Agenda - Council Work Session - 11/23/2021

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CC Work Session 2.2. Meeting Date: 11/23/2021 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 a 17.77% increase over the 2021 adopted levy of $13,009,808. The preliminary levy as currently presented is $15,312,586 or a reduction of $8,689 which is related to the reduction in debt service from the Municipal Center refinancing. The breakdown of the $15,312,856 proposed levy is as follows: General Fund Levy: $11,712,590 (5% or $557,742 over 2021 adopted levy) Pavement Levy: $ 1,673,227 (15% over 2021 General Fund Levy) Debt Levy: $1,851,679 (4.05% or $72,079 over 2021 adopted levy) EDA Levy: $ 75,360 (no change from 2021 adopted) Proposed 2022 Property tax levies for MN Cities is estimated to increase 6.6% per a state report. Excluding the Pavement Levy, the City's 2022 Proposed levy would have increased 4.84%. With Pavement Levy, the increase is 17.70%. The 2022 Proposed General Fund Budget that was preliminary adopted was $14,543,640 (1.1 1 % or $160,292 over 2021 adopted). The 2022 Proposed General Fund Budget as currently presented is $14,492,640 or a decrease of $51,000. This decrease is attributed to a reduction in capital equipment requests. There is no offsetting reduction to the property tax levy as capital requests were funded with internal funds. No further changes have been made to Personnel Costs as some union contracts are still open. 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 this work session, or placed on a future work session as time permits. The following attachments are presented for final review of the 2022 budget and levy: 1. Tax Capacity Rate Calculation 2. Levy Comparisons with Anoka County Cities 3. 2022 Personnel Requests 4. 2022 Capital Requests with Internal Funds Cash Flows 5. 2022 Proposed General Fund Budget 6. 2022 Proposed EDA Budget 7. Memberships