3.3. SR 09-10-2001MEMORANDUM
TO:
FROM:
DATE:
Mayor and Council
Lori Johnson, Finance Director
September I 0, 2001
SUBJECT: 2002 Tax Levy and Budget Issues
**Item 3.3.**
On September 4 the Council approved the city's maximum property tax levy for taxes
payable in 2002. Attached are resolutions to approve the Housing and Redevelopment
Authority and Economic Development Authority tax levies for taxes payable in 2002. Both
the EDA and HRA levy the maximum amount allowed by law.
Also attached is a list of the debt service levy adjustments for taxes payable 2002. Some
bond documents indicate that a tax levy is required due to an estimated revenue shortfall
based on special assessment or tax increment income projections at the time the bond is
issued. This typically happens because the revenue stream is based on very conservative
estimates that exclude anticipated special assessment prepayments or increased tax increment
revenue. These levies are subsequently cancelled each year if adequate funds are available to
meet debt service obligations. The levies being adjusted for taxes payable in 2002 include
the 1992 G. O. Improvement Bond, the 1993B Permanent Improvement Revolving Bond,
and all tax increment bonds.
Action Requested
The City Council is asked to consider the resolutions approving the Housing and
Redevelopment Authority and Elk River Economic Development Authority tax levies for
taxes payable in 2002 and approve a motion amending the city's debt service levies as
outlined in the attachment.
S/Council/02taxlevy
RESOLUTION
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION APPROVING THE HOUSING AND
REDEVELOPMENT AUTHORITY 2002 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 .0131% 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
leW of .0131% 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 10th day of
September, 2001.
ATTEST:
Stephanie A. I(dinzing, Mayor
Sandra A. Peine, City Clerk
s: \documentkresoluti\Olhralev.doc
RESOLUTION 01 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION APPROVING THE 2002 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 o£
the Authority in the amount of .01813% of taxable market value of taxable
property in the City for the year of 2002.
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 2002 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. seq.
Passed and adopted by the City Council of the City of Elk River, Minnesota this 10th day of
September, 2001.
ATTEST:
Stephanie A. K2inzing, Mayor
Sandra A. Peine, City Clerk
s: \document\resoluti\Oledalev.doc
DEBT SERVICE LEVY ADJUSTMENTS
For Taxes Payable in 2002
Scheduled Adjusted
Bond Fund
Levy Levy
1992A G.O. Improvement Bond 5,799
1993B Permanent Improvement Revolving 187,434
Reason for AdJustment
Sufficient cash available from Special Assessments.
Sufficient cash available from Special Assessments.
Tax Increment Bonds - Sufficient cash available from Tax Increment related sources to cancel all related debt levies.