HomeMy WebLinkAbout8B - Proposed Tax Levy
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
8B
RALPH TESCHNER FINANCE DIREcrOR
CONSIDER APPROVAL OF RESOLUTION 93-74 CERTIFYING
PROPOSED TAX LEVY TO SCOTT COUNTY AUDITOR
SEPTEMBER 7, 1993
Property tax legislation requires that each "taxing authority" certify a
prolXJSed tax levy for payable 1994 to the County Auditor on or before
September 15, 1993. 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 July 19, 1993
for the purpose of considering budget programs. The discussion which
occurred was on fairly general basis. On Monday, August 30, 1993 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 19% increase above the
current year largely due to additional operating debt incurred with the
issuance of the fire equipment certificates and the successful fire hall
referendum. Excluding this debt portion, the proposed operating budget
accounts for a 13% increase over 1993.
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
accepted a base levy of $2,863,000 which includes operating debt levies of
$426,775.00 and improvement project levies of $613,000.00.
The property tax impact based upon an average market value home of
$110,000 is broken down as follows:
Levy Description
S Increase
Tax Increase
Operating Budget Levy
Operating Debt Levy
Special Debt Levy
$152,825.00
$237,825.00
$268,000.00
Total
$31.46
$48.95
$55.16
$135.57
As indicated above, the net budget impact (operating expenditures
excluding debt) represents a moderate 7.2% increase upon the property
tax.
4629 Dakota St. SE., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
A" EQUAL OPPORTUNITY EMPLOYER
Attached to the agenda report is Resolution 93-74 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 8, 1993 and Wednesday December 15, 1993 in the event of a
Council continuation. By statute, the dates available for both fall between
November 19, and December 18, 1993. 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
Prior Lake
Scott County
11/29
11/30
12/08
12/14
12/06
12/07
12/15
12/20
In addition, a subsequent hearing (regular council meeting of 12/20) must
be held to approve the fmal1994 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 fol1owing alternatives are available to the City Council:
1. Approve resolution 93-74 as submitted.
2. Amend Resolution 93-74 to an amount per Council decision.
RECOMMENDATION: Staff would recommend approval of Resolution 93-74 Certifying Proposed
1994 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 detenmnation prior to the actual budget public
hearing.
Explanatory information will be submitted to the Prior Lake American
newspaper on the same date the publication is to appear. In addition we
win supplement the Truth in Taxation notices mailed to individual homes.
ACTION REQUIRED: A motion as part of the consent agenda to approve Resolution 93-74
Certifying Proposed 1994 City of Prior Lake Tax Levy to Scott County
Auditor.
BUDI3.WRT
RESOLUTION 93-74
RESOLUTION CERTIFYING "PROPOSED" 1994
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 1994 Operating Budget
increase of approximately 19% which would amount to $4,724,450.00, exclusive
of enterprise fund expenditures, and subject to appmval 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 detemlined to he
$2,863,000.00; and
WHEREAS,
the proposed City of Prior Lake property tax levy for the year payable 1994
represents an increase of 29.9%; and
WHEREAS,
the City of Prior Lake shall conduct a public hearing at 8:00 P.M. Wednesday
December 8, 1993 in the Prior Lake Council Chambers for the purpose of review
and discussion of the City's proposed budget;
WHEREAS,
a continuation hearing, if necessary, shall be scheduled for Wednesday December
15, 1993 at which time the City Council will approve the 1994 Operating Budget;
and
WHEREAS,
the City Council will approve the Final 1994 Property Tax Levy during a
subsequent meeting on Monday December 20,1994.
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
1994:
*
*
*
*
*
*
*
**
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)
Capital Park Bonds of '73 & '77
$2,212,500.00
36,000.00
12,000.00
125,000.00
100,000.00
100,000.00
240,000.00
37,500.00
$2,863,000.00
Note: Single starred funds shall be spread over the entire consolidated City of Prior Lake.
4629 Dakota St. S.E., Prior Lake. Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
Ai'i EQUAL OPPORTUNITY EMPLOYER
Note:
Note:
Double starred funds shall be spread over the consolidated City except for the former
Savage portion subject to annexation.
All other bond issues have sufficient fund balances to cover debt requirements.
Passed and adopted this _th day of
{Seal}
,1993.
YES
NO
Andren
Fitzgerald
Kedrowski
Scott
White
Andren
Fitzgerald
Kedrowski
Scott
White
Frank Boyles
City Manager
City of Prior Lake
September 8, 1993
Scott County Auditors' Office
Courthouse 102
428 S. Holmes Street
Shakopee, MN 55379-1379
Attention: Tom Hennen
Re: City of Prior Lake
"Proposed" 1994 Tax Levy Certification
Dear Tom:
The Prior Lake City Council approved its preliminary 1994 tax levy during its regularly
scheduled meeting of September 7, 1993. Enclosed is an original Resolution 93-74 certifying
Prior Lake's "proposed" property tax levy for 1994 as required by state statute.
As indicated within the aforementioned resolution, the City will be conducting its public hearing
relative to the budget process on Wednesday December 8, 1993 with a possible continuation to
Wednesday December 15, 1993.
Please direct any questions or comments regarding the property tax amount or date selection to
my attention at 447-4230.
Sincerely,
Ralph Teschner
Finance Director
City of Prior Lake
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTC:'iITY EMPLOYER
Prior Lake
1994 BUDGET TIMETABLE
(Revised 8/31/93)
JUNE 21
City Council approval of budgcttimctable
JULY 6
Distribution of budgct aids & timetable
JULY 7 - JULY 21
Department heads conduct employee meetings to receive input
on 1994 needs and prepare budget draft
JULY 19
Council input on Budget Programs & Priorities
(Workshop IH)
JULY 22
Deadline for submission to Finance
JULY 23 - JULY 30
Budget information consolidated by Finance
AUGUST 1
City receives information from State Department of Revenue
on HACA, ORA, and local government aids
AUGUST 2-6
Finance Director, City Manager confers & reviews
with each department head
AUGUST 9-20
Budget draft & docwnentation is prepared
AUGUST 30
Council workshop on budget draft
(Workshop 1#2)
SEPTEMBER 7
Resolution adopting proposed budget and authorizing
proposed property tax levy
SEPTEMBER 8
"Propa;ed Tax Levy Certification" to Scou County Auditor
SEPTEMBER 13-30
Budget refmement by Finance Director, City Manager and
Department Heads
OCTOBER 1-15
Final draft of Manager's budget
OCTOBER 18
Council workshop on fmal budget draft
(Workshop 1#3)
NOVEMBER 11-23
County mails truth-in-taxation notices
DECEMBER 8 - DECEMBER IS (if continued)
Budget public hearing
Budget adoption
DECEMBER 20
Final 1994 Property Tax Levy Approval
DECEMBER 28
Statutory deadline to file tax certification with
County Auditor's Office