City of Savage Public Hearing Proposed Property Tax Levy & Budget for 2009 December 1, 2008 7:00 p.m.
Purpose of tonight’s public hearing: <ul><li>Solicit public input on the  City ’s proposed tax levy and budget for next ye...
Other Public Hearings: <ul><li>Scott County – December 4 th , 7pm </li></ul><ul><li>Prior Lake - Savage Schools (ISD 719) ...
Property Assessment Calendar for Taxes Payable in 2009 <ul><li>March 2008 – County sends out Notice of Valuation (for foll...
Three Major Components to Your Total Proposed Taxes <ul><li>Scott County – Minimal tax rate increase  </li></ul><ul><li>Ci...
Prior Lake – Savage School District (ISD 719) November Referendum Not Reflected On Proposed Property Tax Statements – Add ...
Final Action on the 2009 General Fund Budget and Tax Levy <ul><li>Public Hearing – December 1, 2008 as part of the regular...
2009 Property Taxes <ul><li>The total property taxes needed by the City of Savage for 2009 is $15,588,520. </li></ul><ul><...
Property Tax History
Tax Levy  and Tax Rate 2009 proposed tax levy increases by $766,691 which is 5.17% over the 2008 levy amount and the tax r...
2009 Proposed Tax Rate <ul><li>2008 Tax Rate 48.356% </li></ul><ul><li>2009 Proposed Tax Rate 46.005% </li></ul><ul><li>20...
Savage’s Tax Rate History The proposed tax rate for 2009 is 46.005%, this is the second consecutive year with a rate decre...
Property Tax Levy Rate Comparison Scott County Cities
2009 Limited Market Value Taxable (Provided by Scott County) <ul><li>Scott County overall average (including Cities and To...
City of Savage Average Taxable Home Value 2005 - 2009
Impact on the Homeowner The City’s tax base continues to grow, increasing by 1.17% for 2009. The chart above represents th...
City’s Tax and Taxable Home Value – an Example
2009 Homeowner Impact <ul><li>Homeowners with no change in taxable Market Value will have approximately 5% tax decrease. <...
Property Taxes –  Two Major Components <ul><li>Debt Levy – Supports payments for City borrowing for structures, infrastruc...
City’s Debt Levy History
2009 Operating Levy – Key Elements of the Budget Development Process <ul><li>A decline in development-related revenues (Bu...
2009 Operating Levy  Items currently in Budget <ul><li>$100,000 allocation to CR 27 special project fund. </li></ul><ul><l...
2009 Proposed General Fund Budget Highlights <ul><li>Proposed general fund budget increases by $667,745 or 5.7% over 2008....
2009 Proposed General Fund Budget Highlights (continued) <ul><li>Discretionary Division budget increases in most cases has...
2004-2009 Staffing History
Proposed 2009 General Fund Budget Revenues by Major Source
Proposed 2009 General Fund Budget Expenditures by Major Function
Proposed 2009 General Fund Expenditure Increases by Major Function Police accounts for 65% of the 2009 budget increase.
Contacts <ul><li>Market Value Questions ?  </li></ul><ul><li>Contact Scott County  (952) 496-8150 </li></ul><ul><li>Questi...
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2009 City of Savage Truth in Taxation presentation

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A slide show of information related to the City of Savage 2009 Budget.

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  • 2009 City of Savage Truth in Taxation presentation

    1. 1. City of Savage Public Hearing Proposed Property Tax Levy & Budget for 2009 December 1, 2008 7:00 p.m.
    2. 2. Purpose of tonight’s public hearing: <ul><li>Solicit public input on the City ’s proposed tax levy and budget for next year; </li></ul><ul><li>Requirement of State Law; </li></ul><ul><li>Held after property owners receive their proposed property tax statements for 2009 (based upon the preliminary budget and tax levy approved in September) </li></ul>
    3. 3. Other Public Hearings: <ul><li>Scott County – December 4 th , 7pm </li></ul><ul><li>Prior Lake - Savage Schools (ISD 719) – </li></ul><ul><li>December 2 nd , 7pm </li></ul><ul><li>Burnsville – Eagan – Savage (ISD 191) – </li></ul><ul><li>December 11 th , 6pm </li></ul><ul><li>Metropolitan Council – No Meeting Required </li></ul><ul><li>State of Minnesota – No Meeting Required (State’s general property tax affects seasonal / recreational and commercial / industrial properties) </li></ul>
    4. 4. Property Assessment Calendar for Taxes Payable in 2009 <ul><li>March 2008 – County sends out Notice of Valuation (for following year’s taxes); </li></ul><ul><li>May 2008 – Local Board of Review meets to consider appeals from property owners; </li></ul><ul><li>June 2008 – County Board of Equalization meets to consider appeals from property owners </li></ul><ul><li>June 2008 – March 2009 – Tax Court petitions must be filed by subsequent March to appeal 2008 property assessment. </li></ul>
    5. 5. Three Major Components to Your Total Proposed Taxes <ul><li>Scott County – Minimal tax rate increase </li></ul><ul><li>City of Savage – Tax rate decrease </li></ul><ul><li>School District </li></ul><ul><li>ISD 191 – Burnsville – Minimal tax rate increase </li></ul><ul><li>Or </li></ul><ul><li>ISD 719 – Prior Lake – Minimal tax rate decrease </li></ul>
    6. 6. Prior Lake – Savage School District (ISD 719) November Referendum Not Reflected On Proposed Property Tax Statements – Add In New 2009 Levy $$ $182 $897 -$715 $500,000 $164 $808 -$644 $450,000 $146 $718 -$572 $400,000 $127 $628 -$501 $350,000 $109 $538 -$429 $300,000 $91 $449 -$358 $250,000 $73 $359 -$286 $200,000 Net Change New 2009 Levy Expired 2008 Levy Market Value
    7. 7. Final Action on the 2009 General Fund Budget and Tax Levy <ul><li>Public Hearing – December 1, 2008 as part of the regular Council meeting </li></ul><ul><li>Final Adoption – December 15, 2008 as part of the regular Council meeting </li></ul>
    8. 8. 2009 Property Taxes <ul><li>The total property taxes needed by the City of Savage for 2009 is $15,588,520. </li></ul><ul><li>This is a total increase of $766,691 over the 2008 property taxes. </li></ul><ul><li>This is an increase of 5.17% </li></ul>
    9. 9. Property Tax History
    10. 10. Tax Levy and Tax Rate 2009 proposed tax levy increases by $766,691 which is 5.17% over the 2008 levy amount and the tax rate decreases by 2.35%.
    11. 11. 2009 Proposed Tax Rate <ul><li>2008 Tax Rate 48.356% </li></ul><ul><li>2009 Proposed Tax Rate 46.005% </li></ul><ul><li>2009 Proposed Tax Rate Decrease </li></ul><ul><li>2.351% </li></ul>
    12. 12. Savage’s Tax Rate History The proposed tax rate for 2009 is 46.005%, this is the second consecutive year with a rate decrease. Since 2007 the total decrease is 4.15%.
    13. 13. Property Tax Levy Rate Comparison Scott County Cities
    14. 14. 2009 Limited Market Value Taxable (Provided by Scott County) <ul><li>Scott County overall average (including Cities and Townships) in Market Value was a decrease of one tenth of 1%. </li></ul><ul><li>City of Savage overall average increase in Market Value was 1.17%. </li></ul><ul><li>Individual homes all experience different increase rates or no increase at all. </li></ul><ul><li>You may be eligible for a State property tax refund – There is an information sheet provided by the Department of Revenue available at the table in the back and on their website. </li></ul>
    15. 15. City of Savage Average Taxable Home Value 2005 - 2009
    16. 16. Impact on the Homeowner The City’s tax base continues to grow, increasing by 1.17% for 2009. The chart above represents the City tax change before the market value increase. The chart below represents the City tax change with the average market value increase.
    17. 17. City’s Tax and Taxable Home Value – an Example
    18. 18. 2009 Homeowner Impact <ul><li>Homeowners with no change in taxable Market Value will have approximately 5% tax decrease. </li></ul><ul><li>Homeowners with the City of Savage average Market Value increase of approximately 1.17% will have approximately 3.8% tax decrease. </li></ul><ul><li>Each Homeowners tax impact is unique. </li></ul>
    19. 19. Property Taxes – Two Major Components <ul><li>Debt Levy – Supports payments for City borrowing for structures, infrastructure, equipment. </li></ul><ul><li>General Fund Operating Budget – Supports City operations and staff. </li></ul>
    20. 20. City’s Debt Levy History
    21. 21. 2009 Operating Levy – Key Elements of the Budget Development Process <ul><li>A decline in development-related revenues (Building Permits and Plan Review Charges) to reflect current housing slowdown and to reduce City’s reliance on discretionary revenues. </li></ul><ul><li>Market Value Homestead Credit (MVHC) Aid not included as a Revenue. </li></ul><ul><li>Development budget strategy to remain within State mandated levy limits. </li></ul><ul><li>Pursue budget planning and principles that will avoid spikes in City Tax Rate moving forward. </li></ul><ul><li>Continue to provide quality service levels residents have become accustomed to. </li></ul>
    22. 22. 2009 Operating Levy Items currently in Budget <ul><li>$100,000 allocation to CR 27 special project fund. </li></ul><ul><li>$50,000 allocation to cover unfunded liabilities for sick/vacation leave. </li></ul><ul><li>$50,000 general fund contingency. </li></ul><ul><li>$75,000 special projects contingency. </li></ul><ul><li>¼ percent mandated increase in City PERA contribution. </li></ul><ul><li>Reduction in Building Permit and related Revenues of $110,000. </li></ul><ul><li>Reduction in Plan Review Revenue of $30,000 . </li></ul><ul><li>$75,000 additional funds for sealcoat and overlay. </li></ul><ul><li>$50,000 additional funds for street and landscape supplies. </li></ul>
    23. 23. 2009 Proposed General Fund Budget Highlights <ul><li>Proposed general fund budget increases by $667,745 or 5.7% over 2008. </li></ul><ul><li>Projected wage and benefit increases associated with the City’s labor contracts and non-union personnel account for the single largest increase in operating costs. </li></ul><ul><li>Includes $25,000 to continue participation in SCALE Transportation Study and Lobbying efforts. </li></ul><ul><li>Includes fuel impacted category projected increases – gasoline 10%, refuse collection 10%, natural gas 25%, electricity 5%. </li></ul>
    24. 24. 2009 Proposed General Fund Budget Highlights (continued) <ul><li>Discretionary Division budget increases in most cases has been limited to fuel cost increases. </li></ul><ul><li>Staff additions withheld to Police Division (two patrol, one Community Services Officer (CSO), and one support staff phased in throughout year). </li></ul><ul><li>Elimination of Human Resources Manager position. </li></ul><ul><li>Elimination of Administrative Assistant position. </li></ul><ul><li>Reallocate Communication Coordinator costs from Cable Fund to General Fund and increase from .8 FTE to Full Time. </li></ul><ul><li>2009 Budget does NOT include Bi-Annual Community Survey, elimination of $20,000 expense. </li></ul>
    25. 25. 2004-2009 Staffing History
    26. 26. Proposed 2009 General Fund Budget Revenues by Major Source
    27. 27. Proposed 2009 General Fund Budget Expenditures by Major Function
    28. 28. Proposed 2009 General Fund Expenditure Increases by Major Function Police accounts for 65% of the 2009 budget increase.
    29. 29. Contacts <ul><li>Market Value Questions ? </li></ul><ul><li>Contact Scott County (952) 496-8150 </li></ul><ul><li>Questions about the City’s budget and tax levy ? </li></ul><ul><li>City of Savage Finance Director, Shelly Kolling </li></ul><ul><li>(952) 882-2645 </li></ul><ul><li>[email_address] </li></ul>

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