2024 Final Levy & Budget PresentationDECEMBER 4, 2023
Truth in Taxation
2024 Tax Levy and Budget
Property Taxes Calculation
Budget + Debt
Budget + Debt –Non property tax revenues = Levy for property tax
Assessed value X Rate = Tax
Levy for property taxes / tax capacity = rate
Tax –credits –refunds = Net Tax
Net Tax = Property Tax
Total Tax Levy Factors
1.Market Value
2.Tax Capacity
3.Property Class Rates
4.State Aids
5.County Budget/Tax Levy
6.School Operating Levy
7.School District voter Approved Debt Obligations
8.City Budget and Tax Levies
9.Special State Laws; I.e. Credits and Exclusions
Reason for tonight’s
meeting and only
item controlled by
City
Budget Process Overview
Planning (May –Aug.)
Review of timelines, key issues and financial outlook
Department Budget Requests (June –Aug.)
Administration/Finance review of department requests
Staff Recommended Budget
City Council Review (Aug. –Nov.)
Council Workshops
Set Preliminary Budget -Council Action (Sept.)
•September 18, 2023 City Council approved a preliminary levy of 16.04%
Truth in Taxation Notice
Final Review and Adoption of Budget (Dec.)
Truth-in-Taxation Hearing (proposed levy of 16.04%)
Final Budget and Levy -Council Action
Budget History
Historical Change in Total Levy (%)
Year Total Levy
2013 2.00%
2014 2.96%
2015 5.97%
2016 4.98%
2017 2.94%
2018 2.89%
2019 2.99%
2020 4.76%
2021 2.90%
2022 4.99%
2023 4.99%
Proposed 2024 16.04%
2024 Tax Levy
2023 Total Levy $4,758,894
2024 Total Levy $5,522,071
o Operations Levy $2,744,776
o Capital Levy $2,028,138
o Debt Levy $ 749,157
2023 to 2024 Change in Levy (16.04%)
o Debt Service Levy Increase 17.48% = $111,461
o General Levy Increase 8.95% = $225,439
o Capital Levy Increase 26.61% = $426,277
o Total Levy Increase 16.04% = $763,177
2024 Budget –Revenue
The Revenue side of the budget determines where the funding comes from to pay for city expenses.
We build the revenue budget as expenses are evaluated. Including determining the level of inflow we expect from:
Licensing and Permits
Other Agencies and Governments
Charges for Services
Other Misc. Sources
Tax Levy amounts are then determined by category to meet
the remaining funding required for operational needs, capital
improvements, and debt service.
2024 Budget –Revenue
2024 Revenue Changes (+/-)
Increase LGA: $208,467
Increase Gas Franchise Fee: $190,000 projection
Increase Fire Contract: $69,321
Decrease use of General Fund Reserves: (-$120,250)
2024 Expense Changes (+/-)
Increase Police Protection: $266,333 (28.04%)
Decrease Fire Department Operations: (-$34,532)
Increase Building Department: $34,850
Increase in Public Works –Streets: $70,590
Increase in Parks & Recreation: $93,183
Increase Capital: $426,277 (capital outlay)
Decrease in Economic Development: (-$12,000)
Where the Tax Dollars Go
2024 Taxable Market Value
Seeing the Expense and Revenue sides of the budget process gets us part of the way there –but there is more to the story…
BUDGET TAXABLE MARKET VALUE
Sources and Uses Basis for Levy Application
Revenue Property Values
Expense Residential (County Assessor)
Commercial / Industrial (County Assessor)
NET TAX CAPACITY
Formula applied to Taxable Market Value
Determined by State Including Homestead
Credits
Overall, the City of Albertville’s Net Tax Capacity increased 15.7%
Budgeted Levy Amounts and Net Tax Capacity ultimately determine the City’s Tax Rate.
2024 Tax Capacity Explanation
Tax capacity is calculated by multiplying the
property market value by the appropriate class
rate percentage.
Residential Homestead:
First $500,000 of value: 1.00%
Value over $500,000: 1.25%
Commercial/Industrial:
First $150,000: 1.50%
Value over $150,000: 2.00%
2024 Residential City Tax Example
Residential
2023 taxes
payable
2024 taxes payable
(no change in value)
2024 taxes payable
($50k change in value)
Taxable Value $300,000.00 $300,000.00 $350,000.00
Res. Homestead <$500k 1.00%1.00%1.00%
Res. Homestead >$500k 1.25%1.25%1.25%
Tax Capacity $3,000.00 $3,000.00 $3,500.00
City Tax Capacity Rate 41.73%41.85%41.85%
City Taxes Owed $1,251.90 $1,255.50 $1,464.75
2024 Commercial City Tax Example
Commercial 2023 taxes payable
2024 taxes payable (no change in
value)
2024 taxes payable
($500k change in value)
Taxable Value $1,500,000.00 $1,500,000.00 $2,000,000.00
First $150k 1.5%1.50%1.50%1.50%
Over $150k 2.0%2.00%2.00%2.00%
Tax Capacity $29,250.00 $29,250.00 $39,250.00
City Tax Capacity Rate 41.73%41.85%41.85%
City Taxes Owed $12,206.03 $12,241.13 $16,426.13
2024 Budget & Levy Summary
2024 Total Budget (with capital) = $6,633,524
2024 Total Levy $5,522,071
Debt Service Levy = $749,157 (increase of $111,461)
General Operations Levy = $2,744,776 (increase of $225,439)
Capital Levy = $2,028,138 (increase $426,277)
Total Levy Increase= $763,177 (increase 16.04%)