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7.2.
CC Regular Session
Meeting Date: 11/26/2024
   
Primary Strategic Plan Initiative: {ud_pd4}

Title:

PUBLIC HEARING:  2025 Tax Levies and General Fund Budget: 
  • Adopt Resolution #24-335 Adopting the 2024, Payable 2025 Municipal Tax Levy
  • Adopt Resolution #24-336 Adopting the 2025 General Fund Budget
  • Adopt Resolution #24-337 Adopting the 2025 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 31, 2024.

A budget/levy slide presentation will be provided that will outline the city's proposed 2025 levies and General Fund Budget.

A brief recap of the proposed levy to be adopted is as follows:
  • 2025 Final Overall Levy: $21,950,694.  No change from the September Preliminary levy adopted September 24, 2024.
  • The final adopted levy for 2024 was $20,279,701.
  
      Levy Components:  General Fund Levy:                             $16,931,046    ($14,962,220 - Year 2024)
                                       Pavement Management Levy:            $ 1,936,970    ($1,844,733 -  Year 2024)
                                       Debt Service Levies:                           $ 2,996,311    ($3,385,358 - Year 2024)
                                       EDA Levy:                                           $      86,367    ($87,390 - Year 2024)

The levy increase of $1,670,993 from payable 2024 to payable 2025 is largely attributed to personnel costs for existing staff (market rate adjustments, COLA, wage steps, health, retirement (PERA) and workers comp in the amount of $1,404,089 and new personnel requests-additional personnel, reclasses & additional hours (New personnel consists of a full-time fire inspector (July 2025 start date) & a part-time Police Records Technician (February 2025 start date)) in the amount of $177,952.

Other Factors of Levy Increase:
  1. $218,285 increase in line items:  professional services contracts, street maintenance, software licensing 
  2. $168,500 increase in capital equipment 
  3. $92,237 Pavement Management Levy Increase - additional 5% per year as recommended
  4. ($389,047) decrease in Debt Service Levy attributed to funds remaining after retired bond in 2025 
  5. $($1,023) EDA levy decrease
   2025  Est Final Tax Capacity Rate: 46.00%        (41.431% - Year 2024) -   Overall 2.76% Decrease in Tax Capacity Value due to decrease in property valuations and Market Value Exclusion increasing from $413,700 to $517,200.

   2025 General Fund Budget:  $20,373,610      ($20,799,768 - Year 2024)
  
   2025 EDA Budget:  $91,367                            ($92,390 - Year 2024)
    
All EDA and General Fund documents are included together, as the EDA levy calculates into the total general levy calculation of the city.

Notification:

City Council agreed upon November 26, 2024, at 7:00 PM to hold a public meeting on the 2025 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.

Time Frame/Observations/Alternatives:

Option #1 - Motion for City Council to Adopt Resolutions #24-335 Adopting the 2024 Payable 2025 Municipal Tax Levies(General, Pavement Management, EDA and Debt Service) in the amount of $21,950,694; Adopt Resolution #24-336 Adopting the 2025 General Fund Budget in the amount of $20,373,610; and Adopt Resolution #24-337 Adopting the 2025 EDA Budget in the amount of $91,367.

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 2024 in the amount of $20,279,701.

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.

Outcome/Action:

Motion to Adopt Resolution #24-335 Adopting the 2024, Payable 2025 Municipal Tax Levies (General, Pavement Management, EDA and debt service) in the amount of $21,950,694; 
     and


Motion to Adopt Resolution #24-336 Adopting the 2025 General Fund Budget in the amount of $20,373,610
     and

Motion to Adopt Resolution #24-337 Adopting the 2025 EDA Budget in the amount of $91,367.

Attachments

Form Review

Inbox Reviewed By Date
Brian Hagen Brian Hagen 11/20/2024 11:18 AM
Form Started By:
Diana Lund
Started On:
10/25/2024 07:34 AM
Final Approval Date:
11/20/2024