Agenda - Council - 09/28/2021 - Laserfiche WebLink

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The levy increase of $2,311,471 is largely attributed to the new Pavement Management Levy in the amount of $1,673,227 (number was arrived at based on 15% of last years General Fund Levy of $11,154,848). The Pavement Management Fund Levy replaces the Franchise Fee that was rescinded on July 27, 2021 and thus all city franchise fees will be removed from a residents/business gas (Centerpoint Energy) and electric (Anoka Municipal and Connexus Energy) bills after their December 31, 2021 billing. The estimated amount that was to be collected from the franchise fee was approximately $1.9M. Other Factors of Levy Increase: 1. $249,797 Personnel additions of a full-time Park Maintenance worker, full-time Systems and Security Administrator, part-time Receptionist/Secretary (offset with reduction of Admin Intern), current part-time Police Tech and Building Maintenance workers to full-time, additional hours for Recreation Specialist, and position reclasses of the current Senior Planner to Planning Manager, Engineering Tech IV to Senior Engineering Tech, Streets Lead to Streets Department Supervisor and Maintenance Worker to Street Lead Person. 2. $307,946 of increase is related to Cost of Living Adjustments (COLA), Market Rate Adjustments, steps, Pera, Workers Comp and health insurance costs. Most of the Union Contracts with Law Enforcement Labor Services (LELS) for Patrol, Sergeants and Captains and Afscme have been negotiated for year 2022. 3. $80,501 in Debt Service Levy 2022 Proposed General Fund Budget: $14,543,640 ($14,383,348 - Year 2021) 2022 Proposed EDA Budget: $85,360 No change from adopted 2021. All EDA and General Fund documents are included together, as the EDA levy calculates into the total general levy calculation of the city and thus accounts for the several motions listed below. While the proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process. Until the budget and levy is formally adopted on December 14, 2021, there will be budget worksessions to continue discussions on the Proposed 2022 General Fund Budget and 2022 Proposed Levies. The proposed levy must be certified to Anoka County by Thursday, September 30, 2021. Therefore, the Council must make a decision prior to that date in regard to the amount of this levy. If the proposed levy is not passed for any reason, the adopted 2021 levy ($13,009,808) will be certified as the city's payable 2022 levy. Schedule Budget Public Hearing Date: The Truth -in -Taxation (TNT) law was changed in 2009. The City is no longer required to hold a special TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing, the City is required to hold a regularly scheduled meeting at which the budget and levy will be discussed. The City may adopt the budget and levy immediately following. The public meeting must be held between November 25 and December 30 and held after 6:00 P.M. Staff is recommending that the public meeting be held at its regularly scheduled meeting of December 14, 2021, with adoption of the 2022 General Fund Budget and levy to immediately follow. The public meeting date must be certified to Anoka County by Thursday, September 30, 2021; therefore, the City Council must make a decision as to the date selected for the 2022 payable public meeting at tonight's meeting, unless a special meeting is called. Time Frame/Observations/Alternatives: