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Item No. 2 Meeting Date: September 3, 2024 Type of Business: Council Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Gayle Bauman, Finance Director Item Title/Subject: Review Levy Scenarios and Utility Rates for 2025 COUNCIL CONSIDERATION Staff is requesting City Council to review and provide feedback on the levy scenarios included in this memo and the proposed utility rates for 2025. TAX LEVY City staff has received preliminary value information from the County and are now able to put together some projections on different tax levy increase amounts. Council has indicated they would like to look at what the impact would be if the City were to eliminate the General Fund budget deficit and balance the budget. This request has been factored into the scenarios below. All scenarios include an increase to the debt service levy of $1,995 to cover the 2025 debt payments. All scenarios also include an increase to the police referendum levies in total amount of $35,000 to cover the increased costs for three officers. Scenario #1 General Fund – not a balanced budget. Utilize $220,000 from levy reduction fund. EDA Fund – no increase to levy. Remains at $150,000 ($100,000 levy and $50,000 transfer). Street Improvement Fund – no increase to levy. Remains at $150,000. 2024 2025 % Change General levy capped at 6.5%5,833,475 6,045,936 3.64% Referendum levy 385,000 420,000 9.09% EDA levy 100,000 150,000 50.00% Debt/Capital (Streets) levy 566,293 568,288 0.35% TOTAL 6,884,768 7,184,224 4.35% Scenario #2 General Fund – not a balanced budget. Utilize $220,000 from levy reduction fund. EDA Fund – increase the EDA levy by $10,000 to $160,000. Street Improvement Fund – increase the Street Capital levy by $150,000 to $300,000.