09-25-2019 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator Brenda Malinowski, Finance Director DATE: September 19, 2018 RE: 2020 Preliminary Levy ACTIONS TO BE CONSIDERED: The Council is asked to consider motions to approve the 2020 Preliminary Levy, set a Budget Hearing, and approve the bonded indebtedness tax levy at zero. BACKGROUND: The City of Little Canada is required to establish a preliminary levy by September 30th. At a Council Workshop on September 11, city staff presented the 2020 proposed levy and budget for Council consideration. Following the presentation, Council members indicated they would like to see the gross levy stay at the proposed 4.50% gross levy for the preliminary levy certification. In addition, they would like to continue to review the budget and levy, before final adoption in December. The Preliminary Budget is located at this link: https://www.littlecanadamn.org/DocumentCenter/View/1343/Preliminary-Budget-2020-updated-09-18-19- version-2 Levy: The current proposed preliminary levy is as follows: Levy Component 2019 2020 $ Increase (Decrease) % Increase (Decrease ) General Fund $3,021,358 $3,207,350 $185,992 6.16% Fire Equipment Fund 160,700 160,000 (700) -.44% Infrastructure Fund 157,200 122,200 35,000 -22.26% Gross Levy $3,339,258 3,489,550 150,292 4.50% Based on this proposed levy, the City’s tax rate is proposed to decrease 1.52% from 26.131 to 25.734. The median home in Little Canada as calculated by Ramsey County increased 8.6% in value from $255,800 in 2019 to $277,800 in 2020. Based on preliminary tax capacity amounts from the County, the impact on this median value home in Little Canada will realize an increase in City taxes from $631 in 2019 to $684 in 2020 (increase of $53 or 8.3%). It is important to note that these are based on preliminary tax capacity amounts. Final tax capacity numbers are not yet available.