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City of <br />Elk - <br />River <br />To <br />City Council <br />Meeting Date <br />November 4, 2024 <br />Item Description <br />2025 Budget <br />Action Requested <br />Continue 2025 budget discussion <br />Background/Discussion <br />Request for Action <br />Item Number <br />11.2 <br />Prepared By <br />Lori Stich, Finance Manager <br />Reviewed by <br />Lori Stich <br />Joe Stremcha <br />Cal Portner <br />Tina Allard <br />On September 16, the Council approved a maximum levy of $17,232,183, with a preliminary General Fund <br />budget of $22,474,100. Since then, additional adjustments of $324,350 have been made to bring the proposed <br />levy to $16,907,833 with an estimated tax rate of 39.05%, compared to 37.895% in 2024. The Council should <br />be mindful that legislative changes to the Market Value Homestead Exclusion has removed a lot of market <br />value from our net tax capacity shifting the tax burden to higher -valued homes, which is the intent of od <br />valorem taxes. <br />The levy adjustments consist of General Fund revenue increases of $124,000 and expenditure reductions of <br />$200,350. Revenue adjustments for police aid and ERMU transfers bring the totals in line with historical actual <br />amounts. Expenditure reductions are due to adjustments to personal services and professional <br />services/consulting costs. These adjustments reduce the General Fund budget to $22,273,750, or a 3.3% <br />increase over 2024. The General Fund budget consists of the same level of services as 2024 and the budget <br />increase is mainly impacted by inflationary increases. <br />Financial Impact <br />N/A <br />Mission/Policy/Goal <br />Responsible for every dollar - good stewards <br />Attachments <br />I. 2025 Budget <br />The Elk River Vision <br />A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E R E U A T <br />engagement that encourages and inspires prosperit[�`WURFJ106 <br />