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is 47.30%which is a decrease from 48.54%last year. With the proposed levy,if approved, the tax
<br /> capacity rate will be adjusted downward to approximately 47.11%.
<br /> There are three primary tax entities: the county, school district, and city,that receive property taxes paid
<br /> by property owners. The city receives approximately 30% of the total property tax the property owner
<br /> will pay. The balance,approximately 70%,goes to Sherburne County,Independent School District 728,
<br /> Regional Rail Authority,Economic Development Authority, and Housing Redevelopment Authority.
<br /> Additionally, the State of Minnesota also receives part of the property taxes on commercial and industrial
<br /> property,the city's share percentage decreases below 23% for those properties that pay state tax.
<br /> The city uses property tax revenue for several purposes. The majority, 94%,is used to fund General
<br /> Fund expenditures such as police, fire, street maintenance,general government,parks and recreation.
<br /> The remaining 6%pays for debt service, tax abatement,and library operations.
<br /> General Fund Budget
<br /> The 2015 General Fund budget is at$13,312,800 which is a 3.44%increase over 2014. Public safety
<br /> expenditures (police, fire, emergency management,building safety, code enforcement, and environmental)
<br /> account for 48% of the General Fund Budget. General government,public works, and culture and
<br /> recreation make up the majority of the balance. Personal service expenditures are the largest type of
<br /> expenditure due to the fact that the city's core objective is to provide service to its residents and
<br /> businesses. Personal service expenditures are 77% of the operating budget. The budget does include a
<br /> 2% cost of living pay adjustment for all employees in 2015.
<br /> Financial Impact
<br /> Summary of all 2015 Budgets
<br /> Below is a summary of the proposed budgets to be approved, all of which were reviewed by the Council.
<br /> General Fund $13,312,800
<br /> Special Revenue Funds:
<br /> Library $ 98,400
<br /> Ice Arena $ 706,100
<br /> Landfill $ 105,400
<br /> Safety $ 37,100
<br /> Enterprise Funds:
<br /> Revenues Expenditures Net Effect
<br /> Sewer $6,292,200 $13,448,910 $(7,156,710)*
<br /> Garbage $1,338,350 $ 1,391,750 $ (53,400)
<br /> Liquor $6,892,550 $ 6,577,500 $ 315,050**
<br /> Storm Sewer $ 468,900 $ 958,500 $ (489,600)***
<br /> *Includes depreciation ($977,950), capital projects ($10,875,100), State of MN grant ($2,800,000), debt
<br /> service ($261,050), and a 3% sewer rate adjustment.
<br /> **Includes depreciation ($123,000).
<br /> ***Includes depreciation ($433,750)
<br /> N:\Public Bodies\Agenda Packets\12-01-2014\Final\x7.1 sr Budget staff report memo 1201.docx
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