8.1.
| CC Regular Session New |
| Meeting Date: | 09/24/2024 |
| Primary Strategic Plan Initiative: | {ud_pd4} |
Title:
Adopt Resolution 24-262 Adopting Proposed 2025 Payable Tax Levies (General, Pavement Management, EDA and Debt Service) & Schedule Public Hearing for November 26, 2024; Adopt Resolution #24-263 Adopting Proposed 2025 General Fund Budget and Resolution #24-264 Adopting Proposed 2025 EDA Budget.
Purpose/Background:
Purpose: Each taxing authority must certify its proposed preliminary property tax levies for payable 2025 to the County Auditor by September 30, 2024.
A budget/levy slide presentation will be provided that will outline the city's proposed 2025 levies and General Fund Budget.
The city held several worksessions on the proposed 2025 preliminary budget and related levies, with the last worksession, prior to preliminary adoption, being held on September 10, 2024.
Proposed 2025 Payable Tax Levy:
Proposed Tax Levies:
Based upon the proposed levy, the City's estimated tax rate is projected to increase in 2025 from 41.431% (2024) to 46.497% subject to final property and tax calculations by the County. The attached resolution, as it is presented, reflects a levy of $21,950,694. The proposed levy for 2025 reflects a $1,670,993 (8.24% increase) over the adopted levy in 2024 of $20,279,701.
The levy increase of $1,670,993 has the following contributing factors:
1. Additional Personnel Requests - New positions, reclassifications, additional hours and wage increase - $177,219
Personnel additions of a full-time Fire Inspector (7/1/25 start) PT Police Records Technician (2/1/25 start), Reclass CSO to CSO Lead, Reclass Record Tech/Data to Crime Analyst, Reclass Mechanic to Lead Mechanic, Additional Hours to FT for Planning Admin Assistant and Building Admin Assistant (6/1/25) and hour wage increase for on-call firefighters.
2. $1,305,093: Personnel: Market Rate Adjustments (0%-17.65%), COLA, Steps, PERA, FICA/Medicare, Workers Comp,
3. $136,649: Health Insurance Increase
4. $181,365: Line item increases: Professional Services, Street Maint, Training, Software Licensing, Etc.
5. $92,237: Pavement Management Levy: 5% annual increase
6. $168,500: Capital Equipment Purchases: Wood Chipper, Utility Terrain Vehicle (UTV), Mowers, Audio Video Recording Equipment-PD.
7. ($389,047): Debt reduction
8. ($1,023): EDA Levy decrease.
2025 Proposed General Fund Budget: $20,461,240 ($20,799,768 - Year 2024)
2025 Proposed EDA Budget: $92,390 ($91,367 - 2024).
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 November 26, 2024, there will be budget worksessions to continue discussions on the Proposed 2025 General Fund Budget and 2025 Proposed Levies.
The proposed levy must be certified to Anoka County by Monday, September 30, 2024. 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 2024 levy ($20,279,701) will be certified as the city's payable 2025 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 November 26, 2024, with adoption of the 2025 General Fund Budget and levy to immediately follow.
The public meeting date must be certified to Anoka County by Monday, September 30, 2024. Therefore, the City Council must make a decision as to the date selected for the 2025 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 2025 levies and General Fund Budget.
The city held several worksessions on the proposed 2025 preliminary budget and related levies, with the last worksession, prior to preliminary adoption, being held on September 10, 2024.
Proposed 2025 Payable Tax Levy:
Proposed Tax Levies:
| General Fund Levy: | $ 16,931,046 | ||
| Pavement Management Fund Levy (Included in General Levy) | $ 1,936,970 | ||
| EDA Levy (Included in General Levy) | $ 86,367 | ||
| Debt Service Levy: CIP Bond (Municipal Center) (Being Requested) | $ 840,650 | ||
| Debt Service Levy - CIP Bond ( Fire Station #2) | $ 283,749 | ||
| Debt Service Levy - 2023 Equipment Certificates | $ 188,738 | ||
|
$ 1,089,694 | ||
| Debt Service Levy - CIP Bond (Public Works Campus) | $ 127,276 | ||
| 2015 Reconstruction Debt - Garnet Street & Overlays | $ 114,222 | ||
| 2016 Reconstruction Debt - Andrie & Overlays | $ 146,371 | ||
| 2017 Reconstruction Debt - Sunwood Drive & Alpine | $ 91,875 | ||
| 2018 Reconstruction Debt - River's Bend & Stanhope Terrace | $ 113,792 | ||
| Total Proposed Levy - 2025 | $ 21,950,694 |
Based upon the proposed levy, the City's estimated tax rate is projected to increase in 2025 from 41.431% (2024) to 46.497% subject to final property and tax calculations by the County. The attached resolution, as it is presented, reflects a levy of $21,950,694. The proposed levy for 2025 reflects a $1,670,993 (8.24% increase) over the adopted levy in 2024 of $20,279,701.
The levy increase of $1,670,993 has the following contributing factors:
1. Additional Personnel Requests - New positions, reclassifications, additional hours and wage increase - $177,219
Personnel additions of a full-time Fire Inspector (7/1/25 start) PT Police Records Technician (2/1/25 start), Reclass CSO to CSO Lead, Reclass Record Tech/Data to Crime Analyst, Reclass Mechanic to Lead Mechanic, Additional Hours to FT for Planning Admin Assistant and Building Admin Assistant (6/1/25) and hour wage increase for on-call firefighters.
2. $1,305,093: Personnel: Market Rate Adjustments (0%-17.65%), COLA, Steps, PERA, FICA/Medicare, Workers Comp,
3. $136,649: Health Insurance Increase
4. $181,365: Line item increases: Professional Services, Street Maint, Training, Software Licensing, Etc.
5. $92,237: Pavement Management Levy: 5% annual increase
6. $168,500: Capital Equipment Purchases: Wood Chipper, Utility Terrain Vehicle (UTV), Mowers, Audio Video Recording Equipment-PD.
7. ($389,047): Debt reduction
8. ($1,023): EDA Levy decrease.
2025 Proposed General Fund Budget: $20,461,240 ($20,799,768 - Year 2024)
2025 Proposed EDA Budget: $92,390 ($91,367 - 2024).
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 November 26, 2024, there will be budget worksessions to continue discussions on the Proposed 2025 General Fund Budget and 2025 Proposed Levies.
The proposed levy must be certified to Anoka County by Monday, September 30, 2024. 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 2024 levy ($20,279,701) will be certified as the city's payable 2025 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 November 26, 2024, with adoption of the 2025 General Fund Budget and levy to immediately follow.
The public meeting date must be certified to Anoka County by Monday, September 30, 2024. Therefore, the City Council must make a decision as to the date selected for the 2025 payable public meeting at tonight's meeting, unless a special meeting is called.
Time Frame/Observations/Alternatives:
1. Adopt Total Preliminary Levy of $21,950,694.
2. Adopt Total Preliminary Levy of $_________ based on discussion.
3. Retain Levy at 2024 Final Levy Adoption of $20,279,701.
2. Adopt Total Preliminary Levy of $_________ based on discussion.
3. Retain Levy at 2024 Final Levy Adoption of $20,279,701.
Recommendation:
Staff recommends Option #1 above based on 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 November 26, 2024 and to schedule the City of Ramsey's budget/levy public meeting on Tuesday, November 26, 2024, at 7:00 P.M.
Outcome/Action:
Motion to recommend Council Adopt Resolution #24-262 Approving the Proposed 2024, Payable 2025 Tax Levy in the amount of $21,950,694 and to schedule the City of Ramsey's budget/levy public meeting on Tuesday, November 26, 2024, at 7:00 p.m and Adopt Resolution #24-263 Adopting Proposed 2025 General Fund Budget and Resolution Adopt Resolution #24-264 Adopting Proposed 2025 EDA Budget.
Attachments
- Reso #24-262 Adopting Proposed 2025 Property Tax Levy
- Reso #24-263 Adopting Proposed 2025 General Fund Budget
- Reso #24-264 Adopting Proposed 2025 EDA Budget
- 2025 Proposed General Fund Budget
- 2025 Proposed EDA Budget
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 09/19/2024 12:46 PM |
- Form Started By:
- Diana Lund
- Started On:
- 09/17/2024 10:06 AM
- Final Approval Date:
- 09/19/2024