HomeMy WebLinkAbout[05] Truth in Taxation Public Hearing
Council Agenda Item 5
MEETING DATE: December 2, 2019
AGENDA ITEM: Truth In Taxation Hearing – Final Budget/Capital Plans
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: Boards and Commissions
presented their 2020 budget requests to the city council the past few months. The Fire Board did not
amend their preliminary budget at their November meeting.
PREVIOUS COUNCIL ACTION: Council adopted the preliminary 2020 budget/levy on September
30, 2019. Council reviewed the draft enterprise budget at their November 18, 2019 council meeting. The
capital plans were reviewed since August. Council agreed to postpone the proposed 2020 improvement
projects for one year.
BACKGROUND INFORMATION:
Stearns County informed the City the preliminary tax rate and market value in October. The Net Tax
Capacity was slightly lower than shown when the preliminary levy was adopted. The NTC increased
9.15%, with the levy up $549,700 ($287,795 without the annexed properties), the tax capacity rate is
estimated to be 62.48% (1.7% increase). To achieve a 1% change in the tax rate, a levy decrease of
$43,000 is needed. Below is a chart of the area jurisdictions. The cities to not expect big changes are
planned before the final budgets/levies. A couple of the cities indicated slight decreases may be adopted.
For St. Joseph residents, the total tax levy rate is estimated to decrease 0.84% (line items highlighted in
gold below).
Preliminary 2019 Final 2020 Est.
Jurisdiction Final 2019 Levy 2020 Levy** Tax Rate Tax Rate
City of St. Joseph $2,343,285 $2,892,985 60.74% 62.48%
Stearns County $80,479,473 $82,797,680 51.40% 50.29%
Independent School
District 742 – St. Cloud
Schools $30,543,485 $30,612,305 27.85% 26.35%
Sauk River Watershed
District $874,794 $1,054,789 0.90% 0.93%
City of Sauk Rapids $3,980,600 $3,990,600 46.37% 42.31%
City of Sartell $6,570,145 $7,029,569 41.41% 41.14%
City of St. Cloud $26,698,700 $27,815,000 50.00% 50.36%
City of Waite Park $7,690,912 $8,236,886 69.14% 72.72%
**Includes levy for newly annexed properties.
The final levy/budget was reduced due to postponing capital projects and adjusting years for capital
equipment purchases ($30,405 savings). There was a $14,970 addition for a part time Recreations
Director and an adjustment for property tax sharing is the portion due to St. Joseph Township for the
annexation reimbursements per the 2018 OAA agreement. The City will receive taxes from the annexed
properties in 2020 to offset the sharing costs.
BUDGET/FISCAL IMPACT: $3,997,360 2020 general fund budget
$2,054,075 2020 operating levy
$838,910 2020 debt levy
ATTACHMENTS: Request for Council Action– 2020 General Budget/Levy
2020 Net Tax Capacity
2020 Proposed General Expenditure Budget Summary
REQUESTED COUNCIL ACTION: Hold Truth In Taxation public hearing. Consider adoption final
budget, levy, capital plans.
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