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<br /> Item No: 8.B.
<br /> MDiJNDS VIEW Meeting Date: September 9, 2024
<br /> Type of Business: Council Business
<br /> City Administrator Review:
<br /> City of Mounds View Staff Report
<br /> To: Honorable Mayor and City Council
<br /> From: Gayle Bauman, Finance Director
<br /> Item Title/Subject: Resolution 9980 Approving the Preliminary Property Tax Levy for Fiscal
<br /> Year 2025 and Setting the Public Hearing Date
<br /> State law requires that the City certify a preliminary property tax levy to Ramsey County by September 30.
<br /> The City Council discussed the General Fund budget in April, June, August and September, and will review
<br /> the budget again before final approval in December.
<br /> The Charter limits the levy increase to 6.5% with a simple majority or up to 9% with a 4/5ths super majority
<br /> unless otherwise excluded (EDA, referendums and debt service/capital levies are excluded from the charter
<br /> limit). Each 1% levy increase is an additional $68,848. The state has certified Local Government Aid (LGA)
<br /> for 2025 at$1,030,158.
<br /> The Strategic Plan adopted by the City Council calls for less dependence on LGA. This goal is
<br /> not being met, as LGA is included in the General Fund budget at 100% of the certified amount.
<br /> The Strategic Plan also calls for reducing dependence on the Levy Reduction Assigned Fund
<br /> balance by 5-8% per year. $226,000 was used to balance the budget for 2024. The Strategic
<br /> Plan would call for the City to use $220,000 for 2025 and $214,000 for 2026 to balance the
<br /> budget.
<br /> The Assigned Levy Reduction fund balance was $2,047,160 at December 31, 2023. If these funds are not
<br /> used to balance the General Fund balance, council can direct them to be used in other areas of the City such
<br /> as capital projects.
<br /> Based on council discussion, the preliminary levy increase is set at 9.13% to provide flexibility for the Council
<br /> in case there are unforeseen challenges between now and final adoption. The goal is to have the smallest
<br /> levy increase needed. Once this amount is set, the levy cannot be increased but can be lowered. The final
<br /> levy will be adopted on or about December 9, 2024, along with the General Fund budget and all other City
<br /> budgets. The EDA levy will be set in a separate resolution.
<br /> History of the total City levy is as follows:
<br /> 2017 2018 2019 2020 2021 2022 2023 2024
<br /> General levy 3,873,112 4,064,574 4,283,430 4,511,393 4,706,004 4,961,188 5,303,635 5,744,565
<br /> Change 3.40916 4.94% 5.38% 5.32% 4.31% 5.42% 6.90% 8.31%
<br /> Referendum levy 205,000 295,200 310,000 330,000 330,000 385,000 385,000 385,000
<br /> EDA I evy 60,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
<br /> Fire Debt - - 165,800 171,190 166,291 165,916 127,164 88,910
<br /> GO Debt 90,835 514,211 418,446 416,294 413,984 416,766 413,983 416,293
<br /> Debt/Capital (Streets) levy 300,000 - 150,000 150,000 150,000 150,000 150,000 150,000
<br /> Total Levy 4,528,947 4,973,985 5,427,676 5,678,877 5,866,279 6,178,870 6,479,782 6,884,768
<br /> %Change 3.08% 9.83% 9.12% 4.63% 3.30% 5.33% 4.87916 6.25%
<br /> The draft General Fund budget is$8,837,419. This amount is subject to change as the Council gets additional
<br /> information and provides additional direction to staff before final approval in December.
<br /> The Mounds View Vision
<br /> A Thriving Desirable Community
<br />
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