10.3. SR 11-04-2019 Eclty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 10.3
Agenda Section Meeting Date Prepared by
Work Session November 4, 2019 Lori Ziemer, Finance Director
Item Description Reviewed by
2020 Budget Cal Portner, City Administrator
Reviewed by
Action Requested
Continue 2020 budget discussion.
Background/Discussion
On September 3, Council approved a maximum levy of$12,953,570,which is an 8.5%increase over the
2019 levy. This maximum levy amount required adjustments to the general fund budget of$134,200.
Staff has reviewed and made adjustments of$222,000 to bring the levy to $12,865,770,which is a 7.8%
change. The general fund budget change is under 5%.
Pending any adjustments to property values by the county, the projected tax rate is 46.084 compared to
45.907 in 2019.
Financial Impact
N/A
Attachments
■ Tax levy
■ General Fund summary
■ Tax impacts
The Elk River Vision
A PehoMing community Pitb revolutionary and spirited resourcefulness, exceptional P,`01 W E H E 8 6 T
service, and community engagement that encourages and inspires prosperity INAMIRE1
9/3/2019 11/4/2019
City of Elk River Levied Preliminary Preliminary
Tax Levy Pay 2019 Pay 2020 Pay 2020
General Fund $11,187,400 $12,160,300 $11,938,300
Library 66,000 69,000 69,000
General Property Tax Levy 11,253,400 12,229,300 12,007,300
Special Levies:
2010 GO Public Safety Building Bonds 470,130 619,920 619,920
Economic Development Tax Abatement 160,235 138,550 138,550
Government Building Reserve 55,000 - -
Lake Orono Dredging - 100,000 100,000
Total Levy $11,938,765 $13,087,770 $12,865,770
General Fund Change from Previous Year $689,600 $972,900 $750,900
Percentage Change from Previous Year 6.6%8.7%6.7%
Total Dollar Change from Previous Year $874,935 $1,149,005 $927,005
% Change 7.9%9.6%7.8%
NTC Value $26,006,616 $27,917,994 $27,917,994
Tax Rate 45.907%46.879%46.084%
% Increase in NTC 8.2%7.3%7.3%
Levy Reductions
Revenues:
Police State Aid 25,000
Fire State Aid 10,000 Expenditure offset
State reimb - Pres. primary 21,000 Expenditure offset
Police services 5,000
Recreation fees 6,000
Transfer - Utilities 169,000
Expenditures:
Personal Services -
Admin 8,600
Elections 21,000 Revenue offset
Fire (19,000)
Fire - State aid 10,000 Revenue offset
Fuel adjustment (11,000)
Total Levy Reductions ($222,000)
2020 PRELIMINARY TAX LEVY
2018 2019 2020 %
ACTUAL BUDGET PRELIMINARY CHANGE
General Fund Revenues:
Property taxes 10,508,700$ $11,187,400 $11,938,300 6.7%
Other taxes 137,532 150,000 140,000 -6.7%
Licenses & Permits 790,831 857,000 798,500 -6.8%
Intergovernmental Revenues 578,324 571,500 611,500 7.0%
Charges for Services 930,293 969,200 947,500 -2.2%
Fines 137,114 154,500 140,000 -9.4%
Other Revenues 273,799 259,500 276,500 6.6%
Transfers In 2,058,735 2,072,100 2,167,300 4.6%
Total General Fund Revenues 15,415,328 16,221,200 17,019,600 4.9%
General Fund Expenditures
General Government:
Mayor & Council 149,224 149,050 163,050 9.4%
Communications 253,786 326,350 328,950 0.8%
Administrative Services 490,436 531,850 568,850 7.0%
Human Resources 255,559 280,500 305,800 9.0%
Elections 37,614 6,800 83,200 1123.5%
Finance 605,933 644,550 648,700 0.6%
Information Technology 364,601 440,000 556,300 26.4%
Legal 273,462 230,000 240,000 4.3%
Community Development 159,737 162,750 206,650 27.0%
Planning 344,685 352,550 352,350 -0.1%
Building Maintenance 670,808 726,550 767,750 5.7%
Energy City 29,992 31,150 27,550 -11.6%
Total General Government 3,635,837 3,882,100 4,249,150 9.5%
Public Safety:
Police 5,462,953 5,856,650 6,186,750 5.6%
Fire 1,136,830 1,353,900 1,398,600 3.3%
Building Safety 672,567 513,500 527,550 2.7%
Code Enforcement 95,493 115,700 99,450 -14.0%
Environmental 42,443 32,450 53,150 63.8%
Total Public Safety 7,410,286 7,872,200 8,265,500 5.0%
Public Works:
Street Maintenance 1,213,910 1,418,150 1,386,700 -2.2%
Snow Removal 279,936 279,600 305,900 9.4%
Equipment Services 208,273 221,400 231,200 4.4%
Engineering 206,926 357,750 385,500 7.8%
Total Public Works 1,909,045 2,276,900 2,309,300 1.4%
Culture & Recreation:
Parks Maintenance 1,130,649 1,147,600 1,272,700 10.9%
Recreation 739,982 792,000 721,100 -9.0%
Sr. Citizen Programs 227,153 250,400 201,850 -19.4%
Total Culture & Recreation 2,097,784 2,190,000 2,195,650 0.3%
Total General Fund Expenditures $15,052,952 $16,221,200 $17,019,600 4.9%
CITY OF ELK RIVER
2020 GENERAL FUND BUDGET
Residential (Homestead): With Valuation Change Impact
Tax Capacity Rate
Value 45.907 46.084 Dollar Percent
2018 2019 Change 2018 2019 2019 2020 change change
$178,900 $192,900 7.8%$1,578 $1,730 $724 $797 $73 10.1%
$215,800 $223,600 3.6%$1,980 $2,065 $909 $952 $43 4.7%
$297,400 $305,900 2.9%$2,869 $2,962 $1,317 $1,365 $48 3.6%
$338,800 $350,100 3.3%$3,321 $3,444 $1,524 $1,587 $63 4.1%
$253,600 $270,100 6.5%$2,392 $2,572 $1,098 $1,185 $87 7.9%
$392,400 $407,800 3.9%$3,905 $4,073 $1,793 $1,877 $84 4.7%
$229,900 $241,200 4.9%$2,134 $2,257 $979 $1,040 $61 6.2%
$200,000 $200,000 0.0%$1,808 $1,808 $830 $833 $3 0.4%
** Median Value Home
Commercial/Industrial:
Tax Capacity Rate
Value 45.907 46.084 Dollar Percent
2018 2019 Change 2018 2019 2019 2020 change change
$4,513,000 $4,505,300 -0.2%$89,510 $89,356 $41,091 $41,179 $88 0.2%
$3,968,500 $3,904,800 -1.6%$78,620 $77,346 $36,092 $35,644 ($448)-1.2%
$1,597,100 $1,617,000 1.2%$31,192 $31,590 $14,319 $14,558 $239 1.7%
$2,499,800 $2,575,300 3.0%$49,246 $50,756 $22,607 $23,390 $783 3.5%
$2,000,000 $2,000,000 0.0%$39,250 $39,250 $18,018 $18,088 $70 0.4%
Tax Capacity Value
Estimated City Tax
CITY OF ELK RIVER
ESTIMATED TAX IMPACT
Estimated Property
Value
Property Value
Estimated City Tax
Estimated
Tax Capacity Value