Budget Hearing December 13, 2010 The City of Crookston was - PowerPoint PPT Presentation

Budget Hearing December 13, 2010

 The City of Crookston was incorporated February 14, 1879  Home Rule Charter City – what does this mean: Home Rule Charter Cities can exercise any powers in their locally adopted charters as long as they do not conflict with state laws. Conversely, charter provisions can specifically restrict the powers of a city. Consequently, voters in Home Rule cities have more control over their city’s powers.

 Mayor/Council Members Mayor ‐ David Genereux Council Member Ward 1 – Tom Jorgen Council Member Ward 2 – Marlys Mjoen Council Member Ward 3 – Keith Mykleseth Council Member Ward 4 – Wayne Melbye Council Member Ward 5 – Dale Stainbrook Council Member Ward 6 – Tom Vedbraaten Council Member At ‐ Large – Guy Martin Council Member At ‐ Large – Frank Lindgren

Department Heads City Administrator Aaron Parrish Clerk ‐ Treasurer Betty Arvidson Public Works Director Pat Kelly Chief of Police Tim Motherway Fire Chief Richard Rock Community Development Dir. Mike MacDonald Parks & Recreation Dir. Scott Kleven Information Technology Dir. Thomas Lindo

 Full Time Employees

Revenue Sources $ Fees for Services $ State Aid $ Property Taxes $ Franchise Fees $ Grants

What makes up the General Fund?  Mayor/Council  Administration  Clerk/Treasurer  Zoning  Information Technology  Police  Fire/Emergency Management/Building Official  Public Works

HOW DO WE DETERMINE HOW MUCH TO LEVY?  Staff prepares a proposed budget  Determine estimated fees for services the city is to receive  Subtract out certified State Aid  Balance is amount needed to levy as a property tax

BALANCE NEEDING FUNDING FOR 2011

TOTAL TAX LEVY 2011

FACTORS IN DETERMINING TAX RATE Amount of Levy  Market Value 

LEVY/AID COMPARISON A 1 % increase in the levy generates $15,692 therefore 3% generates $47,077 in additional property tax revenue.

Market Value  Due to the recent tax court cases (American Crystal Sugar and New Flyer of America, Inc.) the proposed market values for taxes payable 2011 were not available.  The County did indicate the market value for the residential category did increase for the city of Crookston for payable 2011.

2011 Proposed Total Tax Rate *The tax rate did incorporate the adjustments made in Market Values due to recent tax court settlements.

Tax Rate Comparison

Tax Rate Comparison

What does this mean per household per month?  The number of estimated households in Crookston in 2009 was 3142.  The proposed levy, based on 3142 households equates to $514.42 per year per household or $42.87 per household per month.

What does $42.87 per month buy you in Crookston?  24 hrs/day, 7 days/week fire and police protection  Snow removal from streets and alleys  Street cleaning and maintenance  Building official and zoning administration  Full range of Parks and Recreation opportunities from birth to Seniors  Access to a public library  Access to a municipal airport

SUMMARY  General Fund budget down 4.53% from 2010 to 2011  Total Budget down 4.87% from 2010 to 2011  Levy Limits imposed for 2011  Local Government Aid un ‐ allotment of $391,501 in 2010  Market Value Homestead Credit reduce by $165,901 in 2010  Combined aid loss of $557,402 in 2010  Expected aid reduction in 2011 based on state forecast

SUMMARY (CONT.)  3% levy increase for 2011 which generates $47,077  Modest increase in residential tax base  Slight increase in City tax rate, overall tax rate reduced  Able to maintain desired level of General Fund unrestricted fund balance  Able to maintain desired level of employees

2011 Capital Improvement Funding Sources Total CIP for 2011 $1,363,895 Levy Supported Improvements 264,850 Central Garage 80,000 Improvement Fund 521,545 Airport 6,000 MnDOT Aeronautics(Grant) 14,000 Enterprise Funds – Water 427,500 Enterprise Funds – Waste Water 50,000

QUESTIONS?