|
City of Gem Lake City Council Meeting Minutes July 18, 2023 2 | Page
<br />2024 Preliminary Budget Presentation / Public Hearing – White Bear Township Finance Officer,
<br />Tom Kelly
<br />Under state law, cities must adopt a proposed property tax levy by September 30 of each year. The
<br />proposed levy will be used to produce parcel-specific taxpayer notices, also referred to as truth-in-taxation
<br />notices, which will be distributed to taxpayers in November. If a city fails to certify its proposed levy to the
<br />county by September 30, the county auditor is required to use the authority’s previous year’s final levy as
<br />the levy for the following year.
<br />
<br />City Treasurer Tom Kelly gave an overview of the 2024 preliminary property tax levy is proposed at
<br />$717,742, which is a 7.291% increase from the 2023 certified preliminary property tax levy. The 2024
<br />preliminary property tax levy consists of a debt levy of $81,554.00 (a decrease from 2023 preliminary debt
<br />levy of $2,864.00) and the general operating levy of $636,188.00 (an increase of 8.806% from the 2023
<br />preliminary tax levy).
<br />
<br />The following changes were made from the 2023 adopted budget as a basis for the 2024 proposed
<br />preliminary property tax levy:
<br />
<br />1. Based on the 2015 Refunding Bond schedule the debt levy for 2024 is set for $76,269.00. In
<br />addition, in 2018, the City issued bonds for the improvements on Scheuneman Road and the 2024
<br />debt levy for this issue is $5,285.00. The two of these debt levies makes up the City’s 2024 debt
<br />levy of $81,554.
<br />2. Did not include small government aid from the State since the City no longer qualifies. This
<br />reduces revenues by $7,000.00.
<br />3. City Council contingency was increased to $10,000 (was $9,000).
<br />4. Clerk/General Government budget includes $60,000.00 for wages and $11,000 for health
<br />insurance coverage.
<br />5. Clerk/General Government budget does not include $75,815 for the new software.
<br />6. Planning & Zoning budget increased $5,000.00 based on past expenditures.
<br />7. Police budget was increased 12.38% to $129,466 based on the City of White Bear Lake budget
<br />provided us and includes $115,877 for police services and $13,589 for debt payments on the new
<br />public facilities building.
<br />8. The cost of fire services could increase 43.04% to $48,669.00. It includes $31,982 for fire
<br />services, $7,746 for fire marshal services, and $8,941 for debt payments on the new public
<br />facilities building.
<br />a. Overall, the City of White Bear Lake would like Gem Lake to pay $22,530 for the next
<br />20 years for their new facility.
<br />9. Road Maintenance budget includes $22,000 for road maintenance/repair and $15,000 for trimming
<br />boulevard trees.
<br />10. Salt/sand reduced $3,000 to $12,000 and snow plowing contract decreased from $17,000 to
<br />$15,000, both based on past expenditures.
<br />11. Heritage Hall budget includes $15,000 for building improvements to the office doors and front
<br />window for security and $15,000 for the irrigation system.
<br />12. Included a park maintenance budget of $6,000 for maintaining park area of the Villas of Gem
<br />Lake.
<br />13. The 2022 budget includes $20,000.00 for future improvements.
<br />14. Revenue and other expenditure line items adjusted based on past history.
<br />
<br />These changes result in the City proposed preliminary tax levy of $717,742.00 for 2024. This compares to
<br />2023 preliminary levy of $669,115.00 and 2023 final levy of $651,221.00. Using a 2024 property tax levy
<br />of $717,742.00 and the City’s 2024 tax capacity ($1,761,612.00) and median valued home ($429,600.00)
<br />for Gem lake, that median valued home, would pay City property taxes of $1,576.46 in 2024 compared to
<br />2023 preliminary levy of $1,491.95 (an increase of $84.51) and the 2023 final levy amount of $1,450.95
<br />(an increase of $125.51).
<br />
|