12-07-1995 CCCITY OF OTSEGO
1996 PROPOSED BUDGET PRESENTATION
(OVERHEADS)
DECEMBER 7, 1995
TAX RATE CALCULATION
SPECIAL LEVIES:
Taxes to pay for Bonded Indebtedness
and Park Development. $ 50,210
TAXES FOR GENERAL GOVERNMENT $ 799,019
Less State Aids $ 140,579
TOTAL TAXES NECESSARY $ 708,650
TAX CAPACITY:
Tax Capacity calculations per property
are defined by the laws of the State $2,061,110
TAX RATE IS ARRIVED AT BY DIVIDING THE TOTAL TAXES
NECESSARY ($708,650) BY THE TOTAL TAX CAPACITY
($290619,110). THE 1996 PROPOSED RATE IS 34.383.
PROPERTY TAXES FOR THE CITY ARE CALCULATED BY
MULTIPLYING THE TAX CAPACITY OF THE PROPERTY BY
THE TAX RATE.
Note: The City's 1995 tax capacity is an approximate 10.352% increase over the
1994 tax capacity.
The County Auditor's office indicated that this will change slightly when residents
get their Truth In Taxation statements and realize they have not filed for homestead
credit or that a homestead filing mistake was made.
PROPERTY TAX CALCULATION
ON A $90,000 VALUE HOME
TAXES PAYABLE 1995
TAX CAPACITY:
(Method of calculation is defined
by the State Legislature). $ 19080
TAX CAPACITY ($1,080) MULTIPLIED BY TAX RATE (.34459)
EQUALS CITY TAX DOLLARS ($372.16)
1995 CITY TAXES PAYABLE $372.16
PROPOSED 1996 CITY TAXES PAYABLE $371.34
TAX DOLLAR DIFFERENCE ON $90,000 VALUE HOME = -$.82
PROPERTY VALUE REMAINS THE SAME - TAX DECREASE=$.82
PROPERTY TAX CALCULATION
AGRICULTURAL HOMESTEAD CLASSIFICATION
The Parcel contains 71.46 acres. The total estimated market value is $112,000
(land=17,700; buildings=94,300). For tax calculations, these figures need to be
broken down further as follows:
House and Garage =
$42,500
Building Site =
$ 3,800
Other Buildings =
$51,800
Other Land =
$13,900
Now tax capacity can be calculated on this parcel.
House, Garage, + Bldg. Site = 46,300 x 1.00% = 463
Other Buildings: to 115,000 = 51,800 x .45% = 233
Other Land: (to 115,000) = 13,900 x .45% = 63
Total Tax Capacity = 759
TAXES PAYABLE 1996
TAX CAPACITY:
(Method of calculation as shown above
is defined by the State Legislature). $ 759
TAX CAPACITY ($759) MULTIPLIED BY TAX RATE (.34383)
EQUALS CITY TAX DOLLARS ($260.97)
Vill
0
A
40
0
20
10
C
Composition of Proposed
1996 Total Tax Rate
County City Elk River Monticello STMA Hospital
®Series1
Residential/K
Composition of Proposed 1996 Tax Revenues
Apartment Farm
60 0 12%
/ 1 "/o
-nmercial
ustrial 7 %
Other
4%
Based on Proposed Tax Revenues of $708,650
Residential/Homestead 509236
Apartment 39968
Farm 84542
Commercial/Industrial 47338
Other 27566
District 728
$0.45
WHERE DOES YOUR TAX DOLLAR GO?
Elk River Area
THE UNITED STATES Of AMERICA
a
Hospital
$.02
.;)V./-4
;ity
1.29
St.
Michael/Albertville
$0.47
WHERE DOES YOUR TAX DOLLAR GO?
St. Michael/ Albertville District
:THE=NITE0=TATES=FACRICA
Hospital
$.02
27
Monticello
$0.49
WHERE DOES YOUR TAX DOLLAR GO?
Monticello
THE UNITED STATES
Of AMERICA
m160, mr; - m �Q
Aft
0
Hospital
$.02
General Fund Revenue Comparison
700000
500000
KIIIIIIIIIN®
200000
0 _I_.__F� . I I --j F ;1 1 I1 IILLcLA 1
TT Property Taxes License/Permits Grants/Aids
Fees for Rents Misc/Other
Services
Property
620Y
Other Sourc
2%
Rei
2
1996 ESTIMATED REVENUES
State/Intergovt'I.
Aid
27%
License/Permits
5%
larges for
Services
2%
SERVICES/FUNCTIONS PROVIDED BY THE CITY:
24 Hour fire protection
24 Hour ambulance protection
24 Hour public safety protection
Street lighting (e.g., intersections)
Recycling
Street maintenance and snow plowing including grading,
gravel, signs, culverts
Newsletter
Clean up day
Recreational activities (e.g., programs and special events)
Emergency warning system
Administration including burn permits, licenses, general
information
Legislative review and administration
Watershed review and administration
Election administration
Records retention
Financial administration (e.g., financial recordkeeping, payroll, investments,
auditing, budgeting, and analysis)
Property records including valuation and classification of properties,
(assessing)
Building inspection including junk and blight enforcement
Zoning and flood zone property information
Planning and zoning services
Engineering services (e.g., storm sewer, septic system, water, and street
installation, storm water management, and transportation)
Park planning, development and maintenance
Maintenance of city buildings
Economic development
Historic Preservation
Public water system
450000
General Fund Expenditure Comparison
1:11994
400000 Actual
❑ 1995
Budget
350000 - -
- ❑ 1996
Proposed
300000 - - - -- - --- -
250000 - - - - -
200000 - -
150000 - -
100000
50000 -
0
General Planner Legal Engineer Police Blg Insp Streets Parks & Other
Govt Rec uses
M;
Pol
9�
Building
Inspection
2%
Engineering
4%
Maii
1996 Appropriations
By Department
Legal Street lighting
Planner
3% 1%
26% Other Uses 3%
5%
General
.7overnment
37%
ity
"General Government includes: Mayor and City Council, Administration, Finance, Assessing,
Planning Commission, EDA and City Hall.
" Other Uses includes Heritage Preservation and Capital Outlay