2016 08-23 CC PACKET - Laserfiche WebLink

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CITY OF GEM LAKE, MN 4200 Otter Lake Roan _ Gem Lake, ll'xinnesota 551.1.0 ;Y ' August 16, 2016 To: Mayor and City Council Fiona: Tom Kelly, Treasurer RE: 2017 Preliminary Property Tax Leavy, State Statues require City's to certify their preliminary property tax levies by September 15'h each year. Once the preliminary property tax levy is approved and certified to the County Auditor, the city can lower the levy during the remaining Midget process but Gannot exceed the certified preliminary levy: For this reason, most Cities certi fy a preliminary levy using worst case budget scenarios, which is the. case with the Mayor's 2017 preliminary property levy and. budget, The 2017 preliminary property tax levy is proposed at $494A 1, which is a 16.9% increase over 2016 certified preliminary property tax levy. The 2017 preliminary property tax levy consists of a debt levy of $75>986,52 (an increase from 2016.preliminary debt levy of $70,000) and the general operating levy of $418,29.4.00 (an increase of 18.6% over 2016 preliminary tax levy). The following.changes were made from the 2016 adopted budget as a basis for the 2017 proposed preliminary property tax levy, 1. Based. on the 2015 Refunding Bond schedule the debt levy for 2017 is set For $75,986,52, 1n 2016 the debt levy was set for 80,724.00 and the City used $10,724,00 of reserves to: lower the levy to $70,000,00, For 2017 there are no reserves available to reduce the levy at this tune. This is an increase of $5;986.52 or 8,55°/o.. 2. The City used $80,000.00 of reserves to balance the operating budget and lower the property tax Levy in.2016. At this time there are no longer reserves available for Lowering the tax levy and therefore theproposed preliminary levy was increased $80,000,00 instead.of Cutting expenditures. 3. The 2017 Planning and Zoning budget includes S85,000,00 for the 2018 Comp. flan. Update. 4. Based on preliminary budget numbers provided by Ramsey County Sherriff's Department, policy budget increased 6.3°/o to $113,116.00 compared to $106,416.00 in 2016, 5. Based on preliminary budget nurn.bera provided by the City of White Bear Lake the cost of .fire services could increase 6.431/o to $16,075.00. 6.. Legal services increased $11,500.00 to. $2.8,500,00 for possible land development issues. 7. EIection services increased to $7,026.00 from 4,150.00 based.on Ramsey County Election Department budget. numbers, 8, Budget. for Heritage Hall increased to $21,050.00 from $18,5.50.00 based. on past.. t' expenditures, Look for us on the World Wfdc: Web at gem. Inkemn.o.rg