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CITY OF GEM LAKE
<br />Heritage Hall
<br />A, 4206 Otter Lake Road I Gem Lake, MN 55 L 10
<br />- M 651.-747=2790/921651-747-2795 (fax)
<br />E-mail city,@gemlakemn.org
<br />.September 1.4, 2022
<br />RE: 2023 Preliminary Property Tax Levy
<br />State,Statues require Cities to..cer**their preliminary propertytax levies by September.30th this.year.
<br />Once thc.preliminary property.tax,levy is -approved and certified to the County Auditor, the City can
<br />lower the levy during the :remainiogbudget process .but cannot exceed the certified preliminary levy. For
<br />this reason, most Cities certifyy-a preliminary levy using. worst -case budget scenarios, which is the case
<br />with the City's-2023 preliminary property levy and budget.
<br />The 2023 preliminary property tax levy: is proposed at $748,879; which is a 23.159% increase from the
<br />2022 certified preliminary property tax.levy. The 2023 preliminary property tax levy consists of a debt
<br />levy of $84441'8.00 (a: decrease from 2022 preliminary debt levy of $2,$64.00) andthe general operating
<br />levybf$6.64,461.00 (an. increase of27 59%from.the 2022..preliminary-tax-levy�.-
<br />The following changes were made-f hi the 2022-adopted budget a§ abasis forithe 2023 proposed
<br />preliminary property tax levy:
<br />1. Based on the 20.15-Refunding Bond. schedule the debt levy. for 1023 is, set for .$77,873.0b. In
<br />addition; in 2018, the City issued bonds for the improvements on Seheuneman Road and the 2023
<br />debt levy for%this issue is $6,545.00. The t*b of these debt. levies makes up the City's 2023 debt
<br />levy of $'84,41 &
<br />' 2. Licenses -and Permits increased $2,550 based on 2022 and past activity.
<br />3. City Council con0ngencywas increased to $2Z$,600 (Was $8,000).
<br />4. Clerk/General Government budgevincludes.$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-8oftware.
<br />6. .Police budget was increased 23 .16% to. $117,Q00 based on the City. of White Bear Lake budget
<br />.provided us.
<br />7. The cost of fire service.s.could. increase 15:96 wto $34,025.00.
<br />8. Removed the $14,519 for the code enforcement position in the buildinginspeetions department.
<br />9. Road Maintenance budget includes $25,000 f6f road ntaintenance/repair.and $15,000 for
<br />trimming boulevard trees.
<br />10. Salt/sand remain at $1.5,000 and snow plowing contract increased from $17,000 to $20,9Q0,
<br />1.1.Included a park -maintenance. budget of. $6,600 for maintaining park area of the Villas of Gem
<br />Lake.
<br />12. The 2b22 budget inctudes.$20,000.00 for future improvements.
<br />13. Revenue and other expenditure line items: adjustedd-based on past history.
<br />These-chhtiges result in the *City proposed. preliminary tax levy of $748,879.00 for 2023. This. compares to
<br />2022 proliminary:levy of MOB* 060.00 and 2022.f naf levy. of $558,210.00: Using a 2023 property tax levy
<br />of�$'748,8'19.00 and the City's:2623 tax capacity ($1.,(01,998.00} 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. 24.'compared ..to
<br />2022 preliminarylevy of $.1,364.02 (an increase of$310.6.7) and the.2022 final levy amount o%1,249.71
<br />(an increase of $424.98),
<br />Again; as the City prepares it final 2023. budget the property tax levy.can be. lowered from the preliminary
<br />levy but. not increased.above the..preliminary levy.. The action requested.tonight is for the City Council .to
<br />adopt°tlte resolution adopting the 2023 preliminary property tax levy of $748,879.00.
<br />Look for:us on -the World Wide Web. at gemlakenmorg
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