5.0. SR 12-04-2006 - Laserfiche WebLink

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City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Truth in Taxation December 4, 2006 Item Description Truth in Taxation Public Hearin Item Number 5 Prepared by Lori ohnson, Ci Administrator Reviewed by Introduction The purpose of this item is to hold the city's truth in taxation hearing on the 2007 budget and tax levy. As you know, the Council may decrease the tax levy following the hearing but may not increase the levy. Discussion Before the City Council opens the public hearing on the city's budget and tax levy, I will make a presentation on the proposed tax levy, the estimated tax rate, general, special, and enterprise fund budgets, and other tax related information. Also, the League of Minnesota Cities, the Association of Minnesota Counties, and the Minnesota School Board Association have jointly prepared a short presentation titled "Fourteen Reasons Why Property Taxes Go Up and Down" which will be viewed prior to my presentation. This will give both the viewing public and those in the audience some general information about how the property tax system works including how their property value plays a part in the amount of property tax they pay. Questions regarding property value are, as you know, to be directed to the County Assessor and dealt with at the annual Board of Equalization meeting in the spring. The Council has reviewed the proposed budget on several occasions and most recently made changes to the Elk River Area Arts Alliance contribution, the flexible benefit contribution, and several other items. Those adjustments have been incorporated into the budget documents that are attached. The one remaining item is the recreation assistant position which will be discussed following the closure of the truth in taxation public hearing. That item is not in the budget as proposed. If the Council approves one of the options outlined by Parks and Recreation Director Bill Maertz, the budget will be adjusted accordingly when it is brought back for final adoption by transferring some capital outlay costs back to equipment certificates. Below are highlights of the information that will be presented at the hearing. Detailed information on all budgeted funds is included in the attachments. · Estimated tax rate based on proposed levy - 43.001 % o This is a slight decrease from last year's tax rate of 43.929%. o The city's net tax capacity is estimated by Sherburne County to increase 12.97% while the levy is increasing based on an 11 % growth factor. · Proposed levy - $9,757,057 o Increase of $933,264 or 10.57% · Proposed general fund budget - $11,605,750 S; \Council\Lori\2006\ Truth in Taxation PH.doc