HomeMy WebLinkAbout09 07 2021 9A - 2022 Preliminary Budget and Tax Levy PPT2022
Preliminary Tax Levy and Budget
September 7, 2021
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By September 30, the City Council must:
Adopt a preliminary budget and certify a preliminary property tax levy for pay 2022
Announce the time and place of the meeting when the budget and levy will be discussed and public input allowed
The public budget meeting will be held Dec 6 at 7:00 p.m. in the Council Chambers
2022 Preliminary Tax Levy and Budget
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June 7 Financial Planning
June 21 CIP Work Sessions
August 2 Budget Work Session
Sept. 7 Adopt Preliminary Levy and Budget
Nov. 1 Budget Work Session
Dec. 6 Public Budget meeting
Dec. 6 Adopt Final Tax Levy and Budget
Franchise Fees:
July 27 Public Information Meeting
Sept. 7 Public Hearing
Tax Levy and Budget Schedule
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Overview – 2022 Preliminary Budgets
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General Fund $ 16,539,836
Debt Service Funds 5,593,912
Rev. Equipment Fund 921,400
Facilities Mgmt Fund 453,000
PIR Fund (street overlay) 282,751
Other (Parks, Cable) 161,200
EDA 620,557
Water Fund 4,229,894
Sewer Fund 4,602,418
Water Quality Fund 1,167,489
Total $34,572,457
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General Fund Revenues
$16,490,000
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General Fund Expenditures
$16,540,000
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The City proposed tax levy is $14,892,761. This is a levy increase of $927,304 (6.48% of total increase).
The EDA proposed tax levy is $360,000. The EDA is requesting a levy increase of $10,250 (.07% of total increase).
This has resulted in a total tax levy change of $937,554 which is presented to the Council tonight (6.55% increase).
2022 Proposed Tax Levy Change
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2022 Proposed Tax Levy Change
based on Preliminary Budgets
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Proposed levy of $15,252,761
$938,000 (6.55%) levy increase.
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Proposed Tax Levy Impact and Tax Rate
Beginning in 2021, the City Tax Rate is shown separately from the EDA Tax Rate on the property tax statement so separate rate information will be provided as part of the financial planning
property tax projection.
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Bond Rating – Maintain/improve current rating (AA+)
2021 – S&P Rating AA+
General Fund Reserves – 40% to 50%
2021 Year End Projection – 52%
2022 Year End Projection – 50%
Property Tax Rank – Maintain/improve
Property Taxes/HH – Growth plus inflation
General Fund Expenditures/HH – Growth plus inflation
Budget Objectives/ Metrics
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Maintain/Improve Property Tax Rank
Scott County Tax Capacity Rate by City:
Budget Objectives/ Metrics
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*City Levy/Tax Capacity = Tax Rate
2021 Combined City of Prior Lake & EDA tax rate is 31.08% (includes the EDA levy for comparison to 2020 combined tax rate)
2022 Proposed City of Prior Lake tax rate is 30.43%
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2022 Base Property Tax Levy Considerations
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2022 property levy request of 6.55% is below the base property tax levy considerations of 7.6%
Budget metric: “maintain a level of property taxes on a per household basis which takes into account the cost of inflation and community growth.”
*The debt service % change is based on the 2022 debt issuance
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Proposed Tax Levy per Household
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General Fund Operating Expenditures per Household
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Resident impact of City tax levy
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Annual Cost of City Services
Used $347,600 valued home for comparison (Prior Lake’s median valued home)
Includes property taxes, water, sewer and stormwater
Included comparable cities based on population and growth
Included surrounding cities of Shakopee, Lakeville, Burnsville
No Police Department/Contracted Public Safety: Chanhassen, Andover, Champlin
No Water Treatment Plant: Rosemount, Lino Lakes, Champlin, Farmington
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Discussion
Resolution 1- Consider Approval of a Resolution Approving Preliminary 2022 City Budgets and Certifying Preliminary 2022 City of Prior Lake Property Tax Levy to Scott County Department
of Taxation
Resolution 2 - Consider Approval of a Resolution Approving Preliminary 2021 Economic Development Authority Budget and Certifying Preliminary 2021 Economic Development Authority Property
Tax Levy to Scott County Department of Taxation
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Historical Tax Levy Information
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The average change in the tax levy since 2012 is 4.62%
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No Police Dept/Contracted Service: Chanhassen, Andover, Champlin
No Water Treatment Plant: Rosemount, Lino Lakes, Champlin, Farmington
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Tax Levy Impact and Tax Rate
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The net tax levy and net tax capacity affect the city tax rate
The tax rate increase is .55% based on the proposed tax levy
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Tax Levy Impacts and Tax Rate
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The city’s Market Value Tax Rate is based on property market value.
The MV tax levy and city market value affect the MV tax rate.
Preliminary 2022 MV tax rate is decreasing 11.7% from the 2021 MV tax rate
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2021 General Fund Revenues
$14,954,000
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