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Page 3 of 5 time, it is unknown what the costs will be to enforce the law 48 Aid to Cities – one-time public safety aid, based on population (Roseville share is $1.594 million), 49 ongoing increase in the homestead credit refund for those currently eligible; one time increase in renters 50 credit, homestead credit refund and targeted property tax refund. Homestead market value exclusion 51 increased from $417,000 value homes to $517,000 value homes. Reduction in 4d low income rental 52 housing property tax classification rate and 2-year aid to help transition for cities impacted by the shift. 53 The public safety aid will help reduce the city’s capital and operational costs for a short period. The other 54 tax changes will most likely shift the tax burden to different tax classifications. 55 Local Sales Tax – 31 cities had local sales taxes approved, including Roseville 0.5% local sales tax. Next 56 step is for the city to have the city’s voters decide whether to implement the local sales tax through a 57 referendum in 2024. If the local sales tax is passed, it will reduce the cost to Roseville property tax 58 payers. 59 Housing – significant increases in one-time funding for existing and new programs. A .25% Metro Sales 60 Tax was approved to provide funding and will be distributed to metro cities with populations greater than 61 10,000. This change in law will result in the city receiving additional dollars to spend on housing projects. 62 Transportation – increased funding for various state programs including MSA, increased license tab fees, 63 the motor vehicle sales tax and the gas tax. Increased metro area sales tax by ¾ percent for transit and 64 county roads. This change in law will provide the city more funding opportunities for transportation 65 projects. This change in law will also provide an increase in revenues at the License Center. 66 Environment – increased funding for Releaf urban forestry program (EAB), all cities required to allow 67 “managed natural landscape” on all parcels, Recycling SCORE grants increased. This change in law will 68 provide the city more grant funding opportunities. 69 Energy – city climate resiliency funding available. This change in law will provide the city more grant 70 funding opportunities. 71 State Bonding - The city did not receive funding to complete the OVAL improvements. Staff will be 72 submitting a request for funding as part of the 2024 Bonding Bill. 73 74 Budgetary Impacts from Other Considerations 75 In prior years, we have used this opportunity to provide a summary of the potential financial impacts of 76 maintaining programs and services. This includes impacts associated with employee COLA’s and wage 77 steps, healthcare increases, contractual obligations & professional services, and general inflationary costs. 78 Additional tax levy support for capital improvement funds will also be included in the 2024 budget. It is 79 also expected that implementation of the current compensation and classification study will be included 80 in the 2024 budget. 81 82 The City Manager is meeting with each department to review their specific budget needs and will be 83 focusing on refining those requests into his proposed budget which will be presented to the City Council 84 on August 21, 2023. 85 86 In addition to tax levy impacts noted above, continued emphasis on our water, sanitary sewer, and storm 87 sewer infrastructure replacement programs is expected to drive utility rate increases for 2024 as well. We 88 will be using the rate increases as noted in the utility rate prepared by Ehlers in 2022. More specific 89 information regarding budgetary impacts will be addressed with the release of the 2024 City Manager 90 Recommended Budget in August and the utility rates later this fall. 91 92 The City Council is asked to provide its goals & objectives for the 2024 Budget and Tax Levy. This is a 93 critical step in the budget process as it will be used to guide the City Manager Recommended Budget, 94 and will ensure more clear and timely communications with citizens and other property taxpayers. 95 96