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2020 Budget – Page 4 <br /> <br /> <br /> <br />Revenues <br /> <br /> <br />There are some significant revenue increases that will offset some of the increased expenditures. <br />The agreement with Spring Park to provide public works service will bring in $191,000 of new <br />revenue. Increases to the Police Service contracts will total $99,740. Spring Park and <br />Minnetonka Beaches increases (2.5%) are based on the labor contracts 2022 COLA, Mound’s <br />increase is calculated on the Mpls/St. Paul CPI-U from May 2020 to May 2021 (4.6%). The <br />State Grant other line is increasing by $115,000 to reflect Orono’s role as the lead agency in the <br />TZD program. The balance of the increases will be funded by an increase of $285,893 in the <br />property tax levy. The increased levy will not change the property tax rate. <br /> <br />Taxes <br />The tax levy associated with the draft budget is: <br /> <br /> 2021 2022 (E) <br />General Fund $4,921,140 $5,207,030 <br />Building Fund 310,000 390,000 <br />Pavement Management 750,000 900,000 <br />Parks 50,000 65,000 <br />2014 Debt Service 166,700 161,000 <br />2016 Debt Service 412,780 416,680 <br />Total: $6,610,620 $7,139,710 <br /> <br />During the June work session, the Council indicated that they would be comfortable with a levy <br />increase of $50,000 for Parks. Currently the levy for the Park Fund is increasing by $35,000 <br />with the balance of that increase in the General Fund to pay for a new position and increased <br />maintenance. Current estimates have the City’s taxable market value increasing by <br />approximately 8%. This increase would allow the projected increase in the levy without <br />increasing the tax rate. The City’s current tax rate is 16.78% and is the 4th lowest in Hennepin <br />County. Each increase of .1 in the tax rate is equal to approximately $39,000. <br /> <br />Organizational Improvements <br />As discussed in June, there are several organizational / position changes staff would like to <br />explore during the 2022 Budget process. The majority of the changes should be budget neutral. <br />The plan will be to review these position changes with the Organization Committee this summer <br />and fall concurrent with the 2022 budget process so that any changes can be incorporated. As <br />part of the process staff will provide more detailed budget impact statements for each. Below is <br />a summary for the proposed organizational changes to be explored. <br /> <br />A. Mechanic Position. Reinstate the full time mechanic position. <br />i. Justification. Currently the city spends a lot of money on contracted <br />maintenance for both vehicles and generators. In addition the public works