8.2. SR 09-17-2018 E04y1� ,.,�� Request for Action
River
To Item Number
Mayor& Council 8.2
Agenda Section Meeting Date Prepared by
General Business TSeptember 17, 2018 Lori Ziemer, Finance Director
Item Description Reviewed by
Set Budget Meeting Date and Adopt 2019 Tax Levy Cal Portner, City Administrator
Reviewed by
Action Requested
■ Set,by motion, the budget meeting for December 3, 2018, 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 2019.
Background/Discussion
The Council must approve the maximum tax levy for certification to the county auditor by September 30,
2018. Based on Council direction, the attached levy resolution sets the levy at$11,938,765,which is a
7.9% change over last year.
The preliminary 2018 net tax capacity (NTC) value for taxes payable 2019 received from Sherburne
County is $26,257,399, an increase over 9%. If the NTC remains the same, the city tax rate would be
45.468 percent,which is a decrease from the 46.01 percent for 2018.
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 3, 2018.
The County Board of Commissioners has set December 10, 2018 at 6:00 p.m. as the county's budget and
levy hearing date.
Financial Impact
City of Elk River property tax levy for collection in 2019.
Attachments
■ Resolution setting City of Elk River property tax levy for collection in 2019
■ Preliminary 2018 Tax Values (for Proposed 2019 Tax Notices)
■ 2019 preliminary tax levy/rate
■ 2019 General Fund preliminary budget
■ Estimated tax impact on residential and commercial/industrial properties
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 18-
A Resolution of the City of Elk River Authorizing the Proposed Property Tax
Levy for Collection in 2019
WHEREAS, the Elk River City Council has reviewed the City's anticipated expenditures
for all funds in 2019; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2019; 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 2019:
Levy—
General Fund $ 11,242,400
Library 66,000
2010A G.O. Capital Improvement Plan Bonds 470,130
Economic Development Tax Abatement 160,235
TOTAL $ 11.938.765
Passed and adopted this 171h day of September 2018.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City NATUREJ
City of Elk River Levied Maximum
Tax Levy Pay 2018 Pay 2019
General Fund $10,497,800 $11,242,400
Library 54,000 66,000
General Property Tax Levy 10,551,800 11,308,400
Special Levies:
2010 GO CIP Bonds 369,500 470,130
Economic Development Tax Abatement 142,530 160,235
Total Levy $11,063,830 $11,938,765
General Fund Change from Previous Year 744,600
Percentage Change from Previous Year 7.1%
Total Dollar Change from Previous Year 874,935
% Change 7.9%
NTC Value $24,046,382 $26,257,399
Tax Rate 46.01 45.468
2018 2019 % of %
Budget Preliminary Budget Change
General Fund Revenues:
Property taxes $10,497,800 $11,242,400 69.1%7.1%
Other taxes 150,000 150,000 0.9%0.0%
Licenses & Permits 877,900 857,000 5.3%-2.4%
Intergovernmental Revenues 324,500 571,500 3.5%76.1%
Charges for Services 937,900 969,200 6.0%3.3%
Fines 151,000 154,500 0.9%2.3%
Other Revenues 226,500 259,500 1.6%14.6%
Transfers In 2,063,950 2,072,100 12.7%0.4%
Total General Fund Revenues 15,229,550 16,276,200 100.0%6.9%
General Fund Expenditures
General Government:
Mayor & Council 155,300 149,050 0.9%-4.0%
Communications 306,900 326,800 2.0%6.5%
Administrative Services 511,900 532,200 3.3%4.0%
Human Resources 250,550 280,750 1.7%12.1%
Elections 42,250 6,800 0.0%-83.9%
Finance 586,250 645,600 4.0%10.1%
Information Technology 431,300 447,400 2.7%3.7%
Legal 230,000 230,000 1.4%0.0%
Community Development 150,050 163,050 1.0%8.7%
Planning 405,800 353,000 2.2%-13.0%
Building Maintenance 679,750 714,550 4.4%5.1%
Energy City 33,000 31,200 0.2%-5.5%
Contingency - 160,800 1.0%-
Total General Government 3,783,050 4,041,200 24.8%6.8%
Public Safety:
Police 5,470,050 5,756,450 35.4%5.2%
Fire 955,000 1,150,900 7.1%20.5%
Building Safety 678,450 723,450 4.4%6.6%
Code Enforcement 98,750 115,700 0.7%17.2%
Environmental 48,400 32,500 0.2%-32.9%
Total Public Safety 7,250,650 7,779,000 47.8%7.3%
Public Works:
Street Maintenance 1,355,450 1,413,100 8.7%4.3%
Snow Removal 298,700 279,600 1.7%-6.4%
Equipment Services 210,400 216,300 1.3%2.8%
Engineering 234,200 368,100 2.3%57.2%
Total Public Works 2,098,750 2,277,100 14.0%8.5%
Culture & Recreation:
Parks Maintenance 1,118,800 1,135,450 7.0%1.5%
Recreation 726,800 792,900 4.9%9.1%
Sr. Citizen Programs 251,500 250,550 1.5%-0.4%
Total Culture & Recreation 2,097,100 2,178,900 13.4%3.9%
Total General Fund Expenditures $15,229,550 $16,276,200 100.0%6.9%
CITY OF ELK RIVER
GENERAL FUND BUDGET
Residential (Homestead):
Tax Capacity Rate
46.01 45.468
Value Tax Capacity Dollar Percent
2017 2018 Change 2018 2019 2018 2019 change change
163,700 178,900 9.3%1,412 1,578 650 717 67 10.3%
182,200 207,500 13.9%1,614 1,889 742 859 117 15.8%
272,500 297,400 9.1%2,598 2,869 1,195 1,305 110 9.2%
181,000 199,300 10.1%1,601 1,800 736 818 82 11.1%
323,600 338,800 4.7%3,155 3,321 1,452 1,510 58 4.0%
234,600 253,600 8.1%2,185 2,392 1,005 1,088 83 8.3%
Median Value 208,400 229,900 10.3%1,899 2,134 874 970 96 11.0%
200,000 200,000 0.0%1,808 1,808 832 822 (10)-1.2%
Commercial/Industrial:
4,449,500 4,513,000 1.43%88,240 89,510 40,599 40,698 99 0.2%
4,032,300 3,968,500 -1.58%79,896 78,620 36,760 35,747 (1,013)-2.8%
1,577,800 1,597,000 1.22%30,806 31,190 14,174 14,181 7 0.0%
1,193,300 1,179,400 -1.16%23,116 22,838 10,636 10,384 (252)-2.4%
CITY OF ELK RIVER
ESTIMATED TAX IMPACT
Total Estimated Tax
Estimated
Property Value