2020 Budget Certification Hearing November 26, 2020 Minnesota - - PowerPoint PPT Presentation

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Nov 07, 2022 13 likes •196 views

Dodge County 2020 Budget Certification Hearing November 26, 2020 Minnesota Property Tax 101 Dodge County Officials Board Chair Rod Peterson Commissioner Rhonda Toquam Commissioner David Kenworthy Commissioner John Allen Commissioner Tim

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Dodge County 2020 Budget Certification Hearing November 26, 2020

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Minnesota Property Tax 101

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Dodge County Officials

Board Chair Rod Peterson Commissioner Rhonda Toquam Commissioner David Kenworthy Commissioner John Allen Commissioner Tim Tjosaas Finance Director Lisa Kramer Administrator Jim Elmquist

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1. Explain the 2020 proposed budget and tax levy
2. Examine factors impacting the budget
3. Provide you with an opportunity to ask questions

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Budget Process

Staff builds draft budget and presents to the county board. July-September, 2019 County Board sets maximum tax levy

therwise called a

preliminary budget certification. September 25, 2019 Residents receive preliminary property tax statements, “Truth in Taxations Statements”. October/November 2019

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Budget Process

Residents invited to comment on proposed budget and property taxes. November 26, 2020 County adopts 2020 budget along with property tax levy December 10, 2020 2020 budget in place for all departments. January 1, 2020

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Assessed Property Values

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Dodge County Budget History Budget History to Levy History

$23,812,623 $24,338,510 $27,316,685 $28,810,288 $28,441,035

$12,694,159 $13,111,277 $13,638,921 $14,187,523 $15,045,301

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2016 2017 2018 2019 2020

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2020 Budget by Fund

Fund 2019 2020 % Change Revenue $12,955,705 $12,971,968 2.3% EDA/HRA $30,715 $42,300 37.7% EQ $2,174,693 $2,281,470 4.9% Highway $9,404,085 $7,984,084

15.1%

Human Services $3,093,115 $3,774,230 22.0% G.O. Debt $1,151,975 $1,110,000

3.6%

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Where do the budget dollars go?

Revenue 46.6% Highway 28.3% Human Services 13.1% Debt 3.9% EQ 8.1%

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Tax Levy Calculation

2019 2020 Budget $28,810,288 $28,441,035 Revenues (-) $13,115,173 $12,365,914

Fund Balance (-)

Gross Levy ($658,066) $15,037,049 ($94,406) $15,980,715 CPA (-) ($849,526) ($935,414) Net Levy $14,187,523 $15,045,301 6.0%

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County Program Aid (CPA)

200 400 600 800 1000 2016 2017 2018 2019 2020

CPA for 2018 is $849,526

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What is driving the levy increase for 2019?

Personnel Costs Human Services Increases Capital Expenses

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Tax Capacity

Tax Capacity: The total valuation of property based on market value and class rates, on which property taxes are determined.

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5 10 15 20 25 30 35 2012 2013 2014 2015 2016 2017 2018 2019 2020

Tax Capacity In Millions

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Tax Capacity Tax Rate

County’s overall net levy divided by net tax capacity equals the County’s tax capacity tax rate.

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10 20 30 40 50 60 2013 2014 2015 2016 2017 2018 2019 2020

Tax Capacity Tax Rate

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Example Calculation of Property Taxes 2020 (Residential)

2019 Market Value (MV) $300,000 2020 MV 10% 2020 Value= $300,000 * 10% (MV) 2020 MV= $330,000 Homestead Exclusion= ($7,500) TMV = $330,000 – $7,500 Taxable Market Value (TMV) = $322,500 Tax Capacity= $322,500* Res. Tax Class Rate (1%) $3,225 Total Dodge County Taxes= $3,225* FY2020 Dodge County Tax Rate (47.987) Total 2020 Dodge County Taxes = $1,547.58