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11.2 SR 09-05-2023
Request for Action To Item Number Mayor and City Council 11.2 Agenda Section Meeting Date Prepared by Work Session September 5, 2023 Lori Stich, Finance Manager Item Description Reviewed by 2024 Budget Joe Stremcha, Assistant City Administrator Reviewed by Cal Portner, City Administrator Action Requested Continue 2024 budget discussion. Background/Discussion As of the August 14 budget work session, the 2024 General Fund Budget was $21,688,450 and is currently $21,577,350, after removing the Agenda Management Software ($11,500) and one of the Street Maintenance Operator II positions and associated expenditures ($99,600). Personal Services account for 76% of the General Fund Budget supported with a General Fund tax levy of $15,421,450, which comprises 71% of the General Fund revenues. Preliminary Net Tax Capacity (NTC) values are estimated at $43,206,785, about a 14% increase. With the estimated 14% NTC increase, the preliminary tax rate, with fully funded debt service levies, would be about 38.772%, -- less than the 2023 tax rate of 39.7007%. On September 18, the Council will adopt the maximum Preliminary Tax Levy for taxes payable 2024. 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. Following is a comparison of the surrounding communities COLA and levy increase: Prelim Levy City COLA Increase Albertville 4.90% 6.51% Becker 4% 3.46% Big Lake 3% 4.88% Buffalo 5% 11.50% Dayton 4% 23% Hanover 3-5% 11% Monticello 4% 8% Otsego 4.25% + Market Rate 15-24% Rogers 4.50% 20-25% St. Michael 4% 8.50% The Elk River Vision P 0 W E e E 0 0 V A welcoming community rvitb revolutionary and spirzted resourcefulness, exceptional NATURE service, and community engagement that encourages and inspires prosperz[ Updated. August 2020 Discussion Items to Consider: ■ Personnel requests — funding of personnel requests included in the General Fund Budget. ■ IT Risk Assessment Consultant — consider doing this in 2023. ■ 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. Attachments ■ 2024 Personnel Requests ■ 2024 General Fund Summary ■ 2024 General Fund by Account ■ 2024 General Fund Revenues ■ 2024 Preliminary Tax Levy ■ 2024 Estimated Tax Impact ■ Mayor Dietz Budget Suggestions ■ CM Westgaard Budget Suggestions N:APublic Bodies\Agenda Packets\09-05-2023\Fugal\x11.2 sr Budget discussion.docx 2024 BUDGET PERSONNEL REQUESTS Police Senior Programs Streets Streets Fire GENERAL Department: FUND Assistant Maintenance Maintenance Position: Records Clerk (increase PT hours) Operator II Operator II Fire Engineer TOTAL Regular Pay 56,638 60,195 60,195 65,083 242,111 Overtime Pay - Part -Time Pay 13,260 13,260 PERA 4,248 995 4,515 4,515 11,520 25,793 FICA 3,512 822 3,732 3,732 11,798 Medicare 821 192 873 873 944 3,703 Insurance 17,010 17,136 17,136 8,820 60,102 Workers Comp 242 57 3,260 3,260 3,645 10,464 82,471 15,326 89,711 89,711 90,012 367,231 Total Personal Services Additional Costs: Uniform Allowance 350 675 675 1,700 Supplies 300 300 600 Training/License 400 1,000 1,000 2,400 Auto insurance - Equipment - vehicle - Total Additional Costs 750 - 1,975 1,975 - 4,700 Total Position Requests 83,221 15,326 91,686 91,686 90,012 371,931 *Removed 8/30/23 1 *Not in budget General Fund Revenues: Property taxes Othertaxes Licenses & Permits Intergovernmental Revenues Charges for Services Fines Other Revenues Other Financing Source - Lease Transfers In Total General Fund Revenues General Fund Expenditures General Government: Mayor & Council Communications Administrative Services Human Resources Elections Finance Information Technology Legal Community Dev/Planning Facilities Maintenance Energy City Total General Government Public Safety: Police Fire Building Safety Code Enforcement Environmental Total Public Safety Public Works: Street Maintenance Snow Removal Equipment Services Engineering Total Public Works Culture & Recreation: Park Maintenance Recreation Sr. Citizen Programs Total Culture & Recreation Transfers Out CITY OF ELK RIVER 2024 PRELIMINARY BUDGET GENERAL FUND 2020 2021 2022 2023 7/31/2023 2024 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL PRELIMINARY $ 11,934,049 12,297,572 13,017,377 13,893,000 7,230,822 $15,421,450 193,275 233,745 173,039 225,000 28,681 225,000 665,519 1,015,529 939,133 1,004,300 677,051 1,008,200 607,367 581,927 657,106 634,000 25,545 639,000 779,964 1,035,953 1,129,408 1,127,200 699,178 1,148,200 89,359 127,266 127,954 130,000 82,584 130,000 278,453 297,915 335,594 275,000 141,566 315,000 - - 225,719 - - - 2,613,943 2,281,960 2,599,306 3,201,500 2,185,891 2,690,500 17,161,929 17,871,867 19,204,636 20,490,000 11,071,319 21,577,350 141,884 161,522 180,733 203,750 102,414 213,550 282,556 334,651 368,036 451,550 226,550 485,300 566,052 597,464 609,868 677,500 365,832 721,850 300,387 344,469 367,643 402,500 213,091 426,550 73,561 6,300 41,864 6,600 6,214 75,500 597,788 620,548 696,918 717,950 426,575 800,750 501,899 454,648 652,096 614,450 323,839 723,500 232,017 244,402 270,650 275,000 133,507 275,000 554,689 578,245 479,845 486,250 266,577 485,100 755,149 812,257 925,910 1,029,550 565,874 1,085,250 22,307 23,922 24,541 48,000 29,172 49,050 4,028,289 4,178,428 4,618,104 4,913,100 2,659,645 5,341,400 5,734,695 6,338,212 6,909,469 7,418,350 3,780,937 7,578,400 1,243,609 1,514,752 1,733,540 1,842,700 977,584 1,998,000 498,824 489,072 610,684 583,600 311,583 625,500 80,360 86,316 76,049 117,500 61,616 126,000 54,759 57,578 111,919 99,650 53,278 101,700 7,612,247 8,485,930 9,441,661 10,061,800 5,184,998 10,429,600 1,411,936 1,472,080 1,391,531 1,567,000 770,966 1,742,150 284,921 336,707 366,282 360,000 237,737 411,150 221,272 253,000 353,287 386,300 194,667 397,300 336,587 396,165 426,794 458,200 253,995 489,150 2,254,716 2,457,952 2,537,894 2,771,500 1,457,366 3,039,750 1,185,529 1,310,852 1,572,359 1,676,300 740,955 1,743,700 661,903 648,970 761,741 917,400 404,440 826,900 153,302 119,465 136,016 149,900 93,912 196,000 2,000,734 2,079,287 2,470,116 2,743,600 1,239,306 2,766,600 887,986 171,591 - - - - % of Increase/ % Budget (Decrease) Change 71.5% $1,528,450 11.0% 1.0% - 0.0% 4.7% 3,900 0.4% 3.0% 5,000 0.8% 5.3% 21,000 1.9% 0.6% - 0.0% 1.5% 40,000 14.5% 0.0% - 0.0% 12.5% (511,000) -16.0% 100.0% $1,087,350 5.3% 1.0% 9,800 4.8% 2.2% 33,750 7.5% 3.3% 44,350 6.5% 2.0% 24,050 6.0% 0.3% 68,900 1043.9% 3.7% 82,800 11.5% 3.4% 109,050 17.7% 1.3% - 0.0% 2.2% (1,150) -0.2% 5.0% 55,700 5.4% 0.2% 1,050 2.2% 24.8% 428,300 8.7% 35.1% 160,050 2.2% 9.3% 155,300 8.4% 2.9% 41,900 7.2% 0.6% 8,500 7.2% 0.5% 2,050 2.1% 48.3% 367,800 3.7% 8.1% 175,150 11.2% 1.9% 51,150 14.2% 1.8% 11,000 2.8% 2.3% 30,950 6.8% 14.1% 268,250 9.7% 8.1% 67,400 4.0% 3.8% (90,500) -9.9% 0.9% 46,100 30.8% 12.8% 23,000 0.8% 0.0% - 0.00% Total General Fund Expenditures $16,783,972 $17,373,188 $19,067,775 $20,490,000 $10,541,315 $21,577,350 100.0% $1,087,350 5.3% CITY OF ELK RIVER 2024 PRELIMINARY BUDGET GENERAL FUND EXPENDITURES BY ACCOUNT 2020 2021 2022 2023 2024 INCREASE % EXPENDITURES: ACTUAL ACTUAL ACTUAL BUDGET PRELIMINARY (DECREASE) CHANGE Personal Services Full Time Salaries $8,369,176 $9,130,334 $9,818,161 $10,667,700 $11,129,050 $461,350 4.3% Overtime 204,970 276,223 288,869 263,500 263,500 - 0.0% Part Time Salaries 773,721 657,853 587,143 658,500 756,400 97,900 14.9% PERA 1,016,494 1,123,073 1,165,831 1,295,950 1,336,700 40,750 3.1% FICA 346,884 366,023 393,388 434,050 461,400 27,350 6.3% Other Retirement Contributions 237,496 248,909 285,658 255,000 260,000 5,000 2.0% Medicare 131,705 142,267 150,083 168,050 174,900 6,850 4.1% Insurance 1,097,440 1,197,940 1,360,230 1,504,150 1,637,900 133,750 8.9% Workers Compensation 215,240 267,271 350,141 415,450 432,100 16,650 4.0% Unemployment Benefits - - 13,991 - - - 0.0% Total Personal Services 12,393,126 13,409,893 14,413,495 15,662,350 16,451,950 789,600 5.0% Supplies Office Supplies 41,082 39,405 31,639 28,950 37,500 8,550 29.5% Fuels/Lubes 176,958 154,724 215,352 314,350 288,850 (25,500) -8.1% Uniform Allowance 74,643 109,572 81,922 69,050 104,250 35,200 51.0% Operating Supplies 654,970 667,777 792,513 762,450 821,900 59,450 7.8% Equipment Parts 115,208 145,394 161,157 205,300 190,800 (14,500) -7.1% Street Signs 32,546 49,615 22,109 46,000 39,000 (7,000) -15.2% Total Supplies 1,095,407 1,166,487 1,304,692 1,426,100 1,482,300 56,200 3.9% Services & Charges Audit Fees 17,700 20,605 17,442 22,000 22,500 500 2.3% Engineering Fees - 1,472 17,348 5,000 5,000 - 0.0% Legal Fees 232,017 244,402 270,650 275,000 275,000 - 0.0% Professional Services 136,271 99,592 125,155 137,500 168,600 31,100 22.6% Telephone 73,353 72,558 75,677 79,900 79,950 50 0.1% Postage 9,684 10,053 10,948 14,600 13,450 (1,150) -7.9% Travel, Conferences/Schools 77,549 113,688 124,308 191,500 199,750 8,250 4.3% Car Allowance 6,400 9,600 9,600 9,600 9,600 - 0.0% Advertising/Marketing 13,927 12,416 5,766 9,000 7,500 (1,500) -16.7% Publishing 13,511 8,826 14,668 22,650 19,150 (3,500) -15.5% Property/liability Insurance 163,537 183,379 210,633 218,850 238,350 19,500 8.9% Utilities 404,871 407,785 521,719 481,600 526,400 44,800 9.3% Building Maintenance 127,116 155,182 194,437 176,650 196,450 19,800 11.2% Equipment/Software Maint. 455,194 522,253 558,821 715,500 660,100 (55,400) -7.7% Contractual Services 184,069 214,024 268,337 348,150 387,950 39,800 11.4% Building Rent 1,112 657 1,710 6,500 5,000 (1,500) -23.1% Equipment Rental 28,988 35,337 36,445 30,500 40,000 9,500 31.1% Dues & Subscriptions 51,940 50,652 52,625 55,450 65,100 9,650 17.4% Taxes & Licenses 967 348 1,001 550 850 300 54.5% Credit Card Fees 16,971 19,654 24,972 21,750 27,750 6,000 27.6% Miscellaneous 44,276 33,016 39,238 50,200 15,100 (35,100) -69.9% Fleet Replacement Charge 348,000 372,000 404,000 436,500 471,000 34,500 7.9% IT Equipment Charge - - - 92,600 92,600 - - Total Services & Charges 2,407,453 2,587,499 2,985,500 3,401,550 3,527,150 125,600 3.7% Capital Outlay - 37,718 257,243 - - - - Debt Service - - 106,845 115,950 115,950 Transfers Out 887,986 171,591 - Total General Fund Expenditures $16,783,972 $17,373,188 $19,067,775 $20,490,000 21,577,350 $1,087,350 5.3% CITY OF ELK RIVER 2024 BUDGET GENERAL FUND REVENUES 2020 2021 2022 2023 7/31/23 2024 INCREASE/ % REVENUES: ACTUAL ACTUAL ACTUAL BUDGET ACTUAL PRELIMINARY DECREASE CHANGE Taxes 101-3-0000-3111 Property Taxes 11,934,049 12,297,572 13,017,377 13,893,000 7,230,822 15,421,450 1,528,450 11.0% 101-3-0000-3121 Gravel Tax 193,275 233,745 173,039 225,000 8,943 225,000 - 0.0% Total Taxes 12,127,324 12,531,317 13,190,416 13,289,300 7,239,765 15,646,450 1,528,450 17.7% Licenses & Permits 101-3-0000-3211 Liquor License 8,130 73,595 81,990 82,000 77,630 82,000 - 0.0% 101-3-0000-3212 THC License - - 1,600 4,000 2,400 4,000 - 0.0% 101-3-0000-3213 Cigarette License 3,050 4,656 2,825 4,000 300 4,000 - 0.0% 101-3-0000-3214 Rental License 50,994 62,603 56,725 65,000 39,810 65,000 - 0.0% 101-3-0000-3216 Mining License 25,761 25,849 26,108 26,000 26,843 26,000 - 0.0% 101-3-0000-3217 Garbage Hauler License 2,355 2,460 1,545 2,500 865 2,500 - 0.0% 101-3-0000-3218 Other Business License/Permit 16,485 15,955 17,685 16,000 8,270 16,000 - 0.0% 101-3-0000-3229 NPDES Permit 21,728 24,675 16,305 24,000 5,075 23,000 (1,000) -4.2% 101-3-0000-3231 Building Permit 407,688 588,999 512,999 600,000 324,063 600,000 - 0.0% 101-3-0000-3232 Plumbing/Heating Permit 106,095 191,019 189,965 160,000 170,368 160,000 - 0.0% 101-3-0000-3233 Permit Surcharge 680 753 629 800 3,223 700 (100) -12.5% 101-3-0000-3235 Animal License 965 800 660 - 560 - - 0.0% 101-3-0000-3237 Other Non-BusinessLic/Permit 21,588 24,165 30,097 20,000 17,645 25,000 5,000 25.0% Total Licenses & Permits 665,519 1,015,529 939,133 1,004,300 677,051 1,008,200 3,900 0.4% Intergovernmental Revenue 101-3-0000-3311 Federal Grant - - 10,678 - 309 - - 0.0% 101-3-0000-3322 MV Credit 6,176 5,756 5,894 6,000 - 6,000 - 0.0% 101-3-0000-3323 Fire State Aid 207,497 218,909 255,658 225,000 4,000 230,000 5,000 2.2% 101-3-0000-3325 Police State Aid 310,309 276,543 320,526 320,000 - 320,000 - 0.0% 101-3-0000-3326 Police Training Reimb 29,168 38,002 33,489 35,000 - 35,000 - 0.0% 101-3-0000-3329 State Crime Prevention Grant 42,647 42,717 30,861 48,000 21,236 48,000 - 0.0% 101-3-0000-3330 Other Grants 11,570 - - - - - - Total Intergovernment Revenue 607,367 581,927 657,106 634,000 25,545 639,000 5,000 0.8% Charges for Services 101-3-0000-3412 Planning & Zoning Fees 19,992 33,725 27,084 25,000 13,582 25,000 - 0.0% 101-3-0000-3413 Plan Check Fee 182,459 281,502 235,691 250,000 151,621 250,000 - 0.0% 101-3-0000-3415 Special Assessment Search 630 1,250 330 500 65 500 - 0.0% 101-3-0000-3417 Copies 1,383 1,491 1,053 1,500 668 1,500 - 0.0% 101-3-0000-3418 Other General Govt Services 52 - 13 - - - - #DIV/0! 101-3-0000-3430 Lockout Fees 4,465 3,780 3,365 3,500 1,660 3,500 - 0.0% 101-3-0000-3431 Police Services 18,276 67,177 46,470 30,000 21,502 45,000 15,000 50.0% 101-3-0000-3432 School Liaison 149,368 155,077 180,030 175,000 82,811 183,000 8,000 4.6% 101-3-0000-3434 Animal Impound Fee 1,000 300 625 500 300 500 - 0.0% 101-3-0000-3436 Fire Contracts 280,008 289,662 380,317 400,000 238,139 400,000 - 0.0% 101-3-0000-3437 Fire Services 8,687 2,475 6,193 3,000 (300) 3,000 - 0.0% 101-3-0000-3451 Street Services 16,549 27,426 21,432 30,000 11,653 35,000 5,000 16.7% 101-3-0000-3452 Engineering Services Reimb 22,223 16,505 14,741 20,000 14,635 20,000 - 0.0% 101-3-0000-3461 Recreation Fees 13,481 32,505 45,160 60,000 45,259 50,000 (10,000) -16.7% 101-3-0000-3462 Sr Center Activities 9,172 36,264 40,515 37,000 27,971 43,000 6,000 16.2% 101-3-0000-3463 Farmer's Market 10,672 21,839 50,381 20,000 25,351 12,000 (8,000) -40.0% 101-3-0000-3469 Elk RiverFest 500 20,622 20,845 20,000 24,023 20,000 - 0.0% 101-3-0000-3472 Park Use Fee 22,387 25,238 39,033 35,000 31,203 40,000 5,000 14.3% 101-3-0000-3483 Sewer Inspection Fee 17,520 17,840 15,060 15,000 8,660 15,000 - 0.0% 101-3-0000-3484 Contractor License Check 1,140 1,275 1,070 1,200 375 1,200 - 0.0% Total Charges for Services 779,964 1,035,953 1,129,408 1,127,200 699,177 1,148,200 21,000 1.9% Fines 101-3-0000-3510 Court Fines 88,109 125,266 125,054 130,000 79,484 130,000 - 0.0% 101-3-0000-3511 Parking Fines 150 - - - - - - - 101-3-0000-3512 Ordinance Violations 1,100 2,000 2,900 - 3,100 - - - Total Fines 89,359 127,266 127,954 130,000 82,584 130,000 - 0.0% Other Revenue 101-3-0000-3621 Interest Income 117,415 119,745 153,523 120,000 95,719 140,000 20,000 16.7% 101-3-0000-3625 Refunds & Reimbursements 147,378 145,251 144,641 125,000 (1,234) 145,000 20,000 16.0% 101-3-0000-3626 Contributions -Concert Sponsorships - 19,000 24,811 20,000 42,260 20,000 - 0.0% 101-3-0000-3629 Miscellaneous Revenue 13,660 13,919 12,619 10,000 4,821 10,000 - 0.0% Total Other Revenue 278,453 297,915 335,594 275,000 141,566 315,000 40,000 14.5% Other Financing Sources 101-3-0000-3918 Other Financing Source - Lease - - 225,719 - - - - 0.0% REVENUES: Transfers In 101-3-0000-3921 Transfers 101-3-0000-3926 Transfer -Capital Outlay Resery 101-3-0000-3930 Transfer -Development Transfer-ARPA 101-3-0000-3942 Transfer-WWTP 101-3-0000-3943 Transfer -Liquor 101-3-0000-3944 Transfer -Garbage 101-3-0000-3945 Transfer -Utilities 101-3-0000-3946 Transfer-Stormwater 101-3-0000-3948 Transfer-EDA 101-3-0000-3949 Transfer-H RA Total Transfers In Total General Fund Revenues 2020 2021 2022 I 2023 7/31/23 2024 INCREASE/ % ACTUAL ACTUAL ACTUAL BUDGET ACTUAL PRELIMINARY DECREASE CHANGE 490,425 460 1,656 - - 50,000 10,600 10,600 10,650 15 5, 000 160,000 165,000 500,000 500,000 750,000 50,000 52,000 54,000 1,312, 218 1,355,000 1,355, 000 15,500 121,000 13 5, 000 39,500 41,000 43,000 40.700 41.900 35.000 17 - 749 - - - 78,500 78,500 89,000 10,500 13.4% - - - - 0.0% 300,000 - - (300,000) - 170,000 170,000 175,000 5,000 2.9% 1,000,000 1,000,000 750,000 (250,000) -25.0% 56,500 56,500 58,000 1,500 2.7% 1,380,000 745,143 1,400,000 20,000 1.4% 135,000 135,000 135,000 - 0.0% 45,000 - 46,000 1,000 2.2% 36,500 - 37,500 1,000 2.7% 3,201,500 2,185,891 2,690,500 (511,000) -16.0% 9,661,300 11,051,581 21,577,350 1,087,350 9.7% General Fund Expenditures by Category Services Q. rk - - $3,52 11 Supplies $1, 482, 300 7°% Intergovtl General Fund Revenue Revenues by Source $639,00 Charges for Services 3% $1,148,200 Fines Other Revenues 5°% $130,000 $315,000 1% 1% Licenses/Permits $1,008,200 5% Other Taxes $225,000 1% Debt Serice .15,950 1% 'ersonal Services $16,451, 950 76% Transfers In $ 2, 690, 500 12% perty Taxes .5,421,450 72°% 2024 PROPOSED TAX LEVY Levied Levied Levied Levied Preliminary Tax Levy Pay 2020 Pay 2021 Pay 2022 Pay 2023 Pay 2024 General Fund $11,938,300 $12,315,000 $13,109,300 $13,893,000 $15,421,450 Library 69,000 71,500 75,950 75,000 79,000 12,007,300 $12,386,500 13,185,250 $13,968,000 $15,500,450 General Property Tax Levy Special Levies: Debt Service - 2010A PS Building 619,920 618,870 602,650 - - 2020A - PS Building Expansion 606,346 608,709 2021A-Fire Station3/Equip. 389,135 392,023 Economic Development Tax Abatement 138,550 98,450 97,800 131,475 139,900 Lake Orono Dredging 100,000 - - - - $12,865,770 $13,103,820 $13,885,700 $15,094,956 $16,641,082 TotalLevy General Fund Change from Previous Year $750,900 $376,700 $794,300 $783,700 $1,528,450 Percentage Change from Previous Year 6.7% 3.2% 6.4% 6.0% 11.0% Total Dollar Change from Previous Year $927,005 $238,050 $781,880 $1,209,256 $1,546,126 Change 7.8% 1.9% 6.0% 8.7% 10.2% 49.00% 48.00% 47.00% 46.00% 45.00% 44.00% 43.00% 42.00% 41.00% 40.00% 39.00% 38.00% 37.00% 36.00% 35.00% 2023 - Sportech abatement added NTC Value $27,823,086 $29,409,713 $31,581,676 $38,022,099 $43,206,785 *per County 8/29/23 Tax Rate 46.241% 44.556% 43.967% 39.700% 38.515% Increase in NTC 7.0% 5.7% 7.4% 20.4% 13.6% Tax Rate History 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CITY OF ELK RIVER ESTIMATED TAX IMPACT Residential (Homestead): With Valuation Change Impact Estimated City Tax Estimated Market Value Tax Capacity Tax Capacity Rate 39.700% 38.515% Property Value Value Change Exclusion Value Dollar change Percent change 2023 2024 2023 2024 2023 2024 2023 2024 $281,500 $298,800 6.1% $11,905 $10,348 $2,696 $2,885 $1,070 $1,111 $41 3.8% $490,700 $565,800 15.3% $0 $0 $4,907 $5,658 $1,948 $2,179 $231 11.9% $243,800 $260,900 7.0% $15,298 $13,759 $2,285 $2,471 $907 $952 $45 5.0% $379,500 $425,000 12.0% $3,085 $0 $3,764 $4,250 $1,494 $1,637 $143 9.6% $546,800 $602,800 10.2% $0 $0 $5,468 $6,028 $2,171 $2,322 $151 7.0% $448,400 $459,900 2.6% $0 $0 $4,484 $4,599 $1,780 $1,771 $9 -0.5% $340,000 $364,900 7.3% $6,640 $4,399 $3,334 $3,605 $1,323 $1,388 $65 4.9% $340,000 $340,000 1 0.0% $6,640 $6,640 $3,334 $3,334 $1,323 $1,284 ($39) -2.9% Commercial/Industrial: Estimated City Tax Estimated Tax Capacity Tax Capacity Rate 39.700% 38.515% Property Value Value Change Value Dollar change Percent change 2023 2024 2023 2024 2023 2024 $1,905,600 $2,130,900 11.8% $37,362 $41,868 $14,833 $16,125 $1,292 8.7% $3,158,300 $3,532,200 11.8% $62,416 $69,894 $24,779 $26,920 $2,141 8.6% $4,699,400 $5,084,100 8.2% $93,238 $100,932 $37,015 $38,874 $1,859 5.0% $1,416,300 $1,570,600 10.9% $27,576 1 $30,662 $10,948 $11,809 $861 7.9% $2,500,000 1 $2,500,000 0.0% $49,250 1 $49,250 $19,552 $18,969 ($583) -3.0% * As property value increases, the market value exclusion is phased out at $413,800 & over. Per county assessor, residential market values increased overall approx. 12%. 2024 City of Elk River Budget Possible budget reductions $89,700 Police Debt Service. ---Pay from Building fund, not in General Fund $92.600 IT charges —Take from 2023 Budget adjustments $92.000 Hire one street employee in 2024, one in 2025 $ 100,000 Additional transfer toGenera.l Fund fi•oni Liquor Store $23,000 Agenda Management Software purchased in. 2023, not 2024 $125,000 Increase in net tax capacity revenue $522,300 Total changes This would reduce General Fund increase to 3.3% over 2023 Amount Department Account Notes: $ 21,000 Council Professional Service Implement the new Agenda Mgmt. Software in 2023 and expense $ 35,000 IT Professional Services Re -Evaluate the hiring of the Risk Assesment Consultant. $ 91,686 Streets Personal Services Hire only One Street Maintenance Operator II position. Goals and objectives appear to being met and not sure I can draw a conclusion from the staffing survey metric. $ 20,000 Snow Removal Personal Services Looking at history with this budget, it seems a bit excessive for a 15.6% budget increase in costs. The request is for a 30.8% ($46,100) increase in the department budget. Recommend reducing the $ 26,100 Sr. Programs budget by $26,100. Staff to determine how to reduce costs, whether its personal services, programming or move the $10,000 display cases to a 2023 expense. $ 13,000 Library Capital Outlay Move the replacement of the flooring in the teen area to a 2023 expense and reduce the transfers -Equip. in by the same amount Can any of the Capital Outlay projects be moved to a 2023 expense and increase the Transfer Out - Wastewater Gen. Fund by the same amount? One hesitation with this is the sewer connection charges YTD have not supported the 2023 budgeted amount of $1M Should this budget have some allocation for staff time to manage its budget and projects? All $ 25,000 Stormwater Personal Services personal Services costs were re -allocated to the engineering department in 2020. Recommend ? % of 1-FTE costs be charged to this budget. This reduces the Engineering budget from the General Fund. I believe this budget is missing interest income revenue of approximately $8K. Increase the $ 8,000 Garbage Interest Income Transfer Out -Gen. Fund by the same amount and the net position of the Garbage Fund remains unchanged. Liquor Operations have performed better than expected with the highly anticipated 169 Redefine $ 250,000 Liquor Transfer Out -Gen. Fund effecting access to the N. Bound location in 2023. Recommend keeping the Trasfer Out -Gen. Fund the same as 2023 budgeted amount. $ 489,786 TOTAL 3.46% % change to 2023 General Fund Budgeted Expenditures $1,198,450 12024 Proposed General Fund Expenditure increase ** Recommend leaving the budgeted Cola amount at 4% ** Police: Debt Service: $89,700. 1 had written down this was for printer, copiers, etc. and new GASB Std. I don't think this should be a Bldg. Fund expense.