5.4. SR 12-07-1998ity
of
iver
Item 5.4.
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Adm' ~~o~
December 7, 1998 ~
Truth in Taxation Public Hearing
The city of Elk River tax levy and budget pubhc hearing is scheduled for
6 p.m., Monday, December 7, 1998, at the Elk River City Hall. The public
hearing on the budget and tax levy is required by the Truth in Taxation law.
The purpose of this public hearing is to receive citizen input on the proposed
1999 city budget and tax levy.
Notice of this public hearing has been sent out by the county to each property
owner in the city. Part of this notice included information on the property
owners proposed city, school, and county taxes for 1999. A public hearing
notice for this meeting was published in the December 2, 1998, Elk River Star
News. Notification was also published in the city newsletter, The Current,
which was distributed with the 12/2/98 edition of the Star News.
In September 1998, the City Council adopted a resolution which established
the proposed maximum tax levy (see attachment). The maximum net levy is
$3,629,214. Of this total, approximately 84 percent, or $3,079,729, is for
general fund activities. The balance, approximately 16 percent of the total net
levy, is used for other City Council approved expenditures such as equipment
certificates, operation and maintenance of the library, special assessments, the
dam loan, etc. This city tax levy increase will cause the city tax rate to go from
26.255 in 1998 to 29.152 in 1999.
Following the August and September budget meetings, the Council met on
November 23, 1998, and refined the 1999 proposed budget. The general fund
budget to be presented to the public on December 7, 1998, is in the amount of
$5,363,450. This reflects a $458,200 or 9.34 percent increase from the adopted
1998 general fund budget.
State law requires a Truth in Taxation public hearing on the city tax levy and
budget. Home and business owners generally see large tax increases in years
when their property values go up. This value increase, plus recent changes in
the tax classes by the state legislature, will have a big impact on your 1999 tax
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
RESOLUTION 98- 102
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 Levy Reduction Net Levy
$ 3,489 800
100 000
62 500
32 572
135 000
59 500
17 868
71 862
114225
23.631
22.857
28 978
31 500
40 000
495,862 $2,993,938
14,209 85,791
8,881 53,619
4,628 27,944
19,182 115,818
8,454 51,046
2,539 15,329
10,211 61,651
16,230 97,995
3,358 20,273
3,248 19,609
4,117 24,861
4,476 27,O24
5,684 34,316
$ 4,230,293 $ 601,079 $3,629,214
Passed and adopted by the City Council of the City of Elk River this 14th
day o¢ September, 1998.
ATT~/~T: _
ISahdra A. 'lSeii~e, City Clerk
,/
SOURCE OF FUNDS
1996 1997 1998 1999
ACTUAL ACTUAL ADOPTED PROPOSED
GENERAL PROPERTY TAX
INTERGOVI:RNMENTAL RFVFNUFS
CHARGES FOR SERVICES
FINES & FORFEITS
LICENSES & PERMITS
OTHER REVENUES
TRANSFERS
USE OF RESERVES
TOTAL
$2,160,675 $2,470,418 $2,t,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/g8
$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
70,000
7,O00
2,3O0
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 OFFUNDS
223,500
800
52,000
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
3,700
5,550
78,250
110,O00
37,150
45,000
19,750
19,750
8,000
90,000
22,150
2,000
1,000
354,8OO
25,000
$5,363,45O
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
Elk River · Otsego · Ramsey · Rogers ° zimmerman
Property tax hikes take most of saving
by Don Heinzman fLake To~vnship residents wiIl~ River, $1,929.18 for Zimmer-
~e°rre,s Ihave to pay modest increases,\ man, $1,350.68 for Livonia
some tax relie£in the ko£ $33.97 and $12.83 respec-J and $1,492.80 for Big Lake
· estimated property tax rates· tively,
and taxes that will be paid by
Sherburne County residents
who live in the 'Elk River Area
School District.
Calculations done by Sher-
burne County Auditor Ra-
mona Doebler show that the
cities, the county and the
school district, except for
Zimmerman, all raised their
property tax levies for taxes
payable next year. This virtu-
ally wipes out the $320 home-
stead credit, tax relief created
by the Minnesota Legislature..
fCompared to taxes paid last
'year on homes valued at~
~000, Elk Riverand Bi~
while
Zimmerman and Livonia
Township will receive reduc-
tions.
Zimmerman, which had a
whopping 8 percent increase
in its tax capacity, actually
;viii s?e property taxes go
down $93.88 on a house val-
ued at $120,000.
Livonia Township taxes for a
$120,000 house, which is the
average value of a property in
Sherburne, will see a slight
$10.91 reduction in taxes.
In the sample for a $120,000
residential homestead, the
estimated tax for next year
will be: $1,683.78 for Elk
residents of Township.
c--One reason for the increase
is for the first time, taxpayers
of all classes will be paying the
first year's cost of two Elk
River area school bond levies
approved last year. The pay-
ments were to have started in
1998 but the wording of the
ballot was for 1999. That
amount for a $120,000 house
for Elk River, Zimmerman,
Livonia and Big Lake
~T_ownship is $163.,39.
.The Legislatures intent to
g~ve commercial and industri-
al parcels a reduction is corn-
Taxes continued to page 13
Example j With Homestead
;iT~*** ELK R;VER ZINNERMAN
Tax Rate
;,.1~1,478% 137,676% ,,99,491 108,87~%
Proposal1999 1515 $1840,39 ': $~085;79 ':; $1649,41
Less H.E. CR* [ ($3~0.'00) "?~,, ($3~0.00), ~ ($3~0.00)
Plus ~. Tax** ' $163.78 .::-<,,.' $163.39 '~,~:
Estimated Tax $163,39
Actual1998 1583 ,"'$1765.1'1, ' $~138.38
LessH.E. Ca' ~ ($176 87i'' ,,,,.... ::/'$]~76,:,89~ $1595.~7
P~us nkt, ~ax** ' $61 5~ ~' ' ~]'~'~k°/)'':, (~1,7,6:~7).]~ ($176.87)
~:: · - ,o',.3/ :'?,,,':$6~:;57'::;;:"~ $61.57
~ referendum
.Taxes
Continued from page 1
ing true.
In the sample on a $300,000
commercial and industrial
buildings there are slight
reductions for Elk River and
Livonia and Big Lake town-
ships and a $1,033.75 reduc-
tion for Zimmerman.
For owners of $300,000 mar-
ket value buildings, the tax
next year will be $11,250.39
for Elk River, $12,696.02 for
Zimmerman, $9,288.05 for
Livonia Township and
$10,125.31 for Big Lake
Township.
Here's how the proposed
property tax levy plays out
compared to the 1998 final tax
levy:
· School District 728: Up
10.7 percent from $15,025,309
this year to $16,821,410
payable next year.
· Sherburne County:
Increase of 9.8 percent, from
$15,840,777 to a proposed
$17,569,207.
· City of Elk River, increase
of 10.4 percent from
$3,251,109 in 1998 to
$3,629,214 as proposed for
1999. (The sizeable increases
are $210,000 for police and
$75,000 for recreation.)
· City of Zimmerman, reduc-
tion from $489,448 in 1998 to
$486,833 in 1999 as proposed.
· Big Lake Township,
increase of 8.3 percent from
495,551 in 1998 to 540,551 in
1999.
· Livonia Township, increase
of 5 percent, from $161,303 to
$170,303.
RIVERS OF. HOPE
(612) 441-0792 (612) 682-6424 1-800-439-2642
Elk River Office Buffalo Office Outside the Metro
Sherburne County Wright County dialing area
November 23, 1998
Dear Mayor and City Council Members,
Rivers of Hope, the domestic abuse advocacy agency for Wright and Sherburne Counties, is asking
you to consider contracting for services or contributing to the emergency services we provide residents of
Elk River in 1999. We are appreciative of the fact that we were made a line item on the city's budget in
'98 and we received $2000 for youth advocacy services. This next year we are asking for $5000 from the
City of Elk River. Our budget in fiscal 1999 is $289,822.91. Elk River citizens make up 17% of the adults
we see, youth are not included in that number and we have advocates working in every secondary school in
the Elk River Area School District. We need the City of Elk River to help us help residents.
For nearly ten years we have been providing desperately needed advocacy services to the residents
of the cities we serve at no charge. We are finding we cannot continue these efforts without considerable
financial support from our communities. The number of victims coming forward, the number of domestic
assault arrests made, and the number of residents moving into our counties all work together to heavily tax
our capacity for service at Rivers of Hope (ROH).
ROH supports staff and volunteers who work and coordinate efforts with area school districts,
counseling centers, county social/human services, health providers, criminal justice agencies, probation,
attorneys, and medical clinics focusing on services in four primary areas including advocacy and support,
criminal justice intervention, community education and youth violence prevention and intervention services.
We recognize that those who live with the daily threat of domestic abuse clearly need accessible,
supportive, educational and comprehensive local programs. Rivers of Hope provides a vital service to the
families who come to us with hope for safety and help in breaking the cycle of domestic violence.
In 1998 we began receiving law enforcement arrest and incident reports from the Elk River Police
Department with the agreement that we will immediately notify the victim of a domestic assault and offer
services. There would be a significant cost for Elk River to provide their own victim services if we were not
here. We are accessible 24-hours a day with crisis intervention assistance.
Two other cities contributed a total of $6000 to Rivers of Hope last year and the City of Becker
has already voted to resign a contract with ROH. It is important to us that Elk River, the city where we
spend the most and serve the most residents, financially supports this work on behalf of public safety.
Please find enclosed our proposed budget. If there is any more information you require, please call
me at 441-0792 and I would be happy to provide it. We have a number of supporters, including many Elk
River residents, who would like to see the city be more supportive of crisis intervention services and would
be more than willing to attend a city council meeting to discuss it further. If that interests you, please call
me at one of the numbers listed above with a date in mind and we will try to accommodate your schedule.
If you prefer the form of a contract for services, we would be happy to provide a sample document.
Please respond to this request as soon as possible so we know if you need more information and
whether we can count on you to be part of the solution of domestic violence costs in our community.
Margaret Ostman, Executive Director
To Build a Comtnunity Free of Domestic Violence
Through Advocacy and Education
RIVERS OF HOPE
PROPOSED STATEMENT OF INCOME & EXPENSE FOR FISCAL 1998-99
JULY 1, 1998 -JUNE 30, 1999
CRIMINAL JUSTICE
COMMUNITY ADVOCACY PROGRAM INTERVENTION PROGRAM
[{ECEIPTS; ~ WRIGHT CO, S~
SECURED FUNDING:
I~ee for service aoreements -
Sherburne Co. Social Services thru 12/98; 13,260.00 --.- --.-
Wright Co. Human Services thru 12/98; --.- 11,560.00 --.-
City of Becker thru 12/98; 500.04 ~.- ----
Wright Co. Attorney thru 12/98; ~.- 240.00
Family Housing Stability Project thru 6/99 --.- 2,740.00 ~.-
Col~tinuation funding,
MN Dept. of Corrections 38,000.00 38,000.00 27,000.00
MN Dept. of Economic Security thru 9/98 ~.- --.- --'-
Wdght-Hennepin Electric thru 2/98 ~.- 1,333.36 --.-
UNSECURED FUNDING: 26.244.32 32.823.17 16.148.34
~ $ 78,004.36 $ 86,696.53 $ 43,148.34
Salaries $ 55,733.15 $ 60,507.15 $ 29,720.25
Payroll Taxes/Workmen's Comp 5,261.21 5,711.88 2,805.59
Health Insurance 1,262.50 625.00 --.-
Travel 1,675.00 1,575.00 975.00
Publicity/Advertising 125.00 125.00 125.00
Office Expenses 580.00 580.00 260.00
Legal & Accounting Services 1,750.00 1,750.00 1,750.00
Contracted Se~ces 375.00 375.00 375.00
Conference & Education 225.00 225.00 225.00
Dues & Subscriptions 70.00 70.00 70.00
Equipment Purchase 125.00 125.00 125.00
Meals 100.00 100.00 100.00
Insurance 1,500.00 1,500.00 1,500.00
Maintenance - Eqpt. 87.50 87.50 87.50
Resource Materials 125.00 125.00 125.00
Postage 400.00 400.00 400.00
Printing 300.00 300.00 300.00
Rent 5,382.50 8,862.50 2,392.50
Telephone 1,812.50 2,537.50 697.50
Deprecia§on 800.00 800.00 800.00
Bank charges/Interest charges 250.00 250.00 250.00
Misc. Expenses 65,00 65,00 65,00
TOTAL DISBURSEMENTS: $ 78,004.36 $ 86,696.53 $ 43,148.34
YOUTH ADVOCACY
pROGRAM
SHERIBURNE & WRIGHT
10,750.00
71,223.68
$ 81,973.68
$ 55,088.35
5,200.33
1,237.50
3,275.00
125.00
580.00
1,750.00
375.00
225.00
70.00
125.00
100.00
1,500.00
87.50
125.00
400.00
300.00
7,842.50
2,452.50
800.00
250.00
65,00
$ 81,973.68
$ 13,260.00
11,560.00
500.04
240.00
2,740.00
103,000.00
10,750.00
1,333.36
146.439.51
$289,822.91
$201,048.90
18,979.01
3,125.00
7,500.00
500.00
2,000.00
7,000.00
1,5OO.OO
900.00
280.00
500.00
400.00
6,000.00
350.00
500.00
1,600.O0
1,200.00
24,480.00
7,500.00
3,200.00
1,000.00
$289,822.91
City
7 County Metro
Andover
Anoka
Champlin
Chanhassen
Chaska
Ham Lake
Hastings
Lino Lakes
Mounds View
N. St. Paul
Prior Lake
Ramsey
Rosemount
Savage
Shakopee
Stillwater
Vadnais Heights
White Bear Lake Twp.
1997 Population
22,369
17,831
20,307
16,917
14,817
11,567
17,268
14,560
12,854
12 780
14 319
17 372
12 772
16 002
15 311
16 069
13 069
10852
Average Total
Tax Rate
for 1998
106.87
113.35
124.83
150.22
133.11
102.30
119.82
125.63
129.88
122.34
139.47
107.53
131.19
135.45
141.03
128.04
120.49
119.46
Non Metro
Albert Lea 18,009 134.88
Brainerd 13,160 110.76
Fairmont 11,339 124.20
Fairb ault 19,016 131.07
Fergus Falls 13,217 128.97
Hutchinson 12,710 148.69
Marshall 12,542 120.61
New Ulm 14,001 140.46
N. Mankato 11,680 123.03
Northfield 16,051 120.95
Owatonna 20,920 125.37
St. Peter 9,788 130.39
Willmar 18,831 133.31
Worthington 10,461 113.77
Becker 2,126 87.95
Big Lake 4,349 119.40
Buffalo 9,324 126.90
Otsego 6,448 123.34
l~ogers 1,645 127.66
Zimmerman 2,181 135.08
ELK RIVER 14,667
Source: September 1998 League of MN Cities Magazine
111.51
s:\admin\citpop98.doc
OCTOBER 10,19 9 8
p, pmLy 'O'^'*'' tax, '* TRIBUNE · PAGE B9
998
metro
Here are the 1998 tax rankings fcx t~e 107 commas in t)~e seven-county metropo~'~an a~ea ~ ~s
~f 2~ ~ ~ ~ ~b~, ~ ~s a ~~ of 236L ~115~ ~e' refers to a ~~1
~ w~ ~ ~~ m~et ~ of S115~. ~ ~ a ~'s ~e~ ~ ~ ~t~ ~ ~ ~
. ~s m~et ~ ~ ~ ~ ~s r~ f~ ~ ~ as a w~ of ad~ f~ d,ff~e~ ~ asses~
merit pr~s.
Ar~over (11) . $2,518 2.03 * 105
{14) $~719 72
AF~{15) $L724 71
(112) $1~26 ~ 46
(112) $2~70 10 4
W~(I~ .... SLT~' 6S" 65
a~ (19~) S~.7~ ~ 70
F~m(192) ..., $1~ 52 74 '
~ ~ (1~) $1357 63 73
~(1~) $~31 ' 27 45
(27~ $1332 ~ 22
~ ~78) $L777 55 77
~ ~79)
M~ (1) S~7 6 8
~77) '' $L776
~(279) $2A~ 4 6
~ (~2) S2~11 14 25
~ (276) $1~13 31 39
~ (6~) $I~7 47
~ (623) $1~ 16 21
~ ~23) $~77 2 3
~ (623) S~ ? 5
~ (~) S~16 49 47 '
V~ (621) $1~57 21
~ (~1) S~ 45 35
~s (62~) s2~79 77 43
~ P~ (6~ S~7~ 69 59
~ (623). S~29 ~3 26
(625) S2~ 15 9
~ (622} $~ 43 41
~ (~4) S~72 4~ 28
~ ~e (624) $~ 37 27
~ ~ (719) S2~26 ~ 82
~e (?~9) s2~ 8 7
(~)
~ (~ ~ ~ 76 75
~ (~1)
(~) S~ 2~ 202
~ (~ $~725 70 * 49
(~) $1~2 24 23
~ ~ ~) SL761 ~ 55
(622} $1~16 ~ 79
S~a~ (~) $1~ 39 19
W~T~{~) Sl~ 207 ~07
Avlr~ m Imml
$11~695
S93.941
S96,832
S125.532
S98`463
S80260
S124~
S95~59
S94~
$1~745
S1~91
S11~7
S11~7~
S95~
S127215
S121~27
$12~76
S1~
S124A55
S~72~
S179~2
S12~35
S124.7~
S77.759
S~393
S107,7~
S14~418
S12~4
S26~25
S17~16
S125135
S12~
$102707
S~2~55
S24~10
~70
S2~7
S12~
$274,412
~5~
$1~27
$9~78
$~,725
$227~47
$14~79
~1~3
$102~7
$10~89
$96297
$12~g
$311~77
$9~4~
$11~793
~2~
Sl~
S12f71~
S9~
~7A35
$123~7
$1~.736
$115~23
S1~276
$10~13
S27~62
S15~
S179~7
S144~2
S9~57
S107D78
S~722
$142433
SL738
Sl..1.61 -4.5%
S1162 *9.'P~
S1.681 0.6%
S1.369 42/%
S1.010 -18.D%
· S1,864 95%
Sl124 ,8.7%
·S1.~02 -4.9~
SL248 *9.7%
S1.604 ,2.1.%
$2262
$1.770 .14%
$1559 -41%
$1272
SIJ.44 -4,4%
$3,857 '
S2221
S1~219 45%
S4~12 -32%
S2D82 -5/%
S/../90 -6,6%
S2D39
S1395
SL940
S1,608
Sl,431
S1,744
S2124
S2528
$2186
S~47
Sl,851 -4.5%
S1,048 .5..~
S1~30 *41%
SL618 1.7%
S2,415 -41%
S1/30 -7.1%
$L..q~ *91%
S5A99 .72~
S3,434
S3~46 .151%
$2,29~
S2279 -2~
$2./66
$1.62.2 .7.9%
$3,424 *32%
S2296 -2.3~
S4,327 41.7~
SL348 ' * .6.7%
S3123 *9/%
$4A92 ' ,0.7%
SL713 -42%
Sl,547 *31%
$5,2~3 -113~
$1,32.4 -13%
$2311
$1,338 -65%
$1,061
SL581 -16.9%
SI.572
S4~33 -55%
$5,417 -4.7%
S2.616
S2284 -8./%
S1255 2.8%
S1.749 -4./%
S/~548 412%
Sl.475 .63%
S2.010
$5D64 °32%
$1233 -14.4%
$1.912
$1115 43.7%
$2150 -2.9%
S2~i$ 2,~
Sl,601 1,6%
*S2127 3..5%
$1~ -81%
S2.336 -105%
$2../67 -3.~
S2,901 *64%
S~634 3.4%
*=2,610
$2/87
S1.7~
$2~28 -5.7%
$3~D37 3.~
S1.996 7.6%
$1,444
S1`384 1.4%
S1,B13 2.7%
$3245 *3.7%
S2./2.4 6,4%
S3D70 4.4%
S2~51 0.9%
S2.681 3.4%
$1310 92~
S2.`422 -7,~.
$1,675 132'&
S1.30~ -14.7~
$955 .8.9%
S1.992
S3,~61
$1256
$2259 -5~,~
ELK RIVER:
1998 taxes of $1,554 on
a $115,000 home
Approximate rank of
96 out of 108
Between Al-ton, East Bethel
and Medina
1998 Average home value of
$106,000...
taxes of $1,382 and change
ofmlnus (-)15.5%
Star
ity of
iver
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Admin's~tor
December 7, 1998
Truth in Taxation Presentation
Attached for your review is the information that will be presented to the
public on December 7. If you have any questions, please contact me or
Finance Director Lori Johnson.
13065 Orono Parkway * P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
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::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: i:::::: !! :: i?: ! ::iiiii::?:?:~)~;~ :::::::::::::::::::::::::::::::::::::::::::
?::: I ] I ii]ill ~!~~i::ii?:?:?:i?:::i~!?: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
[] TRUTH IN TAXATION
PUBLIC HEARING
City of Elk River
December 7, 1998
[~3 TONIGHT'S PRESENTATION · Overview of budget and tax levy process
· Proposed General Fund Budget
· Proposed Supplemental Budgets
· Proposed Tax Levy
· Discussion on Tax Rates
· RECEIVE PUBLIC INPUT
· Announce date of next Budget Meeting
[] The Budget & Tax Levy Process
· The Budget and Tax Levy have been discussed at several public meetings prior to
this public hearing.
· August 24
· August 31
· Sg. ptember 10
· September 14 - Proposed Tax Levy and General Fund Budget approved
· Noveraber 23
~ GENERAL FUND BUDGET
· The Proposed General Fund Budget approved on September 14 is $5,345,550
· Since that meeting additional revenues have been identified and two expenditures
deleted from the proposed budget were added back. The revised General Fund
Budget for 1999 is $5,363,450.
· This represents a 9.3% increase.
[] BUDGET COMPARISON
[] GENERAL FUND REVENUES
· Property Tax
· Intergovenunental
· Charges for Services
· Fines & Forfeits
· Licenses & Permits
· Other Revenues
· Transfers & Reserves
· TOTAL REVENUES
i [] GENERAL FUND EXPENDITURES
l0
12
· General Government
· Public Safety
· Public Works
· Culture & Recreation
· TOTAL EXP.
~3 GENERAL GOVERNMENT
· City Council
· Admin./Finance
· Economic Develop.
· Elections
· Legal
· Energy City
· Planning
~ GEN. GOV'T. CONTINUED
· Planning Commission
· Government Buildings
· Council Contingency
· TOTAL GENERAL GOVERNMENT
~3 PUBLIC SAFETY
· Building & Zoning
· Police
· Police Reserves
· Fire
· Emergency Preparedness
· TOTAL PUBLIC SAFETY
[] PUBLIC WORKS
· Sreets
· Snow Removal
· Equipment Repair
· Street Lighting
· Engineering
· TOTAL PUBLIC WORKS
[23 CULTURE & RECREATION · Shade Tree
· Parks
· Recreation
· Sr. Citizen Programs
· TOTAL CULTURE & RECREA~ON
[] GENERAL FUND
14
15
16
17
18
19
EXPENDITURE SUMMARY BY ACCOUNT TYPE
· Personal Services
· Supplies
· Other Services & Charges
· Capital Outlay
· TOTAL
[] SUPPLEMENTAL BUDGETS
· Library
· Surface Water Mgmt.
· Equipment Certificates
· Equipment Reserve
· Landfill
· Ice Arena
~ PROPOSED TAX LEVY FOR TAXES PAYABLE IN 1999
[] WHERE DO YOUR PROPERTY TAXES GO?
· Property tax payments provide funds to the county, school district, city and special
taxing districts.
· Typically the school district receives just under 60% of the tax revenue, the county
and city each receive just over 20% and special taxing districts receive 1%.
[221 TAX RATE INFORMATION
TAXES PAYABLE 1998 m
· Total 111.504% plus .05131% MV levy less 11.173% Educational Homestead Credit (max. of
$225)
· City tax rate 26.255%
[] HOW WILL THIS AFFECT YOUR PROPERTY TAX
· The change in your tax will depend on several factors
- any change in the value of your property
- the type of property
· homestead properly will benefit from the increased Education Homestead Credit
· commercial, industrial and agricultural property will benefit from legislation recuding the class rate
applied to determine the tax capacity
[] AFFECT ON YOUR PROPERTY
· An increase in the tax rate does not equate to an identical increase in your property
tax.
· Examples of the change in property tax based on the 1999 proposed rates:
- $90,000 residential homestead increases 2.0%
- $160,000 residential homestead increases 4.8%
- $150,000 C/I increases 1.7%
- $1,000,000 C/I decreases 2.3%
2O
[] HOW DOES ELK RIVER COMPARE TO OTHER CITIES?
· Elk River ranks 96 out of 108 metro cities.
· In Sherburne County only Beeker and Clear Lake have lower tax rates. Big Lake,
East St. Cloud, Princeton, and Zimmerman are all higher. (1999 Proposed Tax
Rates)
· Compared to similar greater Minnesota Cities, Elk River has the second lowest tax
rate. (1998 Tax Rates)
[] CONCLUDING COMMENTS
· OPEN PUBLIC HEARING AND RECEIVE PUBLIC INPUT
· CLOSE PUBLIC HEARING OR CONTINUE HEARING TO DECEMBER 14
· IF HEARING IS CLOSED, ANNOUNCE MEETING DATE FOR ADOPTION
OF LEVY AND BUDGET
4