City of Park Rapids Truth in Taxation 2019 Presented December 11, - - PowerPoint PPT Presentation

City of Park Rapids Truth in Taxation 2019

Presented December 11, 2018

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Budget Process

 Finance puts together numbers to show how we are trending for the current year

along with the actual numbers from the previous two years.

 Department Heads look at the numbers, ask questions if needed, and record their

estimated numbers for the next year.

 Salaries are based off of Union Contracts negotiated for 2017-2019. (2% for 2019)  Insurance is based off League of MN Cities estimated percentages for 2019. (2-

6.5%)

 Finance Committee goes over the budget, asks questions, makes changes.  The preliminary budget goes on a Council Meeting in September for the entire

Council to have an opportunity to make any changes and ask questions.

 The City has the Truth in Taxation Hearing and the City Council must adopt the

budget at their December 11, 2018.

 The budget is reported to the State.

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Levy - Summary

2019 2018

Increase/ (Decrease) Increase/ (Decrease)

General Fund 1,956,893 $ 1,916,847 $ 40,046 $ 2.05% Bonds/Debt Service 711,505 $ 615,686 $ 95,819 $ 13.47% Tax Abatement 4,500 $ 4,500 $

• $

0.00% Total 2,672,898 $ 2,537,033 $ 135,865 $ 5.08%

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Bond Summary

6/12/2019 ‹#› Summary - Tax Levy 2018 2019 2020 2021 2022 2023 2024 $1,440,000 General Obligation Bonds of 2010a (refunded to 2016a takes over 2019) 51,000 $ 2016a 2016a 2016a 2016a 2016a 2016a $4,740,000 General Obligation Bonds of 2010b (refunded to 2016a takes over 2019) 173,000 $ 2016a 2016a 2016a 2016a 2016a 2016a $1,390,000 (Portion) 2010c GO Wastewtr & Impr Refund Bond Crossover 52,000 $ 52,000 $

• $

$2,980,000 General Obligation Bonds of 2012a 160,000 $ 170,000 $ 175,000 $ 180,000 $ 185,000 $ 190,000 $ 195,000 $ $3,845,000 GO & Refunding bond 2015 (Refunding part in place of 2008 GO) 73,072 $ 74,660 $ 76,248 $ 77,836 $ 79,424 $ 81,012 $

• $

$3,845,000 GO & Refunding bond 2015 (Riverside Phase I & North Main overlay) 106,615 $ 112,172 $ 112,374 $ 117,827 $ 117,924 $ 123,271 $ 128,133 $ $4,075,000 GO Crossover Refunding Bond 2016a (takes over for 2010a in 2018)

• $

76,942 $ 77,430 $ 83,168 $ 88,029 $ 87,535 $ 87,041 $ $4,075,000 GO Crossover Refunding Bond 2016a (takes over for 2010b in 2018)

• $

225,732 $ 231,275 $ 236,750 $ 240,283 $ 238,461 $ 247,139 $ * 1,835,000 GO Bonds of 2019 (numbers from Jessica-Hwy71-Ind. Pk Overlay) 79,849 $ 84,608 $ 84,115 $ 88,798 $ 88,009 $ * Enterprise funds pay their portion of Hwy71 project (22,992) $ (22,197) $ (21,919) $ (26,880) $ (26,431) $ Net bond levy for Hwy 71 project 56,857 $ 62,411 $ 62,196 $ 61,918 $ 61,578 $ Current Levy - No addt'l Projects besides Hwy 71 $ 615,686 $ 711,505 $ 729,184 $ 757,991 $ 772,856 $ 782,197 $ 718,890

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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

6/12/2019 ‹#› Property Tax-Levy $1,996,893.02 60% LGA, $496,388.00 , 15% Other Revenues, $815,951.74 , 25%

City of Park Rapids General Fund 2019 Revenues Total Budget = $3,309,233

Property Tax- Levy LGA Other Revenues

Other Revenues: Franchise Fees License/Permits Fees/Fines

Local Government Aid (LGA) Overview

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2019 is comparable with 2000 in LGA

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

Local Government Aid (LGA) Overview

6/12/2019 ‹#› 1995 $449,565 1999 $499,321 2002 $688,836 2006 $654,415 2008 $414,813 2010 $314,126 2013 $314,126 2018 $495,215 2019 $496,388 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000

General Fund Expenditures (Categories)

6/12/2019 ‹#› Public Safety, $1,575,891, 48% Public Works, $611,334, 18% Culture, $232,664, 7% Community Dev, $68,894, 2% General Gov't, $820,451, 25% Public Safety Public Works Culture Community Dev General Gov't

6/12/2019 ‹#› $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Public Safety Public Works Culture Community Dev General Gov't 2016 Actual Amount $1,421,003 $622,383 $229,965 $47,087 $767,035 2017 Actual Amount $1,442,339 $574,464 $217,475 $77,612 $881,846 2018 Adopted Budget $1,511,980 $649,740 $239,568 $63,761 $804,263 2019 Proposed Budget $1,575,891 $611,334 $232,664 $68,894 $820,451

City of Park Rapids General Fund Expenditures Yearly Comparison by Categories 2016 Actual through 2019 Proposed

General Fund Public Safety Expenditures - $1,575,891

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Police, $1,206,752 , 77% Fire, $274,277 , 17% Building Inspections, $78,675 , 5% Rental Inspections, $14,587 , 1% Plumbing Inspections, $1,600 , 0% Police Fire Building Inspections Rental Inspections Plumbing Inspections

6/12/2019 ‹#› $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Police Fire Building Inspections Rental Inspections Plumbing Inspections 2016 Actual Amount $1,071,284 $268,285 $66,385 $13,025 $2,024 2017 Actual Amount $1,074,956 $258,572 $93,009 $13,601 $2,201 2018 Adopted Budget $1,141,701 $279,824 $70,500 $17,856 $2,100 2019 Proposed Budget $1,206,752 $274,277 $78,675 $14,587 $1,600

Public Safety (Category) Expenses

General Fund Public Works Expenditures - $611,334

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Streets and Hwys, $438,315 , 72% Street Lighting, $101,371 , 17% Sidewalks & Crosswalks, $14,120 , 2% Ice Snow, $57,528 , 9% Streets and Hwys Street Lighting Sidewalks & Crosswalks Ice Snow

6/12/2019 ‹#› $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Streets and Hwys Street Lighting Sidewalks & Crosswalks Ice Snow 2016 Actual Amount $478,636 $99,864 $8,339 $35,544 2017 Actual Amount $424,426 $87,693 $9,844 $39,066 2018 Adopted Budget $479,819 $101,264 $15,136 $53,522 2019 Proposed Budget $438,315 $101,371 $14,120 $57,528

Public Works (Category) Expenses

General Fund Culture Expenditures – $232,664

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Library, $100,375 , 43% Parks, $132,289 , 57% Library Parks

6/12/2019 ‹#› $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 Library Parks 2016 Actual Amount $93,295 $136,670 2017 Actual Amount $89,312 $128,163 2018 Adopted Budget $103,266 $136,302 2019 Proposed Budget $100,375 $132,289

Culture Expenses (Category)

General Fund Community Development Expenditures - $68,894

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Natural Resources, $20,894 , 30%

• Econ. Dev., $48,000 , 70%

Natural Resources

• Econ. Dev.

6/12/2019 ‹#› $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Natural Resources

• Econ. Dev.

2016 Actual Amount $6,067 $41,020 2017 Actual Amount $15,181 $62,430 2018 Adopted Budget $23,761 $40,000 2019 Proposed Budget $20,894 $48,000

Community Development (Category) Expenses

General Fund General Government Expenditures – $820,450

6/12/2019 ‹#› Council, $31,361 , 4% Administration, $348,682 , 42% Elections, $0 , 0% Attorney, $75,000 , 9%

• Gen. Gov't Bldg,

$63,567 , 8% Assessing, $44,000 , 5% Planning & Zoning, $155,740 , 19% Contractual Services, $12,500 , 2% Unallocated Expenses, $65,000 , 8% Transit, $24,600 , 3%

6/12/2019 ‹#› $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 2016 Actual Amount $30,448 $307,895 $6,288 $63,959 $46,287 $40,558 $140,417 $11,598 $97,986 $21,600 2017 Actual Amount $32,068 $380,739 $0 $72,037 $49,318 $41,302 $148,703 $13,571 $120,708 $23,400 2018 Adopted Budget $32,645 $344,581 $7,656 $75,000 $52,492 $43,000 $140,039 $18,250 $66,000 $24,600 2019 Proposed Budget $31,361 $348,682 $0 $75,000 $63,567 $44,000 $155,740 $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