5.3. SR 09-11-2000 - Laserfiche WebLink

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City of River MmO A UM TO: Mayor & City Council FROM: Pat Klaers, City Ad~r DATE: September 11, 2000 ~ ~- SUBJECT: 2001 Budget Item #5.3. The City Council has held two worksessions on the 2001 Budget and tax levy. Following council direction from the 9/6/00 worksession, the total net tax levy for the city is proposed to go up $461,778 or 11.56 percent. Due to the approximately 10.5 percent increase in the net tax capacity of the city, it is estimated that the impact on home and business owners for the city's share of the property tax bill will be minor, assuming that they do not see an increase in the value of their property. It is estimated that the city tax rate will go from 30.248 percent to 30.55 percent in 2001. On 9/6/00 the council also made a decision on the budget and a balanced General Fund Budget in the amount of $6,470,000 has been produced. This is a $607,500 or 10.36 percent increase over the adopted 2000 budget. The largest revenue category in the General Fund is property taxes. This category increased by $509,150 or 15.38 percent. This higher than normal tax increase in the General Fund is due to the shifting of monies from previous debt requirements into the General Fund. The largest expenditure category, personal services, increased slightly less than what we have seen in the past few years due to fewer additional employees being hired in 2001. Personal services comprise approximately 70 percent of the total General Fund expenditures. The expenditure category that increased the most by percentage in 2001 is capital outlay. This was done in order to reduce equipment certificates in the 2001 budget and hopefully this will be a new trend that is followed in future years. There are no levy limits on municipalities for 2001, but if levy limits come back, the city may be forced to look at this funding technique again in the future. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone (763) 441-7420 · Fax (763) 441-7425