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<br /> WS – Item 1 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 1 <br /> <br /> <br />Date: November 30, 2020 <br /> <br />To: City Council <br /> <br />From: Hannah Lynch, Finance Director <br /> <br />Re: 2021 Budget <br /> <br />Background <br /> <br />At the September 28, 2020 City Council meeting, a preliminary 2021 budget and tax levy <br />was adopted by the Council. The tax levy was $11,141,815, an increase of $650,297, or <br />6.20% compared to the the 2020 tax levy. The levy was estimated to result in a city tax <br />rate of 39.870% for 2021, resulting in a stable tax rate compared to 2020. <br /> <br />Staff has made updates to the 2021 budget in the following areas: <br />• Revenues <br />o Intergovernmental Revenue <br /> $46 decrease in the SCORE recycling grant as a result of decreased <br />personal costs in the solid waste department <br />• Expenditures <br />o Personal Services <br /> $6,619 decrease due to positions being filled that were previously <br />vacant and union contract tentative agreements <br />o Other Services and Charges <br /> $2,905 increase due to an $12,348 increase in property & casualty <br />insurance premiums offset by a $9,443 decrease in Metro-iNet <br />services <br />o Others <br /> $3,668 increase to contingency due to previously noted changes to <br />maintain a balanced budget <br /> <br />The General Fund Forecast Gap Analysis has been provided which reflects the updates <br />mentioned above. There has been no change in the proposed tax levy, although Anoka <br />County provided updated tax capacity values which has decreased the tax rate to <br />39.437%. <br /> <br />Three budget areas still need to be reviewed before the final 2021 annual budget is <br />considered by the Council on December 14, 2020. Those areas include the Water and <br />Sewer Fund budgets, Capital Improvement Plan, and the General Fund contingency. <br /> <br />Water and Sewer Fund Budgets <br />