1. City of Thief 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 FALLS MARKET VALUE
CITY OF THIEF RIVER FALLS MARKET VALUE

8. CITY OF THIEF RIVER FALLS TAX CAPACITY VALUES

9. CITY OF THIEF RIVER FALLS 2015-2019 PROPERTY TAX LEVY
Proposed
2015 Levy
2016 Levy
2017 Levy
2018 Levy
2019 Levy
General Fund Levy
$ 1,452,281
$ 1,600,107
$ 1,663,597
$ 1,792,344
$ 1,876,028
Bonded Debt Levy
$ ,000
$ ,630
$ ,625
$ ,483
NET TAX LEVY - LOCAL
$ 1,562,281
$ 1,874,737
$ 1,987,222
$ 2,115,969
$ 2,245,511
Percent Increase/Decrease
-Local Levy
3.0%
20.0%
6.0%
6.48%
6.12%
2019 adjusted levy $2,186,827
3.35%

10. CITY OF THIEF RIVER FALLS PROPERTY TAX LEVY HISTORY

11. CITY OF THIEF RIVER FALLS LOCAL TAX RATE
2016
2017
2018
Proposed
2019
TRF**
43.846%
42.930%
42.861%
Pennington County
58.006%
65.737%
66.058%
67.011%
ISD #564
33.243%
32.735%
33.889%
34.987%
Special Tax Districts*
4.435%
4.548%
5.859%
5.938%
Total % % % %
** Proposed rate from County %
after levy change approximately %
*Red Lake Watershed District, NW Regional Development Commission, and NW Minnesota Multi-County HRA   

12. CITY OF THIEF RIVER FALLS LOCAL TAX RATE COMPARISON

13. CITY OF THIEF RIVER FALLS LOCAL GOVERNMENT AID

14. City of Thief River Falls
2019
BUDGETS

15. CITY OF THIEF RIVER FALLS MUNICIPAL CORPORATION
GOVERNMENTAL FUNDS
PROPRIETARY FUNDS
GENERAL FUND
ENTERPRISE FUNDS
DEBT SERVICE FUNDS
Liquor Dispensary
SPECIAL REVENUE FUNDS
Electric
CDAB Revolving Fund
Water
Tax Increment Financing Districts
Waste Water
Greenwood Cemetery Fund CAPITAL PROJECT FUNDS
Storm Water
Splash Park Fund
Swimming Pool Fund
Multi-Events Center Fund
Train Canopy Fund
TRF Area K-9 Fund
                                            

16. CITY OF THIEF RIVER FALLS GENERAL FUND REVENUE INCLUDING DEBT

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

18. CITY OF THIEF RIVER FALLS ENTERPRISE FUND REVENUE

19. CITY OF THIEF RIVER FALLS ENTERPRISE FUND EXPENSES

20. City of Thief River Falls
CONCLUSION

23. CITY OF THIEF RIVER FALLS SUMMARY
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?