5.1. - 5.3. SR 12-13-1999 - Laserfiche WebLink

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rC I ----'\) ( ); ~li( Item # 5.1. - 5.3. River MEMORANDUM TO: Mayor and City Council FROM: Pat Klaers City Administrator DA TE: December 9, 1999 SUBJECT: Budget Tax Levy and Pay Plan In September the City Council approved a proposed maximum tax levy for 2000. The net levy was proposed in the amount of $3,995,469. This is a $366,255 or a 10.09% increase over the adopted 1999 net tax levy amount. The majority of the tax levy funds (approximately 84%) are dedicated toward general fund activities. . City Council reviewed the proposed budget at July, August, and September meetings. The final draft 2000 budget is proposed in the amount of $5,862,500. This proposed budget reflects a $499,050 or 9.3% increase over the adopted 1999 General Fund Budget. On December 6, 1999, the City Council held its Truth in Taxation public hearing. This public hearing is required by law to receive public input on the proposed city budget tax levy. Notice of this public hearing was sent out to all property owners in the city and a notice was published in the Elk River Star News. No citizens or property owners addressed the City Council on the budget or proposed levy. Figures included in the mailed notice and in the newspaper notice were based on the draft budget and the September tax levy proposal. Based on these figures the city tax levy increase will cause the city tax rate to go from 29.324 in 1999 to approximately 30.194 in 2000. This is a 3% increase in the city tax rate. Overall the tax rate in the city is proposed to go from 121.13 in 1999 to approximately 119.362 in 2000. As previously discussed with the City Council the impact of the increased tax rate on property owners varies depending upon the property classification and whether or not the properties saw an increase in valuation. A residential homesteaded property, which saw a modest increase in valuation, will still see a decrease in their tax payment because of the overall decrease in the tax rate and the increase in the education credit. However, the commerciallindustrial properties that saw a modest increase in values will most likely see a small increase in taxes because these properties do not benefit from the education credit. . As part of the budget process the City Council approves the pay resolution for the upcoming year. Attached is the proposed pay resolution which is very similar to previous years, however, a number of items such as the employee leave time policy and the 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425