Laserfiche WebLink
River <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor & City Council <br /> <br />Pat Klaers, City Admini~r <br />September 3, 1998 <br /> <br />SUBJECT: 1999 Budget <br /> <br />The prehminary net tax capacity (NTC) information for 1999 for the City of <br />Elk River has just been received from the County Auditor. The information <br />received indicates that the city NTC for 1999 is anticipated to increase from 0 <br />to I percent. Not only is this far below the 1996 and 1997 increases which <br />were in double digits, but it is also far below the 3.86 percent that was <br />realized last year. Of course as the Council has discussed, the increase in the <br />NTC last year was low due to legislative action on the tax classes. The city's <br />growth has been consistent the last few years (it was nearly identical the last <br />two years), so you can tell that the low 1999 NTC increase is due to the <br />second round of tax class changes as required by state law. <br /> <br />As we discussed at the 8/31/98 budget worksession, this low increase in the <br />NTC is going to require a city tax rate increase in order to generate <br />additional tax revenues. This is not good news and we need a special City <br />Council budget worksession prior to the September 14, 1998, meeting. In <br />this regard, a special meeting is scheduled for 6 p.m. on Thursday, <br />September 10, 1998. Staff will have expenditure and revenue information to <br />distribute at the meeting. <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 />