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8.1 SR 09-18-2023Request for Action To Item Number Ma Tor and CinT Council 8.1 Agenda Section Meeting Date Prepared by GeneYal Business September 18, 2023 Lori Stich, Finance ManageY Item Description Reviewed by Set Budget Meeting Date and Adopt 2024 oe Stremcha, Assistant Ci T Administrator Preliminary Tax LevyT Reviewed by Cal Portner, Ci r Administrator Action Requested Set, b�T motion, the budget meeting for public comment to be on Monda�T, December 4, 2023, at 6:30 p.m. Adopt, byT motion, a resolution authorizing the preliminaryT propertyT tax levyT for collection in 2024. Discussion The Council must approve the preliminaryT tax levyT for certification to the countyT auditor byT September 30, 2023. The attached levyT resolution sets the preliminary tax lev�T at $16,641,082, compared to the $15,094,9561ev�T for 2023. The General Fund budget is currentl�T $21,557,350, `vhich is a 5.3% increase over the 2023 budget of $20,490,000. The preliminaryT tax levyT is the ma�mum levyT amount and will be used to formulate the truth in taxation notices that will be sent out by the countyr lateY this fall. The cityr's final adopted levyr can be less but cannot exceed the preliminaryT levyT 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 4, 2023. Financial Impact Cityr of Elk RiveY pYopeYtyr tax levyr foY collection in 2024. Mission/Policy/Goal The city-'s mission is to grow responsibl�T and be good stewards for everyT dollar to develop a sustainable and prosperous communityT. Attachments ■ Resolution Adopting the 2024 PreliminaryT Tax Le`�yT ■ 2024 preliminary tax levyT/rate The Elk River Vision A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty. PowEREo ar �I'1 ���� Up�iited.• August 2020 City of Elk -�-� River Resolution 23- A Resolution of the City of Elk River Adopting the Preliminary Property Tax Levy for Taxes Payable in 2024 WHEREAS, the Elk River CityT Council is required to establish a preliminar�T tax lev�T for taxes payable in 2024 byT September 30, 2023 and certify the preliminary tax levy to the Sherburne CountyT Auditor; and, WHEREAS, the Elk River CityT Council has revie`ved the City's anticipated expenditures for all funds in 2024; and, WHEREAS, the Elk RiveY Cit�r Council has consideYed projected revenues foY all funds in 2024; and, WHEREAS, revenues from sources other than propertyT 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 byT the CityT Council of the CityT of Elk River, iVlinnesota, as follo`vs: The follo`ving amounts are the maximum to be levied as propert�T taxes payTable in 2024: General Fund LibraryT 2020A GO CIP Bond 2021A GO CIP/Equipment Bond Economic Development Tax Abatement Total Tax Levy Lev�T � 15,421,450 79,000 608,709 392,023 139 900 $ 16_641_082 Passed and adopted this 18`i' day of SeptembeY 2023. ATTEST: John J. Dietz, Mayor Tina Allard, CityT Clerk rawEREO ar ���U�� 2024 PRELIMINARY TAX LEVY Levied Levied Levied Preliminary Tax Levy Pay 2021 Pay 2022 Pay 2023 Pay 2024 General Fund $12,315,000 $13,109,300 $13,893,000 $15,421,450 Library 71,500 75,950 75,000 79,000 General Property Tax Levy $12,386,500 13,185,250 $13,968,000 $15,500,450 Special Levies: Debt Service - 2010A PS Building 618,870 602,650 - - 2020A - PS Building Expansion 606,346 608,709 2021A - Fire Station 3/Equip. 389,135 392,023 Economic Development Tax Abatement 98,450 97,800 131,475 139,900 Lake Orono Dredging - - - - Total Levy $13,103,820 $13,885,700 $15,094,956 $16,641,082 General Fund Change from Previous Year $376,700 $794,300 $783,700 $1,528,450 Percentage Change from Previous Year 3.2% 6.4% 6.0% 11.0% Total Dollar Change from Previous Year $238,050 $781,880 $1,209,256 $1,546,126 % Change 1.9% 6.0% 8.7% 10.2% NTC Value Tax Rate % Increase in NTC $29,409,713 44.556% 5.7 % $31,581,676 43.967% 7.4 % $38,022,099 39.700 % 20.4 % $43,206,785 38.515 % CITY OF ELK RIVER ESTIMATED TAX IMPACT 13.6 % Residential (Homestead): With Valuation Change Impact Estimated City Tax Estimated Market Value Tax Capacity Tax Capacity Rate Property Value Value Exclusion Value 39.700% 38.515% Dollar Percent 2023 2024 Change 2023 2024 2023 2024 2023 2024 change change $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 $340,000 0.0% $6,640 $6,640 $3,334 $3,334 $1,323 $1,284 $39 -2.9%