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Home My WebLink About7B, 2009 Operating Levy Payble in 2010 - Resolution 2009-024 & 2009-025Prepared By: Sue Iverson Council Meeting Date: September 14, 2009 Adopt Preliminary 2009 Operating Levy Payable in 2010. Establish 2009 Truth -In -Taxation Hearing Date. Budgeted Amount: I Actual Amount: I Funding Source: W Recommendation: NA NA 1. Motion to adopt Resolution 2009-024, a resolution setting the preliminary levy for taxes payable in 2010 in the amount of $3,057,666. 2. Motion to adopt Resolution 2009-025, a resolution adopting Truth -In -Taxation public hearing dates for proposed taxes payable in 1020. The date established is December , 2009. Supporting Documents: 1. See attached memo from Sue Iverson. 2. 2010 Tax Impact Worksheet 3. 2010 General Fund Summary (Proposed Preliminary Budget) 4. Resolution 2009-024 5. Resolution 2009-025 w- � DEN HILLS MEMORANDUM DATE: September 9, 2009 TO: Honorable Mayor and City Council FROM: Sue Iverson, Finance Director SUBJECT: Establishing 2009 Truth -In -Taxation Hearing Dates Adoption of the Preliminary 2009 Operating Levy Payable in 2010 Background: By September 15, 2009, the City is required to adopt and certify to Ramsey County a preliminary levy and Truth -In -Taxation hearing dates. Discussion: Operating Levy Based on Council direction at the August 17, 2009 Work Session, staff has prepared a preliminary levy of $3,057,666. (This is a decrease of $32,805 over the number given the Council at the work session as staff had incorporated the changes requested by the Council. We have also received word from our insurance carrier that our increase will be 1 % and the previous percentage used was 8%) The overall levy limit for the City of Arden Hills with the state mandated levy limit plus allowable special levies is $3,151,708. The proposed 2010 levy is $94,042 under that limit. The overall increase in the proposed levy is a 3.7% increase over the 2009 levy; however, the City's portion of the levy is $2,792,928 after Fiscal Disparities which equates to a 3.7% increase over the 2009 City portion of the levy of $2,693,125. This results in a 12% increase in the Tax Rate from 2009, as the City's tax capacity fell by $974,065 or -7.4%. The impact on an average medium home valued at $278,800 is an increase of $24.61 or 4.2% annually. The average decrease in market value for residential property in Arden Hills was 6.6%. Determination of the preliminary levy amount is based on 2010 budget information assembled to -date. (This information is summarized in the attached table). One item to note is the unallotment of MVHC from the State of $61,774 for 2010. This amount is figured into the preliminary 2010 budget. Market Value Homestead Credit is credited to property owners on their property tax statements and then reimbursed to the City from the State. The City has been informed from the Department of Revenue that we will not receive this amount, so the preliminary budget and levy has accounted for this. This amounts to 2.1 % of the levy increase and $14.16 or 2.4% of the tax increase to the average medium homeowner in the City of Arden Hills. Public Safety makes up the remainder of the Memo City Council 2009 Truth -in -Taxation Hearing Dates and 2010 Preliminary Tax Levy 2 increase at 3.1 %. Without the MVHC cut or the public safety increase the budget would show a -1.5 % increase in the levy over last year. Truth -in -Taxation Hearing Dates: The 2009 Legislature changed the Truth -in -Taxation laws. We are now only required to announce and schedule one regular meeting at which the council discusses the budget and levy and takes comments from the public. We may adopt the budget and final levy after the hearing during the same meeting. The Meeting must be between November 25 and December 26 and must occur at or after 6 p.m. We must notify the county auditor by September 15. The Council may choose to continue as we have previously done and have a separate meeting or may choose to do this at a regular meeting. Staff is providing two options for the Council to choose from: Monday, December 7, 2009 — 6:30 p.m. (Special meeting) or Monday, December 14, 2009 — 7:00 p.m. — (Regularly scheduled meeting) It is anticipated the Council will adopt the final 2009 levy payable in 2010, and the 2010 budget, on December 14, 2009. Recommended Action: 1. Adopt Resolution 2009-024, a Resolution setting the preliminary levy for taxes payable in 2010 in the amount of $3,057,666. 2. Adopt Resolution 2009-025, a Resolution adopting Truth -in -Taxation public hearing dates for proposed taxes payable in 2010. The date established is December , 2009. Proposed Pay 2010 Property Tax Impact Worksheet ....... ... . ...... ......... :W:F::�::7771 Taxing District: Arden Flilis-Preliminary Levy 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 -6.6% increase in market value from 2009 to 2010, which is the countywide median increase. IM I=1 icy / 1"-%1 iuV, lit 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 26. 26. 27. 28. 29. 30. � :t.:............ ......1 ..Tay. :.� .::::::::::::::.� ......... .. ........... ...::::::::::::::::::.:.:.............. .... ::.�::: ................. '.::i::i:: ��yy11yyjj.. ....'T!. L, ::..... : .�y1��I�� ..... .: �: ;:::>,i±;'t:: y;; �::: �::::::::'.L'::::::::;ry; :: '�':i::i::::::i::::::::i::::i:::::::i::iv:::ii::i::i::. t`� •. iiiiii0iiiiii •iiii}ii:4iiii7i' 'i':: {ii::'r::iitii::ii :::'r::i::::i::i'r:::•:�:i :h: �� i ::y;;vjj>::;:{:;:.,•.;;v;::;j>:j>; vyiiYiYi>i>:: ::: :i ;:i$$$$T;:i:::::::,>.i$i;:iffj}; Pay 2005 MV 500,000@1.0% (B7 x E) + 76,000@.40% X 1.060 rem @ 1.25% (B12 x D) - rem@.09% (G) x % (F) - (H) Estimated Tax District rate as /o of total rate: ::�:....,0;.; :,........ 1,500 $344.79 $237.40 $49.85.:. $294.94 . . ............`" :,$. ..,.t1. 2,788 $640.85 $121.48 $25.51 $615.34 ( 3,500 $804.51 $57.40 $12.05 $792.46 .,3Q.. 5,000 $1,149.30 $0.00 $0.00 $1,149.30 8,125 $1,867.61 $0.00 $0.00 $1,867.61 -6.6% -6.6% 4.6% 4.2% 4.2% 4.7% -6.6% -6.6% 4.6% 17.1% 17.1% 4.2% -6.6% -6.6% 4.6% 63.2% 63.1 % ... 4.1 % -6.6% -8.1 % 2.9% 0.0% 0.0% 2.9% -6.6% -7.5% 3.6% 0.0% 0.0% 3.6% Increase $13.24 $24.61 $30.97 $32.81 $64.31 Instructions for Calculating a Residential Homestead Property Tax: D. Taxable Market Value of Residential Homestead Assumes that the Pay 2010 market value increased over Pay 2009 by -6.6%. Countywide, the median increase in taxable market value from Pay 2009 to Pay 2010 is -6.7%. E. Calculate the Net Tax Capacity of a Residential Homestead Pay 2009: 1 st 500,000 of Market Value @ 1.00%, remainder @ 1.25% Pay 2010: 1 st 500,000 of Market Value @ 1.00%, remainder @ 1.25% F. Calculate the taxing district's portion of the Gross Tax Pay 2009: multiply the Pay 2009 net tax capacity (E) by the Pay 2009 tax capacity local tax rate (A7), plus multiply the Pay 2009 market value (D) by the Pay 2009 market value local tax rate (Al2) Pay 2010: multiply the Pay 2010 net tax capacity (E) by the Pay 2010 tax capacity local tax rate (137) , plus multiply the Pay 2010 market value (D) by the Pay 2010 market value local tax rate (1312) G. Calculate the total market value homestead credit 0.40% of the first 76,000 of market value (D), reduced by 0 .09% on the market value over 76,000 The credit decreases as the market value over 76,000 increases, until a 414,000 home receives 0 credit. H. Calculate the taxing district's estimated share of market value homestead credit The credit is apportioned to all taxing districts based on their share of the total tax rate. Example of 150,000 home: (76,000 x .40% = $304) - (74,000 x .09% = $66.60) = $237.40 Assume the city is 30% of the total tax, then the city receives 30% of the Credit $237.40 x 30% = $71.22 The actual percentage will vary depending on the combination of county, city/town, school, and special taxing districts. I. Calculate the taxing district's portion of the Net Tax Gross Tax (F) minus the taxing district's share of credit (H) 26-30. Calculate the % increase/decrease from 2009 to 2010 (2010 -2009) / 2009 City of Arden Hills General Fund Summary 2010 Budget Actual Actual Budget Amended Actual Proposed Adopted % Change FY 2007 FY 2008 FY 2009 FY 2009 6/30/09 FY 2010 FY 2010 1 09 vs 10 Revenues Taxes 101-41300-31010 Current Ad Valorem Taxes $ 2,601,133 $ 2,467,248 $ 2,948,646 $ 2,948,646 $ 1,336,756 3,057,666 $ - 3.70% 101-41300-31011 Payments in Leiu of Taxes 157 173 - - - - - #DIV/0! 101-41300-31020 Delinquent Ad Valorem Taxes 1,824 7,361 7,000 7,000 19,610 20,000 - 185.71 % 101-41300-31030 Mobile Home Tax 7,814 6,834 7,500 7,500 1,526 7,500 - 0.00% 101-41300-31040 Fiscal Disparities - 221,945 - - 135,614 - - #DIV/0! 101-41300-31510 Aggregate Removal Tax (364) (114) - - 539 - - #DIV/0! 101-41300-31910 Penalties & Interest on Taxes - - - - 323 - - #DIV/0! 101-41300-31920 Forfeited Tax Sales - - - - - - - #DIV/0! Total Taxes 2,610,563 2,703,447 2,963,146 2,963,146 1,494,369 3,085,166 - 4.12% Licenses and Permits 101-41300-32110 Liquor, On Sale & Sunday 32,610 25,110 32,500 32,500 24,750 32,500 - 0.00% 101-41300-32111 Liquor, Off Sale - 200 - - 400 - - #DIV/0! 101-41300-32160 Contractors 4,650 4,530 5,000 5,000 2,910 5,000 - 0.00% 101-41910-32170 Rental Regulation Fee - - - - - 7,000 - #DIV/0! 101-41300-32180 Business Licenses 13,432 10,551 13,000 13,000 10,441 13,000 - 0.00% 101-41300-32181 Other Business Lic/Permits - 415 - - 300 - - #DIV/0! 101-42400-32210 Plan Review & Bldg Permits 215,701 108,138 125,000 125,000 45,699 125,000 - 0.00% 101-42400-32220 Mechanical Permits 38,135 29,241 20,000 20,000 8,817 20,000 - 0.00% 101-42400-32230 Plumbing Permits 17,785 8,772 10,000 10,000 3,854 10,000 - 0.00% 101-41300-32240 Animal Licenses 1,905 2,318 3,500 3,500 983 3,500 - 0.00% 101-41910-32250 Sign Permits 1,600 1,450 1,000 1,000 500 1,100 - 10.00% 101-42400-32260 Electrial Permits 25,291 22,714 20,000 20,000 13,556 20,000 - 0.00% 101-42400-32270 Utility Permit Fees 600 2,700 300 300 960 300 - 0.00% 101-42400-32275 Fire Suppression Permits 8,850 6,994 6,000 6,000 3,443 6,000 - 0.00% 101-42400-32278 Fire Permit Plan Check Fee 4,627 3,878 3,000 3,000 1,343 3,000 - 0.00% 101-41910-32279 Erosion/Grading Permit - 910 2,500 2,500 - 1,500 - -40.00% 101-41300-32280 Other Nonbusiness Lic/Permits - 855 - - 815 - - #DIV/0! Total Licenses and Permits 365,185 228,776 241,800 241,800 118,771 247,900 - 2.52% Intergovernmental Revenues 101-41300-33402 Market Value Homestead Credit 54,238 26,729 - - - (61,774) - #DIV/0! 101-41300-33403 Mobile Home Homestead Credit 4,462 4,182 - - - - - #DIV/0! 101-41300-33420 State PERA Aid 5,179 5,179 5,179 5,179 - 5,179 - 0.00% 101-42100-33416 Police Aid 38,988 44,607 44,000 44,000 - 44,000 - 0.00% 101-43100-33418 MSA Maintenance 64,166 64,581 64,000 64,000 33,825 67,649 - 5.70% 101-41910-33422 State Grants 10,000 - - - - - - #DIV/0! 101-41410-33621 Other County Grants & Aids 256 - - - - - - #DIV/0! Other Intergovernmental 177,289 145,278 113,179 113,179 33,825 55,054 - -51.36% Charges for Services 101-41910-34103 Zoning and Subdivision Fees - - - - - - - #DIV/0! 101-41910-34104 Plan Checking Fees 103,447 37,542 40,000 40,000 16,618 40,000 - 0.00% 101-41300-34105 Sale of Maps and Publications - 22 - - - - - #DIV/0! 101-41910-34106 Plat & Other Fees 18,951 11,311 12,000 12,000 4,532 12,000 - 0.00% 101-41300-34108 Admin Chgs from other funds - 21,720 27,271 27,271 - 27,271 - 0.00% 101-41500-34108 Admin Chgs from other funds - 27,602 28,357 28,357 - 37,307 - 31.56% 101-41940-34108 Admin Chgs from other funds 60,000 77,730 92,937 92,937 - 95,299 - 2.54% 101-41910-34110 Zoning Permit Fees - - 750 750 630 800 - 6.67% 101-41300-34120 Water Tower Antenna Rentals 53,256 72,784 73,760 73,760 31,445 73,760 - 0.00% 101-41300-34121 Other General Govt Charges 3,299 3,245 3,300 3,300 3,365 3,300 - 0.00% 101-42100-34202 False Alarms 2,700 1,600 2,000 2,000 200 2,000 - 0.00% 101-42100-34206 Impound Fees 136 - 200 200 - 200 - 0.00% 101-42400-34207 State Building Code Surcharges 10,292 5,926 8,000 8,000 2,608 8,000 - 0.00% 101-42400-34208 City Building Code Surcharges 1,186 1,462 1,000 1,000 476 1,000 - 0.00% 101-45200-34300 Park Facility Rental Fees 3,066 2,659 3,500 3,500 1,801 3,500 - 0.00% 101-45120-34730 Summer Playground Fees 12,878 14,658 13,000 13,000 10,298 12,000 - -7.69% 101-45120-34740 Summer Trip Fees 1,541 1,957 - - - - - #DIV/0! 101-45120-34781 Adult Programs 70 - 15,500 15,500 10,880 17,000 - 9.68% 101-45120-34782 Youth Programs 42,345 41,236 42,500 42,500 28,602 42,000 - -1.18% 101-45120-34785 Adult Softball 14,369 17,085 - - 1,840 - - #DIV/0! 101-45120-34790 After School Programs 13,247 13,717 15,000 15,000 9,496 14,000 - -6.67% 101-45120-34791 Special Events Programs 2,397 2,981 3,000 3,000 2,987 3,500 - 16.67% 101-41910-34950 Other Charges for Services - 100 - - 50 200 - #DIV/0! Total Charges for Services 343,179 355,337 382,075 382,075 125,826 393,137 - 1 2.90% Fines & Forfeits 101-42100-35110 Highway Patrol Fines 953 9,215 3,000 3,000 525 10,000 - 233.33% 101-42100-35130 DWI Forfeitures 540 1,232 1,000 1,000 - 1,000 - 0.00% 101-42100-35140 Violations Bureau 27,160 19,642 30,000 30,000 10,205 23,000 - -23.33% 101-42100-35150 Tobacco Fines - 100 - - - - - #DIV/0! 101-42100-35200 Forfeits - - - - 289 5,441 - #DIV/0! Total Fines & Forfeits 28,653 30,189 34,000 34,000 11,019 39,441 - 16.00% Miscellaneous I101-41300-36210 Interest Income 64,870 64,830 40,000 40,000 (4,759) 40,000 - 0.00% 101-41300-36230 Contributions/Donations (5,064) (59) 3,600 3,600 2,448 3,600 - 0.00% 101-41940-36230 Contributions & donations 145 85 - - - - - #DIV/0! 101-45120-36230 Contributions & donations - - - - 200 - - #DIV/0! 101-45400-36230 Contributions & donations - - - - - 15,000 - #DIV/0! 101-41910-36240 Developer Reimbursements 50 - - - - - - #DIV/0! 101-41940-36270 Developer Reimbursements 500,000 - - - 147 - - #DIV/0! 101-41910-36280 Other Miscellaneous Revenue 24,194 50 - - - - - #DIV/0! 101-43100-36270 Miscellaneous Reimbursements 517 553 450 450 195 550 - 22.22% 101-41300-36270 Miscellaneous Reimbursement 153 25,213 4,000 4,000 963 4,000 - 0.00% 101-41500-36270 Miscellaneous Reimbursement - 60 3,000 3,000 - 3,000 - 0.00% 101-43100-36275 Private Street Light Reimburseme - - - - - - - #DIV/0! 101-42400-36280 Fire Inspection Reimbursement - - - - - - - #DIV/0! Total Miscellaneous 584,865 90,732 51,050 51,050 (805) 66,150 - 29.58% Total Operating Revenues 4,109,735 3,553,759 3,785,250 3,785,250 1,783,005 3,886,848 - 2.68% Other Financing Sources 101-42100-39101 Sales of General Fixed Assets - - - - - - - #DIV/0! 101-45200-39203 Transfer 39,000 - - - - - - #DIV/0! Total Other Financing Sources 39,000 - - - - - - #DIV/0! Total General Fund Revenue $ 4,148,735 $ 3,553,759 $ 3,785,250 $ 3,785,250 $ 1,783,005 $ 3,886,848 $ - 2.68% Operating Expenses Mayor & Council $ 59,044 $ 54,609 $ 79,386 $ 79,386 $ 34,569 $ 86,936 $ - 9.51 % Elections 12,813 20,288 1,010 1,010 1,641 12,600 - 1147.52% Administration 421,277 342,265 388,879 388,879 146,203 352,924 - -9.25% Finance & Support Services 70,741 124,705 142,832 142,832 76,824 144,448 - 1.13% Planning & Zoning 174,439 219,379 256,128 256,128 79,517 260,876 - 1.85% Government Buildings 365,524 186,179 240,106 240,106 49,189 240,711 - 0.25% Public Safety 1,101,524 1,197,337 1,217,766 1,275,114 806,622 1,308,900 - 2.65% Emergency Management - 7,131 32,746 32,746 2,736 32,921 - 0.53% Protective Inspections 216,482 216,320 243,144 243,144 112,076 251,158 - 3.30% Street Maintenance 246,530 265,409 282,719 282,719 123,727 286,501 - 1.34% Park Maintenance 281,976 351,958 407,636 407,636 171,543 415,489 - 1.93% Recreation 220,018 204,856 214,957 214,957 86,813 215,784 - 0.38% Celebrating Arden Hills - - - - - 25,000 - #DIV/0! Reserves/Contingency - - 6,315 6,315 - - - -100.00% Transfers 387,816 700,000 255,000 255,000 - 252,600 - -0.94% Total Operating Expenses 3,558,183 3,890,436 3,768,624 3,825,972 1,691,461 3,886,848 - 1.59% Capital Outlay Mayor & Council 1,657 - - - - - - #DIV/0! Elections - - - - - - - #DIV/0! Administration 5,379 1,919 - - - - - #DIV/0! Finance & Support Services - - - - - - - #DIV/0! Planning & Zoning 1,927 1,037 - - - - - #DIV/0! Government Buildings 7,691 5,208 - - - - - #DIV/0! Public Safety - 949 - - - - - #DIV/0! Emergency Management - 3,593 - - - - - #DIV/0! Protective Inspections 1,613 1,047 - - - - - #DIV/0! Street Maintenance 3,700 387 - - - - - #DIV/0! Park Maintenance 5,364 387 - - - - - #DIV/0! Recreation - - - - - - - #DIV/0! Celebrating Arden Hills - - - - - - - #DIV/0! Transfers - - - - - - - #DIV/0! Total Capital Outlay 27,332 14,527 - - - - - #DIV/0! Total General Fund Expenses $ 3,585,514 $ 3,904,963 $ 3,768,624 $ 3,825,972 $ 1,691,461 $ 3,886,848 $ - 1.59% Revenue Over/(Under) Expenses 563,220 (351,204) 16,625 (40,723) 91,543 (0) - CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO.2009-024 A RESOLUTION SETTING THE PRELIMINARY LEVY FOR TAXES PAYABLE IN 2010 BE IT RESOLVED by the Arden Hills City Council that the following proposed sums of money be levied for levy year 2009 payable in 2010 upon taxable property in said City of Arden Hills for the following purposes: LEVY AMOUNT CERTIFIED BEFORE HACA HACA LEVY AMOUNT General Fund $3,05706 $ - 0 - $3,057,666 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 14th DAY OYSEPTEMBER, 2009. S TANLEY D . HARP S TEAD, MAYOR ATTEST: RONALD MOORSE, CITY ADMINISTRATOR CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO.2009-025 RESOLUTION ADOPTING TRUTH IN TAXATION PUBLIC HEARING DATE FOR PROPOSED TAXES PAYABLE IN 2010 BE IT RESOLVED by the Arden Hills City Council that the following Truth in Taxation Public Hearing date, time and place for proposed property taxes payable in 2010 be certified to the Ramsey County Auditor and that notice of the Public Hearing be published in accordance with Minnesota Statute. Public Hearin Date: December 12009 Time: P.M. Place: Council Chambers 1245 Highway 96 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 14th DAY OF SEPTEMBER, 2009. S TANLEY D . HARP S TEAD, MAYOR ATTEST: RONALD MOORSE, CITY ADMINISTRATOR