B 2004 Preliminary BudgetCITYOF
CHANHASSEN
7TO0 Market Boulevard
PO Box 147
Ohanhassen, MN 55317
Administration
Fax 9522271110
Building Inspections
Phone: 952 22~ 1180
Fax: 952.2271190
Engineering
Phone: 952.22/1160
Fax: 9522271170
Finance
Phone: 9522271140
Fax: 9522271110
Park & Recreation
Phone: 952227.1120
Fax: 9522271110
Recreation Center
2310 Coulter Boulevard
Phone: 952.2271400
Fax: 952 2271404
Planning &
Natural Resources
Phone: 952.2271130
Fax: 9522271110
Public Works
1591 Park Road
Phone: 952.2271300
Fax: 952.2271310
Senior Center
Phone: 952227.1125
Fax: 952.227 1110
Web Site
wwwci chanhassen mn us
MEMORANDUM
TO:
FROM:
DATE:
SUB J:
Mayor
City Council
Bruce M. DeJong, Finance Director
August 20, 2003
2004 Preliminary Budget and Tax Levy
The City of Chanhassen faces several challenges in the next few years. The
State of Minnesota budget problem has been resolved, in part, by cutting state
aids to cities. Then strict levy limits were imposed to make sure that cities
didn't raise property taxes enough to wipe out that tax savings. This leads us to
a situation where Chanhassen's revenues will be lower in 2004 than they were in
2003. Combined with demand for services which continue to increase along
with our rising population, staffing levels have remained essentially flat during
the last several years. This causes tension in preparing budgets, but the
department directors have responded really well to the situation. Their initial
budget requests this year reflect their hard work at reducing any unnecessary
expenses.
General Fund
Expenditures
Our general fund expenditure budget is up less than 1% over 2003. This
includes personal services increases of 2.3% for salaries and 20% for insurance.
We are examining options to reduce the health costs including plan design
changes. The remaining increases are spread among several departments.
The Administration Department shows a large increase in salaries due to
returning Todd Gerhardt's full salary back into the General Fund. He was being
charged 35% to the Cable TV fund when he was Assistant Manager. We have
not put any of Justin Miller's salary back into the Cable TV fund. The total
increase in Administration is $40,581. The issue before us is how to recognize
payment for the services that the General Fund provides to other operating
funds. We have to examine how to charge the Cable TV, Environmental, Water,
Sewer, and Storm Water funds for the time, effort and supplies that are provided
by the general management staff. Those transfers could be substantial and could
The City ot Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks A great place to live, work and play
CITYOF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.2271100
Fax: 952 2271110
Building Inspections
Phone: 9522271180
Fax: 9522271190
Engineering
Phone: 9522271160
Fax: 9522271170
Finance
Phone: 9522271140
Fax: 952,227 1110
Park a Recreation
Phone: 952.2271120
Fax: 952 227 1110
Recreation Center
2310 Coulter Boulevard
Phone 952227.1400
Fax: 9522271404
Planning &
Natural Resources
Phone: 952.2271130
Fax: 952 2271110
Public Works
1591 Park Road
Phooe: 9522271300
Fax: 952 2271310
Senior Center
Phone: 952 227 1125
Fax: 952 227 1110
Web Site
wwwci chanhassen mn.us
go a long way to mitigating the current imbalance between our revenues and
expenditures. Staff is working to determine a reasonable estimate of those
allocations for future budget presentations.
Changes in the Finance Department move money from salary expense, which
was for a new employee that was deleted during the first budget reductions this
year, to consulting. There are certain tasks that we need additional help with,
including GASB 34 and year-end closing of the books, so we have used our
auditors for these tasks. They will also be assisting throughout the remainder of
this year in preparation for GASB 34 implementation with the next audit.
The MIS budget is down due to reducing the amount of consultant services. The
remainder of the MIS budget is for hardware and software that is accounted for
in the Capital Replacement Fund.
City Hall is up substantially primarily due to the anticipated increase in general
liability insurance. This increase was not fully funded from the City Hall budget
last year and the premium is expected to increase another 20 % this year.
The Library Building maintenance is expected to be $27,000 higher for a full
year of maintenance. The total of $61,500 should cover all maintenance and
utilities for the building.
Elections are held on alternate years. This leads to an increase every other year
for election judge salaries, equipment maintenance and training. The total
amount is expected to be just under $32,000.
The Fire Department is experiencing a high level of calls, which leads to an
increase in volunteer salary dollars. To offset those costs, the department
leadership has aggressively reduced the amount they plan to spend on supplies
and consumables.
Animal Control has increased in the salary line item. The new plan is to use two
CSO's at half-time rather than the one benefit earning employee we had. This
provides more hours of coverage, but doesn't spend as much money on benefits.
Engineering has again requested $520,000 for residential street improvements.
Our belief last year was that we should only do street projects where we could
get at least 20% assessments in order to make the costs eligible for bonding. If
we do that, then there is no mason to collect the city share up front.
Street maintenance included a request for an additional employee - starting in
the middle of the year. In order to keep up with the maintenance and plowing
schedule, an additional employee needs to be added to cover the mileage that we
The Oily ol Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails and beautiful parks A greal place to live, work and play
CITYOF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Ohanhassen MN 55317
Adminislralion
Phone: 9522271100
Fax: 952227.1110
Building Inspections
Phone: 9522271180
Fax: 952227.1190
Engineering
Phone: 9522271160
Fax: 952.2271170
Finance
Phone: 952227 1140
Fax: 9522271110
Park & Recreation
Phone: 952227 1120
Fax: 952227 1110
Recreation Center
2310 Coulter Boulevard
Phone; 9522271400
Fax: 952.227 1404
Planning &
Natural Resources
Phone: 952.2271130
Fax: 9522271110
Public Works
1591 Park Road
Phone: 952.227 1300
Fax: 952 2271310
Senior Center
Phone: 952227.1125
Fax: 952 2271110
Web Site
wwwci chanhassen rnn us
have added. Street lighting can save some money over the previous budget, but
not the full amount that we had hoped for during last year's budget process.
Revenues
Property tax revenues will be reduced by approximately $127,684 due to the
state aid cuts. The way that is shown on the information from the Department of
Revenue is extremely confusing. The Payable 2004 Levy Limit Notice shows
that our levy limit is $6,657,060, but we won't be getting $298,734 in Market
Value Credit, so we have to levy the full amount of our limit to actually receive
a net property tax of $6,358,326. That is below last year's gross levy of
$6,486,010 by the $127,684, which is the 40% of our aid reduction that we can't
levy.
I have also predicted an increase in property tax delinquencies as the economy
continues to lag. $90,000 is the amount that our prior year delinquency rate
would indicate. This has to be added to the $298,734 in Market Value
Homestead Credit that we know we won't receive for a total uncollectible tax
amount of $388,734.
Other fee changes show up in the budget for liquor licenses. They are up about
$25,000 because the Legion now has a full license rather than a club license, and
the addition of Buffalo Wild Wings, Chipotle, and Rae Azteca. Gas piping
permits were eliminated when the Inspection department redesigned their permit
process. Now those permits are included in either the Heating & A/C or the
Plumbing permit lines. After reviewing the collection amounts, we decided to
just eliminate the $30,000 line item because our estimates seemed a little high
for this year. Fire sprinkler permits were also reduced $11,000 because estimates
were overly optimistic. Construction Administration is up $30,000 to more
accurately reflect our current experience. These are the fees that we charge as
part of monitoring development contracts.
The last big change is for interest earnings. We made just over 3% on our
investments last year, but the interest rate decline that occurred this year will
reduce our earnings this year and into next. I have dropped revenues by $40,000
in this account to reflect this change in the yield curve.
We will have to examine just how much gambling proceeds will be received
from the Legion and will add those in when we get a better handle on an
estimate.
The City of Chanhassen ,, A growing community with clean lakes, quality schools a charming downtown, thriving businesses, winding trails and beautifLd parks A great place to live. work, arrd play
CITYOF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanl~assen MN 55317
Administration
Phone: 9522271100
Fax: 952 227 1110
Building Inspections
Phone: 9522271180
Fax: 952227.1190
Engineering
Phone: 952227 1160
Fax: 9522271170
Finance
Phone: 952 2271140
Fax: 9522271110
Park & Recreation
Phone: 9522271120
Fax: 9522271110
Recreation Center
2310 Coulter Boulevard
Phone: 952 227 ~ 400
Fax: 9522271404
Planning &
Natural Resources
Phone: 9522271130
Fax: 9522271110
Public Works
1591 Park Road
Phone: 952.227 1300
Fax: 9522271310
Senior Center
Phone: 952227 1125
Fax: 952 227 1110
Web Site
wwwci chanhassen mn us
Debt Service Levies
The debt service levies were adjusted quite a while back in an attempt to work
out of the situation where we did not fully levy for our debt service accounts.
This put us in deficit for several funds. The "work-out" schedule included a
large jump in 2004 because we believed the downtown TIF district would be
back on the general tax rolls at that time. However, we are now intending to
extend the life of that district at least one year in accord with new legislation
regarding TIF deficits. This puts us in a dilemma - what do we do about that
debt levy?
I have updated the debt levy schedule to reflect the addition of the new
equipment certificates just levied, but have made no other changes. We will
need to discuss options with Mark Ruff again to clarify what exactly we can do
to postpone that huge jump in debt service - especially given the dramatic fall-
off in the next several years from our current levies.
I look forward to delving into these options with the City Council on Monday!
The City of Chanhassen o A growing community with clean lakes quality scboCs a charming downtown thriving businesses, winding trails and beautiful parks A great place to live work. and play
CITY OF CHANHASSEN
2003 BUDGET
REVENUE
101 General Fund
IACCOUNT
DESCRIPTION
GENERAL PROPERTY TAX
3010
3002
3011
3041
3090
3500
Current Property Tax
Allowance for Delinquent Taxes
Delinquent Property Tax
Homestead & Ag Credit
Other Property Taxes
Local Government Aid
TOTAL GENERAL PROPERTY TAX
LICENSES
3203 Dog Kennel
3205 Dog or Cat
3213 Solicitor
3223 3.2 Off and On Sale
3226 Liquor On and Off Sale
3227 Club and Sunday
3230 Rental Housing Licenses
3284 Rubbish
* TOTAL LICENSES
PERMITS
3301 Building
3302 Plan Check
3305 Heating & A/C
3306 Plumbing
3307 Trenching
3308 Gun
3309 Sprinkler
3310 Gas Piping
3311 Sign
3316 Septic Tank
3320 Stable
3328 Wetland Alteration
3329 Demolition
3390 Misc. Permits
* TOTAL PERMITS
2002
ACTUAL
5,011,983
44,955
235,163
354,584
20,472
5,667,157
463
2,061
745
868
50,161
7,762
1,090
63,150
665,766
355,104
110,255
95,010
18,197
960
4,348
30
3,615
400
260
1,100
965
1,256,010
2003
BUDGET
6,465,535
(60,000)
50,000
20,400
6,475,935
6O0
2,300
550
80O
55,OO0
1,700
40,000
50O
101,450
616,000
365,O0O
110,000
88,000
10,000
1,000
16,000
30,000
3,000
2,000
300
600
100
1,500
1,243,500
2004
BUDGET
6,657,060
(388,734)
50,000
6,318,326
450
2,000
550
85O
81,000
20,OOO
50O
105,350
616,000
365,000
110,000
88,000
10,000
1,000
5,000
3,000
2,000
300
600
100
1,500
1,202,500
FINES & PENALTIES
3401 Traffic & Ordinance Violation
3404 Dog/Cat Impound
* TOTAL FINES & PENALTIES
28,106
4,714
32,820
35,000
4,000
39,000
35,000
4,000
39,000
CITY OF CHANHASSEN
2003 BUDGET
REVENUE
7/23/02 Estimate
101 General Fund
IACCOUNT DESCRIPTION
INTERGOVERNMENTAL REVENUE
3502 M.S.A. Maint. & Constr.
3509 Other Shared Taxes
3510 Grants-State
* TOTAL INTERGOVERNMENTAL REV
2002
ACTUAL
33,555
115,580
40,100
189,235
20O3
BUDGET
33,600
108,000
40,000
181,600
2004
BUDGET
33,600
108,000
40,000
181,600
CHARGES FOR CURRENT SERVICES
3601
3602
3603
3604
3605
3613
3614
3619
3629
3631
3633
3634
3635
3636
3637
3638
3639
3649
Sale of Documents
Use & Variance Permits
Rezoning Fees
Assessment Searches
Plat Recording Fees
Misc.-General Government
Admin. Charge-2% Constr.
Investment Management Fee
Misc.-Public Safety
Recreation Center
Park Equipment Rental
Park Facility Usage Fee
Watercraft Rental
Self-Supporting Programs
Senior Programs
Food Concessions
Misc.-Park & Rec.
Misc.-Public Works
TOTAL CURRENT SERVICES
1,928
16,432
5O
540
9,345
3,884
78,903
65,000
6,916
177,098
138
9,336
3,661
178,126
11,780
9,837
714
5,838
579,526
4,000
23,000
1,000
7OO
6,000
59,000
40,000
65,000
5,000
207,500
150
15,500
4,000
147,000
30,000
16,000
800
2,000
626,650
4,000
23,000
1,000
70O
6,000
59,000
40,000
65,000
5,000
207,500
150
15,500
4,000
147,000
30,000
16,000
800
2,000
626,650
OTHER REVENUE
3801
3802
3803
3807
3808
3812
3816
3818
3820
3829
3903
Interest Earnings 130,893 170,000 130,000
Equipment Rental & Sale 71,591 30,000 30,000
Building Rental 16,108
Donations 35,710 15,000 15,000
Ins. Recoveries & Reimburse 2,314 5,000 5,000
Contractor Verification 2,500
SAC Retainer 5,280 5,000 5,000
Sur-Tax Retainer 838 1,500 1,500
Misc. Other Revenue 207 5,000 5,000
Interest/Penalties-Other 500 500
Refunds/Reimbursements 26,772 6,000 6,000
TOTAL OTHER REVENUE 289,713 240,500 198,000
** TOTAL GENERAL FUND REVENUE 8,077,611 8,908,635 8,671,426
Transfers In
Total 8,077,611 8,908,635 8,671,426
CITY OF CHANHASSEN
2OO4 BUDGET
Expenditures
Personal Materials & Contractual
Services Supplies Services
Capital
Outlay
Total
2OO3
Total
%
Change
GENERAL GOVERNMENT
1110 Legislative
1120 Administration
1130 Finance
1140 Legal
1150 Assessing
1160 MIS
1170 City Hall
1180 Elections
1190 Library Building
TOTAL
34,200 200 104,800
375,381 500 52,700 500
186,000 1,000 92,350 2,500
110,000
70,100
144,016 24,500 96,450
61,111 41,400 328,200 500
24,250 7,500
61,500
824,958 67,600 923,600 3,500
139,200
429,081
281,850
110,000
70,100
264,966
431,211
31,750
61,500
1,819,658
139,370
388,500
282,150
110,000
70,100
279,560
398,100
0
34,000
1,701,780
-0.12%
10.45%
-0.11%
0.00%
0.00%
-5.22%
8.32%
80.88%
6.93%
LAW ENFORCEMENT
1210 Law Enforcement
1220 Fire
1260 CSO
TOTAL
66,368 1,015,000
492,754 37,579 103,895
43,066 4,550 11,050
602,188 42,129 1,129,945
1,081,368
634,228
58,666
1,774,262
1,077,800
647,000
60,700
1,785,500
0.33%
-1.97%
-3.35%
-0.63%
PUBLIC WORKS
1310 Engineering 441,431 1,800 553,010 250
1320 Street Maintenance 580,197 167,850 37,270 1,250
1350 Street Lighting 1,500 231,800
1370 Vehicle Maintenance 235,671 78,200 53,800 6,000
TOTAL 1,257,299 249,350 875,880 7,500
996,491
786,567
233,300
373,671
2,390,029
998,710
758,570
261,300
374,500
2,393,080
-0.22%
3.69%
-10.72%
-0.22%
-0.13%
COMMUNITY DEVELOPMENT
1410 Planning Commission
1420 Planning Administration
1430 Senior Commission
1250 Building Inspection
* TOTAL
150 2,950
299,294 700 14,125
17,180 220 1,050
709,613 7,800 26,400
1,026,087 8,870 44,525
3,100
314,119
18,450
743,813
1,079,482
3,700
320,525
18,450
743,9OO
1,086,575
-16.22%
-2.00%
0.00%
-0.01%
-0.65%
PARKS & RECREATION
1510 Park & Rec. Commission 125 2,100
1520 Park Administration 98,213 1,000 12,000
1530 Recreation Center 194,363 13,350 35,800
1540 Lake Ann 10,975 9,340 42,825
1550 Park Maintenance 580,295 87,300 109,805
1560 Senior Center 30,586 3,664 10,775
1600 Recreation Programs 143,811 13,408 70,175
1700 Self-Supporting Programs 29,257 8,635 77,303
TOTAL 1,087,500I 136,822 I 360,783
Transfer to Debt Service
TOTAL GENERAL FUND
Total Revenue
Deficit
3,000
I 3,0001
4,798,032 504,771 3,334,733 14,000
2,225
111,213
243,513
63,140
780,400
45,025
227,394
115,195
1,588,105
300,000
8,951,536
8,671,426
280,110
2,225
111,300
243,65O
65,440
8O9,4OO
45,025
239,105
123,155
1,639,300
300,000
8,906,235
8,906,635
(400)
0.00%
-0.08%
-0.06%
-3.51%
-3.58%
0.00%
-4.90%
-6.46%
-3.12%
0.00%
0.51%
-2.64%
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MINNESOTA' REVENUE
July 17, 2003
CHANHASSEN CITY OF
CITY ADMINISTRATOR
CITY HALL 7700 MARKET BLVD
BOX 147
CHANHASSEN, MN 55317 0147
TO: ALL CITY CLERKS/ADMINISTRATORS
RE: CERTIFICATION OF CY 2003 LGA AND MARKET VALUE CREDIT
REDUCTIONS
Following is the amount of local government aid (LGA) your city was scheduled to receive in
CY 2003, the amount of the CY 2003 LGA reduction (per 1st Special Session Laws 2003,
Chapter 21, Article 5, Section 12), and the net amount of LGA payable in CY 2003.
1. CY 2003 LGA: $ 20,475
2. CY 2003 LGA REDUCTION: $ 20,475
3. CY 2003 NET LGA (1-2): $ 0
Following is the amount of market value credit your city is scheduled to receive in CY 2003, the
amount of the market value credit reduction (per 1 st Special Session Laws 2003, Chapter 21,
Article 5, Section 12), and the net amount of market value credit payable in CY 2003 (half of
which will be paid in October 2003 and half in December 2003). NOTE: the amount of market
value credit includes real and personal residential and ag property only. It does not include
manufactured home market value credit.
4. CY 2003 MARKET VALUE CREDIT:
5. CY 2003 MARKET VALUE CREDIT REDUCTION:
6. CY 2003 NET MARKET VALUE CREDIT (4-5):
$ 298,734
$ 298,734
$ 0
Further information regarding 2003 LGA and market value credit reductions may be found at
the Department of Revenue website: www.taxes.state.mn.us. If you have any further questions
regarding 2003 aid and credit reductions, please contact Shawn Wink at (651) 296-3394.
Property' Tax Division
Mail Station 3345
St. Paul, MN 55146-3345
ret: 651-296-3394
Fax: 651-29%2166
Call 711 for Minnesota Relay
An equal opportunity employer
MINNESOTA' REVENUE
Payable 2004 Overall Levy Limitation Notice
August 15, 2003
CHANHASSEN CITY OF
CITY ADMINISTRATOR
CITY HALL 7700 MARKET BLVD
BOX 147
CHANHASSEN, MN 553170147
The payable 2004 overall levy limitation for your city is:
$ 6,657,060
The following is a listing of the factors used in determining your city's payable 2004
overall levy limitation. See the enclosed letter for an explanation of these factors and for
additional information concerning your county's overall levy limit.
2.
3.
4.
5.
6.
7.
8.
Adjusted Levy Limit Base for Payable 2003:
Payable 2003 Unused Levy Authority:
2003 Transit Property Tax Replacement Aid:
Levy
2003
2003
2003
2003
Limit Base for Payable 2004 (1-2-3):
Certified Local Government Aid Before Reductions:
Existing Low Income Housing Aid:
New Construction Low Income Housing Aid:
City Aid Total (5+6+7):
9. 2004 Certified Local Government Aid Including Transition Aid:
10.40 Percent of 2004 Aid Loss ((8-9)*.40):
11. 2004 Market Value Credit Reduction:
12.60 Percent of 2004 Market Value Credit Reduction (11'.60):
13. Adjusted Levy Limit Base for Payable 2004 ( 4-10+12):
14. New Net Tax Capacity-Based Referendum Levies:
15. 2004 Property Tax Aids
a. 2004 Local Government Aid Including Transition Aid:
b. 2004 Estimated Taconite Aids:
c. 2004 Estimated Wind Energy Tax:
d. Total (a + b + c ):
16. Adjustment for 2003 Local Tax Rate Excess Tax Increment Taxes:
17. Payable 2004 Overall Levy Limitation (13 + 14 - 15d - 16):
$ 7,124,728
$ 638,718
$
$ 6,486,010
$ 20,475
$
$
$ 20,475
$
$ 8,190
$ 298,734
$ 179,240
$ 6,657,060
$
6,657,060
Property Tax Division
Mail Station 3340
St. Paul, MN 55146-3340
An equal opportunity employer
lTD
Tel: 651-296-3394
Fax: 651-297-2166
Call 711 for Minnesota Relay
MINNESOTA. REVENUE
August 15, 2003
To: Counties and Cities over 2,500 Population
Re: (1) Payable 2004 Overall Levy Limitation Provisions
(2) Payable 2004 PT Form 280 and Instructions
(3) Overall Levy Limitations Calendar for Payable 2004
All counties and all cities over 2,500 population are subject to the overall levy limitation
for the taxes payable year 2004 (M.S. 275.70 - 275.74). The following sections describe
the overall levy limitation determination, the allowable special levies, and the calendar
for the overall levy limitation law.
Payable 2004 Overall Levy Limitation
The Payable 2004 Overall Levy Limitation Notice for your county or levy limit city
shows how your county's or city's levy limit was detennined, and the Payable 2004
Overall Levy Limitation Explanation explains the factors used in calculating your
county's or city's payable 2004 overall levy limitation.
Consolidations, Annexations, Transfers of Function
The'overall levy limitation law provides for special levy limit adjustments for
consolidations, mmexations, and transfers of governmental functions that are effective on
or before June 30 of the levy year. Specifically, these include the following adjustments:
If all of the area included in two or more local governmental units are consolidated or
merged into one single governmental unit, the levy limit base of the resulting
governmental unit in the first levy year that the consolidation is effective is equal to
the highest tax rate of any of the merging govermnental units for the previous levy
year multiplied by the total taxable net tax capacity of the merging governmental
units for the previous levy year, minus the sum of their special levies for the previous
levy year.
Continued...
ProperO; Tax Division
Mail Station 3340
St. Paul, MN 55146-3340
An equal opportunity employer
~1.. 651-296-3394
F~.. 651-297-2166
Call711forMinnesota Relay
limitation. Any additional levies approved by the voters in 2003 at a referendum held on
or prior to November 4, 2003 must be reported to the Department of Revenue on or
before November 30, 2003.
Payable 2004 PT Form 280 and Instructions
The Payable 2004 PT Form 280 and Payable 2004 PT Form 280 Instructions are
enclosed. This is the form and the instructions for claiming the special levies that are
authorized outside of (in addition to) your county's or city's payable 2004 overall levy
limitation. Please read the Form 280 and Form 280 Instructions carefully before
completing the Form 280.
Under the overall levy limitation law, all special levy claims must be pre-approved by the
Department of Revenue. The Department's decision on special levies approved (whether
in the amount claimed or at a reduced level) or denied is final. No county or levy limit
city will be allowed to levy more than the sum of its levy limitation and approved special
levies. If a final levy certified to the county auditor exceeds the sum of the levy
limitation plus approved special levies, the county auditor must reduce the certified final
levy to the sum of the levy limitation plus approved special levies.
The Payable 2004 PT Form 280 must be completed and submitted to the Department of
Revenue on or before September 30, 2003. The Department of Revenue will review the
special levy claims and report back to the county or levy limit city by December 10, 2003
the amount of the approved special levies. The Department of Revenue will also certify
to the county auditors, on or before December 29, 2003, the sum of the levy limit and the
approved special levies for the county and for each levy limit city within the county.
Overall Levy Limitations Calendar for the Taxes Payable Year 2004
These are deadlines under the overall levy limitation law for levy year 2003, taxes
payable 2004:
Deadlines in the Law
Action Required
On or Before September 1,
2003
The Department of Revenue certifies the payable
2004 overall levy limitation to each county
govenmaent and to each city over 2,500 population
(levy limit city).
On or Before September 30,
2003
The counties and levy limit cities send their
completed Payable 2004 PT Forms 280 to the
Department of Revenue, claiming their special levies
for payable 2004.
3
MINNESOTA. REVENUE
August 15, 2003
To: Finance Officials of Cities Over 2,500 Population
Re: Payable 2004 Overall Levy Limitation
Enclosed is the Payable 2004 Overall Levy Limitation Notice for your city. The factors
involved in the calculation of your city's payable 2004 overall levy limitation are shown
on the notice. The following is an explanation of the calculation factors.
Line 1 -- Adjusted Levy Limit Base for Payable 2003: This amount is from line 8 of
your city's "Payable 2003 Overall Levy Limitation Notice" that you received in 2002.
Line 2 - Payable 2003 Unused Levy Authority: This is the amount your city levied
below its overall levy limit. This figure represents only the unused levy amount
attributed to your city's overall levy limit. It does not reflect the unused levy amount
attributed to special levies.
Line 3 - 2003 Transit Property Tax Replacement Aid: Line 3 is the total amount of
transit property tax replacement aid your city is scheduled to receive in 2003.
Line 4 - Levy Limit Base for Payable 2004: This is the Adjusted Levy Limit Base for
Payable 2003 (Line 1) minus payable 2003 unused levy authority (Line 2) minus 2003
transit property tax replacement aid (Line 3).
Line 5 - 2003 Local Government Aid: Line 5 is the total amount of local government
aid your city was certified to receive before reductions in 2003.
Line 6 - 2003 Existing Low Income Housing Aid: Line 6 is the total amount of
existing Iow income housing aid your city was certified to receive in 2003. Existing low
income housing aid is repealed beginning with taxes payable 2004.
Line 7 - 2003 New Construction Low Income Housing Aid: Line 7 is the total amount
of new construction low income housing aid your city was certified to receive in 2003.
New construction low income housing aid is repealed beginning with taxes payable 2004.
Line 8 - 2003 City Aid Total:
(Line 5 + Line 6 + Line 7).
Line 8 is the sum of your 2003 city aids before reductions
Continued...
Property Tax Division
Mail Station 3340
St. Paul, MN 55146-3340
An equal opportunity employer
~t.- 651-296-3394
?~.. 651-297-2166
Call711forMinnesota Relay
Line 16 -Adjustment for 2003 Local Tax Rate Excess Tax Increment Taxes: M.S.
469.177, Subd. 9 provides that a tax increment (TW) district does not get to keep the
portion of tax increments that are based on an increase in the total local tax rate over the
total rate that existed for the year in which the original local tax rates for the TIF district
were certified. These local tax rate excess tax increment taxes are to be distributed to the
county, the city, and the school district (but not special taxing districts) based on their
respective percentages of the total local tax rate increase. This statute further provides
that the amount distributed to the county, the city, or the school district is to be deducted
in determining its levy limitation for the next taxes payable year. The amount shown is
the increase (if any) in your city's local tax rate excess tax increment taxes for payable
2003 over payable 2000. It is presumed that your city's payable 2001 property tax levy
was reduced by its payable 2000 local tax rate excess tax increment taxes.
Line 17 - Payable 2004 Overall Levy Limitation: This is your city's Adjusted Levy
Limit Base for Payable 2004 (Line 13), plus your city's New Net Tax Capacity-Based
Referendum Levies, if any (Line 14), minus your county's 2004 Property Tax Aids (Line
1 Sd), and minus the Adjustment for 2003 Local Tax Rate Excess Tax Increment Taxes, if
any (Line 16). This is the most that your city may levy for the taxes payable year 2004
for all purposes except special levies and special assessments.
Please note: If a city has a market value credit reduction for 2004 a portion of the city's ~'Nx
levy, equal to its 2004 market value credit reduction, will not be collected. For example: ~
If a city has a final levy limit on line 17 of $10,000 and a 2004 market value credit ~
reduction of $1,000 on line 11 and the city opts to levy to its maximum overall levy limit I
of $10,000 it will only collect $9,000 of the levy due to the $1,000 market value credit//
reduction .........
If you have any questions concerning this letter or the enclosed Payable 2004 Overall
Levy Limitation Notice, please contact me at (651) 296-3394.
Sincerely,
Shawn Wink
Research Analysis Specialist
Shawn.wink _(~,state.mn. us
Enclosure