HomeMy WebLinkAboutSept 2022 CEC Budget Presentation2023 Preliminary Tax Levy and Budget
September 16, 2022 CEC Meeting
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
Overview –2023 Preliminary Budgets
3
Fund Budget Amount
General Fund $18,853,459
Debt Service Funds 5,353,992
Rev. Equipment Fund 1,372,600
Rev. Park Equipment Fund 1,155,000
Facilities Mgmt Fund 613,500
PIR Fund (street overlay) 203,100
Other (Capital Park, Cable Funds)664,400
EDA 627,615
Water Fund 4,994,688
Sewer Fund 4,610,620
Stormwater/Water Quality Fund 1,486,655
Total $39,935,629
PriorLakeMN.gov
Full-time Fire staffing model
4
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
PriorLakeMN.gov
Full-time Firefighter Staffing Model –July 1, 2023 start date
Budget Assumptions
5
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.
PriorLakeMN.gov
General Fund Expenditures $18,853,459
6
General Government
$3,710,989 20%
Public Safety -Police &
Fire $8,527,007 45%
Public Safety -All Other
$933,613 5%
Public Works
$2,501,244 13%
Parks & Recreation
$2,546,718 14%
MV Debt Service Transfer
$633,888 3%
(includes incremental levy increase for
transition to FT Firefighters)
PriorLakeMN.gov
2023 Base Tax Levy Considerations
7
Growth (New Construction)2.0%
CPI-U (MSP)8.7%
Debt Service -0.3%
Base Property Tax Levy
Considerations
10.4%
PriorLakeMN.gov
•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
8
2023 Proposed Tax Levy Change
based on Preliminary Budgets
PriorLakeMN.gov 9
•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%
PROPERTY TAX PROJECTION SUMMARY
Adopted
Budget 2022
Proposed
Budget 2023
No SAFER Grant
TAX LEVIES 15,252,761 17,289,796
TOTAL $ CHANGE IN TAX LEVIES 937,554 2,037,035
TOTAL % CHANGE IN TAX LEVIES 6.55%13.35%
CITY TAX CAPACITY TAX RATE 30.47%28.21%
Annual % Change -city only excludes EDA 0.66%-7.40%
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%
2023 Tax Levy Impact and Tax Rate
PriorLakeMN.gov
•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
PriorLakeMN.gov
•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
City 2021 2022
Belle Plaine 84.38%92.42%
Credit River 15.04%15.56%
Elko New Market 45.99%47.73%
Jordan 73.92%73.83%
New Prague 51.38%52.22%
Prior Lake 30.27%30. 47%
Savage 42.25%40.33%
Shakopee 32.10%32.11%
PriorLakeMN.gov 12
Resident Impact of City Tax Levy
RESIDENTIAL IMPACTS
Median $411,560
% Net Net
of Inc/Dec Difference
Inc/Dec Total 22 vs 23 % Change
+15.01+%8,172 86%121$ 11.2%
+10.01-15.00%845 9%57$ 5.3%
+5.01-10.00%413 4%2$ 0.2%
+0.01-5.00%91 1%(53)$ -5.0%
No Change 5 0%(81)$ -7.5%
-0.01-5.00%9 0%(108)$ -10.1%
-5.01 - 10.00%1 0%(164)$ -15.2%
-10.00 - 15.00%0 0%(219)$ -20.3%
-15.01% +6 0%(246)$ -22.8%
9,542 100%
% EMV Value Range
# of
affected
Properties
PriorLakeMN.gov 13
Questions?