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Home My WebLink AboutAug2024_2025 Preliminary Budget2025 Preliminary Tax Levy and Budget August 15, 2024 CEC Meeting PriorLakeMN.gov 2025 Tax Levy and Budget Schedule 2 Feb/March/April– Strategic Financial Planning Work Sessions July 23 – Preliminary Budget/Tax Levy Discussion/CIP Debt Impacts – 2024 only August 27– Budget Work Session September 24 - Public Budget Meeting/Adopt Preliminary Tax Levy and Budget Nov. 12– Budget Work Session Dec. 10 – Public Budget Meeting/Adopt Final Tax Levy and Budget Tax Levy and Budget Schedule PriorLakeMN.gov Overview – 2025 Preliminary Budgets 3 Fund Budget Amount General Fund $ 22,018,000 Debt Service Funds 5,220,000 Rev. Equipment Fund 1,074,000 Rev. Park Equipment Fund 1,950,000 Facilities Mgmt Fund 762,000 Governmental Funds: Property Tax Levy Supported PIR Fund (street overlay) 404,000 Other (Capital Park, Cable Funds)2,509,000 EDA 725,000 Water Fund 5,623,000 Sewer Fund 5,437,000 Enterprise Funds: User Fee for Service Provided Stormwater/Water Quality Fund 2,365,000 Total $ 48,087,000 PriorLakeMN.gov General Fund Expenditures $22,018,000 4 General Government $4,535,000 21% Public Safety - Police & Fire $10,568,000 48% Public Safety - All Other $975,000 4% Public Works $2,908,000 13% Parks & Recreation $2,770,000 14% MV Debt Service Transfer $262,000 1% PriorLakeMN.gov YTD 2024 Average en route time- 01:12 Average on scene time- 05:30 Average total: 06:42 •En route time (time out the door) •On scene time (time to get to the fire scene) 5 Fire Department Metrics YTD 2024 Average total call time has improved by 44% since 2023. Public education events 62 Preliminary preplan and safety inspections 33 PriorLakeMN.gov Budget Overview 6 The proposed budgets reflect additional resources needed for the following areas: •Proposed personnel funding for a Fire Marshal, the Assistant Finance Director transition to a full-time position, and levy impact of the 2024 new Police Officer that was funded with one-time state aid in the prior year. •Funding capital plans for PayGo strategy for annual capital replacement needs for equipment/park equipment/facilities. •Unfunded mandates (joint county prosecution) •Inflationary/Contract increases for wages and commodities •Reduction in the rate of residential development (Prior Lake is still experiencing community growth, but at a slower rate than the previous several years is anticipated.) PriorLakeMN.gov * •The growth of wages surpassed that of inflation for the first time since March 2021 in February of 2023. •April YTD wage growth was 4.7% as compared to CPI/inflation rate of 3.3%. 71% of city budget is personnel costs. 7 2025 Base Tax Levy Considerations Growth (New Construction)1.3% Wage Growth *4.7% Debt Service 0.0% Joint prosecution (unfunded mandate)1.0% Base Property Tax Levy Considerations 7.0% PriorLakeMN.gov 8 •The 2025 proposed tax levy increase is $1,290,000 •The proposed tax levy increase is 6.9% •Base levy considerations total 7.0% levy increase •Public Safety (Police & Fire) represents ~40% of the total levy increase ($492k which includes a new Fire Marshal and Police officer funded with one- time state aid in prior year) Components of the Tax Levy Change 2025 Budget / Tax Levy -July 23 Council Worksession Proposed Tax Levy Increase: 4.2%$788,000 1.1%$200,000 1.6%$302,000 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% Mandatory CIP -Tax Levy Components Personnel Adds Total: 6.9% $1,290,000 PriorLakeMN.gov Property Tax Projection Summary •Total CITY tax levy of $20,006,508 which is an 6.9% increase from the prior year levy based on the preliminary budgets. •City tax rate of 31.2% (2.96% increase). •Total EDA tax levy of $405,000 which is a 3.85% increase from the prior year levy based on the preliminary budgets. •EDA tax rate of .64% (.15% decrease). 9 PROPERTY TAX PROJECTION SUMMARY - CITY Adopted Budget 2024 Proposed Budget 2025 TAX LEVIES - CITY 18,715,289 20,006,508 TOTAL $ CHANGE IN TAX LEVIES 1,859,077 1,291,219 TOTAL % CHANGE IN TAX LEVIES 10.97%6.90% CITY TAX CAPACITY TAX RATE 30.3%31.2% Annual % Change -city only excludes EDA 7.84%2.96% CITY MARKET VALUE TAX RATE 0.00458%0.00464% Annual % Change 2.77%1.25% PROPERTY TAX PROJECTION SUMMARY - EDA Adopted Budget 2024 Proposed Budget 2025 TAX LEVY - EDA 390,000 405,000 TOTAL $ CHANGE IN TAX LEVIES 20,000 15,000 TOTAL % CHANGE IN TAX LEVIES 5.41%3.85% EDA TAX RATE 0.64%0.64% Annual % Change 2.69%-0.15% PriorLakeMN.gov Property Tax Rate History 10 PriorLakeMN.gov Seven County Metro Area Average Tax Capacity Rate 11 City Levy/Tax Capacity = Tax Rate •Prior Lake’s Tax Rate has been consistently lower than average tax rate for Seven-County Metro area cities. •2024 Prior Lake City Tax Rate of 30.29% •2025 Prior Lake City Tax Rate based on preliminary budget is 31.20% PriorLakeMN.gov •City Levy/Tax Capacity = Tax Rate •2025 Prior Lake City Tax Rate estimate based on preliminary 2025 budget is 31.20% 12 Scott County Tax Capacity Rate by City City 2023 2024 Belle Plaine 81.02%88.96% Credit River 16.14%17.10% Elko New Market 40.75%46.25% Jordan 58.56%57.23% New Prague 43.77%42.43% Prior Lake 28.11%30.30% Savage 35.99%37.61% Shakopee 28.59%27.40% PriorLakeMN.gov 13 Resident Impact of City Tax Levy PriorLakeMN.gov 14 Questions?