CR 2000-142 Approve Resolution Authorizing A Tax Rate Increase For The 2000 Tax Levy, Collectible in 2001
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. September 5, 2000 o P K \ '" City Council Report 00-142
APPROVE RESOLUTION AUTHORIZING A TAX RATE INCREASE FOR THE 2000
TAX LEVY, COLLLECTIBLE IN 2001
Proposed Action
Staff recommends adoption of the following motion: Move that Resolution 00-058 "Authorizing
a tax rate increase for the 2000 tax levy, collectible in 2001" be adopted.
Adoption of this motion will satisfy a new law requiring cities with populations over 500 to hold
a public hearing and pass a resolution authorizing a tax rate increase,
Overview
Finance's interpretation of this new law is to notify taxpayers of a possible tax rate increase due
to a proposed increase in net tax capacity levy and to allow for discussion of this issue prior to
the public hearings on the final levy and budget adoption in December. The actual tax rate will
fluctuate depending on the net tax capacity value of the city and the achlal adopted 2001 budget
for the city.
. The required worksheet reflects an increase in non-G.O. debt levy of $669,545. Half of this
increase is related to personnel costs which make up 76% of the general fund expenditure budget.
The other half is a $342,000 special revenue fund levy which replaces the debt levy and is being
established to pay debt or to pay for infrastructure improvements of the city. With levy limits off
this year, it is an opportune time to restructure our levy to afford the city a higher levy limit in
the future, with the probability that levy limits will be imposed again. This new fund allows us
some flexiblilty to utilize the old debt levy for paying debt but also to pay for infrastructure
improvements of the city. The levy certification tax rate increase would allow the city to
continue providing it's current level of services and make the final payment for the Shady Oak
Beach improvements. The increase in net tax capacity levy is approximately 7.2% over the 2000
net tax capacity levy and represents 9% of 2000 general fund budgeted expenditures,
Staff Reco mmen dation
Staff is recommending that council adopt Resolution No. 00-096, authorizing a tax rate increase
for the 2000 tax levy, collectible 2001.
Supporting Information
. Resolution 00;)(
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. Lori'i{-Y~~er ~,-
Finance Director
. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 00-058
RESOLUTION AUTHORIZING A LEVY CERTIFICATION TAX RATE INCREASE FOR
THE 2000 TAX LEVY, COLLECTIBLE IN 2001
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, COUNTY OF
HENNEPIN, MINNESOTA, that the county auditor is authorized to fix a property tax rate for
taxes payable in the year 2001 that is higher than the tax rate calculated pursuant to
Milll1esota Statutes #204B.135 for the city for taxes levied in 1999, collectible in 2000.
Adoption of this resolution does not prohibit the city from certifying a final levy that will
result in no tax rate increase or a tax rate decrease.
BE IT FURTHER RESOLVED, that the City Clerk is hereby ordered and directed to
transmit a certified copy of this resolution to the County Auditor of Helll1epin County,
Minnesota.
. Adopted by the City Council ofthe City of Hopkins on this 5th day of September, 2000,
Eugene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
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