12-15-2021 Council Packet - Laserfiche WebLink

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Final Levy Option One: A Council Contingency of $33,260 was included in the in the preliminary budget which can be utilized to fund compensation adjustments identified in the classification and compensation study. If the police contract savings of $35,220 are added to this amount, it will bring the Council Contingency budget to $68,480. This will result in a final levy increase of 5% for 2022 as follows: Levy Component Preliminary 2022 % Increase (Decrease) Preliminary Levy $3,761,410 5.00% Police Contract Savings (35,220) Increase Council Contingency 35,220 Gross Levy $3,761,410 5.00% Final Levy Option Two: If only a portion of the police contract savings are added to the Council Contingency, the gross levy can be reduced by a half percent. Staff is recommending that a minimum of $17,740 of the police contract savings be utilized to fund compensation adjustments identified in the study, which will bring the Council Contingency budget to $51,000. The remaining police contract savings can be used to lower the final property tax levy to 4.5% for 2022 as follows: Levy Component Preliminary 2022 % Increase (Decrease) Preliminary Levy $3,761,410 5.00% Police Contract Savings (35,220) Increase Council Contingency 17,740 Effect of these items on the 97.5% collection rate (450) Gross Levy $3,743,480 4.50% Levy Impact Based on the two final levy options listed above, the impact on the median home in Little Canada that increased in value by 3.75% from $293,000 in 2021 to $304,000 in 2022 are as follows: Levy Amount Tax Rate City Property Tax on Median Home Annual $ Increase on Median Home from 2021 $3,761,410 (5.0 % Increase) 25.559 $751 $75 $3,743,690 (4.5 % Increase) 25.421 $747 $71 A large increase in Little Canada’s fiscal disparity contribution for 2022 is a key factor in this increase. Fiscal disparity contributions are based on growth in the commercial, industrial, and the public utility tax base. When the growth on commercial, industrial, and public tax bases occur, the City realizes the increases in the taxable value in one year and see the increase in the fiscal disparity contribution in the following year. Based on the preliminary levy increase of 5%, the average city tax increase on this median home over the last nine years is 3.07% per year.