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<br />Truth in Taxation Hearing Minutes
<br />December 5, 1996
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<br />Page 2
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<br />Public Hearing. continued
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<br />Municipal services are grouped into the General/Capital Fund or Enterprise/Other Fund.
<br />The General Fund includes tax-supported services for police, fire, street maintenance,
<br />debt, park improvements, engineering, finance, and City Manager's office. Water,
<br />sewer, golf course, and driving range customer fees support the Enterprise Fund. There
<br />are four types of service costs; personnel, materials and supplies, contractual services,
<br />and capital payments. Personnel includes wages, benefits, and insurance. The
<br />workforce totals 116 full-time employees (FTE). Materials and supplies provide for
<br />fuel, office supplies, uniforms, and equipment. Contractual services include professional
<br />services, utility charges, transfers, and fleet maintenance. Capital payments include
<br />installments for debt, fleet, and projects. The cost allocations are: capital installments -
<br />19.07%, personnel- 39.96%, contractual- 36.55%, and materials - 4.42%.
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<br />Service changes for 1997 include: addition of 2.5 Police positions; 1/2 time landscape
<br />helper to maintain 5th Ave.; two cleanup days; metropolitan lawsuit settlement;
<br />increased pension costs for Fire Relief Association; increased vehicle repair costs;
<br />increased sewage treatment charges; and investments in computer technology.
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<br />Capital improvements include: aerial ladder fire truck; $67,000 appropriation for park
<br />projects; golf course clubhouse feasibility study; and $850,000 in ongoing street
<br />rehabilitation. The Boat Launch Guard is still included as a municipal service.
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<br />The budget is financed by: customer charges - 35%; state aid - 26%; other (interest
<br />earnings and reserves) - 11 %; and taxes - 28 %. Customer charges are received from
<br />recreation programs - $285,000; Family Service Center fees - $465,000; License Bureau
<br />- $75,000; Police and fines - $220,000; Forestry - $55,000; Recycling - $175,000;
<br />Community Department and Building Inspections - $345,000; cellular antenna leases -
<br />$31,000; cable franchise fee - $75,000; engineering services - $490,000; and other-
<br />$291,000. Capital/Debt fund financing comes from other - 39% and taxes - 61 %.
<br />Property taxes provide 34 % of the 1997 General and Capital Fund which is the same
<br />percentage as 1996, but slightly over the 1995 rate of 32 %. The shift toward property
<br />taxes is expected to continue as full development decreases customer charges for
<br />building inspections and engineering services.
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<br />To minimize the need for taxes, the following changes are planned in non-tax revenues:
<br />receipt of antenna lease totaling $31,000; increase recycling fee to pay for cleanup days;
<br />increase service charges for planning, sanitarian and Family Service Center; use of
<br />$45,000 in reserves; increase in revenues of $37,000 through higher interest rates; and
<br />Family Service Center non-tax revenues to pay a greater share of costs.
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<br />The tax levy is allocated proportionately to all properties, and the formula divides the tax
<br />levy by taxable property values to arrive at a tax rate. The 1997 tax rate is estimated at
<br />17.830. Once the tax rate is known, multiplying the tax rate by the taxable value
<br />determines individual share. The first $72,000 in market valuation is taxed at a 1 % rate,
<br />and any value above that is taxed at a 2 % rate. Eleven percent of New Brighton homes
<br />experienced no valuation change; 54% a 1-5% change; and 35% a 5-10% change. A
<br />property valued at $73,300 would see a $4 increase, while a property valued at
<br />$310,300 would see a $57 increase. Because rental and commercial properties are taxed
<br />higher, it is the City's strategy to attract more commercial properties to increase the tax
<br />base. The revised levy provides for a 45 % reduction in the City portion originally stated
<br />in the Truth in Taxation notice.
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<br />Truth in Taxation
<br />Hearing
<br />Report 96-257 A
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