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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 10.5 <br />Agenda Section Meeting Date Prepared by <br />Work Session September 8, 2020 Lori Ziemer, Finance Director <br />Item Description Reviewed by <br />2021 Budget Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Continue 2021 budget discussion. <br /> <br />Background/Discussion <br />The General Fund budget for 2021 is currently $17,599,600, which is a 3.4% increase over 2020. The city was able <br />to realize General Fund savings of $14,000 related to its workers compensation insurance renewal. <br /> <br />The preliminary tax levy is $13,310,920 and is a 3.5% increase. This does not include any additional amounts that <br />may be considered for the public works facility debt or sinking fund reserves. With the estimated NTC value of <br />$29,773,925 received from the county, an additional $385,000 can be utilized if the Council chooses to maintain a <br />tax rate similar to 2020. <br /> <br />On September 21, the Council will adopt the maximum preliminary tax levy for taxes payable 2021 to be certified <br />to the county by September 30. The final tax levy will be adopted in December and can be the same or lower, but <br />cannot be greater, than the preliminary tax levy. <br /> <br />As part of the budget process, a five-year General Fund and city tax rate projection is presented to assist in the <br />decision-making process in achieving the city’s overall goal of financial sustainability. The forecast assumes <br />existing debt and known decisions and does not presume future debt or decisions of the Council. Conservative <br />assumptions are utilized for growth trends, inflationary factors, interest earnings, and other factors. <br /> <br />Staff is seeking council direction regarding the General Fund budget and preliminary tax levy for adoption on <br />September 21. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />The city’s mission is to grow responsibly and be good stewards for every dollar. The Council approved a goal to <br />build sustainable reserve for future capital costs. A method of meeting this goal is to transition debt service <br />payments to the tax levy and establish sinking fund reserves for the future replacement of city assets. <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br /> <br />