City of Park Rapids Truth in Taxation 2020 Presented December 10, - - PowerPoint PPT Presentation

City of Park Rapids Truth in Taxation 2020

Presented December 10, 2019

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Budget Process

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Finance puts together numbers to show how we are trending for the current year along with the actual numbers from the previous two-three years.

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Department Heads look at the numbers, ask questions if needed, and record their estimated numbers for the next year.

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Salaries are calculated at 2.5% - negotiations are in progress with Unions. MN Teamsters (Public Works) contract has been ratified.

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Insurance is based off League of MN Cities estimated percentages for 2020. (2-3%)

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Department Heads present budget to Finance Committee and answer questions.

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The Council held a workshop in September and discussed the budget with the Finance Committee and Department Heads explaining different line items.

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Finance Committee met again in November to get more justifications and questions answered.

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City Council approved the numbers to be used for the Truth in Taxation in November with the understanding they can still make changes as long as they don’t go over the amount approved in September for the preliminary levy.

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The City holds a Truth in Taxation Hearing and the City Council must adopt the general fund budget at their December 10, 2019.

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The budget is reported to the State.

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Levy - Summary

2019 2020

Increase/ (Decrease) Increase/ (Decrease)

General Fund 1,956,893 $ 2,063,286 $ 106,393 $ 5.44% Bonds/Debt Service 711,505 $ 722,327 $ 10,822 $ 1.52% Tax Abatement 4,500 $ (4,500) $ Total 2,672,898 $ 2,785,613 $ 112,715 $ 4.22%

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Bond Summary

3/25/2020 ‹#› Tax Levy Summary 2019 2020 2021 2022 2023 2024 2025 $1,390,000 (Portion) 2010c GO Wastewtr & Impr Refund Bond Crossover $52,000 $0 $2,980,000 General Obligation Bonds of 2012a – Hwy 34, South Central, North Main Sewer, Pleasant $170,000 $175,000 $180,000 $185,000 $190,000 $195,000 $200,000 $3,845,000 GO & Refunding bond 2015 (Refunding part in place of 2008 GO) Edmond Drive, Hollinger, Bear Path, Eagle Drive, 2nd Street W, and 4th Street W $74,660 $76,248 $77,836 $79,424 $81,012 $0 $0 $3,845,000 GO & Refunding bond 2015 (Riverside Phase I & North Main overlay) $112,172 $112,374 $117,827 $117,924 $123,271 $128,133 $127,233 $4,075,000 GO Crossover Refunding Bond 2016a (took

• ver for 2010a in 2018) Southwest Project

$76,942 $87,430 $88,168 $88,029 $87,535 $87,041 $91,797 $4,075,000 GO Crossover Refunding Bond 2016a (took

• ver for 2010b in 2018) Main Ave

$225,732 $231,275 $236,750 $240,283 $238,461 $247,139 $250,356 $1,110,000 GO Impr Bond 2019a Hwy 71 project $40,000 $40,000 $40,000 $40,000 $44,000 $44,000 Current Bond Levy Schedule (based on bond amortization) $711,505 $722,327 $740,580 $750,660 $760,279 $701,313 $713,386

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Levy vs Your Property Taxes

• The value and classification (or type) of your property are

used to determine your share of the levy.

• The City contracts with a licensed Assessor who looks at

the City properties at a minimum of once every 5 years. The Assessor assigns property tax classifications based on property use. (Homestead, Apartment, Commercial, etc.)

• The County enters the information into a database to

calculate values based on rates & factors applied by the Assessor.

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Levy vs Your Property Taxes (cont)

• Each classification is taxed at a different percentage of its
• value. These classification rates are set by State Law.

*They are not set by City or County Officials*

• In order to appeal any of the above information, you

would need to attend the “Local Board of Appeal & Equalization”. The date, time, and location is stated on your “Notices of Valuation & Classification” in the spring.

More Data on the Hubbard County Website / Assessor Page and www.revenue.state.mn.us Property Tax Fact Sheet 1 – Understanding Property Taxes

3/25/2020 ‹#› Property Tax-Levy $2,099,786.00 60% LGA, $553,279.00 , 16% Other Revenues, $839,261.58 , 24%

City of Park Rapids General Fund - 2020 Revenues $3,492,327

Property Tax- Levy LGA Other Revenues

Other Revenues: Franchise Fees License/Permits Fees/Fines

Local Government Aid (LGA) Overview

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2020 is most comparable with 2001 in LGA 1995 $ 449,565 2008 $ 414,813 1996 $ 459,244 2009 $ 445,598 1997 $ 475,340 2010 $ 314,126 1998 $ 474,360 2011 $ 314,126 1999 $ 499,321 2012 $ 314,126 2000 $ 498,999 2013 $ 314,126 2001 $ 513,374 2014 $ 459,947 2002 $ 688,836 2015 $ 474,922 2003 $ 581,407 2016 $ 477,864 2004 $ 533,100 2017 $ 479,398 2005 $ 563,630 2018 $ 495,215 2006 $ 654,415 2019 $ 496,388 2007 $ 509,399 2020 $ 553,279

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$449,565 $459,244 $475,340 $474,360 $499,321 $498,999 $513,374 $688,836 $581,407 $533,100 $563,630 $654,415 $509,399 $414,813 $445,598 $314,126 $314,126 $314,126 $314,126 $459,947 $474,922 $477,864 $479,398 $495,215 $496,388 $553,279 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

LOCAL GOVERNMENT AID OVERVIEW

General Fund Expenditures (Categories) Total Budget $3,492,327

3/25/2020 ‹#› Public Safety, $1,729,612, 49% Public Works, $623,734, 18% Culture, $247,113, 7% Community Dev, $69,483, 2% General Gov't, $822,385, 24% Public Safety Public Works Culture Community Dev General Gov't

3/25/2020 ‹#› $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 Public Safety Public Works Culture Community Dev General Gov't 2017 Actual Amount $1,442,339 $574,464 $217,475 $77,612 $881,846 2018 Actual Amount $1,544,560 $614,328 $285,962 $47,482 $788,409 2019 Adopted Budget $1,575,891 $611,333 $232,665 $68,894 $820,451 2020 Proposed Budget $1,729,612 $623,734 $247,113 $69,483 $822,385

City of Park Rapids General Fund Expenditures Yearly Comparison by Categories 2017 Actual through 2020 Proposed

General Fund Public Safety Expenditures - $1,729,611

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Police, $1,349,806 , 78% Fire, $284,695 , 16% Building Inspections, $78,675 , 5% Rental Inspections, $14,835 , 1% Plumbing Inspections, $1,600 , 0% Police Fire Building Inspections Rental Inspections Plumbing Inspections

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General Fund Public Works Expenditures - $623,734

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Streets and Hwys, $446,883 , 72% Street Lighting, $94,209 , 15% Sidewalks & Crosswalks, $14,997 , 2% Ice Snow, $67,645 , 11% Streets and Hwys Street Lighting Sidewalks & Crosswalks Ice Snow

3/25/2020 ‹#› $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 Streets and Hwys Street Lighting Sidewalks & Crosswalks Ice Snow 2017 Actual Amount $424,426 $87,693 $9,844 $39,066 2018 Actual Amount $449,567 $91,171 $11,012 $49,141 2019 Adopted Budget $438,314 $101,371 $14,120 $57,528 2020 Proposed Budget $446,883 $94,209 $14,997 $67,645

Public Works (Category) Expenses

General Fund Culture Expenditures – $247,114

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Library, $106,401 , 43% Parks, $140,713 , 57% Library Parks

3/25/2020 ‹#› $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Library Parks 2017 Actual Amount $89,312 $128,163 2018 Actual Amount $97,961 $188,002 2019 Adopted Budget $100,375 $132,289 2020 Proposed Budget $106,401 $140,713

Culture Expenses (Category)

General Fund Community Development Expenditures - $69,483

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Natural Resources, $21,483 , 31%

• Econ. Dev., $48,000 , 69%

Natural Resources

• Econ. Dev.

3/25/2020 ‹#› $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Natural Resources

• Econ. Dev.

2017 Actual Amount $15,181 $62,430 2018 Actual Amount $7,482 $40,000 2019 Adopted Budget $20,894 $48,000 2020 Proposed Budget $21,483 $48,000

Community Development (Category) Expenses

General Fund General Government Expenditures – $822,386

3/25/2020 ‹#› Council, $31,766 , 4% Administration, $345,677 , 42% Elections, $8,243 , 1% Attorney, $84,142 , 10%

• Gen. Gov't Bldg, $57,709 , 7%

Assessing, $44,000 , 5% Planning & Zoning, $148,749 , 18% Contractual Services, $12,500 , 2% Unallocated Expenses, $65,000 , 8% Transit, $24,600 , 3%

3/25/2020 ‹#› $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000

Council Administrati

• n

Elections Attorney

• Gen. Gov't

Bldg Assessing Planning & Zoning Contractual Services Unallocated Expenses Transit 2017 Actual Amount $32,068 $380,739 $0 $72,037 $49,318 $41,302 $148,703 $13,571 $120,708 $23,400 2018 Actual Amount $35,728 $306,456 $4,742 $82,721 $47,306 $41,995 $142,252 $10,584 $95,025 $21,600 2019 Adopted Budget $31,361 $348,682 $0 $75,000 $63,568 $44,000 $155,740 $12,500 $65,000 $24,600 2020 Proposed Budget $31,766 $345,677 $8,243 $84,142 $57,709 $44,000 $148,749 $12,500 $65,000 $24,600

General Government Expenses

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City Website:

ci.park-rapids.mn.us/ Departments Finance Truth in Taxation 2019 Presentation