coutu said. "Because of the way the bud- get process is set up, it may ap- pear the commissioners aren't listening because they don't make changes," she said. "But what they've heard from the pub- lic is very much a consideration when they set the next year's budget." In the wake of the angry St. Paul hearings in 1993, city offi- cials, aided by a healthy econo- my, have kept the tax levy flat for five years. County and school tax increases have also dropped dra- matically, as has attendance at the annual property tax hearing. Washington County has tried to involve citizens earlier in the fiscal process, advertising the Star Tribune graphic share of city and county property taxes paid by Minnesota home- owners has risen from 39 percent to 44 percent. "Homeowners have been shielded from the tax pain,' Lynn Reed said. "We don't presume to say what the level of tax should be, but to decide what level of services people want, they need to know what the price really is." Staff writer Mary Lynn Smith contributed to this report. ROD GRAMS MINNESOTA COMMITTEES: BANKING, HOUSING, AND URBAN AFFAIRS ENERGY AND NATURAL RESOURCES FOREIGN RELATIONS JOINT ECONOMIC BUDGET November 6, 1998 WASHINGTON, DC 20510-2304 WASHINGTON OFFICE: PH. 202-224-3244 FAX 202-228-0956 TDD: 202-224-9522 MINNESOTA OFFICE: 2013 SECOND AVENUE NORTH ANOKA, MN 55303 PH. 612-427-5921 FAX 612-427-8872 TDD: 612-427-5902 City Council City of Elk River P.O. Box 490 Elk River, MN 55330 Dear Council Members: It is with great pleasure and gratitude that I join the citizens of Elk River in saluting your community Night Out program during National Crime Prevention Month. Citizen involvement is critical in securing the safety of our communities. We must remember that we can reduce crime, violence, and substance abuse through active citizen participation and local community approaches to prevention. By strengthening your neighborhood spirit and generating active participation in local anti-crime programs, you have displayed a commitment to ensuring safer streets for all of your residents. More importantly, you have sent a message to criminals that your neighborhoods are organized and fighting back against the threat of crime. The most effective assault on crime occurs close to home, when the federal government -- not as an overseer but as a partner --joins with local governments and concerned citizens to fight crime at its source. As a nation, we have learned that communities like Elk River best meet its crime prevention needs when they have the flexibility and decision-making authority to put tax dollars directly to work in their fights against crime, without having them funneled first through Washington. In countless communities across this country, the National Night Out approach is a success. I commend the City of Elk River as well as the entire Elk River Police Department for its commitment to stopping crime at its source. I will continue to work with you, along with other elected leaders and citizens, to ensure that more management decisions are entrusted to the local level. In that way, we can build on the success you have achieved while eliminating the burdensome mandates from Washington and excess regulatory and paperwork requirements that make it more difficult for local law enforcement officials to put their crime prevention plans to work. I know I speak for all of the citizens of Elk River when I say thank you for encouraging their involvement in preventing crime. Your work is publicly recognized during National Crime Prevention Month -- but more importantly, it is remembered and appreciated every month of the year. Rod Grams United States Senator http://www.senate.gov/-grams PRINTED ON RECYCLED PAPER Emaih mail_grams~grams.senate.gov In Recognition of Outstanding Community _Achievement City of l lh United States by Senator Rod Grams on the occasion of National Crime Prevention Month Rod Grams United States Senate ELK RIVER MUNICIPAL UTILITIES HOME SECURITY 322 KING,'1 ~VENUE ELK RI ,VER, MN 55330 441-2020 PROTECTED BY ELK RIVER UTILITIES SECURITY SYSTEMS (612) 441-2020 5 5 5 2 NOVEMBER 16, 1998 TO: FRITZ NORTHBOUOND LIQUOR CAMERA ADDITION QUOTE Philips 24 volt color Cameras ~ $301.00 Camem Mounts ~ $14.00 $ 70.00 Auto Iris Vari-Focal Lens: 8mm to 3.5mm @ $95.00 $ 475.00 Robot 16 Channel Color Duplex Multiplier ~ $2550.00 $ 2550.00 VCRLockBox ~ $152.00 $ 152.00 24 Volt 40VA Transformer @ $8.50 $ 17.00 All Connectors & Video Cable for Total Installation $ 125.00 Installation Labor Please Feel flee to call me with any questions you have. Steve Nordalfl TOTAL $1505.00 $ 450.00 $ 5344.0O TOTAL $ 5662.11 6.5% Sales Tax $ 318.11 From: David G. C_.-,ohl To: ME. FRI~Z DOLEJS Date: 9/2/98 '~me: 12:40:36 PM Page 1 of I Communications C-Plus Inc. 8500 210th St. W. Lakevill~ MN 55044 QUOTATION DATE ESTIMATE # 9/2/98 468 NAME I ADDRESS NORTHBOUND LIQUOR 50 WEST MAIN ELKRIVER, MN 55330 ATTN': lvlR. FRITZ DOLEJS TERMS JOB Net 15 CCTV QTY ITEM # DESCRIPTION UNIT PRICE TOTAL 5 LTC0430/20 PI-III.mS 24 VOLT ISOLATED TRANSFORMER, 369.00 1,845.00T color CAMERA STANDARD RF_Z 5 CST-100 CAMER.A MOUNT, METAL 14.00 70.00T 5 TO2Z3514FCS AUTO IRIS VARI-FOCAL I.RNIS: 8mm TO 3.5mm. 95.00 475.00T 1, lVlV96P ROBOT 16 ~ COLOR DLTpLF__,X 2,779.00 2,779.00T MULTIPLEXER 31 T-160GX BLANK RECORDING. VIDEO TAPE 2.99 92.69T 400 RG.59 VIDEO CABLE 0.31 124.00T 1 ~ POWER STRIP POWER STRIP 6.00 6.00T l 16 BNC-T59 BNC VIDEO CONNECTOR 1.10 17.60T 10 LABOR INSTALLATION SERVICE 49.00 490.00 . DISCOUNT DISCOUNT OFF INVOICE (DEDICATED -500.00 -500.00 MICROS SPRITE SX 9 CH MULTIPLEXER raXDE) - Sale~ Tax 6.50% 321.80 wrm Questions, TOTAL. ss,?2 .09 612-469-2434 612-469-2439, FAX ~ - SHERBURNE COUNTY 1999 Proposed Tax Rates November '16, '1998 EDUCATION HOMESTEAD CREDIT MUST BE CALCULATED AND DEDUCTED FOR ALL HOMESTEAD PROPERTY - HOUSE, GARAGE AND I ACRE County Twp School Special Total Market County City School Special Total Market Tax Rate Value Rate Tax Rate Value Rate 001Baldwin Twp 060 Becker City 477 31.057 7.805 61.151 100.013 0.05923 726 31.057 20.582 50.036 0.507 102.182 728 31.057 7.805 59.635 98.497 0.13616 065 Big Lake City Hosp 005 Becker Twp Ho;~p 727 30.926 34.090 59.857 2.400 127.273 726 31.057 10.953 50.036 2.400 94.446 727 31.057 10.953 60.063 2.400 104.473 070 Clear Lake City 742 31.057 10.953 53.304 2.400 97.714 0.03136 742 31.047 22.406 53.285 106.738 882 31.057 10.953 60.948 2.400 105.358 0.06151 075 Elk River City HRA 010 Big LakeTwp Hosp 728 31.057 29.152 59.635 0.700 726 31.057 15.356 50.036 2.400 98.849 Ec Dev 0.934 727 31.057 15.356 60.063 2.400 108.876 728 31.057 15.356 59.635 2.400 108.448 0.13616 085 East St Cloud HRA E 728 31.057 15.780 59.635 2.400 108.872 0.13616 742 29.709 38.514 53.186 0.695 882 31.057 15.356 60.948 2.400 109.761 0.06151 MetTrans 2.387 015 Blue Hill Twp. 090 Princeton City 477 31.057 7.722 61.151 99.930 0.05923 477 31.019 52.863 E 477 31.057 10.524 61.151 102.732 0.05923 020 Clear Lake Twp 726 31.057 7.744 50.036 88.837 ~2 31.057 7.744 53.304 92.105 0.03136 025 Haven Twp 742 31.057 4.821 53.304 89.182 0.03136 030 LNonia Twp 728 31.057 8.799 59.635 99.491 0.13616 035 OffockTwp Z727 31.057 20.503 60.063 111.623 B 727 31.057 20.503 60.063 111.623 Z 728 31.057 20.503 59.635 111.195 0.13616 B 728 31.057 20.503 59.635 111.195 0.13616 040 Palmer Twp 51 31.057 9.674 65.502 106.233 0.03924 726 31.057 9.674 50.036 90.767 742 31.057 9.674 53.304 94.035 0.03136 045 Santiago Twp 0.000 51 31.057 9.355 65.502 105.914 0.03924 477 31.057 9.355 61.151 101.563 0.05923 726 31.057 9.355 50.036 90.448 726 31.057 9.355 50.036 3.198 93.646 Old 477Bond 121.478 124.491 < 0.03136< 0.13616 0.03136< 61.079 144.961 .05923< 095 Zimmerman 728 30.849 47.553 59.274 137.676 Net Tax Capacity x Total Tax Rate = Capacity Taxes Tx Mkt Val - Tx Mkt Val Exc x Mkt Val Rate = Mkt Val Tax Capacity Taxees + Market Value Tax = Taxes Due Hosp = Big Lake-Monticello Hispital Distdct Ec Dev = Economic Development HRA = Housing & Redevelopment Authority Met Trans = Metropolitan Transit < = Disparity Reduction Area E = Elk River Fire Distdct #1 Z = Zimmerman Fire Distdct B = Big Lake Fire Dist *EDUCATION HOMESTEAD CREDIT School Districts Credit Rate 051 Foley 24.031% 477 Princeton 26.007% 726 Becker 23.916% 727 Big lake 23.537% 728 Elk River 24.342% 742 St Cloud 25.200% 882 Monticello 24.381% 'Ed Hrnstd Credit Rate x H.G,I Ac NTC = Ed Hmstd Cr to max $320 0.13616< " SHERBU E COUNTY 1998 Tax Rates March 11, 1998 EDUCATION HOMESTEAD CREDIT MUST BE CALCULATED AND DEDUCTED FOR ALL HOMESTEAD PROPERTY - HOUSE, GARAGE AND I ACRE Average County Tax Rate = 97.538% Average County Market Value Tax Rate = .03820% County Twp School Special Total Market County City School Special Total Market Tax Rate Value Rate Tax Rate Value Rate 001 Baldwin Twp 060 Becket City Ec Der 477 27.235 7.381 62.565 97.181 0.05920 726 27.235 18.145 42.132 .441" 87.953 728 27.235 7.381 56.539 91.155 0.05131 065 Big Lake City Hosp 005 BeckerTwp Hosp 727 27.090 30.354 59.606 2.350 119.400 726 27.235 11.548 42.132 2.350 83.265 727 27.235 11.548 59.834 2.350 100.967 0.05627 070 Clear Lake City 742 27.235 11.548 50.749 2.350 91.882 0.07132 742 27.223 16.689 50.728 882 27.235 11.548 58.370 2.350 99.503 0.05869 0.0~627< 94.640' 0.07132< 010 Big Lake Twp Hosp 726 27.235 14.704 42.132 2.350 86.421 727 27.235 14.704 59.834 2.350 104.123 728 27.235 14.704 56.539.2.350 100.828 E 728 27.235 14.651 56.539 2.350 100.775 882 27.235 14.704 58.370 2.350 102.659 015 Blue Hill Twp 477 27.235 8.362 62.565 98.162 ' 7 27.235 10.782 62.565 100.582 020 Clear Lake Twp 726 27.235 7.631 42.132 76.998 742 27.235 7.631 50.749 85.615 0.05627 0.05131 0.05131 0.05869 075 Elk River City HRA 728 27.235 26.255 56.539 .633 Ec Der .842 085 East St. Cloud HRA 742 25.988 33.876 50.627 .622 Met Trans 1.879 111.504 0.05131 112.992 0.07132< 0.05920 090 Princeton City 0.05920 477 27.192 48.817 62.484 138.493 0.05920< 0.07132 095 Zimmerman City 728 26.993 51,973 56.117 135.083 0.05131< 025 Haven Twp 742 27.235 4.962 50.749 82.946 0.07132 030 Livonia Twp 728 27.235 9.523 56.539 93.297 0.05131 035 Orrock Twp Z 727 27.235 13.421 59.834 100.490 0.05627 B 727 27.235 13.421 59.834 100.490 0.05627 Z 728 27.235 13.421 56.539 97.195 0.05131 B 728 27.235 13.421 56.539 97.195 0.05131 040 Palmer Twp 051 27.235 ,10.307 58.342 95.884 0.03868 726 27.235 'f6.307 42.132 79.674 742 27.235 10.307 50.749 88.291 0.07132 045Sfintiago Twp 05~ 27.235 10.800 58.342 96.377 0.03868 "~ 27.235 10.800 62.565 100.600 0.05920 ~ 27.235 10.800 42.132 80.167 ~ 726 27.235 10.800 42.132 0.315 80.482 Old 477 Bond 'Net Tax Capacity x Total Tax Rate = Capacity Taxes Tx Mkt Val - Tx Mkt Val Exc x Mkt Val Rate = Mkt Val Tax Capacity Taxes + Market Value Tax = Taxes Due Hosp = Big Lake-Monticello Hospital District Ec Der = Economic Development I-IRA = Housing & Redevelopment Authority Met Trans = Metropolitan Transit <Disparity Reduction Area E = Elk River Fire District gl Z = Zimmerman Fire District B = Big Lake Fire District *EDUCATION HOMESTEAD CREDIT School Di~;tri~:l;~; Credit Rate 051 Foley 12.503% 477 Princeton 13.108% 726 Becket 9.658% 727 Big Lake 11.178% 728 Elk River 1 I. 173% 742 St. Cloud 12.347% 882 Monticello 11.790% *Ed Hmstd Credit Rate x H,G,1 Ac NTC = Ed ltmstd Cr to max $225 ELK RIVER MARKET VALUE TAX BASE COMPOSITION 998 59.82 I 7.73 I 6.72 19.80 I 5.70 853 Cities Average For 1998 67.03 8.82 0.81 19.12 4.17 Andover 90.94 3.00 1.07 2.54 2.16 Anoka 61.97 15.68 0.03 21.60 0.72 Champlin 88.77 4.73 0.16 5.46 0.87 Maple Grove 80.03 3.78 0.81 13.66 1.68 Ramsey 85.69 3.23 1.17 7.51 2.34 * Includes Public Utility And Personal Properly Source: League Of Minnesota Cities Admin/Taxbase 1996 1997 1998 Proposed 1999 $347,O92 $372,87O $307,800 $378,105 14.90% 11.50% 3.86% 0.10% From 23.958 To 24.033 Jp .075 or .3% From 24.033 To 24.683 Jp .65 or 2.7% From 24.683 To 26.255 Jp 1.572 or 6.4% From 26.255 To 29.152 Up 2.897 or 11% / Admin/Taxrev TAX RATES Total Tax Rate School Market Value Rate Education Hmst. Ct. City Tax Rate 1998 111.504% 0.05131% 11.173% 26.255% TAXES PAYABLe' ~999 ESTIMATES Based on November , 1998, County Data Proposed 1999 121.478% 0.13616% 24.342% 29.152% Residential Homestead Sample Properties Year 1999 1998 Market Value 90,000 90,000 NTC 1,005 1,028 NCT Tax 1,220.85 l, 145.70 MV Tax 122.54 46.18 Hmst. Ed. Credit 244.64 114.80 Estimated 1999 Tax 1999 City Tax Change in total Change in City share 1999 120,000 1,515 1,840.39 163.39 320.00 1998 120,000 1,583 1,764.55 61.57 176.81 1999 160,000 2,195 2,666.44 217.86 320.00 1998 160,000 2,323 2,589.68 82.10 225.00 1999 2OO,O0O 2,875 3,492.49 272.32 320.00 1,098.76 1,077.08 1,683.78 1,649.31 2,564.30 2,446.78 3,444.81 3,292.43 292.98 269.77 441.65 415.49 639.89 609.77 838.12 804.06 $ 21.68 2.01% $ 23.21 8.60% $ 34.47 2.09% $ 26.17 6.30% $ 117.52 4.80% $ 30.11 4.94% $ 152.38 4.63% $ 34.06 4.24% Commercial/Industrial Sample Properties Year Market Value NTC NCT Tax MV Tax Hmst. Ed. Credit Estimated 1999 Tax 1999 City Tax Change in total Change in City share $ $ 1999 1998 150,000 150,000 3,675 4,050 4,464.32 4,515.91 204.24 76.97 1999 300,000 8,925 10,841.91 408.48 1998 300,000 10,050 11,206.15 153.93 1999 1,000,000 33,425 40,604.02 1,361.60 !998 1,000,000 38,050 42,427.27 513.10 1999 1,500,000 50,925 61,862.67 2,042.40 1998 200,000 3,063 3,414.81 102.62 225.00 1998 1,500,000 58,050 64,728.07 769.65 4,668.56 4,592.88 11,250.39 11,360.08 41,965.62 42,940.37 63,905.07 65,497.72 1,071.34 1,063.33 2,601.82 2,638.63 9,744.06 9,990.03 14,845.66 15,241.03 $ (974.75) -2.27% $ (245.97) -2.46% $(1,592.65) -2.43% $ (395.37) -2.59% 75.68 1.65% 8.01 0.75% $ (109.69) -0.97% $ (36.81) - 1.40% 11/23/98 Elk River Growth History 4/1/91 4/1/92 4/1/93 4/1/94 4/1/95 4/1/96 4/1/97 11,705 336 or2.8% 12,041 364 or3% 12,405 406 or3.2% 12,811 475 or3.7% 13,286 733 or 5.5% 14,019 648 or4.62% 14,667 3,988 108 or2.7% 4,096 132 or3.2% 4228 142 or3.36% 4,370 169 or3.8% 4,539 257 or 5.66% 4,796 230 or 4.8% 5,026 Source: State Demographer Office Annual Statements Admin/GrowHist