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2019 Budget and Levy

2019 Budget and Levy. What do your property tax dollars pay for?. 2019 General Fund Revenue and Expenditure Budget. SARTELL’S 2019 BUDGET & LEVY

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2019 Budget and Levy

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  1. 2019 Budget and Levy

  2. What do your property tax dollars pay for?

  3. 2019 General Fund Revenue and Expenditure Budget

  4. SARTELL’S 2019 BUDGET & LEVY • Follows the City’s Financial Management Plan to help hold down the city tax rate. 2019 does not add personnel but fully funds partial year additions in 2018. • 2019 budget and levy also provide the required funding toward the long planned East Side Street Reconstruction Project and Public Safety Facility construction.

  5. WHY THIS BUDGET AND LEVY FOR 2019? • This is a balanced, sufficient, yet frugal budget. • We are committed to holding down taxes, but we also prioritize public safety and streets – both of which play heavily into our Financial Management Plan and budget priorities. • Unlike our neighbors, Sartell has no gas franchise fee and no street light utility. In 2018 Sartell received about $209,000 in LGA while St. Joseph received almost $1 million and Sauk Rapids received over $2 million.

  6. SARTELL’S 2019 BUDGET & LEVY • The City’s Financial Management Plan funds the repayment of new and existing debt over time while maintaining a stable tax rate. • We were able to accomplish this by layering in new debt as old debt was being retired. • This helps keep the tax impact of those projects at a minimum for property owners.

  7. TAX RATE The County Auditor takes all of the taxable properties in the City, applies the State class rates, and adds it all together to arrive at the total tax capacity the City has to tax on that year. The Council sets the final levy and the result is the City tax rate: 2019 City Property Tax Levy $ 6,570,145 Divided by: 2019 Tax Capacity $15,873,877 Equals: Tax Rate 41.39%

  8. Sartell continues to have the lowest city tax rate when compared to neighboring communities.

  9. Minnesota Property Tax System • Assessor determines value as of January 1 for following year’s taxes • Property owners have opportunity to dispute valuation in spring of each year through open book review with assessor and/or appeal to County and/or tax court • Not taxed directly on value, but rather on TAX CAPACITY. • Different property types have different CLASS RATES. Multiplying the taxable property value by its class rate arrives at its tax capacity • Residential homestead 1% of first $500k, then 1.25% • Commercial/Industrial 1.5% of first $150k, then 2% • Apartment (4 or more units) 1.25%

  10. Residential Homestead Property Tax Estimated Market Value $200,000 Less: Homestead MV Exclusion $-19,240 Taxable Market Value $180,760 Tax Capacity 1% of the first $500,000 1,808 1.25% of over $500,000 0 Total Tax Capacity 1,808 Times: Total 2019 Tax Rate* 146.18% Equals: 2019 Property Tax $ 2,642 *Assumes Stearns County, City of Sartell, ISD 748, HRA, Transit

  11. Apartment Property Tax Estimated Market Value $200,000 Tax Capacity 1.25% of the value 2,500 Times: Total 2019 Tax Rate* 146.18% Equals: 2019 Property Tax $ 3,655 *Assumes Stearns County, City of Sartell, ISD 748, HRA, Transit

  12. Commercial Property Tax Estimated Market Value $200,000 Tax Capacity 1.5% of the first $150,000 2,250 2% of value over $150,000 1,000 Equals: Total Tax Capacity 3,250 Times: Total 2019 Tax Rate* 146.18% Plus: State General Property Tax 41.00% Total Tax Rate 187.18% Equals: 2019 Property Tax $ 6,083 *Assumes Stearns County, City of Sartell, ISD 748, HRA, Transit

  13. City Taxes at Prelim Tax Rate & No Value Increase: *This is what we projected at the time the preliminary levy was set in September.*

  14. City Taxes after reduced tax base & budget cuts: *This is where we were actually at after we received property valuations from the county. This info was used to prepare the proposed 2019 tax statements that property owners received from the County in November.*

  15. City Taxes if Flat Tax Rate & No Value Increase: *This is where we are at now and what we are proposing for the final 2019 Budget and Property Tax Levy.*

  16. Property Tax Relief Programs • Homestead Market Value Exclusion • Values up to $413,800 • Property Tax Refund • Targeting Property Tax Refund (aka Special Property Tax Refund) • Property Tax Increase of over 12% and $100 • Disabled Veteran Homestead Value Exclusion • Senior Citizens Property Tax Deferral Program • Payment Plans – check with your county auditor • Confession of Judgment • Delinquent residential homestead property tax

  17. The complete 2019 budget will be available on the City’s website. http://www.sartellmn.com Any questions or comments? Contact Info: Heidi Ostlie, Finance Director heidi.ostlie@sartellmn.com (320) 258-7318 (direct)

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