HomeMy WebLinkAbout11 07 2022 1A - 2023 Preliminary Budget and Tax Levy PPT 12.98% levy change2023 Preliminary Tax Levy and Budget
November 7, 2022
PriorLakeMN.gov
2023 Tax
Levy and
Budget
Schedule
2
June 6 –Financial Planning Work Session
July 18 –CIP Work Session & Financial Planning Update –
August 1 –Budget Work Session
August 15 –Budget Work Session
August 15 –CIP Public Presentation
September 19 -Public Budget Meeting/Adopt Preliminary
Tax Levy and Budget
Nov. 7 –Budget Work Session
Dec. 5 –Public Budget Meeting/Adopt Final Tax Levy and
Budget
Tax Levy and Budget Schedule
PriorLakeMN.gov
2023 Proposed Budgets –
Budget Adjustments
3
•Budget Reduction of $56k reduces the proposed tax
levy from 13.35% to 12.98%.
Department Budget Adjustments:
Elections Add'l; 5 Poll Pads/No Meals for Judges in 2023 3,090$
IT Additional software 10,350
Fire Reduced maintenance/cleaning budget (6,000)
Public Works Reduced maintenance budget (28,500)
Recreation
Reduced Club Prior budget as program staff add
was cut from budget (4,000)
Debt service savings for 2022
bond issue final costs 2023 savings for 2022 bond issue final costs (30,780)
Net Budget Reduction (55,840)$
PriorLakeMN.gov
2023 Base Tax Levy Considerations
4
Growth (New Construction)2.0%
CPI-U (MSP)8.7%
Debt Service -0.3%
Base Property Tax Levy
Considerations
10.4%
PriorLakeMN.gov
•$857,000 (5.62%) of the tax levy increase is funding to support the
transition to a full-time firefighter staffing model.
•$1,124,000 (7.36%) is the levy needed to provide city services, capital
improvement funding, and address cost increases during this
inflationary period.
Full-time Fire Staffing Model:
•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 proposed tax levy assumes no SAFER grant award as the status of
the SAFER grant is not known at this time.
•The status of grant award may not be known until the end of November.
•
•
5
2023 Tax
Levy
$ Change in
Tax Levy
% of Total
Change
City of Prior
Lake
$16,863,956 $1,971,195 12.91%
Economic
Development
Authority
(EDA)
370,000 10,000 .07%
Total Tax Levy
Increase
$17,233,956 $1,981,195 12.98%
2023 Proposed Tax Levy Change
PriorLakeMN.gov
•The 2023 proposed tax levy
increase is $1,981,195
•The proposed tax levy increase is
12.98% (assumes NO SAFER grant
award)
•5.62% of the levy increase is for
transition to FT Fire staffing model
•7.36% is remaining levy need
which is below the base tax levy
consideration of 10.4% that
considers growth, inflation and debt
service
6
2023 Proposed Tax Levy Change
based on Preliminary Budgets
PriorLakeMN.gov 7
•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 7.7%. 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 16%
2023 Tax Levy Impact and Tax Rate
PROPERTY TAX PROJECTION SUMMARY
Adopted
Budget 2022
Proposed
Budget 2023
No SAFER Grant
TAX LEVIES 15,252,761 17,233,956
TOTAL $ CHANGE IN TAX LEVIES 937,554 1,981,195
TOTAL % CHANGE IN TAX LEVIES 6.55%12.98%
CITY TAX CAPACITY TAX RATE 30.47%28.11%
Annual % Change -city only excludes EDA 0.66%-7.73%
CITY MARKET VALUE TAX RATE 0.00516%0.00445%
Annual % Change -17.57%-13.69%
EDA TAX CAPACITY TAX RATE 0.74%0.62%
Annual % Change -11.87%-16.01%
PriorLakeMN.gov 8
Resident Impact of City Tax Levy
PriorLakeMN.gov
2023 Tax
Levy and
Budget
Schedule
9
June 6 –Financial Planning Work Session
July 18 –CIP Work Session & Financial Planning Update –
August 1–Budget Work Session
August 15 –Budget Work Session
August 15 –CIP Public Presentation
September 19 -Public Budget Meeting/Adopt Preliminary
Tax Levy and Budget
Nov. 7 –Budget Work Session
Dec. 5 –Public Budget Meeting/Adopt Final Tax Levy and
Budget
Next Steps
PriorLakeMN.gov
Council Feedback and Direction
10
Does the city council have any questions?
Is the city council comfortable with presenting the
tax levy at 12.98% for adoption of the final levy on
December 5th?