7.1 SR 12-06-2021City of
Qk*l
River
Request for Action
To
Item Number
Mayor and City Council
7.1
Agenda Section
Meeting Date
Prepared by
Public Hearin
December 6, 2021
Lori Ziemer, Finance Director
Item Description
Reviewed by
2022 Budget and Tax Levy
Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, the 2022 General, Special Revenue, and Enterprise Fund budgets.
Adopt, by motion, the resolution authorizing the property tax levy for collection in 2022.
Background/Discussion
In May, staff began the budgeting process by developing their 2022 department goals and budget requests.
Over numerous work sessions, the City Council and staff reviewed 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 2022 General Fund budget is $18,913,650 compared to $17,532,500 in 2021. 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. Due to the fact that city
government is primarily a service industry, 77% of the operating budget is for personal service expenditures.
Tax Lew
On September 20, the City Council adopted the preliminary tax levy of $14,134,100. Since then, additional
reductions of $248,400 have been made for a proposed tax levy of $13,885,700 for 2022.
The county estimates the city's Net Tax Capacity (NTC) value increasing about 7.7%, attributable to new
growth and market value increases. The final NTC may change slightly as the county continues to update
property values before calculating property taxes in early 2022. Based on the current NTC values, the
proposed tax rate is 43.830%, a decrease from last year's rate of 44.556%.
The city accounts for about 36% of a homeowner's total property tax bill. The remainder is attributed to the
county (36%), the school district (26%), and other jurisdictions (2%). For businesses, the city's share is about
28% of the total.
The majority of the property tax levy (94%) funds 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.
AR
Financial Impact
Summary of 2022 Budgets
Below is a summary of the proposed budgets Council has reviewed and to be approved:
Revenues Expenditures Net Effect
General Fund $18,913,650 $18,913,650 $ -
Special Revenue Funds:
Library $ 110,950
FTCenter $ 1,548,200
Enterprise Funds: Revenues
Sewer $ 3,225,500
Liquor $ 7,990,000
Garbage $ 1,836,000
Storm Water $ 605,000
$ 120,950 $ (10,000)
$ 1,442,100 $ 106,100
Expenditures
Depreciation
Capital
Net Effect
$
2,617,800
$1,640,000
$ 460,000
$ (1,492,300)
$
8,074,450
$ 99,000
$ 100,000
$ (283,450)
$
1,731,450
$ -
$ -
$ 104,550
$
665,450
$ 465,000
$ -
$ (525,450)
Mission/Policy/Goal
Grow responsibly and be good stewards for every dollar to develop a sustainable and prosperous community.
Attachments
■ Tax Levy Resolution
■ 2022 Budget and Tax Levy Presentation
City of
Elk
River
Resolution 2 1 -
A Resolution of the City of Elk River Authorizing the Proposed Property Tax
Levy for Collection in 2022
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 to be levied as property taxes
payable in 2022:
Levy —
General Fund $ 13,109,300
Library 75,950
2020B G.O. CIP Refunding Bonds 602,650
Economic Development Tax Abatement 97,800
TOTAL $ 13.885.700
Passed and adopted this 61h day of December 2021.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
2022 Budget and Tax Levy Hearing
December 6, 2021
Purpose of Meeting
■ 2022 Budgets:
➢ General Fund
➢ Special Revenue Funds
➢ Enterprise Funds
■ 2022 City Property Tax Levy
■ Public Comment
■ Approve Budgets
■ Adopt City Tax Levy
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2022 General Fund Budget Summary
2021
2022
%
$
BUDGET
PROPOSED
CHANGE
CHANGE
Revenues:
Property Taxes
$12,315,000
$13,109,300
6.4%
$794,300
Oth e r Taxe s
150,000
180,000
20.0%
30,000
Licenses & Permits
778,500
865,700
11.2%
87,200
Intergovernmental
602,500
623,000
3.4%
20,500
Charges for Services
908,500
1,018,000
12.1%
109,500
Fines
120,000
120,000
0.0%
-
Other Revenues
236,500
260,000
9.9%
23,500
Tra n sf e rs I n
2,421,500
2,737,650
13.1 %
316,150
Total Revenues $17,532,500 $18,913,650 7.9% $1,381,150
Expenditures:
General Government
$4,261,550
$4,701,050
10.3%
$439,500
Public Safety
8,593,150
9,105,150
6.0%
512,000
Public Works
2,555,500
2,623,750
2.7%
68,250
Parks & Recreation
2,122,300
2,483,700
17.0%
361,400
Total Expenditures
$17,532,500
$18,913,650
7.9%
$1,381,150
General Fund Expenditures - by Function
EXPENDITURES:
2021
BUDGET
2022
PROPOSED
General Government
$4,261,550
$4,701,050
Public Safety
8,593,150
9,105,150
Public Works
2,555,500
2,623,750
Parks & Recreation
2,122,300
2,483,700
TOTAL
$17,532,500
$18,913,650
Public Works
Parks &
Recreation
13%
Public SE
48
General
Government
25%
General Fund Expenditures - by Category
EXPENDITURES:
2021
BUDGET
2022
PROPOSED
CHANGE
Personal Services
$13,503,000
$14,595,450
$1,092,450
Supplies
1,151,650
1,224,950
73,300
Service Charges
2,824,850
3,093,250
268,400
Capital Outlay
53,000
-
(53,000)
TOTAL
$17,532,500
$18,913,650
$1,381,150
Supplies
7%
Se
Ch
General Fund Revenues - by Source
REVENUES:
2021
BUDGET
2022
PROPOSED
Property Taxes
$12,315,000
$13,109,300
Other Taxes
150,000
180,000
Licenses & Permits
778,500
865,700
Intergovernmental
602,500
623,000
Charges for Services
908,500
1,018,000
Fines
120,000
120,000
Other Revenues
236,500
260,000
Transfers In
2,421,500
2,737,65
TOTAL
1$17,532,500
1$18,913,650
Licenses/
Permits.
5%
Other Taxi
1%
Chargesfor Other
C-;- Fines Ravanuas Transfers in
69%
General Fund Budget History
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
Transfer out
Capital
$10,000,000
Service Charges
$8,000,000
0 Supplies
■ Personal Services
$6,000,000
$4,000,000
$2,000,000
$0
Avg. - 4.7%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Other Budgets
■ Special Revenue
LIBRARY
FTCENTER
REVENUES:
Property Tax
$75,950
$ -
User Fees
-
1,543,200
Other
7,000
5,000
Transfers In
28,000
-
TOTAL REVENUES
110,950
1,548,200
EXPENDITURES:
Personal Services
-
851,900
Supplies
12,000
55,500
Service Charges
98,950
374,700
Capital
10,000
20,000
Transfers Out
-
140,000
TOTAL EXPENDITURES
120,950
1,442,100
NET CHANGE
($10,000)
$106,100
Other Budgets
■ Enterprise Funds:
REVENUES:
Sales
Cost of Sales
Gross Profit
User Charges
Other Revenue
TOTAL REVENUES
EXPENDITURES:
Operating Expenditures
Depreciation
Capital
Transfers Out
Debt Service
TOTAL EXPENDITURES
STORM
SEWER LIQUOR GARBAGE WATER
$ - $ 7,901,000 $ - $ -
- (5,636,000) - -
- 2,265,000 - -
2,450,000 - 1,831,000 595,000
775,500 89,000 5,000 10,000
3,225,500 2,354,000 1,836,000 605,000
1,844,150
1,640,000
460,000
165,000
608,650
4,717,800
1,438,450
99,000
100,000
1,000,000
2,637,450
1,677,450
54,000
1,731,450
530,450
465,000
135,000
1,130,450
NET CHANGE $ (1,492,300) $ (283,450) $ 104,550 $ (525,450)
y
Proposed Property Taxes and Meetings by Jurisdiction for Your Property
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ELK RIVER MN 55330
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1,090-48
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GALPOATrER
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13065 OF*NO PARKWAY
E19 Ft HER, La SM30
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ELK RIVER MN 56390
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STATE GENERAL TAX
NO MEETWG REQUIRED
ELK RIVER 0729
vowwww 4m: mf1
88223
6:170 PM DEC 13 MON
JOE PRIMtJS, ASST DIRECTOR
0111mLa Nk"; 57IAB
62fr.02
SCHOOL DIST OFFICE
1 t50t? 193RD AVE NW
11580193RD AVE NW
ELK RIVER, MN 5533D
ELK RIVER MN 563M
763-241-3437
www'"728-arg
Spacial Taxing District
56.96
54-70
Tax lncremrnl Tax
Fiscal [)ispartly Tax
TOTAL
Eatdudina Soimckal Asssssrnents
3.80643 3,74728 -15%
Property Tax Valuation
Market Value Questions?
• Contact Sherburne County Assessor
CityTax Levy
2021
2022
2022
Change from 2021
Levy Component
Levy
Preliminary
Proposed
Amount
Percent
General Fund
$1213151000
$1313571700
$1311091300
$7941300
6.5%
Library
711500
751950
751950
41450
6.2%
Debt Service
618,870
602,650
602,650
(16,220)
-2.6%
Tax Abatement
98,450
97,800
97,800
(650)
-0.7%
$13,103,820
$14,134,100
$13,885,700
$781,880
6.0%
Total
NTC Valuation
$29,409,713
$31,680,771
$31,680,771
$2,271,058
7.7%
Tax Rate - City
1 44.556%
44.614%
43.830%
-0.726%
Tax Levy by Use
Debt
Library Service
Parks & 10 4%
1errootinn
Public Works
1
Economic
Develop.
1
General
GnvPrnmPnt
4.)o
aty
Tax Levy -Tax Rate History
Tax Levy Tax Rate
$16,000,000 52.000%
$14,000,000
50.000%
$12,000,000
48.000%
$10,000,000
Tax Levy
$8,000,000 46.000% Tax Rate
$6,000,000
44.000%
$4,000,000
42.000%
$2,000,000
$0 40.000%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Avg.- 3.6%
Tax Capacity Rates
city, county &school comparison (estimates only)
ENTITY
2021
ACTUAL
2022
PRELIMINARY
2022
PROPOSED
Change
from 2021
City
44.556
44.614
43.830
-0.726
E DA
1.235
1.146
1.146
-0.089
H RA
1.093
1.047
1.047
-0.046
County
45.835
43.743
43.743
-2.092
School
31.717
30.822
30.822
-0.895
Total Tax Rate
124.436
121.372
120.588
-3.848
PropertyTax Dollar Distribution
Other
$.02
School
District i
$.26 City
$.36
1L
County
$.36
Estimated CityTax Impact
Residential (Homestead): With Valuation Change Impact
Estimated City Tax
Estimated
Tax Capacity Rate
44.556%
43.830%
Property Value
Value
Change
Tax Capacity Value
Dollar
change
Percent
change
2021
2022
2021
2022
2021
2022
$182,700
$191,800
5.0%
$1,619
$1,718
$721
$753
$32
4.4%
$245,000
$254,800
4.0%
$2,298
$2,405
$1,024
$1,054
$30
2.9%
$397,400
$416,300
4.8%
$3,959
$4,163
$1,764
$1,825
$61
3.5%
$351,900
$371,600
5.6%
$3,463
$3,678
$1,543
$1,612
$69
4.5%
$258,700
$263,000
1.7%
$2,447
$2,494
$1,090
$1,093
$3
0.3%
$250,000
$250,000
0.0%
$2,353
$2,353
$1,048
$1,031
$17
-1.6%
** Median Value Home
Commercial/Ind ustrial:
Estimated City Tax
Estimated
Tax Capacity Rate
Property Value
Value
Change
Tax Capacity Value
44.556%
43.830%
Dollar
change
Percent
change
2021
2022
2021
2022
2021
2022
$4,591,600
$4,645,100
1.2%
$91,082
$92,152
$40,582
$40,390
($192)
-0.5%
$3,945,700
$4,034,200
2.2%
$78,164
$79,934
$34,827
$35,035
$208
0.6%
$1,646,100
$1,676,700
1.9%
$32,172
$32,784
$14,335
$14,369
$34
0.2%
$2,701,900
$2,786,100
3.1 %
$53,288
$54,972
$23,743
$24,094
$351
1.5%
$2,000,000
1$2,000,000
1 0.0%
1 $39,250
1 $39,250
1 $17,488
1 $17,203
$285
-1.6%
Distribution of 2022 CityTax
Median Value Home - $263,000
$1,093 City Tax
— w y - — >• $495 - Public Safety
- TII L i P�TIi.
1 '' ■ $258 - General Govt.
y F THIS -11S LEGAL TEfl OER -
� ,Ga,.EeEs,,.�eL,.flflflfl,.A,E � B 03 � $
{� 145 - Public Works
B, 2 B 2 ■ $134 - Parks & Rec.
$47 - Debt Service
B 03542754 F
2 ,; - 2 $8 - Econ. Develop.
■ $6 - Library
$0 $200 $400 $600 $800 $1,000 $1,200
Next:
■ Receive public comment regarding budget/levy
■ Approve 2022 General, Special Revenue, and
Enterprise Fund budgets
• Adopt 2022 City Property Tax Levy