7.1 SR 12-07-2020
Request for Action
To Item Number
Mayor and City Council 7.1
Agenda Section Meeting Date Prepared by
Public Hearing December 7, 2020 Lori Ziemer, Finance Director
Item Description Reviewed by
2021 Budget and Tax Levy Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, the 2021 General, Special Revenue, and Enterprise fund budgets.
Adopt, by motion, the resolution authorizing the property tax levy for collection in 2021.
Background/Discussion
City staff began the budgeting process in May developing their 2021 department goals and requested budgets.
The City Council and staff met in numerous work sessions to review in detail each department’s operating
budget and the property tax levy. In September, the Council approved the preliminary tax levy that was used to
calculate the proposed property tax notice that was mailed to each property owner.
General Fund Budget
The 2021 General Fund budget is at $17,532,500, which is a 3% increase over 2020. The greatest portion of the
city’s General Fund operating budget is dedicated to public safety programs and services, with
general government, public works, and parks and recreation making up the balance. Because city government is
primarily a service industry, 77% of the operating budget is for personal service expenditures.
Tax Levy
On September 3, the City Council adopted the preliminary tax levy of $13,510,920. Since then, additional
reductions of $407,100 have been made to the General Fund budget and the debt service levy for a 2021 tax
levy of $13,103,820.
The county estimates the city’s Net Tax Capacity (NTC) values increasing about 6%, attributable to new
growth and market value increases. The final NTC may change slightly as the county continues to update
property values before calculating taxes in early 2021. Based on the current NTC values, the proposed tax rate
is 44.486%, a decrease from last year’s rate of 46.241%.
The city accounts for about 36% of a homeowner’s total property tax bill. The remainder is attributed to the
county (37%), the school district (25%), and other jurisdictions (2%). For businesses, the city’s share is about
28% of the total.
Most of the property tax levy (94%) is used to fund city services such as police, fire, street maintenance, parks
and recreation, and general government. The remaining 6% pays for debt service, tax abatement, and library
operations.
Financial Impact
Summary of 2021 Budgets
Below is a summary of the proposed budgets Council has reviewed and to be approved:
Revenues Expenditures Net Effect
General Fund $17,532,500 $17,532,500 $ -
Special Revenue Funds:
Library $106,500 $116,500 $ (10,000)
Multipurpose Facility $1,757,150 $1,461,900 $295,250
Enterprise Funds: Revenues Expenditures Depreciation Capital Net Effect
Sewer $2,620,500 $2,535,400 $1,646,000 $135,000 $(1,695,900)
Liquor $7,725,300 $7,451,150 $ 124,000 $ 20,000 $ 130,150
Garbage $1,738,000 $1,587,850 $ - $ - $ 150,150
Storm Water $ 580,000 $ 644,900 $ 458,000 $ - $ (522,900)
Mission/Policy/Goal
Grow responsibly and be good stewards for every dollar to develop a sustainable and prosperous community
for all to live, work and play.
Attachments
Tax Levy Resolution
2021 Budget and Tax Levy Presentation
Resolution 20 -____
A Resolution of the City of Elk River Authorizing the Proposed Property Tax
Levy for Collection in 2021
WHEREAS, the Elk River City Council has reviewed the City’s anticipated expenditures
for all funds in 2021; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2021; and,
WHEREAS, revenues from sources other than property taxes are not sufficient to meet
anticipated expenditures of all funds; and,
WHEREAS, debt levies have been adjusted or cancelled based on revenue collections and
projections.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The following amounts are to be levied as property taxes
payable in 2021:
Levy__
General Fund $ 12,315,000
Library 71,500
2010A G.O. Capital Improvement Plan Bonds 618,870
Economic Development Tax Abatement 98,450
TOTAL $ 13,103,820
th
Passed and adopted this 7 day of December 2020.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
December 7, 2020
General FundSpecial Revenue FundsEnterprise Funds
2021 Budgets:2021 City Property Tax LevyPublic CommentApprove BudgetsAdopt City Tax Levy
Purpose of Meeting
2021 Budget and Tax Levy Hearing
2021 General Fund Budget Summary
24%
General
Government
49%
Public Safety
by Function
12%
Parks &
Recreation
–
15%
Public Works
General Fund Expenditures
77.0%
Services
Personal
0.3%
Outlay
Capital
by Category
–
16.1%
Service
Charges
6.6%
Supplies
General Fund Expenditures
70%
Property Taxes
14%
Transfers In
2%
Other
Revenues
by Source
1%
Fines
–
5%
Services
Charges for
3%
Intergovt
5%
1%
Permits
Licenses/
Other Taxes
General Fund Revenues
3.8%
-
Avg.
Transfer outCapitalService ChargesSuppliesPersonal Services
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
$0
General Fund Budget History
$8,000,000$6,000,000$4,000,000$2,000,000
$20,000,000$18,000,000$16,000,000$14,000,000$12,000,000$10,000,000
Special Revenue
Other Budgets
Enterprise Funds:
Other Budgets
1)
2)
3)
Contact Sherburne County Assessor
Market Value Questions?
Property Tax Valuation
City Tax Levy
23%
General
46%
Government
Public Safety
1%
Develop.
Economic
5%
Debt
Service
0.5%
Library
Tax Levy by Use
11%
Parks &
Recreation
14%
Public Works
2.8%
–
2021
$13,103,820
Avg.
2020
$12,865,770
2019
2021)
$11,938,765
-
2018
$11,063,830
(2012
2017
$10,563,770
2016
$10,171,733
2015
$10,017,357
2014
$9,853,835
2013
$10,175,765
2012
$10,275,815
Tax Levy History
$0
$8,000,000$4,000,000
$16,000,000$12,000,000
city, county & school comparison (estimates only)
Tax Capacity Rates
City
$.36
$.02
Other
$.37
County
$.25
School
District
Property Tax Dollar Distribution
Estimated City Tax Impact
$549 - Public Safety$269 - General Govt.$168 - Public Works$135 - Parks & Rec.$56 - Debt Service$9 - Econ. Develop.$7 - Library
$1,400
$1,200
$1,000
$800
$1,193 City Tax
Median Value Home
$600
$400
Distribution of 2021City Tax
$200
$0
67.800
Clear Lake
average = 50.982%
61.668
Princeton
County
50.351 2021 Sherburne
East St. Cloud
48.445
Big Lake
2021 Proposed Tax Rates
–
44.486
Elk River
42.535Becker
41.591
Sherburne County
Zimmerman
0.0
80.070.060.050.040.030.020.010.0
General, Special Revenue, and
2021
Enterprise Fund budgets
Receive public comment regarding budget/levy
Approve
Adopt 2021 City Property Tax Levy
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