8.2 SR 09-06-2022Request for Action
To
Item Number
Mayor and Ci T Council
8.2
Agenda Section
Meeting Date
Prepared by
General Business
September 6, 2022
Lori Ziemer, Finance Director
Item Description
Reviewed by
Set Budget Meeting Date and Adopt 2023
Cal Portner, City Administrator
Preliminary Tax Levy
Reviewed by
Action Requested
Set, by motion, the budget meeting for 6:30 p.m., December 5, 2022, when public comment will be taken.
Adopt, by motion, a resolution authorizing the preliminary property tax levy for collection in 2023.
Discussion
The Council must approve the preliminary tax levy for certification to the county auditor by September 30, 2022.
The attached levy resolution sets the preliminary tax levy at $15,202,106, compared to the $13,885,700 levy for 2022.
The General Fund budget is currently $20,552,150, which is an 8.7% increase over the 2022 budget of $18,913,650.
The preliminary tax levy is the maximum levy amount and will be used to formulate the truth in taxation notices
that will be sent out by the county later this fall. The city's final adopted levy can be less but cannot exceed the
preliminary levy amount.
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 5, 2022.
Financial Impact
City of Elk River property tax levy for collection in 2023.
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 Adopting the 2023 Preliminary Tax Levy
2023 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 pi ospei ly.
M
TUREJ
Updated.• August 2020
City of
Elk -�.-1
River
Resolution 22-
A Resolution of the City of Elk River Adopting the Preliminary Property Tax
Levy for Taxes Payable in 2023
WHEREAS, the Elk River City Council is required to establish a preliminary tax levy for
taxes payable in 2023 by September 30, 2022 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 2023; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2023; 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 2023:
Levy —
General Fund $ 14,000,150
Library 75,000
2020A GO CIP Bond 606,346
2021A GO CIP/Equipment Bond 389,135
Economic Development Tax Abatement 131,475
Total Tax Levy $ 15202.106
Passed and adopted this 61h day of September 2022.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
2023 PRELIMINARY TAX LEVY
Levied
Levied
Levied
Preliminary
Tax Levy
Pay 2020
Pay 2021
Pay 2022
Pay 2023
General Fund
$11,938,300
$12,315,000
$13,109,300
$14,000,150
Library
69,000
71,500
75,950
75,000
12,007,300
$12,386,500
13,185,250
$14,075,150
General Property Tax Levy
Special Levies:
Debt Service -
2010A PS Building
619,920
618,870
602,65C
-
2020A - PS Building Expansion
606,346
2021A - Fire Station 3/Equip.
389,135
Economic Development Tax Abatement
138,550
98,450
97,800
131,475
Lake Orono Dredging
100,000
-
-
-
$12,8650770 I-
$13,103,820
$13,885,700
$15,202,106
TotalLevy
General Fund Change from Previous Year
$750,900
$376,700
$794,300
$890,850
Percentage Change from Previous Year
6.7%
3.2%
6.4%
6.8%
Total Dollar Change from Previous Year
$927,005
$238,050
$781,880
$1,316,406
Change
1 7.8%1
1.9%
6.0%
9.5%
NTC Value
Tax Rate
% Increase in NTC
CITY OF ELK RIVER
ESTIMATED TAX IMPACT
$27,823,086
46.241%
7.0%
Residential Homestead): th Valuation Chan a Impact
$29,409,713
44.556%
5.7%
$31,581,676
43.967%
7.4%
$38,100,000
39.901%
20.6%
Estimated City Tax
Estimated
Market Value
Tax Capacity Rate
43.967%
39.901%
Property Value
Value
Change
Exclusion `
Tax Capacity Value
Dollar
change
Percent
change
2022
2023
2022
2023
2022
2023
2022
2023
$227,800
$281,500
23.6%
$16,738
$11,905
$2,111
$2,696
$928
$1,076
$148
15.9%
$299,100
$355,600
18.9%
$10,321
$5,235
$2,888
$3,504
$1,270
$1,398
$128
10.1%
$334,500
$397,900
19.0%
$7,135
$1,429
$3,274
$3,965
$1,439
$1,582
$143
9.9%
$416,300
$490,700
17.9%
$0
$0
$4,163
$4,907
$1,830
$1,958
$128
7.0%
$364,200
$440,500
21.0%
$4,462
$0
$3,597
$4,405
$1,582
$1,758
$176
11.1%
$300 800
$345 500
14.9%
$10 168
$6,145
$2,906
$3 394
$1 278
$1 354
$76
5.9%
$250 000
1 $250,000
1 0.0%
1 $14,740 $14,7401
$2,353
1 $2 353
1 $1 034
1 $939
$95
-9.2%