09-07-2021 Council Work Session Packet

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WS – Item 6 WORK SESSION STAFF REPORT Work Session Item No. 6 Date: September 7, 2021 To: City Council From: Hannah Lynch, Finance Director Re: 2022 Draft Budget and Tax Levy Background At the August 23rd Budget Work Session, Council directed Staff to decrease the proposed 2022 tax rate from 42.388% to 41.000%. The attached 2022 Annual Budget includes a tax rate of 41.000% based on current Anoka County tax capacity and fiscal disparity estimates. Updated preliminary values from the County should be available in September prior to the preliminary budget adoption. The changes proposed to the August 23rd draft budget are detailed on page 3 of the attached 2022 Annual Budget. If an item is shown in the reserves column then it is still in the budget, but funded with reserves and thus decreased the tax levy and resulting tax rate. The current draft budget does not include any funding for a recreation department. If Council wishes to bring back special event programming and warming house attendants, staff’s recommendation is attached in the Recreation Department Memo. Total funding required is estimated at $52,439 and would increase the currently proposed tax rate to 41.209%. Requested Council Direction Staff is prepared to discuss the draft budget and tax levy with the City Council during the budget work session on Tuesday, September 7th. Budget work sessions may be scheduled at the discretion of the Council to achieve the desired budget level for 2022. Council action is requested by the September 27th meeting in order to set the preliminary tax levy and to schedule a public hearing date in December on the budget and tax levy. The preliminary levy set at the September meeting may not be increased thereafter, but may be lowered before approving the final budget and levy in December.