Administration - Alison Bong, Deputy Finance Director
Title
Title
Certify Preliminary General Fund Budget and Preliminary Tax Levy for Fiscal Year 2023
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Executive Summary
City Council, through the adoption of the resolution below, establishes the preliminary General Fund budget and preliminary property tax levy for 2023.
Background
Minnesota Statutes require that cities annually certify preliminary budget and property tax levies to county auditors by September 30. As Council has discussed previously, the preliminary budget may be adjusted either up or down, however, once set, the preliminary property tax levy can only be lowered. Thus, the Council does have the ability to reduce the preliminary tax levy as the 2023 budget process unfolds.
The levy proposed in the resolution below would, per the best estimates of staff given data currently available, result in a combined 2023 net tax capacity rate for the City and EDA of 32.877%.
The proposed General Fund expenditure budget totals $41,383,610. Preliminary revenue sources provide a safe margin of revenues over expenditures of $910,690.
Strategic Plan Relationship
The City’s financial performance relative to the adopted budget and the five-year outlook resulting from the budget process provide the best measurements of the City’s adherence to maintaining the strategic goal of Financial Stability.
Board/Commission Review
The City Council has reviewed the proposed budget and tax levies at individual or small group meetings as well as the Council Workshop of September 12.
Financial Impact
Nominally three quarters City’s general operations funding comes from property tax. The appropriation of funds through the budget process establishes the spending parameters for Council approved initiatives.
Public Outreach/Input
No public notification is required at this stage of the process.
Staff Recommendation
Approve the following resolution.
Attachment List
No attachments.
Body
WHEREAS, current tax law requires cities to certify a proposed budget and tax levy to the county auditor; and
WHEREAS, guidelines established by the Commissioner of Revenue require this to be done by September 30; and
WHEREAS, the Department of Revenue certified the local government aid amounts to cities that were set for payable 2023 by the current tax law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine, Minnesota, that the proposed expenditure budget for the General Fund is $41,383,610; and
BE IT FURTHER RESOLVED that the proposed 2023 net levy for the General Fund; the Pavement Management Program; Parks Reinvestment Program; Improvement Bonds of 2014, 2016, 2017, 2019, 2020, 2021, and 2022; General Obligation Refunding Bonds of 2013; and Equipment Certificates of 2018 is $37,638,900; and
BE IT FINALLY RESOLVED that the resolution represents a good faith effort by the City to substantially comply with the applicable law and the guidance supplied by the Commissioner of Revenue.
PASSED by the City Council of the City of Blaine this 19th day of September, 2022.