2023 Final Levy and Budget PresentationDECEMBER 5, 2022
Truth in Taxation
2023 Tax Levy and Budget
Property Taxes Calculation
Budget + Debt
Budget + Debt –Non property tax revenues = Levy for property tax
Assessed value X Rate = Tax
Levy for property taxes / tax capacity = rate
Tax –credits –refunds = Net Tax
Net Tax = Property Tax
Total Tax Levy Factors
1.Market Value
2.Tax Capacity
3.Property Class Rates
4.State Aids
5.County Budget/Tax Levy
6.School Operating Levy
7.School District voter Approved Debt Obligations
8.City Budget and Tax Levies
9.Special State Laws; I.e. Credits and Exclusions
Reason for tonight’s
meeting and only
item controlled by
City
Budget Process Overview
Planning (May –Aug.)
Review of timelines, key issues and financial outlook
Department Budget Requests (June –Aug.)
Administration/Finance review of department requests
Staff Recommended Budget
City Council Review (Aug. –Nov.)
Council Workshops
Set Preliminary Budget -Council Action (Sept.)
•September 6, 2022 City Council approved a preliminary levy of 7.54%
Truth in Taxation Notice
Final Review and Adoption of Budget (Dec.)
Truth-in-Taxation Hearing (proposed levy of 4.99%)
Final Budget and Levy -Council Action
Budget History
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Budget 16 Budget 17 Budget 18 Budget 19 Budget 20 Budget 21 Budget 22 Prelim Budget 23
Historical Change in Total Levy (%)
Year Total Levy
2012 1.5%
2013 2.0%
2014 2.96%
2015 5.97%
2016 4.98%
2017 2.94%
2018 2.89%
2019 2.99%
2020 4.76%
2021 2.90%
2022 4.99%
Prelim 2023 4.99%
2023 Tax Levy
2022 Total Levy $4,532,720
2023 Total Levy $4,758,894
o Operations Levy $2,519,337
o Capital Levy $1,601,861
o Debt Levy $ 637,696
2022 to 2023 Change in Levy (4.99%)
o Debt Service Levy Increase -14.96% = $112,212
o General Levy Increase 8.95% = $338,386
o Capital Levy Increase 10.03% = $145,974
o Total Levy Increase 4.99% = $226,174
2022 Budget –Revenue
41.08%
4.29%
12.10%
1.79%
4.22%
26.12%
10.40%
Operations Tax Levy
Licenses & Permits
Intergovernmental
Charges for Service
Misc. Revenue
Capital Tax Levy
Debt Levy
2023 Revenue Changes (+/-)
Increase Fire Contract: $51,841
Increase Building Permits: $50,000 projection
Decrease LGA: (-$64,860)
Decrease Cable Franchise: (-$10,000) projection
Decrease Interest Earnings: (-$15,000) projection
2023 Expense Changes (+/-)
Increase Police Protection: $89,389
Increase Fire Department Operations: $118,607
Increase Capital: $145,974
Where the Tax Dollars Go
10.20%
14.49%
13.11%
0.40%
0.90%
26.91%
8.38%25.62%Debt (Annual General Obligation Bond Payments)
General Government (All Other Depts. & Buildings)
Public Works (building, streets,lights etc.)
Economic Development (taxes)
Planning & Zoning
Public Safety (Police & Fire, animal control)
Culture & Recreation (Parks, Library, Senior Center, etc.)
Capital Reserves (set aside for future purchases)
2023 Budget & Levy Summary
2023 Total Budget (with capital) = $5,615,294
2023 Total Levy $4,758,894
Debt Service Levy = $637,696 (decrease of -$112,212)
General Operations Levy = $2,519,337 (increase of $192,412)
Capital Levy = $1,601,861 (increase $145,947)
Total Levy Increase= $226,147 (increase 4.99%)