8.1. SR 09-20-2021
Request for Action
To Item Number
Mayor and City Council 8.1
Agenda Section Meeting Date Prepared by
General Business September 20, 2021 Lori Ziemer, Finance Director
Item Description Reviewed by
Set Budget Meeting Date and Adopt 2022 Cal Portner, City Administrator
Preliminary Tax Levy
Reviewed by
Action Requested
Set, by motion, the budget meeting for 6:30 p.m., December 6, 2021, when public comment will be taken.
Adopt, by motion, a resolution authorizing the preliminary property tax levy for collection in 2022.
Environment/Discussion
The Council must approve the preliminary tax levy for certification to the county auditor by September 30, 2021.
The attached levy resolution sets the tax levy at $14,134,100 and the General Fund budget is $18,987,050, compared
to $13,103,820 and $17,532,500, respectively, for 2021. Based on NTC estimates, the preliminary city tax rate for
2022 is projected to be 44.611%, compared to the city tax rate of 44.556% for 2021.
The median home value in Elk River for 2022 is $263,000, which is a 1.7% increase from 2021. The city’s portion of
property taxes would increase $23 on the median value home. For a $200,000 home with no increase in valuation the
increase would be $1 for city property taxes.
The preliminary tax levy is the maximum levy amount, and the final adopted levy can be lower but cannot exceed the
preliminary levy. Staff will continue to review and evaluate opportunities for reductions based on additional
information received over the next several months to finalize the budget for adoption on December 6, 2021.
The County Board of Commissioners has set 6:00 p.m., December 2, 2021, as their budget and levy hearing date.
Financial Impact
City of Elk River property tax levy for collection in 2022.
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.
Attachments
Resolution Authorizing 2022 Preliminary Tax Levy
2022 preliminary tax levy/rate
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
Resolution 21-____
A Resolution of the City of Elk River Authorizing the Preliminary Property
Tax Levy for Collection in 2022
WHEREAS, the Elk River City Council is required to establish a preliminary tax levy for
taxes payable in 2022 by September 30,2021 and certify the preliminary tax levy to the
Sherburne County Auditor; and,
WHEREAS, the Elk River City Council has reviewed the City’s anticipated expenditures
for all funds in 2022; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2022; 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 the maximum to be levied as
property taxes payable in 2022:
Levy__
General Fund $ 13,357,700
Library 75,950
2020B G.O. CIP Refunding Bonds 602,650
Economic Development Tax Abatement 97,800
TOTAL $ 14,134,100
th
Passed and adopted this 20 day of September 2021.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
2022PRELIMINARYTAXLEVY
CityofElkRiverLeviedLeviedLeviedPreliminary
TaxLevyPay2019Pay2020Pay2021Pay2022
GeneralFund$11,187,400$11,938,300$12,315,000$13,357,700
Library66,00069,00071,50075,950
GeneralPropertyTaxLevy11,253,40012,007,30012,386,50013,433,650
SpecialLevies:
2020B(2010A)GOCIPRefundingBonds470,130619,920618,870602,650
EconomicDevelopmentTaxAbatement160,235138,55098,45097,800
GovernmentBuildingReserve55,000
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$31,682,742
TaxRate45.907%46.241%44.556%44.611%