9.b Preliminary 2017 property tax levy - resolution 09 20 16 04nq-� €-,
SCANDIA
Staff Report
Date of Meeting: September 20, 2016
To: City Council
From: Neil Soltis, Administrator
Re: Certify Maximum Tax Levy
Background:
The preliminary levy for taxes payable in 2017 must be certified to Washington County and the
date of the public hearing must be set no later than September 30th. The recommended property
tax levy would be preliminary, to be used for the property tax notices that will be sent in
November. The Council may make additional changes to the budget prior to its adoption in
December, but the tax levy may not be increased. The Council has discussed the budget at the
August and September work sessions. The recommendation from the September work session
was to certify the preliminary levy at the same amount as the 2016 levy in order to provide the
option to lower the levy amount after future discussions on the 2017 budget.
Issue:
Should the Council certify for the preliminary levy for taxes payable in 2017 at the same amount
as 2016?
Proposal Details:
The resolution in your packet provides the tax levy breakdown by fund. The total levy would be
$2,257,871, the same amount as the 2016 levy. A copy of the Proposed Pay 2017 Property Tax
Impact Worksheet in on the following page. The Impact Worksheet shows an estimate of the
taxes that would be payable based on various level of market value for residential homes.
Fiscal Impact:
The charts below show the impact of a 1.3% levy decrease for a number of different home
values. The first chart shows the 2016 values and taxes. The second chart assumes a 1.2%
decrease in market value and shows the tax impact of a 1.3% levy decrease.
Market
Homestead
Pay 2016
MV
76,000 @40%
- rem @ 9%
Taxing
Value
Market
Taxable
277,100
District
Before
Value
Market
Tax
Portion of
Exclusion
Exclusion
Value
Capacity
Tax
Actual Pay 2016
Proposed Pay 2017
Pay 2016
MV
76,000 @40%
- rem @ 9%
(D) - (E)
500,000@1.0% (A7 x G) +
rem @ 1.25% (Al2 X D)
288,400
11,300
277,100
2,771 $1,017.57
101,200
28,100
73,100
731 $268.44
151,800
23,600
128,200
1,282 $470.78
253,000
14,500
238,500
2,385 $875.82
404,900
800
1 404,100
4,041 1 $1,483.94
Tax Increase
(Decrease)
($33.77)
Options:
1) Approve Resolution 9-20-16-xx to certify the preliminary levy at $2,227,507
2) Amend and then Approve Resolution 9-20-16-xx to certify the preliminary levy at a
different amount.
Recommendation:
Option 1. The Council can continue to work on the budget between now and final adoption in
December. The levy could still decrease from the proposed preliminary amount; however, it
could not increase.
Proposed Pay 2017
Pay 2017 MV
X 0.988
76,000 @40%
- rem @ 9%
(D) - (E)
500,000@1.0%
rem @ 1.25%
(B7 x G) +
(B12 x D)
284,900
11,600
273,300
2,733
$983.80
100,000
28,200
71,800
718
$258.46
150,000
23,700
126,300
1,263
$454.64
250,000
14,700
235,300
2,353
$847.01
400,000
1,200
398,800
3,988
$1,435.56
Tax Increase
(Decrease)
($33.77)
Options:
1) Approve Resolution 9-20-16-xx to certify the preliminary levy at $2,227,507
2) Amend and then Approve Resolution 9-20-16-xx to certify the preliminary levy at a
different amount.
Recommendation:
Option 1. The Council can continue to work on the budget between now and final adoption in
December. The levy could still decrease from the proposed preliminary amount; however, it
could not increase.
RESOLUTION NO. 09-20-16-04
CITY OF SCANDIA, MINNESOTA
RESOLUTION CERTIFYING MAXIMUM
PROPERTY TAX LEVY PAYABLE IN 2017
WHEREAS, the City of Scandia has prepared a draft budget for the fiscal year
commencing January 1, 2017; and
WHEREAS, the budget requires money to be raised from property taxes on taxable
property in the City of Scandia;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that the
following sums of money are the maximum amounts to be raised by property tax payable in
2017:
FURTHER BE IT RESOLVED, that said maximum property tax levy shall be certified
to the County Auditor of Washington County.
Adopted by the Scandia City Council this 20th day of September, 2016.
Randall Simonson, Mayor
ATTEST:
Brenda Eklund, Deputy Clerk
2017 Property
General Purpose
Tax Levy
General Fund
$1,551,768
Debt Service Funds
$116,739
Capital Improvement Fund
$30,000
Local road Improvement Fund
554.364
EDA Purposes
$5,000
Total Property Tax Levy
$2,257,871
FURTHER BE IT RESOLVED, that said maximum property tax levy shall be certified
to the County Auditor of Washington County.
Adopted by the Scandia City Council this 20th day of September, 2016.
Randall Simonson, Mayor
ATTEST:
Brenda Eklund, Deputy Clerk
Proposed Pay 2017 Property Tax Impact Worksheet
Taxing District: 0400 Scandia
STEP 1 - Calculate the Taxing District's Tax Rate:
STEP 2 - Calculate the Impact of the Taxing District's Rate on Residential Homestead Taxes:
13. Assumes a -1.2% change in market value from 2016 to 2017, which is the city median change.
Irn IF) IF► Ir.1 I1-11
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Market
Item
Actual Proposed
Pay 2016 Pay 2017
A B
%
Change
(C)
1.
Levy before reduction for state aids
$2,257,871
$2,257,871
0.0%
2.
State Aids -
$0
$0
0.0%
3.
Certifed Property Tax Levy
$2,257,871
$2,257,871
0.000%
4.
Fiscal Disparity Portion of Levy -
$100,980
$112,010
10.9%
5.
Local Portion of Levy =
$2,156,891
$2,145,861
-0.5%
6.
Local Taxable Value 2017 is an ESTIMATE -
5,873,543
5,876,838
0.1%
7. Local Tax Rate =
8. Market Value Referenda Levy
36.722% 36.514%
$0 $0
-0.6%
0.0%
9,
Fiscal Disparity Portion of Levy (SD only) -
$0
$0
0.0%
10.
Local Portion of Levy =
$0
$0
0.0%
11.
Referenda Market Value 2017 is an ESTIMATE -
517,588,600
514,446,800
-0.6%
12.
Market Value Referenda Rate =11
0.00000%1
0.00000%
0.0%
STEP 2 - Calculate the Impact of the Taxing District's Rate on Residential Homestead Taxes:
13. Assumes a -1.2% change in market value from 2016 to 2017, which is the city median change.
Irn IF) IF► Ir.1 I1-11
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Market
Homestead
Actual Pay 2016
Taxing
Value
Market
Taxable
(A7 x G) +
(Al2 X D)
District
Before
Value
Market
Tax
Portion of
Exclusion
Exclusion
Value
Capacity
Tax
Percentage Change from 2016 to 2017
24. -1.2% 2.7% -1.4% -1.4% -1.9%
25. -1.2% 0.4% -1.8% -1.8% -2.3%
26. -1.2% 0.4% -1.5% -1.5% -2.0%
27. -1.2% 1.4% -1.3% -1.3% -1.9%
28. IL -1.2% 50.0% -1.3% -1.3% -1.9%
Tax Increase
(Decrease)
($19.64)
Proposed Pay 2017
Actual Pay 2016
Pay 2017 MV 1
X 0.988
Pay 2016
MV
76,000 @40%
rem @ 9%
500,000@1.0%
(D) - (E) rem @ 1.25% I
(A7 x G) +
(Al2 X D)
288,400
11,300
277,100
2,771
$1,017.57
101,200
28,100
73,100
731
$268.44
151,800
23,600
128,200
1,282
$470.78
253,000
14,500
238,500
2,385
$875.82
404,900
800
404,100
4,041
$1,483.94
Percentage Change from 2016 to 2017
24. -1.2% 2.7% -1.4% -1.4% -1.9%
25. -1.2% 0.4% -1.8% -1.8% -2.3%
26. -1.2% 0.4% -1.5% -1.5% -2.0%
27. -1.2% 1.4% -1.3% -1.3% -1.9%
28. IL -1.2% 50.0% -1.3% -1.3% -1.9%
Tax Increase
(Decrease)
($19.64)
Proposed Pay 2017
Pay 2017 MV 1
X 0.988
76,000 @40%
- rem @ 9%
500,000@1.0%
(D) - (E) rem @ 1.25%
(B7 x G) +
(B12 x D)
284,900
11,600
273,300
2,733
$997.93
100,000
28,200
71,800
718
$262.17
150,000
23,700
126,300
1,263
$461.17
250,000
14,700
235,300
2,353
$859.17
400,000
1,200
398,800
3,988
$1,456.18
Percentage Change from 2016 to 2017
24. -1.2% 2.7% -1.4% -1.4% -1.9%
25. -1.2% 0.4% -1.8% -1.8% -2.3%
26. -1.2% 0.4% -1.5% -1.5% -2.0%
27. -1.2% 1.4% -1.3% -1.3% -1.9%
28. IL -1.2% 50.0% -1.3% -1.3% -1.9%
Tax Increase
(Decrease)
($19.64)