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11.2 SR 11-04-2024
City of Elk - River To City Council Meeting Date November 4, 2024 Item Description 2025 Budget Action Requested Continue 2025 budget discussion Background/Discussion Request for Action Item Number 11.2 Prepared By Lori Stich, Finance Manager Reviewed by Lori Stich Joe Stremcha Cal Portner Tina Allard On September 16, the Council approved a maximum levy of $17,232,183, with a preliminary General Fund budget of $22,474,100. Since then, additional adjustments of $324,350 have been made to bring the proposed levy to $16,907,833 with an estimated tax rate of 39.05%, compared to 37.895% in 2024. The Council should be mindful that legislative changes to the Market Value Homestead Exclusion has removed a lot of market value from our net tax capacity shifting the tax burden to higher -valued homes, which is the intent of od valorem taxes. The levy adjustments consist of General Fund revenue increases of $124,000 and expenditure reductions of $200,350. Revenue adjustments for police aid and ERMU transfers bring the totals in line with historical actual amounts. Expenditure reductions are due to adjustments to personal services and professional services/consulting costs. These adjustments reduce the General Fund budget to $22,273,750, or a 3.3% increase over 2024. The General Fund budget consists of the same level of services as 2024 and the budget increase is mainly impacted by inflationary increases. Financial Impact N/A Mission/Policy/Goal Responsible for every dollar - good stewards Attachments I. 2025 Budget The Elk River Vision A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E R E U A T engagement that encourages and inspires prosperit[�`WURFJ106 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 2025 PRELIMINARY BUDGET GENERALFUND 2021 2022 2023 2024 9/30/2024 2025 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL PRELIMINARY 12,297,572 13,017,377 13,785,282 14,917,700 7,672,465 $15,689,700 233,745 173,039 156,365 225,000 68,695 225,000 1,015,529 939,133 976,260 1,008,200 594,981 974,200 581,927 657,106 706,917 659,000 819,087 778,000 1,035,953 1,129,410 1,210,808 1,148, 200 1,070,122 1,243,850 127,266 127,954 169,910 150,000 116,933 155,000 297,915 335,594 445,610 330,000 186,698 361,000 - 225,719 - - - - 2,281,960 2,599,306 3,202,249 3,132,500 2,556,715 2,847,000 17,871,867 19,204,638 20,653,401 21,570,600 13,085,696 22,273,750 161,522 180,733 196,879 213,550 175,615 233,000 334,651 368,036 436,535 485,300 331,662 515,350 597,464 609,868 691,952 721,850 542,602 727,050 344,469 367,643 398,243 426,550 309,105 456,150 6,300 41,864 6,280 75,500 45,519 6,800 620,548 696,918 733,973 800,750 614,348 865,650 454,648 652,096 617,017 731,500 485,222 753,800 244,402 270,650 288,808 275,000 234,356 300,000 578,245 479,845 460,952 485,100 364,569 504,750 812,257 925,910 1,054,680 1,085,250 775,084 1,165,550 23,922 24,475 56,284 49,050 20,489 38,900 4,178,428 4,618,038 4,941,603 5,349,400 3,898,571 5,567,000 6,338,212 6,909,469 7,190,412 7,578,400 5,308,610 8,063,550 1,514,752 1,733,540 1,979,598 1,998,000 1,229,167 2,101,750 489,072 610,684 572,772 625,500 447,644 663,800 86,316 76,049 116,261 126,000 90,580 132,900 57,578 111,919 128,842 101,700 87,347 53,900 8,485,930 9,441,661 9,987,885 10,429,600 7,163,348 11,015,900 1,472,080 1,391,531 1,532,241 1,742,150 1,102, 975 1,778,350 336,707 366,282 338,473 411,150 212,865 380,650 253,000 353,287 363,728 397,300 287,838 421,900 396,165 426,794 464,372 489,150 309,443 382,100 2,457,952 2,537,894 2,698,814 3,039,750 1,913,121 2,963,000 1,310,852 1,572,359 1,558,303 1,743,700 1,176, 283 1,727,300 648,970 761,741 773,426 812,150 580,457 784,500 119,465 136,016 178,074 196,000 151,374 216,050 2,079,287 2,470,116 2,509,803 1 2,751,850 1,908,114 2,727,850 171,591 - - - - % of Increase/ % Budget (Decrease) Change 70.4% $772,000 5.2% 1.0% $0 0.0% 4.4% ($34,000) -3.4% 3.5% $119,000 18.1% 5.6% $95,650 8.3% 0.7% $5,000 3.3% 1.6% $31,000 9.4% 0.0% $0 0.0% 12.8% ($285,500) -9.1% 100.Woo $703,150 3.31Y. 1.0% 19,450 9.1% 2.3% 30,050 6.2% 3.3% 5,200 0.7% 2.0% 29,600 6.9% 0.0% (68,700) -91.0% 3.9% 64,900 8.1% 3.4% 22,300 3.0% 1.3% 25,000 9.1% 2.3% 19,650 4.1% 5.2% 80,300 7.4% 0.2% (10,150) -20.7% 25.0% 217,600 4.1% 36.2% 485,150 6.4% 9.4% 103,750 5.2% 3.0% 38,300 6.1% 0.6% 6,900 5.5% 0.2% (47,800) -47.0% 49.5% 586,300 5.6% 8.0% 36,200 2.1% 1.7% (30,500) -7.4% 1.9% 24,600 6.2% 1.7% (107,050) -21.9% 13.3% (76,750) -2.5% 7.8% (16,400) -0.9% 3.5% (27,650) -3.4% 1.0% 20,050 10.2% 12.2% (24,000) -0.9% 0.0% - 0.00% Total General Fund Expenditures $17,373,188 $19,067,709 $20,138,105 $21,570,600 $14,883,154 $22,273,750 100.0% $703,150 3.3% Page 52 of 106 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 Intergovernmental Revenue Federal Grant MV Credit Fire State Aid Police State Aid Police Training Reimb State Crime Prevention Grant Other Grants Total lntergovernment Revenue Charges 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 Engineering Services Reimb Recreation Fees Sr Center Activities Farmer's Market Elk RiverFest Park Use Fee Sewer Inspection Fee Contractor License Check Total Charges for Services Fines Court Fines Parking Fines Ordinance Violations Total Fines CITY OF ELK RIVER 2025 BUDGET GENERAL FUND REVENUES 2021 2022 2023 2024 9/30/24 2025 INCREASE/ ACTUAL ACTUAL ACTUAL BUDGET ACTUAL PRELIMINARY DECREASE CHANGE 12,297,572 13,017,377 13,785,282 14,917,700 7,672,465 15,689,700 772,000 233,745 173,039 156,365 225,000 68,695 225,000 - 12,531,317 13,190,416 13,941,647 15,142,700 7,741,160 15,914,700 772,000 5.2 0.0 14.2% 73,595 81,990 77,630 82,000 77,805 82,000 - 0.0% - 1,600 5,200 4,000 400 5,000 1,000 25.0% 4,656 2,825 3,000 4,000 450 4,000 - 0.0% 62,603 56,725 62,260 65,000 36,260 65,000 0.0% 25,849 26,108 26,843 26,000 26,888 26,000 0.0% 2,460 1,545 1,940 2,500 2,505 2,500 0.0% 15,955 17,685 15,815 16,000 15,613 16,000 0.0% 24,675 16,305 13,475 23,000 10,325 23,000 0.0% 588,999 512,999 521,105 600,000 319,644 550,000 (50,000) -8.3% 191,019 189,965 214,743 160,000 90,843 175,000 15,000 9.4% 753 629 657 700 5,506 700 - 0.0% 800 660 810 - 250 - #DIV/01 24,165 30,097 32,782 25,000 8,492 1 25,000 974,200 (34,000) 0.0% -3.4% 1,015,529 939,133 976,260 1,008,200 594,981 - 10,678 1,872 - - - 0.0% 5,756 5,894 5,786 6,000 6,000 0.0% 218,909 255,658 279,775 230,000 329,633 275,000 45,000 19.6% 276,543 320,526 339,387 340,000 445,511 414,000 74,000 21.8% 38,002 33,489 31,316 35,000 - 35,000 - 0.0% 42,717 30,861 48,781 48,000 31,546 48,000 0.0% - - - - 659,000 12,396 819,086 778,000 #DIV/01 119,000 18.1% 581,927 657,106 706,917 33,725 27,084 22,572 25,000 281,502 235,691 216,110 250,000 1,250 330 365 500 1,491 1,053 1,032 1,500 - 13 330 - 3,780 3,365 2,700 3,500 67,177 46,470 46,027 45,000 155,077 180,030 184,055 183,000 300 625 400 500 289,662 380,317 430,774 400,000 2,475 6,194 6,600 3,000 27,426 21,433 23,182 35,000 16,505 14,741 22,542 20,000 32,505 45,160 53,082 50,000 36,264 40,515 43,817 43,000 21,839 50,381 48,492 12,000 20,622 20,845 27,250 20,000 25,238 39,033 64,433 40,000 17,840 15,060 16,250 15,000 1,275 1,070 795 1,200 035,953 1,129,410 1,210,808 1,148, 200 125,266 125,054 165,910 150,000 2,000 2,900 4,000 127.266 127.954 169.910 150.000 23,680 25,000 - 0.0% 136,168 230,000 (20,000) -8.0% 150 500 0.0% 1,032 1,500 0.0% - - #DIV/0! 1,468 3,500 0.0% 18,867 46,000 1,000 2.2% 184,463 185,000 2,000 1.1% 400 500 - 0.0% 470,798 465,750 65,750 16.4% 1,009 3,000 - 0.0% 25,798 35,000 0.0% 5,065 20,000 0.0% 42,889 52,500 2,500 5.0% 30,910 47,500 4,500 10.5% 43,436 15,000 3,000 25.0% 22,528 20,000 - 0.0% 47,701 76,900 36,900 92.3% 13,000 15,000 - 0.0% 760 1,200 1,243,850 155,000 95,650 5,000 0.0% 8.3% 3.3% 070,122 113,833 - - - #DIV/01 3,100 - 155,005 5,000 #DIV/01 3.3% 116,933 Page 53 of 106 REVENUES: Other Revenue Interest Income Refunds & Reimbursements Contributions - Concert Sponsorships Miscellaneous Revenue Total Other Revenue Other Financing Sources Other Financing Source - Lease Transfers In Transfers Transfer -Capital Outlay Resery Transfer -Development Tra nsfer-ARPA Tra nsfer-W WTP Transfer -Liquor Transfer -Garbage Transfer -Utilities Transfer-Stormwater Tra nsfer-EDA Transfer-HRA Total Transfers In Total General Fund Revenues 2021 2022 2023 2024 9/30/24 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL 119,745 153,523 202,983 150,000 156,851 145,251 144,641 188,548 145,000 (10,211) 19,000 24,811 42,260 25,000 25,750 13,919 12,619 11,819 10,000 14,308 297,915 335,594 445,610 330,000 186,698 - 225,719 - - - 460 1,656 300,749 - 225 - 50,000 78,500 89,000 97,500 10,600 10,650 - - 160,000 165,000 170,000 175,000 175,000 500,000 750,000 1,000,000 1,000,000 1,000,000 52,000 54,000 56,500 250,000 58,000 1,355,000 1,355,000 1,380,000 1,400,000 1,007,490 121,000 135,000 135,000 135,000 135,000 41,000 43,000 45,000 46,000 46,000 41,900 35,000 36,500 37,500 37,500 2,281,960 2,599,306 3,202,249 3,132,500 2,556,715 17,871,867 19,204,638 20,653,401 21,570,600 13,085,695 2025 INCREASE/ PRELIMINARY DECREASE CHANGE 175,000 25,000 16.7% 150,000 5,000 3.4% 26,000 1,000 4.0% 10,000 - 0.0% 361,000 31,000 9.4% 0.0 95,000 6,000 6.7% - - 0.0% - - 0.0% 180,000 5,000 2.9% 850,000 (150,000) -15.0% 60,000 (190,000) -76.0% 1,450,000 50,000 3.6% 125,000 (10,000) -7.4% 48,000 2,000 4.3% 39,000 1,500 4.0% 2,847,000 (285,500) -9.1% 22,273,750 703,150 3.3% Page 54 of 106 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 & Charges Audit Fees Engineering Fees Legal Fees 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 CITY OF ELK RIVER 2025 PRELIMINARY BUDGET GENERAL FUND EXPENDITURES BY ACCOUNT 2021 ACTUAL 2022 ACTUAL 2023 ACTUAL 2024 2025 INCREASE/ % BUDGET PRELIMINARY (DECREASE) CHANGE $9,130,334 $9,818,161 $10,315,488 $11,156,600 $11,540,150 $383,550 276,223 288,869 282,114 263,500 263,500 $0 657,853 587,143 587,971 723,650 712,500 ($11,150) 1,123,073 1,165,831 1,246,038 1,336,550 1,394,700 58,150 366,023 393,388 402,197 461,250 472,650 $11,400 248,909 285,658 309,775 260,000 305,000 $45,000 142,267 150,083 158,966 174,850 181,500 $6,650 1,197,940 1,360,230 1,491,007 1,639,750 1,722,400 $82,650 267,271 350,141 439,336 432,050 470,250 $38,200 - 13,991 1,175 - - $0 13,409,893 14,413,495 15,234,067 16,448,200 17,062,650 614,450 39,405 31,639 21,108 37,500 35,250 (2,250) 154,724 215,352 250,078 288,850 273,500 (15,350) 109,572 81,922 81,967 104,250 109,400 5,150 667,777 792,513 887,802 821,900 768,200 (53,700) 145,394 161,157 189,628 190,800 176,800 (14,000) 49,615 22,109 11,205 39,000 31,000 (8,000) 1,166,487 1,304,692 1,441,788 1,482,300 1,394,150 (88,150) 20,605 17,442 19,838 22,500 1,472 17,348 4,220 5,000 244,402 270,650 288,808 275,000 99,592 125,155 197,651 168,600 72,558 75,677 77,233 79,950 10,053 10,948 12,788 13,450 113,688 124,308 147,637 196,750 9,600 9,600 9,600 9,600 12,416 5,766 9,819 7,500 8,826 14,668 15,875 19,150 183,379 210,633 222,189 238,350 407,785 521,719 535,974 526,400 155,182 194,437 183,421 196,450 522,253 558,821 575,749 660,100 214,024 268,337 358,717 387,950 657 1,710 1,841 5,000 35,337 36,445 18,200 40,000 50,652 52,625 54,389 65,100 348 1,001 802 850 23,000 300,000 178,750 82,500 13,100 217,550 9,600 8,000 19,200 269,450 562,800 193,350 688,600 373,800 5,000 25,500 81,050 850 500 (5,000) 25,000 10,150 2,550 (350) 20,800 500 50 31,100 36,400 (3,100) 28,500 (14,150) (14,500) 15,950 19,654 24,972 40,056 27,750 41,250 13,500 33,016 39,238 44,251 15,100 16,250 1,150 372,000 404,000 436,500 471,000 509,000 38,000 - - 92,600 92,600 88,450 (4,150) 2,587,499 2,985,500 3,348,158 3,524,150 3,707,050 182,900 3.4% 0.0% -1.5% 4.4% 2.5% 17.3% 3.8% 5.0% 8.8% 0.0% 3.7% -6.0% -5.3% 4.9% -6.5% -7.3% 20.5% -5.9% 2.2% -100.0% 9.1% 6.0% 3.2% -2.6% 10.6% 0.0% 6.7% 0.3% 13.0% 6.9% -1.6% 4.3% -3.6% 0.0% -36.3% 24.5% 0.0% 48.6% 7.6% 8.1% 4.5% 5.2% Capital Outlay 37,718 257,243 3,830 - - Debt Service (Leases) - 106,845 110,258 115,950 109,900 (6,050) -5.2% Transfers Out 171,591 - - - Total General Fund Expenditures $17,373,188 $19,067,775 $20,024,013 21,570,600 22,273,750 $703,150 3.3% A A Page 55 of 106 General Fund Expenditures by Category Services & Charges Debt Serice $3,707,050 \ $109,900 17% 0% Supplies $1,394,150 6% Personal Services $17,062,650 77% Intergovtl Revenue $778,000 3% General Fund Revenues by Source Charges for Services $1,243,850 Fines Other Revenues 6% $155,000 $361,000 Transfers In 1% 2% $2,847,000 13% Licenses/Permits $974,200 . 4% Other Taxes $225,000 1% Property Taxes $15,689,700 70% Page 56 of 106 2025 PRELIMINARY TAX LEVY Levied Levied Levied Preliminary Proposed Tax Levy Pay 2022 Pay 2023 Pay 2024 Pay 2025 Pay 2025 General Fund $13,109,300 $13,893,000 $14,917,700 $16,014,050 $15,689,700 Library 75,950 75,000 79,000 79,000 79,000 13,185,250 $13,968,000 $14,996,700 $16,093,050 $15,768,700 General Property Tax Levy Special Levies: Debt Service - 2010A PS Building 602,650 - - - 2020A - PS Building Expansion 606,346 608,709 604,771 604,771 2020B Refunding - PW Building - - - - 2021A - Fire Station 3/Equip. 389,135 392,023 394,123 394,123 Economic Development Tax Abatement 97,800 131,475 139,900 140,239 140,239 Government Building Reserve - - - - Lake Orono Dredging - $13,885,700 $15,094,956 $16,137,332 $17,232,183 $16,907,833 Total Levy General Fund Change from Previous Year $794,300 $783,700 $1,024,700 $1,096,350 $772,000 Percentage Change from Previous Year 6.4% 6.0% 7.4% 7.9% 5.6% Total Dollar Change from Previous Year $781,880 $1,209,256 $1,042,376 $1,094,851 $770,501 Change 6.0%1 8.7%1 6.9%1 6.8%1 4.8% NTC Value $31,581,676 $38,101,440 $42,584,195 $43,298,194 $43,298,194 Tax Rate 43.967% 39.618% 37.895% 39.799% 39.050% Increase in NTC 7.4% 20.6% 11.8% 1.7% 1.7% Page 57 of 106 CITY OF ELK RIVER ESTIMATED TAX IMPACT Residential (Homestead): With Valuation Change Impact Estimated City Tax Estimated Market Value Tax Capacity Tax Capacity Rate 37.817% 39.050% 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 $1,117 $26 2.4% $341,500 $344,200 0.8% $6,505 $15,572 $3,350 $3,286 $1,267 $1,283 $16 1.3% $386,200 $388,900 0.7% $2,482 $11,549 $3,837 $3,774 $1,451 $1,474 $23 1.6% $470,400 $469,500 -0.2% $0 $4,295 $4,704 $4,652 $1,779 $1,817 $38 2.1% $571,100 $571,100 0.0% $0 $0 $5,711 $5,711 $2,160 $2,230 $70 3.2% $604,000 $606,300 0.4% $0 $0 $6,040 $6,063 $2,284 $2,368 $84 3.7% $340,300 $340,300 0.0% $6,613 $15,923 $3,337 $3,244 $1,262 $1,267 $5 0.4% * 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.) Commercial/Industrial: Estimated City Tax Estimated Tax Capacity Tax Capacity Rate 37.817% 39.050% Property Value Value Change Value Dollar change Percent change 2024 2025 2024 2025 2024 2025 $2,130,900 $2,130,000 0.0% $41,868 $41,850 $15,833 $16,342 $509 3.2% $3,532,200 $3,531,900 0.0% $69,894 $69,888 $26,432 $27,291 $859 3.2% $5,084,100 $5,054,400 -0.6% $100,932 $100,338 $38,169 $39,182 $1,013 2.7% $1,570,600 $1,555,900 -0.9% $30,662 1 $30,368 $11,595 $11,859 $264 2.3% $2,500,000 1 $2,500,000 0.0% $49,250 1 $49,250 $18,625 $19,232 $607 3.3% Page 58 of 106