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9. Establish Levy Limit and Set Truth in Taxation Hearing Dates.CITY OF R 0 S 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 0 FAX (612) 937 -5739 MEMORANDUM TO: Mayor and City Council FROM: Don Ashworth, City Manager DATE: September 3, 1997 SUBJ: Acknowledge State Established Levy Limit for the City of Chanhassen and Set Truth in Taxation Hearing Dates BACKGROUND State law requires that we conduct Truth in Taxation hearings prior to adoption of final budgets � county, for the school district , and cities. Typically, two dates are set --one for the official public tY hearin g and a second for a continuation hearing, if needed. The hearing dates must occur between November 29 and December 20. As two school districts, two counties and metro g special taxing districts et to choose their dates before the city, the number of open dates left is very w, especially recognizing that the National League of Cities Conference occurs during that r°y � p Y � t time frame. The four open dates are December 2, 10, 15, and 17. If the 15 1n or 17 o are chosen p for the initial hearing, there is no allowance for a continuation hearing. Staff would recomm end that the council select Tuesday, December 2 at 5:30 p.m. for the initial hearing and Monday, December 15 at 5:30 p.m. for the continuation and adoption hearing. establish two hearing Although the requirement to g dates has been in existence for several years, this will be the first Y ear that the taxing districts will be under levy limits. Specifically, the state has mandated that cities, counties, and school districts cannot levy more than the previous year, but do make an allowance for CPI and household adjustments. For 1998, the City of Chanhassen ca nnot le more than $4 It should be noted that this number does not include bonded debt ($858,688) nor the dollars necessary to pay for the park referendum. Both of these are considered special levies outside of the levy limit calculations. After the city submits its levy to the county, County the Coun Auditor is responsible to prepare Truth in Taxation notices to be sent to each ro ert owner informing them of what their property tax will likely be unless a governmental unit decides to le something less than their levy limit. [Note: A governmental Mayor and City Council .Sep tember 3, 1997 Page 2 • either at the initial hearing unit can make a determination to reduce its levy e g or the continuation e the amount over the certified levy limit.] hearin• g, but cannot increas • several changes in how property tax calculations are to This past legislative session also included se g p p ' roe .owners will see a 5 % -6% decrease in occur. On a pure formula basis, most residential pro rty their taxes . solely because of the. state's decision to infuse more dollars into the property lax I am sure- that it was because of the state's desire to see property tax relief system from the state. • ' e the le slature did not want cities, counties and school that levy limits were put into place, i. g • and take away the ro erty tax relief intended by the state. The districts to increase their Levy y p p , , . ' or work efforts b county assessors throughout the state. According .y, new system required rna� y as to what t e f increase the city had in its tax base. State law o as of today, we have no idea yp t . Provides until October 1 S to complete those ,calculations. Although we do , the .county assessors p an es occurred in the tax base, new construction coupled not know for certain what type of ch g odification in roe tax calculations, should produce a tax decrease or the average with them property �y roach the Truth in Taxation hearing dates, we should be considering various a pp taxpayer. As we howin that transit costs and the park referendum are included in the rut forms of publication s g in Taxation hearing notice. [INNESOTA Department of Revenue Property Tax Division Mail Station 3340 Phone (612) 296 -3155 Payable 1998 Overall Levy Limitation Notice CHANHASSEN CITY OF CITY ADMINISTRATOR CITY HALL 690 COULTER DRIVE CHANHASSEN, MN 55317 St. Paul, MN 55146 -3340 Fax (612) 297 -2166 July 31, 1997 The payable 1998 overall levy limitation for your city is: $ 4 The following is a listing of the factors used in determining your city's payable 1998 overall levy limitation. See the enclosed letter for an explanation of these factors and for additional information concerning your city's overall levy limitation. 1. Total Final Certified Levy for the Taxes Payable Year 1997: $ 4 2. Payable 1997 Levy for Bonds and Certificates of Indebtedness a. Bonded Indebtedness: $ 835 b. Certificates of Indebtedness: $ c. Armory Bonds: $ d. Bonds of Another Governmental Subdivision: $ e. Total (a+b+c+d): $ 835 3. Payable 1997 Market Value -Based Referendum Levy: $ 4. 1997 Property Tax Aids a. 1997 Certified Local Government Aid (LGA): $ p b. 1997 Certified Homestead and Agricultural Credit Aid (HACA): $ 1 c. 1997 Certified Local Performance Aid (LPA): $ 17 d. 1997 Taconite Aids: $ e. Total (a+b+c +d): $ 1 5. Beginning Levy Limit Base for Payable 1998 (1 - 2e - 3 + 4e): $ 4 6. Implicit Price Deflator Adjustment: 1.022 7. Household Growth Adjustment a. 1995 Households: 5 b. 1996 Households: 5 c. Ratio of 1996 to 1995 Households (b /a, but not less than 1.000): 1.071 8. Adjusted Levy Limit Base for Payable 1998 (5 x 6 x 7c): $ 5 9. New Net Tax Capacity -Based Referendum Levies: $ 10. 1998 Property Tax Aids a. 1998 Certified Local Government Aid (LGA): $ 0 b. 1998 Certified Homestead and Agricultural Credit Aid (HACA): $ 1 c. 1998 Certified Local Performance Aid (LPA): $ 21,471 d. 1998 Taconite Aids: $ e. Total (a+b+c+d): $ 1 11. Payable 1998 Overall Levy Limitation (8 + 9 - l0e): $ 4 An equal opportunity employer TTY /TDD: (612) 215 -0069 EXHIBIT: 1.11 Approved: Updated: 25- Aug -97 DEBT ANALYSIS - SUMMARY REPORT CURRENT AND PROJECTED PROPERTY TAX LEVIES ALL FUNDS - REPORT TOTALS FUND DESCRIPTION LOC 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (96 -END) PROPERTY TAX LEVIES GENERAL OBLIGATION DEBT CORP BONDS 1988 (F316) 2.01 132,500 135,000 135,000 135,000 135,000 135,000 135,000 135,000 145,000 145,000 140,000 140,000 1,110,000 CORP BDS 1989C (F323) 2.02 100,000 82,900 82,900 82,900 82,900 82,900 82,900 96,040 96,040 101,000 101,000 100,000 0 742,780 REF BLDG BDS 1991 D (F302) 2.03 162,700 173,400 163,400 148,400 140,400 125,400 149,666 150,420 0 565,886 TOTALS - GO 395,200 391,300 381,300 366,300 358,300 343,300 367,566 381,460 241,040 246,000 241,000 240,000 0 2,418,666 SPECIAL ASSESSMENT FUNDS BONDS OF 1972(73 (F506) 3.11 0 0 0 0 0 0 REF IMPR BDS -83 (F514) 3.12 0 0 0 0 0 0 REF IMPR BONDS -96A (F341) 3.13 0 0 0 0 0 0 0 0 0 0 0 0 0 REF IMPR BONDS -94B (F334) 3.14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 REF IMPR BDS -94A (F333) 3.15 0 0 0 0 0 0 0 0 0 0 0 0 0 IMPR BDS -1990 B (F324) 3.16 32,700 42,700 42,700 40,000 40,000 40,000 40, 000 40,000 160 IMPR BDS -1991 A (F326) 3.17 133,000 133,000 168,671 98,000 135,000 135,000 135,000 135,000 135,000 773,000 REF IMPR BDS91 E (F303) 3.18 130,000 135,000 140,000 145,000 150,000 155,000 160,000 165,000 170 175,000 180,000 0 1,155,000 IMPR BDS -1992 A (F310) 3.19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 IMPR BDS -1993 C (F331) 3.20 0 0 0 0 0 0 0 0 0 0 0 0 0 IMPR BDS - 1995 B (F339) 3.21 0 78,607 85,000 85,000 90,000 90,000 85,000 85,000 90,000 85,000 773 IMPR BDS - 1995 C (F340) 3.22 0 0 67,975 71,122 75,842 75,031 494,179 595,578 40,125 42,188 1,462,040 IMPR BDS - 1996 B (F342) 3.23 0 0 0 0 0 0 0 0 IMPR BDS - 1996 D (F344) 3.24 0 0 0 0 0 0 0 0 TOTALS - SPECIALS 162,700 310,700 315,700 353,671 366,607 482,975 491,122 505,842 470,031 889,179 860,578 130,125 127,188 4,323,647 TOTAL DEBT LEVIES 557,900 702,000 697,000 719,971 724,907 826,275 858,688 887,302 711,071 1,135,179 1,101,578 370,125 127,188 6,742,313 CASH BAL'S GUAR DEBT PYMTS - CAPITAL 1.10 0 3,408,568 3,994,254 1,240,644 3,290,567 3,342,630 3,538,988 3,712,747 3,874,205 3,949,137 4,132,039 4,197,953 4,512,011 REQUIRED DEBT LEVY 4.37 4.91 4.67 4.40 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 OPERATIONAL LEVY 21.01 20.54 20.87 21.43 20.50 20.50 20.50 20.50 20.50 20.50 20.50 20.50 20.50 TOTAL LEVY ( %) 25.38 25.45 25.54 25.83 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 TOTAL LEVY 3,241,000 3,640,000 3,815,400 4,226,300 4,625,000 4,763,750 4,906,663 5,053,862 5,205,478 5,361,643 5,522,492 5,688,167 5,858,812 -HACA 776,000 927,000 963,016 968,238 939,443 967,626 996,655 1,026,555 1,057,351 1,089,072 1,121,744 1,155,396 1,190,058 -FIS DIS DIST 224,000 240,000 121,398 355,476 366,140 377,124 388,438 400,091 412,094 424,457 437,191 450,306 463,816 NET LEVY 2,241,000 2,473,000 2,730,986 2,902,586 3,319,417 3,418,999 3,521,569 3,627,216 3,736,033 3,848,114 3,963,557 4,082,464 4,204,938 TAX CAPACITY 8.830 9.716 10.219 10.526 10.842 11.167 11.502 11.847 12.203 12.569 12.946 13.334 13.734 DEBT CAPACITY 557,900 702,000 697,000 719,971 832,500 857,475 883,199 909,695 936,986 965,096 994,049 1,023,870 1,054,586 DEBT CAPACITY VS. ACTUAL 0 0 0 0 107,593 31,200 24,511 22,393 225,915 (170,083) (107,529) 653,745 927,398 T)RAF 7 COMPLETE AND Minnesota Department of Revenue - Property Tax Division RETURN TO: Mail Station 3340 St. Paul, Minnesota 55146 -3340 Telephone: (612) 296 -5145 Fax: (612) 297 -2166 Name of Governmental Unit Name of Person Filling Out Form C / 7Y 0" Pq Mailin g Address Telephone �10Z,' "11.4 A (�/ 1 ) q3 7 1. Total Final Payable 1998 Levy Certified to County Auditor...... ............................... $ C� t 2. Total Special Levies (from page 2) ................ $ 3. Levy Subject to Levy Limitation (1 minus 2) ......... $ 4. 1997/1998 Levy Limitation ...................... I SCHEDULE SPECIAL LEVIES TOTAL A. Bonded Indebtedness (Net Tax Capacity Based) ..... $ B. Certificates of Indebtedness ..................... $ C. Payments for Bonds of Another Governmental Unit ... $ C� D. Principal and Interest on Armory Bonds ............ $ C� E. Unreimbured Costs of Spring 1997 Floods (B Y Appeal to the Dept. of Revenue Only) .......... $ 0 F. Tax Dollars Lost Due to Abatements Granted to Property in Disaster Areas ...................... $ G. Market Value Based Referendum Levies . ► �;:� Page 1 H. Increases in Matching Fund Requirements for State or Federal Grants ........................ $ � L Preparing for or Repairing the Effects of Natural Disasters (By Appeal to the Dept. of Revenue Only) .. $ � J. Special Levies for Specific Counties and Cities ...... $ Q (1) Faribault County and City of Blue Earth for Matching Funds (Laws 1997, Chap. 231, Art. 3 Sec. 8) .................................. . $ ('`) (2) Washington County for Payments to Washington County HRA (Laws 1997, Chap. 231, Art. 2, Sec. 58) .. ............................... $ Total Special Levies ........... ............................... $ I the budget representative of the above mentioned county or city, certify that the foregoing figures are accurate to the best of my knowledge. SIGNATURE OF BUDGET OFFICER TITLE 6 T 4=- Page 2