HomeMy WebLinkAbout15.F.2. TNT Hearing Notice Insert
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}5. F. J.
CITY OF SHAKOPEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: TNT Hearing Notice Insert
DATE: September 28, 2006
Introduction & Background
Attached is a revised proposed insert for the Truth-in-Taxation hearing
notice. The hearing is December 4th, the notices should be mailed
between November 10th and 24th. The city needs to submit the proposed
notice to the county by October 13th for approval and deliver the
inserts by October 20th.
Council is scheduled to meet October 24 to continue discussions on the
2007 budget/tax levy.
Action
Discuss and give staff direction.
Gregg Voxland
Finance Director
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Dear City of Shakopee Taxpayer:
The City of Shakopee's levy (amount of budget paid by property taxes) went up from $10.9 million in
2006 to $13.3 miIlion proposed for 2007. After factoring in other sources of income to the budget, the
(;0 overall increase in the tax rate is estimated to be 8.7%. The major reasons for the increase in the tax rate
are:
VO . A 48% decline in building activity.
. A full year of the equivalent offive positions and 5 new positions in various departments. Each
of these positions is needed to address growth in the community.
. Cost of living adjustments for employees, and general increase in the cost of providing services,
While the 8.7% tax rate increase impacts the taxes paid, so too will be any increase in market value. City-wide, properties will
see an average value increase of 6.2% - some properties may be lower, others higher. However, the average value property,
when combined with the tax levy increase, should show an average of 17.2% increase in the tax amount, assuming no other
changes are made prior to the Truth In Taxation hearing on December 4th. Council will be analyzing the budget further to try to
lower the proposed tax levy before December 4th.
Visit www.ci.shakooee.mn.us, and click on budget information for more information.
Below is a graph of tax rates for the City. The increase in 2002 is due to a cut in state aids.
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Pr
Tax Rate Trend
40 ....--....-.-..----...---.--...----..----..........-.......-...--...--....
35 .-
30 /
/
i: -- /
~ 15 -.,
10
5
0
1999 2000 2001 2002 2003 2004 2005 2006 2007
Sincerely,
Mayor John J. Schmitt
Councilor Matt Lehman
Councilor Terry Joos
.' Councilor Steve Menden
Councilor Steve Clay
ON. rfJt3L ~
REVISED 15 F2
Dear City of Shakopee Taxpayer:
The City of Shako pee's levy (amount of budget paid by property taxes) is proposed to go up from $10,9
million in 2006 to $13.3 for 2007. The increase in the tax rate is estimated to be 8.7%. The major
reasons for the increase in the tax rate are:
. A 48% decline in building activity ($1.3 million in revenue).
. Afull year of five positions hired mid-year 2006.
. 3 new positions in the Police Departments and 2 new Public Works positions, all of which are
needed to help "catch up" in the provision of services because of previous growth in Shakopee.
. Inflationary increases in employee wages, supplies and contracted services.
While the 8.7% tax rate increase impacts the taxes paid, so too will be any increase in market value. On average, city-wide,
properties will see an increase in their assessed value. The average value increase, when combined with the tax rate increase,
would show an estimated 17.2% increase in the tax amount, assuming no other changes are made prior to the Truth In Taxation
public hearing on December 4th. Council will meet to analyze the budget further in an attempt to lower the proposed tax levy
prior to December 4th.
Visit www.ci.shakopee.mn.us,and click on budget information for more information.
Below is a graph oftax rates for the City. The increase in 2002 is due to elimination by the state of Homestead Credit Aid
and reduction in Local Government Aid.
Tax Rate Trend
40
35 ---
,
30 /
~ 25 --. /
20
~ 15 --..
;
10 1
5 1
0 ~
1999 2000 2001 2002 2003 2004 2005 2006 2007
Sincerely, .
Mayor John J. Schmitt
Councilor Matt Lehman
Councilor Teny Joos
Councilor Steve Menden
Councilor Steve Clay