Administration - Joe Huss, Finance Director/Asst. City Manager
Title
Title
Certify Preliminary General Fund Budget and Tax Levy for Fiscal Year 2022
end
Executive Summary
Pursuant to Minnesota statutes, the City Council will adopt the City’s preliminary General Fund Budget and tax levies for 2022.
Background
Minnesota Statutes require that cities annually certify preliminary budget and property tax levies to county auditors by September 30. As discussed at previous budget workshops, the preliminary budget may be adjusted either up or down, however, once set, the property tax levy can only be lowered. Thus, the Council does have the ability to reduce the preliminary tax levy as the 2022 budget process unfolds.
The levy proposed in the attached resolution would, per the best estimates of staff given data currently available, result in a combined 2022 net tax capacity rate that equals the 2020 combined net tax capacity rate for the City and EDA of 35.834%.
The proposed General Fund expenditure budget totals $38,415,145. Preliminary revenue sources provide a safe margin of revenues over expenditures of $244,655.
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 previous Council Workshops.
Financial Impact
The annual tax levies provide over 75% of the funding for the City’s general operations and 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 2022 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 $38,415,145; and
BE IT FURTHER RESOLVED that the proposed 2022 net levy for the General Fund; the Pavement Management Program; Parks Reinvestment Program; Improvement Bonds of 2012, 2014, 2016, 2017, 2019, 2020, and 2021; General Obligation Refunding Bonds of 2013; and Equipment Certificates of 2017, and 2018 is $34,975,000; 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 20th day of September, 2021.