09-26-2022 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 2023 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 six components. The first is the operating levy which is adopted to fund the General Fund Operating Budget and is increasing by $648,900 (13%). The second part is the Facilities Levy which is dedicated to be used for construction and capital maintenance of city buildings which is remaining at the 2022 amount. The third is for the Pavement Management Levy that is needed to fund the City’s pavement maintenance plan and is increasing by $100,000 (11.1%). The levy for parks is being increased by $50,000 (50%). The Community Investment levy is being established at $219,000 to pay for projects of citywide value. 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 $5,641,000 Facilities $375,000 Pavement Management $1,000,000 Parks $150,000 Community Investment 219,000 Debt Service $1,002,000 Total $8,387,000 When compared to the 2021 tax levy, the levy is increasing by $1,442,220 or 20.7%. Based on current information from the Hennepin County, adoption of this levy would result in a slight decrease in the City’s tax rate. 3. Staff Recommendation. Staff Recommends approval of the 2023 Preliminary Tax Levy. COUNCIL ACTION REQUESTED A motion to adopt one of the attached resolution adopting the 2023 Preliminary Tax Levy. Exhibits A. Resolution B. Tax Rate Calculation Item No.: 6 Date: September 26, 2022 Item Description: Adopt 2023 Preliminary Tax Levy Presenter: Ron Olson, Finance Director Agenda Section: Consent Agenda