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5.1. SR 09-10-2007REQUEST FOR ACTION To Item Number Ci Council 5.1. Agenda Section Meeting Date Prepared by Worksession Se tember 10, 2007 Lori Johnson, Ci Administrator Item Description Reviewed by 2008 Budget and Tax Levy Reviewed by Action Requested Adopt the following resolutions: • Resolution Authorizing the Proposed Property Tax Levy f or Collection in 2008. • Resolution Approving the Housing and Redevelopment Authority 2008 Tax Levy • Resolution Approving the 2008 Tax Levy for the Economic Development Purposes for the Elk River Economic Development Authority. By motion, set the Truth-in-Taxation hearing for Monday, December 3, 2007, at 6:30 with the continuation hearing for Monday, December 10, 2007, at 6:30. Background/Discussion The proposed maximum tax levies for the City, EDA, and HRA must be certified to the county auditor no later than September 15. Council must also set the date and time for the Truth-in-Taxation and continuation hearings. The Council has discussed the budget and tax levy in detail at several worksessions; the proposed tax levy and budget reflect the decisions made by the Council during those meetings. The Cit~s proposed tax levy is $10,761,311 plus $310,215 for the voter approved referendum. Excluding the referendum levy, the levy is proposed to increase $1,004,254 or 10.29 percent. However, because the net tax capacity (NTC) is estimated by the CountyAssessor to increase 11.65 percent, the Cit~s tax rate is proposed to decrease from 43.056 percent to 42.531 percent. The estimated referendum tax rate is .000143. This levy is applied to the market value of property instead of the NTC. C-f course, both of these rates will change slightlybased on the Cit~s final NTC as determined bythe County Assessor. The referendum levy is less than originally estimated at the time of the election because of the Sherburne County Landfill Abatement Legacy Grant that was awarded f or this project. The grant will be used to reduce the referendum tax levy by $250,000 for the next five years and by $189,000 for the sixth year of the levy. The proposed General Fund budget is $12,475,700 with the minor changes made at the last work session and several other small corrections and adjustments. This is an increase of 7.5 percent over the 2007 budget. Attached is a summary of the proposed General Fund budget showing the proposed budget and the change f rom the 2007 budget. S:\Cotmcil\Lori\2007\Budget & Levy Approva109 10 07.doc Attachments • Resolution Authorizing the Proposed Property Tax Levy for Collection in 2008 • Resolution Approving the Housing and Redevelopment Authority 2008 Tax Levy • Resolution Approving the 2008 Tax Levy for the Economic Development Purposes for the Elk River Economic Development Authority. • Proposed General Fund Budget Summary including the Expenditure SummaryData • Preliminary Levy and Tax Rate Data • Five Year History of Elk River Property Tax Data Action Motion by Second by Vote Follow Up S:\Council\Lori\2007\Budget &LevyApprova109 10 07.doc ~ e Sc~ (~~ ~.~~c,~ RESOLUTION 07 - A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION AUTHORIZING THE PROPOSED PROPERTY TAX LEVY FOR COLLECTION IN 2008 WHEREAS, the Elk River Ciry Council has reviewed the City's anticipated expenditures for all funds in 2008; and, WHEREAS, the Elk River City Council has considered projected revenues fox all funds in 2008; 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, THER EFORE, BE IT RESOLVED by the City Council of the City of Elk River that the following amounts axe the maximum to be levied as property taxes payable in 2008: Lev General Fund $ 9,139,350 Library 78,350 Surface Water Mgmt. 100,000 City Special Assessments 18,286 1994 Storm Sewer Bonds 1 ] 7,380 2005 Improvement Bonds 89,900 2005 Certificate of Indebtedness 155,478 2006 Certificate of Indebtedness 95,569 2007 Certificate of Indebtedness 112,226 Public Safety Lease Rev. Bonds 634,440 2007 Improvement Bonds 122,864 Economic Development Tax Abatement 97,168 TOTAL LEVY $ 10,761,311 Passed and adopted by the City Council of the Ciry of Elk River this 10th day of September, 2007. Stephanie Klinzing, Mayor ATTEST: Tina Allard, Ciry Clerk Passed and adopted by the City Council of the City of Elk River this 10th day of September, 2007. Stephanie Klinzing, Mayor ATTEST: Tina Allard, City Clerk 2008 Max Levy Resol RESOLUTION 07 - A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION APPROVING THE HOUSING AND REDEVELOPMENT AUTHORITY 2008 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 .0144% 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 .0144% 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 10~ day of September, 2007. Stephanie Klinzing, Mayor ATTEST: Tina Allard, City Clerk S:\Resolutions\Levy Format HRA for CC.DOC RESOLUTION 07 - A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION APPROVING THE 2008 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 yeax of 2008. 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 2008 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.se . Passed and adopted by the City Council of the City of Elk River, Minnesota this 10~ day of September, 2007. Stephanie Klinzing, Mayor ATTEST: Tina Allard, City Clerk S:\Resolutions\Levy Format EDA for CC.DOC SOURCE OF FUNDS - GENE3~AL FUND 2005 ACTUAL 2006 ACTUAL 2007 ADOPTED 2008 PROPOSED % of Total $ increase % Increase TAXES $ 5,770,666 $ 6,967,985 $ 8,313,000 $ 9,189,350 73.66% $ 876,350 10.54% INTERGOVERNMENTAL REVENUES 1,303,828 1,314,482 920,150 951,900 7.63% 31,750 3.45% CHARGES FCR 5ERV1CE5 947,673 835,804 789,200 766,950 6.15% (22,250) -2.82°,% FINES AND FORFEITS 164,216 150,402 159,500 160,000 1.28% 500 0.31% LICENSES & PERMITS 1,240,338 1,207,369 870,700 683,500 5.48% (187,200) -21.50% OTHER REVENUES 174,253 275,303 132,200 251,000 2.01% 118,800 89.86% TRANSFERS 502,635 442,186 421,000 473,000 3.79% 52,000 12.35% TOTAL S 10,103,609 $ 11,193.531 $ 11,605,750 $ 12.475,700 100.00% $869,950 7.50°,~0 " =Market value credit is included in the 2007 & 2008 as part of the Taxes amount and when received is recorded as intergovemmentai revenues. APPROPRlAT10NS SUMMARY 2005 2006 2007 2C08 % of % $$ 2007 ACTUAL AMENDED ADOPTED PRCPOSED Total Change Increase % of Total General Government MAYOR & COUNCIL $ 188,282 $ 200,950 $ 210,150 $ 225,050 1.80% 7.09% $ 14,900 1.8 i°,~° CABLE TV 75,465 88,700 92,400 99,150 0.79% 7.31% $ 6,750 0.80°/a ADMINISTRATION 480,144 420,^050 439,250 455,950 3.65°l0 3.80% $ 16,700 3.78% HUMAN RESOURCES - - 83,500 156,150 1.25% 87.01% $ 72,650 0.72% ELECTIONS - 35,900 - 40,850 0.33% #DIV(0! 3 40,850 0.00% FINANCE 457,081 508,300 450,050 433,350 3.47% -3.71% $ (16,700) 3.88°~ INFORMATION TECYNGLOGY 169,900 250,700 237,350 255,300 2.05% 7.56°1° $ 17,950 2.05% LEGAL 218,033 242,450 249,850 234,700 1.88% -6.06% $ (15,150) 2.15% COMMUNITY DEVELOPMENT - 451,950 170,300 182,000 1.46% 6.87% $ 11,700 1.47% PLANNING 348,262 451,950 294,450 328,100 2.63% 11.43% $ 33,650 2.54% CITY HALL 194,199 211,300 245,150 299,550 2.40% 22.19% $ 54,400 2.11% CONTINGENCY - 82,400 89,000 60,000 0.48% -32.58% $ (29,000) 0.77% ENERGY CITY 14,073 40,000 42,300 76,300 0.61% 80.38% $ 34,000 0,36% General Government 2,145,439 2,985,250 2,603,750 2,846,450 22.82% 9.32% $ 242,700 22.43% Public Safety POLICE 3,240,760 3,567,850 3,745,150. 4,184,500 33.54% 11.73% $ 439,350 32.27% FIRE 546,424 632,000 627,750 638,350 5.12°/0 1.69% $ 10,600 5.41% EMERGENCY MANAGEMENT 22,668 42,300 43,100 52,250 0.42% 21.23% $ 9,150 0.37% BUILDING & ENVIRONMENTAL 727,724 815,400 673,900 801,500 6.42% 18.93% $ 127,600 5.81% ENVIRONMENTAL - - 88,050 87,050 0.70% -1.14% $ (1,000) 0.76% Public Safety 4,537,576 5,057,550 5,177,950 5,763,650 46.20% 11.31% $ 585,700 44.62% Public Works STREETS 926,853 930,100 1,292,650 1,197,100 9.60% -7.39% $ (95,550) 11.14% SNOW REMOVAL 165,996 255,200 304,550 297,650 2.39% -2.27% $ (6,900) 2.62% EQUIPMENT SERVICES 255,677 270,250 235,700 278,800 2.23% 18.29% $ 43,100 2.03% ENGINEERING 67,165 163,000 209,100 174,350 1.40% -16.62% $ (34,750) 1.80% Public Works 1,415,691 1,618,550 2,042,000 1,947,900 15.61% -4.61% $ 423,450 17.59% Culture & Recreation PARK MAINTENANCE 452,504 535,250 678,150 . 666,550 5.84% 26.70% $ 142,900 4.81% RECREATION 663,329 649,350 743,400 782,200 6.41% 14.48% $ 94,050 5.84% SR. CITIZEN PROGRAMS 101,484 110,750 165,900 200,500 1.43% 49,80% $ 55,150 1.00% Culture ~ Recreation 1,217,317 1,295,350 1,587,450 1,649,250 - 13.68% 22.55% $ .292,100 11.64% TRANSFERS 150,902 170,150 194,600 268,450 1.68% 14.37% $ 24,450 1.53% TOTAL $ 9,466,925 $11,126,850 $11,605,750 $12,475,700 99.98% 7.50% $ 869,950 100.00% p N- W N C ~ u~ ~' N b~ N .~ i~ _ N .~ . ~ ~ • _ ~ - G _ O u r~ ~ ci ~c p v .~ ca -~ a?og2' ~P oyd ~ ~ _ ~iC ei .~..~. -~ o ~ - ~ o, ~. is ~ w u - ~ - p ~ N C ~ Y ° n 't ' o .- ~ r m r 2 Y N ~^ae ~~ j ae c ~~ae~~aeWS~gB op o Nay ~ U [o •YN r d :. V ~ N ca ~- ` N f O C ` F 'O Y ~ aC O O M' iQ o ~ dF - eE ~ eC o Y $3 ~ i, ebi~N x .. a q C i e - rt "- h ~ ~n m c~ O Z V E ~ ~°a `m m' F x W ~ V v d! 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Q c c ai ° ~ aq z '. -~ w` ~ m m v d E ~ q° o s' ~' E m U m E O a~i m E y F E pE ~~ PRELIMINARY LEVY AND TAX RATE DATA (Based on estimated NTC) FOR TAXES PAYABLE 2008 Net Levy General Fund $ 9,139,350 Library 78,350 Surface Water Mgmt. 100,000 City Special Assessments 18,286 1994 Storm Sewer Bonds 117,380 2005 Improvement Bonds 89,900 2005 Certificate of Indebtedness 155,478 2006 Certificate of Indebtedness 95,869 2007 Certificate of Indebtedness 112,226 Public Safety Lease Rev. Bonds 634,440 2007 Improvement Bonds 122,864 Economic Development Tax Abatement 97,168 $ 10,761,31.1 Total Levy NTC Levy Tax Rate Increase Final NTC -March 2007 22,661,722 9,757,057 43.056% County Estimate 8/27107 2008 Estimated Tax Rate 25,302,506 10,761,311 42.531% 1,004,254 Market Value Referendum Levy County Estimate 8/27/07 2,160,550,950 YMCA Levy 310,215 Referendum Tax Rate 0.000143581 Percent Levy Increase 10.29% 9/7/2007 2008 tax Levy.xls CITY OF ELK RIVER PROPERTY TAX DATA Five Year History Levy Year 2007 2006 2005 2004 2003 Tax Payable Year 2008 2007 2006 _ 2005 2004 LEVY Total Levy Limited Levy Special Levy Unlimited Levy $ 10,761,311 $ 9,857,057 $ 8,823,793 $ 7,623,985 $ 6,564,803 5,361,598 1,203,205 10,761,311 9,858,057 8,823,793 7,623,985 Net Levy 10,761,311 9,757,057 8,823,793 7,623,985 6,564,803 Percent Increase(Decrease) 10.29% 10.58% 15.74% 16.13% 9.78% Levy Distribution (Gross) General Fund 9,139,350 8,263,032 7,220,536 5,997,795 5,129,273 Library 78,350 150,000 69,000 69,000 69,000 Debt Service 712,003 588,925 725,899 589,606 549,423 Dam Loan 0 0 0 0 0 SWM 100,000 100,000 175,000 175,000 175,000 Development Fund 0 0 0 0 0 Infrastructure/Capital Imp. 0 0 0 150,000 Public Safety Building 634,440 634,359 630,165 638,589 638,263 Tax Rebate Financing 97,168 20,741 3,193 3,995 3,844 Referendum Levy 310,215 Estimated 8/27107 PROPERTY VALUES County Assessor Market Value 2,188,648,900 2,012,917,400 1,786,411,900 1,538,113,450 1,310,625,938 Percent Increase 8.73% 12.68% 16.14% 17.36% 13.47% Total Net Tax Capacity 26,121,884 23,448,517 20,760,833 18,075,790 15,603,373 Percent Increase 11.40% 12.95% 14.85% 15.85% 11.51 TIF Tax Capacity 819,378 786,795 675,049 654,325 608,609 Percent of Total 3.14% 3.36% 3.25% 3.62% 3.90% Taxable Net Tax Capacity 25,302,506 22,661,722 20,085,784 17,421,465 14,.994,764 Percent Increase 11.65% 12.82% 15.29% 16.18% 11.86% TAX RATES Proposed City 42.531% 43.056% 43.929% 43.763% 43.782% County School HRA EDA Total NTC Rate School Market Value Rate City Market Value Ref. Rate Education Homestead Credit State of Minnesota Tax (C/I) 0.00014% 41.851 % 44.576% 44.616% 45.249% 33.208% 36.832% 32.848% 30.953% 1.164% 1.162% 1..158% 1.145% 1.610% 1.608% 1.603% 1.585% 120.889% 128.107% 123.988% 122.714% 0.14364% 0.15490% 0.14787% 0.15363% n/a n/a n/a n/a 48.032% 51.000% 51.121% 54.109% 9/7/2007