8.1. SR 12-02-2013 - Laserfiche WebLink

Home Browse Search

There are three main entities: the county, school district, and city,that each receives part of the property taxes paid by property owners. The city receives approximately 30% of the total property tax the property owner will pay. The balance,approximately 70%,goes to Sherburne County,Independent School District 728, Regional Rail Authority, Economic Development Authority,and Housing Redevelopment Authority. Additionally, the State of Minnesota also receives part of the property taxes on commercial and industrial property,the city's share percentage decreases below 23% for those properties that pay state tax. The city uses its property tax revenue for several purposes: the majority, 93%,is used to fund General Fund expenditures such as police, fire, street maintenance,general government,parks and recreation. The remaining 7%pays for debt service, tax abatement,library, and storm water management expenditures. General Fund Budget The 2014 General Fund budget is at$12,870,500 which is a .26%increase over 2013. Subtracting out the Information Technology position upgrade,which has offsetting revenue ($31,000) from ERMU, and the one-time additional increase in city health insurance contribution ($19,800) with remaining federal grant dollars, the net is a .13% decrease. Public safety expenditures (police, fire, emergency management,building safety, code enforcement,and environmental) account for 46% of the General Fund budget. General government,public works, and culture and recreation make up the majority of the balance. Personal Service expenditures are the largest type of expenditure due to the fact that the city's core objective is to provide service to its residents and businesses. Personal Service expenditures are 75% of the operating budget. The budget does include a 2% cost of living pay adjustment for all employees in 2014. On November 4, Council discussed using one-time federal grant funds that are available to increase the city contribution for insurance to 7.5%which is 2.5% higher than the preliminary budget. This will be a one-time adjustment since offsetting, one-time revenue is available. Financial Impact Summary of all 2014 Budgets All of the proposed budgets are listed below. The Council has reviewed all of these budgets. Below is a summary of the proposed budgets to be approved: General Fund $12,870,500 Special Revenue Funds: Library $ 98,650 Ice Arena $ 1,004,550 Pinewood Golf Course $ 249,900 Landfill $ 121,350 Storm Sewer $ 414,775 Safety $ 33,100 N:\Public Bodies\Agenda Packets\12-02-2013\Final\x8.1 sr budgetmemo.docx