Item 6D. Resolution Approving 2027 Preliminary Tax Levy
Superintendent's Recommendation:
MOTION TO ADOPT RESOLUTION NO. 26-14 CERTIFYING THE PROPOSED PROPERTY TAX LEVY AND ADOPTING A PRELIMINARY GENERAL FUND BUDGET FOR 2027.
Prepared By: Shaan Hamilton, Chief Financial Officer
Background:
Commissioners are being asked to approve a preliminary 2027 tax levy, which sets the maximum amount the Park District can levy in taxes for the upcoming year. Following further budget discussions in October and November, the Board will adopt a budget and final levy in December. The final levy can be lower than the preliminary levy, but not higher.
The Park District is one of many agencies that levy property taxes on suburban Hennepin property owners. In addition to the Park District, cities, Hennepin County, local school districts, watershed organizations, Metropolitan Council, Metropolitan Mosquito Control District, and others are part of the property tax system. The Park District's tax levy accounts for two to three percent of a resident’s property tax bill. Hennepin County, the local city, and the local school district account for the majority of a property’s tax bill.
The amount of taxes levied (the total dollar amount of taxes needed to operate) is the only amount in the total property tax system that the Park District can control. All other inputs into the property tax system, including property valuation, tax capacity rates, fiscal disparities, and tax rates are determined either by state law or the city/county assessor.
The Park District’s property tax levy has two components: the operating levy and the debt service levy. The operating levy is set annually by the Board of Commissioners and can be used to fund any expenditure of the Park District. The debt service levy is set by the Board of Commissioners at the time General Obligation Bonds are sold and must be used only to repay those bonds. The Park District combines both these components into one levy when it talks about property taxes since that is what taxpayers see.
The Resolution sets the preliminary operating levy at $46,258,515. The proposed overall property tax increase is 3.8%, which includes both components: the operating levy and the debt service levy. The "Preliminary Property Tax Levy Report and 2027 Budget Status" provides more information about the preliminary levy and the status of the 2027 General Fund budget.
Relationship of Board Action to the Budget
The Park District's budget process, shown in the table below, outlines the steps and board actions that will need to be completed in the next several months. The table also shows the current status of each step in the process.
Relationship to the System Plan:
The Request for Action supports the following goal(s) of the System Plan:
Goal 2: Parks Matter
Goal 3: Lead by Example
This resolution supports the goals of the System Plan by providing funding for the continued operation of parks, trails, facilities, programs, and natural resources management activities in a professional and intentional manner.
Attachments:
2027 Preliminary Property Tax Levy Report and 2027 Budget Status.pdf
