5.1 Property Tax Levy
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty September 25, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Administration 5.1 – Property Tax Levy
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:
City staff is recommending the City Council adopt resolutions related to the preliminary property tax levy and to schedule
the truth in taxation meeting.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The City Council and staff have met in five work session settings in preparation and review of the preliminary property
tax levy. 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 2024 are different than those originally projected. To change the
2024 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 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 2023-59: Adjusting the 2024 Debt Service Property Tax Levy
• Wright County Form – Bond Register / Debt Levy Supplement
• Resolution 2023-60: Adopting a Preliminary Property Tax Levy for Taxes Payable in 2024
• Wright County Form: Proposed Levy Certification
• Wright County Form: Truth in Taxation Public Hearing Information
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2023-59, adjusting the 2024 debt service property tax levy certified in the original bond
resolution.
Motion to adopt Resolution 2023-60, adopting a preliminary property tax levy for taxes payable in 2024.
Motion to set the Truth in Taxation public hearing for 7:00 p.m., on Monday, December 11, 2023. The meeting will be
held in the Council Chambers at 8899 Nashua Avenue NE, Otsego, MN 55330.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
City of Otsego
Property Tax Levy Calculations
Payable 2024
Revised: September 20, 2023
$% $%
2023 2024 Change Change 2024 Change Change
General Revenues 5,366,000 6,397,000 1,031,000 19.21% 6,491,000 1,125,000 20.97%
Tax Abatements 74,668 91,181 16,513 22.12% 91,181 16,513 22.12%
Debt Service
Series 2018A 94,416 102,144 7,728 102,144 7,728
Series 2020A 450,000 197,000 (253,000) 197,000 (253,000)
City Campus - Phase 1 - 2,055,709 2,055,709 2,055,709 2,055,709
Sub-total 544,416 2,354,853 1,810,437 332.55% 2,354,853 1,810,437 332.55%
Capital Reserves
Pavement Management 1,100,000 1,000,000 (100,000) 1,000,000 (100,000)
Trails Management 65,000 70,000 5,000 70,000 5,000
Parks Equipment 70,000 400,000 330,000 400,000 330,000
Capital Equipment Revolving 477,325 550,393 73,068 550,393 73,068
Fire Reserve 210,000 210,000 - 210,000 -
Storm Water 38,000 40,000 2,000 40,000 2,000
Capital Improvements 1,349,614 - (1,349,614) - (1,349,614)
City Buildings & Property 35,000 35,000 - 35,000 -
Sub-total 3,344,939 2,305,393 (1,039,546) -31.08% 2,305,393 (1,039,546) -31.08%
Grand Total 9,330,023 11,148,427 1,818,404 19.49% 11,242,427 1,912,404 20.50%
Growth (%) 8.68%
Tax Capacity 32,075,441 39,567,388 39,567,388
Growth (%) 27.01% 23.36% 23.36%
Net Tax Capacity 31,550,432 38,946,763 38,946,763
Growth (%) 26.95% 23.44% 23.44%
Tax Rate 29.572 28.625 28.866
Population 21,289 22,705 22,705
Tax Levy Per Capita 438 491 495
Description 2023 2024 Change ($) Change (%) 2024 Change ($) Change (%)
Median Appraised Value 328,710 403,700 74,990 22.81% 403,700 74,990 22.81%
Less: MV Exclusion (7,656) (907) (907)
Taxable Market Value 321,054 402,793 402,793
Tax Capacity 3,211 4,028 817 25.46% 4,028 817 25.46%
Taxing Estimated Estimated Estimated
Authority Tax Tax Change ($) Change (%) Tax Change ($) Change (%)
City of Otsego 949 1,153 204 21.50% 1,163 214 22.55%
Description 2023 2024 Change ($) Change (%) 2024 Change ($) Change (%)
Median Sale Price Paid 349,429 421,760 72,331 20.70% 421,760 72,331 20.70%
Less: MV Exclusion (5,791) - -
Taxable Market Value 343,638 421,760 421,760
Tax Capacity 3,436 4,218 781 22.73% 4,218 781 22.73%
Taxing Estimated Estimated Estimated
Authority Tax Tax Change ($) Change (%) Tax Change ($) Change (%)
City of Otsego 1,016 1,207 191 18.80% 1,217 201 19.78%
Levy Description
Preliminary Tax Levy (9-25-2023) Budget Meeting (9-11-2023)
Y:\Budget\2024\Property Taxes\Tax Levy Calculations (2024)9-25
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-59
ADJUSTING THE 2024 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 Bond, 2018A $102,144
GO Improvement Refunding Bond, 2020A 290,237
TOTAL RECORDED LEVY $392,381 ; and
WHEREAS, the City of Otsego has, in its most recent audited financial statement, recorded cash balances meeting
requirements in the Debt Sinking Funds maintained for the 2020A bond issue; and
WHEREAS, the cash balances in the Debt Sinking Funds, together with future collections of special assessments and property
tax levies will be sufficient to meet the debt service requirements for the Series 2020A bond issue; and
WHEREAS, the restructured property tax levy schedule will result in a lower amount levied to repay the Series 2020A bond
issue when compared to the original debt levies pledged at the time of the bond sale; and
WHEREAS, the debt levies have been adjusted 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 2024
for debt service purposes:
GO Improvement Bond, 2018A $102,144
GO Improvement Refunding Bond, 2020A 197,000
TOTAL LEVY FOR DEBT SERVICE $299,144
2. That these debt service property tax levy adjustments are applicable to taxes payable for 2024 only and that any
future changes in levy will be adopted at such time as is proper and prudent.
2
ADOPTED by the Otsego City Council this 25th day of September, 2023.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
CITY OF OTSEGORE: Bond Register/Debt Levy Supplement(A) (B)(C)A-B=CBOND ORIGINALDATE DEBT LEVY PER ADDITIONS ORCERTIFIED ISSUED PRINCIPALISSUED BOND RESOLUTION REDUCTIONS TO DEBT LEVYFOR PAY 2024 LEVIED AMOUNT2024G.O. TEMPORARY SEWER REVENUE BONDS, SERIES 2022AG.O. WATER AND SEWER REVENUE REFUNDING BONDS, SERIES 2021BG.O WATER REVENUE BONDS, SERIES 2021AG.O. IMPROVEMENT REFUNDING BOND, SERIES 2020A290,237 (93,237) 197,000G.O. SEWER REVENUE NOTE OF 2020G.O. WATER & SEWER REVENUE REFUNDING BONDS, SERIES 2019AG.O. IMPROVEMENT BONDS, SERIES 2018A102,144 102,144TOTAL392,381 -93,237 299,144I hereby certify that the above schedule of bond levies to be spread on payable 2024 tax rolls agrees withyour records and is true and correct. Copies of any resolutions which increase or reduce these leviesare attached.SignatureDateSeptember 25, 2023
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-60
ADOPTING A PRELIMINARY PROPERTY TAX LEVY
FOR TAXES PAYABLE IN 2024
WHEREAS, the Otsego City Council is required by State Statute to establish a preliminary tax levy for taxes payable in 2024 by
September 30, 2023 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
2024; and
WHEREAS, the Otsego City Council has considered projected revenues for funds using property tax proceeds in 2024; 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 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 2024 for the following
purposes:
General Revenue $6,397,000
Tax Abatement 91,181
GO Improvement Bond, 2018A 102,144
GO Improvement Refunding Bond, 2020A 197,000
Capital Improvement Plan 4,361,102
Total Tax Levy $11,148,427
2
ADOPTED by the Otsego City Council this 25th day of September, 2023.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
Proposed Levy CertificationSTATE of MINNESOTAReturn by: September 30, 2023COUNTY of WRIGHTCity Taxes VotedCITY of OTSEGOTo the Finance Director of Wright County: I hereby certify that the Council for the City of Otsego, County of Wright, Minnesota, did at a meeting onSeptember 25, 2023, levy the following amount to be raised by taxation for the City of Otsego for the payable year 2024.2023 Final 2024 ProposedABCDABCD(A-B-C=D)(A-B-C=D)2023 2023 2023 2023 2024 2024 2024 2024Budget Other Tax Budget Other CertifiedRequirement LGA Resources Levy # Fund Requirement LGA Resources Levy7,976,649 2,610,649 5,366,000 5 Revenue 9,462,677 73,598 2,992,079 6,397,000210,000 210,000 7 Fire Protection 210,000 210,00070,000 70,000 11 Parks 400,000 400,000805,406 260,990 544,416 19 Debt Service 568,620 269,476 299,1442,271,038 1,171,038 1,100,000 20 Blacktopping 3,230,430 2,230,430 1,000,00035,000 35,000 25 Building Improvements35,000 35,0001,349,614 1,349,614 26 Capital Imp 2,766,538 710,829 2,055,70974,668 74,668 37 Tax Abatement 91,181 91,18138,000 38,000 41 Water 40,000 40,000477,325 477,325 73 Public Facilities 600,826 50,433 550,39365,000 65,000 76 Park Projects 70,000 70,000Tax SystemExcel13,372,700 4,042,677 9,330,023 Total 17,475,272 73,598 6,253,247 11,148,427* Do not include any Disparity Reduction Aid or Fiscal Disparity taxes.Dated this 26th day of September, 2023.Adam Flaherty, Finance DirectorPercent Changed16%7%For Office Use16%83%-82%-10%34%18%5%13%
City Name: Otsego
Contact Person: Adam Flaherty Phone: (763) 441-4414
Date: December 11, 2023
Time: 7:00 PM
Listed below is prior year data for (1) the location of the public meeting, (2) the phone number to
published, and (4) the mailing address for written responses. (3) website is a new requirement t
Please review and check the appropriate box for each item. Fill in any new information as need
1. Location: Otsego Prairie Center
8899 Nashua Ave NE
Otsego, MN 55330
2. Phone Number: (763) 441-4414
3. Website:www.ci.otsego.mn.us
4. Mailing Address: City of Otsego
13400 90th St NE
Otsego, MN 55330
Truth in Taxation Public Meeting Dates
Public Meeting
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