09-25-2023 Council Meeting Packet

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1 CITY COUNCIL REGULAR MEETING STAFF REPORT AGENDA ITEM 2A STAFF ORIGINATOR: Hannah Lynch, Finance Director MEETING DATE: September 25, 2023 TOPIC: Adopting the Preliminary 2023 Tax Levy, Collectible in 2024 VOTE REQUIRED: 3/5 ______________________________________________________________________________ INTRODUCTION Minnesota State Statutes require the City of Lino Lakes to adopt and certify a preliminary tax levy for the coming year on or before October 2nd (as September 30th falls on a weekend). The preliminary 2023/2024 tax levy of $14,120,928 represents a $1,227,013 or 9.52% increase over the 2022/2023 tax levy. Over the last year the City’s net tax capacity value has grown by 8.53%. The levy is estimated to result in a city tax rate of 36.007% for 2024, an increase from the 2023 tax rate of 34.974%. The preliminary levy in Resolution No. 23-97 represents the City’s maximum levy for 2024. The final levy may be decreased, but cannot be raised when it is adopted in December. BACKGROUND The City Council held two special budget work sessions where the 2024 Draft Budget & Tax Levy was reviewed: • August 14, 2023: Tax Levy and General Fund Budget • August 28, 2023: The Rookery Activity Center Fund Budget, Enterprise Fund Budgets, and 2024 Capital Equipment Replacement. After review, Council provided direction regarding desired changes at the work session on September 5, 2023. The following changes have been made to the 2024 Draft Budget & Tax Levy: • Updated tax capacity values from Anoka County • Increased the Rookery Activity Center Fund levy to $500,000 from $325,000 • Removed Digital Mobile Evidence and Fire Equipment for New Tenders from Capital Equipment Replacement Fund (402) as they were approved to be funded with Public Safety Aid