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6.3.
CC Regular Session
Meeting Date:
12/12/2023
By:
Diana Lund, Finance

Information

Title:

PUBLIC HEARING:  2024 Tax Levies and General Fund Budget: 
  • Adopt Resolution #23-310 Adopting the 2023, Payable 2024 Municipal Tax Levy
  • Adopt Resolution #23-311 Adopting the 2024 General Fund Budget
  • Adopt Resolution #23-312 Adopting the 2024 Economic Development Authority (EDA) Budget

Purpose/Background:

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 28, 2023.

A budget/levy slide presentation will be provided that will outline the city's proposed 2024 levies and General Fund Budget.

A brief recap of the proposed levy to be adopted is as follows:
  • 2024 Final Overall Levy: $20,279,701.  No change from the September Preliminary levy adopted September 26, 2023.
  • The final adopted levy in 2023 was $18,235,180
  
      Levy Components:  General Fund Levy:                             $14,962,220    ($13,145,820 - Year 2023)
                                       Pavement Management Levy:            $ 1,844,733    ($1,756,889 -  Year 2023)
                                       Debt Service Levies:                           $ 3,385,358    ($3,249,861 - Year 2023)
                                       EDA Levy:                                           $       87,390   ($82,610 - Year 2023)

The levy increase of $2,044,521 from payable 2023 to payable 2024 is largely attributed to personnel costs for existing staff (COLA, wage steps, Health, Retirement (PERA) and workers comp in the amount of $703,813 and new personnel requests (3 street maintenance, 1 accountant I,1 rental housing inspector, 1 building maintenance worker, 1 mechanic and 1 park and rec maintenance worker) in the amount of $588,988.

Other Factors of Levy Increase:
  1. $135,797 in Debt Service Levy attributed to debt levy for new issue:  2023 GO Capital Equipment 
  2. $523,299 Line item budget increases  (Road salt & street improvements -cracksealing/rejuvenation/pothole patching)
  3. $87,844 Pavement Management Levy Increase - additional 5% per year as recommended
  4. $4,780 EDA levy increase
   2024  Est Final Tax Capacity Rate:  41.171%        (40.429% - Year 2023)

   2024 General Fund Budget:  $20,799,768      ($17,055,153 - Year 2023)
  
   2024 EDA Budget:  $92,390                            ($87,610 - Year 2023)
    
All EDA and General Fund documents are included together, as the EDA levy calculates into the total general levy calculation of the city.

Notification:

At is regular meeting of September 26, 2023, City Council agreed upon December 12, 2023 at 7:00 PM to hold a public meeting on the 2024 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 Hearald.

Observations/Alternatives:

Option #1 - Motion for City Council to Adopt Resolutions #23-310 Adopting the 2023 Payable 2024 Municipal Tax Levies(General, Pavement Management, EDA and Debt Service) in the amount of $20,279,701;  Adopt Resolution #23-311 Adopting the 2024 General Fund Budget in the amount of $20,799,768; and Adopt Resolution #23-312 Adopting the 2024 EDA Budget in the amount of $92,390.

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 2023 in the amount of $18,235,180.

Funding Source:

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.

Recommendation:

Staff recommends Option#1 as outlined above.

Action:

Motion to Adopt Resolution #23-310 Adopting the 2023, Payable 2024 Municipal Tax Levies (General, Pavement Management, EDA and debt service) in the amount of $20,279,701; 
     and


Motion to Adopt Resolution #23-311 Adopting the 2024 General Fund Budget in the amount of $20,799,768
     and

Motion to Adopt Resolution #23-312 Adopting the 2024 EDA Budget in the amount of $92,390.

Attachments

Form Review

Inbox Reviewed By Date
Brian Hagen Brian Hagen 12/07/2023 10:17 AM
Form Started By:
Diana Lund
Started On:
12/05/2023 09:53 AM
Final Approval Date:
12/07/2023