Budget workshop scheduled Aug. 11

The City Council will review the proposed 2004 city budget at a workshop meeting on Monday, Aug. 11, at City Hall. The meeting, which is open to the public, begins at 4 p.m. and continues into the evening until all department budgets have been discussed.

"The workshop is when citizens should get involved if they want to have meaningful input in the budget process," said City Administrator Barry Johnson.

According to Johnson, the proposed 2004 budget reflects a decrease in the General Fund budget, which is the city's primary operating fund. The decline is mainly due to the loss of $1,008,798 in state aid and to a state-imposed limit on the tax levy, with no allowance for growth or inflation.

As a result, the General Fund budget is recommended to be $20,873,432. This is a decrease of $455,129 from the amended city budget for 2003.

Property taxes at $14.4 million account for 69.3 percent of the General Fund. Other sources of revenue include permit fees from new home and business construction, charges for various services, miscellaneous revenues, and transfers from other funds.

General Fund estimated revenues

Total city expenditures for 2004 are estimated at $35,671,209. This includes the General Fund and all other city funds, such as the central garage, storm water utility, emergency medical services, Eagle Valley Golf Course, Bielenberg Sports Center, and others.

Recommended 2004 expenditures - all budgeted funds

Levy and taxes
The law adopted by the Minnesota legislature allows the city to recover 60 percent of lost state aid through an increased property tax levy. The budget being proposed would levy back the maximum amount allowed by law.

The tax levy being proposed will actually produce a reduction in the city's property tax rate for 2004. For most Woodbury homeowners, however, this decline in tax rate is more than offset by the increase in their property's value. For example, the average single-family home, valued at $247,196, will experience a 13.7 percent increase in its market value. Minnesota law limits the increase in the taxable value of property to 12 percent; with that increase, city taxes on the average value home will increase an estimated $55, or 6.9 percent.

Depending on the school district in which you reside, city taxes for 2004 on the average value home are estimated to be $854 to $859. City taxes represent a portion of the total property tax bill. School, county, and special tax district levies make up the remainder.

Estimated city taxes for 2004

It's important to note that market values, and thus taxes, do not increase the same for all properties. If a property's market value increase is less than 12 percent, the increase in city taxes will be lower than 6.9 percent. The tax increase may be higher than 6.9 percent if a property has a market value increase due to improvements that add value, such as refinishing a basement or adding a three-season porch.

Expenditures
The 2004 General Fund budget contains no new staff positions. Personal services are proposed to increase 4.5 percent. These increases reflect:

• the need to include full-year funding for positions that started in mid-2003
• insurance increases
• step and longevity increases
• a one percent cost of living adjustment
• funding for elections staff, and
• increased fire relief retirement fund contribution

Operating expenses for 2004 are essentially unchanged. There are no major new programs proposed for 2004. The only new area of activity is elections, which occur every two years.

General Fund - Resume of expenditures

Water and sewer rates
The 2004 budget proposes increases in water and sewer rates. The water portion of the utility bill is going up because of the addition of funding to create a financing source for replacement of failing water and sewer lines. The change will result in a 13 percent increase to rates, averaging $2.65 per quarter for the typical single-family utility customer. Water rates were last raised in 1998, and a conservation rate increase for usage that exceeds 30,000 gallons per quarter was adopted in 2001.

Sewer rates also are proposed to increase by 13 percent. The hike will amount to an additional $5.12 per quarter for the average single-family sewer bill. Sewer rates were last increased in 1996.

Budget process
State law requires the City Council to adopt the maximum tax levy by mid-September. After that time, the levy can decrease but it cannot increase.

Woodbury's proposed levy will be used by Washington County to calculate the estimated taxes that will appear on truth-in-taxation notices mailed to all property owners in mid-November. These notices also will contain the projected tax of other jurisdictions, such as the school district, the county, and special taxing districts. Public hearing dates for all jurisdictions also are published on these notices.

In late November or early December, a public hearing on the budget will be scheduled, and, subsequently, the City Council will adopt the 2004 city budget. This too is in accordance with state law.

Budget summaries are available from the Finance Department at Woodbury City Hall. The information (in Microsoft Excel format) also is available by e-mail. Contact the Finance Department at (651) 714-3503 or by e-mail at finance@ci.woodbury.mn.us.

The full budget document may be reviewed in the Finance Department at City Hall. It also is available at the R.H. Stafford (Washington County) Library, 8595 Central Park Place, Woodbury.

• Where Your Taxes Go (City, County, School District, etc.)
• Residential Tax Changes Examined
• Property Tax Estimator
• 2004 Proposed Budget