7.1. SR 12-05-2016 - Laserfiche WebLink

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City of Elk — River Request for Action To Item Number Mayor and City Council 7.1 Agenda Section Meeting Date Prepared by Public Hearin December 5, 2016 Lori Ziemer, Finance Director Item Description Reviewed by 2017 Budget and Tax Levy Cal Portner, City Administrator Reviewed by Action Requested Adopt, by motion, the resolution authorizing the property tax levy for collection in 2017. Approve, by motion, the 2017 General, Special Revenue, and Enterprise Fund budgets. Background/Discussion City staff began the budgeting process in May developing their 2017 department goals and requested budgets. The City Council and staff have since met in numerous work sessions reviewing in detail department operating budgets and the property tax levy. In September, Council approved the preliminary (maximum) tax levy that was used to calculate the proposed property tax notice that was mailed to each property owner in November. The final 2017 levy may be less than the preliminary levy, but cannot be more. Tax Levv On September 19, the City Council adopted the preliminary tax levy of $10,657,808, which is an increase of 4.78% over 2016. Since then, staff has made reductions to the budget and is recommending a proposed final levy of $10,563,770, which is an increase of 3.85% and down from the preliminary levy increase of 4.78%. The most recent property values reported by the county estimate Net Tax Capacity (NTC) increasing by 4%, attributable to new growth and market value increases. The final NTC may change slightly as the county continues to update property values before calculating taxes in early 2017. The tax capacity rate based on the preliminary levy is 46.483%, which is a slight increase from last year's rate of 46.17%. With the approval of the revised levy, the tax capacity rate will be adjusted downward to approximately 46.07%. With the adopted final levy, city property taxes for a median value home ($196,500 in 2016) will basically remain unchanged. The city accounts for about one-third of a homeowners total property tax bill. The remainder is attributed to the school district (27%), the county (37%), and other jurisdictions (3%). For businesses, the city's share is about 25% of the total. The majority of the property tax levy (94%) is used to fund city services such as police, fire, street maintenance, parks and recreation, and general government. The remaining 6% pays for debt service, tax abatement and library operations. P a w E R E U 6 Y NaA f RE]