5. SR 12-01-2008 - Laserfiche WebLink

Home Browse Search

.,... Elk River REQUEST FOR ACTION To Item Number Ci Council 5. Agenda Section Meeting Date Prepared by Truth in Taxation December 1, 2008 Lori ohnson, Ci Administrator Item Description Reviewed by th in Taxation Public Hearing T ru Reviewed by Action Requested Presentation of the budget and tax levy to the public including information on the City's tax levy and budgets after which the Council is required to hold a public hearing to take public input on the tax levy and budget. Back~round/Discussion The tax levy and general, special revenue, and enterprise fund budgets have been presented and discussed in detail by the Council at numerous public meetings this summer and fall. The proposed budget and tax levy were adopted by the Council on September 8. The levy adopted at that meeting was used in preparing the proposed property tax notices sent to property owners. Prior to opening the truth in taxation hearing, Finance Director Tim Simon and I will present the proposed tax levy, the estimated tax rate, the general, special revenue, and enterprise fund budgets, and other related tax information. Anyone in attendance will be invited to comment on the budget or tax levy during the public hearing. This hearing is to discuss the City's levy and budget; questions about property values, classifications, or any related value information will not be discussed at this meeting. Also, the school district and county levies will not be discussed. Property owners with questions on those levies should attend the school district or county hearings. The City's share of the total local property tax is about 30 percent of the total property tax paid by most tax payers although this percentage varies depending upon the classification and value of the property. The allocation of taxes is listed on the proposed property tax statements. The City's tax for purposes of the proposed property tax statements is based on a tax levy of $11,230,878. This levy was set by using a target tax rate of 43.056 times the County's estimated net tax capacity (NTC). In October, the County revised the net tax capacity downward; therefore, the levy approved on September 8 now equates to a tax rate of 43.210. At the November 3 council meeting, the Council affirmed that it did not want to levy at a rate above 43.056. A tax rate of 43.056 at the current estimated NTC generates a levy of $11,190,753. This is well below the City's levy limit that would have allowed the City to levy to $11,477,816 or a tax rate of 44.160. Reducing the levy to meet the target tax rate of 43.056 requires a reduction in the general fund budget of $40,100. On November 3, several adjustments to the General Fund budget were discussed including the use of reserves to balance to budget. Taking those adjustments into account, plus a tax reduction of $40,100, there is a budget deficit of $57,450. Attached is a spreadsheet listing possible budget adjustments S:\Council\Lori\2008\Truth in Taxation PH.doc