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9.c Resolution 09-18-18-04 Certifying the maximum property tax levy for 2019§CAND'IA Staff Report Date of Meeting: September 18, 2018 To: City Council From: Neil Soltis, Administrator Re: Certify Maximum Tax Levy Background: The preliminary levy for taxes payable in 2019 must be certified to Washington County and the date of the public hearing must be set no later than October 3rd. The maximum tax levy amount is preliminary and will be used by the County for the property tax notices that are mailed out in November. The Council may make changes to the 2019 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. At the September work session the Council recommended certifying the maximum levy modified to reflect based on the changes made at the September work session. Issue: Should the Council certify $2,313,880 as the preliminary levy for taxes payable in 2019? Proposal Details: The resolution in your packet provides the tax levy breakdown by fund. The total levy would be $2,313,880. A copy of the Proposed Pay 2019 Property Tax Impact Worksheet is provided on the following page. The Tax Impact Worksheet shows an estimate of the taxes that would be payable based on various level of market value for residential homes and compares the taxes paid in 2018 with the taxes that would be payable in 2019 on that property after reflecting the average 7.8% increase in the market value of properties in Scandia. Fiscal Impact: The charts below show the impact of the levy increase for a number of different home values. The first chart shows the 2018 values and taxes. The second chart uses the 2018 values as increased by the average 7.8% increase in market value and shows the tax impact of the levy increase. Market Homestead 76,000 @40% - rem a 9% (D)- (E) Taxing Value Market Taxable 281,000 District Before Value Market Tax Portion of Exclusion Exclusion Value Capacity Tax Actual Pay 2018 Pay 2018 AoV 76,000 @40% - rem a 9% (D)- (E) 500,000@1.0% rem @ 1.25% (A7 x G) + (Al2 X D) 292,000 11,000 281,000 2,810 $985.14 92,800 28,900 63,900 639 $224.02 139,130 24,700 114,430 1,144 $401.37 X31,900 16,400 215,500 2,155 $755.50 371,11}0 3,800 367,300 3,673 $1,287.69 Proposed Pay 2019 Pay 2019 NIV X 1.078 76,000 @401.6 - rem @ 9% (D)- (E) 500,000@1.0% rem @ 1.259 (B7 x G) + (B12 x D) 314,800 8,900- 31)5,91}1} 3,1)50 $1,013.63 100,000 28,200 71,800 718 $237.92 150,000 23,700 126,300 1,263 $418.51 250,000 14,700 235,31}0 2,353 $779.69 400,000 1,200 398,81}0 3,088 $1,321.46 Percentage Change from 2018 to 2019 7.8% -19.1 % 8.9% 8.9% _9% 7.8% -2.4% 12.4% 12.4% 6.2% 7.8% -4-0% 10.4% 10.4% 4.3% 7.8% -10.4% 9.2% 9.2% 3.2% 7.8% -68.4% 8.6% 8.6% 2.6% Tac Increase (Decrease) $28.49 $13.90 $17.44 $24.19 $33.77 Comparison of Taxing District Portion of Tax Pay 2018 vs. 2019 ❑Pay 2013 Tai oProposed 201? Tc.: r.: ..:Js s u:3t't u• � I �� Yvv.vvv yl.i rlfirl Change in Taking District Portion of Net Tax Pay 2018 vs. 2019 T.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 314,800 100,000 150.000 250,000 PROPERTY TAX LEVY PER $1,000 OF MARKET VALUATION PROPERTY TAX LEVY $2,500,000 $4.00 $800,000,000 z $2,500,000 ❑ $700,000,000 $3.50 $2,000,000 a $3.00 $2,000,000 $600,000,000 $1,500,000 $2.50 ~ Y � $2.00 a LU $1,000,000 $1.50 a ❑ Uj $500,000,000 $1.00 $1,500,000 X Q $0.50 a a W J $400,000,000 2016 Actual 2017 Actual 2018 Budget 2019 Budget ix a $300,000,000 Levy Amount $2,244,336 $2,257,872 $2,257,872 $2,313,880 ■ Levy/ $1,000 of taxable market $3.80 $3.80 $3.71 $3.53 $1,000,000 a valuation a $200,000,000 $500,000 $100,000,000 2016Actual 2017 Actual 2018 Budget 2019 Budget Levy Amount $2,244,336 $2,257,872 $2,257,872 $2,313,880 Estimated Market Value $622,802,500 $622,612,400 $642,439,900 $688,540,700 Taxable Market Value $589,914,400 $590,055,800 $607,952,500 $655,957,100 PROPERTY TAX LEVY PER $1,000 OF MARKET VALUATION $2,500,000 $4.00 z ❑ $3.50 $2,000,000 a $3.00 W x $1,500,000 $2.50 ~ Y � $2.00 a LU $1,000,000 $1.50 a ❑ 0 a $1.00 $500,000 W $0.50 a W J 2016 Actual 2017 Actual 2018 Budget 2019 Budget Levy Amount $2,244,336 $2,257,872 $2,257,872 $2,313,880 ■ Levy/ $1,000 of taxable market $3.80 $3.80 $3.71 $3.53 valuation $1.0CADDC ;mcm�,of;' 7.- .Econdnac C*vetopinene Authority • Lovai A oed unpraysncnt P EquPnerrt fteplacernenl Caglrl Impmemant Furrv3 . Debt txr,rlte Fund • 41prbrnr Fijrlg CITY PROPERTY TAX LEVY 2035 Aewel 6617 Aemet 2476 SUdget 2019 HUM" 1S- I&DIDO fBCO 15,688 38tok5]3 6727,000 SM.00 S- m944 w(kow LOO* $34440 : . $1m.m 4116.73Y 4152.742 CR01.364 SS -484.512 $1,531:,749 11iMILMM S1 N%EM GENERAL FUND TAX LEVY si.Em wo 5L1,smAw 51.4m om S1.Z430AX I $;.D0 DM $100"; $m0. s�ao_ml: 57,74aI 2414 Actual 2077 Aawaf 6079 9udget 2419 budge . 1243fn urdiV Center $y A61 61.4ih8 6 4386 SmObb ■ Parks & Recreation 54$874 $51-806 884200 573,906 ■ Psldlc W ork5 $92],377 #922-544 $621A20 #652,998 t Prrn #170648 #769.804 5195-968 #1T5-1104 ■ PoklcE Si -5511&T 5120-500 $127.204 5135-GJ4 Planni3lg8 Buildng 914.244 $5"Uo $1.346 &- Elealfina $*,yBro $1,345) $$,7oa #.Ao Cara Council M-076 sm8 oo Si$560 sal o d =AOwirvstrouon&Finance $251,468 $263,749 1284.804 !287.444 Options: 1) Approve Resolution 9-18-18-04 to certify the preliminary levy at $2,313,880 2) Approve Resolution 9-18-18-04 as amended to certify the preliminary levy at a different amount. 3) Take no action and schedule a special meeting for further discussion. 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. 09-18-18-04 CITY OF SCANDIA, MINNESOTA RESOLUTION CERTIFYING MAXIMUM PROPERTY TAX LEVY PAYABLE IN 2019 WHEREAS, the City of Scandia has prepared a draft of the budget for the fiscal year commencing January 1, 2019; and WHEREAS, the budget requires funds to be raised from 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 taxes payable in 2019: 2019 Property General Purpose Tax Levy General Fund $1,398,600 Debt Service Funds $501,350 Equipment Replacement Fund $30,000 Local Road Improvement Fund 378,930 Economic Development Authority $5,000 Total Property Tax Levy $2,313,880 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 18th day of September, 2018. Christine Maefsky, Mayor ATTEST: Neil Soltis, Clerk