HomeMy WebLinkAbout12-04-2000 Truth In Taxation Packet»-
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REQUEST FOR COUNCIL ACTION
DATE: November 29,2000
ITEM NO:
Department Approval:Administrator Reviewed:Agenda Section:
Name RonMoorse A City Administrator ’s
Title City Administrator Report
Item Description: Truth-in-Taxation Hearing
Attachment: Budget Information for Truth-in-Taxation Hearing
The purpose of the Truth-in-Taxation healing is to provide an opportunity for citizens to ask
questions and provide comments regarding the proposed 200! budget and tax levy.
Hearing Process
A. City Administrator provides a brief overview of the 2001 budget and tax levy.
B. Mayor opens the hearing.
C. Public input.
D. Mayor closes hearing.
COUNCIL ACTION REQUESTED:
Motion to confirm that the final budget hearing will be held at 7:00 p.m. on Monday, December 11,
at which time the final 2001 budget and tax levy will be adopted.
• • •
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.
ii' <1 % <'
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November 29, 2000
Page 2
Budget Information for Truth-in-Taxaticn Hearing
Sewer and Water Fee Increases
As called for by the City's plan for funding long-term repaii and replacement of the City's water and
sewer infrastructure, the proposed budget reflects a 3.2% increase in water rates and a 2.8% increase
in sewer rates.
... •
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City of Orono
Where Does Your Tax Dollar Go?
Miscellaneous
9.1%
City of Orono
13.2%
Orono School #278
41.5%
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Hennepin County
36.2%
2001 Proposed Tax Levy
, •!
City of Orono
Tax Levies
Actual 2000 vs Proposed 2001
Tax Levy Collectible
Tax Levies 2000 2001
■ r^
i.For all PuTDOses Exceot Debt Service
General $1,858,410
1 1
$1,943,900
PIR Infrastructure-Storm Sewer 45,000 45,000
PIR Infrastructure-Roads 35,450 35,450
Park-< - Land Acquiriiion and Development 5,000 5,000
Imp-‘*ve & Equip Ojtlay - Capital Equipment 0 90,000
For Debt Sci vice
■ !
• • ;*
- ; iv;
i -
The tax levies have not been reduced by Fiscal Disparities Credit
Tax Levy Net of HAC A
State Paid HACA
Total Tax Levy Including HACA
$2,363,560
309,551
$2,443,350
309,630
$2.673.111 $2,752^980
BtlDGnVteOlYTAXLIVY.lU
Increase
(Decrease)
$85,490
0
0
0
90,000
$79,790
79
$79,869
Percent
Change
4.60%
0.00%
*0.00%
0.00%
1995 (1989) Water Refunding Bonds 75,000 0 (75,000)-100.00%’
1992 G.O. Bonds 45,000 45,000 0 0.00%
1995 (1985) Refunding Bonds 15,000 0 (15,000)-100.00%
1997 G.O. Bonds 15,000 15,000 0 0.00%
1991 Public Facilities Bonds 250,000 250,000 0 0.00%
1999 Improvement Bonds
Total
19,700
$2,363,560
14,000
$2,443,350
(5,700)
$79,790
-28.93%
3.38%
3.38%
0.03%
2.99%
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City of Orono
Tax Capacity, Local Levy, & Tax Capacity Rates
2001 Over (Under) 2000
Actual Estimated
TAX CAPACITY 2000 2001 •Amount Percent
Real Estate $15,777,690 $17,595,396 $1,817,706 11.52%
Personal Property 172,164 175,235 3,071 1.78%
Deduct Tax Increments 0 0 0 0.00%
Deduct Contrib Fiscal Disp (276,999)(319,033)(42,034)15.17%
Net Tax Capacity (To calculate rate)$15,672,855 $17,451,598 $1,778,743 11.35%
LOCAL LEVY
Gross Levy $2,673,111 $2,752,980 $79,869 2.99%
Deduct HACA (309,551)(309,630)(79)0.03%
TOTAL LEVY NET OF HACA $2,363,560 $2,443,350 $79,790 3.38%
Deduct Fiscal Disparities (41,858)(41,760)98 -0.23%
Net Local Levy $2,321,702 $2,401,590 $79,888 3.44%
W
TAX CAPACITY RATES
General Revenue 11.643%10.948%-0.695%-5.97%
PIR Infrastucture-Storm Sewer 0.282%0.253%-0.028%-10.10%
PIR Infrastructure-Roads 0.222%0.200%-0.022%-10.06%
Parks - Land Acquisition & Development 0.031%0.028%-0.003%-9.16%
Improve & Equip - Capital Equipment 0.000% 0.507%
0.507%—
Debt Service 1 .OtO’%0.417%-0.646%-60.79%
HRA Building Bonds 1.566%1.408%-0.158%-10.09%
Total Local Tax Capacity Rate 14.807%13.761%-1.045%-7.06%
TAX CAPACITY • The real estate and personal property tax capacity amounts are reduced by any tax increments and the contribution amount
to the fiscal disparities to arrive at the total value of tax capacity used for calculating the tax capacity rate.
LOCAL LEVY - The amount of gross tax is reduced by the state paid HACA (Homestead and Agricultural Credit Aid), and by the Fiscal Disparities
distributed through the county.
TAX CAPACITY RATE • The net local levy amount is divided by the tax capacity to arrive at a percentage or tax capacity rate.
■UDGETVOOnTAXCAPt.l 2J
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* *City of Orono
Effect of 2001 Tax Levy & Budget on Homes
Market Value for 2000 Taies $100,000 $200,000 $500,000
2000 2001
0% incr
2001
5% incr
2000 2001
0% incr
2001
5% incr
2000 2001 2001
0% incr 5% in#
Estimated Market Value
Tax Capacity (Net) *
Tax Capacity Rate
Net Tax
$$ Increase (Decrease) from 2000
% Increase (Decrease) from 2000
$100.000 $100.000 $105.000 Sr; $200.000 $200.000
2,8061,156
$171.17
1,156 1,239
14.807% 13.761% 13.761%
2,806
$159.08
($12.09)
-7.1%
$170.43 $415.48
l3
($0.74)s
-0.4% ^
$386.13
($29.35)
-7.1%
• 2000 Tax Capacity (net) • 1% of first $76,000 market value, plus 1.65% of all value over $76,000
2001 Tax Capacity (ne t) "• 1% of furst $76,000 maricet value, plus 1.65% of all value over $76,000
BODonMMnrAXimciu
$210.000 M $500.000 $500.000 $525.000
2.971 @ 7,756 7,756 8,169
14.807% 13.761% 13.761%
$408.84
($6.65;
-1.6% |gi
14.807% 13.761% 13.761%
$1,148.43 $1,067.30 $1,124.07
($81.13) ($24.36)
-7.1%•2.1%
,
City of Orono
Effect of 2001 Tax Levy & Budget on Commercial Property
For Market Value of $500,000
.
^Imated Market Value
Tax Capacity (Net) •
Tax Capacity Rate
Net Tax
$$ Increase (Decrease) from 2000
% Increase (Decrease) from 2000
• 2000 Tax Capacity (net) •» 2.40% of first $150,000 market value, plus 3.4% of all value over $150,000
2001 Tax Capacity (net) - 2.40% of first $150,000 market value, plus 3.4% of all value over $ 150,000
auDOtiuMivrAXimci u
2000 2001 2001
0% Incr.5% Incr.
$500,000 $500,000 $525,000
15,500 15,500 16,350
14.807%13.761%13.761%
$2,295.09 $2,132.96 $2,249.92
($162.13)($45.16)
-7.1%-2.0%
ff
City of Orono
Where Does Your Tax Dollar Go?
Miscellaneous
7.0%
City of Orono
11.6%
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Hennepin County
31.1%
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Orono School #278
50.3%
2000 Actual Tax Levy
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TAXES
Oenenl Propeity Taxes
LICENSES ft PERMITS
1
WTCROOVERNMENTAL REVENUE
Federal Grant*Ejnergency Preparedness
Homestead ft Agricultural Credit Aid (HACA)
Local Govemment Aid (LGA), fotinerly LPA
PayroU Aid PERA
State Grants ft Aids • Other
Police Town Aid
Police Training Reimbursement
Federal COPS Grant
Mtfflicipal State Aid-Streets
County Grant-Recycling Program
Metropolitan Council Grant • Comprehensive Plan
TOTAL INIERGOVERNMENTAL REVENUES
CHARGES FOR SERVICES
Plan Check ft Site Exam Fees
Condhkmai Use-Variance ft Subdivision Fees
On-Site Septic Program Fees
Contracted Police Services
Contracted Inspection Services
Contracted Animal Control
Contncted Public Works Servica
Police Special Services
Administrative Charges to Other Funds
Recycling Program Fees
OlhmCharges
TOTAL CHARGF-S FOR SERVICES
FINES ft FORFEITS
Court Fines
Animal Impound Fees
TOTAL FINES ft FORFEITS
MISCELLANEOUS
Interest Income
OperatfaigTransrer In
Other
TOTAL MISCELLANEOUS INCOME
TOTAL GENERAL FUND REVENUES
Fund Balance Used
Total General Fund Revenues and Fund Balance Used
City of Orono
2001 General Fund Revenues
Ifli
Dollar
1999 2000 2001 Increase Increase
Actual Dudcct iltiduct tDccrcase) (Decrease)
$1,788,160 $1,858,410 $1,943,900 $85,490 4.6%
324.610 264,000 305.000 41.000 15.5%
4,530 4.000 4,000 0 0.0%
302,530 309.550 309,630 80 0.0%
9,290 9.280 9,280 0 0.0%
7,220 7.220 7,220 0 0.0%
0 0 0 0 0.0%
98,400 90,000 110,000 20.000 22.2%
5,270 5.200 5,200 0 0.0%
45,000 30.000 72,900 42.900 143.0%
89,000 89.000 96,000 7.000 7.9%
17,800 19,530 14,860 (4.670)-23.9%
0 0 0 0 0.0%
579.040 563.780 629.090 65.310 11.6%
135,080 105,000 120,000 15,000 14.3%
46,990 35,000 40,000
5,000 14J%
54,070 55,500 55,500 0 0.0%
66U20 686,000 708,000 22,000 3.2%
37,360 20,000 30,000 10,000 50.0%
29,120 29,500 31,000 1,500 5.1%
11,530 10,000 10,000 0 0.0%
49,850 30,000 40,000 10.000 33J%
50,000 54,190 47,520 3,330 6.1%
66.050 68,200 v6,000 (2,200)•22%
29,300 15,000 22,430 7,430 49.5%
1.170,670 1.108.390 1.180.450 72.060 6.5%
127,310 80,000 100,000 20,000 25.0%
1,390 4,000 2,000 (2,000)-SO.0%
128,700 84.000 102,000 18,000 21.4%
68,990 100.000 100.000 0 0.0%
0 0 0 0 0.0%
66,440 29.900 30.000 100 0J%
135,430 129,900 130.000 100 0.1%
K126,610 $4,008,480 $4,290,440 $281,960 7.03%
0 45,000 0
4.126.610 4.053.480 4.290.440 V
1
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m •' ' i-.-y
1: f •. :
*
Personal Services
Supplies & Maintenance
Professional Services
Insurances
Other Expenses
Capital Outlay
Transfers to Other Funds
Total
ijOTVSWKSttUPGETaooiVIXliiU u
City of Orono
2001 General Fund Expenditures by Catagory
1999 2000 2001
Dollar
Increase
%
Increase
Actual Budget Budget (Decrease)(Decrease)
2,216,728 2,381,710
•
2,595,930 214,220 8.99%
393,967 422,630 425,000 2,370 0.56%
678,804 663,440 663,150 (290)-0.04%
66,126 65,990 69,930 3,940 5.97%
260,814 302,500 319,030 16,530 5.46%
114,150 112,210 112,400 190 0.17%
175,000 105,000 105,000 0 0.00%
3.905.589 4,053.480 4,290.440 236.960 5.85%
k
City of Orono
2001 General Fund Expenditures by Department
Department
City Council
Administration
Elections
Assessing
Finance
Legal
Central Services
Human Services
Police
Fire
*
Planning & Zoning
Engineering
Street Maintenance
Paries & Recreation
Recycling
Special Services-Consulting & Police
Special Projects & Contingency
Transfers to Other Funds
BUDGn\20ei\G«Mi».l»
1999
Actual
$54,125
208,292
187
102,178
156,382
94,597
202,032
14,828
1,506,718
260,690
362,285
15,583
479,229
62,668
69,773
79,080
141,941
95,000
TOTAL GENERAL FUND EXPENDITURES $3.905.588
2000
Budget
$60,650
216,230
10,140
95,400
167,550
91,200
188,770
17,490
1,638,640
266,810
373,960
9,150
519,040
65,820
' 79,580
56,050
92,000
105,000
$4.053.480
2001
Budget
Dollar
Increase
fPecn-...sftI
$66,040
232,940
5,070
101,000
176,660
89,540
190,450
17,000
1,737,050
292,640
440,530
9,650
541,820
68,150
77,750
■>'Jn o
66,150
73,000_
105,000
$5,3 ‘‘0
16,7i<;
(5,070)
5,600
9,110
(1,660)
1,680
(490)
98,410
25,830
66,570
500
22,780
2,330
(1,830)
10,100
(19,000)
0
$4,290,440 $236,960
%
Increase
(Decrease)
8.89%
7.73%
-50.00%
5.87% »
5.44%
-1.82%
0.89%
-2.80%
6.01%
9.68%
17.80%.
5.46%
4.39%
3.54%
-2.30%
18.02%
-20.65%
0.00%
5.85%
1 Fund
Special Revenue Fundi
Park
Improv. & Equip. Outlay
Community Investment
Capital Projects Funds
PIR Fund
MSA Fund
Debt Service Funds
1982 Improvement Bonds
1991 Public Facilities Bonds
1992 Improvement Bonds
199S (1985) Reflmding Bonds
1997 Improvement Bonds
1999 Improvement Bonds
Enterprise Funds
Water Operating
Sewer Operating
1995 (1989) Refunding Bonds
Golf Operating
Total
im
rl-
City of Orono
Combined Summary of Revenues & Financing Sources
For 2001
Use of
Am ^
Pronerlv Tax
Special
Assrssments
Licenses &
Permits
Inter-
Oovcmmcnlal
Charges for
Services
Fines &
Forfeits
Interest
Income
Misc.
Revenue
Incoming
Transfers
Fund Dal or
Retained Earn Total
1,943,900 m 305,000 629,090 1,180,450 102,000 100,000 30,000 m m 4,290,440
5,000 6,000 50,000
%
116,000 177,000
90,000 m m ---21,500 13,510 105,000 -230,010
m m --m •135,000 •••135,000
80,450 3,530 m m 4O,d0O
•
123,980
m 3,390 m •m •8,200 m •
•
11,590
m
•
•m .0
250,000 .m 25,000 130*000 4,760 409,760
57,800 m 30,800 -62,430 196,030
•m 550 -76,450
15,000 135,600 m 19,000 --169,600
14,000 84,780 m 10,740 13,560 m 123,080
m 47,540 272,400 34,500 72,190 m m 426,630
m -m -737,500 m 86,700 22,400 m 5,510 852,110
m 52,320 m -m -19,050 24,540 107,380 81,180 284,470
--m -206,750 -15,300 -m 13,875 235,925
2.443.350 384.960 305.000 629.090 2.397.100 102.000 552.340 212.640 355.940 360.205 7.742.625
General Fund
Snedel Revenue Funds
Perk
Improv. A Equip. Outlay
Conununity Investment
^pltal Protects Funds
PIR Fund
MSA Fund
Debt Service Funds
19S2 Improvement Bonds
1991 Public Paciiities Bonds
1992 Improvement Bonds
1993 Refttnding Bonds (1985)
1997 Improvement Bonds
1999 Improvement Bonds
Enterprise Funds
Water Operating
Sewer Operating
1995 Refunding Bonds (1989)
Golf Operating
Toul
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. •• ’ T}' •• •:
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City of Orono
Combined Summary of Expenditures & Financing Uses
For 2001
Increase to
V-
^ V r' .i
General Public Public Water Sewer Golf Capital Debt Other Expend/Fund Bal or
Government Safety Wot’iss Ooeratinc OocratinE OoeratinE Outlay Service Transfers Out Retained Earn Total
878,700 2,357,820 687,720 «--112,400 -253,800 -4,290,440
•m 177,000 .
1
m 177,000
•m •m m 121,500 -1,500 107,010 230,010
m m m ----m 130,000 5,000 135,000
m m 70,450 .53,530 123,980
m --•--0 -•11,590
•
11,590
m 0
•m 409,760 -409,760
.•196,030 196.030
m .77,000 •77,000
m -168,530 1,070 169,600
-m 118,500 4,580 123,080
291,410 135,220 426,630
m m -•755,310 -96,800 ---852,110
m m •••--284,470 --284,470
m *-m -m 199,950 35,975 m --235.925
878.700 2.357.820 6i7.720 29K410 755.310 199.950 614.125 1.254.290 385.300 318.000 7.742.625