Public Hearing on 2022 Tax Levies and General Fund Budget

• Adopt Resolution #21-339 Adopting the 2021, Payable 2022 Municipal Tax Levy
• Adopt Resolution #21-340 Adopting the 2022 General Fund Budget
• Adopt Resolution #21-341 Adopting the 2022 Economic Development Authority (EDA) Budget

Purpose:  The City is required to hold a meeting where the city's budget and levy will be discussed and the public can give input.  The City is required to adopt a levy and certify to the county auditor by December 31, 2021. A budget/levy slide presentation will be provided that will outline the city's proposed 2022 levies and General Fund Budget. A brief recap of the proposed levy to be adopted is as follows: 2022 Final Overall Levy: $15,312,856 - an $8,422 (reduction in debt levy on Municipal Center debt refinancing) from September Preliminary levy adopted September 28, 2021, of $15,321,278. The final adopted levy in 2021 was $13,009,808          Levy Components:  General Fund Levy:                             $11,712,590    ($11,154,848 - Year 2021)                                        Pavement Management Levy:            $ 1,673,227    ($0 - Year 2021)                                        Debt Service Levies:                           $ 1,851,679    ($1,779,600- Year 2021)                                        EDA Levy:                                           $       75,360   ($75,360 - Year 2021) The levy increase of $2,303,048 from payable 2021 to payable 2022 is largely attributed to the new Pavement Management Levy in the amount of $1,673,227 (number was arrived at based on 15% of last years General Fund Levy of $11,154,848).  The Pavement Management Levy replaces the franchise fee that was rescinded on July 27, 2021. Other Factors of Levy Increase: $216,402 Personnel additions of a full-time Park Maintenance worker, full-time Systems and Security Administrator, part-time Receptionist/Secretary (offset with reduction of Admin Intern), current part-time Police Technician to full-time, additional hours for Recreation Specialist, and position reclassifications of the current Senior Planner to Planning Manager, Engineering Tech IV to Senior Engineering Tech, Streets Lead to Streets Department Supervisor and Maintenance Worker to Street Lead Person. $341,340 of increase is related to Cost of Living Adjustments (COLA), Market Rate Adjustments, steps, Pera, Workers Comp and health insurance costs.   $72,079 in Debt Service Levy     2022 Est Final Tax Capacity Rate:  42.280%        (39.251% - Year 2021)    2022 General Fund Budget:  $14,492,640      ($14,383,348 - Year 2021)       2022 EDA Budget:  $85,360                            ($85,360 - Year 2021)      All EDA and General Fund documents are included together, as the EDA levy calculates into the total general levy calculation of the city and thus accounts for the several motions listed below.

At is regular meeting of September 28, 2021,  City Council agreed upon December 14, 2021 at 7:00 PM to hold a public meeting on the 2022 levy and budget.  This date and time was printed on the proposed tax statements that were sent to each taxable property and public hearing notice was also posted in the Anoka County Union on December 3, 2021.

Option #1 - Motion for City Council to Adopt Resolutions #21-339 Adopting the 2021 Payable 2022 Municipal Tax Levies(General, Pavement Management, EDA and Debt Service) in the amount of $15,312,856; Adopt Resolution #21-340 Adopting the 2022 General Fund Budget in the amount of $14,492,640 and Adopt Resolution #21-341 Adopting the 2022 EDA Budget in the amount of $85,360.

Option #2 - Motion for City Council to Adopt Resolutions as stated above in Option 1, but with the following modifications:________________

Option#3 - Motion for City Council to not adopt the attached resolutions.  If a final levy is not adopted it reverts back to the final levy of 2021 in the amount of $13,009,808.

The EDA levy supports the EDA budget, the General Levy supports the General Fund Budget and debt service levy supports the respective annual debt service payments and the Pavement Management Levy supports the City's pavement management program.

Staff Recommends Option #1 as outlined above.

Motion to Adopt Resolution #21-339 Adopting the 2021, Payable 2022 Municipal Tax Levies (General, Pavement Management, EDA and debt service) in the amount of $15,312,856; and   

Motion to Adopt Resolution #21-340 Adopting the 2022 General Fund Budget in the amount of $14,492,640; and

Motion to Adopt Resolution #21-341 Adopting the 2022 EDA Budget in the amount of $85,360.