8.1 SR 09-16-2024City of
Elk -
River
To
City Council
Meeting Date
September 16, 2024
Request for Action
Item Number
8.1
Prepared By
Lori Stich, Finance Manager
Item Description Reviewed by
Set Budget Meeting Date and Adopt Resolution 24- Joe Stremcha
55 Preliminary 2025 Tax Levy Cal Portner
Tina Allard
Action Requested
■ Set, by motion, the budget meeting for 6:30 p.m., December 2, 2024, when public comment will be
taken.
■ Adopt, by motion, Resolution 24-55 authorizing the preliminary property tax levy for collection in
2025
Background/Discussion
The Council must approve the preliminary tax levy for certification to the county auditor by September 30,
2024. The attached levy resolution sets the preliminary tax levy at $17,332,183, compared to the $16,137,332
levy for 2024. The General Fund budget is currently $22,474,100, which is a 4.2% increase over the 2024
budget of $21,570,600.
Preliminary Net Tax Capacity (NTC) values are estimated at $43,298,194, about a 1.7% increase. With the
estimated 1.7% NTC increase, the preliminary tax rate, with fully funded debt service levies, would be about
40.030%.
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 2, 2024.
Financial Impact
N/A
The Elk River Vision
A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E H E 0 B
INAALWIDY
engagement that encourages and inspires prosperity
381
Mission/Policy/Goal
To grow responsibly and be good stewards for every dollar to develop a sustainable and prosperous
community.
Attachments
I. 2025 General Fund Summary
2. 2025 Preliminary Levy -Tax Impacts
3. 2025 Preliminary levy resolution
Page 207 of 381
General Fund Revenues:
Property taxes
Othertaxes
Licenses & Permits
Intergovernmental Revenues
Charges for Services
Fine
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
Total General Fund Expenditures
CRY OF ELK RIVER
2025 PRELIMINARY BUDGET
GENERALFUND
2021
2022
2023
2024
7/31/2024
2025
%of
Increase/
%
ACTUAL
ACTUAL
ACTUAL
BUDGET
ACTUAL
PRELIMINARY
Budget
(Decrease)
Change
12,297,572
13,017,377
13,785,282
14,917,700
7,671,673
$16,114,050
71.7%
$1,196,350
8.0%
233,745
173,039
156,365
225,000
13,156
225,000
1.0%
$0
0.0%
1,015,529
939,133
976,260
1,008,200
422,189
974,200
4.3%
($34,000)
-3.4%
581,927
657,106
706,917
659,000
46,943
704,000
3.1%
$45,000
6.8%
1,035,953
1,129,410
1,210,808
1,148,200
958,106
1,243,850
5.5%
$95,650
8.3%
127,266
127,954
169,910
150,000
82,640
155,000
0.7%
$5,000
3.3%
297,915
335,594
445,610
330,000
111,826
361,000
1.6%
$31,000
9.4%
-
225,719
-
-
-
-
0.0%
$0
0.0%
2,281,960
2,599,306
3,202,249
3, 132,500
2, 172,786
2,697,000
12.0%
($435,500)
-13.9%
17,871,867
19,204,638
20,653,401
21,570,600
11,479,318
22,474,100
100.0%
$903,500
4.2%
161,522
180,733
196,879
213,550
334,651
368,036
436,535
485,300
597,464
609,868
691,952
721,850
344,469
367,643
398,243
426,550
6,300
41,864
6,280
75,500
620,548
696,918
733,973
800,750
454,648
652,096
617,017
731,500
244,402
270,650
288,808
275,000
578,245
479,945
460,952
485,100
812,257
925,910
1,054,690
1,085,250
105,526
233,000
1.0%
19,450
9.1%
244,603
515,550
2.3%
30,250
6.2%
398,081
756,000
3.4%
34,150
4.7%
226,901
456,350
2.0%
29,800
7.0%
25,633
6,800
0.0%
(68,700)
-91.0%
482,860
866,000
3.9%
65,250
8.1%
329,549
754,000
3.4%
22,500
3.1%
179,709
300,000
1.3%
25,000
9.1%
279,477
505,000
2.2%
19,900
4.1%
575,132
1,170,400
5.2%
85,150
7.8%
15,224
50,700
0.2%
1,650
3.4%
862,697
5,613,800
25.0%
264AOO
4.9%
6,338,212 6,909,469 7,190,4121 7,578,400 3,962,073 8,108,750 36.1% 530,350 7.0%
1,514,752 1,733,540 1,979,598 1,998'000 875,927 2,104,700 9.4% 106,700 5.3%
489,072 610,694 572,772 625,500 330,848 663,950 3.0% 38,450 6.1%
86,316 76,049 116,261 126,000 66,371 132,950 0.6% 6,950 5.5%
1,472,080 1,391:531 1,532,241 I 1,742,150
336,707 366282 338,473 411,150
253,000 353,287 363,728 397,300
1,310,852 1,572,359 1,558,303 I 1,743,700
648,970 761,741 773,426 812,150
67,054
107,100
0.5%
5,400
5.3%
302,272
11,117,450
49.5%
697,850
6.6%
860,497
1,757,300
7.8%
15,150
0.9%
205,118
376,600
1.7%
(34,550)
-8.4%
218,449
422,450
1.9%
25,150
6.3%
244996
365550
1.6%
(123,600)
-25.3%
529,060
2,921,900
13.0% (117,850)
-3.9%
851,463
1,824,950
8.1%
81,250
4.7%
425,593
779,900
3.5%
(32,250)
-4.0%
109909
216100
1.0%
20,100
10.3%
386,965
2,820,950
12.6%
69,100
2.5%
0.0% 0.00%
080,995 $22p74,3O0 100.0% $903,500 4.2%
Page 208 of 381
2025 PRELIMINARY TAX LEVY
Levied
Levied
Levied
Preliminary
Tax Levy
Pay 2022
Pay 2023
Pay 2024
Pay 2025
General Fund
$13,109,300
$13,893,000
$14,917,700
$16,114,050
Library
75,950
75,000
79,000
79,000
13,185,250
$13,968,000
$14,996,700
$16,193,050
General Property Tax Levy
Special Levies:
Debt Service -
2010A PS Building
602,650
-
-
2020A - PS Building Expansion
606,346
608,709
604,771
2020B Refunding - PW Building
-
-
2021A - Fire Station 3/Equip.
389,135
392,023
394,123
Economic Development Tax Abatement
97,800
131,475
139,900
140,239
Government Building Reserve
-
-
-
Lake Orono Dredging
-
-
-
$13,885,700
$15,094,956
$16,137,332
$17,332,183
Total Levy
General Fund Change from Previous Year
$794,300
$783,700
$1,024,700
$1,196,350
Percentage Change from Previous Year
6.4%
6.0%
7.4%
8.6%
Total Dollar Change from Previous Year
$781,880
$1,209,256
$1,042,376
$1,194,851
Change
6.0%
8.7%
6.9%
7.4%
NTC Value $31,581,676
Tax Rate 43.967%
% Increase in NTC 7.4%
CITY OF ELK RIVER
ESTIMATED TAX IMPACT
Residential (Homestead): With Valuation Change Impact
$38,101,440
$42,584,195
39.618%
37.895%
20.6%
11.8%
$43,298,194
40.030%
1.7%
Estimated City Tax
Estimated
Market Value
Tax Capacity
Tax Capacity Rate
37.817%
40.030%
Property Value
Value
Change
Exclusion
Value
Dollar
change
Percent
change
2024
2025
2024
2025
2024
2025
2024
2025
$298,800
$296,500
-0.8%
$10,348
$10,555
$2,885
$2,859
$1,091
$1,145
$54
4.9%
$341,500
$344,200
0.8%
$6,505
$15,572
$3,350
$3,286
$1,267
$1,315
$48
3.8%
$386,200
$388,900
0.7%
$2,482
$11,549
$3,837
$3,774
$1,451
$1,511
$60
4.1%
$470,400
$469,500
-0.2%
$0
$4,295
$4,704
$4,652
$1,779
$1,862
$83
4.7%
$571,100
$571,100
0.0%
$0
$0
$5,711
$5,711
$2,160
$2,286
$126
5.8%
$604,000
$606,300
0.4%
$0
$0
$6,040
$6,063
$2,284
$2,427
$143
6.3%
$340,300
1 $340,300
1 0.0%
$6,613
$15,923
$3,337
1 $3,244
1 $1,262
1 $1,298
1 $36
2.9%
As property value increases, the market value exclusion is phased out at $517,200 & over. (This is an increase from $413,800 &
over in 2024.)
Page 209 of 381
ver
City of Elk River
City Council
Resolution 24-SS
A Resolution of the City Council of the City of Elk River Adopting the
Preliminary Property Tax Levy for Taxes Payable in 2025
WHEREAS, the Elk River City Council is required to establish a preliminary tax levy for
taxes payable in 2025 by September 30, 2024 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 2025; and,
WHEREAS, the Elk River City Council has considered projected revenues for all funds in
2025; 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 2024:
General Fund
Li bra ry
2020A GO CIP Bond
2021A GO CIP/Equipment Bond
Economic Development Tax Abatement
Total Tax Levy
Passed and adopted this day of
ATTEST:
Tina Allard, City Clerk
2024.
Levy
$16,114, 050
79,000
604,771
394,123
140,239
$17, 332,183
John J. Dietz, Mayor
POWERED R1
NAMR
Page 210 of 381