WRIGHT COUNTY BOARD AGENDA NOVEMBER 28, 2017 LEE …

WRIGHT COUNTY BOARD AGENDA NOVEMBER 28, 2017

Interpreter Services for the hearing impaired will be provided upon written request.

6:00 P.M. PLEDGE OF ALLEGIANCE

WELCOME & INTRODUCTIONS – Commissioner Borrell, Chair, Wright County Board

LEE KELLY, COUNTY COORDINATOR

1. 2018 Budget Overview.

BOB HIIVALA, AUDITOR/TREASURER

1. Understanding Your Property Tax Statement.

2. 2018 Revenues and Certified Levy.

PUBLIC COMMENT ON THE 2018 BUDGET/CERTIFIED LEVY

GUIDELINES FOR PUBLIC COMMENT:

1. Audience participants are requested to limit comments to 3 minutes. Please goto the podium to state your name and address for the record.

2. Every person wishing to comment on the 2018 Budget/Certified Levy will beheard initially before repeat opportunities are extended.

3. There will be a 15‐minute break at the top of every hour.

7:00 P.M. BREAK

7:15 P.M. RESUME PUBLIC COMMENT (IF NEEDED)

1

LEE R. KELLY County Coordinator

Equal Opportunity / Affirmative Action Employer

COUNTY OF WRIGHT 10 2nd Street NW, RM 235

Buffalo, Minnesota 55313-1188 www.co.wright.mn.us

Tel: (763) 682-7378 1-800-362-3667

Fax: (763) 682-6178

COMMISSIONERS

CHRISTINE HUSOM First District

DAREK VETSCH Second District

MARK DALEIDEN Third District

MICHAEL POTTER Fourth District

CHARLES BORRELL Fifth District

Wright County Board of Commissioners Wright County Government Center 10 2nd Street NW Buffalo, MN 55313

I am pleased to present the 2018 recommended budget for Wright County. The annual budget is the product of many hours of staff time in reviewing and compiling information and financial data. The County Board conducted budget sessions with all County departments to review the requests prior to adopting the preliminary budget and levy in September.

Wright County continues to grow in population. Current demographic numbers indicate Wright County is the 7th fastest growing county in the state. The population has grown 6.3% from 2010 to 2016. The growth of the County creates new challenges in maintaining necessary services and meeting the increasing needs of residents in areas such as infrastructure, public safety, and health and human services.

Below is an overview of some of the highlights of the 2018 budget.

The 2018 budget reflects the adoption of the ½% local option sales tax for transportation. The County is taking a proactive stance in addressing deficient roads and bridges in the coming years. The revenues generated and expenditures designated for these projects are reflected equally in the budget.

During the budget sessions the County Board felt that there was a need to invest in staffing. Additional positions are proposed in several departments. A key area of focus was in the areas of technology and the staff to support technology related projects.

We are recognizing revenue stemming from the boarding of prisoners from other jurisdictions. Requests for contracted police services have also increased in 2018. While we are recognizing additional revenue in these areas, we are also noting the offsetting increase in expenses to provide these services.

The County plans to issue bonds for the construction of a new courts facility. This facility is to be built as an addition to the existing Jail/Law Enforcement Center. We have recognized the debt service that will result from the issuance of the new bond in early 2018. A study is currently underway to identify the space needed to meet the needs of the remainder of the County’s departments for the next twenty

2

years. In addition the study seeks to determine the most cost effective use of the County’s current facilities.

Our mission is to provide our citizens with responsive government and quality services in a fiscally responsible manner through innovation, leadership, and dedication. The proposed budget allows us to continue to provide the current level of service as well as meet the challenges of the coming year.

Sincerely,

Wright County Coordinator

3

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TAXPAYER(S): John and Mary Johnson 123 Pine Rd S Spruceville, MN 55555-5555

The time to provide feedback onPROPOSED LEVIES is NOW

It is too late to appeal your value without going to Tax Court.

Spruce CountyJane Smith, Auditor-Treasurer

345 12th Street East, Box 78Spruceville, MN 55555-5555

(555) 345-6789www.co.spruce.mn.us

THIS IS NOT A BILL. DO NOT PAY.PROPOSED TAXES 2018

Proposed Property Taxes and Meetings by Jurisdiction for Your PropertyContact Information Meeting Information Actual 2017 Proposed 2018 7State General Tax No public meeting $0 $0

County of Spruce December 8, 7:00 PM $438.06 $484.18Spruce County Courthouse123 Spruce StSpruceville, MN 55555www.co.spruce.mn.us (555) 123-4567

City of Spruceville December 1, 6:30 PM $273.79 $312.06Mayor’s Office Spruceville City Hall456 Spruce StSpruceville, MN 55555www.ci.spruceville.mn.us (555) 123-7654

Spruceville School District 999 December 4, 7:00 PM 150 1st St N Spruceville High School CafeteriaSpruceville, MN 55555www.spruceville.k12.mn.us(555) 123-6789Voter Approved Levies $289.35 $296.68Other Levies $340.11 $374.60

Your school district was scheduled to hold a referendum at the November general election. If the referendeum was approved by the voters, the school district’s voter approved property tax for 2018 may be higher than the proposed amount shown on this notice.

Total excluding any special assessments $1,341.31 $1,455.52 9.0%

VALUES AND CLASSIFICATION

Taxes Payable Year 2017 2018 Estimated Market Value $125,000 $150,000Homestead Exclusion $ $23,800Taxable Market Value $125,000 $126,200Class Res NHmstd Res Hmstd

PROPERTY TAX STATEMENT

Coming in 2018

Step

1

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3Property InformationPIN Number: Property Address: 01.234.56.789.R1 789 Pine Rd S Spruceville, MN 55555Property Description:Lot 1, Block 1, Spruce Acres Subdivison

PROPOSED TAXProperty Taxes before credits $1,467.52School building bond credit $ 12.00 Agricultural market value credit Other credits ________Property Taxes after credits $1,455.52

5

Your local units of government have proposed the amount they will need to levy in 2018.

The following circumstances could change these amounts: • Upcoming referenda• Legal judgments• Natural disasters• Voter-approved levy limit increases, or • Special assessments

Your county commissioners, school board, city council (if your property is located in a city with a population over 500), and metropolitan special taxing district will soon be holding meetings to discuss the 2018 budgets and proposed 2018 property taxes. (The school board will discuss the 2017 budget.) You are invited to attend these meetings to express your opinion.

What Else Should You

Know?

6

WRIGHT COUNTY PROPOSED 2018 BUDGET

General Government20%

Public Safety23%

Highways and Streets (Road & Bridge)

9%

Human Services20%

Public Health3%

Culture and Recreation4%

Conservation of Natural Resources

1%

Miscellaneous2%

Debt Service5%

Streets and Highway Construction

13%

Where it goes

Property Taxes50%

Other Taxes4%

General Purpose Aids4%

State Grants14%

Federal Grants12%

Charges for Services11%

Interest/Gifts/Contrib1%

Miscellaneous4%

Where it comes from

Program Expenses6%

Personnel Services52%

Services and Charges5%

Repairs/Maint/Travel18%

Supplies2%

Highway4%

Capital Outlay4%

Debt Service6%

Miscellaneous3%

How the budget is spent

7

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9

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10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

Wrig

ht Cou

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venu

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dget by Type

2016 Budget

2016 Actual

2017 Budget

2018 Budget

10

2017 2018 2017 2018 2017 2018

Class Rate 1.00% 1.00% Class Rate (0‐150,000) 1.50% 1.50% Class Rate (0‐1,940,000) 0.50% 0.50%

Tax Capacity 2,776 2,776 Class Rate (150,000+) 2.00% 2.00% Class Rate (1,940,000+) 1.00% 1.00%

Tax Capacity 5,738 5,738 Tax Capacity 774 774

County Tax Rate 39.599% 39.921% County Tax Rate 39.599% 39.921% County Tax Rate 39.599% 39.921%

County Tax 1,099.27 1,108.21 County Tax 2,272.19 2,290.67 County Tax 306.50 308.99

Difference 8.94 Difference 18.48 Difference 2.49

2017 2018 2017 2018 2017 2018



Tax Capacity 4,250 4,250 Tax Capacity 1,741 1,741


County Tax 607.84 612.79 County Tax 1,682.96 1,696.64 County Tax 689.42 695.02


2017 2018 2017 2018 2017 2018





County Tax 931.76 939.34 County Tax 3,662.91 3,692.69 County Tax 2,375.94 2,395.26


2017 2018 2017 2018 2017 2018





County Tax 1,255.29 1,265.50 County Tax 5,642.86 5,688.74 County Tax 4,078.70 4,111.86


Residential Homestead $288,800 Commercial $324,400 Agricultural $154,800

Market Value Exclusion ($11,200)

Taxable Market Value $277,600

Residential Homestead $175,000 Commercial $250,000 Agricultural $348,200



Residential Homestead $250,000 Commercial $500,000 Agricultural $1,200,000


$325,000 Commercial $750,000 Agricultural $2,000,000


Tax Impact Comparison with Prior Year (stagnant values)



Residential Homestead

11

A publication of the Association of Minnesota Counties

THE MARKET VALUE OF A PROPERTY MAY CHANGE.• Eachparcelofpropertyisassessedatleastonceeveryfiveyearsandasalesratiostudyisdone todetermine if theproperty isassessedsimilarly to likeproperties. Ifnot, theCommissionerofRevenuemayissuean‘order’thatwouldaffectthetaxablevalueofaparcel.

• Additionsandimprovementmadetoapropertygenerallyincreasesitsmarketvalue.

THE MARKET VALUE OF OTHER PROPERTIES IN YOUR TAXING DISTRICT MAY CHANGE, SHIFTING TAXES FROM ONE PROPERTY TO ANOTHER. • If themarket value of a property increasesmore or less than the average increase ordecreaseinataxingdistrict,thetaxesonthatpropertywillalsochange.

• Newconstructioninataxingdistrictincreasesthetaxbaseandwillaffectthedistrict’staxrate.

THE STATE GENERAL PROPERTY TAX MAY CHANGE. • ThestatelegislaturedirectlyappliesaStateGeneralPropertyTaxtocommercial/industrialandseason/recreationalpropertyclasses.

Fourteen ReasonsWHY PROPERTY TAXES VARY

FROM YEAR TO YEAR

12


THE CITY BUDGET AND LEVY MAY CHANGE.• Eachyear,citiesreviewtheneedsandwantsoftheircitizensandhowtomeetthoseneedsandwants.Thisiscalled‘discretionaryspending’inthecitybudget.Alsoincludedinthebudget isnon-discretionaryspendingwhich is requiredbystateand federalmandatesandcourtdecisionsandorders.

THE TOWNSHIP BUDGET AND LEVY MAY CHANGE.• EachMarch,townshipssetthelevyandbudgetforthenextyear.

THE COUNTY BUDGET AND LEVY MAY CHANGE. • Eachyear,countiesreviewtheneedsandwantsoftheircitizensandhowtomeetthosediscretionaryneedsandwants. Inaddition,alsoincludedinthecountybudgetisnon-discretionary spending which is required by state and federal mandates and courtdecisionsandorders.Asmuchassixtytoeighty-fivepercentofthecountyexpendituresareusedtodelivermandatedservices.

THE SCHOOL DISTRICT’S BUDGET AND LEVY MAY CHANGE.• TheLegislaturedeterminesbasicfundinglevelsforK-12educationandmandatesservicesthatschoolsmustperform.Onaverage,approximatelyseventypercentofschoolcostsarepaidbythestate.

• Local school districts set levies for purposes including safe school and communityeducation,etc.

A SPECIAL DISTRICT’S BUDGET AND LEVY MAY CHANGE.• SpecialdistrictssuchastheMetropolitanCouncil,hospitaldistricts,watersheddistricts,drainagedistricts,etc.setleviestobalancetheirbudgets.

SPECIAL ASSESSMENTS MAY BE ADDED TO YOUR PROPERTY TAX BILL. • Waterlines,curbandgutter,andstreetimprovementsthatdirectlybenefityourpropertymaybefunded,inwholeorinpart,throughaspecialassessmentthatisaddedtoyourtaxbill.

13


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

• Referendum leviesmay be spread on themarket value or the tax capacity of a propertydependingonprocessandtypeofreferendumlevy.

FEDERAL AND STATE MANDATES MAY HAVE CHANGED. • Boththestateandfederalgovernmentsrequirelocalgovernmentstoprovidecertainservicesandfollowcertainrules.Thesemandatesoftenrequireanincreaseinthecostandlevelofservicedelivery.

AID AND REVENUE FROM THE STATE AND FEDERAL GOVERNMENTS MAY HAVE CHANGED.• Eachyearthestate legislaturereviewsandadjuststhe levelof fundingforavarietyofaidsprovidedto localgovernments includingLocal GovernmentAidandCountyProgramAid. Theformulasforhowaidisdeterminedanddistributedamonglocalgovernmentsmayhavechanged.

• Whiledirectaidandrevenuefromthefederalgovernmenttolocalgovernmentshasdeclinedgreatlyinrecentyears,federalrevenuecontinuestobeakeyportionofthelocalgovernmentrevenuestreamandthatrevenuestreammayhavechanged.

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

OTHER STATE LAW CHANGES MAY ADJUST THE TAX BASE. • Fiscaldisparities,personalpropertytaxesonutilityproperties,limitedmarketvalue,andtaxincrementfinancingareexampleoflawsthataffectpropertytaxes.

14

CATEGORICAL AID: Aidgiventoalocalunitofgovernmenttobeusedonlyforaspecificpurpose.

CIRCUIT BREAKER: See“PropertyTaxRefund.”

CLASS RATES: Thepercentofmarketvaluesetbystatelawthatestablishestheproperty’staxcapacitysubjecttothepropertytax.

COUNTY PROGRAM AID: Statepropertytaxreliefaidtocounties,distributedwith a formulabasedonneeds (householdson foodstamps, ageof thepopulation,numberofseriouscrimes)andtaxbaseequalizationforcountieswithsmallertaxbases.

EDUCATION AID: ThetotalamountofstatedollarspaidforK-12education.Thisaidispaidtotheschooldistricts.

FISCAL DISPARITIES: AprogramintheTwinCitiesmetropolitanareaandontheironrangeinwhichaportionofthecommercialandindustrialpropertyvalueofeachcityandtownshipiscontributedtoataxbasesharingpool.Eachcityandtownshipthenreceivesadistributionofpropertyvaluefromthepoolbasedonmarketvalueandpopulationineachcity.

GENERAL PURPOSE AID: Aidgiventounitsofgovernmenttobeusedattheirowndiscretion.ExamplesareLocalGovernmentAidandCountyProgramAid.

HIGHWAY AID:Motorfuelstaxandlicensetabmoneythestatedistributestocounties,citiesandtownshipsforhighwaysandbridges.

HOMESTEAD: Aresidenceoccupiedbytheowner.

INDIVIDUAL INCOME TAX: Astatetaxontheincomeofresidentsandnon-residentswithMinnesotasourcesofincomethatisdepositedintothestategeneralfund.

LEVY: Theimpositionofatax,associatedwiththepropertytax.

LEVY LIMIT: Theamountalocalunitofgovernmentispermittedtolevyforspecificservicesunderstatelaw.

LIMITED MARKET VALUE:Astateimposedlimitonpropertyvalueincreasesforthepurposeofcalculatingpropertytaxes.

LOCAL GOVERNMENT AID (LGA): A stategovernment revenue sharingprogramforcitieswithlowpropertywealthorhighserviceburdensthatisintendedtoprovideanalternativetothepropertytax.

LOCAL SALES TAX:Alocaltax,authorizedbythestate,leviedonthesaleofgoodsandservicestobeusedforspecificpurposesbythelocalgovernment.

LOCAL TAX RATE: The tax rateusuallyexpressedasapercentageof taxcapacity,usedtodeterminethepropertytaxdueonaproperty.

MARKET VALUE: Anassessor’sestimateofwhatpropertywouldbeworthifitweresold.

MARKET VALUE AGRICULTURE CREDIT: Astatecredittoreducethepropertytaxpaidbyagriculturalhomesteadstothelocaltaxingjurisdiction.

MARKET VALUE HOMESTEAD CREDIT:TheMarketValueHomesteadCredit(MVHC)programwaseliminatedduringthe2011SpecialSessionfortaxespayablein2012andbeyond.Thecreditwasreplacedwithamarketvalueexclusion(definedbelow).Thisguidedescribesthe(MVHC)reimbursementprogram.Theprogramwasdesignedtoprovidestate-paidpropertytaxrelieftoownersofcertainqualifyinghomesteadproperty.

MARKET VALUE HOMESTEAD EXCLUSION:Theexclusionreducesthetaxablevalueofqualifyinghomesteads.Despitethedecreasedtaxablevalue,taxeswill increaseonmostpropertiesincludingapartmentsandbusinessesandis independentof anyaction takenby localgovernments. Theexclusionprovidesforaportionofeachhome’smarketvaluetobeexcludedfromitsvalueforpropertytaxcalculations.TheamountofvalueexcludedisdirectlyproportionaltotheMVHCthehomereceivedundertheoldlaw.Inthisway,eachhomecontributesa smalleramount toeach taxing jurisdiction’s taxbase.Thetaxratetendstobealittlehigherbecauseofthereducedtaxbase,whichiswhytaxesincreasefortheothertypesofproperty.Thetaxburdenonanygivenhomesteadcouldbelesserorgreaterdependinguponthemixofpropertiesinthejurisdictionandthelevelofthetaxrate.

PROPERTY TAX: Ataxleviedonanykindofproperty.

PROPERTY TAX REFUND: Apartialpropertytaxrefundprogramfor thosewhohavepropertytaxesoutofproportionwiththeirincome.Thisprogramisavailabletohomeownersandrenters.

S A L E S R A T I O S T U D Y : A s t u d y c o n d u c t e d b y t h eDepartment of Revenueof openmarket property sales,which is thencomparedtolocalassessmentstoensurethatlocalassessmentsadequatelyreflectthemarket.

STATE GENERAL PROPERTY TAX: Astate-imposedpropertytaxoncommercial,industrial,andseasonalrecreationalproperties.

STATE SALES TAX: Astatetax(6.5%)leviedonthesaleofgoodsandservicesthatisdepositedintothestategeneralfund.

TAX CAPACITY:Thevaluationofpropertybasedonmarketvalueandclassrates,onwhichpropertytaxesaredetermined.

RevisedOctober2014

Glossary of Terms

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Documents

WRIGHT COUNTY BOARD AGENDA NOVEMBER 28, 2017 LEE …