09-27-2021 Council Packet - Laserfiche WebLink

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Prepared By: RJO Reviewed By: A. Carlson Approved By: 1. Purpose. The purpose of this agenda item is adopt the 2022 Preliminary Tax Levy. 2. Background. By State Law the City is required to adopt a preliminary property tax levy by September 30th. Once adopted, the preliminary levy may be reduced, but it cannot be increased. The property tax levy has five components. The first is the operating levy which is adopted to fund the General Fund Operating Budget and is increasing by $250,000 (5%). The second part is the Facilities Levy which is dedicated to be used for construction and capital maintenance of city buildings. The third is for the Pavement Management Levy that is needed to fund the City’s pavement maintenance plan. This levy is increasing by $150,000. It has been increasing annually as the City moves towards fully funding its Pavement Management Plan. A levy for parks that was reinstated last year is being increased by $50,000. The final levy component is for the debt service of the City’s outstanding bonds. The breakdown of the tax Levy is as follows. General Fund - Operating $5,172,030 Facilities $390,000 Pavement Management $900,000 Parks $100,000 Debt Service $577,680 Total $7,139,710 When compared to the 2021 tax levy, the levy is increasing by $529,090 or 8.0%. Adoption of this levy would keep the City’s tax rate flat. 3. Staff Recommendation. Staff Recommends approval of the 2022 Preliminary Tax Levy. COUNCIL ACTION REQUESTED A motion to adopt one of the attached resolution adopting the 2022 Preliminary Tax Levy. Exhibits A. Resolution B. Tax Rate Calculation Item No.: 11 Date: September 27, 2021 Item Description: Adopt 2022 Preliminary Tax Levy Presenter: Ron Olson, Finance Director Agenda Section: Finance Director Report