8.1. SR 09-03-2019
Request for Action
To Item Number
Mayor & Council 8.1
Agenda Section Meeting Date Prepared by
General Business September 3, 2019 Lori Ziemer, Finance Director
Item Description Reviewed by
Set Budget Meeting Date and Adopt Preliminary Cal Portner, City Administrator
2020 Tax Levy
Reviewed by
Action Requested
Set, by motion, the budget meeting for December 2, 2019, at 6:30 p.m. at which public comment
will be taken.
Adopt, by motion, a resolution authorizing the preliminary property tax levy for collection in
2020.
Background/Discussion
The Council must approve the maximum tax levy for certification to the county auditor by September 30,
2019. The attached levy resolution sets the levy at $13,087,770, which includes funding $100,000 for Lake
Orono dredging and $150,000 for government building reserves.
As of the end of August, NTC values for taxes payable 2020 were not yet available from the county so
the preliminary tax rate is based on county estimates received at the start of the budget process.
Since the August 19 meeting, the city was able to reduce the tax levy and general fund budget $18,000.
This reduction results from a $24,500 savings in worker’s comp premiums due to a decrease in the city’s
experience modifier and the additional vendor costs of $6,500 for Elk RiverFest. The 2020 General Fund
budget is currently $17,005,600, which is a 4.8% increase over 2019.
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 2, 2019.
The County Board of Commissioners has set December 2, 2019, 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 2020.
Attachments
Resolution setting City of Elk River property tax levy for collection in 2020
2020 preliminary tax levy
2020 General Fund preliminary budget
Estimated tax impact on residential and commercial/industrial properties
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Resolution 19-____
A Resolution of the City of Elk River Authorizing the Preliminary Property
Tax Levy for Collection in 2020
WHEREAS, the Elk River City Council is required to establish a preliminary tax levy for
taxes payable in 2020 by September 30,2019 and certify the preliminary tax levy to the
Sherburne County Auditor; and,
WHEREAS, the Elk River City Council has reviewed the City’s anticipated expenditures
for all funds in 2020; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2020; 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 2020:
Levy__
General Fund $ 12,160,300
Library 69,000
2010A G.O. Capital Improvement Plan Bonds 619,920
Economic Development Tax Abatement 138,550
Lake Orono Dredging 100,000
TOTAL $ 13,087,770
rd
Passed and adopted this 3 day of September 2019.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
2020 PRELIMINARY TAX LEVY
8/19/20199/3/2019
City of Elk RiverLeviedPreliminaryPreliminary
Tax LevyPay 2019Pay 2020Pay 2020
General Fund$11,187,400$12,178,300$12,160,300
Library 66,00069,00069,000
General Property Tax Levy 11,253,400 12,247,30012,229,300
Special Levies:
2010 GO Public Safety Building Bonds 470,130619,920619,920
Economic Development Tax Abatement 160,235138,550138,550
Government Building Reserve 55,000 - -
Lake Orono Dredging -100,000100,000
Total Levy$11,938,765$13,105,770$13,087,770
General Fund Change from Previous Year$689,600$990,900$972,900
Percentage Change from Previous Year6.6%8.9%8.7%
Total Dollar Change from Previous Year$874,935$1,167,005$1,149,005
% Change7.9%9.8%9.6%
NTC Value$26,006,616$27,436,000$27,436,000 *County Estimate - May
Tax Rate45.907%47.769%47.703%
Levy Reductions
General Fund:
Capital outlay(260,500)
Personal Services -
Recreation(65,500)
Sr. Citizen Programs(41,000)
Code Enforcement(25,000)
Planning(17,500)
Police(18,100)
Workers' comp(24,500)
Elk RiverFest6,500
Govt. Bldg. Reserve(21,685)
Total Levy Reductions($449,285)(18,000)
CITY OF ELK RIVER
2020 GENERAL FUND BUDGET
201820192020%
ACTUALBUDGETPRELIMINARYCHANGE
General Fund Revenues:
Property taxes$ 10,508,700 $11,187,400$12,160,3008.7%
Other taxes 137,532150,000140,000-6.7%
Licenses & Permits 790,831857,000798,500-6.8%
Intergovernmental Revenues 578,324571,500555,500-2.8%
Charges for Services 930,293969,200936,500-3.4%
Fines 137,114154,500140,000-9.4%
Other Revenues 273,799259,500276,5006.6%
Transfers In 2,058,7352,072,1001,998,300-3.6%
Total General Fund Revenues15,415,32816,221,20017,005,6004.8%
General Fund Expenditures
General Government:
Mayor & Council 149,224149,050163,0509.4%
Communications 253,786326,350328,9500.8%
Administrative Services 490,436531,850560,2505.3%
Human Resources 255,559280,500305,8009.0%
Elections 37,614 6,80062,200814.7%
Finance 605,933644,550648,7000.6%
Information Technology 364,601440,000556,30026.4%
Legal 273,462230,000240,0004.3%
Community Development 159,737162,750206,65027.0%
Planning 344,685352,550352,350-0.1%
Building Maintenance 670,808726,550768,0005.7%
Energy City 29,992 31,15027,550-11.6%
Total General Government3,635,8373,882,1004,219,8008.7%
Public Safety:
Police 5,462,9535,856,6506,194,2505.8%
Fire 1,136,8301,353,9001,408,5504.0%
Building Safety 672,567513,500527,9002.8%
Code Enforcement 95,493 115,70095,150-17.8%
Environmental 42,443 32,45053,15063.8%
Total Public Safety7,410,2867,872,2008,279,0005.2%
Public Works:
Street Maintenance 1,213,9101,418,1501,387,200-2.2%
Snow Removal 279,936279,600305,9009.4%
Equipment Services 208,273221,400231,2004.4%
Engineering 206,926357,750385,5007.8%
Total Public Works1,909,0452,276,9002,309,8001.4%
Culture & Recreation:
Parks Maintenance 1,130,6491,147,6001,274,05011.0%
Recreation 739,982792,000721,100-9.0%
Sr. Citizen Programs 227,153250,400201,850-19.4%
Total Culture & Recreation2,097,7842,190,0002,197,0000.3%
Total General Fund Expenditures$15,052,952$16,221,200$17,005,6004.8%
CITY OF ELK RIVER
ESTIMATED TAX IMPACT
Residential (Homestead):
EstimatedTaxTax Capacity Rate
PropertyCapacity45.90747.703
ValueValueEstimated City TaxDollarPercent
2019201920192020changechange
** $241,200$2,257$1,036$1,077$414.0%
** Median Value Home
Commercial/Industrial:
EstimatedTaxTax Capacity Rate
PropertyCapacity45.90747.703
ValueValueEstimated City TaxDollarPercent
2019201920192019changechange
$2,000,000$39,250$18,018$18,723$7053.9%
2018 2019 2020 %
ACTUAL BUDGET PRELIMINARY CHANGE
General Fund Revenues:
Property taxes 10,508,700$ $11,187,400 $12,160,300 8.7%
Other taxes 137,532 150,000 140,000 -6.7%
Licenses & Permits 790,831 857,000 798,500 -6.8%
Intergovernmental Revenues 578,324 571,500 555,500 -2.8%
Charges for Services 930,293 969,200 936,500 -3.4%
Fines 137,114 154,500 140,000 -9.4%
Other Revenues 273,799 259,500 276,500 6.6%
Transfers In 2,058,735 2,072,100 1,998,300 -3.6%
Total General Fund Revenues 15,415,328 16,221,200 17,005,600 4.8%
General Fund Expenditures
General Government:
Mayor & Council 149,224 149,050 163,050 9.4%
Communications 253,786 326,350 328,950 0.8%
Administrative Services 490,436 531,850 560,250 5.3%
Human Resources 255,559 280,500 305,800 9.0%
Elections 37,614 6,800 62,200 814.7%
Finance 605,933 644,550 648,700 0.6%
Information Technology 364,601 440,000 556,300 26.4%
Legal 273,462 230,000 240,000 4.3%
Community Development 159,737 162,750 206,650 27.0%
Planning 344,685 352,550 352,350 -0.1%
Building Maintenance 670,808 726,550 768,000 5.7%
Energy City 29,992 31,150 27,550 -11.6%
Total General Government 3,635,837 3,882,100 4,219,800 8.7%
Public Safety:
Police 5,462,953 5,856,650 6,194,250 5.8%
Fire 1,136,830 1,353,900 1,408,550 4.0%
Building Safety 672,567 513,500 527,900 2.8%
Code Enforcement 95,493 115,700 95,150 -17.8%
Environmental 42,443 32,450 53,150 63.8%
Total Public Safety 7,410,286 7,872,200 8,279,000 5.2%
Public Works:
Street Maintenance 1,213,910 1,418,150 1,387,200 -2.2%
Snow Removal 279,936 279,600 305,900 9.4%
Equipment Services 208,273 221,400 231,200 4.4%
Engineering 206,926 357,750 385,500 7.8%
Total Public Works 1,909,045 2,276,900 2,309,800 1.4%
Culture & Recreation:
Parks Maintenance 1,130,649 1,147,600 1,274,050 11.0%
Recreation 739,982 792,000 721,100 -9.0%
Sr. Citizen Programs 227,153 250,400 201,850 -19.4%
Total Culture & Recreation 2,097,784 2,190,000 2,197,000 0.3%
Total General Fund Expenditures $15,052,952 $16,221,200 $17,005,600 4.8%
CITY OF ELK RIVER
GENERAL FUND BUDGET 2020
Property Taxes
$12,160,300; 71%
Other Taxes
$140,000; 1%
Licenses/Permits
$798,500; 5%
Intergovtl Revenue
$555,500; 3%
Charges for Services
$936,500; 5%
Fines
$140,000; 1% Other Revenues
$276,500; 2% Transfers In
$1,998,300; 12%
General Fund
Revenues by Source
General
Government;
$4,219,800 ; 25%
Public Safety;
$8,279,000 ; 49%
Public Works;
$2,309,800 ; 13%
Culture &
Recreation;
$2,197,000 ; 13%
General Fund
Expenditures By Function
Personal Services
$13,214,750 ; 78%
Supplies
$1,157,550 ; 7%
Services & Charges
$2,633,300 ; 15%
General Fund
Expenditures by Category
8/19/2019 9/3/2019
City of Elk River Levied Preliminary Preliminary
Tax Levy Pay 2019 Pay 2020 Pay 2020
General Fund $11,187,400 $12,178,300 $12,160,300
Library 66,000 69,000 69,000
General Property Tax Levy 11,253,400 12,247,300 12,229,300
Special Levies:
2010 GO Public Safety Building Bonds 470,130 619,920 619,920
Economic Development Tax Abatement 160,235 138,550 138,550
Government Building Reserve 55,000 - -
Lake Orono Dredging - 100,000 100,000
Total Levy $11,938,765 $13,105,770 $13,087,770
General Fund Change from Previous Year $689,600 $990,900 $972,900
Percentage Change from Previous Year 6.6%8.9%8.7%
Total Dollar Change from Previous Year $874,935 $1,167,005 $1,149,005
% Change 7.9%9.8%9.6%
NTC Value $26,006,616 $27,917,994 $27,917,994
Tax Rate 45.907%46.944%46.879%
% Increase in NTC 8.2%7.3%7.3%
Levy Reductions
General Fund:
Capital outlay (260,500)
Personal Services -
Recreation (65,500)
Sr. Citizen Programs (41,000)
Code Enforcement (25,000)
Planning (17,500)
Police (18,100)
Workers' comp (24,500)
Elk RiverFest 6,500
Govt. Bldg. Reserve (21,685)
Total Levy Reductions ($449,285)(18,000)
2020 PRELIMINARY TAX LEVY
Residential (Homestead):
Estimated Tax Tax Capacity Rate
Property Capacity 45.907 46.879
Value Value Dollar Percent
2019 2019 2019 2020 change change
$241,200 $2,257 $1,036 $1,058 $22 2.1%
** Median Value Home
Commercial/Industrial:
Estimated Tax
Property Capacity 45.907 46.879
Value Value Dollar Percent
2019 2019 2019 2020 change change
$2,000,000 $39,250 $18,018 $18,400 $382 2.1%
Estimated City Tax
Estimated City Tax
Tax Capacity Rate
CITY OF ELK RIVER
ESTIMATED TAX IMPACT
Residential (Homestead): With Valuation Change Impact
Tax Capacity Rate
45.907 46.879
Value Dollar Percent
2018 2019 Change 2018 2019 2019 2020 change change
** $229,900 $241,200 4.9%$2,134 $2,257 $979 $1,058 $79 8.1%
** Median Value Home
Estimated Property
Value Estimated City TaxTax Capacity Value