9.a)1) Staff Report-Max Tax Levyt' `�
J
SCANDIA
Staff Report
Date of Meeting: September 15, 2015
To: City Council
From: Kristina Handt, Administrator
Re: Certify Maximum Tax Levy
Background:
The preliminary levy for taxes payable in 2016 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 held budget work sessions in
August and September to get to this point.
Issue:
What amount should the Council certify for the preliminary levy for taxes payable in 2016?
Proposal Details:
The resolution in your packet provides the tax levy breakdown by fund. The total levy would be
$2,257,871 or a 1.82% increase over taxes payable in 2015. These levy amounts are reflective of
the changes directed by the Council at the August and September meetings
Updated budget drafts are also included in your packet.
Fiscal Impact:
The charts below show the impact of a 1.82% levy increase for a number of different home
values. The first chart shows the 2015 values and taxes. The second chart assumes a 4.3%
decrease in market value and shows the tax impact of a 1.82% levy increase.
Market
Homestead
Taxing
Value
Market
Taxable
District
Before
Value
Market
Tax
Portion of
Exclusion
Exclusion
Value
Capacity
Tax
Actual Pay 2015
Pay 2015
MV
76,000 @40%
- rem @ 9%
(D) - (E)
500,000@1.0%
rem @ 1.25%
(A7 x G) +
(Al2 X D)
300,100
10,200
289,900
2,899
$1,003.60
104,500
27,800
76,700
767
$265.53
156,700
23,100
133,600
1,336
$462.51
261,200
13,700
247,500
2,475
$856.82
418,000
0
1 418,000
4,180
1 $1,447.07
Proposed Pay 2016
Pay 2016 MV
X 0.957
76,000 @40%
- rem @ 9%
(D) - (E)
500,000@1.0%
rem @ 1.25%
(B7 x G) +
(B12 x D)
287,200
11,400
275,800
2,758
$1,012.52
100,000
28,200
71,800
718
$263.59
150,000
23,700
126,300
1,263
$463.67
250,000
14,700
235,300
2,353
$863.83
400,000
1,200
398,800
3,988
1 $1,464.07
Options:
1) Approve Resolution 9-15-15-02 to certify the preliminary levy at $2,257,871
2) Amend and then Approve Resolution 9-15-15-02 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.