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,._ _.y of <br /> <br />iver <br /> <br />Item #6.6. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor & City Council <br />Pat Klaers, City Admi i~t°r <br />November 3, 1997 <br /> <br />SUBJECT: 1998 Budget <br /> <br />At the October 27, 1997, City Council budget worksession, a consensus on the <br />proposed city tax rate was reached by the Council. Based on preliminary <br />county information on the growth of the city net tax capacity (NTC), the <br />Council agreed to an approximately 3 percent increase in the city tax rate. <br />This means that the city tax rate would increase from 24.683 to 25.423. The <br />Council understood that this rate change and percentage increase will be <br />adjusted based on final county NTC calculations. The decision of the City <br />Council on 10/27/97 means that the 1998 proposed budgeted tax revenues <br />will decrease by $149,650. <br /> <br />The Truth in Taxation notices for the December I public hearing which will <br />be sent out to all property owners will contain the tax figures as approved by <br />the City Council on September 8, 1997. This tax information will indicate <br />that the city's rate is proposed to increase by almost 8 percent and will not <br />show any of the changes as agreed upon by the Council on 10/27/97. The city <br />cannot stop this information from going out to the public, but we do hope to <br />inform everyone of the changes the City Council intends to make in tax <br />revenues through articles in the city newsletter and the Star News. In order <br />to make the changes more valid in everyone's eyes, it is appropriate for the <br />City Council to approve by motion, reducing the proposed general fund tax <br />revenues by $149,650 from the amount identified in the September 8, 1997, <br />tax levy resolution. As noted above, this motion will then have the city tax <br />rate increase by approximately 3 percent based on the preliminary NTC <br />information provided by the county. <br /> <br />The proposed adjustments in the 1998 budget due to the $149,650 decrease in <br />tax revenues are displayed in the information which is attached to this <br />memo. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />