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TRUTH AND TAXATION MEETING

TRUTH AND TAXATION MEETING. Purpose of this meeting is to present the City’s Proposed 2013 Budget and to receive public input and comments. TOTAL BUDGET $5,586,521 . Two segments make up the total budget Enterprise Funds - $1,747,678 Water, Sewer, Storm Sewer

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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 2013 Budget and to receive public input and comments

  2. TOTAL BUDGET $5,586,521 Two segments make up the total budget Enterprise Funds - $1,747,678 Water, Sewer, Storm Sewer Governmental Funds - $3,838,843 General, Special, Debt, Capital

  3. 2013 GENERAL GOVERNMENT BUDGET = $3,838,842 Expenditures 1. General Operating $1,912,187 50% General Government, Streets Grounds, Swimming Pool, Park Law Enforcement, Dump, Street Lighting, Animal Control 2. Special Funds $774,074 20% Library, Economic Development Fire, Civic Center, Heartland, Revolving Loan 3. Debt $603,688 16% 4. Capital $548,893 14% Capital Building, Capital Equip., TIF Districts

  4. General Funds • Clerk $439,503 • Law Enforcement $487,422 • Emergency Services $ 10,750 • Parks $276,012 • Solid Waste (dump) $ 5,573 • Animal Control $ 1,700 • Streets $368,405 • Swimming $200,538 • Summer Rec $ 6,000 • Signal Lights $ 2,200 • Street Lighting $110,084 • Unallocated $ 4,000 • Special Funds • Library $290,544 • Economic $ 63,405 • Fire Dept $261,500 • Civic Center $ 61,692 • Heartland Bus $ 73,852 • Revolving Loan $ 23,081 EXPENDITURES – General & Special Funds

  5. TOTAL 2013 GENERAL GOVERNMENT = $3,838,842Revenues Sources 1. Intergovernmental 19.6% $755,647 LGA Aid, Bus Grant, MSA, County Library, State Aids 2. Property Taxes 55.0% $2,113,813 Certified Levy, Pool Referendum, Delinquent taxes 3. Other Taxes 3.8% $143,525 TIF receipts, Special Assessments 4. Other Revenues 18.0% $688,252 Rents, Fees, Donations, Licenses, Permits, Fines, Interest 5. Fund Balance 3.6% $137,605

  6. 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

  7. 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

  8. 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

  9. 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 8) Pool Referendum

  10. 2012 $299,317,200 Decrease from 2011 caused by State’s new Calculation Method (Homestead Exclusion) 2013 $303,600,150 Increase of $4,282,950 New Construction Re-valuations (commercial/industrial values were recently completed) Assessed Market Value

  11. Certified Levy $1,951,760 (does not include pool referendum of $147,053) • Levy Increase from 2012 is $143,523 • New construction/revaluation will absorb $66,421 • New revenues from property tax increase $77,102 • NOTE: For every 1% levy increase approximately $19,530 2013 CITY CERTIFIED LEVY

  12. Total Tax Capacity Rate 20122013 • City Rate 54.196 56.425 • County Rate 57.238 58.217 • School Rate 27.574 26.429 • Plus Referendum (based on Market Value) • School .21099% .21282% • Pool .04351% .04361% TAX CAPACITY RATE

  13. Property Tax History – (Tax Capacity Rate)

  14. Example of Property Tax Comparison 2012 to 2013 Residential – Average Home

  15. Example of Property Tax Comparison 2012 to 2013 Commercial/Industrial – Average $200,000

  16. HISTORICAL INFORMATION 2009-2013

  17. Tax Rate Comparison – Certified Levy Divided by Assessed market Value

  18. LEVY DATA PER CAPITA

  19. QUESTIONS????

  20. 2013 CITY BUDGET

  21. THANK YOU FOR COMING

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