Minutes - Council - 11/30/1994 - Laserfiche WebLink

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Mr. Ed Thurston from the Anoka County Assessor's office is also present to answer any questions the residents may have. Finance Officer Hart summarized the packets she handed out to the Council and public. Councilmember Hardin arrived (7:10 p.m.). Ms. Hart explained that the Elk River School District splits are a little different. The City gets 17 percent of the tax dollars. She summarized the major changes such as the addition of a new Police Officer and the new Public Works facility, plus the anticipated slowing down in building permit revenues. Ms. Hart presented a detailed breakdown of tax capacity rates and a flow chart of how the property tax is determined. She showed the actual class rates and the percentages they are based on. She detailed what the 1994 taxes were area-wide, and the City's share, and the 1995 taxes with no change in home value. If there are no increases or decreases or no class change you would have seen a base increase of 5.08 percent in the City's share. She commented that she used a 7 percent value increase as an example based on the phone calls she got - values increased from 3 percent up to 12 percent. That shows a 16.57 percent increase in overall taxes with the City's share being 18.4 percent. Based on the original estimate, we can only estimate based on the valuation we currently have. Ms. Hart called attention to the comparison of standard residential service charges and noted that the charge for refuse service had gone down. She estimated that each resident receives about $700 in services for $250 in taxes. She briefly described the background of the aids the City receives. Ms. Hart also called attention to the personnel complements which are full time equivalents. She commented that these are the basis for the City to anticipate its budget. Ms. Hart called attention to a single sheet handout with estimated property taxes - based on 1995 proposed tax levies. Ramsey rates 6th which is about in the middle. Ms. Hart stated that the last packet she handed out is a synopsis of the general fund budget. She stated that in preparing the 1995 Proposed General Fund Budget, the following objectives were established: Recognize the limitations placed on City activities resulting from limited revenue growth, maintain or increase the existing level of City services and programs, increase the tax capacity rate to a level adequate to provide for ongoing services and programs while continuing taxing levels comparable to or below that of surrounding communities, position the City financially such that stable revenues are identified for current and future capital programming and equipment replacement, and avoid deferring costs to future years. It is Staffs opinion that these objectives were considered and met in the preparation of this budget. She stated that the 1995 Proposed General Fund Budget, as presented, totals $3,186,676, with a proposed tax levy of $1,156,659. When combined with the debt service levy, the taxes proposed for collection in 1995 total $1,181,590, and equate to a tax capacity rate of approximately 19.4183 compared to 18.684 for payable 1994 taxes. Ms. Hart continued that the total dollar increase in taxes proposed is $200,957, of which $156,279 is generated by the increase in the tax base. The levy request includes an additional $44,678 generated by budgetary needs, including the addition of one full-time police officer in 1995. Various budget delays and reductions in certain areas were recommended by Staff to meet a balanced budget at this level of taxes. Ms. Hart stated that the parcel specific notices that were prepared and mailed by the County were done so utilizing the maximum levy as certified on September 15, 1994. Based on the maximum levy, the total taxes proposed for collection in 1995 would be $1,215,043, which equates to a tax capacity rate of approximately 19.968 as compared to the 19.4183, at the lower City Council/Budget Public Hearing/November 30, 1994 Page 2 of 6