07-08-1996 Council Packet - Laserfiche WebLink

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I 1 ] I I ] 1 ] 1 ] ] 1 1 1 1 1 1 1 1 Tax Rates Some economists believe that from a statewide perspective, the 1995 tax year may indicate a turnaround in the sluggish tax base growth experienced in Minnesota the last few years. Overall, real and personal property market values within cities increased by 4.7% from 1994 to 1995. Residential homestead value increased by 7.5%, the Martment property class decreased by 3.3%, and commercial and industrial increased by a minor 0.3%. Although it is impossible to consider every aspect and variable of local government spending, average tax rates are often used as a benchmark. The following rates are expressed as a percentage of tax capacity: Average City Tax Rate Average County Tax Rate Average School Tax Rate 1995 1994 1995 1994 1995 1994 Taxes collectible All cities statewide Metro area cities 26.6 23.9 26.4 23.2 37.5 36.9 37.6 36.3 65.0 67.5 62.6 64.2 City of Orono 15.6 16.3 37.5 37.4 65.6 65.0 For the City of Orono, '995 and 1994, average special ux rates were 8.69% and 7.38%, respectively. As the above table indicates, the City of Orono ’s average tax rate remains well below both the statewide and metro area average. Governmental Expenditure Trends Due to the differences in cities and the services they provide, it Is very difficult to compare allocation of service expenditures to individua. cities. However, for your information, we have provided a five-year statewide trend which portrays ti e typical level of expenditures by f<jnction for cities over 2,500 in population and a similar comparison to the City of Orono ’s 1994 and 1995 expendinires. 1991 1992 1993 1994 City of Orono 1994 1995 Expenditures (excluding debt principal) General government 9.8%10.3%11.3% 11.0%16.0% 19.0% Public safety 21.7 23.7 23.3 23.4 37.9 38.6 Streets and highways 23.6 22.1 21.9 23.9 28.0 26.0 Sanitation 1.7 1.8 1.6 0.5 1.6 1.6 Health 1.0 1.1 1.0 1.0 - - Libraries 2.1 2.1 2.0 2.4 -- Parks and recreation 8.5 8.5 8.^9.1 1.8 3.3 HRA and economic development 13.7 11.9 12.5 10.5 -- Airports and transit 0.5 0.4 0.4 0.8 -- interest and fiscal charges 9.7 9.4 8.7 8.6 8.7 8.0 Miscellaneous expenditures 4.4 4.5 3.9 4.1 4.5 3.3 Capital outlay 3.3 4.2 4.9 4.7 1.5 0.2 Total expenditures 100.0 %100.0% 100.0%100.0%100.0%100.0% The City of Orono ’s Public Safety Expenditures are a fairly high percentage of total spending due primarily to the cost of services provided to surrounding cities. These costs are offset by corresponding revenue which is included in charges for services. -4-