2.0. SR 12-02-2002 - Laserfiche WebLink

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December 2, 2002 Page 3 of 3 The city tax rate in 2003 is proposed to increase from 43.6 to 44.513. This is a 2.1 percent increase. This is the increase property owners will see in the city's taxes i__f their property value did not increase. On the other hand, if their property value did increase, then the city share of their tax bill will increase more than this 2.1 percent and it is very likely most city properties increased in value for taxes payable in 2003. According to Sherburne County information that was provided to the city in September 2002, the city net tax capacity (NTC) increased by 14.44 percent. This citywide increase in the NTC is the reason why the city tax revenue can increase substantially and yet the tax rate only increases moderately. The levy for the public safety bonds, ~vhich is new for the 2003 taxes payable year, is $634,000 and without these bonds the city tax rate would have decreased. This public safety bond is the most significant change in the tax levy resolution and this issue has already been decided by the City Council. The city added this additional levy to the tax role and is seeing a very small increase in the 2003 city tax rate. The Truth in Taxation presentation by staff will be somewhat brief and similar to the last one held in December 2000. The presentation on December 2, 2002, will include a review of revenues and expenditures by categories and will not include a discussion of individual departments or line item details unless requested by the City Council or the public. Previously, very few people have attended this public hearing and the presentation of information has, more than anything else, been for the public at home. In this regard, the numbers in the budget are often times less meaningful than charts and graphs that can display percentages and increases/decreases, and show relationships and trends. Attached for your information is the proposed 2003 general fund budget revenues and expenditures summary. Also attached are the overheads that will be used for the presentation during the public hearing. This information will be available to the public at the December 2, 2002, public hearing. According to the Truth in Taxation law, the city cannot adopt the tax levy or budget at the December 2, 2002, meeting. The tax levy and budget cannot be adopted at any meeting where a public hearing is held. If the December 2, 2002 public hearing is closed, then the City Council must announce that the budget and tax levy issue will be continued for consideration and adopted at 6:30 p.m. on Monday, December 9, 2002. Consideration of the budget and tax levy at this follow up meeting will provide the Council with an opportunity to consider the input it receives at the December 2, 2002, public hearing. However, if the public hearing is continued, the continuation date must be December 9, 2002, and then consideration and adoption of the tax levy and budget will have to take place at the following meeting, which is scheduled for December 16, 2002. Attachments · Resolution 02-83 · General Fund Revenues · General Fund Expenditure Summary Pages · 2003 Personnel Services Addition · 2003 Capital Outlay · Overheads S /Finance /Budget / truthntaxHearing