12-14-2000 Truth In Taxation - Laserfiche WebLink

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TO:Mayor and City Council Members FROM: Ron Moorse, City Administrator DATE: November 29, 2000 SUBJECT: Budget Information for Truth-in-Taxation Hei iing Proposed 2001 Budget The proposed 2001 budget reflects an effort to manage expenditures and hold the tax levy to a moderate increase while accommodating increased expenditures related to addressing the increased demand for police services, enabling the City to retain and recruit high-quality staff, and strengthening the City ’s ability to address upcoming capital needs. Tax Levy, Tax Capacity Rate, and Impact on Property Owners The total tax levy required to fund the proposed 2001 budget is $2,443,350. This is an increase of $79,790 or 3.38% over the 2000 levy. The estimated tax capacity for taxes payable in the year 2001 is $17,595,396. This is an increase of $1,817,706 or 11.52% over the 2000 tax capacity. Based on the City's tax capacity and the proposed tax levy, the proposed tax capacity rate is 13.761 %. This is a 7.06% reduction from the 2000 tax capacity rate. Based on the reduction in the City's tax capacity rate, and assuming no change in property value, the City's share of the property tax bill on a home valued at $100,000 would decrease by $12.09 or 7.1%. For a home valued at $500,000, the City's share of the property tax bill would decrease by $81.13 or 7.1%. General Fund Budget Expenditures General Fund expenditures are highlighted as part of the proposed budget information because they have the greatest impact on the tax levy. The proposed 2001 General Fund budget expenditures are $4,290,440. This is an increase of $236,960 or 5.85% over the 2000 budget. The General Fund budget reflects the impacts of the additional police officers hired in 2000, and the market-based pay adjustments that were phased in effective January 1 and July 1 of 2000. The General Fund budget is basically unchanged in all other areas. Levj' for Future Capital Needs The proposed 2001 levy reflects the City ’s plans for the funding of upcoming capital needs, especially the City ’s share of the cost of replacing the Long Lake fire station, which will need to occur in 2002 due to the Highway 12 upgrade project. The proposed 2001 budget includes a levy of $90,000 to be placed into the Improvement and Equipment Outlay Fund and designated for these upcoming capital needs. By beginning to fund the capital needs at this time, the City will be better able to provide the necessary funding in future years without requiring large increases in the property tax levy.