ITEM 5.1 Pre Tax Levy0
CITY OF
OtSego
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Adam Flaherty, Finance Director
September 28, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Adam Flaherty, Finance Director
City Administrator Johnson
5.1 Preliminary Tax Levy
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council approve the attached resolutions which will establish a
preliminary property tax levy for taxes payable in 2016 in the amount of $5,020,206.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BAC KG RO U N D/J U STI F ICATI O N:
Minnesota State statutes require the City to certify a preliminary property tax levy on or before
September 30th to the County auditor. The City's final levy can be less, but not more than this
preliminary levy amount.
The City Council and staff have met in five work session settings in preparation and review of the
preliminary General fund budget. The total proposed General fund expenditure budget is $4,877,885.
Projections of revenues other than from property taxes have determined that those respective revenue
sources are not sufficient to meet the proposed General fund expenditure budget.
The preliminary tax levy of $5,020,206 is an increase of $340,206 (7.27%) over the final property tax levy
from the previous year.
Wright County has provided staff with information that the tax capacity within the City of Otsego will
increase 16.58% (as of 8/31/2015), to a total of $13,262,075. This preliminary information allows staff
to estimate the City tax rate for taxes payable in 2016 to be 37.854, which is a decrease of 3.284 from
the previous year.
Preliminary Wright County information shows that residential land and building values have increased in
value 9.13% over the previous year. Using the example of a median residential value property ($185,000
in 2014); that respective property, including market value increase, would only see a $16.00 (2.32%)
increase in the City portion of the property taxes payable in 2016, compared to taxes payable in 2015.
SUPPORTING DOCUMENTS: X ATTACHED NONE
• General Fund — Budget Summary
• Tax Levy Calculations
• Wright County Form — Proposed Levy Certification
• Wright County Form — Bond Register / Debt Levy Supplement
• Wright County Form —Truth in Taxation Public Hearing Information
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
3 Separate Motions Needed
-Motion to approve Resolution 2015-56, reducing the property tax levy for taxes payable 2016 in
relation to debt service to an amount of $640,000.
-Motion to approve Resolution 2015-57, setting the maximum total preliminary property tax levy for
taxes payable 2016 in the amount of $5,020,206.
-Motion to set the Truth in Taxation public hearing for taxes payable 2016 for 7:00 p.m., on Monday,
December 14th, 2015. The meeting will be held at the Otsego Prairie Center.
BUDGET INFORMATION
BUDGETED:
N/A
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
City of Otsego
General Fund Budget - Summary
Year Ending December 31, 2016
2013
2014
2015
2016
2016
Actual
Actual
Adopted
Proposed
Adjustments
Preliminary
Revenues:
Taxes
3,366,010
3,321,316
3,334,000
3,499,950
44,402
3,544,352
Licenses and Permits
830,076
1,238,823
592,000
622,350
19,215
641,565
Intergovernmental Revenue
217,630
337,779
323,122
343,590
-
343,590
Charges for Service
38,321
192,168
50,700
57,000
57,000
Interest Revenue
(4,766)
37,427
95,000
50,000
50,000
Cable Franchise Fees
83,681
120,964
105,000
107,000
107,000
Other Revenues
72,924
58,815
149,047
133,755
3,000
136,755
Total
4,603,876
5,307,292
4,648,869
4,813,645
66,617
4,880,262
Expenditures:
General Government. -
City Council
44,216
52,853
82,317
96,838
96,838
Administration
339,696
405,229
415,273
438,225
438,225
Elections
1,486
25,672
745
29,825
29,825
Assessor
67,463
72,517
74,700
76,941
76,941
Finance
242,381
318,213
342,703
341,431
341,431
Legal
78,996
101,013
82,000
86,000
86,000
Information Technology
22,760
40,926
66,300
71,000
71,000
City Hall
71,270
82,267
82,063
82,851
82,851
Planning
70,016
92,152
68,500
91,500
3,000
94,500
Building Inspection
181,882
189,193
229,723
234,118
19,215
253,333
Subtotal: General Government:
1,120,166
1,380,035
1,444,324
1,548,729
22,215
1,570,944
Public Safety
Police
882,601
912,365
941,700
978,200
978,200
Police Commission
1,399
605
1,350
1,350
1,500 2,850
Fire
365,873
377,926
454,560
497,462
497,462
Emergency Management
2,950
1,413
7,450
6,900
6,900
Animal Control
11,058
14,610
11,300
13,500
13,500
Subtotal: Public Safety:
1,263,881
1,306,919
1,416,360
1,497,412
1,500 1,498,912
Public Works:
Streets
678,991
620,483
681,123
676,167
10,502
686,669
Engineering
160,825
92,876
85,000
85,000
85,000
Street Lights
109,667
111,465
114,100
115,968
115,968
Fleet Maintenance
148,131
190,113
187,260
207,502
(1,063)
206,439
Subtotal: PublicWorks
1,097,614
1,014,937
1,067,483
1,084,637
9,439
1,094,076
Culture & Recreation
Park Maintenance
166,490
293,212
343,851
356,544
29,412
385,956
Recreation
115,471
139,020
128,927
142,211
10,019
152,230
Prairie Center
20,220
26,968
35,622
33,877
33,877
Subtotal: Culture & Recreation:
302,181
459,200
508,400
532,632
39,431
572,063
Economic Development
3,286
4,095
14,100
14,300
14,300
Total
3,787,128
4,165,186
4,450,667
4,677,710
72,585
4,750,295
Excess of Revenues over (under)
Expenditures
816,748
1,142,106
198,202
135,935
(5,968)
129,967
Net Transfers In / (Out)
-
(339,457)
-
(127,590)
(127,590)
NET GENERAL FUND:
816,748
802,649
198,202
135,935
(133,558)
2,377
City of Otsego
Property Taxes
Tax Levy Calculations
Payable 2016
k
Revised: August 31, 2015
Proposed $ %
Description Pay 2013 Pay 2014 Pay 2015 Pay 2016 Change Change
General Fund Revenues 3,213,145 3,273,715 3,319,000 3,529,352 210,352
Reserve Levies
Fire Reserve
Storm Sewer
Pavement Management
Park Trail Management
Capital Equipment Revolving
Parks Capital Equipment
Subtotal
Total - Limited Levy
Debt Service Levies
G.O. Improvement, 2003A
G.O. Improvement, 2004A
G.O. Improvement, 2006B
G.O. Improvement Refunding, 2010B
G.O. Improvement Refunding, 2010D + 2011A
Subtotal
Tax Abatement Levies
Grand Total Tax Levy
Tax Capacity
Change in Tax Capacity
Tax Rate
Median Value - Residential Home
Taxable Market Value
Property Taxes - City Portion Only
Percentage Increase
140,000
145,000
145,000
150,000
5,000
57,765
25,000
25,000
25,000
-
300,000
320,000
320,000
339,200
19,200
25,000
25,000
25,000
25,250
250
175,000
160,000
160,000
168,000
8,000
25,000
53,000
53,000
54,590
1,590
722,765
728,000
728,000
762,040
34,040 4.68%
3,935,910
4,001,715
4,047,000
4,291,392
244,392
100,000
100,000
-
-
-
75,000
75,000
-
-
-
100,000
100,000
-
-
-
150,000
200,285
410,000
415,000
5,000
-
-
200,000
225,000
25,000
425,000
475,285
610,000
640,000
30,000 4.92%
17,000
23,000
23,000
88,814
65,814 286.15%
4,377,910 4,500,000 4,680,000 5,020,206 340,206
9,470,288 10,095,765 11,376,427 13,262,075
n/a 6.60% 12.69% 16.58%
46.228 44.573 41.138 37.854
n/a 175,500 185,000 201,891
n/a 154,055 164,410 182,821
n/a 687 676 692
n/a -1.50% 2.32%
Proposed Levy Certification
STATE of MINNESOTA
Return by: September 30, 2015
COUNTY of WRIGHT
City Taxes Voted
CITY of OTSEGO
To the AUDITOR of Wright County: I hereby certify that the Council for the City of Otsego, County of Wright, Minnesota, did at a meeting on
September 28th, 2015, levy the
following amount to be raised by taxation for the City of Otsego for the payable year 2016.
2015 Final 2016 Proposed
I
2015 2015
2015 2015 1 2016 1 2016 1. 2016 1 2016
Budget
Other Tax Budget 1. Other Certified
Requirement LGA
Resources Levy 1 # Fund 1 Requirement 1 LGA Resources Levy
f 4 648 8691 123 947i
1 205 922' 3 319 000i 5 Revenue j 48778071 127 588' 1 220 867i 3 529 352
145,000
1
145,000;
7 Fire Protection i
150,000 i
150,000
53,0001,
i
53,000:
11 Parks Capital
54,5901
54,590
1,389,4991
779,4991
610,0001
19 Debt Service
1,443,4981
803,4981
640,000
411,000;
91,000;
320,000;
20 Pavement Mgmt
339,200;
339,200
23,0001
23,0001
37 Tax Abatement
88,8141
88,814
25,0001
25,0001
41 Storm Sewer
25,0001
25,000
597,0001
437,0001
160,000i
73 Public Facilities
168,0001
168,000
25,000
25,000;
76 Trail Mgmt
25,2501
25,250
123,9471 2,513,4211 4,680,000; Total i7,
Market Value Based Referendum Levy $
* Do not include any Disparity Reduction Aid or Fiscal Disparity taxes.
,5881 2,024,365; 5,020,206
Dated this 29th day of September, 2015.
Tami Loff, Clerk/Treasurer
JNTY O�
0
iG � re
Fs� ay
78r5
July 31, 2015
CITY OF OTSEGO
RE: Bond Register/Debt Levy Supplement
(A) (B) (C)
A-B=C
BOND
ISSUED
ORIGINAL
PRINCIPAL
DATE
ISSUED
DEBT LEVY PER
BOND RESOLUTION
FOR PAY 2016
ADDITIONS OR
REDUCTIONSTO
LEVIED AMOUNT
CERTIFIED
DEBT LEVY
2016
G.O. IMPROVEMENT CROSSOVER REFUNDING BONDS, SERIES2012A
1,400,000
3/14/2012
29,310
(29,310)
G.O. IMPROVEMENT CROSSEVER REFUNDING BONDS, SERIES 2011A
4,640,000
12/21/2011
282,426
(162,523)
119,903
G.O. IMPROVEMENT REFUNDING BONDS, SERIES 2010D
1,220,000
11/30/2010
105,097
105,097
G.O. WATER & SEWER REVENUE REFUNDING BONDS, SERIES 2010C
21,300,000
11/30/2010
G.O. CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2010B
3,705,000
11/30/2010
517,569
(102,568)
415,000
G.O. EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2010A
385,000
1/28/2010
52,159
(52,159)
EC. WATER & SEWER REVENUE REFUNDING BONDS, SERIES 2009A
6,360,000
12/1/2009
G.O. IMPROVEMENT BONDS, SERIES 2007B
680,000
11/1/2007
TOTAL
986,560
-346,560
W>w
I hereby certify that the above schedule of bond levies to be spread on payable 2016 tax rolls agrees with
your records and is true and correct. Copies of any resolutions which increase or reduce these levies
are attached.
Please sign and date, then return to the Wright County Auditor/Treasurer's Office with your Levy Certification.
Sincerely,
md.a p. -w4a ,.&
RobertJ. Hiivala
Truth in Taxation Public Hearing Dates
City Name: Otsego
Contact Person: Adam Flaherty, Finance Director Phone: (763) 235-3161
Public Hearing
Date: Monday, December 14th, 2015
Time: 7:00 p.m.
Listed below is prior year data for (1) the location of the public hearing, (2) the phone number
to be published and (3) the mailing address for written responses. Please review these
and either confirm that they are still accurate or make the necessary changes.
OK OR New Information
1. Location: Otsego Prairie Center
8899 Nashua Ave NE
Otsego, MN 55330
OK OR I New Information
2. Phone Number: (763) 441-4414
OK OR New Information
3. Mailing Address: City of Otsego
13400 90th St NE I
Otsego, MN 55330 I
Please return this completed form no later than SEPTEMBER 30, 2015 by email to:
karen.labo(@co.wright.mn.us OR mail the completed form to:
Wright County Aud/Treas Dept., 10 2nd St NW Room 230, Buffalo, MN 55313
Attention: Karen Labo
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF 1VIINNESOTA
RESOLUTION NO: 2015-56
RESOLUTION REDUCING THE PROPERTY TAX LEVY FOR
TAXES PAYABLE IN 2016 IN RELATION TO DEBT SERVICE
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, 2012A
GO Improvement Bonds, 2011A
GO Improvement Bonds, 2010D
GO Improvement Bonds, 2010B
GO Improvement Bonds, 2010A
TOTAL RECORDED LEVY
$29,310
282,426
105,097
517,569
52,159
986 560 ;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 2016 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 2016; 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,
NUNNESOTA:
That the following amounts are approved adjusted property tax levies to be levied as property taxes
payable in 2016 for debt service purposes:
GO Improvement Bonds, 2012A
$0
GO Improvement Bonds, 2011A
119,903
GO Improvement Bonds, 201 OD
105,097
GO Improvement Bonds, 2010B
415,000
GO Improvement Bonds, 2010A
0
TOTAL LEVY FOR DEBT SERVICE 640 000
2. That these debt service property tax levy adjustments are applicable to taxes payable for 2016 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 28th day of September, 2015.
MOTION made by Council Member
IN FAVOR:
OPPOSED:
2
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
and SECONDED by Council Member
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION SETTING A PRELL IINARY PROPERTY
TAX LEVY FOR TAXES PAYABLE IN 2016
WHEREAS, the Otsego City Council is required by State Statute to establish a preliminary tax levy for taxes
payable in 2016 by September 30, 2015 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 2016; and
WHEREAS, the Otsego City Council has considered projected revenues for funds using property tax
proceeds in 2016; 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,
NHNNESOTA:
That the following amounts are the maximum to be levied as property taxes payable in 2016 for the
following purposes:
General Revenue
Tax Abatement
GO Improvement Bonds, 201 OB
GO Improvement Bonds, 201 OD
GO Improvement Bonds, 201 lA
Total Tax Levy
$4,291,392
88,814
415,000
105,097
119,903
5 020 206
ADOPTED by the Otsego City Council this 28th day of September, 2015.
1
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED: