Purpose: Each taxing authority must certify its proposed preliminary property tax levies for payable 2018 to the County Auditor by September 29, 2017.
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 12, 2017.
Proposed 2018 Payable Tax Levy:
Proposed Tax Levies:
General Fund Levy: $ 9,395,242
EDA Levy (Included in General Levy) 103,981 (EDA presented 8-4-16)
Debt Service Levy – CIP Bond-(Fire Station #2) (Being Requested) 224,248
Debt Service Levy – CIP Bond(Municipal Center) (Being Requested) 1,118,663
Debt Service Levy - 2013 Equipment Certificate 73,119
Debt Service Levy - 2014 Equipment Certificates 101,879
Reconstruction Debt - Andrie & Overlays (Being Requested) 146,571
Reconstruction Debt - Sunwood Drive & Alpine 94,079
Reconstruction Debt - Garnet Street & Overlays (Being Requested) 116,613
TOTAL PROPOSED LEVY – 2017 $11,374,395
The attached resolution, as it is presented, reflects a levy of $11,374,395. The proposed levy for 2018 reflects a $895,337 (8.54% increase) over the adopted levy in 2017 of $10,479,058.
The levy increase of $895,337 is mostly attributed to four areas:
- Personnel Funding - $479,348 increase over 2017 adopted budget. The increase is attributed to a cost of living (COLA) adjustment for approximately 75 employees; step increases; health insurance increases; single dental for all full-time employees; election year; increase in hours for IT Technician from 29 hours to 40 hours/week, and three new positions: Full-time Senior Planner, Full-time Parks Maintenance Worker & Part-Time Engineering Administrative Assistant.
- Debt Service Levy - Additional $170,730 of debt from 2017 to 2018 payable levy. The additional levy is attributed to funding the Sunwood Drive and Alpine Drive Reconstruction and increase in Fire Station #2 debt due to offsetting bond funds to help reduce levy for 2017 payable..
- Revenue Reduction - Interest & Other Financing Sources - $164,304
- Contracted Services - $80,955 for Bi-Annual Survey and Professional services in Building and Engineering.
As noted, the EDA levy is included in the overall levy amount of $11,374,395.
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 12, 2017. 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 29, 2017. Therefore, the Council must make a decision at tonight's meeting as to the amount of this levy.
Schedule Budget Public Hearing Date:
The Truth-in-Taxation (TNT) 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 12, 2017, with adoption of the 2018 General Fund Budget and levy to immediately follow.
The public meeting date must be certified to Anoka County by Friday, September 29, 2017; therefore, the City Council must make a decision as to the date selected for the 2018 payable public meeting at tonight's meeting. |
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