7.1.
| CC Regular Session |
| Meeting Date: | 09/26/2023 |
| Primary Strategic Plan Initiative: | {ud_pd4} |
Information
Title:
Adopt Resolution 23-228 Adopting Proposed 2024 Payable Tax Levies (General, Pavement Management, EDA and Debt Service) & Schedule Public Hearing for December 12, 2023; Adopt Resolution #23-229 Adopting Proposed 2024 General Fund Budget and Resolution #23-230 Adopting Proposed 2024 EDA Budget.
Purpose/Background:
Purpose: Each taxing authority must certify its proposed preliminary property tax levies for payable 2024 to the County Auditor by October 2, 2023.
A budget/levy slide presentation will be provided that will outline the city's proposed 2024 levies and General Fund Budget.
The city held several worksessions on the proposed 2024 preliminary budget and related levies, with the last worksession, prior to preliminary adoption, being held on September 12, 2023.
Proposed 2024 Payable Tax Levy:
Proposed Tax Levies:
Based upon the proposed levy, the City's estimated tax rate is projected to increase in 2024 from 40.429% (2023) to 41.050% subject to final property and tax calculations by the County. The attached resolution, as it is presented, reflects a levy of $20,279,701. The proposed levy for 2024 reflects a $2,044,521 (11.21% increase) over the adopted levy in 2023 of $18,235,180.
The levy increase of $2,044,521 has the following contributing factors:
1. Additional Personnel Requests - New positions, reclassifications, additional hours and wage increase - $588,988
Personnel additions of a full-time Accountant I, FT Rental Housing Inspector, FT Building Maintenance Worker, 3-FT Street Maintenance Workers, FT Mechanic, FT Park Maintenance Worker, Reclass Accountant I to Accountant II, Reclass Patrol Officer to Sergeant,
Reclass Fire Inspector to Fire Marshall, Reclass Building Permit Tech I to Building Permit Tech II, Additional Hours for Planning Admin Assistant and Building Admin Assistant and hour wage increase for on-call firefighters and seasonal workers.
2. $240,336 of increase is related to non-budgeted positions added during 2023 year: 2 CSO's, Engr Tech II, Public Works Assistant, CSO from PT to FT and Reclass Rec Specialist to Rec Coordinator.
3. $463,477: COLA, Steps, PERA, FICA/Medicare, Workers Comp, Health Ins (approx 8% increase), Leap year, Election year and police holiday buyback increase from 54 to 104 hours.
4. $87,844: Pavement Management Levy: 5% annual increase
5. $375,000: Spray Patching covered by ARPA funds in 2023.
6. $115,240: Salt Price Increase
7. $80,000: Data Processing includes first half for Finance/HR Software upgrade
8. EDA Levy: $4,780 increase.
9. Debt Service Levy: $135,497: Issuance of New Debt Capital Equipment
2024 Proposed General Fund Budget: $20,799,768 ($17,055,153 - Year 2023)
2024 Proposed EDA Budget: $92,390 ($87,610 - 2023).
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.
While the proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process. Until the budget and levy is formally adopted on December 12, 2023, there will be budget worksessions to continue discussions on the Proposed 2024 General Fund Budget and 2024 Proposed Levies.
The proposed levy must be certified to Anoka County by Monday, October 2, 2023. Therefore, the Council must make a decision prior to that date in regards to the amount of this levy. If the proposed levy is not passed for any reason, the adopted 2023 levy ($18,235,180) will be certified as the city's payable 2024 levy.
Schedule Budget Public Hearing Date:
The Truth-in-Taxation (TNT) law was changed in 2009. The City is no longer required to hold a special TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing, the City is required to hold a regularly scheduled meeting at which the budget and levy will be discussed. The City may adopt the budget and levy immediately following. The public meeting must be held between November 25 and December 30 and held after 6:00 P.M.
Staff is recommending that the public meeting be held at its regularly scheduled meeting of December 12, 2023, with adoption of the 2024 General Fund Budget and levy to immediately follow.
The public meeting date must be certified to Anoka County by Monday, October 2, 2023, therefore, the City Council must make a decision as to the date selected for the 2024 payable public meeting at tonight's meeting, unless a special meeting is called.
A budget/levy slide presentation will be provided that will outline the city's proposed 2024 levies and General Fund Budget.
The city held several worksessions on the proposed 2024 preliminary budget and related levies, with the last worksession, prior to preliminary adoption, being held on September 12, 2023.
Proposed 2024 Payable Tax Levy:
Proposed Tax Levies:
| General Fund Levy: | $ 14,962,220 |
| Pavement Management Fund Levy (Included in General Levy) | $ 1,844,733 |
| EDA Levy (Included in General Levy) | $ 87,390 |
| Debt Service Levy: CIP Bond (Municipal Center) (Being Requested) | $ 1,122,950 |
| Debt Service Levy - CIP Bond ( Fire Station #2) | $ 282,988 |
| Debt Service Levy - 2023 Equipment Certificates - ESTIMATE | $ 188,736 |
| Debt Service Levy - 2014 Equipment Certificates | $ 102,094 |
| Debt Service Levy - CIP Bond (Public Works Campus) | $ 127,276 |
| 2015 Reconstruction Debt - Garnet Street & Overlays | $ 117,293 |
| 2016 Reconstruction Debt - Andrie & Overlays | $ 148,740 |
| 2017 Reconstruction Debt - Sunwood Drive & Alpine | $ 93,335 |
| 2018 Reconstruction Debt - River's Bend & Stanhope Terrace | $ 110,996 |
| 2022 Reconstruction Debt - $12M of additional Road Projects | $ 1,090,950 |
| Total Proposed Levy - 2024 | $ 20,279,701 |
Based upon the proposed levy, the City's estimated tax rate is projected to increase in 2024 from 40.429% (2023) to 41.050% subject to final property and tax calculations by the County. The attached resolution, as it is presented, reflects a levy of $20,279,701. The proposed levy for 2024 reflects a $2,044,521 (11.21% increase) over the adopted levy in 2023 of $18,235,180.
The levy increase of $2,044,521 has the following contributing factors:
1. Additional Personnel Requests - New positions, reclassifications, additional hours and wage increase - $588,988
Personnel additions of a full-time Accountant I, FT Rental Housing Inspector, FT Building Maintenance Worker, 3-FT Street Maintenance Workers, FT Mechanic, FT Park Maintenance Worker, Reclass Accountant I to Accountant II, Reclass Patrol Officer to Sergeant,
Reclass Fire Inspector to Fire Marshall, Reclass Building Permit Tech I to Building Permit Tech II, Additional Hours for Planning Admin Assistant and Building Admin Assistant and hour wage increase for on-call firefighters and seasonal workers.
2. $240,336 of increase is related to non-budgeted positions added during 2023 year: 2 CSO's, Engr Tech II, Public Works Assistant, CSO from PT to FT and Reclass Rec Specialist to Rec Coordinator.
3. $463,477: COLA, Steps, PERA, FICA/Medicare, Workers Comp, Health Ins (approx 8% increase), Leap year, Election year and police holiday buyback increase from 54 to 104 hours.
4. $87,844: Pavement Management Levy: 5% annual increase
5. $375,000: Spray Patching covered by ARPA funds in 2023.
6. $115,240: Salt Price Increase
7. $80,000: Data Processing includes first half for Finance/HR Software upgrade
8. EDA Levy: $4,780 increase.
9. Debt Service Levy: $135,497: Issuance of New Debt Capital Equipment
2024 Proposed General Fund Budget: $20,799,768 ($17,055,153 - Year 2023)
2024 Proposed EDA Budget: $92,390 ($87,610 - 2023).
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.
While the proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process. Until the budget and levy is formally adopted on December 12, 2023, there will be budget worksessions to continue discussions on the Proposed 2024 General Fund Budget and 2024 Proposed Levies.
The proposed levy must be certified to Anoka County by Monday, October 2, 2023. Therefore, the Council must make a decision prior to that date in regards to the amount of this levy. If the proposed levy is not passed for any reason, the adopted 2023 levy ($18,235,180) will be certified as the city's payable 2024 levy.
Schedule Budget Public Hearing Date:
The Truth-in-Taxation (TNT) law was changed in 2009. The City is no longer required to hold a special TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing, the City is required to hold a regularly scheduled meeting at which the budget and levy will be discussed. The City may adopt the budget and levy immediately following. The public meeting must be held between November 25 and December 30 and held after 6:00 P.M.
Staff is recommending that the public meeting be held at its regularly scheduled meeting of December 12, 2023, with adoption of the 2024 General Fund Budget and levy to immediately follow.
The public meeting date must be certified to Anoka County by Monday, October 2, 2023, therefore, the City Council must make a decision as to the date selected for the 2024 payable public meeting at tonight's meeting, unless a special meeting is called.
Time Frame/Observations/Alternatives:
1. Adopt Total Preliminary Levy of $20,279,701.
2. Adopt Total Preliminary Levy of $_________ based on discussion.
3. Retain Levy at 2023 Final Levy Adoption of $18,235,180.
2. Adopt Total Preliminary Levy of $_________ based on discussion.
3. Retain Levy at 2023 Final Levy Adoption of $18,235,180.
Recommendation:
Staff recommmends Option #1 above based on much discussions at City Council budget worksessions with the possibility of reductions to the preliminary levy prior to City Council adoption of the final levy on December 12, 2023 and to schedule the City of Ramsey's budget/levy public meeting on Tuesday, December 12, 2023 at 7:00 P.M.
Outcome/Action:
Motion to recommend Council Adopt Resolution #23-228 Approving the Proposed 2023, Payable 2024 Tax Levy in the amount of $20,279,701 and to schedule the City of Ramsey's budget/levy public meeting on Tuesday, December 12, 2023 at 7:00 p.m and Adopt Resolution #23-229 Adopting Proposed 2024 General Fund Budget and Resolution Adopt Resolution #23-230 Adopting Proposed 2024 EDA Budget..
Attachments
- Reso #23-228 Adopting Proposed 2024 Payable Tax Levy
- Reso #23-229 Adopting Proposed 2024 General Fund Budget
- Reso #23-230 Adopting Proposed 2024 EDA Budget
- 2024 Proposed General Fund Budget
- 2024 Proposed EDA Budget
- Residential Tax Impact Preliminary Adoption
- Commercial Tax Impact Preliminary Adoption
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 09/21/2023 11:09 AM |
- Form Started By:
- Diana Lund
- Started On:
- 09/18/2023 09:47 AM
- Final Approval Date:
- 09/21/2023