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• 2022 State funded Local Government Aid remains unchanged from 2021. • Police contracted services has increased by $29,065. • Excess Tax Increment collections are projected to decrease by $32,475 in 2022. • General Fund investment earnings are expected to decline by $9,500 in 2022. • School District opted to eliminate the DARE program in January 2021, revenue loss of $14,500. • Statewide appeal to extend PERA Aid failed, lost revenue $7,197 The 2022 HRA Budget and Levy cost drivers is substantially personnel and professional costs and inflationary impacts. Therefore, the proposed Levy increase for the HRA is 6.00% or $11,850. The 2022 Debt Related Levies are proposed to increase by $0 over the 2021 combined debt 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 2021 street bonds issued along with existing debt service requirements would have required a 11.91 % increase in the overall Levy. The 2022 Capital Improvement Program (CIP) and the 2022 Building Improvement Levies annually proposed increases of $25,000 and $5,000 respectively were deferred for 2021 and have been reinstated for 2022. An Infrastructure levy supporting Infrastructure improvements was established in 2021. A 2022 levy increase of $5,000 has been proposed. A Park Improvement levy supporting park improvements has been proposed for 2022. Annual levy increases of $5,000 are planned in connection with repaying the interfund loan which financed the resurfacing of the City Hall tennis courts. The repayment term is 15 years with the Park Improvement levy reaching $50,000 by 2031. The scheduled Levy and Interfund loan activity will produce additional funds for future park improvements. Upcoming Budget meetings At the September 14, 2021 City Council meeting, Staff will present the preliminary 2022 Budget and Property Tax Levy to the City Council for approval. At this meeting a resolution will need to be passed certifying the preliminary levy to Hennepin and Ramsey Counties. At the October 12, 2021 Council work session, Staff will present the proposed 2022 updates to the long-term capital budget plans. At the October 26, 2021 City Council meeting, Staff will present the 2022 long term capital budgets as revised. Requested City Council action will be for the approval of 2022 capital levies and long-term plans. The final presentation of the 2022 Budget and Property Tax Levy (Truth in Taxation) hearing is scheduled for the December 14, 2021 Council Meeting. At the meeting, Staff will present a recap of the final 2022 Budget and the 2022 Property Tax Levy’s impact on property tax bills.