4.8. & 4.9. SR 12-21-1998-~ity of
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lver
MEMORANDUM
Items 4.8. & 4.9.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Admi~~
December 21, 1998
1999 Budget and Tax Levy Resolution
In September, the City Council approved its proposed maximum tax levy for
1999. The net levy proposed was in the amount of $3,629,214. This is a
$387,105 or an 11.6% increase over the adopted 1998 net tax levy amount. A
majority of the tax levy funds (approximately 84%) is dedicated toward
general fund activities.
The City Council reviewed the proposed budget at meetings in August and
September and most recently on November 23, 1998. The final draft 1999
budget is proposed in the amount of $5,363,450. This proposed budget
reflected a 9.3% or $458,200 increase over the adopted 1998 general fund
budget.
On December 7, 1998, the City Council held its Truth in Taxation public
hearing. This public hearing is required by law to receive public input on the
proposed city budget and tax levy. (Four individuals spoke at this public
hearing and at least two of the individuals appeared to be mainly concerned
with their increased property value.) Notice of this public hearing was sent
out to ali property owners in the city and a notice was published in the Elk
River Star News. Figures included in the mailed notices and in the
newspaper were based on the draft budget and the September tax levy
proposal. Based on these figures, the city tax levy increase will cause the city
tax rate to go from 26.255 in 1998 to about 29.152 in 1999. Overall, the total
tax rate in the city is proposed to go from approximately 111.5 in 1998 to
about 121.5 in 1999.
As previously discussed with the City Council, the impact of the increased
tax rate on property owners vary depending on whether or not the property
also increased in value. Other factors which impacted individual property
owners in 1999 includes recent tax class changes by the state legislature and
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
additional educational credits being provided. Additionally, the successful
school levy referendum will show up for the first time on the tax statements.
Nonetheless, one thing we know is that ff you own a homesteaded residential
piece of property in the $110,000 to $130,000 range and there is no increase
in your value, then you will see your total property taxes increase by about
3%.
The City Council has reviewed the budget at a number of meetings. Included
in the December 14 agenda packet was the general fund budget expenditure
details for each departmental budget. This detailed material is not included
with this memo, but if Councilmembers wish to have another copy, one can
be provided. Attached to this memo are the following:
· 1999 General Fund Revenues
· 1999 General Fund Expenditure Summary
· Budget Resolution
· Tax Levy Resolution
Recommendation
It is recommended that the City Council approve Resolution 98-__
Approving the 1999 Municipal General Fund Budget.
It is recommended that the City Council approve Resolution 98-__
Authorizing the 1998 Proposed Property Tax Levy for Collection in 1999.
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
957,127 1,041,805 1,102,550
476,632 509,976 347,300
80,028 84,221 80,000
439,001 492,321 317,950
91,852 122,621 64,150
267,950 270,169 360,700
$4,473,265 54,991,531
$4,905,250
$2,993,950
1,028,800
436 5OO
95 000
351 150
78 25O
354 800
25 000
$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
198,150
495,85O
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
7,000
2,300
76,000
3,000
69,250
$2,993,950
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
8OO
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
1lO,000
37,150
45,OOO
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
$ $ 106,400
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
502,274 551,793 572,650
39,677 35,880 33,750
19,613 - 22,050
66,919 83,652 62,600
37,786 39,502 42,000
292,886 337,671 347,650
5,847 14,773 20,200
139,818 139,818 175,100
5,341 6,153 7,300
111,610 108,857 166,500
1,514,062 1,631,674 1,790,300
18,177 14,419 28,350
267,682 280,805 273,200
11,304 19,363 14,800
488,664 493,642 490,500
77,207 137,377 111,650
107,834 81,140 123,250
1,203 1,301 1,500
5,368 8,188 11,600
140,970 160,256 170,350
126,944 134,171 175,500
37,676 40,354 43,900
13,260 72,714 141,650
582,400
33,150
13,400
72,600
42,000
399,350
21,050
215,050
7,300
134,400
2,006,650
34,450
301 100
14,050
510,300
136,200
124,550
1,500
11,500
182,050
249,450
57,900
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
RESOLUTION 98 -__
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION APPROVING THE 1999 MUNICIPAL
GENERAL FUND BUDGET
WHEREAS,
the City Council annually reviews and adopts a municipal
budget which balances proposed expenditures with
anticipated revenues; and,
WHEREAS,
on September 14, 1998, the City Council adopted Resolution
98-102 which established the proposed maximum levy for
1999; and,
WHEREAS,
on December 7, 1998, the City Council, in compliance with
state law, held a public hearing on the proposed 1999 levy
and proposed 1999 budget; and,
WHEREAS,
after due review and consideration, the City Council is now
prepared to adopt its 1999 general fund municipal budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Elk River, Minnesota, that it does hereby approve and adopt its 1999
municipal general fund budget in the amount of $5,363,450.
Passed and adopted by the City Council of the City of Elk River, Minnesota,
this 21st day of December 1998.
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Peine, City Clerk
RESOLUTION 98-
A RESOLUTION FOR THE CITY OF ELK RIVER
a RESOLUTION AUTHORIZING THE 1998 PROPERTY TAX LEVY
FOR COLLECTION IN 1999
WHEREAS, the Elk River City Council has review the City's anticipated
revenues and expenditures for all funds in 1999; and,
WHEREAS, revenues from sources other than property taxes are not sufficient
to meet anticipated expenditures of all funds; and,
WHEREAS, the Elk River City Council has received public input and comment
on the Tax Levy and Budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that
the following amounts are 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 $ 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 2O
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 21 st
day of December, 1998.
ATTEST:
Henry A. Duitsman, Mayor
Sandra A. Peine, City Clerk