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As shown above, the tax levy is scheduled to increase by 3.65% in 2016. For a median-valued home
<br />�� that experiences a 0°/o valuation increase (citywide average), the tax impact will be $1.90 per month or
<br />an increase of 2.7%.
<br />A Summary of the 2016 Tax Levy by major category is presented below
<br />2016 Proposed Tax Levy $ Increase % Increase
<br />2015 2016 (Decrease) (Decrease)
<br />Operations $12,995,902 $13,478,720 $ 482,818 3.7%
<br />Capital 1,801,000 2,136,000 335,000 18.6%
<br />Debt 3,480,000 3,330,000 (150,000) -4.3%
<br />Total $18,276,902 $18,944,720 $ 667,818 3.65%
<br />.. It's worth noting that the State of Minnesota provides a number of property tax relief programs that are
<br />designed to offset local tax increases. For 2014, eligibility for homeowners was capped at household
<br />incomes of $107,150, while renters were eligible up to an income of $58,060. Depending on household
<br />income, residents could potentially receive a partial refund of their increased taxes. This would
<br />effectively reduce the tax impacts noted above.
<br />2016 Budget
<br />The 2016 Preliminary Budget as currently amended is $52,112,620. The Budget for the tax-su�orted
<br />programs including capital replacements is $28,745,490, an increase of $690,150 ar 2.46%.
<br />Spending increases in the tax-supported programs is detailed below.
<br />2015 Operating Budget
<br />2016 Budget Reductions
<br />Supplies, �naterials, contractual services
<br />Personnel-related costs
<br />Debt Service
<br />Total Budget Reductions
<br />2016 Budget Additions
<br />Supplies, materials, contractual services
<br />Employee cost-of-living-adjustment
<br />Employee wage step increases
<br />Employee position changes/reorg.
<br />Insurance & pensionincreases
<br />Capital replacements
<br />Net Budget Change
<br />$ 28,055,340
<br />$ (361,485)
<br />(313,000)
<br />(150,000)
<br />$ (824,485)
<br />$
<br />Total Budget Additions $
<br />2016 Operating Budget
<br />$
<br />382,710
<br />205,000
<br />124,715
<br />632,315
<br />73,200
<br />96,695
<br />1,514,635
<br />690,150
<br />$ 28,745,490
<br />% Increase 2.46%
<br />�� It should be noted that the 2016 Operating Budget far the tax-supported programs continues to rely on
<br />� $375,000 in cash reserves from the General Fund and $275,000 in reserves from the License Center
<br />Fund to achieve a balanced budget.
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