7.1 SR 12-06-2021 - Laserfiche WebLink

Home Browse Search

City of Qk*l River Request for Action To Item Number Mayor and City Council 7.1 Agenda Section Meeting Date Prepared by Public Hearin December 6, 2021 Lori Ziemer, Finance Director Item Description Reviewed by 2022 Budget and Tax Levy Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, the 2022 General, Special Revenue, and Enterprise Fund budgets. Adopt, by motion, the resolution authorizing the property tax levy for collection in 2022. Background/Discussion In May, staff began the budgeting process by developing their 2022 department goals and budget requests. Over numerous work sessions, the City Council and staff reviewed in detail each department's operating budget and the property tax levy. In September, the Council approved the preliminary tax levy that was used to calculate the proposed property tax notice that was mailed to each property owner. General Fund Budget The 2022 General Fund budget is $18,913,650 compared to $17,532,500 in 2021. The greatest portion of the city's General Fund operating budget is dedicated to public safety programs and services, with general government, public works, and parks and recreation making up the balance. Due to the fact that city government is primarily a service industry, 77% of the operating budget is for personal service expenditures. Tax Lew On September 20, the City Council adopted the preliminary tax levy of $14,134,100. Since then, additional reductions of $248,400 have been made for a proposed tax levy of $13,885,700 for 2022. The county estimates the city's Net Tax Capacity (NTC) value increasing about 7.7%, attributable to new growth and market value increases. The final NTC may change slightly as the county continues to update property values before calculating property taxes in early 2022. Based on the current NTC values, the proposed tax rate is 43.830%, a decrease from last year's rate of 44.556%. The city accounts for about 36% of a homeowner's total property tax bill. The remainder is attributed to the county (36%), the school district (26%), and other jurisdictions (2%). For businesses, the city's share is about 28% of the total. The majority of the property tax levy (94%) funds city services such as police, fire, street maintenance, parks and recreation, and general government. The remaining 6% pays for debt service, tax abatement, and library operations. AR