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10.3. SR 11-01-2021 Request for Action To Item Number Mayor and City Council 10.3 Agenda Section Meeting Date Prepared by Work Session November 1, 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 On September 20, the Council approved a maximum levy of $14,134,100, with a preliminary General Fund budget of $18,987,050. Since then, adjustments of $248,400 have been made to bring the levy to $13,885,700 with an estimated tax rate of 43.830%, compared to 44.556% in 2021, 46.241% in 2020, and 45.907% in 2019. The levy adjustments consist of the liquor transfer revenue increase of $175,000 and expenditure reductions of $73,400. Expenditure adjustments of $73,400, resulting from recent personnel turnover and decreases in supplies, reduce the General Fund budget to $18,913,650. The increase in the General Fund budget is impacted by personnel additions/upgrades for building maintenance, park maintenance, mechanic, communications, and community policing. Additional costs for supplies and maintenance associated with the newly added park amenities and facilities are also reflected in the General Fund budget increase. Financial Impact N/A Mission/Policy/Goal The city’s mission is to grow responsibly and be good stewards for every dollar. Attachments  Tax Levy  General Fund Budget  Tax Impact 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 2022PROPOSEDTAXLEVY CityofElkRiverLeviedLeviedLeviedProposed TaxLevyPay2019Pay2020Pay2021Pay2022 GeneralFund$11,187,400$11,938,300$12,315,000$13,109,300 Library66,00069,00071,50075,950 GeneralPropertyTaxLevy11,253,40012,007,300$12,386,50013,185,250 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$13,885,700 GeneralFundChangefromPreviousYear$689,600$750,900$376,700$794,300 PercentageChangefromPreviousYear6.6%6.7%3.2%6.4% TotalDollarChangefromPreviousYear$874,935$927,005$238,050$781,880 %Change7.9%7.8%1.9%6.0% NTCValue$26,006,616$27,823,086$29,409,713$31,680,771 TaxRate45.907%46.241%44.556%43.830% %IncreaseinNTC8.2%7.0%5.7%7.7% CITYOFELKRIVER 2022PROPOSEDBUDGET GENERALFUND 202020212022Increase/% ACTUALBUDGETPROPOSED(Decrease)Change GeneralFundRevenues: Propertytaxes11,934,049$$12,315,000$13,109,300794,3006.4% Othertaxes193,275150,000180,00030,00020.0% Licenses&Permits665,519778,500865,70087,20011.2% IntergovernmentalRevenues607,367602,500623,00020,5003.4% ChargesforServices779,964908,5001,018,000109,50012.1% Fines89,359120,000120,0000.0% OtherRevenues278,453236,500260,00023,5009.9% TransfersIn2,613,9432,421,5002,737,650316,15013.1% TotalGeneralFundRevenues17,161,92917,532,50018,913,6501,381,1507.9% GeneralFundExpenditures GeneralGovernment: Mayor&Council141,884173,200189,25016,0509.3% Communications282,556336,000412,75076,75022.8% AdministrativeServices566,052593,150618,50025,3504.3% HumanResources300,387355,750376,60020,8505.9% Elections73,5616,80048,70041,900616.2% Finance597,788655,800686,15030,3504.6% InformationTechnology501,899489,800542,55052,75010.8% Legal232,017255,000255,0000.0% CommunityDevelopment206,633209,500213,5004,0001.9% Planning348,056364,150388,10023,9506.6% BuildingMaintenance755,149788,500931,250142,75018.1% EnergyCity22,30733,90038,7004,80014.2% TotalGeneralGovernment4,028,2894,261,5504,701,050439,50010.3% PublicSafety: Police5,734,6956,450,1006,788,600338,5005.2% Fire1,243,6091,466,6001,611,200144,6009.9% BuildingSafety498,824531,850548,65016,8003.2% CodeEnforcement80,36086,30094,2007,9009.2% Environmental54,75958,30062,5004,2007.2% TotalPublicSafety7,612,2478,593,1509,105,150512,0006.0% PublicWorks: StreetMaintenance1,411,9361,462,8501,429,500(33,350)2.3% SnowRemoval284,921345,800338,000(7,800)2.3% EquipmentServices221,272254,050362,800108,75042.8% Engineering336,587492,800493,4506500.1% TotalPublicWorks2,254,7162,555,5002,623,75068,2502.7% Culture&Recreation: ParkMaintenance1,185,5291,307,7001,548,700241,00018.4% Recreation661,903685,300801,050115,75016.9% Sr.CitizenPrograms153,302129,300133,9504,6503.6% TotalCulture&Recreation2,000,7342,122,3002,483,700361,40017.0% TransfersOut 887,986 0.00% TotalGeneralFundExpenditures$16,783,972$17,532,500$18,913,650$1,381,1507.9% CITYOFELKRIVER 2022PR0POSEDBUDGET GENERALFUNDEXPENDITURESBYACCOUNT 2021 20202022INCREASE/% EXPENDITURES:ACTUALBUDGETPROPOSED(DECREASE)CHANGE PersonalServices FullTimeSalaries$8,369,176$9,176,600$9,887,400$710,8007.7% Overtime204,970236,500240,5004,0001.7% PartTimeSalaries773,721742,050786,75044,7006.0% PERA1,016,4941,128,8501,211,95083,1007.4% FICA346,884385,250411,50026,2506.8% OtherRetirementContributions237,496230,000245,00015,0006.5% Medicare131,705147,300158,00010,7007.3% Insurance1,097,4401,204,0501,326,800122,75010.2% WorkersCompensation215,240252,400327,55075,15029.8% TotalPersonalServices12,393,12613,503,00014,595,4501,092,450 8.1% Supplies OfficeSupplies41,08240,50039,950(550)1.4% Fuels/Lubes176,958215,650216,4508000.4% UniformAllowance74,64394,20066,650(27,550)29.2% OperatingSupplies654,970633,200716,40083,20013.1% EquipmentParts115,208135,600142,5006,9005.1% StreetSigns32,54632,50043,00010,50032.3% TotalSupplies1,095,4071,151,6501,224,95073,300 6.4% Services&Charges AuditFees17,70022,70023,5008003.5% EngineeringFees85,00085,0000.0% LegalFees232,017255,000255,0000.0% ProfessionalServices136,271128,200120,850(7,350)5.7% Telephone73,35374,40079,7505,3507.2% Postage9,68413,20015,3502,15016.3% Travel/Conferences/Schools77,549188,400192,2003,8002.0% CarAllowance6,4009,6009,6000.0% Advertising/Marketing13,92713,2006,400(6,800)51.5% Publishing13,51112,20021,2509,05074.2% 175,350207,90032,55018.6% Property/liabilityInsurance163,537 Utilities404,871366,300436,50070,20019.2% BuildingMaintenance127,116139,750118,300(21,450)15.3% Equipment/SoftwareMaint.455,194558,200651,45093,25016.7% ContractualServices184,069239,350280,70041,35017.3% BuildingRent1,1121,8006,5004,700261.1% EquipmentRental28,98833,00035,0002,0006.1% Dues&Subscriptions51,94054,75056,8002,0503.7% Taxes&Licenses96770095025035.7% CreditCardFees16,97117,35020,2502,90016.7% Miscellaneous44,27664,40066,0001,6002.5% EquipmentReplacementCharge348,000372,000404,00032,0008.6% TotalServices&Charges2,407,4532,824,8503,093,250268,400 9.5% CapitalOutlay53,000(53,000) TransfersOut887,986 TotalGeneralFundExpenditures$16,783,972$17,532,500$18,913,6501,381,150$7.9% CITYOFELKRIVER 2022BUDGET GENERALFUNDREVENUES 202020212022INCREASE/% REVENUES:ACTUALBUDGETPROPOSEDDECREASECHANGE Taxes PropertyTaxes11,934,04912,315,00013,109,300794,3006.4% GravelTax193,275150,000180,00030,00020.0% TotalTaxes12,127,32412,465,00013,289,300824,3006.6% Licenses&Permits LiquorLicense8,13076,00076,0000.0% CigaretteLicense3,0503,0003,0000% 0. RentalLicense50,99465,00065,0000.0% MiningLicense25,76125,00026,0001,0004.0% GarbageHaulerLicense2,3552,0002,0000.0% OtherBusinessLicense/Permit16,48515,00016,0001,0006.7% NPDESPermit21,72820,00022,0002,00010.0% BuildingPermit407,688450,000500,00050,00011.1% Plumbing/HeatingPermit106,095110,000140,00030,00027.3% PermitSurcharge68050070020040.0% AnimalLicense965 OtherNonBusinessLic/Permit21,58812,00015,0003,00025.0% TotalLicenses&Permits665,519778,500865,70087,20011.2% IntergovernmentalRevenue MVCredit6,1765,5006,0005009.1% FireStateAid207,497200,000215,00015,0007.5% PoliceStateAid310,309305,000315,00010,0003.3% PoliceTrainingReimb29,16832,00032,0000.0% StateCrimePreventionGrant42,64760,00055,000(5,000)8.3% OtherGrants11,570 TotalIntergovernmentRevenue607,367602,500623,00020,5003.4% ChargesforServices Planning&ZoningFees19,99225,00025,0000.0% PlanCheckFee182,459220,000250,00030,00013.6% SpecialAssessmentSearch6305005000.0% Copies1,3831,5001,500 0.0% OtherGeneralGovtServices525005000.0% LockoutFees4,4655,5005,5000.0% PoliceServices18,27615,00018,0003,00020.0% SchoolLiaison149,368151,000162,00011,0007.3% AnimalImpoundFee1,0002,5001,000(1,500)60.0% FireContracts280,008286,000335,00049,00017.1% FireServices8,6876,0006,0000.0% StreetServices16,54925,00025,000 0.0% EngineeringServicesReimb22,22325,00020,000(5,000)20.0% RecreationFees13,48160,00060,0000.0% SrCenterActivities9,17230,00035,0005,00016.7% Farmer'sMarket10,67212,00015,0003,00025.0% ElkRiverFest50010,00019,0009,00090.0% ParkUseFee22,38720,00025,0005,00025.0% SewerInspectionFee17,52012,00013,0001,0008.3% ContractorLicenseCheck1,1401,0001,0000.0% TotalChargesforServices779,964908,5001,018,000109,50012.1% Fines CourtFines88,109120,000120,0000.0% ParkingFines150 OrdinanceViolations1,100 TotalFines89,359120,000120,0000.0% OtherRevenue InterestIncome117,41575,000100,00025,00033.3% Refunds&Reimbursements147,378130,000130,0000.0% ContributionsConcertSponsorships00020,000(5,000)20.0% 25, MiscellaneousRevenue13,6606,50010,0003,50053.8% TotalOtherRevenue278,453236,500260,00023,5009.9% TransfersIn Transfers490,425 TransferCapitalOutlayReserv50,00050,000 TransferDevelopment10,60010,60010,650500.5% TransferMPF140,000140,0000.0% TransferWWTP155,000160,000165,0005,0003.1% TransferLiquor500,000500,000750,000250,00050.0% TransferGarbage50,00052,00054,0002,0003.8% TransferUtilities1,312,2181,355,0001,355,0000.0% TransferStormwater15,500121,000135,00014,00011.6% TransferEDA39,50041,00043,0002,0004.9% TransferHRA40,70041,90035,000(6,900)16.5% TotalTransfersIn2,613,9432,421,5002,737,650316,15013.1% TotalGeneralFundRevenues17,161,92917,532,50018,913,6501,381,1507.9% CITY OF ELK RIVER T ESTIMATED TAX IMPAC Residential (Homestead): With Valuation Change Impact Estimated City Tax Estimated PropertyTax Capacity Rate Value 44.556%43.830%DollarPercent ValueTax Capacity Value 20212022Change2021202220212022changechange $182,700$191,8005.0%$1,619$1,718$721$753$324.4% $245,000$254,8004.0%$2,298$2,405$1,024$1,054$302.9% $324,200$334,5003.2%$3,161$3,274$1,409$1,435$261.8% $229,100$241,3005.3%$2,125$2,258$947$990$434.5% $334,700$364,2008.8%$3,276$3,597$1,460$1,577$1178.0% $285,000$310,9009.1%$2,734$3,016$1,218$1,322$1048.5% $351,900$371,6005.6%$3,463$3,678$1,543$1,612$694.5% $258,700$263,0001.7%$2,447$2,494$1,090$1,093$30.3% $250,000$250,0000.0%$2,353$2,353$1,048$1,031($17)-1.6% ** Median Value Home Commercial/Industrial: Estimated City Tax Tax Capacity Rate Estimated Property ValueValue44.556%43.830%DollaTax Capacity ValuerPercent 20212022Change2021202220212022changechange $4,591,600$4,645,1001.2%$91,082$92,152$40,582$40,390($192)-0.5% $3,945,700$4,034,2002.2%$78,164$79,934$34,827$35,035$2080.6% $1,646,100$1,676,7001.9%$32,172$32,784$14,335$14,369$340.2% $2,701,900$2,786,1003.1%$53,288$54,972$23,743$24,094$3511.5% $2,000,000$2,000,0000.0%$39,250$39,250$17,488$17,203($285)-1.6%