HomeMy WebLinkAbout12 04 2023 7A 2024 Final Budget and Tax Levy2024 Final Tax Levy and Budget
December 4, 2023
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Tonight’s Agenda
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2024 Tax Levy and Budget Schedule
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Tax Levy and Budget Schedule
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Rounded to the nearest 1000
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2024 Proposed City Budgets3
Expenditures - $50,209,000
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Budget Overview
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The proposed budgets reflect additional resources needed for the following areas:
First full year of Fire department full-time staffing (includes six months of added expenditures due to midyear 2023 implementation)
Proposed personnel add for a Police Officer and Recreation Programmer
Unfunded mandates (elections, joint county prosecution, PD additional holiday worked)
Reduction in the rate of development
Inflationary/Contract increases for wages and commodities
Funding annual capital replacement needs for equipment/park equipment/facilities.
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July – Mid November 2023
Average en route time- 01:06
Average on scene time- 05:36
Average total call time: 06:42
July – November 2022
Average en route time- 05:48
Average on scene time- 06:41
Average total call time: 12:29
En route time (time to get out the door)
On scene time (time to get to the fire scene)
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Fire Department Metrics
(Five months of Full-Time Fire Staffing)
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General Fund Expenditures $21,046,603
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General Fund Revenues $21,046,603
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*
The growth of wages surpassed that of inflation for the first time since March 2021 in February of 2023.
71% of city budget is personnel costs.
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2024 Base Tax Levy Considerations
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The 2024 proposed tax levy is $ 18,715,290.
The proposed tax levy increase is $ 1,851,334 (10.97%)
$644,000 (3.8%) of the tax levy increase is funding to support the transition to a full-time firefighter staffing model and unfunded mandates.
$1,207,000 (7.17%) is the levy needed to provide city services, capital improvement funding, and address commodity cost increases and wage inflation.
Components of the 2024 Proposed Tax Levy Change
Total CITY tax levy of $18,715,290 which is an 10.97% increase from the prior year levy. City tax rate estimate of 30.17% (7.3% increase).
Total EDA tax levy of $390,000 which is a 5.41% increase from the prior year levy. EDA tax rate estimate of .64% (2.3% increase)
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Property Tax Projection Summary
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Property Tax Rate History
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Budget Metric: Bond Rating – Maintain/improve current rating
2023 – S&P Rating upgrade to AAA
Budget Metric: General Fund Reserves – 40% to 50%
2023 Year End Projection – 53%
2024 Year End Projection – 48-49%
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Budget Metrics – Bond Rating and General Fund Reserves
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Prior Lake’s Tax Rate has been consistently lower than average tax rate for Seven-County Metro area cities.
2023 Prior Lake City Tax Rate of 28.11%
2024 Prior Lake City Tax Rate estimate based on proposed 2024 budget is 30.17%
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Metro Area Average City Tax Rates
City Levy/Tax Capacity = Tax Rate
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City Levy/Tax Capacity = Tax Rate
2024 Prior Lake City Tax Rate estimate based on proposed 2024 budget is 30.17%
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Scott County Tax Capacity Rate by City
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Resident Impact of Proposed City Tax Levy Change
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Resident Impact of City Tax Levy
Median Valued Home
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Resident impact – 2023 tax dollar for a median valued home
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* Other includes Scott County CDA, City EDAs ( Jordan, Prior Lake & Shakopee), Water Districts, Sewer District, & Region Nine Development Commission
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Council Discussion
Council Action Requested
Resolution 1- Consider Approval of a Resolution Approving Final 2024 City Budgets and Certifying Final 2024 City of Prior Lake Property Tax Levy to Scott County Department of Taxation
Resolution 2 - Consider Approval of a Resolution Approving Final 2024 Economic Development Authority Budget and Certifying Final 2024 Economic Development Authority Property Tax Levy
to Scott County Department of Taxation
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