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10.3 SR 11-20-2023Request for Action To Item Number Ma Tor and CinT Council 10.3 Agenda Section Meeting Date Prepared by Work Session November 20, 2023 Lori Stich, Finance Manager Item Description Reviewed by 2024 Budget oe Stremcha, Assistant Ci T Administrator Reviewed by Cal Portner, Ci r Administrator Action Requested Continue the 2024 budget discussion. Background/Discussion On September 18, the Council approved a maximum lev�T of $15,421,450, with a preliminar�T General Fund budget of $21,557,350. Since then, additional adjustments of $61,750 have been made to bring the pYoposed levy to $15,359,700 with an estimated tax rate of 38.933%, compared to 39.7% in 2023. The le��T adjustments consist of General Fund revenue increases of $55,000 and expenditure reductions of $6,750. Expenditure adjustments Yesulting from adjustments to peYsonal services and training costs Yeduce the GeneYal Fund budget to $21,570,600, or a 5.3% increase over 2023. The General Fund budget consists of the same level of services as 2023 and the budget increase is mainlyT impacted byT inflationaryT increases and costs associated `vith the ne`v1yT added park amenities and cityT facilities. Financial Impact N/A Mission/Policy/Goal The cityT's mission is to grow responsibl�T and be good stewards for every dollar. Attachments General Fund Budget Proposed Tax LevyT Tax Impact 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. rowEREo ar �I'1 ���� Up�iited.• August 2020 qTY OF ELK RIVER 2024 PRELIMINARY BUDGET GENERALFUND Generel Fund Revenues: Property taxes Othertaxes Licenses & Permits Intergovernmental Revenues Charges for Services Fines OtherRevenues Other Financing Source - Lease Transfers In TotalGenerelFund Revenues 2020 ACTUAL 2021 ACTUAL 2022 ACTUAL 2023 10/31/2023 2024 % of Increase/ % BUDGET ACTUAL PRELIMINARY Budget (Decrease) Change Generel Fund Expenditures General Government: Mayor & Council Communications Administrative Services Human Resources Elections Finance Information Technology Legal Community Dev/Planning Facilities Maintenance Energy City Total Generel 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 Total Generel Fund Expenditures $ 11,934,049 12,297,572 13,017,377 13,893,000 7,231,601 $15,359,700 71.2% $1,466,700 10.6% 193,275 233,745 173,039 225,000 121,895 225,000 1.0% - 0.0% 665,519 1,015,529 939,133 1,004,300 909,915 1,008,200 4.7% 3,900 0.4% 607,367 581,927 657,106 634,000 693,144 659,000 3.1% 25,000 3.9% 779,964 1,035,953 1,129,408 1,127,200 1,117,851 1,148,200 5.3% 21,000 1.9% 89,359 127,266 127,954 130,000 132,356 150,000 0.7% 20,000 15.4% 278,453 297,915 335,594 275,000 176,191 330,000 1.5% 55,000 20.0% - - 225,719 - - - 0.0% - 0.0% 2,613,943 2,281,960 2,599,306 3,201,500 2,748,330 2,690,500 12.5% (511,000) -16.0% 17,161,929 17,871,867 19,204,636 20,490,000 13,131,283 21,570,600 100.0% $1,080,600 5.3% 141,884 161,522 180,733 203,750 186,100 213,550 1.0% 9,800 4.8% 282,556 334,651 368,036 451,550 354,292 485,300 2.2% 33,750 7.5% 566,052 597,464 609,868 677,500 555,069 721,850 3.3% 44,350 6.5% 300,387 344,469 367,643 402,500 317,228 426,550 2.0% 24,050 6.0% 73,561 6,300 41,864 6,600 6,214 75,500 0.4% 68,900 1043.9% 597,788 620,548 696,918 I 717,950 606,593 800,750 3.7% 82,800 11.5% 501,899 454,648 652,096 VI 614,450 466,203 731,500 3.4% 117,050 19.0% 232,017 244,402 270,650 � 275,000 200,684 275,000 1.3% - 0.0% 554,689 578,245 479,845 486,250 380,192 485,100 2.2% (1,150) -0.2% 755,149 812,257 925,910 1,029,550 851,560 1,085,250 5.0% 55,700 5.4% 22,307 23,922 24,541 . 48,000 37,011 49,050 0.2% 1,050 2.2% 4,028,289 4,178,428 4,618,104 �� 4,913,100 3,961,146 5,349,400 24.8% 436,300 8.9% 5,734,695 6,338,212 6,909,469 7,418,350 5,601,549 7,578,400 35.1% 160,050 2.2% 1,243,609 1,514,752 1,733,540 1,842,700 1,691,976 1,998,000 9.3% 155,300 8.4% 498,824 489,072 610,684 583,600 464,266 625,500 2.9% 41,900 7.2% 80,360 86,316 76,049 117,500 94,385 126,000 0.6% 8,500 7.2% 54,759 57,578 111,919. 99,650 94,423 101,700 0.5% 2,050 2.1% 7,612,247 8,485,930 9,441,661 � 10,061,800 7,946,599 10,429,600 48.4% 367,800 3.7% 1,411,936 1,472,080 1,391,531 1,567,000 1,259,913 1,742,150 8.1% 175,150 11.2% 284,921 336,707 366,282 360,000 244,904 411,150 1.9% 51,150 14.2% 221,272 253,000 353,287 386,300 295,094 397,300 1.8% 11,000 2.8% 336,587 396,165 426,794 458,200 376,613 489,150 2.3% 30,950 6.8% 2,254,716 2,457,952 2,537,894. 2,771,500 2,176,524 3,039,750 14.1% 268,250 9.7% 1,185, 529 661,903 734 1,310,852 1,572,359 � 1,676,300 1,207,083 1,743,700 8.1% 67,400 4.0% 648,970 761,741 917,400 631,262 812,150 3.8% (105,250) -11.5% 119,465 136,016 149,900 139,550 196,000 0.9% 46,100 30.8% 2,079,287 2,470,116 2,743,600 1,977,895 2,751,850 12.8% 8,250 0.3% - 0.0% - 500 100.0% $1,080,600 0.00 % 5.3% EXPENDITURES: Personal Services Full Time Salaries Overtime Part Time Salaries PERA FICA Other Retirement Contributions Medicare Insurance Workers Compensation Unemployment Benefits Total Personal Services Supplies Office Supplies Fuels/Lubes Uniform Allowance Operating Supplies Equipment Parts Street Signs Total Supplies Services & Char¢es Audit Fees Engineering Fees LegalFees Professional Services Telephone Postage Travel, Conferences/Schools Car Allowance Advertising/Marketing Publishing Property/liability Insurance Utilities Building Maintenance Equipment/Software Maint. Contractual Services Building Rent Equipment Rental Dues & Subscriptions Taxes & Licenses Credit Card Fees Miscellaneous Fleet Replacement Charge IT Equipment Charge Total Services & Charges Capital Outlay Debt Service Transfers Out CITY OF ELK RIVER 2024 PRELIMINARY BUDGET GENERAL FUND EXPENDITURES BY ACCOUNT 2020 2021 2022 2023 2024 INCREASE/ % ACTUAL ACTUAL ACTUAL BUDGET PRELIMINARY (DECREASE) CHANGE $8,369,176 $9,130,334 $9,818,161 $10,667,700 $11,156,600 $488,900 204,970 276,223 288,869 263,500 263,500 - 773,721 657,853 587,143 658,500 723,650 65,150 1,016,494 1,123,073 1,165,831 1,295,950 1,336,550 40,600 346,884 366,023 393,388 434,050 461,250 27,200 237,496 248,909 285,658 255,000 260,000 5,000 131,705 142,267 150,083 168,050 174,850 6,800 1,097,440 1,197,940 1, 360, 230 1,504,150 1,639,750 135, 600 215,240 267,271 350,141 415,450 432,050 16,600 - - 13,991 - - - 12,393,126 13,409,893 14,413,495 15,662,350 16,448,200 785,850 41,082 39,405 31,639 28,950 37,500 8,550 176,958 154,724 215,352 314,350 288,850 (25,500) 74,643 109,572 81,922 69,050 104,250 35,200 654,970 667,777 792,513 762,450 821,900 59,450 115,208 145,394 161,157 205,300 190,800 (14,500) 32,546 49,615 22,109 46,000 39,000 (7,000) 1,095,407 1,166,487 1,304,692 1,426,100 1,482,300 56,200 17,700 20,605 17,442 22,000 22,500 500 - 1,472 17,348 5,000 5,000 - 232,017 244,402 270,650 275,000 275,000 - 136,271 99,592 125,155 137,500 168,600 31,100 73,353 72,558 75,677 79,900 79,950 50 9,684 10,053 10,948 14,600 13,450 (1,150) 77,549 113,688 124,308 191,500 196,750 5,250 6,400 9,600 9,600 9,600 9,600 - 13,927 12,416 5,766 9,000 7,500 (1,500) 13,511 8,826 14,668 22,650 19,150 (3,500) 163,537 183,379 210,633 218,850 238,350 19,500 404,871 407,785 521,719 481,600 526,400 44,800 127,116 155,182 194,43 7 176, 650 196,450 19, 800 455,194 522,253 558,821 715,500 660,100 (55,400) 184,069 214,024 268,337 348,150 387,950 39,800 1,112 657 1,710 6,500 5,000 (1,500) 28,988 35,337 36,445 30,500 40,000 9,500 51,940 50,652 52,625 55,450 65,100 9,650 967 348 1,001 550 850 300 16,971 19,654 24,972 21,750 27,750 6,000 44,276 33,016 39,238 50,200 15,100 (35,100) 348,000 372,000 404,000 436,500 471,000 34,500 - - - 92,600 92,600 - 2,407,453 2,587,499 2,985,500 3,401,550 3,524,150 122,600 37,718 257,243 887,986 171,591 106,845 - 115,950 115,950 4.6% 0.0% 9.9% 3.1% 6.3% 2.0% 4.0% 9.0% 4.0% 0.0% 5.0% 29.5% -8.1% 51.0% 7.8% -7.1% -15.2% 3.9% 2.3% 0.0% 0.0% 22.6% 0.1% -7.9% 2.7% 0.0% -16.7% -15.5% 8.9% 9.3% 11.2% -7.7% 11.4% -23.1% 31.1% 17.4% 54.5% 27.6% -69.9% 7.9% 3.6% Total General Fund Expenditures $16,783,972 $17,373,188 $19,067,775 $20,490,000 21,570,600 $1,080,600 5.3% n CITY OF ELK RIVER 2024 BUDGET GENERAL FUND REVENUES REVENUES: Taxes Property Taxes Gravel Tax Total Taxes Licenses & Permits Liquor License THC License Cigarette License Rental License Mining License Garbage Hauler License Other Business License/Permit NPDES Permit Building Permit Plumbing/Heating Permit Permit Surcharge Animal License Other Non-Business Lic/Permit Total Licenses & Permits Inter¢overnmental Revenue Federal Grant MV Credit Fire State Aid Police State Aid Police Training Reimb State Crime Prevention Grant Other Grants Totallntergovernment Revenue Char¢es for Services Planning & Zoning Fees Plan Check Fee Special Assessment Search Copies Other General Govt Services Lockout Fees Police Services School Liaison Animal Impound Fee Fire Contracts Fire Services Street Services EngineeringServices Reimb Recreation Fees Sr Center Activities Farmer's Market Elk RiverFest Park Use Fee Sewer Inspection Fee Contractor License Check Total Charges for Services 2020 2021 2022 I 2023 10/31/23 I 2024 INCREASE/ % ACTUAL ACTUAL ACTUAL BUDGET ACTUAL PRELIMINARY DECREASE CHANGE 11,934,049 12,297,572 13,017,377 13,893,000 7,231,601 15,359,700 1,466,700 10.6% 193,275 233,745 173,039 225,000 121,895 225,000 - 0.0% 12,127,324 12,531,317 13,190,416 13,289,300 7,353,496 15,584,700 1,466,700 173% 8,130 73,595 81,990 82,000 77,630 82,000 - - - 1,600 4,000 3,600 4,000 - 3,050 4,656 2,825 4,000 1,500 4,000 - 50,994 62,603 56,725 65,000 55,790 65,000 - 25,761 25,849 26,108 i 26,000 26,843 26,000 - 2,355 2,460 1,545 2,500 865 2,500 - 16,485 15,955 17,685 16,000 11,220 16,000 - 21,728 24,675 16,305 I 24,000 12,600 23,000 (1,000) 407,688 588,999 512,999 600,000 482,946 600,000 - 106,095 191,019 189,965 160,000 203,825 160,000 - 680 753 629 800 1,554 700 (100) 965 800 660 - 660 - - 21,588 24,165 30,097 20,000 30,882 25,000 5,000 665,519 1,015,529 939,133 1,004,300 909,915 1,008,200 3,900 - - 10,678 ' - 309 - - 6,176 5,756 5,894 6,000 2,893 6,000 - 207,497 218,909 255,658 225,000 279,775 230,000 5,000 310,309 276,543 320,526 320,000 339,387 340,000 20,000 29,168 38,002 33,489 35,000 31,316 35,000 - 42,647 42,717 30,861 �I 48,000 39,464 48,000 - 11,570 - - - - - 607,367 581,927 657,106 634,000 693,144 659,000 25,000 19,992 33,725 27,084 i 25,000 18,787 25,000 - 182,459 281,502 235,691 250,000 198,464 250,000 - 630 1,250 330 500 365 500 - 1,383 1,491 1,053 i 1,500 1,010 1,500 - 52 - 13 - - - - 4,465 3,780 3,365 3,500 2,240 3,500 - 18,276 67,177 46,470 i 30,000 32,632 45,000 15,000 149,368 155,077 180,030 175,000 177,201 183,000 8,000 1,000 300 625 500 300 500 - 280,008 289,662 380,317 400,000 430,774 400,000 - 8,687 2,475 6,193 3,000 (300) 3,000 - 16,549 27,426 21,432 30,000 17,347 35,000 5,000 22,223 16,505 14,741 20,000 14,635 20,000 - 13,481 32,505 45,160 60,000 48,667 50,000 (10,000) 9,172 36,264 40,515 37,000 37,794 43,000 6,000 10,672 21,839 50,381 20,000 47,380 12,000 (8,000) 500 20,622 20,845 20,000 27,250 20,000 - 22,387 25,238 39,033 35,000 47,350 40,000 5,000 17,520 17,840 15,060 15,000 15,250 15,000 - 1,140 1,275 1,070 1,200 705 1,200 - 779,964 1,035,953 1,129,408 f 1,127,200 1,117,851 1,148,200 21,000 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % -4.2 % 0.0 % 0.0 % -12.5 % 0.0 % 25.0% 0.4 % 0.0 % 0.0 % 2.2 % 6.3 % 0.0 % 0.0 % 3.9 % 0.0 % 0.0 % 0.0 % 0.0 % # D I V/0! 0.0 % 50.0% 4.6 % 0.0 % 0.0 % 0.0 % 16.7% 0.0 % -16.7% 16.2% -40.0% 0.0 % 14.3% 0.0 % 0.0 % 1.9% Fines Court Fines 88,109 125,266 125,054 I 130,000 128,856 150,000 20,000 15.4% Parking Fines 150 - - - - - - - Ordinance Violations 1,100 2,000 2,900 - 3,400 - - - Total Fines 89,359 127,266 127,954 130,000 132,256 150,000 20,000 15.4% REVENUES: OtherRevenue Interest Income Refunds & Reimbursements Contributions - Concert Sponsorships Miscellaneous Revenue TotalOtherRevenue Other Financin¢ Sources Other Financing Source - Lease Transfers In Transfers Transfer-Capital Outlay Resery Tra nsfer-Development Tra nsfer-ARPA Tra nsfer-W WTP Transfer-Liquor Tra nsfer-Ga rbage Transfer-Utilities Transfer-Stormwater Tra nsfer-EDA Transfer-HRA Total Transfers In TotalGenerelFund Revenues 2020 2021 2022 2023 10/31/23 2024 INCREASE/ % ACTUAL ACTUAL ACTUAL i BUDGET ACTUAL PRELIMINARY DECREASE CHANGE 117,415 119,745 153,523 120,000 119,767 150,000 30,000 25.0% 147,378 145,251 144,641 I 125,000 4,881 145,000 20,000 16.0% - 19,000 24,811 20,000 42,260 25,000 5,000 25.0% 13,660 13,919 12,619 10,000 9,283 10,000 - 0.0% 278,453 297,915 335,594 � 275,000 176,191 330,000 55,000 20.0% - 225,719 - 0.0 % 490,425 460 1,656 � - 749 - - - - - 50,000 78,500 78,500 89,000 10,500 13.4% 10,600 10,600 10,650 - - - - 0.0% - - 300,000 - - (300,000) - 155,000 160,000 165,000 170,000 170,000 175,000 5,000 2.9% soo,000 soo,000 �so,000 i,000,000 i,000,000 �so,000 (zso,000) -zs.oi 50,000 52,000 54,000 56,500 56,500 58,000 1,500 2.7% 1,312,218 1,355,000 1,355,000 1,380,000 1,226,081 1,400,000 20,000 1.4% 15,500 121,000 135,000 135,000 135,000 135,000 - 0.0% 39,500 41,000 43,000 45,000 45,000 46,000 1,000 2.2% 40,700 41,900 35,000 36,500 36,500 37,500 1,000 2.7% 2,613,943 2,281,960 2,599,306 3,201,500 2,748,330 2,690,500 (511,000) -16.0% 17,161,929 17,871,867 19,204,636 19,661,300 13,131,183 21,570,600 1,080,600 9.7% General Fund Supplies $1,482,300 7% �Pbt Serice 115,950 1% 'ersonal Services $16,448, 200 76% Intergovtl Revenue $659,OOQ General Fund Revenues by Source Charges for Services 3% $1,148,200 Fines Other Revenues 5% $150,000 $330,000 1% 2�Licenses/Permits \ � 2. .. � $1,008,200 5% Other Taxes $225,000 1% Transfers In $2,690,500 12% Property Taxes $15,359,700 71% Expenditures by Category cor„��o� Q, rh�rao� 2024 PRELIMINARY TAX LEVY Levied Levied Levied Preliminary Proposed Tax Levy Pay 2021 Pay 2022 Pay 2023 Pay 2024 Pay 2024 General Fund $12,315,000 $13,109,300 $13,893,000 $15,421,450 $15,359,700 Library 71,500 75,950 75,000 79,000 79,000 General Property Tax Levy $12,386,500 13,185,250 $13,968,000 $15,500,450 $15,438,700 Special Levies: Debt Service - 2010A PS Building 618,870 602,650 - - - 2020A - PS Building Expansion 606,346 608,709 608,709 2021A - Fire Station 3/Equip. 389,135 392,023 392,023 Economic Development Tax Abatement 98,450 97,800 131,475 139,900 139,900 Total Levy $13,103,820 $13,885,700 $15,094,956 $16,641,082 $16,579,332 General Fund Change from Previous Year $376,700 $794,300 $783,700 $1,528,450 $1,466,700 Percentage Change from Previous Year 3.2% 6.4% 6.0% 11.0% 10.6% Total Dollar Change from Previous Year $238,050 $781,880 $1,209,256 $1,546,126 $1,484,376 % Change 1.9% 6.0% 8.7% 10.2% 9.8% NTC Value $29,409,713 $31,581,676 $38,101,440 $42,584,195 $42,584,195 Tax Rate 44.556% 43.967% 39.618% 39.078% 38.933% % Increase in NTC 5.7% 7.4% 20.6% 11.8% 11.8% CITY OF ELK RIVER ESTIMATED TAX IMPACT Residential (Homestead): With Valuation Change Impact Estimated City Tax Estimated Market Value Tax Capacity Tax Capacity Rate Property Value Value Exclusion Value 39.700% 38.933% 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 $1,123 $53 5.0% $345,500 $360,200 4.3% $6,145 $4,822 $3,394 $3,554 $1,347 $1,384 $37 2.7% $490,700 $565,800 15.3% $0 $0 $4,907 $5,658 $1,948 $2,203 $255 13.1% $243,800 $260,900 7.0% $15,298 $13,759 $2,285 $2,471 $907 $962 $55 6.1 % $546,800 $602,800 10.2% $0 $0 $5,468 $6,028 $2,171 $2,347 $176 8.1% $448,400 $459,900 2.6% $0 $0 $4,484 $4,599 $1,780 $1,791 $11 0.6% $340,000 $364,900 7.3% $6,640 $4,399 $3,334 $3,605 $1,323 $1,404 $81 6.1 % $340,000 $340,000 0.0% $6,640 $6,640 $3,334 $3,334 $1,323 $1,298 ($25) -1.9% " Median Value Home * 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%. Commercial/lndustrial: Estimated City Tax Estimated Tax Capacity Tax Capacity Rate Property Value Value Value 39.700% 38.933% Dollar Percent 2023 2024 Change 2023 2024 2023 2024 change change $1,905,600 $2,130,900 11.8% $37,362 $41,868 $14,833 $16,300 $1,467 9.9% $3,158,300 $3,532,200 11.8% $62,416 $69,894 $24,779 $27,212 $2,433 9.8% $4,699,400 $5,084,100 8.2% $93,238 $100,932 $37,015 $39,296 $2,281 6.2% $1,416,300 $1,570,600 10.9% $27,576 $30,662 $10,948 $11,938 $990 9.0% $2,500,000 $2,500,000 0.0% $49,250 $49,250 $19,552 $19,175 ($377) -1.9%