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Item 5.2 & 5.3. <br /> <br />I IEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor and City Council <br /> <br />Pat Klaers, City Administ~/~r <br />December 9, 2002 <br /> <br />SUBJECT: Approve Resolution Setting Final Tax Levy for Taxes Payable <br /> 2003 and Consider Motion Adopting 2003 Budget <br /> <br />At this December 9, 2002 meeting, this City Council is requested to approve the proposed <br />2003 tax levy resolution, and the proposed 2003 General Fund budget, and the Special <br />Revenue funds. <br /> <br />The City Council reviewed the proposed 2003 budget at a number of City Council meetings <br />in August and September. On September 9, 2002, the City Council approved a resolution <br />that called for the 2003 proposed maximum levy of $5,980,161. This is an $861,873 increase <br />over the adopted 2002 tax levy amount. Included within this increase is $634,000 for the <br />public safety facility. <br /> <br />On December 2, 2002, the City Council held its truth in taxation public hearing. This public <br />hearing is required by state law to receive public input on the proposed city tax levy and <br />budget. The county sent out notice of this public hearing to all property owners in the city. <br />A notice was also published in the November 27, 2002, Elk River StarNews. <br /> <br />At this December 2 public hearing the proposed 2003 tax levy and the proposed 2003 <br />budget of $7,687,900 was reviewed and discussed. The proposed budget is 6.55 percent <br />more than the adopted 2002 budget. At this public hearing one property owner addressed <br />the City Council with a question about city reserves and expenses related to employee health <br />insurance. <br /> <br />The 2002 city tax rate is 43.6. Based on the proposed tax levy the 2003 tax rate is estimated <br />at 44.513. This is a 2.1 percent increase in the city tax rate. This is the increase a property <br />owner will see in the city taxes i_f their property value did not increase; however, this is not <br />likely to be the case for most property owners in 2003. According to Sherburne County <br />information that was provided to the city in September, the city net tax capacity (NTC) <br />increased by 14.44 percent for 2003. This citywide increase in the NTC is the reason why the <br /> <br />S/Council/Pat/Budget/ApproveBudget&FinalTaxLevy <br /> <br /> <br />