6.0. SR 12-16-1996ITEM 6.
ity of
E,
iver
MEMORANDUM
Mayor & City Council
FROM: Pat Klaers, City Administrator
DATE:
December 16, 1996
SUBJECT: Consider 1997 Municipal Budget and
Tax Levy Resolution
In September the City Council adopted its proposed maximum budget and
tax levy resolution. In a budget worksession on November 25, 1996, the City
Council balanced the proposed 1997 budget in the amount of $4,535,850. The
proposed budget reflects a 10.77 percent or $441,100 increase over the
adopted 1996 budget.
The net tax levy for 1997 is proposed in the amount of $2,986,809. The
proposed net levy is $389,370 more than the adopted 1996 net levy. The
majority of the net levy (approximately 83 percent) is for general fund
activities and almost all of the net levy increase is for general fund purposes.
The gross levy proposal of $3,570,055 is $406,236 more than the adopted
1996 gross levy.
The Truth in Taxation public hearing was held on December 2, 1996, in order
to receive public input on the proposed budget and tax levy resolution for
1997. After a 30 minute presentation on the proposed budget and tax levy
there were no citizens who spoke at this public hearing.
The tax levy resolution as presented reflects a 3.9 percent increase in the city
tax rate. Originally the tax rate increase was projected to be 3.1, but this
was based on growth in the net tax capacity (NTC) of about 12 percent. The
city has recently been advised that our NTC will increase by about 11
percent, and, therefore, to generate the same amount of tax revenues, the city
tax rate will go up slightly more. If the City Council desires to have the tax
rate increase closer to the 3.1 percent, then $25,500 worth of reductions in
the tax levy will have to be made. This reduction in tax revenue can be made
up in the budget by either cuts in expenditures or additional non tax revenue
being added. If this $25,500 tax levy reduction takes place, it is
recommended that the budget be adjusted to add revenues from the cash flow
reserves. Hopefully then at the end of 1997, this transfer can be canceled
through a budget amendment if revenues exceed the budgeted amount.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
Please note that the actual 1997 tax rate change may be slightly different as
we still do not have a final NTC growth figure from the county.
Recommendation
· It is recommended that the City Council adopt a tax levy resolution and
the city budget.
If the Council is committed to adding a mechanic to the street/park
department, then it is recommended that the City Council authorize Phil
to advertise for this position. (See attached memo.) The funds for this
1997 position are in the City Council Contingency Fund.
Attachments
· Memo from Phil Hals requesting advertisement for mechanic position
· December 2, 1996, tax levy resolution
· December 16, 1996, tax levy resolution
· Revenues pages
· Expenditures page
· League of Minnesota Cities tax rate summary page
· October 18, 1996, Star Tribune City tax rate information
\council\bdttxlvy.doc
'ity of
iver
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Phil Hals, Street/Park Supt.
December 16, 1996
1997 Mechanic Position for the Street
Department
The 1997 budget identifies the addition of a mechanic position for the street
department and I am requesting City Council approval to advertise for this
job opening as soon as the 1997 budget is approved.
I would propose a starting salary of $15.26, or the top of the 1996
Maintenance II pay range, with an increase of 3 percent as of July I if the
candidate has a successful probationary period. I would also like to have the
option of moving the candidate up to the Maintenance III schedule in July of
1998 if all performance reviews are satisfactory.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
RESOLUTION 96 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING THE FINAL TAX LEVY
FOR CALENDAR YEAR 1997
WHEREAS, the Elk River City Council has review the City's anticipated
expenditures for all funds in 1997; and,
WHEREAS, The Elk River City Council has considered projected revenues for
all funds in 1997; and,
WHEREAS, revenues from sources other than property taxes are not sufficient
to meet anticipated expenditures of all funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that
the General Fund Budget in the amount of SZ~,53~,g~O is hereby adopted.
BE IT FURTHER RESOLVED by the City Council of the City of Elk River that the
following amounts are to be levied as property taxes payable in 1997
General Fund
Library
Dam Loan
Surface Water Management
Development Fund
City Special Assessments
1989 Fire Equipment
1993 Certificate of Indebtedness
1994 Certificate of Indebtedness
1995 Certificate of Indebtedness
1996 Certificate of Indebtedness
1997 Certificate of Indebtedness
HACA
Gross Levy Reduction Net Levy
$2,965,300
54.950
32.572
169 100
125 000
33
68
13
24.
26.
26.
31.
$ 499
.9
5
28
21
577 5
586
000
393
327
250
000
396
254
486
479
O52
655
11 551
2 189
4 108
4 434
4 421
5,221
$2,465
45
27
140
103
27
57
10
20
21
21
25
9O4
696
O86
621
948
922
O35
811
285
893
829
779
TOTAL $3,570,055 $ 601,246 $2,968,809
Passed and adopted by the City Council of the City of Elk River this
day of December, 1996.
ATTEST:
Henry A. Duitsman, Mayor
Sandra A. Thackeray, City Clerk
38.
RESOLUTION 96-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING THE FINAL TAX LEVY
FOR CALENDAR YEAR 1997
WHEREAS, the Elk River City Council has review the City's anticipated
expenditures for all funds in 1997; and,
WHEREAS, The Elk River City Council has considered projected revenues for
all funds in 1997; and,
WHEREAS, revenues from sources other than property taxes are not sufficient
to meet anticipated expenditures of all funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that
the General Fund Budget in the amount of $4,535,850 is hereby adopted.
BE IT FURTHER RESOLVED by the City Council of the City of Elk River that the
following amounts are to be levied as property taxes payable in 1997
General Fund
Library
Dam Loan
Surface Water Management
Development Fund
City Special Assessments
1989 Fire Equipment
1993 Certificate of Indebtedness
1994 Certificate of Indebtedness
1995 Certificate of Indebtedness
1996 Certificate of Indebtedness
1997 Certificate of Indebtedness
Gross Levy
$2,939,800
54 950
32 572
169100
125 000
33 577
68 586
13 000
24 393
26 327
26.250
31.000
HACA
Reduction
Net Levy
498,664 $2,441,136
9,321 45,629
5,525 27,047
28,684 140,416
21,203 103,797
5,696 27,881
11,634 56,952
2,205 10,795
4,138 20,255
4,466 21,861
4,453 21,797
5,258 25,742
TOTAL $3,544,555 $ 601,246 $2,943,309
Passed and adopted by the City Council of the City of Elk River this 16th
day of December, 1996.
A'i-I'EST:
Henry A. Duitsman, Mayor
Sandra A. Thackeray, City Clerk
SOURCE OF FUNDS
GENERAL PROPERTY TAX
INTERGOVERNM'ENTAL REVENUES
CHARGES FOR SERVICES
FINES & FORFEITS
LICENSES & PERMITS
OTHER REVENUES
TRANSFERS
TOTAL
1994
ACTUAL
91,520
924
375
76
244
148
258
$3,548
,021
685
878
370
018
799
65O
421
1995
ACTUAL
91,801,547
941 211
392 941
73,058
287,446
157,605
297,600
93,951,408
1996
ADOPTED
92,128,500
909,750
396,050
75,000
232,750
125,700
227,00O
94,094,750
1997
PROPOSED
$2,465,900
1,015,700
377,300
77,000
267,000
138,900
194,050
$4,535,850
GENERAL PROPERTY TAX
Ad Valorem Tax
INTERGOVERNMENTAL REVENUES
Local Government Aid
HACA
Local Performance Aid
Police Relief
Gravel Tax
Urban Street Maintenance
Cops Fast Grant
Police Training Reimbursement
CHARGES FOR SERVICES
GENERAL GOVERNMENT
Administrative Project Fees
Plan Check Fees
Planning & Zoning Fees
Sewer Inspection Fees
Miscellaneous Sales
Assessment Searches
PUBLIC SAFETY
School Liaison
Police Contract
Police Contribution (NSP & Landfill
Impound Fees
Fire Calls & Contracts
PUBLIC WORKS
Street Services
......................................... $2,465,900
227,600
499,400
14,950
99,000
39,500
28,000
101,750
5,500
20,000
91,000
13,500
5OO
1,500
5,500
75,000
5,000
39,500
8OO
65,100
2,000
$2,465,900
1,015,700
SOURCE OFFUNDS
RECREATION
Recreation Fees
Softball League Fees
FINES & FORFEITS
Court Fines
LICENSES & PERMITS
PERMITS
Building Permits
Building Permit Surcharge
Plumbing & Heating Permits
Contractor License Surcharge
LICENSES
Dog
Cigarette
Liquor
Amusement
Gas Fitters
Garbage Haulers
Mineral Extraction
Apartment Licenses
Other Business
OTHER REVENUE
Interest
Landfill Surcharge
Contribution-Municipal Utilities
Contribution-Guardian Angels
Refunds & Reimbursements
TRANSFERS
Liquor ........................................
Equip & Program Rsrv (Municipal Serv.) ........................................
Street Reserve ........................................
Sewer ........................................
Economic Development Authority ........................................
Housing & Redevelopment Authority ........................................
TOTAL
48,900
9,000
377,300
77,000
77,0OO
172,000
8OO
35,000
3,700
1,000
500
24,500
1,850
1,500
550
9,800
12,700
3,100
267,000
45,000
11,200
78,000
3,700
1,000
138,900
123,450
28,100
35,000
6,000
1,000
5OO
194,050
$4,535,850
APPROPRIATIONS SUMMARY
MAYOR & COUNCIL
ADMINISTRATION & FINANCE
ECONOMIC DEVELOPMENT
ELECTIONS
LEGAL
ENGINEERING
BUILDING & ZONING
SUSTAINABLE CITY
PLANNING
PLANNING COMMISSION
DATA PROCESSING
GOVERNMENT BUILDINGS
POLICE
POLICE RESERVE
FIRE
EMERGENCY PREPAREDNESS
STREETS
EQUIPMENT REPAIR & MAINT.
SNOW REMOVAL
STREET LIGHTING
SHADE TREE
PARKS
RECREATION
SR. CITIZEN PROGRAMS
CONTINGENCY
TOTAL
1994 1995 1996 1997
Actual Actual Adopted Proposed
62,983 69,227 75,500 76,800
382,008 431,966 464,450 497,450
38,371 35,512 34,800 31,550
11,287 7,500 23,300 18,500
42,404 52,414 47,500 54,000
26,131 33,440 30,000 34,000
237,233 257,139 273,200 313,750
- 30,200
114,709 129,082 144,200 165,700
3,139 6,211 6,450 6,800
19,889 21,724 21,300 36,050
95,962 99,551 101,150 104,000
1,299,970 1,378,641 1,449,600 1,623,900
16,696 26,570 21,750 24,600
301,624 253,318 245,950 278,750
10,731 8,383 8,400 13,350
438,570 404,153 422,600 462,150
78,957 94,898 96,400 99,900
60,445 66,962 82,550 97,850
890 1,085 1,500 1,500
5,585 6,188 11,600 11,600
104,625 122,663 139,200 140,550
118,050 134,068 162,850 166,000
31,387 35,494 37,000 39,300
7,442 14,555 193,500 207,600
3,509,088 3,690,744 4,094,750 4,535,850
TT_.
City
1995 Population
7 Count.¥ Metro
Andover
Anoka
Chanhassen
Chaska
Hastings
Lino Lakes
Mendota Heights
Moundsview
N. St. Paul
Prior Lake
Ramsey
Rosemount
Savage
Shakopee
Stillwater
Vadnais Heights
White Bear Lake Twp.
20,497
17,533
15,231
14,000
16. 392
13.097
10.757
12 561
12.813
13 129
15 805
11721
14.444
13 752
15 649
12 342
10.529
~Cities Experiencing Modest/Rapid Growth
Non Metro
Fairmount
Fairbault
Fergas Falls
Hutchinson
Marshall
New Ulm
N. Mankato
Northfield
Willmar
Worthington
11 340
18 727
12,874
12 505
12 331
13,628
11,340
15,667
18 688
10,260
Average Total
Tax Rate
for 1996
116.97
123.99
151.31
138.73
125.20
128.43
111.38
136.95
130.29
144.53
115.31
126.02
148.97
140.08
133.92
127.42
125.17
117.41
134.43
120.92
142.80
118.43
125.44
125.72
112.33
131.88
122.29
Becket 1,453 75.01
Big Lake 3,800 113.53
Otsego 6,116 122.22
Rogers 1,264 118.12
Zimmerman 1,865 104.10
ELK RIVER 13,286
Source: September 1996 League of MN Cities Magazine
s:kadmin\citypop.doc
103.50
Fr~oa¥. OctoOe~ 18.1996
Cop~ighl ].996 Star Tribune
The 1996 property tax burden
Property taxes for average homeowners in the Twin Cities rose by an average
$148, or 7.5 percent, in 1996. For nonmetro communities, P~oDerty [axes rose
by an average $61, o~ 6.9 percent, according to the Citizens League and Min-
nesota Taxpayers Association stuOy,
Taxes on a $105,000 home
1996 tax, Rank* Percent
ge ~r~) ' c:/~e In
Anoka County utt~ ~
An~m~ ..: .'. '$1,653' ' 86 ' 32% ~
An~ka 1,756 67 3.7% Mo~n~ View
Blaine '.' ; ' :, : 1,699 ; .: 79 · . 62% New B~9~ton
Bums Twp. 1,551 101 5.6% Nm'th Oaks
Ctmle Pln~ * ., 1,773 64 -1.5% Nerffi St. Paul
Columbia Ht~ 1,670 82 -13.3% Roseville
Cok~mbusTwp. *.i 1,468 103 -12.3% S~xavlew
1996 tax, Rank* Pmcent
ge dollars) change in
2~)32 13 0,4%
1.933 3O -7,4%
1,890 39 -33%
1,785 .~ 59 -2,4%
1.648 90 -3.3% ;'
1,826 ' 52
1,955 22 01%
1`808 56 -2.4%
Com~ Rapids 1.662 84 3.5% St. Paul 2./13 5 0.7%
Fast BeU~ 'i,~:, 1,728 72 5.5% Yadnals Halg~t~ ../.751 68 -7,4%
Fddley , 1'828 51 5.1% White Bear L,d<e 1,770 65 -9,5%
Nam Lake .' , 2.591 96 5~% WhNe Bear Twp. /.729 - 70 -7`4%
Uno Lakes 1'810 55 -2.4%
UnweodTwp. ' i 1,467 104 -162% Scott County
Oak Grove 1,916 34 0,4% Belie Plalne 1.973 19 -1Z2%
Rarnsey ':" ' "1,662 85' 42~r~ Gredlt River TWP. 1,663 83 -6.9%
Spring lake Pad( 1,764 61 6.6% .~ 2,019 15 ' -11.5%
St. Francis ' .*i~.~ '* 1,909 · 37 4.5% New Market TWP. 1'819 54 -10.2%
Cai'verCounty NewPmg~ 2280 . I .0.1%
Prim Lake 2,09 2 7
Cimntmssefl ,d'*' 21:)64 10 '.0.1% Savage 2.111 ' 6 -82%
C~aska 1-°14 36 -0.2% Shakopee 1529 31. -8.5%
Victoria . 2.076 9 -3./% SpdngL=,kaTwp. 1,683 80 -7.4%
Waco~a 2.i83 2 *5-l%
Watertow~ .. 1,961.. 21 -Z6% Washington County
Dakota County Atto..-... 1559 ' 99
Bayport 1,923 32 -3-1%
Bmnsvle 1,777 ~3 *'* ' -42% Forest Lake '* 1,559 100 "*5.3%
Eagan : - . - :"'1,718 74 :" 5.7% FmestLakaTwp. 1.390 '105 -10.0%
Farmlngton 1,915 35 -12% Grant Twp. 1,651 88 -42%
Hastings '*. 1,728 71 *' -3.8% Hugo 1,651 ' 87 -8,4%
Inver Grove Htr' 1,709 77 -7J3% Lake Elm<) 1,738 69 .0.6%
Lakev~e 1,593 95 -7./% Mm~ned 1'883 42 -12%
Mendota Hts. 1,578 98 *22% Ma,/Twp, 1,600 94
Rosemount 1,935 28 72% New Scandia Twp. 1,581 97 -7.5%
South St. Paul 1,621 92 -15-1% Newport 1~86 41 -12%
West St. Pad 1,633 91 -1.5% O~k Park Hi3. 1,713 76 -2.2%
Hennepln County oak~ae . 1,789 56 -5.8%
st. Paul Pa~ 1,602 · 93 -7.8%
Bloomington ~, 1,719. 73. -22% StJiivmter 1~48 47
Brooklyn Center 1,964 20 -62% .W~:__~aland ?lvp. 1,411~4 102 0-1%
Bmakly~ Park, i.' 2.1.13 .' 4 ** 6-q% Woodbury 1,673 81 -8.6%
C~amplln 1,799 57 1.4%
Comorau ** './.: 1,766 66 : *~.4% Nonmetro cities
Cr~ .* .... 1,875 43 *1.5%
D~ton 1.904 . 38 4~%
Deeph~ve~ 1.853 44 ' -1-1%
Eden I~a~e . 1,936 26 * 2.4% Nbert Lea
Edlna 12~26 53 3~% AJexandrta
Excelsior 2~O5 * 16 .02% Austin
Golden Valley 1,975 18 -1'0% Bemld.I
~ 1,999 17 -12% B~alnmd
Indepes~dence 1.852 46 -4~% Buffalo
Map~ Gr~w 2,027 14 6-'~., Dalane
M~a 1.649 89 -3 J~/~ Duluth
MIn~eapo~ 2,039 12 1.1% E~ Rivar
Mlmmtonka 1,941 25 0,4% Fetgus Falls
MInne'~lM~ .1.,844 48 2-q% ~and Rapids
Mound 1.889 40 2.5% H~bbtng
New Hope .. 1,832 . 50 -12% Hutchinson
O~ono 1,702 78 -3.3% Intemat~nal Falls 1.643 93 -1.6%
Plymouth 1,836 49 11.5% Marshall
Rlchfl~d ':~' '~';: 1,955 i'.'... 23 .'. 0.7% Monttceao
Robbtnsdale 1,852 45 -1.3% Moo~head
Sho~ewo~l ~::'~ii: 1,918" 33 .0.9% Mo~s
St. Anthony 2~58 11 '' 9.9% Nortt~ald"
Wayzata 1,952 24 21./% Rochester
St. Cloud
Ramsey County
Nden*His * 1,784 60 -2.4% WImar
Falcon Heights 1,935 27 0-1% WInona
Lauderdab ; ':. 2~79 L. 8 02% Worthington
1996 tax, Rank' Percent
ge do~) c~e In
$/.736 72 -O2%
1,749 · 68 -6.0%
1.729 73 -8.8%
2,O09 22 .0-1%
1,613 100 -8.0%
1,608 101 -2.4%
1,468 121 .03%
1,974 28 -0.3%
119
1,670 86 -4.9%
1,590 104 O.O%
1.973 29 -0.7%
1,973 30 -3.6%
1.634 95 1-q%
1,666 107 -05%
1'873 51 -2~%
1,652 "55 ~,6%
1,663 88 -1.0%
1,501 , 117
1,760 66 -1.5%
1,727 i, 74 *1.2%
1.893 47 -6.5%
1,885 48 0-1%
1,694 78 -1.7%
1,688 80 2.6%
Rank is ~[~ metro area, and h~(129)in nonmetro areas.
S6brce: Citizens League and Minnesota Taxpa~r----'~ssoc~a~n