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 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 %

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, ,808
1.25% of over $500,
Total Tax Capacity ,808
Times: Total 2019 Tax Rate* %
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* %
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, ,250
2% of value over $150, ,000
Equals: Total Tax Capacity 3,250
Times:
Total 2019 Tax Rate* %
Plus: State General Property Tax %
Total Tax Rate %
Equals: 2019 Property Tax $ 6,083
*Assumes Stearns County, City of Sartell, ISD 748, HRA, Transit

13. *This is what we projected at the time the preliminary levy
City Taxes at Prelim Tax Rate & No Value Increase:
ACTUAL 2018
2019 RATE if
TAX RATE
41.389%
% Value
41.870%
Annual
MARKET VALUE
City Tax
Change
Proposed Tax
$ Change
Residential
$150,000
$621
0.00%
$628 $7
$175,000
$724
$733 $9
$200,000
$828
$837
$225,000
$931
$942
$11
$250,000
$1,035
$1,047
$12
$275,000
$1,138
$1,151
$13
$300,000
$1,242
$1,256
$14
$325,000
$1,345
$1,361
$16
$350,000
$1,449
$1,465
Apartments
$1,000,000
$5,174
$5,234
$60
Commercial/Industrial
$100,000
$500,000
$3,828
$3,873
$45
$7,967
$8,060
$93
            
*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:
ACTUAL 2018
2019 RATE if
TAX RATE
41.389%
% Value
Annual
MARKET VALUE
City Tax
Change
Proposed Tax
$ Change
Residential
$150,000
$621
0.00% $0
$175,000
$724
$200,000
$828
$225,000
$931
$250,000
$1,035
$275,000
$1,138
$300,000
$1,242
$325,000
$1,345
$350,000
$1,449
Apartments
$1,000,000
$5,174
Commercial/Industrial
$100,000
$500,000
$3,828
$7,967
            
*This is where we are at now and what we are proposing for the final
2019 Budget and Property Tax Levy.*

17. 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

18. Any questions or comments?
The complete 2019 budget will be available on the City’s website.
Any questions or comments?
Contact Info:
Heidi Ostlie, Finance Director
(320) (direct)