#2 Memo
#2
MEETING TYPE
City of Shorewood Council Meeting Item
Special Meeting
2014 Truth-in-Taxation Presentation
Title / Subject:
Meeting Date: December 1, 2014
Prepared by: Bruce DeJong
Reviewed by: Bill Joynes
Attachments: Truth-in-Taxation PowerPoint Presentation
Policy Consideration: The City Council is required by law to consider public input at this hearing prior
to adopting the property tax levy and budget for 2015.
Background: The property tax system is detailed, complex, and confusing. The process used to
determine each property’s value and taxes starts several years prior to the action that we will take this
evening. A general timeline is as follows:
October, 2012-September, 2013 – Real Estate sales occur for about 3% of properties in town.
October-December, 2013 – Hennepin County assessing staff analyze the sales and extrapolate
that data to determine an estimated Market Value for each property in town base on similar
styles, sizes, finish levels, amenities, and neighborhoods.
January 2, 2014 – A property value is set for each parcel in the community.
March, 2014 – Valuation notices are sent to each parcel with the new estimated property value.
April-June, 2014 – Open Book meeting at City Hall and valuation appeals to the Hennepin
County Board of Equalization. This will finalize the value to be used for Truth-in-Taxation
estimates and 2015 property taxes.
July-September, 2014 – City Council discusses the General Fund budget and property tax levy for
2015.
September 30, 2014 – The preliminary tax levy is certified to Hennepin County.
November, 2014 – A Truth-in-Taxation parcel-specific notice is mailed to each property owner
with the estimated taxes identified for each taxing jurisdiction - County, City, School District,
Metropolitan Council, Watershed District, and other minor taxing districts.
December 1, 2014 – Shorewood City Council holds the Truth-in-Taxation meeting and adopts a
tax levy and budget for 2015.
December 29, 2014 – Final tax levy is certified to Hennepin County and Form TNT is filed with
the Minnesota Department of Revenue.
May 15, 2015 – 2015 first half taxes are due at Hennepin County.
The City Council adopted a preliminary budget and tax levy in August. That information was sent to
Hennepin County who used the County Assessor’s property values to determine an estimated tax rate
for each overlapping jurisdiction. This information was combined with preliminary tax information from
other taxing jurisdictions to create a Truth-in-Taxation statement for each property.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
For this meeting, the City Council holds a public hearing to allow taxpayers to discuss the budget in
general, department budgets, and the amount of property taxes levied by the City of Shorewood.
This meeting is not structured for property owners to discuss individual property values, which were
set earlier in the year at the Open Book and Board of Review process held from April through June.
The required elements for the Truth-in-Taxation process are:
1.The proposed property tax levy must be certified to the county auditor by September 30.
2.The public meeting is held at the scheduled time and place indicated on the TNT notice.
3.The proposed budget and property tax levy are discussed at the meeting.
4.The public is invited and allowed to speak and to ask questions concerning the budget and
proposed property taxes at the public meeting.
5.The final property tax levy and the final budget are adopted.
6.The final property tax levy may not exceed the preliminary August 25 certified property tax levy.
7.The final property tax levy must be certified to the county auditor by no later than December 29.
8.Form TNT must be submitted to the Dept. of Revenue after the final tax levy is adopted but no
later than December 29.
Items in bold will be discussed at the Public Hearing on December1.
At its work session on November 24, the City Council asked for a presentation of several different tax
levy scenarios:
2.5% - original certification $4,980,050 roughly 2% increase in average property taxes
2.0% - potential lower rate $4,955,757 roughly 1.5% increase in average property taxes
$24,239 levy reduction
1.5% - potential lower rate $4,931,464 roughly 1% increase in average property taxes
$48,586 levy reduction
The budget resolution contains a blank for the property tax levy amount to be filled in by the City
Council at the time of budget adoption.
Financial or Budget Considerations:
The tax levy and budget presented at this meeting are the same as the levy originally certified to
Hennepin County. This raises the 2015 tax levy 2.5% higher than the 2014 tax levy.
Options: If time does not allow all interested parties to provide input or the City Council would like
more time to discuss the budget and/or tax levy, the vote can be postponed until December 8.
Recommendation / Action Requested: Staff recommends that the City Council hold the public hearing
and accept public input on the proposed budget and tax levy.
Next Steps and Timelines: The final General Fund budget and tax levy will be on the agenda for
approval after the public hearing at this meeting.
Connection to Vision / Mission: This item contributes to sound financial management by providing
effective city services at a reasonable price.
#3
MEETING TYPE
Special Meeting
City of Shorewood Council Meeting Item
Title / Subject: Adoption of the 2015 General Fund Budget and Property Tax Levy Collectible in 2015
Meeting Date: December 1, 2014
Prepared by: Bruce DeJong
CC: Bill Joynes
Attachment: Resolution
2014 General Fund Summary Budget
Policy Consideration:
Adoption of this resolution will allow staff to certify the budget and property tax levy to Hennepin
County as required by state law.
Background:
By statute, the City Council must annually approve a budget and property tax levy within five business
days of December 20. The 2014 General Fund Budget has been modified from the preliminary budget
adopted on August 26 in accordance with council and updated information on several expenditure
items. The budget discussed at the Truth-in-Taxation public hearing should be adopted, with any
modifications desired by the City Council.
Financial or Budget Considerations:
The adoption of this resolution records the City Council’s spending priorities for 2015 and the amount of
property taxes to be raised.
Options:
The City Council may choose to:
1.Adopt the budget and levy as presented at the 2.5% increase level.
2.Make additional changes and adopt the amended budget and levy.
Recommendation / Action Requested:
Staff recommends that the City Council adopt the resolution as submitted.
Next Steps and Timelines:
The final tax levy will be applied by Hennepin County to create property tax statements that will be
mailed in April, 2015, for collection on May 15 and October 15, 2015.
Connection to Vision / Mission:
This process contributes to sound financial management by providing financial resources to pay for
desired city services.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
CITY OF SHOREWOOD
RESOLUTION NO. 14-____
A RESOLUTION ADOPTING THE 2015 GENERAL FUND OPERATING BUDGET
AND APPROVING THE PROPERTY TAX LEVY COLLECTIBLE IN 2015
WHEREAS
, the 2015 Budget and property tax levies collectible in 2015 for the
City of Shorewood have been prepared and reviewed by the City Council; and,
WHEREAS
, the budget has been modified by the City Council to meet service delivery
goals; and,
WHEREAS
, the City Council held a Truth-in-Taxation public hearing on December 1,
2014, to receive public comment regarding the adoption of such budgets and property tax levies;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SHOREWOOD AS FOLLOWS
:
1.That a budget of $5,643,263 is adopted to pay for 2015 General Fund operations.
2.That the sum of $_________ is levied for 2014, collectible in 2015, upon taxable
property in the City of Shorewood.
3.That the City Administrator is hereby instructed to transmit a certified copy
of this resolution to the County Auditor of Hennepin County, Minnesota.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD
this 1st day of
December, 2014.
ATTEST:Scott Zerby, Mayor
____________________________
Jean Panchyshyn, City Clerk