|
The levy increase of $2,979,389 has the following contributing factors:
<br />1. Pavement Management (Street Reconstructions & Overlays) - $1,229,269 of levy increase
<br />a. There are over $37 million of Pavement Management projects included in the city's proposed
<br />2023-2032 Capital Improvement Plan (CIP).
<br />b. Designating an annual pavement management levy (5% annual increase) - $83,662 increase
<br />for 2023.
<br />c. Issuance of Reconstruction Debt at end of 2022 in the amount of approx. $12 million.
<br />Annual debt service levy of $1,145,607 for the next 15 years. The calling for a the required public
<br />hearing in regards to this issue was included on the consent section of September 27, 2022 agenda
<br />which is to call for a public hearing to be held on October 11, 2022,
<br />2. Additional Personnel Requests - New positions, reclassifications and additional hours - $231,474
<br />Personnel additions of a full-time Patrol Officer, full-time Engineering Tech II, part-time Community
<br />Service Officer, current part-time Recreation Specialist to full-time, Reclass Police Records Tech to
<br />to Data Analyst, reclass Engineering Tech II to Engineering Tech II and increase of 1.5 hours a week
<br />for Permit Tech
<br />3. $914,558 of increase is related to non -budgeted positions added during 2022 year: HR Specialist, Fire
<br />Captain of Administration, Building Inspector and Street Maintenance Worker; 3% Cost of Living
<br />Adjustments (COLA), steps, Pera, Workers Comp and health insurance costs (approx 9% increase).
<br />4. $309,640 Increase debt service levy (excluding 2022 Reconstruction Debt noted above). $300,000 of
<br />Municipal Center Debt was funded with internal debt service funds in 2022.
<br />5. $287,198: Combination of several budget line items. Largest Gas & Diesel: $94,000.
<br />6. EDA Levy: $7,250 increase.
<br />2023 Proposed General Fund Budget: $17,027,353 ($14,492,640 - Year 2022)
<br />2023 Proposed EDA Budget: $87,610 ($85,360 - 2022).
<br />All EDA and General Fund documents are included together, as the EDA levy calculates into the total
<br />general levy calculation of the city and thus accounts for the several motions listed below.
<br />While the proposed levy can always be reduced, it cannot be increased without "higher" level approval
<br />through an appeals process. Until the budget and levy is formally adopted on December 13, 2022, there
<br />will be budget worksessions to continue discussions on the Proposed 2023 General Fund Budget and
<br />2023 Proposed Levies.
<br />The proposed levy must be certified to Anoka County by Friday, September 30, 2022. Therefore, the
<br />Council must make a decision prior to that date in regard to the amount of this levy. If the proposed
<br />levy is not passed for any reason, the adopted 2022 levy ($15,312,856) will be certified as the city's
<br />payable 2023 levy.
<br />Schedule Budget Public Hearing Date:
<br />The Truth -in -Taxation (TNT) law was changed in 2009. The City is no longer required to hold a special
<br />TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing,
<br />the City is required to hold a regularly scheduled meeting at which the budget and levy will be
<br />discussed. The City may adopt the budget and levy immediately following. The public meeting must be
<br />held between November 25 and December 30 and held after 6:00 P.M.
<br />Staff is recommending that the public meeting be held at its regularly scheduled meeting of December
<br />13, 2022, with adoption of the 2023 General Fund Budget and levy to immediately follow.
<br />
|