Purpose: Each taxing authority must certify its proposed preliminary property tax levies for payable 2017 to the County Auditor by September 30, 2016.
Background: The levy as presented reflects the recommendation of the majority of the City Council at the final preliminary budget/levy work session on September 13, 2016.
Proposed 2017 Payable Tax Levy:
Proposed Tax Levies:
General Fund Levy: $ 8,670,635
EDA Levy (Included in General Levy) 103,981 (EDA presented 8-4-16)
Debt Service Levy – CIP Bond-(Fire Station #2) (Being Requested) 157,463
Debt Service Levy – CIP Bond(Municipal Center) (Being Requested) 1,098,813
Debt Service Levy - 2013 Equipment Certificate 73,875
Debt Service Levy - 2014 Equipment Certificates 102,905
Reconstruction Debt - Andrie & Overlays (Being Requested) 152,308
Reconstruction Debt - Garnet Street & Overlays (Being Requested) 119,078
TOTAL PROPOSED LEVY – 2017 $10,479,058
The attached resolution, as it is presented, reflects a levy of $10,479,058. The proposed levy for 2017 reflects a $507,983 (5.09% increase) over the adopted levy in 2016 of $9,971,075.
The levy increase of $507,983 is mostly attributed to four areas:
- Personnel Funding - $278,778 increase over 2016 adopted budget. The increase is attributed to a cost of living (COLA) adjustment for approximately 75 employees; step increases; increase in hours for one position, reclassification of two positions and and three new positions: Full-time Drug Task Force Officer, Part-time Administrative Assistant and Part-Time Building Maintenance Worker
- Debt Service Levy - Additional $94,706 of debt from 2016 to 2017 payable levy. The additional levy is attributed to funding the Andrie Street & Overlay projects.
- EDA Levy - Increased levy of $30,363 from 2016 to 2017 to allow for flexibility and improvements tot he city's economic development strategies.
- Contracted Services - $86,407 for Website Redesign, E-plan Review and Recreational Programming
As noted, the EDA levy is included in the overall levy amount of $10,479,058.
While the proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process.
The amount of the levy was determined by the majority of the council at the work session of September 13, 2016. After discussion, the city council elected to authorize a higher preliminary levy increase at this time with the understanding that all avenues for levy reductions will be perused during the months leading up to final levy adoption in December.
The proposed levy must be certified to Anoka County by Friday, September 30, 2016. Therefore, the Council must make a decision at tonight's meeting as to the amount of this levy, or schedule a special meeting prior to the 30th.
Schedule Budget Public Hearing Date:
The Truth-in-Taxation law was changed in 2009. The City is no longer required to hold a special TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing, the City is required to hold a regularly scheduled meeting at which the budget and levy will be discussed. The City may adopt the budget and levy immediately following. The public meeting must be held between November 25 and December 29 and held after 6:00 P.M.
Staff is recommending that the public meeting be held at its regularly scheduled meeting of December 13, 2016, with adoption of the 2017 General Fund Budget and levy to immediately follow.
The public meeting date must be certified to Anoka County by Friday, September 30, 2016; therefore, the City Council must make a decision as to the date selected for the 2017 payable public meeting at tonight's meeting. |
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