5.5. SR 09-13-2004
Item # 5.5.
MEMORANDUM
DATE:
Mayor and City Council 1/ /J
Pat Klaers, City Adminisfl'ki~
September 13,2004
TO:
FROM:
SUBJECT:
Consider Tax Levy Resolutions and Discuss 2005 Budget
On September 7, 2004, tbe City Council met for tbe tbird time to discuss tbe 2005 budget
and tax levy. At this meeting, and consistent witb tbe Council consensus on August 23, 2004,
tbe Council decided tbat tbere should be no city tax rate increase for next year. Furtbermore,
it was noted tbat cuts in expenditures (in tbe supplies and otber services/charges categories)
in the amount of $112,500 will be made from tbe draft budget tbat was presented on August
23, 2004.
The City Council on September 7, 2004 also decided tbat it would levy to tbe maximum
available provided tbat no city tax rate increase takes place. The Council decided tbat
available funds, based on a 16.1 % increase in tbe city Net Tax Capacity (NTC), would be
used mainly for staff additions. The Council also decided tbat some equipment items should
be moved into tbe general fund. In this regard, a few proposed expenditures from
equipment reserves will be placed into tbe general fund.
All tax decisions at this point are preliminary and nothing can be finalized until December
2004 after the required Trutb-in-Taxation public hearings. In December, tbe City Council
can decrease its proposed tax levy amount but it cannot increase tbe amount from what is
established in September 2004.
Witb a 16.1% increase in tbe city NTC and no city tax rate change, then tbe tax levy amount
will be $7,623,985 (see attached resolution). This is tbe same amount tbat was discussed and
presented on September 7, 2004.
The final details of tbe general fund expenditures budget are still being put into place as
tbere have been recent changes made in all of tbe budget categories - personal services,
supplies, otber services/charges, and capital outlay/transfers. The budget total is proposed in
tbe amount of $9,281,950. This is a 17.86% or $1,406,550 increase over tbe adopted 2004
budget. The 2005 budget include tbe addition of two part-time employees and seven full-
Budget Memo
September 13, 2004
Page 2 of2
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time employees, one of which is scheduled to begin around mid-year. The budget amount
excludes the cost for painting the fIxe station on Jackson Avenue and the vehicle that is
necessary when the ftre prevention specialist is hired. (These are now planned to be 2004
expenses.)
Following discussion on the 2005 budget and tax levy, the City Council is requested to take
the following action on September 13, 2004:
.
Motion approving a Resolution authorizing the 2005 proposed maximum property
tax levy.
.
Motion approving a Resolution establishing the 2005 tax levy for the Economic
Development Authority.
.
Motion approving a Resolution establishing the 2005 tax levy for the Housing and
Redevelopment Authority.
.
Motion calling for the city to hold its Truth-in- Taxation public hearing on the tax
levy and budget at 6:30 p.m. on December 6, 2004 with a continuation time and date
of 6:30 p.m. on December 13, 2004.
s: ICouncillPatlBudget\20051091304wrksn.doc
RESOLUTION 04 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING THE PROPOSED PROPERTY TAX LEVY
FOR COLLECTION IN 2005
WHEREAS, the Elk River City Council has reviewed the City's anticipated
expenditures for all funds in 2005; and,
WHEREAS, the Elk River City Council has considered projected revenues for
all funds in 2005; and,
WHEREAS, revenues from sources other than property taxes are not sufficient
to meet anticipated expenditures of all funds; and,
WHEREAS, debt levies have been adjusted or cancelled based on revenue
collections and projections.
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 2005:
General Fund
PERA Employer Rate Increase
Street Replacement
Library
Surface Water Management
City Special Assessments
1994 Storm Sewer Bonds
2003 Improvement Bonds
2005 Certificate of Indebtedness
2004 Certificate of Indebtedness
2003 Certificate of Indebtedness
Public Safety Lease Revenue Bonds
Economic Development Tax Abatement
TOTAL
Levv
$5,997,795
150,000
69,000
175,000
23,888
116,994
131,600
86,000
104,733
126,391
638,589
3,995
$ 7,623,985
Passed and adopted by the City Council of the City of Elk River this _
day of September, 2004.
Stephanie Klinzing, Mayor
ATTEST:
Joan Schmidt, City Clerk
,
,
RESOLUTION 04 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION APPROVING THE 2005 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 2005.
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 be levied in the year 2005
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 13th day
of September 2004.
Stephanie A. Klinzing, Mayor
ATTEST:
Joan Schmidt, City Clerk
s: \EDA \DOCUMENT\RESOLUTI\2003\05edalevy.DOC
RESOLUTION 04 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION APPROVING THE HOUSING AND
REDEVELOPMENT AUTHORITY 200S 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 in the City for the benefit of the Housing
and Redevelopment Authority.
Passed and adopted by the City Council of the City of Elk River. Minnesota this 13th day
of September. 2004.
Stephanie A. Klinzing. Mayor
ATTEST:
Joan Schmidt. City Clerk
S:\EDA \HRA \RESOLUTI\2003\05hraLevy.DOC