8.5. SR 09-18-2017 E04y1� ,.,�� Request for Action
River
To Item Number
Mayor and Council 8.5
Agenda Section Meeting Date Prepared by
General Business ISeptember 18, 2017 Lori Ziemer, Finance Director
Item Description Reviewed by
Set Budget Meeting Date and Adopt 2018 Tax Levy Cal Portner, City Administrator
Reviewed by
Action Requested
■ Set,by motion, the budget meeting for December 4, 2017, at 6:30 p.m. at which public comment
will be taken.
■ Adopt,by motion, a resolution authorizing the proposed property tax levy for collection in 2018.
Background/Discussion
The Council must approve the maximum tax levy for certification to the county auditor by September 30,
2017.
Over the past several months, the Council has reviewed department goals and corresponding 2018
budgets. Based on Council direction, the attached levy resolution sets the levy at$11,200,830,which is a
6 percent change over last year.
Preliminary 2017 net tax capacity (NTC) values for taxes payable 2018 received from Sherburne County
increase 5.34%. If the NTC remains the same, the city tax rate would be 46.49%which is an increase
from 46.19% for 2017.
Over the next few months staff will continue to review and evaluate cost estimates and revenue data for
further adjustments to finalize the budget for adoption on December 4, 2017.
The County Board of Commissioners has set 6:00 p.m.,December 12, 2017, as the county's budget and
levy hearing date.
Financial Impact
City of Elk River property tax levy for collection in 2018.
Attachments
■ Resolution setting City of Elk River property tax levy for collection in 2018
■ Preliminary 2017 Tax Values (for Proposed 2018 Tax Notices)
■ 2018 preliminary tax levy/rate
■ 2018 General Fund preliminary budget
■ Estimated tax impact on residential and commercial/industrial properties
■ Tax levy history
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAWRE1
City of
Elk
River
Resolution 17-
A Resolution of the City of Elk River Authorizing the Proposed Property Tax
Levy for Collection in 2018
WHEREAS, the Elk River City Council has reviewed the City's anticipated expenditures
for all funds in 2018; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2018; 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,Minnesota, as follows: The following amounts are the maximum to be levied as
property taxes payable in 2018:
Levy—
General Fund $ 10,634,800
Library 54,000
2010A G.O. Capital Improvement Plan Bonds 369,500
Economic Development Tax Abatement 142,530
TOTAL $ 11200.830
Passed and adopted this 181h day of September 2017.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City NATUREJ
SEP e h 2617
September 1, 2017
To: City Administrators, Clerks and Finance Officers
And School District Administrators and Finance Officers
From: Diane Arnold
Re: Preliminary 2017 Tax Values (for Proposed 2018 Tax Notices)
Following is the early Pay 2018 Net Tax Capacity and Market Value information for your
City, Township or School District. Countywide, there is a 6.77% increase in Net Tax
Capacity and a 7.58% increase in total county Taxable Market Value. Please remember
that these values may drop slightly by next spring when final values are certified, due to
abatements, property tax forfeitures, late homesteads and clerical corrections.
Township/City/School District Elk River City
2017 Net Tax Capacity Values 2018 Preliminary NTC Values
RE & PP 23,053,434 24,287,163
Less 10% 200 KV 0 0
Less Captured TIF (184,717) (196,166)
Tax Rate NTC 22,868,717 24,090,997
Taxable Market Value 1,929,048,470 2,048,678,050
MV Referendum 2,012,900,753 2,124,068,434
City of Elk River
Levied
Maximum
Tax Levy
Pay 2017
Pay 2018
General Fund
$9,969,250
$10,634,800
Library
53,650
54,000
10,022,900
10,688,800
General Property Tax Levy
Special Levies:
2010 GO CIP Bonds
368,030
369,500
Economic Development Tax Abatement
172,840
142,530
Total Levy
10,563,770
11,200,830
General Fund Change from 2017
665,550
Percentage Change from 2017
6.7%
Total Dollar Change from 2017
637,060
6.0%
% Change
Note: This will be adjusted as we go thru the budget process and do updates.
NTC Value $22,868,723 $24,090,997
Tax Rate 46.193 46.494
General Fund Revenues:
Property taxes
Othertaxes
Licenses & Permits
Intergovernmental Revenues
Charges for Services
Fines
Other Revenues
Transfers In
Total General Revenues
General Fund Expenditures
General Government:
Mayor & Council
Communications
Administrative Services
Human Resources
Elections
Finance
Information Technology
Legal
Community Development
Planning
Building Maintenance
Energy City
Contingency - 49'ers Union
Total General Government
Public Safety:
Police
Fire
Code Enforcement
Building Safety
Environmental
Total Public Safety
Public Works:
Street Maintenance
Snow Removal
Equipment Services
Engineering
Total Public Works
Culture & Recreation:
Parks Maintenance
Recreation
Sr. Citizen Programs
Total Culture & Recreation
Total General Fund Expenditures
CITY OF ELK RIVER
GENERAL FUND PRELIMINARY BUDGET
2017 2018 % of %
Budget Preliminary Budget Change
$9,969,250
$10,634,800
69.4% 6.7%
140,000
150,000
1.0% 7.1%
714,950
877,900
5.7% 22.8%
293,500
294,500
1.9% 0.3%
891,400
931,500
6.1% 4.5%
155,000
151,000
1.0% -2.6%
217,500
226,500
1.5% 4.1%
1,996,800
2,063,950
13.5% 3.4%
14,378,400
15,330,150
1 100.0% 6.6%
148,800
155,300
1.0% 4.4%
111,300
306,900
2.0% 175.7%
594,450
521,900
3.4% -12.2%
234,450
250,550
1.6% 6.9%
6,600
42,250
0.3% 540.2%
572,200
586,250
3.8% 2.5%
385,100
434,600
2.8% 12.9%
220,000
230,000
1.5% 4.5%
223,400
150,050
1.0% -32.8%
297,450
407,800
2.7% 37.1%
638,850
668,250
4.4% 4.6%
33,800
33,000
0.2% -2.4%
-
53,450
0.3% -
3,466,400
3,840,300
25.1% 10.8%
5,142,250
5,472,550
35.7% 6.4%
908,550
1,034,300
6.7% 13.8%
93,650
98,750
0.6% 5.4%
665,300
678,450
4.4'% 2.0%
47,000
48,400
0.3% 3.0%
6,856,750
7,332,450
47.8% 6.9%
1,304,800
1,336,750
8.7% 2.4%
305,950
298,700
1.9% -2.4%
196,050
205,650
1.3% 4.9%
218,500
234,200
1.5% 7.2%
2,025,300
2,075,300
13.5% 2.5%
1,047,950
1,103,800
7.2% 5.3%
732,400
726,800
4.7% -0.8%
249,600
251,500
1.6% 0.8%
2,029,950
2,082,100
13.6% 2.6%
14,378,400
15,330,150
100.0% 6.6%
These are
actual
properties
in Elk River
Median Val.
CITY OF ELK RIVER
ESTIMATED TAX IMPACT
Residential Homestead :
Commercial/Industrial:
Tax Capacity Rate
Tax Capacity Rate
Estimated
46.193 46.494
46.193 46.494
Total Estimated Tax
2017 2018
Property Value
Value
Change
Tax Capacity
Dollar
change
Percent
change
2017 2018
2017 2018
153,000 163,700
6.99%
1,295 1,412
598 656
58
9.7%
172,600 182,200
5.56%
1,509 1,614
697 750
53
7.6%
262,300 272,500
3.89%
2,487 2,598
1,149 1,208
59
5.1%
170,400 181,000
6.22%
1,485 1,601
686 744
58
8.5%
311,700 323,600
3.82%
3,025 3,155
1,397 1,467
70
5.0%
221,300 40
6.01%
2,040 2,185
942 1,016
74
7.9%
200,000 2023,600,000
0.00%
1,808 1,808
835 840
5
0.6%
196,500 208,400
1 6.06%1
1,769 1,899
817 883
66
8.1%
Commercial/Industrial:
Tax Capacity Rate
46.193 46.494
Property Value
Value
Tax Capacity
Total Estimated Tax
Dollar
Percent
Change
2017 2018
change
change
2017 2018
2017 2018
4,545,300 4,449,500
4,176,900 4,032,300
-2.11%
-3.46%
90,156 88,240
82,788 79,896
41,646 41,026
38,242 37,147
(620)
(1,095)
-1.5%
-2.9%
EkR,'
1,575,700 1,577,800
1,246,900 1,193,300
0.13%
-4.30%
30,764 30,806
24,188 23,116
14,211 14,323
11,173 10,748
112
425
0.8%
-3.8%
2018 Preliminary Tax Levy and Tax Rate
2038 preliminary Levy
Less
Tax Rate
Estimated Tax
CertRied
Net Tax Capacity
Captured TIF
Net Tax Capacity
Capacity Rate Notes
General
10,634,800
24,287,163
(196,166)
24,090,997
44.14%
Library
54,000
24,287,163
(196,166)
24,090,997
0.22%
Bonds
369,500
24,287,163
(196,166)
24,090,997
1.53% Pub. Saf. bonds end with 2021 levy
Tax Abatement
142,530
24,287,163
(196,166)
24,090,997
0.59%
11,200,830
46.49%
%change from PY
6.0%
5.4%
6.2%
5.3%
0.7%
2017 Adopted Levy
Less
Tax Rate
Tax
Certified
Net Tax Capacity
Captured TIF
Net Tax Capacity
Capacity Rate
General
9,969,250
23,053,440
(184,717)
22,868,723
43.59%
Library
53,650
23,053,440
(184,717)
22,868,723
0.23%
Bonds
368,030
23,053,440
(184,717)
22,868,723
1.61%
Tax Abatement
172,840
23,053,440
(184,717)
22,868,723
0.76%
10,563,770
46.19%
%change from PY
3.9%
3.7%
-9.5%
3.8%
0.1%
2016 Adopted Levy
Less
Tax Rate
Tax
Certified
Net Tax Capacity
Captured TIF
Net Tax Capacity
Capacity Rate
General
9,596,850
22,235,275
(204,017)
22,031,258
43.56%
Library
59,400
22,235,275
(204,017)
22,031,258
0.27%
Bonds
370,626
22,235,275
(204,017)
22,031,258
1.68%
Tax Abatement
144,857
22,235,275
(204,017)
22,031,258
0.66%
10,171,733
46.17%
%change from PY
1.5%
3.8%
2.5%
3.8%
-2.2%
2015 Adopted Levy
Less
Tax Rate
Tax
Certified
Net Tax Capacity
Captured TIF
Net Tax Capacity
Capacity Rate
General
9,420,700
21,426,935
(198,997)
21,227,938
44.38%
Library
63,100
21,426,935
(198,997)
21,227,938
0.3091.
Bonds
377,107
21,426,935
(198,997)
21,227,938
1.78%
Tax Abatement
156,450
21,426,935
(198,997)
21,227,938
0.74%
10,017,357
47.19%
%change from PY
1.7%
4.96%
70.89.
4.6%
-2.8%
2014 Adopted Levy
Less
Tax Rate
Tax
Certified
Net Tax Capacity
Captured TIF
Net Tax Capacity
Capacity Rate
General
9,181,289
20,415,273
(116,513)
20,298,760
45.23%
Library
63,100
20,415,273
(116,513)
20,298,760
0.31%
Storm water
50,000
20,415,273
(116,513)
20,298,760
0.25%
Bonds
371,459
20,415,273
(116,513)
20,298,760
1.83%
Tax Abatement
187,987
20,415,273
(116,513)
20,298,760
0.93%
9,853,835
48.54%
%change from PY
-3.2%
0.45%
-5.0%
0.5%
-3.6%
2013 Adopted Levy
Less
Tax Rate
Tax
Certified
Net Tax Capacity
Captured TIF
Net Tax Capacity
Capacity Rate
General
9,203,085
20,323,367
(122,648)
20,200,719
45.56%
Library
63,100
20,323,367
(122,648)
20,200,719
0.31%
Storm water
50,000
20,323,367
(122,648)
20,200,719
0.25%
Bonds
643,497
20,323,367
(122,648)
20,200,719
3.19%
Tax Abatement
216,083
20,323,367
(122,648)
20,200,719
1.07%
10,175,765
50.37%
%change from PY
-1.0%
-8.83%
-82.4%
-6.4%
5.9%