2021 Vol 15, Issue 5 September Gem Lake News

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Gem Lake News Page 2 of 6 State statutes require Cities to certify their preliminary property tax levies by September 30th this year. Once the preliminary property tax levy is approved and certified to the County Auditor, the City can lower the levy during the remaining budget process but cannot exceed the certified preliminary levy. For this reason, most Cities certify a preliminary levy using worst-case budget scenarios, which is the case with the 2022 preliminary property levy and budget. The 2022 preliminary property tax levy is proposed at $588,063, which is a 9.24% increase over 2021 certified preliminary property tax levy. The 2022 preliminary property tax levy consists of a debt levy of $87,285.00 (a decrease from 2021 preliminary debt levy of $2,656.00) and the general operating levy of $500,778.00 (an increase of 11.69% over 2021 preliminary tax levy). The following changes were made from the 2021 adopted budget as a basis for the 2022 proposed preliminary property tax levy: • Based on the 2015 Refunding Bond schedule the debt levy for 2022 is set for $79,480.00. In addition, in 2018, the City issued bonds for the improvements on Scheuneman Road and the 2022 debt levy for this issue is $7,805. The two of these debt levies makes up the City’s 2022 debt levy of $87,285. • Licenses and Permits decreased $1,400 for less building activity. • Added $7,000 for small cities aid from the state. • City Council contingency was left at $10,000. • Clerk/General Government increased 8.45% to reflect added expenditures on new city clerk, includes the City’s PRA contribution ($2,145) and additional training (conference registrations $1,500). • Police budget was increased 10.85% to $95,000 based on the City of White Bear Lake’s budget. • The cost of fire services could increase 14.40% to $29,343.00. • Road Maintenance budget includes $20,000 for trimming boulevard trees. • Salt/sand remain at $17,000 and snow plowing contract increased from $18,500 to $20,000. • Included a park maintenance budget of $5,000 for maintaining the park area of the Villas of Gem Lake. • The 2020 budget includes $25,000.00 for future improvements. • Revenue and other expenditure line items adjusted based on past history. • The 2020 budget includes $25,000.00 for future improvements. • Revenue and other expenditure line items adjusted based on past history. These changes result in the City proposed preliminary tax levy of $588,063 for 2022. This compares to 2021 preliminary levy of $538,308.00 and 2021 final levy of $535,476.00. Using a 2022 property tax levy of $588,063.00 and the City’s 2022 tax capacity ($1,426,695.00) and median valued home ($335,850.00) for Gem Lake, that median valued home, that property would pay 2022 City property taxes of $1,255.66 compared to 2021 preliminary levy of $1,136.94 (an increase of $118.72) and the 2021 final levy amount of $1,130.79 (an increase of $124.87). The preliminary budget will be voted on at the next Gem Lake City Council Meeting on September 21. The final budget will be approved at the December council meeting. Due to the City having just passed 500 in population, we are now required to hold a “Truth in Taxation” hearing between November 24-December 28. That hearing will be held at the December City Council Meeting. Gem Lake Proposed Budget for 2021