HomeMy WebLinkAbout1B 2020 Budget Work Session PPTNovember 4, 2019
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Provide a budget and tax levy update to
the Council
Determine if Council needs additional
information
Determine if the Council wants to make
and budget/levy changes prior to the
December 2nd Public Hearing
May –Long Range Plan & Debt Work Session
June/July –CIP Work Sessions
Aug. 5 –Budget Work Session
Sept. 3 –Budget Work Session
Sept. 16 –Adopt Preliminary Levy and Budget
Nov. 4 –Budget Work Session
Dec. 2 –Public Budget meeting 7:00 p.m.
Dec. 2 –Adopt Final Tax Levy and Budget
Tax Levy and Budget Schedule
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The 2020 proposed tax levy is $13,671,137.
This is a proposed total tax levy change of 6.99%.
Adjustments made to reduce the levy from 7.98% to
6.99%:
❑Removed $90,000 for one-time trail replacement funding.
❑Removed $36,500 of EDA tax levy planned for professional services
for Economic Development Authority (EDA) initiatives.
2020 Proposed Tax Levy Change
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2020 Proposed Preliminary Budget & Tax Levy Change –At a Glance
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Residential Impact of City Portion of
Proposed Tax Levy Change
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For a home with no change in market value, the preliminary levy
increase will result in an estimated tax decrease of about 1.6% for
the city portion of property tax.
Tax Levy Impact and Tax Rate
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The tax levy and net tax capacity affect the city tax rate.
Based on the proposed levy change of 6.99% and the growth in
net tax capacity of 8.5%, the proposed city tax rate will be
reduced to 32.52% (a 1.5% reduction in the tax rate).
City of Prior Lake City Tax Rate Calc:
2019:2020 Proposed:
$11,623,000 Net Tax Levy $12,412,960 Net Tax Levy
$35,2000,000 Net Tax Capacity $38,170.194 Net Tax Capacityequals33.02% City
Tax Rate equals 32.52% City
Tax Rate
Tax Levy Impact and Tax Rate
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The city tax rate (tax capacity)show a planned reduction in
2020 based on the preliminary tax levy proposed.
PROPERTY TAX PROJECTION SUMMARY
2019 2020
Adopted
Budget 2019
Proposed
Budget 2020
TOTAL % CHANGE IN TAX LEVIES 5.80%6.99%
TAX CAPACITY TAX RATE 33.020%32.520%
Annual % Change -0.06%-1.51%
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Any additional information needed?
Any changes the Council wants to make
prior to the December 2nd Public Hearing?