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