4.a) Staff Report-Max Tax Levy
Staff Report
Date of Meeting: September 3, 2014
To: City Council
From: Kristina Handt, Administrator
Re: Certify Maximum Tax Levy
Background:
The preliminary levy for taxes payable in 2015 must be certified to Washington County and the
date of the public hearing must be set no later than September 30 for the general fund and
September 15th for the EDA. 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 held budget work sessions in August and began the review of Capital
Improvement needs.
Issue:
What amount should the Council certify for the preliminary levy for taxes payable in 2015?
Proposal Details:
The resolution in your packet provides the tax levy breakdown by fund. The total levy would be
$2,227,509 or a 2.6% increase over taxes payable in 2014. These levy amounts are reflective of
the changes directed by the Council at the August 20th meeting:
No Council salary adjustments
No audio improvements for the Council chambers
EDA levy of $5,000
Capital Improvement Fund levy reduced to $50,000
Equipment Replacement Fund levy transfers reduced to $20,000
Additional $130,000 shifted to Local Road Improvement Fund levy
Updated budget drafts are also included in your packet. The utility truck with crane has been
removed from the Capital Improvement Program (CIP).
Fiscal Impact:
The charts below show the impact of a 2.6% levy increase for a number of different home
values. The first chart shows the 2014 values and taxes. The second chart assumes a 19.8%
increase in market value and shows the tax impact of a 2.6% levy increase.
Market Homestead Taxing
Value Market Taxable District
Before Value Market Tax Portion of
Exclusion Exclusion Value Capacity Tax
Actual Pay 2014
Pay 2014 76,000 @40% 500,000@1.0% (A7 x G) +
MV - rem @ 9% (D) - (E) rem @ 1.25% (A12 X D)
224,500 17,000 207,500 2,075 $850.25
83,500 29,700 53,800 538 $220.45
125,200 26,000 99,200 992 $406.48
208,700 18,500 190,200 1,902 $779.36
333,900 7,200 326,700 3,267 $1,338.69
Proposed Pay 2015
Pay 2015 MV 76,000 @40% 500,000@1.0% (B7 x G) +
X 1.198 - rem @ 9% (D) - (E) rem @ 1.25% (B12 x D)
268,900 13,000 255,900 2,559 $889.46
100,000 28,200 71,800 718 $249.56
150,000 23,700 126,300 1,263 $438.99
250,000 14,700 235,300 2,353 $817.86
400,000 1,200 398,800 3,988 $1,386.15
Options:
1) Approve Resolution 9-3-14-01 to certify the preliminary levy at $2,272,509
2) Amend and then Approve Resolution 9-3-14-01 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.