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10.2 SR 09-07-2021 Request for Action To Item Number Mayor and City Council 10.2 Agenda Section Meeting Date Prepared by Work Session September 7, 2021 Lori Ziemer, Finance Director Item Description Reviewed by 2022 Budget Cal Portner, City Administrator Reviewed by Action Requested Continue 2022 budget discussion. Background/Discussion The General Fund budget for 2022 is currently $18,987,050 and the preliminary tax levy is $14,134,100. We are awaiting the NTC value from the county but have received early estimates of about $31,184,310. This would result in a tax rate of about 45.324%, compared to 44.556% in 2021 and 46.241% in 2020. On September 20, the Council will adopt the maximum preliminary tax levy for taxes payable 2022 to be certified to the county by September 30. The final tax levy will be adopted in December and can be the same or lower, but cannot be greater, than the preliminary tax levy. General Fund Update Based on the recent workers’ comp premium quote, the 2022 General Fund budget was increased $31,500 with the bulk of the increase reflected in police and fire. Attached are the adjustments currently reflected in the 2022 General Fund budget as we have progressed through the budget review process. Discussion Items to Consider  Police – authorization to move forward in 2021 with the hiring of the crime prevention specialist as a sworn officer position. The crime prevention specialist is currently a vacant non-sworn position in the 2021 budget.  Park Maintenance – consider increase of $50,000 for buckthorn removal at Woodland Trails Regional Park. This will increase the General Fund budget to $19,037,050 and the preliminary levy to $14,184,100, with a tax rate of 45.485%  Council direction regarding the General Fund budget and preliminary tax levy. Financial Impact N/A Mission/Policy/Goal The city’s mission is to grow responsibly and be good stewards for every dollar to develop a sustainable and prosperous community. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 Attachments  2022 General Fund Summary  2022 Preliminary Tax Levy  Personnel Request Summary  Budget Adjustments  Mayor’s Budget Suggestions N:\\Public Bodies\\Agenda Packets\\09-07-2021\\Final\\x10.2 sr 2022 budget.docx CITYOFELKRIVER 2022PRELIMINARYBUDGET GENERALFUND 20182019202020212022Increase/% ACTUALACTUALACTUALBUDGETPROPOSED(Decrease)Change GeneralFundRevenues: Propertytaxes$10,508,700$11,171,84811,934,049$$12,315,000$13,357,7001,042,7008.5% Othertaxes137,532158,232193,275150,000180,00030,00020.0% Licenses&Permits790,831822,899665,519778,500865,70087,20011.2% s578,324607,320607,367602,500623,00020,5003.4% IntergovernmentalRevenue ChargesforServices930,293923,063779,964908,5001,018,000109,50012.1% Fines137,114134,49389,359120,000120,0000.0% OtherRevenues273,799495,889278,453236,500260,00023,5009.9% TransfersIn2,058,7351,922,6572,613,9432,421,5002,562,650141,1505.8% TotalGeneralFundRevenues15,415,32816,236,40117,161,92917,532,50018,987,0501,454,5508.3% GeneralFundExpenditures GeneralGovernment: Mayor&Council149,224142,390141,884173,200189,25016,0509.3% Communications253,786274,801282,556336,000412,75076,75022.8% AdministrativeServices490,436540,930566,052593,150618,50025,3504.3% HumanResources255,559281,080300,387355,750376,60020,8505.9% Elections37,6146,30073,5616,80048,70041,900616.2% Finance605,933632,392597,788655,800693,45037,6505.7% y364,601419,605501,899489,800542,55052,75010.8% InformationTechnolog Legal273,462315,866232,017255,000255,0000.0% t159,737162,854206,633209,500213,5004,0001.9% CommunityDevelopmen Planning344,685332,691348,056364,150388,10023,9506.6% BuildingMaintenance670,808711,842755,149788,500931,250142,75018.1% EnergyCity29,99229,57322,30733,90038,7004,80014.2% TotalGeneralGovernment3,635,8373,850,3244,028,2894,261,5504,708,350446,80010.5% PublicSafety: Police5,462,9535,647,8225,734,6956,450,1006,788,600338,5005.2% Fire1,136,8301,289,6961,243,6091,466,6001,611,200144,6009.9% BuildingSafety672,567514,626498,824531,850548,65016,8003.2% CodeEnforcement95,49391,45880,36086,30094,2007,9009.2% Environmental42,44332,47754,75958,30062,5004,2007.2% TotalPublicSafety7,410,2867,576,0797,612,2478,593,1509,105,150512,0006.0% PublicWorks: StreetMaintenance1,213,9101,323,2791,411,9361,462,8501,434,500(28,350)1.9% SnowRemoval279,936334,574284,921345,800353,0007,2002.1% EquipmentServices208,273232,155221,272254,050369,800115,75045.6% 330,734336,587492,800498,3005,5001.1% Engineering206,926 TotalPublicWorks1,909,0452,220,7422,254,7162,555,5002,655,600100,1003.9% Culture&Recreation: ParkMaintenance1,130,6491,152,1051,185,5291,307,7001,576,950269,25020.6% Recreation739,982787,334661,903685,300807,050121,75017.8% Sr.CitizenPrograms227,153203,479153,302129,300133,9504,6503.6% TotalCulture&Recreation2,097,7842,142,9182,000,7342,122,3002,517,950395,65018.6% TransfersOut 237,813887,986 0.00% TotalGeneralFundExpenditures$15,052,952$16,027,876$16,783,972$17,532,500$18,987,050$1,454,5508.3% 2022PRELIMINARYTAXLEVY CityofElkRiverLeviedLeviedLeviedPreliminary TaxLevyPay2019Pay2020Pay2021Pay2022 GeneralFund$11,187,400$11,938,300$12,315,000$13,357,700 Library66,00069,00071,50075,950 GeneralPropertyTaxLevy11,253,40012,007,300$12,386,50013,433,650 SpecialLevies: 2020B(2010A)GOCIPRefundingBonds470,130619,920618,870602,650 EconomicDevelopmentTaxAbatement160,235138,55098,45097,800 LakeOronoDredging100,000 TotalLevy$11,938,765$12,865,770$13,103,820$14,134,100 GeneralFundChangefromPreviousYear$689,600$750,900$376,700$1,042,700 PercentageChangefromPreviousYear6.6%6.7%3.2%8.5% TotalDollarChangefromPreviousYear$874,935$927,005$238,050$1,030,280 %Change7.9%7.8%1.9%7.9% NTCValue$26,006,616$27,823,086$29,409,713$31,184,310 Prelim.fromCounty TaxRate45.907%46.241%44.556%45.324% %IncreaseinNTC8.2%7.0%5.7%6.0% 2022 BUDGET REQUESTED POSITIONS BuildingEquipmentGENERAL Department: CommunicationsMaintenanceServicesParksFUND Position:Multimedia SpecBldg Maint TechMechanicPark MaintTOTAL 4101Regular Pay36,400 37,500 71,250 37,500 182,650 4104PERA2,750 2,800 5,350 2,800 13,700 4105FICA2,250 2,350 4,400 2,350 11,350 4107Medicare500 550 1,000 550 2,600 4108Insurance8,500 9,500 16,250 9,500 43,750 4109Workers Comp100 1,500 1,900 1,200 4,700 Total Personal Services 54,20050,500 100,150 53,900 258,750 Additional Costs: 4217 Uniform Allowance650 650 650 1,950 4321 Cell phone200 300 200 700 4331 Training/License250 400 650 4361 Auto insurance 300 300 Total Additional Costs 850- 1,200 1,550 3,600 Total New Position Requests50,500 55,050 101,350 55,450 262,350 Start Date:1/20225/20221/20225/2022 PT to FT 2022 General Fund Budget as of 7/2619,688,100$ Expenditure Adjustments: Council - Downtown beautification10,000 Code Enforcement - Vehicle wrap(3,000) 2022 General Fund Budget as of 8/919,695,100 Expenditure Adjustments: Capital Outlay - Fire & Parks(600,000) Building Maint. - New employee start 5/1/22(28,900) Park Maint. - New employee start 5/1/22(18,100) Street Maint. - Add Mechanic/eliminate Street Maint.(87,550) Energy City - Eliminate trip to Germany(5,000) 2022 General Fund Budget as of 8/2018,955,550 Expenditure Adjustment: Workers' comp insurance - various depts.31,500 2022 General Fund Budget as of 9/718,987,050$ Revenue Adjustment: Increased Liquor transfer in75,000$ (from Mayor) $3,000 $75,000 $28,900 --------May 1 $18,100 --------May 1 $40,000 $60,000 $500,000 $5,000 W, 0 0 J ? � ram•.' �•• "� � ,.1� r ilk dL L W �� may:.. •�•�- + _ ---. _��• . ~-i,� t vi.- ..i - ar.. _.." x*=• 4- ��;�q - � '�- r �' - �. _� .� .�,�,�i-,-y ,ter. ~��'•} �,.=.- f � y.'. - }�. we ?r '. -.ate"F `�'.:.'4 ._