3.0. SR 12-08-1993 - Laserfiche WebLink

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. . . The tax increase in the urban district is more typical of what is happening in Elk River because of the three factors noted in the above paragraph. It is unmistakable that taxes are increasing in the city of Elk River due to, in some part, an increase in spending by the city. The city has kept spending down in the last five years due to the levy limits that were placed on the City. During these periods of high growth, our tax rate decreased. In 1994, taxes are proposed to increase due mainly to an increase in personnel. Personnel is roughly two-thirds of the City budget, and, if we are making increases in this area, then generally speaking, expenditures are going up and taxes sometimes will also go up if the increase in our City net tax capacity does not keep pace. The City tax rate is going up at the same rate as the School District and the County. These are the other two government jurisdictions that comprise the local property taxes. The City has new Truth in Taxation requirements placed upon it in 1994. The new informational requirements relate to City employees. These new requirements are outlined below and indicate what the City must discuss at the Truth in Taxation public hearing. 1 . The percent of total proposed budget representing total compensation costs for employees (wages, salaries, benefits, etc.); 2. Numbers of employees by general classification, and whether they are full-time or part-time; 3. Budgeted expenditures for and numbers of consultants and other independent contractors; and, 4. The effect of budget increase or decreases on the proposed property tax levy. At the 12/8/93 Truth in Taxation Budget Public Hearing, the City staff anticipates reviewing the proposed 1994 General Fund budget. Following this review, staff will be prepared to discuss the reasons for the budget increase and the associated tax increase. Following this discussion, staff will review the items listed in the above paragraph in order to be in compliance with the Truth in Taxation requirements. Finally, following the Truth in Taxation requirements, the City staff will then be prepared to respond to questions from the public and the City Council. At the 12/8/93 Truth in Taxation Public Hearing, as much detail on each individual departmental budget as deemed necessary by the City Council can be provided. The level of detail offered by the staff may depend on the number of citizens in attendance at this meeting. In general, the City Council should be familiar with the proposed 1994 budget document as it has been reviewed with them at worksessions in August and September.