12-01-2003 Truth in Taxation - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION DATE: November 26» 2003 ITEM NO: Department Approval:Administrator Reviewed:Agenda Section: Name Ron Moorse City Administrator's Title City Administrator __lOh___Report Item Description: Truth in Taxation HcaAng Attachmcots: I. Tax Levies-Actual 2003 vs. Proposed 2004 2. Tax Capacity, Local Levy, and Tax Capacity Rates 3. Effect of 2004 Tax Levy and Budget on Property Owners 4. Materials from Hennepin County re: Tax Capacity, and Property Tax Impacts In Orono. Truth in Taxation Hearing The Truth in Taxation hearing is an opportunity for the public to ask questions and provide comments regarding the proposed 2004 budget and tax levy. Proposed 2004 Bud2et The proposed 2004 budget reflects an effort to comply with the State>imposed levy limit, and to deal with reduced State Aid revenue; while maintaining current service levels, accommodating the additional costs related to the start-up of the Navarre Fire Station, and providing for necessary equipment replacement in the police, fire, and public works areas. General Fund BudgSl The proposed 2004 General Fund budget expendittnes are $4,701,490. This is a reduction of S11,390, or .2% from the 2003 budget. Although the General Fund budget expenditures are reduced overall, there are a number of areas that require increased expenditures. These include annual compensation adjustments, start-up costs for the Navarre Fire Station, acquisition costs related to an upgraded police records system, and costs related to the 2004 election. These increased expenditures are more than offset by a large number of expenditure reductions in the range of $500 to $2,000, as well as a number of more substantial expenditure reductions. The substantial expenditure reductions are in the areas of contracted street overlays, training and development, and special projects and contingencies. Tax Lew. Tax Rate, and Impact on Property' Owners The total tax levy required to fund the proposed 2004 budget is $3,197,930. This is an increase of $99,530, or 3.27%, over the 2003 levy. The total levy includes a Fire Facilities and Equipment Bonds debt service levy of $73,250, which will be used to fund the debt service on the bonds used 11 ' I II