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Attachment A <br />19 2020 City Manager Recommended Tax Levy and Impact on Homeowners <br />20 As noted above, the 2020 Recommended Budget will require a property tax levy increase of $1,187,000 <br />21 or 5.5%. This levy increase results in property tax impact on the median-valued home of $80.03 per year <br />22 or $6.67 per month. Additional impacts on residents will be felt due to the EDA Levy and Utility Rates. <br />23 <br />24 The following table depicts the estimated overall impact on a median-valued single-family home based <br />25 on the City Manager Recommended Levy, the preliminary EDA levy presented to the Council on July <br />26 15, and the tentatively projected 5.2% overall utility rate impact: <br />27 <br />2020 Budget Impact on Median-Valued Home (monthly) <br />20192020$ Chg.% Chg. <br />Property Tax Levy: City$ 85.8179.14$ $ 6.678.4% <br />Property Tax Levy: EDA 1.921.92 ( 0.00)-0.1% <br />Utility Rates 57.62 60.60 5.2%2.98 <br />Combined Total138.68$ $ 148.33$ 9.657.0% <br />28 <br />29 <br />30 As shown in the table, the estimated overall impact for all budget-related programs is $9.65 per month, <br />31 an increase of 7.0%. It should be noted that the financial impacts noted above include the effects from a <br />32 projected home valuation increase of 6.7% which plays a significant role in the impact. <br />33 P OLICY O BJECTIVE <br />34 The submittal of the City Manager Recommended Budget is required under Mn State Statute 412.701 <br />35 and serves as a means of guiding subsequent budget discusssions as well as communication with citizens <br />36 and other statekholders. <br />37 F INANCIAL I MPACTS <br />38 See above and attached information. <br />39 S TAFF R ECOMMENDATION <br />40 See above and attached information. <br />41 R EQUESTED C OUNCIL A CTION <br />42 For information purposes only. No formal Council action is requested, however the Council is asked to <br />43 provide comment and direction in advance of the preparation of the Preliminary Budget and Tax Levy <br />44 adoption scheduled for September 23, 2019. <br />45 <br />Prepared by: Chris Miller, Finance Director <br />Patrick Trudgeon, City Manager <br />Attachments: A: Memo: City Manager Recommended Budget <br />B: 2020 Recommended Budget: PowerPoint <br />C: 2020 Recommended Budget: Citywide <br />D: 2020 Recommended Budget: Property Tax-Supported Programs <br />E: 2020 Recommended Budget: Fee-Supported Programs <br />F: 2020 Recommended Budget & Tax Levy Reconciliation for the Property Tax-Supported Programs <br />G: 2020 Recommended Budget: Rev & Exp Summary by Division (Function) <br />46 <br />Page 2 of 2 <br /> <br />