ITEM 7.1 Resolutions 75, 76-2017OtsTY.F
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/ Finance Director
Flaherty
September 11, 2017
PRESENTER(s)
REVIEWED BY:
ITEM #:
City Administrator/ Finance
Director Flaherty
BACKGROUND/JUSTIFICATION:
7.1
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council approve the attached resolutions:
1) Reducing the 2018 Debt Service Property Tax Levy Certified in the Original Bond Resolution
2) Adopting a Preliminary Property Tax Levy for Taxes Payable in 2018
It is also recommended by staff that the City Council set a public meeting at which the 2018 Budget and
Property Tax Levy will be discussed and the public allowed to speak.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
Yes
BACKGROUND/JUSTIFICATION:
The City Council and staff have met in five 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
2018 are different than those originally projected. In order to change the 2018 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.
I SUPPORTING DOCUMENTS ATTACHED: I
• Resolution 2017-75: Reducing the 2018 Debt Service Property Tax Levy
• Wright County Form — Bond/Register / Debt Levy Supplement
• Resolution 2017-76: Adopting a Preliminary Property Tax Levy for Taxes Payable in 2018
• 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:
3 Separate Motions Needed
-Motion to approve Resolution 2017-75, reducing the 2018 debt service property tax levy certified in the
original bond resolution.
-Motion to approve Resolution 2017-76, adopting a preliminary property tax levy for taxes payable in 2018.
-Motion to set the Truth in Taxation public hearing for taxes payable 2018 for 7:00 p.m., on Monday,
December 11th, 2017. The meeting will be held in the Council Chambers at 8899 Nashua Avenue NE,
Otsego, MN 55330.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2017-75
REDUCING THE 2018 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, 2012A
GO Improvement Bonds, 201 IA
GO Improvement Bonds, 201 OD
GO Improvement Bonds, 2010B
GO Improvement Bonds, 2010A
TOTAL RECORDED LEVY
$46,953
301,893
107,701
519,824
49,324
1 025 695 ;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 2018 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 2018; 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:
That the following amounts are approved adjusted property tax levies to be levied as property taxes
payable in 2018 for debt service purposes:
GO Improvement Bonds, 2012A
$0
GO Improvement Bonds, 2011A
107,299
GO Improvement Bonds, 201 OD
107,701
GO Improvement Bonds, 2010B
440,000
GO Improvement Bonds, 2010A
0
TOTAL LEVY FOR DEBT SERVICE $655,000
2. That these debt service property tax levy adjustments are applicable to taxes payable for 2018 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 11th day of September, 2017.
MOTION made by Council Member
I Iea 1I\' I ' .
OPPOSED:
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ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
and SECONDED by Council Member
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2017-76
ADOPTING A PRELIMINARY PROPERTY TAX LEVY
FOR TAXES PAYABLE IN 2018
WHEREAS, the Otsego City Council is required by State Statute to establish a preliminary tax levy for taxes
payable in 2018 by September 30, 2017 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 2018; and
WHEREAS, the Otsego City Council has considered projected revenues for funds using property tax
proceeds in 2018; 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 2018 for the
following purposes:
General Revenue
$5,385,756
Tax Abatement
65,546
GO Improvement Bonds, 2010B
440,000
GO Improvement Bonds, 201 OD
107,701
GO Improvement Bonds, 2011A
107,299
Total Tax Levy $6,106,302
1
ADOPTED by the Otsego City Council this 1 ith day of September, 2017.
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
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City Name
Truth in Taxation Public Hearing Dates
Otsego
Contact Person: Adam Flaherty, Finance Director Phone: (763) 441-4414
Public Hearing
Date: Monday, December 11, 2017
Time: 7:00 PM
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.
1. Location: Otsego Prairie Center
8899 Nashua Ave NE
Otsego, MN 55330
OR New Information
OK OR New Information
2. Phone Number: (763) 441-4414
OK OR New Information
3. Mailing Address: City of Otsego
13400 90th St NE
MN 55330
Please return this completed form no later than SEPTEMBER 30, 2017 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