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HomeMy WebLinkAbout13.F.1. Proposed Maximum 2009 Tax Levy Collectible in 2010-Res. No. 6930 /3. Ff I, City of Shako pee Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director RE: 2010 Proposed Tax Levy and Budget Resolution DATE: August 19, 2009 Introduction Attached is Resolution Number 6930, which sets the proposed maximum 2009/10 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 18, 2009. Tax Levy The proposed maximum tax levy for 2009/10 is shown below. The decrease in the gross levy is $50,000 or 0.3% due to the decrease in the referendum based levy for the fire station bonds. Proposed Levied 2009/10 2008/09 Operating levy $13,814,206 $13,652,000 City levy for EDA -0- 60,000 Debt levy reclassification 341,932 253,115 Limited levy 13,814,206 13,965,115 Debt service levy 898,244 1,005,438 Debt levy reclassification (341,932) (253,115) Debt Service referendum 201,227 246,239 Total gross levy $14,913,677 $14,963,677 The decision to reduce the levy can be made at a later date because it is the maximum proposed levy being adopted now. The levy for the fire station bonds is already set by previous action and is $251,227. Due to funds on hand, the levy is being reduced by $50,000. This levy is on the market value of real estate and not the tax capacity value. The fiscal disparity distribution number for 2010 has been received. The estimated impact of setting the same levy as pay 2009 has changed from a $7 increase on the largest block of home to being a $7 decrease. In other words, 56% of the residential parcels would see a tax decrease. Governmental Funds Budget The City is required to certify a proposed budget ( expendi t ure s ) 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 $31,001,370. The budget is not fixed. The comparable number last year was $31,188,200. Public Hearing Date The date for the official ~Truth in Taxation" pubic hearing on the tax levy and budget is December 1st at the regular Council meeting. A special separate meeting is no longer required. 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 2010 tax levy and budget on December 1, 2009 at 7:00 PM located at City Hall, 129 Holmes Street. Offer Resolution Number 6930 A Resolution Setting Proposed Maximum 2009 Tax Levy, Collectable In 2010, and move its adoption. G~OXland Finance Director h:\budget10\budres 10 RESOLUTION NO. 6930 A RESOLUTION SETTING PROPOSED MAXIMUM 2009 TAX LEVY, COLLECTIBLE IN 2010 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 $14,717,438 Plus Economic Development Authority -0- Debt Service - Fire Referendum 201,227 (Market Value) BE IT FURTHER RESOLVED, that the proposed expenditures for the Governmental Funds Budget for 2010 is $31,001,370. BE IT FURTHER RESOLVED, that the public hearing on the tax levy and budget is set for December 1st at 7:00pm. Adopted in session of the City Council of the City of Shakopee, Minnesota held this day of September, 2009. Mayor of the City of Shakopee ATTEST: City Clerk