08-12-2024 - Council Meeting Agenda Packet (2)

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CITY COUNCIL WORK SESSION STAFF REPORT ITEM NO. 3 STAFF ORIGINATOR: Hannah Lynch, Finance Director WORK SESSION DATE: August 12, 2024 TOPIC: 2025 Annual Budget and 2025-2029 Financial Plan BACKGROUND A 2025 Annual Budget and 2025-2029 Financial Plan are provided for the City Council's review. The drafts were prepared by department directors and reviewed by the City Administrator with the intention of providing the resources needed to continue city services at their current levels. The 2025 Annual Budget includes a total tax levy of $15,906,535 with represents a $1,785,607 or 12.65% increase. With a smaller increase in tax capacity values, the city tax rate is proposed to increase from 36.098% in 2024 to 39.857% in 2025. Detail behind the total tax levy increase can be found on pages 8-9 of the 2025 Annual Budget with additional narrative included below. The 2025-2029 Financial Plan was prepared in compliance to and in accordance with the Lino Lakes City Charter Section 7.05. The Transmittal Letter on page 3 gives a full overview of the Plan. The Financial Section focuses on all city funds, while the Capital Improvement Program (including Appendix A and B) focuses on the capital project and enterprise funds. The Project Detail in Appendix A appears in the following order: 1. Project Type 2. Project Year 3. Project Name The Plan has two Capital Improvement Programs: Citywide and Community Development. Citywide capital expenditures are reviewed during the annual budget process (see summary on page 38 of the 2025 Annual Budget) and approved when the plan is accepted by the City Council. Community Development projects are brought to the City Council as projects occur and may go through the competitive bidding process. General Fund Total 2025 base budget adjustments amount to $741,441 as detailed on pages 8-9 of the 2025 Annual Budget.