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CITY OF GEM LAKE
<br />Heritage Hall
<br />4106 Otter Lake. Road Gem Lake, MN 55110
<br />i :651-747 2.7901921651-747-2795 (fax):
<br />E-mail citvniz,,emlakernn.ora
<br />Augist 11, 2021
<br />To: Mayor and'City Council
<br />From: Tam Kelly, Treasurer
<br />RE: 2022*.P'relimihary Budget & Property Tax. Levy.
<br />State Statues require Cities to certify their preliminary property tax levies'by September 30th this.year. Once
<br />the preliminary property tax levy is approved and certified to the County Auditor; the City can lower the levy
<br />during the remaining budget process but cannot exceed the certified preliminary levy. For this reason, most
<br />Cities certify a preliminary levy using worst -case budget scenarios, which is the case with the 2022
<br />preliminary property levy and budget.
<br />The 2022 preliminary property tar levy is proposed at $588,063,. which is a 9N% increase over 2021 certified
<br />preliminarypropertytax levy. The 2022preliminary property tax levy consists of a debt levy of $87,285,00 (a
<br />decrease from 262�1 preliminary debt levy of $2,656:00) and the general operating levy of$500,778.00 (an
<br />increase of I 1.69% over 2021 preliminary tax levy).
<br />The following changes were made from. the 2021. adapted budget as a basis --for the 2022 proposed prelpninary
<br />property tax.levy:
<br />l . Based. on the 2015 Refunding Bond schedule.the debt levy far 20 is set for. $70,486.0.0, In.addition,
<br />in 2018, the City issue¢.bonds. for the improvements on Scheuneman*Road. and the 2022 debt levy for.
<br />this issue is $7,8Q5. The two. offl►ese. debt levies snakes up the. City's.2022 debt levy of$87.,285.
<br />2'. Licenses and Permits decreased $1,�400 for less building activity.
<br />3. Added:$7,000 for small cities aid:from the state.
<br />4. City Council contingency was. left.at.$10,000.
<br />S. Clerk/General .Government increased 8.45% to reflect added expenditures on new city clerk, includes
<br />tho City's PRA contribution ($2,145) and additional training (conference. registrations $ I,500}.
<br />6. Police budget was increased 10.8S% to $951000 based on the. City of White BearL:ake's budget..
<br />7. The cost of fire services could increase 14.40� o to $29,343.00.
<br />8. Road Maintenanco budg$t-includes $20,000 for.trimming boulevard trees..
<br />0, Salt/sand rem6ift at $17,000 and snow plowing contract increased from.$18,SOO tg $20,000.
<br />10. Included apark maintenance budget. of. $5,000 for maintaining. park.area:ofthe'Villas of Gem .Lake.
<br />U. The.2020 budget inc ludes.S25.,000.00. for future improvements.
<br />12. Revenue and other expenditure line items adjusted based on past history.
<br />These changes .result in the City proposed preliminary tax levy of $588,063. for 2022. This compares to 2021
<br />preliminary levy of $538,308.00 and 2021 final. levy Qf$535,476.00. using 4.2022 property tax levy of
<br />$998,063.00. and.the City's 2022. tax capacity ($1,426,6$5:00) and median valued home: ($335,850.00)-for
<br />Gem lake,. that median valued home, that property wouldpay 2022 City property taxes of $,1,235.66 compared
<br />to 2021 preliminary levy of $1,136.94 (an increase of$1.1.8.72) and the 2021 final. levyamattnt of $1,130:79
<br />(an increase of $1.24.87),
<br />Again, as the City prepares it fnal"204. budget the property tax levy can be, lowered from the preliminary levy
<br />but not increased abovethe levy. -$o tonight; the City Council is. asked to-diseuss any budget
<br />changes, which will be incorporated and presented In Septembber far the Coun01l*to approve a preliminary levy
<br />to certify to Ramsey County..
<br />Look fbr us on the. World Wide. Web at gemlakemn.org
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