Agenda - Council - 10/08/2024 - Laserfiche WebLink

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Mr. Dobbs shared that the City has been great to work with through this process. Mayor Kuzma added that the park they are working on in this area is looking great. 8. COUNCIL BUSINESS 8.01: Adopt Resolution 24-262 Adopting Proposed 2025 Payable Tax Levies (General, Pavement Management, EDA and Debt Service) & Schedule Public Hearing for November 26, 2024; Adopt Resolution #24-263 Adopting Proposed 2025 General Fund Budget and Resolution #24-264 Adopting Proposed 2025 EDA Budget. Finance Director Lund reviewed the Staff report in regard to the proposed 2025 payable tax levies, general fund budget, and EDA budget and set the public hearing date for the tax levies for November 26, 2024. She shared the proposed tax levy for 2025 totals $21,950,694, which is an 8.24% increase. Mayor Kuzma thanked all Staff, Council, and Finance Director Lund for all of the work that went into putting this budget together. Councilmember Musgrove asked about the general budget decreasing while the tax capacity is increasing. Finance Director Lund explained that the capital outlay amount has decreased greatly due to a lot fewer capital requests. She noted that even though the personnel costs increased, it was not as great of an increase as the capital requests decreased. Councilmember Musgrove asked how this increases the tax capacity from 40%to 46%. Finance Director Lund shared that the new way the market value exclusion is calculated plays into the overall tax capacity value. She explained that last year they had legislative funds and debt issued for capital requests that they do not have this year which has to be transferred to the property taxes. Councilmember Riley explained that even if the tax levy did not increase, the tax capacity would have increased because of the new market value exclusions. Councilmember Musgrove shared that she is surprised to see this much of a tax capacity increase with all of the new houses that have been built in the City over the last few years. Finance Director Lund noted that this depends on where the houses are built. She explained that in the tax increment district,the values of these homes do not come into the general fund levy until the district is decertified. Motion by Councilmember Howell, seconded by Councilmember Woestehoff, to Adopt Resolution #24-262 Approving the Proposed 2024, Payable 2025 Tax Levy in the amount of City Council/ September 24, 2024 Page 8 of 11