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HomeMy WebLinkAbout5.B. 2004 Proposed Tax Levy and Budget Resolution-Res. No. 5951 City of Shakopee Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director RE: 2004 Proposed Tax Levy and Budget Resolution DATE: September 3, 2003 Introduction Attached is Resolution Number 5951, which sets the proposed maximum 2003/04 tax levy. Time frames The existing law requires that Shakopee certify a proposed budget, budget hearing date and proposed maximum tax levy to the county by September 15. The City has to certify the final levy to the county by December 24, 2003. Tax Levy The proposed maximum tax levy for 2003/04 is a General Fund levy of $8,498,893 plus a debt service levy of $178,515. The General Fund levy last year was $7,370,936 plus $171,749 for debt service. The increase in the gross levy for the General Fund is $1,127,957 or 15.3%. Additionally, the part of the EDA levy for economic development purposes in the amount of $60,000 will be shown as a General Fund levy (and levy limit) as per the State Department of Revenue. The total tax levy by the city on the tax capacity (including general fund, EDA and debt service but excluding fire station bonds debt service) is an estimated increase of $1,134,723 or 14.9%, from $7,602,685 to $8,737,408. The decision to reduce the levy can be made at a later date because it is the maximum proposed levy being adopted now which give Council the greatest flexibility in finalizing the budget for December. The levy for the fire station bonds is already set by previous action and is $265,217. This levy is on the market value of real estate and not the tax capacity value. Governmental Funds Budget The Council is required to certify a proposed budget to the County Auditor by September 15th. Council may change the amount up or down for the final budget. The resolution includes the Governmental Funds Budget proposed expenditures in the amount of $20,941,800 (net of special assessments per State Auditor) . The budget is not fixed. The comparable number last year was $19,605,724. Public Hearing Date The date for the official UTruth in Taxation" pubic hearing on the tax levy and budget that is reserved for cities is December 1 with the continuation date of December 8th if needed. Alternatives 1. Adopt resolution as drafted. 2. Increase or decrease amounts for tax levy or budget in the resolution. Action Move to set the public hearing date for the 2004 budget on December 1 with continuation date of December 8th. Offer Resolution Number 5951, A Resolution Setting Proposed Maximum 2003 Tax Levy, Collectable In 2004, and move its adoption. Gr!:! Voxland Finance Director g:\budget04\budres04 RESOLUTION NO. 5951 A RESOLUTION SETTING PROPOSED MAXIMUM 2003 TAX LEVY, COLLECTIBLE IN 2004 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, COUNTY OF SCOTT, MINNESOTA, that the following amounts be levied as the proposed maximum tax levy in accordance with existing law for the current year upon the taxable property in the City of Shakopee; General Levy $8,342,584 plus Economic Development Authority $ 60,000 Debt Service Levy $ 334,824 Debt Service - Fire Referendum $ 265,217 (Market Value) BE IT FURTHER RESOLVED, that the proposed expenditures for the Governmental Funds Budget for 2004 is $20,941,800. BE IT FURTHER RESOLVED, that the City Clerk is hereby instructed to transmit a certified copy to this resolution to the County Auditor of Scott County, Minnesota. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of September, 2003. Mayor of the City of Shakopee ATTEST: City Clerk