4.1. SR 11-17-1997 - Laserfiche WebLink

Home Browse Search

~ty of iver Item #4.1. MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor & City Council aotv eK lmai i tlY9 mi 1998 Budget The Truth in Taxation public hearing on the 1998 city budget and tax levy is scheduled for 6 p.m. on Monday, December 1, 1997. The City Council established its maximum levy and budget for 1998 when it adopted Resolution 97-94 on September 8, 1997. In general, this resolution was based on the levy limits established by state law. At the October 27 and November 3 City Council meetings, the Council identified approximately $150,000 worth of budget adjustments in order to possibly reduce the city tax revenues. This was done after preliminary county information on the city net tax capacity (NTC) growth was provided. While the market value growth in the city was similar to previous years, the growth in the NTC was not what we had seen in the past few years due mainly to state law changes regarding the tax classes. This low growth in the NTC led the City Council to consider tax revenue reductions because of the belief that the city tax rate growth of almost 8 percent based on the 9/8/97 resolution was too high. Additional county information is now available on the estimated tax rate in Elk River and this information is positive. The information from the county is positive in terms of our total tax rate DECREASING slightly for 1998. However, this positive tax rate information doesn't take into account any property value changes as established by the county assessor, nor does it take into consideration the recently approved school levy referendum. The preliminary 1998 tax rate information is as follows: 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425