ITEM 5.1 Tax LevyCITY Ot�ego
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
September 14, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Administration
5.1
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council approve the attached resolutions:
1) Reducing the 2021 Debt Service Property Tax Levy Certified in the Original Bond Resolution
2) Adopting a Preliminary Property Tax Levy for Taxes Payable in 2021
It is also recommended by staff that the City Council set a public meeting at which the 2021 Budget and
Property Tax Levy will be discussed and for the public to ask questions and provide input.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/J USTI FICATION:
The City Council and staff have met in six work session settings in preparation and review of the
preliminary property tax levy and General fund budget. Each item is discussed below:
1) When the City issues debt, a property tax levy certification resolution is sent to Wright County. The
levy amounts in that resolution are projections at the time of issuance. Each year, City staff
analyzes the debt service funds to determine if a property tax levy is needed and what the levy
amount should be. Given the most recent analysis performed, the property tax levies for payable
2021 are different than those originally projected. In order to change the 2021 debt levies from the
amounts in the original certification resolution, Wright County requires the City Council to pass a
resolution. The form that will be filed with Wright County is attached.
2) Minnesota State statutes require the City to certify a preliminary property tax levy on or before
September 30th to the County auditor. The preliminary property tax levy amount will be used to
formulate the truth in taxation notices that will be sent out by Wright County later this fall. It is
important to note that the City's final levy can be less, but not more than this preliminary levy
amount. The form that will be filed with Wright County is attached.
3) The Minnesota Department of Revenue requires that Cities with a population over 500 to hold a
meeting at which the budget and property tax levy will be discussed, and the public allowed to
speak. The form that will be filed with Wright County is attached.
SUPPORTING DOCUMENTS ATTACHED:
• Tax Levy Calculation Summary
• Resolution 2020-60: Reducing the 2021 Debt Service Property Tax Levy
• Wright County Form — Bond Register / Debt Levy Supplement
• Resolution 2020-61: Adopting a Preliminary Property Tax Levy for Taxes Payable in 2021
• Wright County Form: Proposed Levy Certification
• Wright County Form: Truth in Taxation Public Hearing Information
P(14ZCIR1 F Mr)TIOKI
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
3 Separate Motions Needed
-Motion to approve Resolution 2020-60, reducing the 2021 debt service property tax levy certified in the
original bond resolution.
-Motion to approve Resolution 2020-61, adopting a preliminary property tax levy for taxes payable in 2021.
-Motion to set the Truth in Taxation public hearing for taxes payable 2021 for 7:00 p.m., on Monday,
December 14th, 2020. The meeting will be held in the Council Chambers at 8899 Nashua Avenue NE,
Otsego, MN 55330.
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-60
REDUCING THE 2021 DEBT SERVICE PROPERTY TAX LEVY
CERTIFIED IN THE ORIGINAL BOND RESOLUTION
WHEREAS, the Wright County Auditor's records show the original debt levies pledged by the City Council at
the time of sale as follows:
GO Improvement Bonds, 2018A
GO Improvement Bonds, 2012A
GO Improvement Bonds, 2011A
GO Improvement Bonds, 2010D
GO Improvement Bonds, 2010B
TOTAL RECORDED LEVY
$94,551
46,274
367,895
124,703
519,120
1 152 543 ; and
WHEREAS, the City of Otsego has, in its most recent audited financial statement, recorded cash in excess of
reserve requirements in the Debt Sinking Funds maintained for these bonds; and
WHEREAS, the Otsego City Council has considered restructuring of the Pay 2021 property tax levy such that
the above amounts may be reduced by use of a portion of the excess funds available, in turn reducing the
property tax levy for Pay 2021; and
WHEREAS, the debt levies have been adjusted or cancelled based on revenue collections, cash balances
reported and projections.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That the following amounts are approved adjusted property tax levies to be levied as property taxes
payable in 2021 for debt service purposes:
GO Improvement Bonds, 2018A $94,551
GO Improvement Bonds, 2012A 0
GO Improvement Bonds, 2011A 70,297
GO Improvement Bonds, 2010D 124,703
GO Improvement Bonds, 2010B 460,000
TOTAL LEVY FOR DEBT SERVICE $749.551
2. That these debt service property tax levy adjustments are applicable to taxes payable for 2021 only
and that any future changes in levy will be adopted at such time as is proper and prudent.
ADOPTED by the Otsego City Council this 14th day of September, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tami M. Loff, City Clerk
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-61
ADOPTING A PRELIMINARY PROPERTY TAX LEVY
FOR TAXES PAYABLE IN 2021
WHEREAS, the Otsego City Council is required by State Statute to establish a preliminary tax levy for taxes
payable in 2021 by September 30, 2020 and certify the preliminary tax levy to the Wright County Auditor; and
WHEREAS, the Otsego City Council has reviewed the City's anticipated expenditures for funds using property
tax proceeds in 2021; and
WHEREAS, the Otsego City Council has considered projected revenues for funds using property tax proceeds
in 2021; and
WHEREAS, revenues from sources other than property taxes are not sufficient to meet the anticipated
expenditures of said funds; and
WHEREAS, the debt levies have been adjusted or cancelled based on revenue collections and projections.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That the following amounts are the maximum to be levied as property taxes payable in 2021 for the
following purposes:
General Revenue
$7,033,000
Tax Abatement
45,874
GO Improvement Bonds, 2010B
460,000
GO Improvement Bonds, 2010D
124,703
GO Improvement Bonds, 2011A
70,297
GO Improvement Bonds, 2018A
94,551
Total Tax Levy 7 828 425
ADOPTED by the Otsego City Council this 14th day of September, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tami M. Loff, City Clerk
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Truth in Taxation Public Meeting Dates
City Name: Otsego
Contact Person: Adam Flaherty, City Administrator Phone: (763) 441-4414
Public Meeting
Date: December 14, 2020
Time: 7:00 PM
Listed below is prior year data for (1) the location of the public meeting, (2) the phone number to be
published, and (3) the mailing address for written responses. Please review these and check the
appropriate box for each item. Fill in any new information as needed.
❑ Information is correct [] New Information
1. Location: Otsego Prairie Cetner (Otsego Prairie Center
2. Phone Number
8899 Nashua Ave NE
8899 Nashua Ave NE
Otsego, MN 55330 (Otsego, MN 55330
Q Information is correct
763) 441-4414
0 Information is correct
3. Mailing Address: City of Otsego
13400 90th St NE
Otsego, MN 55330
❑ New Information
❑ New Information
Please return this completed form no later than September 30, 2020.
email: christa.pearson@co.wright.mn.us
fax: (763) 682-7873 Attn: Christa Pearson
mail: Wright County Auditor/Treasurer
Attn: Christa Pearson
10 2nd St NW Room 230
Buffalo, MN 55313