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City of Gem Lake City Council Meeting Minutes September 20, 2022 2 | Page
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<br />City Manager Lindy Crawford shared information regarding some projects the City has scheduled. The
<br />City of White Bear Lake will be replacing the current fire apparatus bay, adding a police garage, interior
<br />remodeling to support current and future operations, adding secure staff parking and other needed building
<br />updates. Construction is set to begin March 2023 and the project is set to be substantially complete June
<br />2024.
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<br />2023 Preliminary Budget Presentation / Public Hearing
<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.
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<br />City Treasurer Tom Kelly gave an overview of the 2023 preliminary property tax levy is proposed at
<br />$748,879, which is a 23.159% increase from the 2022 certified preliminary property tax levy. The 2023
<br />preliminary property tax levy consists of a debt levy of $84,418.00 (a decrease from 2022 preliminary debt
<br />levy of $2,864.00) and the general operating levy of $664,461.00 (an increase of 27.59% from the 2022
<br />preliminary tax levy).
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<br />The following changes were made from the 2022 adopted budget as a basis for the 2023 proposed
<br />preliminary property tax levy:
<br />1. Based on the 2015 Refunding Bond schedule the debt levy for 2023 is set for $77,873.00. In
<br />addition, in 2018, the City issued bonds for the improvements on Scheuneman Road and the 2023
<br />debt levy for this issue is $6,545.00. The two of these debt levies makes up the City's 2023 debt
<br />levy of $84,418.
<br />2. Licenses and Permits increased $2,550 based on 2022 and past activity.
<br />3. City Council contingency was increased to $25,000 (was $8,000).
<br />4. Clerk/General Government budget includes $10,000 for health insurance coverage and a wage
<br />increase of 5% for the Clerk.
<br />5. Clerk/General Government budget includes $50,000 for new software.
<br />6. Police budget was increased 23 .16% to $117,000 based on the City of White Bear Lake budget
<br />provided.
<br />7. The cost of fire services could increase 15.96% to $34,025.00.
<br />8. Removed the $14,579 for the code enforcement position in the building inspections department.
<br />9. Road Maintenance budget includes $25,000 for road maintenance/repair and $15,000 for trimming
<br />boulevard trees.
<br />10. Salt/sand remain at $15,000 and snow plowing contract increased from $17,000 to $20,000.
<br />11. Included a park maintenance budget of $6,000 for maintaining the trail area near the Villas of
<br />Gem Lake.
<br />12. The 2023 budget includes $20,000.00 for future improvements.
<br />13. Revenue and other expenditure line items adjusted based on past history.
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<br />These changes result in the City proposed preliminary tax levy of $748,879.00 for 2023. This compares to
<br />2022 preliminary levy of $608,060.00 and 2022 final levy of $558,210.00. Using a 2023 property tax levy
<br />of $748,879.00 and the City's 2023 tax capacity ($1,601,998.00) and median valued home ($395,800.00)
<br />for Gem lake, that median valued home, would pay City property taxes of $1,674.69 in 2023 compared to
<br />2022 preliminary levy of $1,364.02 (an increase of$310.67) and the 2022 final levy amount of$1,249.71
<br />(an increase of $424.98).
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<br />Mayor Artig-Swomley informed those in attendance that the Council would begin with the preliminary
<br />levy public hearing, and that the public would have a chance to provide input on the topic.
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<br />Councilmember Lindner introduced a motion to open the public hearing at 7:58 p.m. on the 2023
<br />preliminary budget, seconded by Councilmember Amlee. Voice vote taken, all in favor, motion passes, the
<br />public hearing is opened at 7:58 p.m.
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