PROPERTY TAXES Property Taxes $209, Proposed 2017 Property Taxes $221, Change from %

Transcription

1 The purpose of Truth and Taxation is to discuss the proposed property tax levy for the taxes payable year 2018 and the proposed budget for the year This public hearing is held to discuss and seek public comment on the city s 2017 general fund budget and 2018 property tax levy. The City of Blackduck must certify its final payable 2018 property tax levy to the county auditor no later than December 29th, 2017 (MN Statute ). The following documentation outlines the following: 1. City of Blackduck 2018 Levy 2. LGA payment from the State of Minnesota 3. Tax Base for the City General Fund expenditures and revenue sources. Truth in Taxation Public Hearing Blackduck City Hall December 4 th, :15 P.M. Respectfully Submitted by: Christina Regas City of Blackduck Administrator The 2018 general fund budget does balance and it will need an increase in the property tax levy. Therefore the tax levy will remain as suggested in September in the amount of $221,400. PROPERTY TAXES 2016 Property Taxes $209, Proposed 2017 Property Taxes $221, Change from % 1 P a g e

2 LOCAL GOVERNMENT AID Local Government Aid (LGA) is a state aid to local governments. The LGA is manipulated by the Legislature annually. The following is list of the variables used to calculate the city s 2018 LGA certified amount. 1. Pre-housing units: the total number of housing units in your city that were constructed before 1940 according to the 2015 Federal Census. 2. Housing units : is the total number of housing units built between 1940 and Total housing units: the total number of all housing units in your city (both vacant and occupied). 4. Household Size: a city s average household size as reported by the State Demographer and Metropolitan Council. (City of Blackduck household estimate is 338 for April 1, 2016) 5. Number of Employees: the average number of annual employees from the quarterly census of employment from the Dept. of Employment & Economic Development. 6. Peak population decline: a city s population decline (if any) from its highest population in a decennial census from 1970 or later. 7. Tax Effort Rate: the net levy for all cities divided by the sum of the city net tax capacity for all cities. The tax effort rate is the same for all city calculations. 8. City Revenue Need: City revenue need is defined in three separate calculations based on population. (City of Blackduck population estimate is 789 for April 1, 2016) a. Small Cities: The formula for cities with a population less than 2,500 is: i (.367 x population over 100) The city revenue need for cities with a population less than 2,500 cannot be over $630 per capita. For cities with a sparsity adjustment, the city revenue need cannot be over $830 per capita. 9. Unmet Need: is the difference between (1) its city revenue need multiplied by its population, and (2) its city net tax capacity multiplied by the tax effort rate. 10. Formula Aid: (aid increase) for a city is equal to the difference between its current unmet need and its certified aid in the previous year, minus special adjustments, multiplied by the aid gap percentage. The following chart includes the history of LGA received by the City of Blackduck. Blackduck receives LGA in two equal payments on July 20 and December 26. The City of Blackduck is anticipating receiving $253,712 for the budget year LGA HISTORY % +/ Over 2017 $205, $239, $242, $244, $245, $253, % 2 P a g e

3 $27,398, $26,972, $26,450, $26,704, $26,333, $27,636, TAX BASE INFORMATION The property tax system is a continuous cycle, but it effectively begins with the estimation of property market values by local assessors. Assessors attempt to determine the approximate selling price of each parcel of property based on the current market conditions. Along with the market value determination, a property class is ascribed to each parcel of property based on the use of the property. The property classification system defines the tax capacity of each parcel as a percentage of each parcel s market value. The next step in calculating the tax burden for a parcel involves the determination of each local unit of government s property tax levy. The total tax capacity is computed by first aggregating the tax capacities of all parcels within the city, then the taxable tax capacity is used to determine the local tax rates. The city tax rate is computed by dividing the city levy (minus the fiscal disparities distribution levy, if applicable) by the taxable tax capacity. The sum of the tax rates for all taxing authorities that levy against a single property produces the total local tax rate. This total local tax rate is then used to determine the overall tax burden for each parcel of property by multiplying the parcel s tax capacity by the total local tax rate. The Estimated Market Value is Beltrami County Assessor s estimate of what property would be worth on the open market if sold. The most common factor that results in an increase in an individual parcel s tax is the change in the parcel s estimated market value. The market value is set on Jan. 2 of the year before taxes are payable. Below is a five year history of the City of Blackduck EMV (Estimated Market Value) & TMV (Taxable Market Value). As you can see below Pay 2018 the City of Blackduck EMV has increased (highest in six years). Estimated Market Value History Pay 2013 Percent +/- Pay 2014 Percent +/- EMV 2012 Over 2012 EMV 2013 Over 2013 $27,398, % $26,972, % Pay 2015 Percent +/- Pay 2016 Percent +/- EMV 2014 Over 2014 EMV 2015 Over 2015 $26,450, % $26,704, % Pay 2017 Percent +/- Pay 2018 Percent +/- EMV 2016 Over 2016 EMV 2017 Over 2017 $26,333, % $27,636, % Estimated Market Value 6 Year History $30,000, $25,000, $20,000, $15,000, $10,000, $5,000, $ P a g e

4 $22,497,800 $22,783,600 $21,919,200 $22,025,600 $22,179,100 $22,794,400 The Taxable Market Value is the Estimated Market Value less any credits (Veterans Credit, Market Value Exclusion Credit, Ag Credit, etc). When taxable market value decreases the tax burden to property owners will increase. Whenever we increase our market value (build a new home and/or a new business) the tax burden to property owners decreases. As you can see below in Pay 2018 the City of Blackduck TMV has increased (highest in six years). Taxable Market Value History Pay % +/- Pay % +/ Over Over 2013 $22,497, % $22,783, % Pay % +/- Pay % +/ Over Over 2015 $21,919, % $22,025, % Pay % +/- Pay % +/ Over Over 2017 $22,179, % $22,794, % Taxable Market Value 6 Year History $22,800, $22,600, $22,400, $22,200, $22,000, $21,800, $21,600, $21,400, It is important for Blackduck to increase its taxable market value. Promoting Blackduck a Great Place for Families to families that live in neighboring communities is crucial. Conversation should continue in 2018 to pursue housing development in the Wolden Addition. City officials should work to preserve its existing housing stock by educating home owners on accessible funds through programs like USDA Rural Development, MN Housing, Greater MN Housing, and Homes for All. Working to increase commercial property should also continue in 2018, by attracting new businesses with the City of Blackduck s Revolving Loan Funds to fill vacant business property. 4 P a g e

5 2018 General Fund Expenditures: Department: Amount: Council $10, City Administration $125, General Government & Bldgs. $20, Public Safety $284, Streets $126, Street Lighting $19, Parks $19, Library $21, Total: $627, General Fund Department Expense Allocation: 20.2% 3.0% 3.2% 3.4% 1.6% 45.4% 20.0% 3.2% Council City Administration General Government & Bldgs. Public Safety Streets Street Lighting Parks Library 5 P a g e

6 City of Blackduck 2018 General Fund Expenditures Account Description Budget Budget Budget General Government E Inter Fund Transfer $0.00 $0.00 $0.00 E Transfer to Cemetary Fund $2, $2, $2, E Transfer to Sewer Fund $0.00 $0.00 $0.00 E Intrafund Transfer $0.00 $0.00 $0.00 $2, $2, $2, Council E Full-Time Employees Regular $6, $6, $6, E PERA $0.00 $0.00 $0.00 E FICA $ $ $ E Computer Supplies $0.00 $0.00 $1, E Training and Instruction $ $ $ E Postage $50.00 $50.00 $0.00 E Travel Expenses $ $ $ E General Liability Ins $0.00 $0.00 $0.00 E Dues and Subscriptions $ $ $ E Bad Debt Expense $0.00 $0.00 $0.00 $8, $8, $10, City Administration E Full-Time Employees Regular $58, $62, $63, E Full-Time Employees Overtime $0.00 $0.00 $0.00 E Part-Time Employees $0.00 $0.00 $0.00 E PERA $4, $4, $4, E FICA $4, $4, $4, E Employer Paid Health $3, $4, $5, E Office Supplies (GENERAL) $1, $1, $1, E Computer Supplies $1, $1, $1, E Training and Instruction $1, $1, $1, E Operating Supplies $ $ $ E Professional Srvs (GENERAL) $0.00 $0.00 $0.00 E Auditing and Acct g Services $5, $5, $5, E Engineering Fees $0.00 $0.00 $0.00 E Legal Fees $1, $1, $1, E Other Professional Services $2, $2, $3, E Telephone $1, $1, $1, E Postage $ $ $ E Internet Access $1, $1, $1, E Travel Expenses $2, $2, $2, E Legal Notices Publishing $0.00 $50.00 $ E General Notices and Pub Info $ $1, $ E Ordinance Publication $ $ $ E Election Expense $1, $1, $1, E Workers Compensation $ $ $ E Unemployment Paid $0.00 $0.00 $0.00 E Dues and Subscriptions $1, $1, $1, P a g e

7 Account Description Budget Budget Budget E Bad Debt Expense $ $ $0.00 E Bank Service Charges $1, $1, $1, E Donations to Civic Org s $0.00 $0.00 $0.00 E Office Equip and Furnishings $ $ $ E Short-Term Debt Principal $2, $2, $2, E State Fire Aid $19, $19, $19, City Administration $115, $121, $125, Planning and Zoning E Full-Time Employees Regular $0.00 $0.00 $0.00 E Full-Time Employees Overtime $0.00 $0.00 $0.00 E Part-Time Employees $0.00 $0.00 $0.00 E PERA $0.00 $0.00 $0.00 E FICA $0.00 $0.00 $0.00 E Medicare $0.00 $0.00 $0.00 E Employer Paid Health $0.00 $0.00 $0.00 E Professional Srvs (GENERAL) $0.00 $0.00 $2, $0.00 $0.00 $2, General Govt Buildings/Plant E Electricity $8, $8, $8, E Operating Supplies $ $ $ E Cleaning Supplies $0.00 $0.00 $0.00 E Building Repair Supplies $ $ $ E General Liability Ins $ $ $ E Property Ins $ $ $ E Utility Services (GENERAL) $ $ $ E Repairs/Maint Buildings $1, $5, $2, E Buildings and Structures $0.00 $0.00 $3, $11, $15, $15, Police Administration E Full-Time Employees Regular $89, $85, $90, E Full-Time Employees Overtime $3, $1, $1, E Part-Time Employees $0.00 $5, $5, E School Resource Officer - $0.00 $0.00 $0.00 E PERA $14, $14, $15, E FICA $1, $1, $1, E Employer Paid Health $13, $15, $19, E Heating Fuel $1, $1, $1, E Electricity $3, $3, $2, E Training and Instruction $1, $2, $2, E Other Office Supplies $ $ $ E Operating Supplies $1, $1, $1, E Motor Fuels $9, $8, $8, E Lubricants and Additives $0.00 $0.00 $0.00 E Tires $1, $1, $1, E Building Repair Supplies $0.00 $0.00 $0.00 E Equipment $3, $3, $4, E Uniforms $1, $1, $1, E Medical Fees $0.00 $ $ E Telephone $1, $1, $1, E Postage $50.00 $50.00 $50.00 E Travel Expenses $ $ $ E General Liability Ins $4, $4, $4, E Property Ins $1, $1, $1, P a g e

8 Account Description Budget Budget Budget E Automotive Ins $1, $1, $1, E Workers Compensation $3, $3, $3, E Repairs/Maint Buildings $2, $2, $2, E Repairs/Maint $7, $7, $7, E Tower Lease $ $ $ E Depreciation $10, $10, $10, E Dues and Subscriptions $ $ $ E Towing Charges $ $ $ E Bad Debt Expense $0.00 $0.00 $0.00 E Motor Vehicles $0.00 $0.00 $0.00 E Other Equipment $0.00 $0.00 $0.00 E Inter Fund Transfer $0.00 $0.00 $0.00 E Intrafund Transfer $0.00 $0.00 $0.00 Police Administration $175, $178, $188, Fire Department E Part-Time Employees $13, $13, $13, E FICA $1, $1, $1, E Fire Pension Contributions $0.00 $0.00 $0.00 E Office Supplies (GENERAL) $ $ $ E Heating Fuel $2, $2, $2, E Electricity $7, $7, $5, E Computer Supplies $0.00 $0.00 $0.00 E Training and Instruction $3, $3, $2, E Operating Supplies $2, $2, $1, E Cleaning Supplies $75.00 $75.00 $0.00 E Motor Fuels $2, $2, $2, E Equipment Parts $1, $1, $1, E Tires $0.00 $0.00 $0.00 E Building Repair Supplies $0.00 $0.00 $0.00 E Uniforms $5, $5, $5, E Small Tools and Minor Equip $ $ $2, E Legal Fees $0.00 $0.00 $0.00 E Medical Fees $ $ $ E Management Fees $0.00 $0.00 $0.00 E Other Professional Services $0.00 $0.00 $0.00 E Telephone $ $ $ E Postage $ $ $ E Radio/Communications $1, $1, $3, E Travel Expenses $ $ $ E Legal Notices Publishing $0.00 $0.00 $0.00 E General Notices and Pub Info $50.00 $50.00 $50.00 E General Liability Ins $ $ $ E Property Ins $ $ $ E Automotive Ins $2, $2, $2, E Workers Compensation $6, $6, $6, E Unemployment Paid $0.00 $0.00 $ E Repairs/Maint Buildings $ $ $3, E Repairs/Maint $12, $12, $12, E Tower Lease $ $ $ E Depreciation $0.00 $0.00 $0.00 E Dues and Subscriptions $0.00 $0.00 $ E Bad Debt Expense $0.00 $0.00 $0.00 E Capital Outlay (GENERAL) $0.00 $0.00 $0.00 E Buildings and Structures $ $ $ E Motor Vehicles $0.00 $0.00 $0.00 E Other Equipment $1, $1, $1, P a g e

9 Account Description Budget Budget Budget E Transfer to General Fund $0.00 $0.00 $0.00 E Transfer to Fire Dept $30, $30, $30, E Intrafund Transfer $0.00 $0.00 $0.00 Fire Department $96, $96, $96, Hwys, Streets, & Roads E Full-Time Employees Regular $44, $45, $46, E Full-Time Employees Overtime $0.00 $0.00 $0.00 E Part-Time Employees $ $ $ E PERA $3, $3, $3, E FICA $3, $3, $3, E Employer Paid Health $5, $6, $8, E Unemployment Benefit $0.00 $0.00 $0.00 E Office Supplies (GENERAL) $50.00 $50.00 $50.00 E Heating Fuel $2, $2, $2, E Electricity $4, $4, $4, E Training and Instruction $0.00 $0.00 $0.00 E Operating Supplies $1, $1, $1, E Motor Fuels $13, $13, $8, E Lubricants and Additives $1, $1, $1, E Repair/Maint Supply $1, $1, $1, E Equipment Parts $ $ $ E Tires $1, $1, $1, E Building Repair Supplies $0.00 $0.00 $0.00 E Street Maint Materials $12, $12, $16, E Small Tools and Minor Equip $1, $1, $1, E Engineering Fees $ $ $ E Other Professional Services $0.00 $0.00 $0.00 E Telephone $1, $1, $1, E Postage $ $ $ E Travel Expenses $ $0.00 $0.00 E Legal Notices Publishing $0.00 $0.00 $0.00 E General Liability Ins $ $ $ E Property Ins $ $ $ E Automotive Ins $ $ $ E Workers Compensation $4, $3, $3, E Snow Removal $0.00 $0.00 $0.00 E Repairs & Maint Cont $0.00 $0.00 $0.00 E Repairs/Maint Buildings $ $ $ E Repairs/Maint $5, $5, $5, E Dues and Subscriptions $0.00 $0.00 $0.00 E Towing Charges $0.00 $0.00 $0.00 E Industrial Lane Assessment $1, $1, $1, E Improvements Other Than $0.00 $0.00 $0.00 E Motor Vehicles $0.00 $0.00 $8, E Other Equipment $0.00 $0.00 $0.00 E Debt Srv Bond Principal $0.00 $0.00 $0.00 E Interest $0.00 $0.00 $1, $112, $114, $126, Street Lighting E Electricity $14, $14, $13, E Operating Supplies $0.00 $7, $5, E Repair/Maint Supply $1, $1, $1, $15, $22, $19, P a g e

10 Parks Account Description Budget Budget Budget E Full-Time Employees Regular $2, $3, $3, E Full-Time Employees Overtime $0.00 $0.00 $0.00 E Part-Time Employees $1, $1, $1, E School Resource Officer - $0.00 $0.00 $0.00 E PERA $ $ $ E FICA $ $ $ E Employer Paid Health $ $ $ E Electricity $6, $6, $6, E Training and Instruction $0.00 $0.00 $0.00 E Operating Supplies $ $ $ E Cleaning Supplies $ $ $ E Motor Fuels $1, $1, $1, E Equipment Parts $0.00 $0.00 $0.00 E Landscaping Materials $ $ $ E Small Tools and Minor Equip $0.00 $0.00 $0.00 E Medical Fees $0.00 $0.00 $0.00 E General Liability Ins $ $ $ E Property Ins $2, $2, $2, E Workers Compensation $ $ $ E Repairs/Maint Buildings $1, $1, $1, E Miscellaneous (GENERAL) $0.00 $0.00 $0.00 E Improvements Other Than $0.00 $0.00 $0.00 $19, $19, $19, Libraries E Office Supplies (GENERAL) $0.00 $0.00 $0.00 E Electricity $2, $2, $2, E Operating Supplies $ $ $ E Cleaning Supplies $ $ $0.00 E Building Repair Supplies $ $ $ E Transportation (GENERAL) $0.00 $0.00 $0.00 E Travel Expenses $0.00 $0.00 $ E General Liability Ins $ $ $ E Property Ins $ $ $ E Utility Services (GENERAL) $ $ $ E Repairs/Maint Buildings $ $ $ E Repairs/Maint $0.00 $0.00 $0.00 E Automation Repair & Replace. $ $ $ E Dues and Subscriptions $15, $15, $15, $20, $21, $21, $577, $599, $627, P a g e

11 2018 General Fund Revenue Sources: Fund: Amount: LGA $253, Property Tax $170, Fire Protection $76, Fines & Forfeits $5, Police & Fire State Aids $34, Liquor Store Transfer $65, Charges for Service $8, Miscellaneous $14, Total: $627, General Fund Revenue Sources: 1.3% 2.3% 0.8% 5.4% 10.4% 40.4% LGA Property Tax 12.3% Fire Protection Fines & Forfeits Police & Fire State Aids 27.2% Liquor Store Transfer Charges for Service Miscellaneous 11 P a g e

12 CITY OF BLACKDUCK Revenue Budget for 2018 General Fund GENERAL FUND Account Description 2016 Budget 2017 Budget 2018 Budget R General Property Taxes $118, $155, $170, R Mobile Home Tax $ $ $ R Penalties and Interest DelTax $1, $1, $1, R Licenses and Permits $5, $5, $5, R Animal Licenses $ $ $ R Federal Grants and Aids $0.00 $0.00 $0.00 R CDBG $0.00 $0.00 $0.00 R State Grants and Aids $0.00 $0.00 $0.00 R Local Government Aid $244, $245, $253, R Market Value Credit-MH $0.00 $0.00 $0.00 R PERA AID $1, $1, $1, R Market Value Credit - Real $0.00 $0.00 $0.00 R Market Value Credit-TIF $0.00 $0.00 $0.00 R Market Value Credit-AG $0.00 $0.00 $0.00 R Police Training Reimbursement $0.00 $ $0.00 R State Police Aid $14, $14, $14, R State Fire Aid $19, $19, $19, R Other County Grants/Aid $80.00 $70.00 $70.00 R Charges for Services $18, $8, $8, R Zoning and Subdivision Fees $ $ $0.00 R Admin Charges to Other Funds $0.00 $0.00 $0.00 R Sale of Property $0.00 $0.00 $0.00 R Fire Protection Srvs $76, $76, $76, R Reservation Fees $0.00 $0.00 $0.00 R Fines and Forfeits $5, $5, $5, R Parking Fines $0.00 $0.00 $0.00 R Special Assessments $ $ $ R Penalties and Interest $0.00 $0.00 $0.00 R Miscellaneous Revenues $4, $4, $4, R Interest Earnings $ $ $ R Other Rents and Royalties $0.00 $0.00 $0.00 R Contributions and Donations $2, $2, $2, R Community Development Grants $0.00 $0.00 $0.00 R Reimbursements $ $ $ R Sales of General Fixed Assets $0.00 $0.00 $0.00 R Interfund Transfer $0.00 $0.00 $0.00 R Transfer from Other Fund $0.00 $0.00 $0.00 R Intrafund Transfer $0.00 $0.00 $0.00 R Transfer from Liquor Fund $65, $60, $65, R Transfer fm Debt Service Fund $0.00 $0.00 $0.00 R Proceeds-Gen Long-term Debt $0.00 $0.00 $0.00 R Insurance Proceeds $0.00 $0.00 $0.00 $577, $599, $627, P a g e