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CITY OF GEM LAKE
<br />Heritage Hall
<br />4200 Otter Lake Road | Gem Lake, MN 55110
<br />651-747-2790/92 | 651-747-2795 (fax)
<br />E-mail city@gemlakemn.org
<br />
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<br />December 17, 2024
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<br />RE: 2025 Proposed Budget and Property Tax Levy.
<br />
<br />State Statues require Cities to certify their final property tax levies by December 31st this year. The levy will
<br />fund the 2025 operating (General Fund) budget and some debt payments. If a final tax levy is not approved by
<br />December 31st the final levy would become the preliminary levy certified in September.
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<br />The 2025 proposed final property tax levy is proposed at $718,736, which is a 3.11% increase from the 2024
<br />final property tax levy. The 2025 preliminary property tax levy consists of a debt levy of $83,736.00 (an
<br />increase from 2024 debt levy of $2,182.00) and the general operating levy of $635,000.00 (an increase of
<br />3.16% from the 2024 tax levy).
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<br />The following changes were made from the 2024 adopted budget as a basis for the 2025 proposed budget and
<br />property tax levy:
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<br />1. Based on the 2015 Refunding Bond schedule the debt levy for 2025 is set for $79,711.00. In addition,
<br />in 2018, the City issued bonds for the improvements on Scheuneman Road and the 2025 debt levy for
<br />this issue is $4,025.00. The two of these debt levies makes up the City’s 2025 debt levy of $83,736.
<br />2. City Council wages increased to $9,000 to reflect stipend increase approved earlier this year.
<br />3. City Council contingency left at $9,000.
<br />4. Clerk/General Government budget includes $63,000.00 for wages and $11,5500 for health insurance
<br />coverage.
<br />5. Planning & Zoning budget increased $6,950.00 based on past expenditures.
<br />6. Police budget was increased 13.85% to $147,402 based on the City of White Bear Lake budget
<br />provided us and includes $133,089 for police services and $14,313 for the new public facilities
<br />building.
<br />7. The cost of fire services could increase 8.54% to $52,827.00. It includes $35,300 for fire services,
<br />$8,181 for fire marshal services, and $9,346 for the new public facilities building.
<br />a. Overall, the City of White Bear Lake would like you to pay $23,659 for the next 19 years for
<br />their new facility.
<br />8. Road Maintenance budget includes $20,000 for road maintenance/repair and $8,000 for trimming
<br />boulevard trees.
<br />9. Salt/sand reduced $4,000 to $8,000 and snow plowing left at $14,000, both based on past
<br />expenditures.
<br />10. Heritage Hall budget includes $10,000 for building improvements and $10,000 for other
<br />improvements.
<br />11. Included a park maintenance budget of $7,000 for maintaining park area of the Villas of Gem Lake.
<br />12. The 2025 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 $718,736.00 for 2025. This compares to
<br />2025 preliminary levy of $733,757.00 and 2024 final levy of $697,081.00. Using a 2025 property tax levy of
<br />$718,736.00 and the City’s 2025 tax capacity ($1,809,157.00) and median valued home ($443,750.00) for
<br />Gem Lake, that median valued home, would pay City property taxes of $1,680.37 in 2025 compared to 2025
<br />preliminary levy of $1,725.55 (an decrease of $45.18) and the 2024 final levy amount of $1,529.81 (an
<br />increase of $150.56).
<br />
<br />The action requested tonight is for the City Council to adopt the resolution adopting the 2025 final property tax
<br />levy of $718,736.00.
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