7.1. SR 12-04-2017 - Laserfiche WebLink

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Request for Action To Item Number Mayor and City Council 7.1 Agenda Section Meeting Date Prepared by Public Hearin December 4, 2017 Lori Ziemer, Finance Director Item Description Reviewed by 2018 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 2018. Approve, by motion, the 2018 General, Special Revenue, and Enterprise Fund budgets. Background/Discussion The budgeting process began in May with 2018 department goals and budget requests. The Council reviewed in detail each department operating budget and the property tax levy. In September, the 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 2018 levy may be less than the preliminary levy, but cannot be more. Tax Lew On September 18, the City Council adopted the preliminary tax levy of $11,123,030, which is an increase of 5.3% over 2017. Since then, staff has made reductions to the budget and is recommending a proposed final levy of $11,063,830, which is an increase of 4.7% and down slightly from the preliminary levy increase of 5.3%. The county estimates the city's Net Tax Capacity (NTC) values increasing by 5.3%, 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 2018. The tax capacity rate based on the preliminary levy is 46.190%, which is basically unchanged from last year's rate of 46.193%. With the approval of the revised levy, the tax capacity rate will be adjusted downward to approximately 45.925%. 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 (36%), and other jurisdictions (3%). For businesses, the city's share is about 25% of the total. The majority of the property tax levy (95%) is used to fund city services such as police, fire, street maintenance, parks and recreation, and general government. The remaining 5% pays for debt service, tax abatement and library operations. General Fund Budget The Elk River Vision A PehoMing community �a ith revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity P 01 W I R e INAWRE1