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Home My WebLink About11-29-1995 Truth In Taxation PacketPublic A ttendance Meeting D ate LjoU. tS-H j I T :4 * □□Council Planning Co^I^ussION Park CoivcvnssioN Other Ttvyru itTr^^x^TioO Please hll olt the information REQli:STED BELOW FOR OUR CITY RECORDS. NAME (please print)ADDRESS 4.. 5.. 6. 7, 8. 9. PRESENT FOR (from agenda) NAME OR NUMBER 1 (lUCT Cu4J)y I22^^>c^cef>1AX ai Vl^'yR' # /f U yy 3. 10.. 11. n. 14. 15. WI395.4 TO;Mayor aiKl City Council FROM:Ron Moorsc, City Administrator DATE:November 27, 1995 SUBJECT: Truth In Taxation Hearing - 7:00 p.m., Wednesday, November 29 The attached memo provides an overview of the 1996 budget. Also attached is a set of grap ics which present overview information regarding major aspects of the budget. If you ^ ave any questions regarding this information, or concerning the Truth In Taxation heanng, please ca me. TO: FROM: DATE: Mayor ami City Council Ron Moorsc, City Administrator / November 27, 1995 SUBJECT: 1996 Budget and Tax Le>7 The proposed 1996 budget reflects an effort “ ^impacts, while positioning the city to address a number ol long term issues with substant F.xpendim res. Tax Le%^ and Jax Capacirv Raie areatest imo'’''! on the tax levy, is an increase of $10;.740 or 3.17% over the 199a e.xpenditure amount. The txx levy required to hand me total 19% budget is S2^0S0 340. Jhis^s an mcma.^of drainage). i^rr^iTTo remain one of the lowest in Hennepm County. Impact of f a reduction in the city’s share of the property ta.x The proposed budget and ■“ '^7 ' ‘ citv share of the property ta.x bill is reduced from does address a number of long tenn fiscal issues ind program needs. These are as foUows: Long Term Fiscal Issues Funding for infrastructure (replacement of reads and bridges, and storm water drainage projects).1. Funding for storm water management plan. \ . hi 1.19% Budget and Tax Levy Continued November 27, 1995 page 2 of 2 Program Highlights 1. Recodification of the cit>-’s ordinances. 2. Computerized mapping. 3. Employee recognition. 4. 5. Update of the city’s pay smicmre. Continuation of the multi-year water plant rehabilitation project 6. Continuation of the sewer infiltration and inflow reduction effort. 7, The continuation of a multi-year sewer lift station replacement program. Water and Sewer Fees The sewer and water rates will each increase by 37c in 1996. These increases are needed to match the expenditures necessary to fund both the day-to-day operations of the water and sewer funds, and the major repair and replacement of the city’s water and sewer facilities. \ •• 1* * 4 • ^ City of Orono1996 Combined Fund ExpendituresWater Operating Fund 247,730 4.1% Debt Serv ice Funds 1,021,734 16.7% Sewer Operating 785,945 12.9% '///✓/✓///✓///////✓-'>/✓✓//✓/✓///////////. '////✓//✓✓////✓✓///✓✓// ' • • » » »•'«:# # • f t « • » »«« • f • f # f f f f f f fIf^:::::n|nss:l|b^^4 • « « « • • I f * • « f # tf « » » « # »:« « # » f f • • • # • «SSif #f f f f Capital Projects lOO 0.7% Special Revenue Funds 474,480 7.8% /✓✓✓//////✓//✓////// Golf Operating 188,480 3.1% )>✓////✓✓//■✓✓///////✓//✓/i'✓ X • • * »OOOQOOO\•ooooooooooo*^OOOOOOOOOOOO'ooooooooooooo<^ tOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO< •OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO' >00000000000000000000000000000000000'>OOOOOOOOOOOOOOOOOOOOOOOOOQOOOOOOOO« >00000000000000000000000000'_____________________________________>000000' '°^88|||M||8||§88iFiSP'^QOOOOOSggggggggOOpOQj General Fund 3,347,755 54.8% Total Combined Fund Fxpenditures $6,106,124 Debt Service includes Water and Sewer Revenue Bonds City of Orono1996 General Fund Expenditures\.Capital Outlay 100,580 3.0% General Government 759,555 22.7%oooc ooooooo< ooooooooc ooooooocx: — o< CK^_______OOOOQOOOOc»ooooooooooooooo88888888888^880 0000000000000OOOOOOOOOOOQOC E////J ^✓✓////////////’/ ^aaaaa/aaa/aaaaa///^^^^^^^^^^^^*^ Street Maintenance 482,960 14.4% Recycling 76,155 2.3% Miscellaneous 117,440 3.5% Parks & Recreation 51,870 1.5% A A / A A A A A A A A A A A A f ^ ^ ^ ^ ^ ^ ^ ^ AAAAAAAAAAAAAAAAAAAAAAAA^^y^TSli^k^ A A A A A A A A A A A A A A A A A f A A A aaaaaaaaaaaaaaaa ................... 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IHI ggjgisBww’HWS** • i t» • 5111111 » ♦ j 1 5 i I j 5 ; * ji: ’::;:::::::;ililn;|||||::;|||||^ a L *•## «i •*##.••• 9|f Iff If t' tll!!!ll?»* Public Safely 1,759,195 52.5% Total General Fund F.xpenditures $3,347,755 Public Safety Includes and Additional $49,680 in Capital Outlay City of OronoGeneral Fund Expenditures By Major Category Dollar Maior Expense Category 1995 Budget Increase 1996 (Decrease) Budget From Prior Yr. % Increase (Decrease) Personal Services 1,861,592 1,922,850 61,258 3.29% Supplies, Maintenance, & Repairs 354,296 365,850 11,554 3.26% Other Charges 805,322 823,895 18,573 2.31% Capital Outlay 124,130 150,260 26,130 21.05% Transfers Out 84,900 84,900 0 0.00% General Fund Reserve 14,775 0 (14,775)n /a 3,245,015 3,347,755 102,740 3.17% It 4' City of Orono1996 Combined Fund Revenues Fines & Forfeits 61,200 1.0% Interest Income 384,250 6.3% ~//////////// Charges for Services 2,148,629 35.2% ffl*’ ♦ ♦♦♦♦♦•• ♦ ♦«♦♦♦♦ ♦ ♦♦ ♦♦♦•< ♦ ♦♦ ♦ ♦ ♦ Miscellaneous 320,080 5.2% ooo« ' A^OOOOOOOOOO' _ _ OOOOOOOOOOOOOOOOO'ooooooooooooooooooooooooo* oooooooooooooooooooooooooo<OOOOOOOOOOOOOOOOOOOOOOO) >00000000000000000000000' Intergovernmental 478,072 7.8% Licenses & Permits 185,000 3.0% Special Assessments 120,445 2.0% Use of Fund Balance 327,608 5.4% JOOOOOO'_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-•OOOOOOOOOOOOOOOOOOOOOOOOOOOOO' lOOOOOOOOOOOOOOOOOOOOOOOOOOOOO' OOOOOOOOOOOOOOOOOOOOOOOOO'" ■ lOOOOOOOOOOOOOOOOOOOOO'" ■ >000000000000000'>oo< General Properly Faxes 2,080,840 34.1% Total Combined Fund Revenues $6,106,124 City of Orono1996 General Fund Revenues General Property Taxes 1,647,940 49.2% f f » « «tl 9 f « f * %m»» «• «##««99»»«t9»»»*««ft«99| i 5 S *lli# # 9 » » # f1111 ;f flit.^ w!S!I tsi: Licenses & Permits 185.000 5.5% I ntergovemmental 442,630 13.2% ^^8888888888888888888882^ _.jooooooooooooooooooooo<^ ^.aSf^OOOOOOOOOOOOOOOOOOOOO' S-V^V-.VvV^VvV-.-VvVv4»600000000000000000000j‘ lt:WVvV-:-V^:iOTOOOOOOOOOOOOOOOOOOOQ|■i^:Vr:":V:<^»6oooooooooooooooooo^ :i-:---:----w5^00000000000000C>0Qr>oooooooooooooo« ‘ OO' yyj \ Miscellaneous 95,515 2.9% Fines & Forfeits 61,200 1.8% Charges for Services 915,470 *27..3% Total General Fund Revenues $3,347,755 * I . V-Taxes Licenses & Permits Intergovernmental Charges for Services Fines & Forfeits Interest Miscellaneous Total Revenue City of OronoGeneral Fund Revenues by Source1995 1,647,940 133,1 III 441,935 880,140 66, 41, 35; III III nil 3,245,015 1996 1,647,940 185,000 442,630 915,470 61,200 59,285 36,230 3,34 7,755 DollarIncrease(Decrease) 52000 695 35,330 (4,800) 18,285 1,230 %Increase(Decrease) 0.0% 39.1% 0.2% 4.0% -7.3% 44.6% 3.5% 102,740 3.2% City of OronoWhere Does Your Tax Dollar Go? Orono School #278 51.0% . : ; u!. RillIT#'##'*# mu ifttf Ifff##fIIf^iiliiiliH ilMsHBlHilln liil II ii iraiiiuaiiiiMiau am 1 11^ I f kmu [/✓✓✓/✓XXXX//XXXXXXXXX/XXXXXXXXXXXXX/////X/X XXX/XXXX/X/XXXXXXXXXXXXXX/XX/X/X/X/XX/X/// ’/✓/✓//XXXXX/XXXX/XX//XX/XXXXXXXXXXXX////X VXXXXXXXXX/X/XXXX/XXXXX/X/XXXXXXXXXX///// ‘ //X/XXXX/XXXXXXXXXXXXX///X///XXXXXXXXXXX /XXXXX/XXXXXXXXXXXXXX/XXXX//XXXXXXXXX/X ’✓✓XXXXXXXXX/XX////X///X/XXXXXX/XXXXXXX /XX/XXXXX/X/X/XXX////XX//XXXX/XXXX/XX//xx/xx/xxx/xxxxxxxxxxxxxxxxxxxxx/x/ ’XX//XXXX/XXXXXXX/X/XX///X/X/XXXXX^ ' L^/XXXXXXXXXXXXX/XXXXXXXX/XXX/XX///^✓xx/xxxxxxx//xxx/xx//x/xxxx//x// ■✓✓✓xxx/xxxx/xx/xxxxxxxxxxxxx/xx '/XX/XXX///XX/XXXX///XXXX////X '/X//XX//XX//X/XXX/XX/XXXXX/ ’✓X/X/////X/X////X/XXX/X/X ’XX//X/X/X/XXXXXXXX//XX :x/x/xx/x/xx//x//x/xx ►XXXXXXXXX//XXXXX OOOOOOOOOOOOOOOO' ood lilllirCity ofOrono Hennepin County 30.7% / Miscellaneous 6.5% 1996 Tax Levy City of Orono1996 Tax Levy Breakdown Infrastructure 40,000 1.9% General Government 552,390 26.5% ooooooo oooooooooo oooooooooooo \ >000000000000000 oooooooooooooooo ooooooooooooooooo oooooooooooooooooo ooooooooooooooooooo ooooooooooooooooooo oooooooooooooooooooo oooooooooooooooooooo ooooooooooooooooooooo ooooooooooooooooooooo ooooooooooooooooooooo DoooooooooooooooooooooDOOOOOOOOOOOO ooo /✓/////✓✓//✓✓. Debt Service 392,900 18.9% //✓/✓✓//////✓///////✓✓/✓////I /•✓/✓////✓///✓✓✓✓////////✓//✓/- //✓//✓✓✓✓//✓✓/✓//✓✓//✓/✓///✓/✓////: ✓✓///✓✓✓//✓✓✓/✓//✓/✓/✓✓///////✓///- ✓✓//✓/✓/////✓/✓✓//////✓✓///✓//////✓/. ////✓////////✓/✓/✓/✓//✓////✓✓//✓✓/✓✓✓; /✓✓✓/✓✓✓✓///✓//////✓//✓//✓✓/////////✓. ///////////////^/////^////^///LA V/ Street Maintenance 237,798 11.4% Police Operations 611,715 29.4% Bldg Inspect. & Zoning \ 148,809 7.2% \ Fire Protection 97,228 4.7% Total 1996 Tax Levy $2,080,840 City of Oiono Tax LeviesActual 1995 vs Proposed 1996 Tax Levies Tax Levy Collectible 1995 1996 Increase (tX*crease) Percent Change GENERAL $1,647,940 $1,647,940 $0 0.00% INFRASTRUCTURE (PIR)0 40,000 40,000 0.00% SEWER & WATER BONDS 1982 5,500 4,500 (1,000)-18.18% 1985 42,945 46,000 3,055 7.11% 1989 80,000 90,000 10,000 12.507c 1992 18,000 24,000 6,000 33.337c BUILDING BONDS-IIRA TOTALS 221,785 $2,016,170 228,400 _$2,080,840 6,615 $64,670 2.987c 3.21% THE TAX LEVIES ARE SHOWN AS REDUCED BY 11ACA AID 1 ROM T1 IE STALE BUT 1 lAVE NOT BEEN REDUCED BY nSCAL DISPARITIES CREDIT. 1995 1996 Increase (Decrease) Percent Change Tax Levy Net of HACA $2,016,170 $2,080,840 $64,670 3.217c Slate Paid HACA Total Tax Levy Incl. HACA 305,975 $2,322,145 289,979 $2,370,819 (15,996) $48,674 -5.23% 2.107c City of OronoTax Capacity, Lx)cal Levy, &Tax Capacity Rates 199(> Over (Under) 1995 TAX CAPACITY Actual 1995 Estimated 1996 Amount Percent Real Estate $12,780,145 $13,845,899 $1,065,754 8.34% Personal Property 194,020 195,000 980 0.51% Deduct Tax Increments 0 0 0 0.00% Deduct Contrib Fiscal Disp (319,388)(324,685)(5,297)1.66%. Net Tax Capacity (to calc rate)$12,654,777 $13,716,214 $1,061,437 8.39%. LOCAL LEVY Gross Levy $2,322,145 $2,370,819 $48,674 2.10%. Deduct HACA (305,975)(289,979)$15,996 -5.23%. TOTAL LEVY NET OF IIACA $2,016,170 $2,080,840 $64,670 3.21 %> Deduct Fiscal Disparities (48,933)(45,000)$3,933 - fJ.04%. • Net Local Levy TAX CAPACITY RATES General Revenue $1,967,237 $2,035,ai0 $68,603 3 49%. 12.753%12.015%.-0.738%-5.79%) PIR Infrastructure 0.00%0.292%0.292%.0.00% Debt Service 1.134%1.199%0.065%.5.76% HRA Building Bonds 1.717%1.665%.-0.052%.-3.02%) Total Local Tax Capacity Rate 15.604%14.843%-0.433%-2.78% TAX CAPACITY - 1 he 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 t;ix is reduced by the state paid IIACA (Homestead and Agricultural Credit Aid) and by the Fiscal Disparities distributed through the county. TAX CAPACITY RATE — The net local lev)' amount is divided by the tJix capacity to arrive at a percentage or tax capacity rate. City of Orono Eff«:t of Budget on Homes 1996 Eit Market Value Tu Capacity (Net) Tax Capacity Rate Net Tax (Decrease) from 1995 (Decrease) % from 1995 $100,000 $200,000 $300,000 $1,280 $3,280 $5,280 14.843%14.843%14.843% $189.99 $486.85 $783.71 ($9.75)($24.97)($40.20) -4.9%-4.9%-4.9% 1 Tax Capacity (net) = 1% of first $72,000 market value, plus 17c of all value over $72,000