09-28-2020 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Sarah Cotton MEETING DATE: September 28, 2020 TOPIC: Resolution No. 20-108, Adopting the Preliminary 2020 Tax Levy, Collectible in 2021 VOTE REQUIRED: Simple Majority BACKGROUND Minnesota State Statutes require the City of Lino Lakes to adopt and certify a preliminary tax levy for the coming year on or before September 30th. The City Council and staff have met several times to discuss budget and levy considerations for 2021. The total preliminary levy includes dollars for the general operating budget as well as bonded indebtedness. City Council and staff reviewed a proposed preliminary tax levy at the September 14, 2020 Work Session. Staff has prepared this report and Resolution No. 20-108 based on the figures that were reviewed on September 14th. The preliminary 2020/2021 levy includes resources for on-going city operations and contingencies for unforeseen expenditures. The proposed preliminary tax levy of $11,141,815 represents a $650,297 or 6.20% increase over the 2019/2020 tax levy. Over the last year the City’s net tax capacity value has grown by an estimated 6.92 %. The levy is estimated to result in a city tax rate of 39.870% for 2021, a rate flat to the 2020 tax rate of 39.870%. The preliminary levy in Resolution No. 20-108 represents the City’s maximum levy for 2021. The final levy may be decreased, but the preliminary levy cannot be raised when it is adopted in December. The levy may be further reviewed by the City Council and staff prior to the public hearing on the levy in December for changes, if necessary. RECOMMENDATION Staff recommends adoption of Resolution No. 20-108. ATTACHMENTS Resolution No. 20-108 General Fund Forecast Gap Analysis 2021 Proposed Budget & Tax Levy