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12-01-2008 Truth in Taxation CITY OF SCANDIA CITY COUNCIL AGENDA TRUTH IN TAXATION PUBLIC HEARING Monday, December 1, 2008 7:00 p.m. 1. Call to Order—Mayor Dennis Seefeldt 2. Video Presentation—"14 Reasons Property Taxes Go Up or Down" 3. Overview of Proposed 2009 Budget—Administrator Anne Hurlburt 4. Truth in Taxation Public Hearing 5. Adjournment CITY OF SCANDIA, MINNESOTA NOTICE OF PROPOSED TOTAL BUDGET AND PROPERTY TAXES The Scandia City council will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the city will provide in 2009. SPENDING: The total budget amounts below compare the city's 2008 total actual budget with the amount the city proposes to spend in 2009: 2008 Total Proposed 2009 Change from Actual Budget: Budget: 2008 — 2009: $2,650,320 $2,464,808 -6.99% TAXES: The property tax amounts below compare that portion of the current budget levied in property taxes in the city of Scandia for 2008 with the property taxes the city proposes to collect in 2009: 2008 Property Proposed 2009 Change from Taxes: Property Taxes: 2008 - 2009 $1,703,589 $1,860,892 +9.23% LOCAL TAX RATE COMPARISON: The following compares the city's current local tax rate, the city's tax rate for 2008 if no tax levy increase is adopted, and the city's proposed tax rate for 2009: 2008 2009 Tax Rate if 2009 Proposed Tax Rate: NO Levy Increase: Tax Rate: 25.092% 25.973% 28.510% ATTEND THE PUBLIC HEARING All Scandia residents are invited to attend the public hearing of the City Council to express their opinions on the budget and on the proposed amount of 2009 property taxes. The hearing will be held on: Monday, December 1, 2008 at 7:00 p.m. Scandia Communit /Senior Center 14727 209th St. N. If the discussion of the budget cannot be completed, a time and place for continuing the discussion will be announced at the hearing. You are also invited to send your written comments to: City of Scandia 14727 209th St N. Scandia, Minnesota 55073 www.ci.scandia.mn.us For publication in the Forest Lake Times on November 27,2008 11/29/2008 What is a "T in T" Hearing? Truth-in-Taxation Hearing Purpose: to gather public comment on the City's budget, and the property taxes needed to pay for the 2009 Budget expenditures in 2009 City of Scandia Hearing held in each taxing December 1, 2008 jurisdiction (county, city, school district, etc.) Mandated by State Legislature City Budget Process Scandia's Budget G June/July- staff drafts budgets General Fund ❑ August- Council workshops Operations including Administration,Fire, Police, Planning&Building,Public Works,Parks, ❑ September 15- certify maximum Community Center,etc. property tax levy L] Debt Service Funds Cl November- county mails proposed • Street paving,Fire Hall/P Wks bonds property tax statement ❑ Capital Funds December- Truth-in-Taxation hearing • Capital Improvement, Parks,Equipment December 28- certify final tax levy Replacement (may not increase) Enterprise Funds (201 Sewer) Proposed 2009 Spending, All Funds Proposed 2009 Spending, All Funds El Total proposed spending: =3•�•� Enterprise $2 469 326 - Fonds czsoO,000 Capital% _ 1% S -6.99%from 2008 n•o„•,,, ' I budget • +29.64%from Debt Service 2007 actual s l 34 r. • +4.55%from 2006 00o•o0. actual R. 2003 30U6 2007 2006 10 0 9 General/ L Operating 62% Scandia Truth in Taxation Hearing 1 11/29/2008 Proposed Spending all Funds, Proposed 2009 Spending, By Category, 2009 Debt Service Funds ❑ Proposed spending: Debt Service Transfers Personal $540,098 "0°'O°O i= = Services sarvimoo 23% _- 2 _ 22% ■ -39.39% 00 from 2008 ,... - _ budget __ PI Retired debt from .�.� j-j j CaPuai Materials& 2002 road project "°°°°° 1 1 1 1 1 Outlays Supplies W0.am 4% 6° a...... 1 1 1 1 1 •r°°°°° 1 1 1 1 1 Contractual " Services .ms 2000 am ]... WW 43 Proposed 2009 Spending, Proposed General Fund Spending, General Fund By Function, 2009 0 Proposed _- Public Comm.Ctr General spending: •2. Govt $1,774,899 •'.°°o'°°° m works 6%340/0 21% ■ +8.25%from 2008 ..,....... budget • '°°°°° ■ +14.32%from 2007 actual .......° F I Planning Bldg • +6.95%from 2006 1 low.,"°°'°°°actual s. Police .005 ]... ...) 2MM 2009 7% Fire 2D Proposed Spending General Fund, By Category, 2009 Budget Factors- Expenses ❑ Some costs increasing faster than inflation Capital Debt Service Transfers Personal • Fuel&utilities outlays 1% 2% services • Insurance 2% 31% • Police services up 15.2% ■ Pension costs(PERA and Fire) O Implementing new Comprehensive Plan-ordinance updates ❑ Capital expenditures(Fire command vehicle,asphalt patching equipment) ❑ Repairs and replacements in Parks(skateboard Materials& equipment warming house roof)and other budgets Supplies (Community Center,Uptown Sewer/Water) Contractual ntra�I 8% 0 Equipment replacement and road repair expenses are 56% flat Scandia Truth in Taxation Hearing 2 11/29/2008 Proposed 2009 Revenue, Budget Factors- Revenues All Sources & Funds ❑ State levy limit on property taxes 0 Total proposed ❑ Interest earnings are down revenue: . 00000— ❑ Permit revenues are flat $2,363,809 1r — — ❑ No local government aid • +6.34%from 2007 ❑ Increase in sand and gravel taxes, fines and budget forfeitures s Less than expenses I I , I I (spending reserves in Debt Service ,300,9oe �I gI Funds) W ;,, 2005 2006 7007 2006 2009 2009 Proposed Revenues, All Funds by Source Property Tax Levy Fire.and Fr"9..tery Fund $2,000,000 -'- themes 1: .. ix F 0.6%ea Other Income Sere Oea -$1,70.148c .21 server.. 0.6% 6.9%O n $1,800,000 1 ca1�° 6.4% $1,600,000 s a -.� L';�m0.°e"w' „"`. $1,400,000 23a,13%1 1.e31,]66 ,� 1.4% \ $1,200,000 1 -.. $1,000,000 Y -1 licensee and ;Soo,000 Permit. sO ro ;600,000 II „.ee 2003 2004 2005 2006 2007 2008 2009 81.196 Property Tax Rate Property Tax Levy and Rate 29.000%(8.036% _ 2:,11.2 0 n,000,060- 29.000% -- 28.036 28.000%- —. st.66466e-- % z. % 26.551% --..-_. - _ . x.000%II 2a 27.000% 'i a16o6,666 satOo.m6 l x.000%II25.000% , 23 996- a�,OW 1Ii: zs 000% jj 24.000% • .�a�oza...0%li:3.000%N23.000%Isw6, llzx.000%II22.000% "m so ll zl.000%II 21.000% AM.4 2005 2006 2007 2006 2009 2005 2006 2OO7 2006 2009 2005 2006 2007 2008 2009 Tax Levy Tax Rate Scandia Truth in Taxation Hearing 3 11/29/2008 Calculating Your Proposed Property Taxes- Summary Property Tax Bill ❑ Proposed 2009 levy increase = 0 Rate is determined by: 9.23% • Total levy less fiscal disparities levy, ❑ Median change in taxable market divided by total taxable property value value per parcel = -5.0% ❑ Your tax bill is: ❑ Tax Rate increase = 13.6% ■ Tax capacity (1% of first $500,000 of market value, rem. at 1.25%)times tax rate, less market value homestead credit (.40% of first$76,000 market value less .09% of rem. value) Residential Homestead Taxes Residential Homestead Taxes 2008 Compared to 2009 ($100k) 2008 Compared to 2009 ($150k) 2009 2009 2008 Proposed Change 2008 Proposed Change 9 Taxable Market Value $113,000 $100,000 -11.5% Taxable Market Value $169,500 $150,000 -11.5% Tax Capacity $1,130 1,000 -11.5% Tax Capacity $1,695 $1,500 -11.5% Gross Property Tax $270.70 $282.40 +1.2% Gross Property Tax $425.31 $430.53 +1.2% Less MVHC -$94.75 -98.84 +4.3% Less MVHC -$76.95 -$83.09 +8.0°Jo Net City Tax $188.79 $188.18 -0.3% Net City Tax $348.36 $347.44 -0.3% Residential Homestead Taxes Residential Homestead Taxes 2008 Compared to 2009 ($250k) 2008 Compared to 2009 ($500k) 2009 2009 2008 Proposed Change 2008 Proposed Change Taxable Market Value $282,500 $250,000 -11.5% Taxable Market Value $565,000 $500,000 -11.5% Tax Capacity $2,825 $2,500 -11.5% Tax Capacity $5,813 $5,000 -11.5% Gross Property Tax $708.85 $717.55 +1.2% Gross Property Tax $1,458.60 $1435.10 -1.6°Jo Less MVHC -$41.35 -$51.59 +24.8% Less MVHC 0 0 0 Net City Tax $667,50 $665.96 -0.2% Net CityTax $1,458.60 $1,435.10 -1.6/ Scandia Truth in Taxation Hearing 4 11/29/2008 Your Proposed Property TaxBill City Share of Property Tax (2009) p p y (ISD 831,Car-Mar-St.Croix WSD) ❑ Will be affected by: hedther • Valuation changes different than median-11.5% w 4% �3% County • Phase-out of limited market value School 38 i • Homestead credit($0 at$414,000 value) 19% • School district differences ■ Watershed district differences • "Other"taxing districts(Metro Mosquito Control, County HRA,Transit) City 35% Scandia's Property Tax Ranking Scandia's Property Tax Ranking ❑ 2007 Property Tax on Average Value 0 2007 Property Tax on Average Value Home, Cities &Towns over 2,000 Home, Cities &Towns over 2,000 Population Population, Metro Smaller Cities • County taxes: 22/25 ■ County taxes: 8/9 • City taxes: 89/117 • City taxes: 22/24 • School taxes: 57/61 (FL) • School taxes: 16/18 (FL) ■ Special district taxes: 78/78 ■ Special district taxes: 22/22 • Total local taxes: 114/117 • Total local taxes: 24/24 Source: Minnesota Citizen's League Source: Minnesota Citizen's League Next Steps • Open hearing for comments and Thank you! questions ❑ Continuation of hearing (only if needed) at 7:00 p.m. on Monday, For more information: December 8, 2008 www.ci.scandia.mn.us ❑ Adoption of 2008 budget and tax levy at regular Council meeting on Anne Hurlburt, City Administrator Tuesday, December 16, 2008 a.hurlburtOci.scandia.mn.us Scandia Truth in Taxation Hearing 5