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<br />. <br />City of ~ <br />Elk <br /> <br /> <br />Item #4.3. - 4.5. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />Pat Klaers, City Administrator <br /> <br />DATE: <br /> <br />December 11,2000 <br /> <br />SUBJECT: Budget, Tax Levy, and Pay Plan <br /> <br />The City Council reviewed the proposed 2001 budget at August and <br />September budget worksessions. The draft 2001 budget is proposed in the <br />amount of $6,470,000. This proposed budget reflects a $607,500 or 10.36 <br />percent increase over the adopted 2000 General Fund Budget. <br /> <br />. <br /> <br />On September 11, 2000, the City Council approved a resolution that called for <br />a proposed maximum levy of $4,457,247 for 2001. This is a $461,778 or 11.55 <br />percent increase over the adopted 2000 net tax levy amount. The majority of <br />the tax levy funds (approximately 86 percent) are dedicated toward general <br />fund activities. <br /> <br />On December 4,2000, the City Council held its Truth in Taxation public <br />hearing. This public hearing is required by state law to receive public input <br />on the proposed city budget and tax levy. Notice of this public hearing was <br />sent out by the county to all property owners in the city and a notice was <br />published in the November 29,2000, Elk River Star News. At this public <br />hearing two property owners addressed the-City Council on property <br />valuation, the city budget, and/or the proposed levy. <br /> <br />. <br /> <br />The mailed notices and the newspaper notice included estimated tax figures <br />based on the draft budget and on the September tax levy proposal. Based on <br />these figures, plus the September net tax capacity information given to the <br />city from the county, it is estimated that the city tax levy increase will cause <br />the city tax rate to go from 30.248 in 2000 to approximately 30.55 in 2001.. <br />This is a 1 percent increase in the city tax rate. Overall, it is projected that <br />the tax rate will go from 119.449 in 2000 to approximately 130.230 in 2001. <br />As previously discussed with the City Council, the impact of the increased tax <br />rate on property owners varies depending upon the tax classification and <br />whether or not the property saw an increase in valuation. <br /> <br />13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. TDD & Phone (763) 441-7420. Fax (763) 441-7425 <br />