Agenda - Council Work Session - 11/09/2021

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CC Work Session 2, 5, Meeting Date: 11/09/2021 Information Title: Discussion and update of 2022 Budget/Levy Purpose/Background: Purpose: To determine a final budget and levy for adoption at the December 14, 2021 City Council meeting. Background: The preliminary budget and levy was adopted at the regular City Council meeting of September 28, 2021. The preliminary levy adopted was $15,321,278 or 17.77% increase over the 2021 adopted levy of $13,009,808. The Pavement Management levy contributed the largest amount - $1,673,227 of the levy increase, with personnel (existing & requests) contributing most of the remainder of the increase. At the budget worksession of October 26, 2021 the 2022 Personnel Requests: position reclassifications, increases in hours and new positions in the net total funding amount of $216,402 was presented and further clarification of requests was provided. A consensus of the city council at the last work session was to keep all current personnel requests in the levy/budget. No further changes have been made to Personnel Costs as some union contract are still open for negotiation. As time was limited at the worksession, the 2022 capital equipment requests were not reviewed. Even though these items do not affect the property tax levy, as they are funded by other internal city funds, staff would like to review all requests with council. 2022 Capital requests are attached. The city contributes funds (not only General Funds) towards several events and memberships. Staff would like to review where funds are spent. A listing of Community Programs is attached. Family Promise and Anoka Ice Arena have also requested funding. These can be explored at the worksession, or placed on a future worksession. There has been only one change since preliminary adoption of the 2022 levy and that pertains to the debt service levy. Due to the refinancing of the Municipal Center debt, there will be a reduction in the debt levy of $ 8,422 due to actual debt service numbers and not estimates. This would bring the 2022 levy to $15,312,856. The General Fund levy remains at a 5% increase as preliminary adopted and following Council member Heinemann's proposal. Updated Tax Capacity sheet is attached. Timeframe: 20-30 minutes Funding Source: Responsible Party(ies):