HomeMy WebLinkAbout12-04-1996 Truth In Taxation PacketPublic A ttendance
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PROPOSED 1997 ANNUAL BUDGE'E/tvo
The proposed 1997 budget is fiscally conserva
tive in that it maintains current service le^ els while
positioning the city to address a number of long
term fiscal issues. These issues include the
following:
1. Funding for street repair and replacement.
2. Funding for priority sanitary sewer
projects.
3. Funding for storm water drainage projects.
GENERAL FUND EXPENDITURES
The proposed 1997 General Fund Expenditures,
those, with the greatest impact on the tax levy, are
$3,447,605. This is an increa.se of $99,850 or 2.9%
over the 1996 General Fund Budget. This rellects
an effoo. to hold the line on expenditures while
maintaining and improving current service
levels.
1997 GENERAL FUND EXI’ENDITtIRE.S
General Government
778 295 22.6%
Muc.
100.105
2.9%
pireel
Maintenance
496.220
14.4%
a-RecycIing
-.805
.•>1.8%
CIndudc5 add $66,?2i
in Capiul Outlay)
TAX LEVY
The tax levy required to fund the total 1997
budget is $2,161,630. This is an increase of
$80,790 or 3.88% over the 1996 levy. The por
tion of the tax levy required to fund the General
Fund budget is $1,680,980. This is an increase of
$33,040 or 2.07c over the 1996 General Fund levy.
The major reason for the 3.887c overall levy
increase is a levy of $45,500 to enable a substantial
increase in the city's street repair program. This
levy amount positions the city to address botfthort
term and long term street repair needs.
Because of a signifi.cant increase in the city's tax
base, the proposed tax levy will result in a
reduction in the city's tax capacity rate from
14.743% to an estimated 14.246%. This 3.367o
reduction in the city's tax capacity rate will
enable Orono's tax capacity rate to remain one
of the lowest in Hennepin County.
1997 GENERAL FUND REVENUES
Fines & l-orl TiU
64.400 1.9%
"TRUTH IN TAXATION" (T in T)
HEARING DATES
The city will hold at least one T in T hearing to
present the proposed 1997 levy and budget and
provide an opportunity for the public to comment
and make recommendations. The initial hearing
is set for Wednesday, December 4, 1996, at 7:00
p.ni If additional time is required to finish up the
public comment and discussion from the initial
hearing, a second, or continuation hearing, is set
for Wednesday, December 11,1996, at7:00p.m„
and will be announced at the close of the initial
hearing. If there is sufficient time for the public
comment and di.scussion at the initial hearing, the
Council will announce a date, time and place for
the subsequent hearing for the official adoption
of the final tax levy and budget. All hearings will
be held in the City Council Chambers, located at
2780 Kelley Parkway. Orono.
City of Orono
1997 Combined Fund Revenues
Charges for Services
2,002,790 27.9%
Interest Income
436,060 6.1%
Miscellaneous
300,875 4.2%
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Use of Fund Balance
1,035,268 14.4%^888§8§§§88i§§§§fei§§§i8fc^OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO^ OOOOOOOOOOOOOOOOOOOOOOOOOOOOOQ^ OOC jOOOOOOOOOOOOOOOQOOOOOOOQiB OO ;OOOOOOOOOOOOOOOOOOOOOOOC Ifcr OOOOOOOOOOOOOOOOOOOOOOail OOOOOOOOOOOOOOOC■‘
General Property Taxes
2,161,630 30.1%
Fines & Forfeits
64,400 0.9%
Intergovernmental
804,730 11.2%
Licenses & Permits
195,000 2.7%
Special Assessments
189,722 2.6%
Total Combined Fund Revenues $7,190,475
City of Orono1997 Combined Fund Expenditures
Water Operating Fund
355,190 4.9%
Sewer Operating
808,53011.2%
k
Golf Operating
249,335 3.5%
Debt Service Funds
1,000,075 13.9%
Capital Projects
934,700 13.0%
Special Revenue Funds
395,040 5.5%
General Fund
3,447,605 47.9%
Total Combined Fund Expenditures $7,190,475 Debt Service includes Water and Sewer Revenue Bonds
City of Orono
Licenses & Permits
195,000 5.7%
1997 General Fund Revenues
General Property Taxes
1,680,980 48.8%
::::::::
Intergovernmental
453,710 13.2%
Fines & Forfeits
64,400 1.9%
Charges lor Services
950,590 27.6%
Total General Fund Revenues $3,447,605
City of Orono1997 General Fund ExpendituresFvCapita! Outlay
161,320 4.7%
General Government
776,995 22.5%~ ooooooooooo5000000000000_ ooooooooooooo ^ oooooooooooooooo
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Miscellaneous
94,805 2.7%
Parks & Recreation
52,555 1.5%
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Street Maintenance
495,170 14.4%
Recycling
73,805 2.1%
Public Safety
1,792,955 52.0%
Total General Fund Expc.i, ‘ures $3,447,605
City of Orono% Increase in General Fund Expenditures
City of OronoGeneral Fund Expenditures By Major Category
Maior Expense Category
1996
Budget
1997
Budget
Dollar
Increase
(Decrease)
From Prior Yr.
%
Increase
rDecreasel
Personal Services 1,922,850 2,009,530 86,680 4.51%
Supplies & Maintenance 360,950 380,380 19,430 5.38%
Professional Services 560,650 548,705 (11,945)-2.13%
Insurance 73,700 66,900 (6,800)-9.23%
Other Expenses 277,935 276,560 (1,375)-0.49%
Capital Outlay 52,760 69,400 16,640 31.54%
Transfers to Other Funds 98,910 96,130 a,780)-2.81%
3,347,755 3,447,605 99,850 2.98%
City of Orono1997 Tax Levy Breakdown
Infrastructure-Storm Qainage
40,000 1.9%
General Government
533,375 24.7%
Infrastructure-Roads
45,500 2.1%
Debt Service
0 18.3%
lilSH
Street Maintenance
241,389 11.2%
Police Operations
646,169 29.9%
Bldg.Inspec. & Zoning
153,473 7.1%
Fire Protection
106,574 4.9%
Total 1997 Tax Levy $2,161,630
City of OronoTax LeviesActual 1996 vs Proposed 1997
* In December, 1995, all remaining principal maturities within the 1985 and 1989 Bonds called with the Series 1995 Refunding Issue.
The tax levy previously earmarked for the refunded bonds has been reallocated to the 1995 Refunding Bonds.
The tax levies are shown as reduced by HACA aid from the State, but have not been reduced by Fiscal Disparities Credit.
Tax Levy Net of HACA
State Paid HACA
Total Tax Levy Including HACA
1996
$2,080,840
290,152
MmML
1997
$2,161,630
__30 0,730
Increase
(Decrease)
$80,790
10,578
$91.368
Tax Levy Collectible Increase PercentTax Levies 1996 1997 (Decrease)Change
General $1,647,940 $1,680,980 $33,040 2.00%
PIR Infrastructure-Storm Sewer 40,000 40,000 0 0.00%
PIR Infrastructure-Roads
Sewer & Water Bonds
0 45,500 45,500 0.00%
1982 4,500 4,500 0 0.00%
* 1995 (1989) (Operating Funds)90,000 105,650 15,650 17.39%
1992 24,000 30,000 6,000 25.00%
* 1995 (1985) (Debt Funds)46,000 30,000 (16,000)-34.78%
1991 Public Facilities Bonds 228,400 225,000 _ (3,_400)-1.49%
Total $2,080,840 $2,161,630 $80^90 3.88%
Percent
Change
3.88%
3.65%
3.85%
City of OronoTax Capacity & Local Levy 1997 Over (Under) 1996TAX CAPACITY Actual1996 Estimated1997 Amount PercentReol Estate $13,942,213 $15,000,000 $1,057,787 7.59%Personal Property 200,133 204,000 3,867 1.93%
Deduct Ta.\ Increments 0 0 0 0.00%
Deduct Contrib Fiscal Disp (324,685)(325,000)(315)0.10%
Net Tax Capacity (to calc rate)$13,817,661 $14,879,000 $1,061,339 7.68%
LOCALLEVY
Gross Levy $2,370,992 $2,462,360 $91,368 3.85%
Deduct HACA (290,152)(300,730)($10,578)3.65%
TOTAL LEVY NET OF HACA $2,080,840 $2,161,630 $80,790 3.88%
Deduct Fiscal Disparities (42,570)(42,000)$570 -1.34%
Net Local Levy $2,038,270 $2,119,630 $81,360 3.99%
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.
City of OronoTax Capacity Rates 1997 Over (Under) 1996TAX CAPACITY RATES Actual1996 Estimated1997 Amount PercentGeneral Revenue 11.684%11.078%-0.606%-5.19%
PIR Infrastucture-Storm Sewer 0.284%0.264%-0.020%-7.04%
PIR Infrastructure-Roads 0.000%0.300% 0.300%0.00%
Debt Service 1.157%1.122%-0.035%-3.03%
HRA Building Bonds 1.618%1.483%-0.135%-8.34%
Total Local Tax Capacity Rate 14.743%14.247%-0.496%-3.36%
TAX CAPACITY RATE - 'Fhe net local levy amount is divided by the tax capacity to arrive at a percentage or tax capacity rate.
City of OronoEffect of 1997 Tax Levy & Budget on Homes
Market Value for 1996 Taxes $100,000 $200,000 $300,000
Est Market Value for 1997 Taxes
Tax Capacity (Net)
Tax Capacity Rate
Net Tax
$$ Increase (Decrease) from 1996
% Increase (Decrease) from 1996
0% iixr 5% incr 0% incr 5% incr 0% incr 5% incr
u u U U u it
$100,000 $105,000 $200,000 $210,000 $300,000 $315,000
$1,280 $1,380 $3,280 $3,480 $5,280 $5,580
14.246%14.246%14.246%14.246%14.246%14.246%
$182.35 $196.59 $467.27 $495.76 $752.19 $794.93
($6.36)$7.88 ($16.30)$12.19 ($26.24)$16.50
-3.4%4.2%-3.4%2.5%-3.4%2.1%
Tax Capacity (net) = 1% of first $72,000 market value, plus 2% of all value over $72,000
City of Orono
Hennepin County Property Tax Comparisons
Ten Lowest Property Taxes for All Taxing,. /istricts. **
City
Medina
Orono
Rank
1
2
Population
3,628
7,444
Combined
Taxes
Payable
1,649
1,702
Bloomington 3 86,683 1,719
Corcoran 4 5,508 1,766
Champlin 5 19,030 1,799
Edina 6 46,841 1,826
New Hope 7 21,651 1,832
Plymouth 8 57,391 1,836
Mhmetrista 9 3,758 1,844
Independence 10 2,952 1,852
Robbinsdale 10 14,255 1,852
* * Based on 1996 property taxes for a home valued at $105,000, in cities with populations
in excess of 2,500.
City of Orono
Hennepin County Property Tax Comparisons
Ten Lowest Property Taxes for City-Portion Only.
City
Deephaven
Plymouth
Medina
Orono
Rank
1
2
3
4
Population
3,621
57,391
3,628
7,444
City-Portion
Taxes
Payable
176
199
201
203
Edina
Shorewood
Champlin
Minnetonka
Corcoran
Wayzata
5
6
7
8
9
10
46,841
6,613
19,030
50,569
5,508
3,860
225
241
252
266
268
276
* * Based on 1996 property taxes for a home valued at $105,000, in cities with populations
in excess of 2,500.
City of OronoWhere Does Your Tax Dollar Go?
Orono School #278
52.2%
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8888888888a
City of Orono
11.7%
Hennepin County
29.3%
Miscellaneous
6.7%
1997 Proposed Tax Levy
City of Orono Tax Share by Jurisdiction For Proposed 1997 Tax Capacity Rates
$ 100,000 Home $200,000 Home $ 300,000 Home
Amount % Share Amount % Share Amount % Share
Orono School District #278 $803.08 52.097%$2,057.90 52.097%$3,312.72 52.097%
Hennepin County 452.11 29.329%1,158.53 29.329%1,864.95 29.329%
City of Orono 181.90 11.800%466.12 11.800%750.34 11.800%
MCTO, Met Council, Mosquito Control 65.54 4.251%167.94 4.251%270.34 4.251%
Hennepin Parks 22.09 1.433%56.61 1.433%91.13 1.433%
Minnehaha Creek Watershed District #3 16.79 1.089%43.03 1.089% 69.27 1.089%
Total $1,541.52 100.000%$3,950.14 100.000%$6,358.76 100.000%
City of OronoTax Share by Jurisdiction For 1996 Tax Capacity Rates
$ 100,000 Home $ 200,000 Home $ 300,000 Home
Amount % Share Amount % Share Amount % Share
Orono School District #278 $804.57 5Q.9im $2,061.71 50.978%$3,318.85 50.978%
Hennepin County 477.06 30.226%1,222.46 30.226%1,967.86 30.226%
City of Orono 188.71 11.957%483.57 11.957%778.43 11.957%
MCTO, Met Council, Mosquito Control 64.81 4.106%166.07 4.106%267.33 4.106%
Hennepin Parks 23.51 1.490%60.25 1.490% 96.99 1.490%
Miimehaha Creek Watershed District #3 19.62 1.243%50.28 1.243% 80.94 1.243%
Total $1,578.28 100.000%$4,044.34 100.000% $6,510.40 100.000%