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Home My WebLink AboutCC RES 01-075 A RESOLUTION SETTING THE CITY OF ST. ANTHONY PROPOSED 2002 TAX LEVY AND BUDGET IN COMPLIANCE WITH THE TRUTH IN TAXATION ACT Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 104744 Box: 31 Folder: RES 2001 Document: CC RES 03-075 A RESOLUTION SETTING THE CIN OF ST. ANTHONY PROPOSED 2002 TAX LEVY AND BUDGET IN COMPLIANCE WITH THE TRUTH IN TAXATION ACT CITY OF ST ANTHONY • RESOLUTION#01-075 F A RESOLUTION SETTING THE CITY OF ST. ANTHONY PROPOSED 2002 TAX LEVY AND BUDGET IN COMPLIANCE WITH THE TRUTH IN TAXATION ACT WHEREAS, State Law requires that the City of St. Anthony provide Hennepin and Ramsey Counties with a proposed certified 2002 tax levy and budget; and WHEREAS, the City Council reviewed the proposed 2002 budget at its August 14, 2002, council meeting; and WHEREAS, the State Legislature restructured the property tax system and eliminated HACA aid to the City of St. Anthony; and WHEREAS, the furnishing of this proposed tax levy and budget is made contingent upon any revisions being allowed if the current law is modified. WHEREAS, levy limits have been imposed on all City Governments; and WHEREAS, the information required for the City Council to determine a definitive tax levy • will be determined when the City of St. Anthony holds its public hearing; and and NOW,THEREFORE,BE IT RESOLVED that: 1) The collectible 2002 proposed property tax levy is: Property Tax Levy Limit $2,199,967 Road Improvement Levy $ 342,757 Housing&Redevelopment Authority Levy $ 55,500 Tax Abatement Levy - Central Park Bonds $ 29,642 PERA Rate Increase Levy $ 7,500 Total 2002 Proposed Tax Levy $2,635,366 2) The 2002 General Fund Proposed Budget totals$3,626,500 Adopted this 2`F day of , 20 . or ATTEST: • City Clerk Reviewed for Administration: City Maniker • MEMORANDUM DATE: August 24, 2001 TO: Mike Morrison, City Manager FROM: Roger Larson,Finance Director ITEM: PROPOSED PROPERTY TAX LEVY At their August 14`s meeting,Council reviewed the proposed 2002 budget and tax levy. Based on those discussions, staff has prepared resolution #01-075 setting the City of St. Anthony's 2002 proposed tax levy. This year, the State Legislature made significant and sweeping changes to the property tax system. Some of the modifications included; restructuring of the class rates; eliminating HACA aid to cities; phasing out limited market value increases on property • valuations; and taking over the funding for public education. The State has calculated that the changes made to the property tax system will provide property tax relief statewide of approximately $900 million. On the average, it is anticipated that most property owners should experience a 20% reduction in their overall taxes. As we discussed with Council, the sweeping changes made by the Legislature and the elimination of HACA aid, make it difficult to compare this year's levy to last years levy. A summary of last years' method and this year's calculation is as follows: 2001 2002 Property Tax Levy: $1,763,475 $2,199,967 (Levy Limit)* LGA $ 147,079 $ 141,352 HACA 349,289 $ - 0 - $2,259,843 $2,341,319 Increase =$81,476 Percentage= 3.61% *The State has imposed levy limits for years 2002 and 2003. Included in the levy limit calculation is a provision for recovering the loss of HACA (the State anticipates cities • will levy back their loss in HACA). • Recommendation: Council approve resolution#01-075 which encompasses the following 2002 property tax levy: A General Fund property tax levy equal to the levy limit amount allowed by the State (available September Is). This number will be inserted in the resolution prior to the Mayor, City Clerk and City Manager signing. General Fund Levy Limit $2,199,967 Road Improvement Levy $ 342,757 HRA Administrative Levy $ 55,500 Tax Abatement Levy $ 29,642 PERA Rate Increase Levy 7,500 $2,635,366 • • MINNESOTA Department of Revenue Property Tax Division Mail Station 3340 St. Paul, MN 55146-3340 Phone (612) 296-3155 Fax(612)297-2166 • Payable 2002 Overall Levy Limitation Notice August 22, 2001 ST ANTHONY CITY OF CLERK-FINANCE DIRECTOR CITY HALL 3301 SILVER LAKE ROAD ST ANTHONY MN 55418 The payable 2002 overall levy limitation for your city is: $ 2,199,967 The following is a listing of the factors used in determining your city's payable 2002 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. Adjusted Levy Limit Base for Payable 2000: $ 2,168,857 2. Payable 2000 Matching Funds Special Levy: $ 3. Beginning Levy Limit Base for Payable 2002 (1 + 2): $ 2,168,857 4. Implicit Price Deflator Adjustment (March 2000/March 1999): 1.043041 5. Household Growth Adjustment a. 1998 Households: 3,896 b. 1999 Households: 3,901 • c. Ratio of 1999 to 1998 Households (b/a, but not less than 1.000): 1.001283 6. Adjustment for Pay' 2000 Market Value of New C/I Construction a. Payable 1999 Total Taxable Market Value: $ 353,614,300 b. Payable 2000 Market Value of New C/I Construction: $ 181,400 c. 50%of Line b (6b x 0.5): $ 90,700 d. Adjustment (1 +Ratio of 6c to 6a): 1.000256 7. Levy Limit Base Adjusted for Pay' 2001 Factors ( 3 x 4 x 5c x 6d): $ 2,265,689 8. Alternative Levy Limit Base for Payable 2001 (Detail on Page 2): $ 2,259,847 9. Effective Levy Limit Base for Payable 2001 (Greater of 7 or 8): $ 2,265,689 10. Payable 2001 Opt-Out City Transit Services Levy: $ 11. Levy Limit Base after Transit Services Levy Adj. (9— 10): $ 2,265,689 12. Implicit Price Deflator Adjustment (March 2001/March 2000): 1.033630 13. Household Growth Adjustment a. 1999 Households: 3,901 b. 2000 Households: 3,697 c. Ratio of 2000 to 1999 Households (b/a, but not less than 1.000): 1.000000 14. Adjustment for Pay' 2001 Market Value of New C/I Construction a. Payable 2000 Total Taxable Market Value: $ 383,067,100 b. Payable 2001 Market Value of New C/I Construction: $ 615,000 c. 50% of Line b (14b x 0.5): $ 307,500 d. Adjustment (1 +Ratio of 14c to 14a): 1.000803 • Cont... An equal opportunity employer TTY/TDD: (6/2)215-0069 15. Adjusted Levy Limit Base for Payable 2002 (11 x 12 x 13c x 14d): $ 2,343,765 • 16. New Net Tax Capacity-Based Referendum Levies: $ 17. 2002 Property Tax Aids a. 2002 Local Government Aid (LGA): $ 141,265 b. 2002 Estimated Taconite Aids: $ c. 2002 Existing Low Income Housing Aid: $ d. 2002 New Construction Low Income Housing Aid: $ e. 2002 Transit Property Tax Replacement Aid: $ f. Total (a+b+ c +d+ e): $ 141,265 18. Adjustment for 2001 Local Tax Rate Excess Tax Increment Taxes: $ 2,533 19. Payable 2002 Overall Levy Limitation(15 + 16— 17f- 18): $ 2,199,967 Detail of Alternative Levy Limit Base Calculation (for Line 8 Above): 1. Payable 2001 Total Certified Levy: $ 2,035,664 2. Payable 2001 Debt Special Levies a. Bonded Indebtedness: $ 272,189 b. Certificates of Indebtedness: $ c. Bonds of Another Local Unit of Government: $ d. Principal and Interest on Armory Bonds: $ e. Total Debt Special Levies (a+b + c + d): $ 272,189 3. Payable 2001 Market Value Based Referendum Levies: $ • 4. Payable 2001 Natural Disasters Special Levy: $ 5. Pay' 2001 Levy to Correct for Errors in Pay' 2000 Cert. Levy: $ 6. Payable 2001 Economic Development Tax Abatement Levies: $ 7. Payable 2001 Levy to Repay State or Federal Loan: $ 8. Total Payable 2001 Special Levies Reported (2e+3+4+5+6+7): $ 272,189 9. 2001 Property Tax Aids a. 2001 Certified Local Government Aid(LGA): $ 147,079 b. 2001 Cert. Homestead and Agricultural Credit Aid (HACA): $ 349,293 c. 2001 Taconite Aids: $ d. 2001 Certified Existing Low Income Housing Aid: $ e. 2001 Certified New Construction Low Income Housing Aid: $ f. Total (a+b+ c +d+ e): $ 496,372 10. Alternative Levy Limit Base for Payable 2001 (1 — 8 + 9f) (To Line 8 on Page 1): $ 2,259,847 • 2