HomeMy WebLinkAbout09 15 2022 CEC 2023 Preliminary Budget and Tax Levy2023 Preliminary Tax Levy and Budget
September 16, 2022 CEC Meeting
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2023 Tax Levy and Budget Schedule
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Tax Levy and Budget Schedule
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Overview – 2023 Preliminary Budgets
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Full-time Fire staffing model
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Recruitment and retention
Current response times meet the standard only 9% of the time.
Not meeting standards for life safety inspections, pre-planning and public education.
Fire call volume has grown by 55% in five years from 440 in 2016 to 682 in 2021.
Need to plan for continued increase due to rapid growth.
Paid-On-Call (POC) firefighters respond to calls for service via pager/phone-challenging deployment model
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Full-time Firefighter Staffing Model – July 1, 2023 start date
Budget Assumptions
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Revenue Assumptions:
The city applied for a federal SAFER grant to transition to a full-time fire department. The grant would pay for three years of salary/benefits for newly hired full-time firefighters.
The preliminary tax levy presented tonight assumes no SAFER grant award as the status of the SAFER grant is not known as of tonight’s Council meeting.
The Fire service contract/City of Credit River and Spring Lake Township – incorporates financial impact of Full-time Fire staffing model July 1, 2023 start date.
Expenditure Assumptions:
The budget includes expenditures for 12 fulltime firefighters starting mid-2023.
The budget also includes an incremental tax levy increase to prepare for full-year FT Fire costs in 2024.
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General Fund Expenditures $18,853,459
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2023 Base Tax Levy Considerations
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The 2023 proposed tax levy increase is $2,037,035
The proposed tax levy increase is 13.35% (assumes NO SAFER grant award)
5.62% of the levy increase is for transition to FT Fire staffing model
7.73% is remaining levy need which is below the base tax levy consideration of 10.4% that considers growth, inflation and debt service
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2023 Proposed Tax Levy Change
based on Preliminary Budgets
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City tax capacity tax rate: The tax base for the city has grown 22% over the past year, resulting in an estimated reduction in the city tax rate of 7.4%. We have been able to reduce
the tax rate while making an investment in public safety with funding for a full-time firefighter staffing model.
City market value tax rate for financing the construction of Fire Station #2 is estimated to decrease almost 14%.
EDA tax rate is estimated to decrease almost 16%
2023 Tax Levy Impact and Tax Rate
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Prior Lake’s Tax Rate has been consistently lower than average tax rate for Seven-County Metro area cities.
2022 Prior Lake City Tax Rate of 30.47%
2023 Prior Lake City Tax Rate based on preliminary 2023 budget is 28.21%
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Metro Area Average City Tax Rates
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City Levy/Tax Capacity = Tax Capacity Tax Rate
2023 Prior Lake City Tax Rate based on preliminary 2023 budget is 28.21%
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Scott County Tax Rate by City
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Resident Impact of City Tax Levy
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Questions?
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