City of Thief River Falls

1. City ofThief River Falls 2019 PROPERTY TAX AND BUDGET INFORMATION

2. City of Thief River Falls PROPERTY TAXES

3. Why Property Taxes Vary from Year to Year • Changes in valuation of your property • Spending decisions and mandated services of cities, counties, school districts, and special taxing districts • Special assessments may be added to your property tax bill • Voters approve a referendum

4. Why Property Taxes Vary from Year to Year • State Legislature may change class rates altering portion of tax base paid by different types of properties • State General Property Tax may change for commercial/industrial and seasonal/recreational property classes (State changed in 2018 to not tax the first $100,000 on commercial/industrial class) • Federal and State mandates and aid may change (Local Government Aid or County Program Aid) • Other State Law changes may adjust tax base

5. GLOSSARY OF TERMS MARKET VALUE: An assessor’s estimate of what property would be worth if it were sold. CLASS RATES: Depending on use, properties have different class rates that determine the properties’ relative share of the property tax burden as well as the property’s tax capacity. These class rates are established by the State of Minnesota. TAX CAPACITY: The tax capacity of a property is determined by multiplying its class rate by the property’s assessed market value.

6. GLOSSARY OF TERMS PROPERTY TAX LEVY: The City certifies in dollars an amount necessary to raise adequate revenue for the operating budget when combined with other expected revenues. LOCAL TAX RATE: To compute the tax rate, the city’s certified property tax levy is divided by the city’s total tax capacity. LOCAL GOVERNMENT AID (LGA): A state government revenue sharing program for cities with low property wealth or high service burdens that is intended to provide an alternative to the property tax.

7. CITY OF THIEF RIVER FALLSMARKET VALUE

8. CITY OF THIEF RIVER FALLSTAX CAPACITY VALUES

9. CITY OF THIEF RIVER FALLS2015-2019 PROPERTY TAX LEVY

10. CITY OF THIEF RIVER FALLSPROPERTY TAX LEVY HISTORY

11. CITY OF THIEF RIVER FALLSLOCAL TAX RATE

12. CITY OF THIEF RIVER FALLSLOCAL TAX RATE COMPARISON

13. CITY OF THIEF RIVER FALLSLOCAL GOVERNMENT AID

14. City of Thief River Falls 2019 BUDGETS

15. CITY OF THIEF RIVER FALLSMUNICIPAL CORPORATION

16. CITY OF THIEF RIVER FALLSGENERAL FUND REVENUE INCLUDING DEBT

17. CITY OF THIEF RIVER FALLS GENERAL FUNDS EXPENDITURES INCLUDING DEBT

18. CITY OF THIEF RIVER FALLSENTERPRISE FUND REVENUE

19. CITY OF THIEF RIVER FALLSENTERPRISE FUND EXPENSES

20. City of Thief River Falls CONCLUSION

23. CITY OF THIEF RIVER FALLSSUMMARY There was a: • The 2019 proposed tax levy was set at 6.12%. With the estimated tax capacity not being reached, the Budget and Finance Committee reduced budget and levy to a 3.35% increase which will result in a estimated increase in tax rate by 1.009% • Bonded Debt increased by $45,858 • Continued investment in city-wide capital expenditures of over $3 million • 4.1% increase to health insurance premiums • $4,448 increase to Local Government Aid funding • The $50,000 transfer from the General Fund to the Cemetery Fund remains • Normally in the off year election the budget would be zero. In 2019 $25,000 is needed for new machines. • Budgeted use of reserves for General Fund and Debt in the amount of $382,184

24. CITY OF THIEF RIVER FALLS • The City of Thief River Falls’ Final levy and Budget will be voted on December 18th , 2018 at the City Council meeting. QUESTIONS?