5.1. SR 12-07-2009 - Laserfiche WebLink

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~/~ Elk REQUEST FOR ACTION .River To Item Number Ci Council 5.1. Agenda Section Meeting Date Prepared by Administration December 7, 2009 Lori ohnson, Ci Administrator Item Description Reviewed by 2010 Budget and Tax Levy Presentation; Public Comment; Consider Resolution Adopting Final Tax Levy for Taxes Payable Reviewed by in 2010; and Consider Adoption of 2010 Budget Action Requested Adopt the resolution authorizing the property tax levy for collection in 2010 and adopt the 2010 General, Special Revenue, and Enterprise fund budgets after staff's presentation of the budget and tax levy and following public comment. Background/Discussion The City Council has discussed the budget and tax levy at four public work sessions prior to this meeting. In August the budget was presented in detail at two work sessions with department heads in attendance to present their 2010 departmental goals and to provide information about their budget requests. In September the Council approved the proposed tax levy - at an amount that is lower than the 20091evy. This is the levy that was used to calculate the Ciry tax for the proposed property tax notices that were mailed to each property owner in November. Further, in November possible budget adjustments were discussed in an effort to determine if the tax levy could be reduced further. The Council deferred any decision on reducing the levy to this meeting. Tax Lew: -T The proposed tax levy for 2010 is $11,112,391. This is $78,3621ess than the 20091evy. Because most residential property values decreased and the levy is decreasing, most residential properties' City tax will decrease in 2010. As you can see on the attached property tax notice, the Ciry tax on this residential property will decrease 6.6 percent or $71.07 in 2010 based on the proposed levy. Most commercial and industrial properties did not decrease in value; therefore, the City tax on these properties will increase slightly, approximately 2.86 percent on a property with a value of one million dollars. The estimated net tax capacity (NTC) decreased 3.45 percent to 25,055,969 for taxes payable 2010. Last year the NTC increased three percent. This follows many years of substantial, double digit increases in the NTC. The final NTC will change slightly as the County makes final corrections and adjustments before calculating taxes in early 2010. One important component fox property owners to understand is the allocation of the property tax they pay. The Ciry receives only a portion of the property tax paid by property owners. Sherburne County, Independent School District 728, and, for commercial industrial and some other properties, the State of Minnesota also receive part of the payment. Although the actual allocation of tax dollars changes S:\Council\Lori\2009\Budget adoption 12 07 09.doc