HomeMy WebLinkAbout8A - Proposed 1996 Tax Levy
CONSENT AGENDA #: 8 A
PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR
SUBJECT: CONSIDER APPROVAL OF RESOLUTION 95-85 CERTIFYING
PROPOSED 1996 TAX LEVY TO SCOTT COUNTY AUDITOR
DATE: SEPTEMBER 5, 1995
INTRODUCTION:
BACKGROUND:
DISCUSSION:
Property tax legislation requires that each "taxing authority" certify a
proposed tax levy for payable 1996 to the County Auditor on or before
September 15, 1995. 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 19, 1995
for the purpose of considering budget programs. The discussion which
occurred was fairly general. On Monday, August 11, 1995 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. At the conclusion of this session,
the Council directed Staff to modify the proposed 1996 operating budget
within the scope of a 5 V2% property tax increase including debt levies for
capital improvement projects.
The preliminary budget, as submitted, represents a 6.2% increase above
the current year. The largest components affecting the budget were related
to increased insurance premiums due to the addition of the fire hall and
public woks facilities, leasing of mobile computer terminals for the squad
cars, officer assignment as a result of the Cops Fast program and an
additional maintenance individual scheduled for mid-year plus a 40%
increase within the Contingent Reserve account. Excluding the
contingency increase, the proposed operating budget expenditures
represent a 5.4% increase over 1995.
Subsequent to the last workshop review, Staff as directed by the Council,
incorporated the new maintenance personnel within the Street Department
and reduced Contingency to an amount of $140,000. These changes were
intended to bring the projected city property tax increase to 5.50/0. This is
approximately a V20/0 above the Council's initial target of 50/0. The
Council's intent was to leave room for potential adjustments and to
provide the flexibility to respond to any public requests at the budget
public hearing stage.
16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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 $3,400,710 which includes
improvement project levies of $672,500.
The projected property tax increase based upon an average market value
home of $120,000 as, indicated above, is projected to increase by
approximately 5.5% or $35.78 above this year. The estimated property tax
calculation assumes a 4.35% tax capacity valuation growth as a result of
the 183 new housing starts in 1994.
Attached to the agenda report is Resolution 95-85 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 6, 1995 and Wednesday December 13, 1995 in the event of a
Council continuation. By statute, the dates available for both must fall
between November 29 and December 20, 1995. 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
12/04
12/07
12/07
12/06
12/12
12/ 11
12/18
12/ 18
12/13
12/19
In addition, a subsequent hearing (regular council meeting of 12/18) must
be held to approve the final 1996 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.
ALTERNATIVES:
The following alternatives are available to the City Council:
1. Approve resolution 95-85 as submitted.
2. Amend Resolution 95-85 to an amount per Council decision.
RECOMMENDATION: Staff would recommend approval of Resolution 95-85 Certifying Proposed
1996 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.
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ACTION REQUIRED: e Resolution 95-85 Certifying Proposed 1996 City of
Y to Scott County Auditor.
REVIEWED BY:
RESOLUTION 95-85
RESOLUTION CERTIFYING "PROPOSED" 1996
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 1996 Operating Budget
increase of approximately 6.2% which would amount to $5,447,005.00, 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
$3,400,710.00; and
WHEREAS,
the proposed City of Prior Lake property tax levy for the year payable 1996
represents an increase of 8.8%; and
WHEREAS,
the City of Prior Lake shall conduct a public hearing at 8:00 P.M. Wednesday
December 6, 1995 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
13, 1995 at which time the City Council will approve the 1996 Operating Budget;
and
WHEREAS,
the City Council will approve the Final 1996 Property Tax Levy during a
subsequent meeting on Monday, December 18, 1995.
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 1996:
* For 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)
* G.O. Improvement Bonds '95 (Creekside)
** Capital Park Bonds of '73 & '77
*** Fire Hall Referendum Bond '93
$2,529,420.00
10,000.00
40,000.00
100,000.00
50,000.00
105,000.00
248,000.00
64,500.00
55,000.00
35,780.00
163,010.00
$3,400,710.00
16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-171 + / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNIT EMPLOYER
Note: Single starred funds shall be spread over the entire consolidated. City of Prior Lake.
Note: Double starred funds shall be spread over the consolidated City except for the former
Savage portion subject to annexation.
Note: Triple starred funds represent market value based referendum taxes and shall be spread over
the entire consolidated City of Prior Lake.
Note: All other bond issues have sufficient fund balances to cover debt requirements.
Passed and adopted this 5th day of September, 1995.
YES
NO
Andren
Greenfield
Kedrowski
Schenck
Scott
Andren
Greenfield
Kedrowski
Schecnck
Scott
Frank Boyles
City Manager
City of Prior Lake
{ Seal}
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