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The 2021 HRA Budget and Levy cost driver is substantially personnel and professional costs. Therefore the proposed Levy increase for the HRA is 6.75% or $12,500. The 2021 Debt Related Levies are proposed to increase by $0 over the 2020 combined levies. A debt levy reduction program (Peak to Plateau) began in 2014 to stabilize the annual increase in levies created by the annual street reconstruction plan. Without the use of resources committed to this program the impact of 2020 street bonds issued along with existing debt service requirements would have required a 10.42 % increase in the overall Levy. The 2021 Capital Improvement Program (CIP) and the 2021 Building Improvement Levies annually proposed increases of $25,000 and $5,000 respectively are being deferred for 2021. Adjustments have been made to CIP and Building Improvement replacement schedules to make the zero levy increase in these capital improvement funds possible. For 2021 a levy to support Infrastructure improvements is proposed at $60,000. As discussed earlier specific costs supported by the general Fund levy in 2020 will now be supported by the Infrastructure levy in 2021. Therefore there is no overall levy increase due to establishing an additional capital fund levy. For 2021, the median taxable valuation for a single-family home in Saint Anthony is $338,000, an increase of 4.97% over 2020. Based on the median valuation of $338,000, the “City Portion” of 2021 property taxes is $2,118.59. A breakdown of the taxes is as follows: General Fund Budget $1,313.66 Road Improvements 528.73 Public Facilities 95.29 Capital Improvements 117.75 Tax Abatement 63.16 Total $2,118.59 In 2020 the median taxable valuation for a single-family home in Saint Anthony was $322,000 with City taxes of $2,064.30. Therefore, the increase in “City taxes” for a median value home will be $54.29 in 2021 (2.63%). The overall taxes on a median value single-family home will be $5,556.59 in 2021 compared to $5,534.48 in 2020. The 2021 overall increase of $22.11 reflects slight decreases in County and School taxes. Lastly, the estimated 2020 General Fund surplus is $405,908. This surplus is primarily due to the receipt of CARES funding. The current expectation is that COVID-19 expenditures will be continued in 2021. The level of that spending and the pandemics impact on revenues is unknown, and was not included in the 2021 budget. Therefore, the surplus is the resource for the 2021 unbudgeted COVID-19 financial impacts versus levy. At tonight’s Council meeting a resolution needs to be passed adopting the 2021 budgets and certifying the final tax levy to Hennepin and Ramsey Counties. Recommendation Staff recommends that Council approves resolution 20-088; Adopting the 2021 General Fund operating budget of $7,651,785 (based on 2021 General Fund expenditures) and certifying the final Property Tax Levy of $7,865,595 to Hennepin and Ramsey Counties 19