Truth in Taxation Meeting Taxes Payable 2009 December 8, 2008, 7pm Continued to December 15, 2008 Purpose of TNT Mtg:  Required by Minnesota Statute , enacted in  Allows public a chance to review and comment upon the proposed budget and corresponding tax levy.  Provides for discussion on the current years budget in relation to the proposed upcoming years budget.  Public comment and recommendations are then used by the City Council in final budget discussions and tax levy adoption.  Does not provide forum for tax payers to question market value increase to property; that is reserved for Board of Review and Equalization.

2009 BUDGET HIGHLIGHTS  Overall Taxable Market Value Increase similar than in previous years, $49 Million  Growth of Taxable Tax Capacity Keeps Proposed Local Tax Rate within 3% of 08  Continued Increase in City’s Liability Insurance Premium  2 nd half of Fawn Lake Road Improvement- $62,500  Tax Forfeit Land Acquisition  Park Improvements-$21,000 Emergency Sirens-$16,000 City Hall Lighting-$10,000 Increases in Contractual Services, ie. Legal Comprehensive Plan Update Increases in Fuel costs, patrolling, snow plowing

2009 BUDGET HIGHLIGHTS (cont.) 2008 General Fund Approved Budget 1,798, Proposed General Fund Budget 1,822, Proposed Budget Increase 1.3% 2008 Property Tax Levy 1,533, Proposed Property Tax Levy 1,811,000 Proposed Property Tax Levy Monetary Increase 18% 2008 Local Tax Rate 31.4% 2009 Proposed Local Tax Rate 34.6% Proposed Tax Levy Increase 3.2%

Calculating Tax Burden Taxable Market Value $250,000 (residential homestead) –$250,000 x.01= $2,500 of Tax Capacity –Tax Capacity ($2,500) x Tax Rate $2,500 x.3470= $867

Calculating Tax Burden (cont.) Taxable Market Value $1,500,000 –$500,000 x.01= $5,000 of Tax Capacity –Tax Capacity x Tax Rate $5,000 x.3470= $1,735 –$1,000,000 x.0125= $12,500 of Tax Capacity $12,500 x.3470= $4,344 Total City Tax= $1,735 + $4,344=6,079

Breezy Point Levy History Levy Year ( Thousands)