HomeMy WebLinkAbout4B Proposed Tax Levy
CONSENT AGENDA #: 4 (b)
PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR
SUBJECT: CONSIDER APPROVAL OF RESOLUTION 94-55 CERTIFYING
PROPOSED TAX LEVY TO SCOTT COUNTY AUDITOR
DATE: SEPTEMBER 6, 1994
INTRODUCTION:
BACKGROUND:
DISCUSSION:
Property tax legislation requires that each "taxing authority" certify a
proposed tax levy for payable 1995 to the County Auditor on or before
September 15, 1994. The purpose is to allow the County adequate time to
prepare, calculate and mail notices of proposed property taxes for the
county, school district, city and special taxing districts.
The Council conducted a preliminary budget workshop on June 20, 1994
for the purpose of considering budget programs. The discussion which
occurred was on fairly general basis. On Monday, August 15, 1994 a
second workshop was held whereby the preliminary budget was
specifically reviewed by the Council. The goals were twofold; to identify
service level priorities and to reach consensus on an acceptable property
tax increase. Also, a number of budget assumptions were established and
their various impacts on city departments discussed.
The preliminary budget, as submitted, represents a 7.7% increase above
the current year. The two largest components were related to police service
whereby the liaison officer program has been reinstated along with
increased support staff in the form of an additional secretary and step
increases associated with our general obligation debt relating to the fire
hall referendum. Excluding the debt portion, the proposed operating
budget accounts for a 6.5% increase over 1994.
Subsequent to the last workshop review, Staff did some fine tuning in both
the areas of revenues and expenditures. The impact was minimal with
respect to effect upon property taxes as the proposed net property tax
increase would remain within the approximate 8.6% level previously
discussed with the Council.
The changes that were incorporated in revenues were the result of
receiving updated information from the County Auditors Office regarding
anticipated fiscal disparity aid and being less aggressive in our growth
forecast with respect to building permit related revenue. Fiscal disparity
aid was increased by $15,330 while building activity revenue was
decreased by $36,905 which equates to reducing our building permit
estimates by 25 less single family homes, from 275 to 250. To offset this
loss, the enterprise fund contribution to the General Fund was increased by
$25,000 which represents the first increase in 5 years.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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As directed by the Council, professional services in the Planning
Department were increased by $5,000 while a small adjustment of $480
was made under copier rental in Buildings and Plant to accommodate the
lease purchase of our new Sharp SD-3062 copier. The net result of all the
above changes produced an overall budgetary increase of only $2,055.
It is essential for the City to initially certify a reasonably sufficient amount
because once certified, a city is then restricted to downward adjustments
only and cannot increase its final levy. In consideration of this the Council
indicated an acceptance of a base levy of $3,125,210 which includes
operating debt levies of $486,010 and improvement project levies of
$693,500.
The estimated property tax increase based upon an average market value
home of $120,000 is broken down according to the following table. The
calculation of the figures below factor in a 4% tax capacity valuation
growth for payable 1995 property taxes.
Levy Description $ Increase Tax Increase
Operating Budget Levy $177,115 $31.13
Operating Debt Levy $ 57,800 $10.16
Special Debt Levy $ 80,500 $14.15
Total $55.44
As indicated above, the net budget impact (operating expenditures
excluding debt) represents a moderate 4.87% increase upon the property
tax.
Attached to the agenda report is Resolution 94-55 which delineates the
levy breakdown and establishes the City of Prior Lake's budget public
hearing dates. The dates selected and reserved for the city are Wednesday
December 7, 1994 and Wednesday December 14, 1994 in the event of a
Council continuation. By statute, the dates available for both must fall
between November 29, and December 19, 1994. Also, they must not
conflict with the County, School District or the Metro taxing district which
are indicated below:
Taxing
Authority
Initial Hearing
Date
Continuation Hearing
Date
Special Metro
ISD #719
ISD #720
Prior Lake
Scott County
12/05
12/08
12/06
12/07
12/13
12/12
12/15
12/19
12/14
12/20
In addition, a subsequent hearing (regular council meeting of 12/19) must
be held to approve the final 1995 property tax levy. This day cannot be on
the same day as the budget hearing. Attached is a revised budget adoption
calender reflecting these changes.
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ALTERNATIVES:
The following alternatives are available to the City Council:
1. Approve resolution 94-55 as submitted.
2. Amend Resolution 94-55 to an amount per Council decision.
RECOMMENDATION: Staff would recommend approval of Resolution 94-55 Certifying Proposed
1995 City of Prior Lake Tax Levy to Scott County Auditor. By adopting
this resolution, you are approving a tax expenditure ceiling and providing
ultimate flexibility for final determination prior to the actual budget public
hearing.
ACTION REQUIRED: e Resolution 94-55 Certifying Proposed 1995 City of
y to Scott County Auditor.
REVIEWED BY:
BUDI3.WRT
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BUDO.WRT
Prior Lake
1995 BUDGET TIMETABLE
MAY 16
City Council approval of budget timetable
JUNE 6
Distribution of budget aids & timetable
JUNE 7 - JUNE 21
Department heads conduct employee meetings to receive input
on 1995 needs and prepare budget draft
JUNE 20
Council input on Budget Programs & Priorities
(Workshop #1)
JUNE 22
Deadline for submission to Finance
JUNE 27 - JULY 1
Budget information consolidated by Finance
JULY 5-12
City Manager confers & reviews with each department head
JULY 15-29
Budget draft & documentation is prepared
AUGUST 1
City receives information from State Department of Revenue
on HACA, DRA, and local government aids
AUGUST 15
Council workshop on budget draft
(Workshop #2)
SEPTEMBER 6
Resolution adopting proposed budget and authorizing
proposed property tax levy
SEPTEMBER 7
"Proposed Tax Levy Certification" to Scott County Auditor
SEPTEMBER 12-30
Budget refinement by Finance Director. City Manager and
Department Heads
OCTOBER 1-15
Final draft of Manager's budget
OCTOBER 17
Council workshop on final budget draft
(Workshop #3)
NOVEMBER 11-23
County mails truth-in-taxation notices
DECEMBER 7- DECEMBER 14 (if continued)
Budget public hearing
Budget adoption
DECEMBER 19
Final 1995 Property Tax Levy Approval
DECEMBER 27
Statutory deadline to file tax certification with
County Auditor's Office
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RESOLUTION 94-55
RESOLUTION CERTIFYING "PROPOSED" 1995
CITY OF PRIOR LAKE TAX LEVY TO SCOTT COUNTY AUDITOR
MOTION BY:
SECONDED BY:
WHEREAS,
Truth in taxation provisions as specified by property tax legislation requires a
proposed property levy certification to the County Auditor's Office of Scott
County; and
WHEREAS,
the City Council of the City of Prior Lake anticipates a 1995 Operating Budget
increase of approximately 7.7% which would amount to $5,144,745.00, exclusive
of enterprise fund expenditures, and subject to approval by the Council following
the course of public hearings scheduled for the month of December; and
WHEREAS,
the total proposed property tax levy approved has been determined to be
$3,125,210.00; and
WHEREAS,
the proposed City of Prior Lake property tax levy for the year payable 1995
represents an increase of 11.8%; and
WHEREAS,
the City of Prior Lake shall conduct a public hearing at 8:00 P.M. Wednesday
December 7, 1994 in the Prior Lake Council Chambers for the purpose of review
and discussion of the City's proposed budget; and
WHEREAS,
a continuation hearing, if necessary, shall be scheduled for Wednesday December
14, 1994 at which time the City Council will approve the 1995 Operating Budget;
and
WHEREAS,
the City Council will approve the Pinal 1995 Property Tax Levy during a
subsequent meeting on Monday, December 19, 1994.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council that the proposed tax levy be
distributed upon the taxable property in said City for the following purposes in payable 1995:
* Por General City Purposes
* G.O. Improvement Bonds '87 (Carriage Hill)
* G.O. Improvement Bonds '88 (North Shore Oaks)
* Advance Refunding Bonds '92 (North Shore)
* Advance Refunding Bonds '92 (Water Tower)
* Crossover Refunding Bonds '92 (Downtown Overlay)
* G.O. Improvement Bonds '93 (Waterfront Passage)
* G.O. Improvement Bonds '94 (Prior South)
** Capital Park Bonds of '73 & '77
*** Pire Hall Referendurn Bond '93
$2,230,465.00
10,000.00
40,000.00
135,000.00
100,000.00
100,000.00
244,000.00
64,500.00
36,120.00
165,125.00
$3,125,210.00
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Note:
Note:
Note:
Note:
Single starred funds shall be spread over the entire consolidated City of Prior Lake.
Double starred funds shall be spread over the consolidated City except for the former
Savage portion subject to annexation.
Triple starred funds represent market value based referendum taxes and shall be spread over
the entire consolidated City of Prior Lake.
All other bond issues have sufficient fund balances to cover debt requirements.
Passed and adopted this 6th day of September, 1994.
{ Seal}
BUDI4.WRT
YES
NO
Andren
Greenfield
Kedrowski
Schenck
Scott
Andren
Greenfield
Kedrowski
Schecnck
Scott
Frank Boyles
City Manager
City of Prior Lake
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