Public Hearing - Joe Huss, Finance Director/Assistant City Manager
Title
Title
2021 Truth-In-Taxation Hearing
end
Executive Summary
The City will conduct its annual Truth-In-Taxation (TNT) public hearing to discuss the proposed 2022 tax levy and General Fund budget. A staff report and presentation will precede public input and comment.
Background
The City Council has held a number of 2021 budget discussions to this point, most recently at the Council Workshop on November 8, 2021. The following summarizes discussions to date and the proposed tax levies and General Fund Budget that will be the subject of the public hearing.
2022 Tax Levy
In September, Council approved a Preliminary 2022 Tax Levy of $35,725,000. The levy has since been reduced by $125,000 to $35,600,000. The allocation changes are reflected in the table below:
|
|
|
Preliminary Levy |
Truth-in-Taxation |
|
• General Fund - |
|
$29,725,000 |
$29,350,000 |
|
• Debt Service - |
|
$4,800,000 |
$4,800,000 |
|
• Pavement Management - |
|
$100,000 |
$100,000 |
|
• Parks & Trails - |
|
$350,000 |
$350,000 |
|
• EDA - |
|
$750,000 |
$750,000 |
|
• Additional levy capacity - |
|
$0 |
$250,000 |
|
• |
|
$35,725,000 |
$35,600,000 |
The revised TNT levy of $35,600,000 represents a 4.1% increase over the 2021 adopted levy 0f $34,185,000.
2022 General Fund Budget
The Preliminary General Fund Budget was adopted along with the Preliminary Levies on September 20 with an expenditure budget of $38,395,470 - a 6.7% overall increase in expenditures compared to the 2021 General Fund Budget adopted in 2020. Since then, $79,685 of additional cuts have been made, bringing the recommended budget to $35,315,785. This represents an overall increase of 6.5% over 2021 expenditures and, with the most recently proposed levy allocation, provides a safe margin of revenue over expenditures of $224,715.
Strategic Plan Relationship
Pursuant to the City’s adopted strategic initiatives of Financial Sustainability, Effective Communication, Growth Management, and Organizational Health, the Truth-in-Taxation presentation is designed to provide clear and easy-to-digest fiscal planning and taxation information for city residents and business owners, and all interested parties.
Board/Commission Review
N/A
Financial Impact
The proposed levies and budget, if adopted as presented, would align with the council’s direction that the 2022 adopted tax rate equal the 2021 adopted tax rate, as well as maintain service levels consistent with the Council’s direction.
Public Outreach/Input
Notice of this hearing was published on the Blaine City website and in the Blaine-Spring Lake Park-Columbia Heights-Fridley Life.
Staff Recommendation
Conduct the public hearing and provide direction for the 2022 Tax Levies and General Fund Budget to be adopted on December 20, 2021.
Attachment List
2022 Truth-in-Taxation presentation