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 ‹#› 6/12/2019

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. ‹#› 6/12/2019

Levy - Summary Increase/ Increase/ 2019 2018 (Decrease) (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% ‹#› 6/12/2019

Bond Summary 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 ‹#› 6/12/2019

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. ‹#› 6/12/2019

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

City of Park Rapids General Fund 2019 Revenues Total Budget = $3,309,233 Property Tax- Levy LGA Other Revenues, Other $815,951.74 , 25% Revenues LGA, $496,388.00 , 15% Property Tax-Levy $1,996,893.02 60% Other Revenues: Franchise Fees License/Permits Fees/Fines ‹#› 6/12/2019

Local Government Aid (LGA) Overview 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 2019 is comparable with 2000 in LGA ‹#› 6/12/2019

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

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

City of Park Rapids General Fund Expenditures Yearly Comparison by Categories 2016 Actual through 2019 Proposed $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 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 ‹#› 6/12/2019 2019 Proposed Budget $1,575,891 $611,334 $232,664 $68,894 $820,451

General Fund Public Safety Expenditures - $1,575,891 Rental Inspections, $14,587 Plumbing Inspections, , 1% Building Inspections, $1,600 , 0% $78,675 , 5% Fire, $274,277 , 17% Police, $1,206,752 , 77% Police Fire Building Inspections Rental Inspections Plumbing Inspections ‹#› 6/12/2019

Public Safety (Category) Expenses $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 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 ‹#› 6/12/2019 2019 Proposed Budget $1,206,752 $274,277 $78,675 $14,587 $1,600

General Fund Public Works Expenditures - $611,334 Sidewalks & Crosswalks, $14,120 , 2% Ice Snow, $57,528 , 9% Street Lighting, $101,371 , 17% Streets and Hwys, $438,315 , 72% Streets and Hwys Street Lighting Sidewalks & Crosswalks Ice Snow ‹#› 6/12/2019

Public Works (Category) Expenses $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 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 ‹#› 6/12/2019

General Fund Culture Expenditures – $232,664 Library, $100,375 , 43% Parks, $132,289 , 57% ‹#› 6/12/2019 Library Parks

Culture Expenses (Category) $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 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 ‹#› 6/12/2019

General Fund Community Development Expenditures - $68,894 Natural Resources, $20,894 , 30% Econ. Dev., $48,000 , 70% Natural Resources Econ. Dev. ‹#› 6/12/2019

Community Development (Category) Expenses $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 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 ‹#› 6/12/2019 2019 Proposed Budget $20,894 $48,000

General Fund General Government Expenditures – $820,450 Transit, $24,600 , 3% Unallocated Expenses, Council, $31,361 , 4% $65,000 , 8% Contractual Services, $12,500 , 2% Planning & Zoning, $155,740 , 19% Administration, $348,682 , 42% Gen. Gov't Bldg, $63,567 , 8% Attorney, $75,000 , 9% Assessing, $44,000 , 5% Elections, $0 , 0% ‹#› 6/12/2019

General Government Expenses $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Council Administrati Elections Attorney Gen. Gov't Assessing Planning & Contractual Unallocated Transit on Bldg Zoning Services Expenses 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 ‹#› 6/12/2019

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