HomeMy WebLinkAboutAug2023 PRESENTATION 2024 BUDGET2024 Preliminary Tax Levy and Budget
August 24, 2023 CEC Meeting
PriorLakeMN.gov
2024 Tax
Levy and
Budget
Schedule
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June/July – Strategic Financial Planning Work
(Staff)
July 17 – Preliminary Budget/Tax Levy
Discussion/CIP Debt Impacts – 2024 only
August 21– Budget Work Session
September 18 - Public Budget Meeting/Adopt
Preliminary Tax Levy and Budget
Nov. 6 – Budget Work Session
Dec. 4 – Public Budget Meeting/Adopt Final Tax
Levy and Budget
Tax Levy and Budget Schedule
PriorLakeMN.gov
Overview – 2024 Preliminary Budgets
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Fund Budget Amount
General Fund $ 20,975,000
Debt Service Funds 5,219,000
Rev. Equipment Fund 976,000
Rev. Park Equipment Fund 65,000
Facilities Mgmt Fund 867,000 Governmental Funds: Property Tax Levy Supported
PIR Fund (street overlay) 6,665,000
Other (Capital Park, Cable
Funds)311,000
EDA 647,000
Water Fund 6,098,000
Sewer Fund 5,915,000 Enterprise Funds: User Fee for Service Provided
Stormwater/Water Quality
Fund 2,488,000
Total $ 50,226,000
PriorLakeMN.gov
General Fund Expenditures $20,975,000
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General Government
$4,452,000 21%
Public Safety - Police &
Fire $9,878,000 47%
Public Safety - All Other
$927,000 4%
Public Works
$2,834,000 14%
Parks & Recreation
$2,636,000 14%
MV Debt Service Transfer
$249,000 1%
PriorLakeMN.gov
Full-time Fire staffing model – Council
Approved for 2023 Midyear Start
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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 growth.
Paid-On-Call (POC) firefighters respond to calls for service via pager/phone-challenging
deployment model
PriorLakeMN.gov
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 residential development (Prior Lake is still experiencing community
growth, but at a slower rate than the previous several years is anticipated.)
•Inflationary/Contract increases for wages and commodities
•Funding capital plans for PayGo strategy for annual capital replacement needs for
equipment/park equipment/facilities.
PriorLakeMN.gov
Fire Department Metrics
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Fire Department key metrics for duty
engine– July 2023 (first month with
fulltime fire staffing model)
En route time (time to get out the door)
On scene time (time to get to the fire scene)
July 2023
Average en route time- 01:04
Average on scene time- 05:41
Average total call time: 06:45
July 2022
Average en route time- 05:21
Average on scene time- 06:28
Average total call time: 11:49
Public education events 2023- 14
Preliminary site inspections 2023- 5
PriorLakeMN.gov
*
•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
Growth (New Construction)1.3%
Wage Growth *6.0%
Debt Service 0.0%
Full-time Fire 2024 incremental levy
increase 3.1%
Elections 0.5%
Base Property Tax Levy Considerations 10.9%
PriorLakeMN.gov 9
•The 2024 proposed tax
levy increase is $1,994,000
•The proposed tax levy
increase is 11.81%
•3.8% of the proposed levy
increase is for FT Fire plus
Unfunded Mandates
PriorLakeMN.gov
Property Tax Projection Summary
•Total CITY tax levy of $18,857,710 which is
an 11.81% increase from the prior year
levy. City tax rate estimate of 30.29% (7.7%
increase).
•Total EDA tax levy of $390,000 which is a
5.41% increase from the prior year levy.
EDA tax rate estimate of .63% (1.25%
increase)
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PriorLakeMN.gov
Property Tax Rate History
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PriorLakeMN.gov
•Prior Lake’s Tax Rate has been
consistently lower than average tax rate
for Seven-County Metro area cities.
•2023 Prior Lake City Tax Rate of 28.11%
•2024 Prior Lake City Tax Rate based on
preliminary 2024 budget is 30.29%
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Metro Area Average City Tax Rates
City Levy/Tax Capacity = Tax Rate
PriorLakeMN.gov
•City Levy/Tax Capacity = Tax Rate
•2024 Prior Lake City Tax Rate based
on preliminary 2023 budget is 30.29%
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Scott County Tax Capacity Rate by City
City 2022 2023
Belle Plaine 92.42%81.02%
Credit River 15.56%16.14%
Elko New Market 47.73%40.75%
Jordan 73.83%58.56%
New Prague 52.22%43.77%
Prior Lake 30. 47%28.11%
Savage 40.33%35.99%
Shakopee 32.11%28.59%
PriorLakeMN.gov 14
Resident Impact of City Tax Levy
RESIDENTIAL IMPACTS
% Net Net Net
of Payable Inc/Dec Difference
Inc/Dec Total 2024 23 vs 24 % Change
+15.01+%89 1%1,468$ 282$ 23.8%
+10.01-15.00%52 1%1,437$ 250$ 21.1%
+5.01-10.00%744 8%1,373$ 187$ 15.7%
+0.01-5.00%2,168 23%1,309$ 123$ 10.4%
No Change 986 10%1,277$ 91$ 7.7%
-0.01-5.00%4,919 51%1,243$ 57$ 4.8%
-5.01 - 10.00%657 7%1,173$ (13)$ -1.1%
-10.00 - 15.00%5 0%1,104$ (82)$ -7.0%
-15.01% +6 0%1,069$ (117)$ -9.9%
9,626 100%
% EMV Value Range
# of
affected
Properties
Median $415,300
PriorLakeMN.gov 15
Questions?