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TRUTH AND TAXATION MEETING

TRUTH AND TAXATION MEETING. Purpose of this meeting is to present the City’s Proposed 2014 Budget and to receive public input and comments. Where do Cities get their money ?. TOTAL BUDGET $5,856,301. Two segments make up the total budget Governmental Funds - $4,167,253

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TRUTH AND TAXATION MEETING

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  1. TRUTH AND TAXATION MEETING

    Purpose of this meeting is to present the City’s Proposed 2014 Budget and to receive public input and comments
  2. Where do Cities get their money?
  3. TOTAL BUDGET $5,856,301

    Two segments make up the total budget Governmental Funds - $4,167,253 General, Special, Debt, Capital Enterprise Funds - $1,689,048 Water, Sewer, Storm Sewer
  4. TOTAL 2014 GENERAL GOVERNMENT = $4,167,253Revenues Sources 1. Intergovernmental 23.0% $953,448 LGA Aid, Bus Grant, MSA, County Library, State Aids 2. Property Taxes 54.0% $2,256,248 Certified Levy, Pool Referendum, Delinquent taxes Fire Hall Referendum 3. Other Taxes 3.2% $132,039 TIF receipts, Special Assessments 4. Other Revenues 16.3% $679,855 Rents, Fees, Donations, Licenses, Permits, Fines, Interest 5. Fund Balance 3.5% $145,661
  5. 2014 GENERAL GOVERNMENT BUDGET = $4,167,253 Expenditures 1. General Operating $1,937,421 46% General Government, Streets Grounds, Swimming Pool, Park Law Enforcement, Dump, Street Lighting, Animal Control 2. Special Funds $734,876 18% Library, Economic Development Fire, Civic Center, Heartland, Revolving Loan 3. Debt $790,744 19% 4. Capital $704,212 17% Capital Building, Capital Equip., TIF Districts
  6. General Funds Clerk $453,104 Law Enforcement $477,192 Emergency Services $ 3,250 Parks $283,498 Solid Waste (dump) $ 5,556 Animal Control $ 1,700 Streets $424,569 Swimming $206,352 Summer Rec $ 7,500 Signal Lights $ 2,200 Street Lighting $ 68,000 Unallocated $ 4,500 Special Funds Library $307,947 Economic $ 70,905 Fire Dept $261,500 Civic Center $ 64,000 Heartland Bus $ 2,000 Revolving Loan $ 28,524 EXPENDITURES – General & Special Funds
  7. Factors that can influence the budget Inflation State Mandates Council Initiatives Citizens Ideas State Law Changes: Homestead Exclusion Property Tax Formulas Federal Law Changes: Health Care Tax Increment Districts: expiration Budget Changes can occur from Year to Year
  8. STATE SALES TAX SAVINGS The State of Minnesota passed legislation in 2013 regarding Sales Tax. Cities do NOT have to pay sales tax on many items. It was estimated that the City of Stewartville would not have to pay $34,780 The City of Stewartville did not increase the Certified Levy for 2014 as the projected savings in sales taxes were used for projected increases in: Law Enforcement contract $13,870 Capital Improvements $20,910
  9. City operations are funded by tax dollars and the property tax system is determined by the State Legislature. Enterprise operations are similar to a for-profit commercial business. Enterprise operations collect fees that are established by the City through a rate structure and CANNOT use property taxes. Established fees must: Cover all operating costs Pay for capital improvements and expansion Fund reserves Be equitable and affordable Information from Ehlers Advisor (Sept 2007) ENTERPRISE FUNDS
  10. Retained Earnings (also referred to as reserves) are used for: Operating expenses when a shortfall in current years revenues occurs Unanticipated expenses (major maintenance) Future Recognized project Well on North side of river Capital Improvement Projects - Mains Major improvements & expansion of Treatment Plant – Phase 3 Enterprise Retained Earning
  11. Factors That Make-up Your Property Taxes 1) State Formulas based on type of property 2) Assessed Market Value (Olmsted Co Assessor’s Office) 3) School Levy 4) City Levy 5) County Levy 6) State Tax (commercial/industry) =============== 7) School Referendum Fire Hall Referendum Pool Referendum
  12. 2013 $303,600,150 Increase of $4,282,950 New Construction Re-valuations (commercial/industrial values were recently completed 2014 $309,213,600 Increase of $5,613,450 New Construction Re-valuations Assessed Market Value
  13. Certified Levy $1,951,760 (does not include pool referendum of $147,053 or fire hall referendum of $140,462) NO Levy Increase from 2013 2014 CITY CERTIFIED LEVY
  14. Total Tax Capacity Rate for General Operating 20132014 City Rate 56.425 55.619 County Rate 58.217 56.027 School Rate 26.429 25.489 Plus Referendum (based on Market Value) School .18253% Pool .04359% Fire Hall .041090% TAX CAPACITY RATE
  15. Property Tax History – (Tax Capacity Rate)
  16. Example of Property Tax Comparison 2013 to 2014 Residential – Average Home
  17. Example of Property Tax Comparison 2013 to 2014 Commercial/Industrial – Average $200,000
  18. HISTORICAL INFORMATION 2009-2014
  19. Tax Rate Comparison – Certified Levy Divided by Assessed market Value
  20. LEVY DATA PER CAPITA
  21. QUESTIONS????

  22. 2014 CITY BUDGET
  23. THANK YOU FOR COMING

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