09-13-2023 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SPETEMBER 13, 2023 The Finance Director explained tonight the Council is asked to consider the preliminary property tax levy for 2024. The City Administrator described the previous work staff and Council have done on the budget to get to this point. He noted that once adopted and certified to the County, the levy could not be increased but could be decreased prior to final adoption. He reviewed the purpose and objective of the operating budget and identified strategic plan initiatives within the proposed 2024 budget. He reviewed the 2024 budget calendar and explained how the property tax dollars are distributed between the different entities as well as how the property tax dollars are spent between the different City departments. He reviewed the estimated City property tax levy, which would be an increase of 10.79 percent from 2023. He also compared that proposed levy increase to other communities within Ramsey County. Mayor Fischer commented that the City is paying a price for being on the low end, as it has not built- up funds for future projects. He noted that this increase is necessary for the City to be able to accomplish some of the things that have been discussed. The Finance Director provided information on the estimated tax rate as well as comparison information to other communities. He reviewed -the -estimated -property tax -impact on -residential -properties -and commercial/industrial properties. He also reviewed the estimated property tax impact on those property types using the previously discussed increase of seven percent. He highlighted the key impacts for the property tax levy. He provided details on the general fund revenues and expenditures included in the 2024 budget and highlighted ways the levy could be reduced if desired. He also provided information on the tax break application. Mayor Fischer commented that the Council has had a number of meetings along the way during this budget process which included presentations by different departments. He noted that the goal tonight is to set the not -to -exceed budget/levy amount. He noted that the previously proposed increase of 7.06 percent was the bare minimum to maintain operations and services and the Council asked staff to review the Strategic Plan to identify what would be necessary to accomplish some of those initiatives. D. Miller agreed that staff has done what was asked to look above the bare minimum and towards the goals of the future. The City Administrator noted that in this proposed budget they have included everything and asked if the Council agrees with that. Mayor Fischer commented that he has supported the 2.5 percent safety margin over the years but would be comfortable reducing that by one percent this year. Kwapick stated that he was going to suggest a decrease of .5 percent. Mayor Fischer noted that the Council contingency could be removed from the budget. He explained that the $100,000 included for the community building is a method to help plan for that. He confirmed the consensus of the Council to reduce the safety margin by one percent. D. Miller introduced the following resolution and moved its adoption: RESOLUTION NO. 2023-9-95 —APPROVING THE 2024 PRELIMINAR Y LE VY A T $41614,182 (9. 79 % INCREASE). The foregoing resolution was duly seconded by Kwapick. 5