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Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.
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Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

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Page 1: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

Truth in Taxation

Public Information Hearing

December 5, 2011

6:00 P.M.

Page 2: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

BUDGET PROCESS TO DATE

City Council and Staff held work sessions over the summer and fall on the proposed budget for 2012

City Council adopted the preliminary budget and levy in September

Truth-in-Taxation Notices were mailed to all city property owners last month

City Council met on November 7th and November 21st to revise budget and levy

Page 3: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

BUDGET PROCESS TO DATE

Truth-in-Taxation Hearing PurposeThe main purpose of the Truth-in-taxation hearing is to enhance the public participation in the property tax system by allowing a public forum to:

Discuss the Budget Discuss the Tax Levy Explain the Increases Hear Public Comments and Questions on Budget

and Tax Levy

Page 4: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

BUDGET PROCESS TO DATE

TONIGHT – Truth-in-Taxation Hearing

MONDAY, DEC. 19th: Continuation of Truth-in-Taxation Hearing (if necessary)

DEC. 19th – DEC. 28th: Budget and levy must be adopted by the City Council

Page 5: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

A REMINDER

Tonight we discuss the City’s share of your total 2012 tax bill,

not property valuations

Page 6: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.
Page 7: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

BRIEFLY ON VALUATIONS

In Minnesota, the market value of a property is determined by January 2 of the year prior to the year in which taxes on that property are due. In other words, market values for taxes payable in 2012, were set in January 2011.

Property Values on Statements recently received are based off of home sales from October of 2009 to September of 2010.

Property owners will receive new notices of market values from the assessor in March/April of 2012. Questions on Valuations should be addressed at the Equalization Hearing in May/June.

Page 8: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

FIRST OFF!

The preliminary tax levy set in September, and the property tax affect (Statement you got in the mail) showed a tax increase of 5.0%

The revised budget now shows a 2.2% tax levy increase

The City has eliminated roughly $21,000 in expenses since it’s preliminary budget was adopted

Page 9: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

WHERE WE STAND

Where does Arlington Stand in regards to the rest of the County when it comes to our City property tax rate?

Arlington’s 2011 Average City Tax Rate ranked the 2nd lowest in Sibley County!

1. Henderson 144.06%

2. Gibbon 142.41%

3. Green Isle 130.41%

4. New Auburn 111.22%

5. Gaylord 82.00% Preliminary Proposed

6. Arlington 73.00% 91.21% 88.75%

7. Winthrop 61.65%

Page 10: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2011 TAX COMPARISON OF CITIES IN SIBLEY COUNTY

Home Value

City $50,000 $100,000 $150,000 $175,000 $200,000

Winthrop $478 $1,074 $1,797 $2,159 $2,520

Arlington $544 $1,205 $1,994 $2,388 $2,782

Gaylord $579 $1,276 $2,100 $2,512 $2,924

New Auburn $753 $1,623 $2,621 $3,120 $3,619

Green Isle $832 $1,781 $2,858 $3,397 $3,935

Gibbon $846 $1,809 $2,900 $3,445 $3,991

Henderson $932 $1,981 $3,158 $3,746 $4,334

Page 11: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

EXPLANATION OF PROPERTY TAX RATE

Arlington’s Property Tax Rate is set by taking the city’s tax levy and dividing it by its total tax capacity.

$756,805 / $852,716 [Total Tax Capacity] = 88.75%

Total Tax Capacity = Tax capacity is determined by multiplying a property’s market value by its classification rate. Each property rate is assigned a classification rate depending on its use by the State Legislature. Properties associated with income production (commercial & industrial) have a higher classification weight than other properties. The City’s total tax capacity is an accumulation of all parcels within the city, minus adjustments.

Page 12: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPERTY TAXATION 101

How do I determine the City’s portion of my proposed tax bill?

[parcel market value] x [parcel class rate] x [city tax rate] = City portion of your tax bill

Example:

$125,000 (home) x 1.0% (class rate) x .8875 (city tax rate) = $1,109.38

Page 13: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

MARKET VALUE EXCLUSION

If the taxy levy was raised by 5%, why did my city property tax increase by much more than that?

State had over a $5 Billion deficit 2011 Legislative Action Changed the Market Value

Homestead Credit program and replaced it with the Market Value Exclusion program

The change in the Homestead Credit Program meant that property owners no longer receive a “credit” that reduces the property taxes paid. Instead, a portion of a property’s value is now excluded from taxation

This change saved the state $261 Million The change was both good and bad to the City

Page 14: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

OLD MARKET VALUE “CREDIT” SYSTEM

Arlington’s Tax Levy Under the “Credit” System:

2011 Net Levy Ag Credit State Credit Levy as Seen by Taxpayers

$740,726 $114 $91,096 $649,516

Problem with “Credit” System = Cities weren’t receiving full paymentsIn 7 of the last 9 years, the State didn’t make full “credit” payments to local governmentsArlington was shorted $50,961 in 2010 and 2011This was on top of LGA cuts in 2008, 2009, 2010 & 2011.

Page 15: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

NEW MARKET VALUE “EXCLUSION” SYSTEM

Under the new system, a defined portion of a property’s market value is exempt from taxation

This results is some of that taxes that would have been borne by a property will now be shifted to all remaining taxable property value

The “Exclusion” is based on a formula (handout) where the exclusion equals 40% of the first $76,000 in market value. It is reduced by 9% until it hits $0 at $413,800 of market value

Will have a different impact for different cities based on the tax base composition.

Page 16: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

“OLD” MARKET VALUE SYSTEM VS. “NEW” SYSTEM

Old/Current System (2011):

Market Value Taxable Value Tax Capacity Levy Tax Rate

$96,303,800 $96,110,800 $1,014,728 $740,726 73.00%

New System (2012):

Market Value Taxable Value Tax Capacity Levy Tax Rate

$96,245,700 $79,820,100 $852,716 $756,805 88.75%

% Change % Change % Change % Change % Change

-0.06% -16.96% -15.97% 2.6% 22.2%

Page 17: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

IMPACT ON PROPERTY TAXPAYERS

All else being equal, taxes paid by a homeowner that previously qualified for the “Credit” will increase because the State will no longer be paying a portion of the taxes.

The taxes paid by those same homes will be reduced because a portion of the home’s value will no longer be subject to taxation

The homeowner relief under the new system results from taxes formerly paid on the now excluded value being shifted to other property types

All else being equal, tax shifts occur because the exclusion will reduce the tax base of the City, which will have the direct effect of increasing the City’s property tax rate

Page 18: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

IMPACT ON PROPERTY TAXPAYERS

For homes, the tax rate increase will be offset by a reduction in the home’s value. However, for other types of property that do not receive an exclusion, the tax rate increase will simply increase the property’s taxes

QUICK FACTS The City did not “Levy Back” for the loss of the Market Value

Credit The City would have had to reduce it’s budget by $118,243

(16%) over 2011’s budget to account for the loss of taxable market value for it’s tax rate not to change.

A 0% levy increase would have increased the tax rate to 86.87%

A budget reduction of $91,096 (Market Value Credit), would have still increased the tax rate to 76.18%

Page 19: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

“EXCLUSION” SUMMARY

1) State money is no longer reducing total taxes Entire local property tax levy will be paid by taxpayers

2) The reduction in taxable value increases tax rates With taxable value being reduced by exclusion, same levy =

higher rate

3) The reduction in taxable value shifts the relative burdens of who pays

With homestead values being reduced, other properties pay a larger share

4) The exclusion provides less benefit in low tax areas than the credit.

Lower tax areas = less benefit; higher tax areas = greater benefit.

Page 20: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

14 REASONS PROPERTY TAXES VARY FROM YEAR TO YEAR

1. THE MARKET VALUE OF A PROPERTY MAY CHANGE

2. THE MARKET VALUE OF OTHER PROPERTIES IN YOUR TAXING DISTRICT MAY CHANGE, SHIFTING TAXES FROM ONE PROPERTY TO ANOTHER

3. THE STATE GENERAL PROPERTY TAX MAY CHANGE

4. THE CITY BUDGET AND LEVY MAY CHANGE

5. THE TOWNSHIP BUDGET AND LEVY MAY CHANGE.

6. THE COUNTY BUDGET AND LEVY MAY CHANGE

7. THE SCHOOL DISTRICT’S BUDGET AND LEVY MAY CHANGE

8. A SPECIAL DISTRICT’S BUDGET AND LEVY MAY CHANGE

9. SPECIAL ASSESSMENTS MAY BE ADDED TO YOUR PROPERTY TAX BILL

10. VOTERS MAY HAVE APPROVED A SCHOOL, CITY/TOWNSHIP, COUNTY OR SPECIAL DISTRICT REFERENDUM

11. FEDERAL AND STATE MANDATES MAY HAVE CHANGED

12. AID AND REVENUE FROM THE STATE AND FEDERAL GOVERNMENTS MAY HAVE CHANGED

13. THE STATE LEGISLATURE MAY HAVE CHANGED THE PORTION OF THE TAX BASE PAID BY DIFFERENT TYPES OF PROPERTIES

14. OTHER STATE LAW CHANGES MAY ADJUST THE TAX BASE

Page 21: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 PROPOSED BUDGET

PROPOSED TAX LEVY AND GENERAL FUND BUDGET

Page 22: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

BRIEFLY ON THE 2011 BUDGET

In the spring of 2011, the City was notified that it would be facing an additional cut of $50,961 in Market Value Homestead Credit (State Aid) due to the State Budget Deficit.

This was on top of an already reduced payment of Local Government Aid in the amount of $87,791 (reduction was budgeted for)

The City Council covered the reduction in Market Value Credit by using Fund Reserves

Page 23: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPOSED TAX LEVY

2011 2012 IncreaseGeneral Fund Levy $591,817 $591,817 0.0%Other Levies $0 $2,888 100.0%

Special Levies (Debt Service)

Comm. Ctr. Debt $45,000 $50,000 11.1%2010 Fire Cert. $17,274 $21,600 25.0%2009 GO RF Bond $0 $35,500 100.0%2000 Improv. Bond $16,535 $0 -100.0%2001 Improv. Bond $15,100 $0 -100.0%2004 Improv. Bond $55,000 $55,000 0.0% TOTAL LEVY $740,726 $756,805 2.2%

Page 24: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

TAX LEVY BREAKDOWN

Page 25: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

TAX LEVY TREND SINCE 2002

Page 26: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL INFORMATION ON THE TAX LEVY

Since 2002, the City’s tax levy has nearly doubled, increasing by 84%.

Since 2006, the City’s tax levy has increased by 23%

From 2008-2011, the average year-to-year levy increase was at 3.0% (Inflation was at 2.1%)

Since 2002, the City has had it’s State Aid reduced 5 times. Of those 5 times, 4 have taken place within the past 4 years

THE 2012 TAX LEVY ACCOUNTS FOR A PER CAPITA TAX OF $339, UP FROM $331 IN 2011

Page 27: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPOSED GENERAL FUND REVENUES

2011 2012 Increase

Taxes $591,817 $591,817 0.0%

Local Gov’t Aid $636,892 $636,892 0.0%

Other State Aid $50,743 $52,943 4.3%

Licenses/Permits $24,560 $20,295 -17.4%

Other Revenue $55,347 $238,376 330.7%

Total General Fund $1,359,359 $1,540,323 13.3%

Page 28: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 GENERAL FUND BUDGET - REVENUES

Page 29: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL FACTS ON GENERAL FUND REVENUE

38% -- Property taxes account for 38% of the revenue in the general fund, down from 43% in 2011.

41% -- Local Government Aid accounts for 41% of the revenue in the general fund; down from 47% in 2011.

21% -- All other revenue sources in the General Fund account for 21% of General Fund Revenues. This is a large increase from 10% in the 2011 budget.

$186,300 – Transfer of “Other Funds” into the General Fund for 2012. This is due to the closing of 3 funds with fund balances (TIF Fund and two Debt Funds)

Local Government Aid and Property Taxes are the biggest supporters of the General Fund

Page 30: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPOSED GENERAL FUND EXPENSES

Department 2011 2012 IncreaseCouncil $34,943 $33,624 -3.8%Administration $230,459 $220,460 -4.3%Elections $0 $2,550 100.0%Assessing $9,350 $9,350 0.0%Law/Legal Serv. $7,520 $8,020 6.6%Planning/Zoning $51,180 $42,772 -16.4%Buildings/Plant $22,356 $25,263 13.0%Police Department $245,969 $233,699 -5.0%Fire Stations $32,363 $17,860 -44.8%Civil Defense $1,852 $1,852 0.0%Animal Control $455 $455 0.0%

Page 31: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPOSED GENERAL FUND EXPENSES

Department 2011 2012Increase

Public Works $241,367 $238,045 -1.4%

Street Lighting $9,600 $10,200 6.3%

Parks & Recreation $41,054 $41,508 1.1%

Libraries $26,214 $27,955 6.6%

Health Services $258 $258 0.0%

Econ. Develop. $16,821 $16,365 -3.3%

Miscellaneous $5,000 $5,000 0.0%

Transfers $382,498 $605,087 58.2%

Total General Fund $1,359,359 $1,540,323 13.3%

Page 32: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 GENERAL FUND BUDGET - EXPENSES

Page 33: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL FACTS ON GENERAL FUND EXPENSES

23% -- General Administration accounts for 23% of the general fund expenses, down from 27% in 2011.

23% -- Public Safety accounts for 23% of the general fund expenses, down from 30% in 2011.

16% -- Public Works/Streets account for 16% of the general fund expenses, down from 19% in 2011.

6% -- Parks and Recreation account for 6% of the general fund expenses, down from 7% in 2011.

4% -- Percent of General Fund dollars that go to help pay off debt, same as in 2011

Page 34: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL FACTS ON GENERAL FUND EXPENSES

27% -- Percent of General Fund Expenses that will go to help fund the Capital Improvement Fund, up from 12% in 2011.

28% -- of General Fund Expenses go to employee wages and benefits, down from 36% in 2011.

10% -- of General Fund Expenses go to pay for professional services (Attorney, Auditor, Building Inspector, Engineer, etc.), same as in 2011.

$690 -- Amount the City will spend, per capita, for General Fund needs, up from $658 in 2011.

Page 35: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 PROPOSED BUDGET

SPECIAL FUNDS, CAPITAL FUND, AND ENTERPRISE FUND BUDGETS

Page 36: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPOSED SPECIAL FUND REVENUES

Department 2011 2012 IncreaseFire Fund $93,547 $99,477 6.3%Ambulance Fund $230,697 $235,702 2.2%Community Center $91,585 $87,103 -4.9%EDA Loan Fund $7,671 $10,151 32.3%Revolving Loan Fund $11,902 $18,127 52.3%Cemetery $8,591 $6,157 -28.3% Cemetery Perp. Fund $1,500 $1,500 0.0%Park Dedication Fund $460 $600 30.4%TIF District #2 $5,000 $0 -100.0% TOTAL SPECIAL $450,953 $458,817 1.7%

Page 37: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL FACTS ON SPECIAL FUND REVENUES

TRANSFERS (TAX DOLLARS) FROM THE GENERAL FUND TO HELP SUPPORT THE SPECIAL FUNDS IS AT $130,500, A DECREASE OF $35,900 (22%) FROM 2011

28% -- PERCENT OF TAXPAYER $$$ THAT GO TO SUPPORT SPECIAL REVENUE FUNDS, DOWN FROM 37% in 2011

THE AMBULANCE AND FIRE DEPARTMENT HAVE INCREASED COVERAGE RATES FOR 2012.

RENTAL RATES FOR THE COMMUNITY CENTER WERE INCREASED IN 2011, FULL IMPACT TO TAKE AFFECT IN 2012.

TIF FUNDS WILL BE DECERTIFIED IN 2011, EXCESS FUNDS TO HELP SUPPORT THE CAPITAL IMPROVEMENT FUND

Page 38: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPOSED SPECIAL FUND EXPENSES

Department 2011 2012Increase

Fire Fund $93,547 $99,477 6.3%Ambulance Fund $230,697 $235,702 2.2%Community Center $91,585 $87,103 -4.9%EDA Loan Fund $1,170 $1,278 9.2%%Cemetery $8,591 $6,157 -28.3%TIF District #2 $4,791 $0 -

100.0%EDA Special Fund $0 $3,000

100.0%TOTAL SPECIAL $430,381 $432,717 0.5%

Page 39: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL FACTS ON SPECIAL FUND EXPENSES

69% -- Percent of Fees and Charges collected that support the expenses of the Fire and Ambulance Department, up from 58% in 2011.

59% -- Percent of Fees and Charges collected that support the expenses of the Community Center and Cemetery, down from 64% in 2011.

$264 -- When you combine the Special Fund Expenses of the Fire Department and Ambulance with the General Fund Public Safety Expenses, the City spends more per capita ($264) on public safety than any other function besides the Enterprise Funds.

Page 40: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

CAPITAL PROJECT FUND

2011 2012 Increase

Budgeted Expenses $161,500 $446,405 176.4%

Capital Needs $383,670 $1,872,646 388.1%

PAYMENT METHOD

2011 2012 Increase

Cash Through Taxes: $119,500 $420,705 252.1%

Cash Through Utilities: $47,000 $209,000 344.7%

CIP Reserve: $0 $22,700 100.0%

EDA Reserve: $0 $3,000 100.0%

Sibley County: $44,778 $112,241 150.7%

Federal Grant: $0 $105,000 100.0%

City Issued Debt: $0 $1,000,000 100.0%

Cash through taxes include $186,300 in Fund Closures

Page 41: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 BUDGETED CAPITAL $$

Proposed Budget

Comm. Center = $8,000

EDA = $13,000

Public Works = $261,500

Railroad Crossing = $126,855

Parks = $28,050

Police = $9,000

TOTAL = $446,405

Capital Expenses are the Single Biggest factor for a 2.2% tax levy increase

Page 42: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

PROPOSED ENTERPRISE FUNDS

Department 2011 2012 Increase

Water Revenues $432,646 $441,028 1.9%

Sewer Revenues $503,699 $84,692 -83.2%

AG-I Revenues $0 $491,364 100.0%

Electric Revenues $1,584,755 $1,672,510 5.5%

TOTAL REVENUES $2,521,100 $2,689,594 6.7%

Department 2011 2012 Increase

Water Expenses $425,272 $444,348 4.5%

Sewer Expenses $435,106 $137,585 -68.4%

A-GI Expenses $0 $404,606 100.0%

Electric Expenses $1,637,185 $1,683,870 2.9%

TOTAL EXPENSES $2,497,563 $2,670,409 6.9%

Page 43: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL FACTS ON THE ENTERPRISE FUNDS

5% -- Budgeted water user rate increase for 2012

$6.00 -- Budgeted monthly sewer base rate increase for 2012 (To help pay for the 2011-12 plant upgrade). This on top of a $5 increase in 2011.

$18.27 -- Estimated total sewer base rate increase needed to eventually pay for the 2011-12 plant upgrade

7% -- Budgeted electric user rate increase for 2012

A-GI Fund -- 1st Year of Fund. Created to track $$ better

Page 44: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

WHY THE NEED FOR RATE INCREASES?

SEWER FUND –

To help pay for the 2011-2012 Plant Improvement Project

WATER FUND –

Fund has been in the negative 4 of the last 6 years. General Fund dollars (taxes) were used to balance the fund in 2009.

ELECTRIC FUND –

Fund has been in the negative the last 4 going on 5 years

Page 45: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 PROPOSED BUDGET

DEBT SERVICE FUNDS

Page 46: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

DEBT SERVICE PAYMENTS

Fund 2011 2012Increase

2000 Imp. Bond $21,080 $0 -100.0%2001 Imp. Bond $31,410 $0 -100.0%2004 Imp. Bond $90,778 $88,153 -2.9%2009 GO. Improv. $41,085 $41,085 0.0%2008 GO. Equip. $81,213 $83,625 3.0%2010 Fire Cert. $34,547 $33,674 -2.5%2004 Pub. Proj. $59,873 $63,433 5.9%TOTAL DEBT $359,686 $309,070 -14.1%

Fund balances in the 2000 & 2001 Improvement Bond Fund will be transferred to the General Fund

2012 will be the first year that the City levies ($35,411) for principal payments for the 2009 GO Improvement Bond (Payment due in February of 2013)

Page 47: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

FUTURE DEBT PAYMENTS

Page 48: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

FUTURE DEBT LEVIES

Page 49: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

OTHER DEBT SERVICE INFO

$826,320 -- Total debt payments in 2012, up from $737,772 (12%) in 2011.

$223,871 -- Dollar amount of property taxes that go to pay for City Debt, up from $209,006 (7%) in 2011

30% -- Percent of the total tax levy that goes to pay for city debt obligations, up from 28% last year.

15% -- Percent of all City Expenses that go to cover debt obligations, the same as last year

THE REMAINING DEBT IS COVERED BY ASSESSMENTS, INTEREST EARNINGS AND/OR USER FEES (WATER/SEWER)

Page 50: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 PROPOSED BUDGET

IN CONCLUSION

Page 51: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 PROPOSED BUDGET – ALL CITY FUNDS

2011 2012 % Increase

GENERAL FUND $1,359,359 $1,540,323 13.3%

SPECIAL FUNDS $430,381 $432,717 0.5%

ENTERPRISE FUNDS $2,497,563 $2,670,409 6.9%

DEBT SERVICE $359,986 $309,970 -13.9%

CAPITAL IMP. FUND $161,500 $446,405 176.4%

TOTAL BUDGET $4,808,789 $5,401,574 12.3%

Page 52: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 BUDGET - ALL CITY EXPENSES

Page 53: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

2012 BUDGET - ALL CITY REVENUES

Page 54: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

ADDITIONAL FACTS ON THE 2012 BUDGET

Total Budgeted Revenues will increase by 12.8% in 2012 – Mainly due to Utility Rate Increases and Fund Balance Transfers

Total Budgeted Expenses will increase by 12.3% in 2013 – Mainly due to an Increase in Capital Expenses and Debt in Utility Funds

The City will spend $2,419 per person in 2012, up from $2,328 in 2011.

Top 5 Per Capita Spending:

1) Enterprise Funds -- $1,196 2) Public Safety -- $264 3) Capital Projects -- $200 4) Administration -- $153

5) Debt Service -- $139

Page 55: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

CITY CONCERNS

Tax Base remains stagnate, property values falling Poor/Stagnate Economy What happens at the Federal/State Level? Good News! – State Projecting a $876 million Surplus!

$255 million will be used to increase State cash flow $621 million will be used to increase reserves

Means there shouldn’t be any additional State Aid cuts in the near future

City’s fiscal condition is currently healthy

Page 56: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

LOCAL GOV’T AID (2003-2012)

Page 57: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

NEXT STEPS

TONIGHT: Questions from Council Members Open Public Hearing and Receive Input Close Public Hearing or Continue

FUTURE: MONDAY, DEC. 19: Continuation of Truth-in-

Taxation Hearing (If Necessary) MONDAY, DEC 19 – DEC. 28: Authorize Final

Budget and Tax Levy

Page 58: Truth in Taxation Public Information Hearing December 5, 2011 6:00 P.M.

Truth in Taxation HearingThank you for your Attention!

December 5, 2011