9/19/2022- City Council - Work Session - Agendas CITY OF SPRING PARK
WORK SESSION AGENDA
SEPTEMBER 19, 2022 — 6:00 PM
SPRING PARK SPRING PARK CITY HALL
On Lake Minnetonka
(Work Session discussion times are approximate)
1. 6:00: Staff Point of Contact Request
2. 6:05: 2023 Preliminary Levy Proposal/Budget Discussion/Five-Year Forecast
3. 6:50: Miscellaneous
4. 7:00: Adjourn
SPRING PARK
On Lake 3Kinnetonka
Preliminary Levy Proposal
To: Spring Park—Mayor and Council
From: Mike Anderson,Administrator
Subject: 2023 Preliminary Levy Proposal
The purpose of this memorandum is to give you some information regarding future adoption or amending the proposed
2023 preliminary levy in preparation for Truth In Taxation in December.
The last few weeks I have updated you on the major items which are calling for an approximate 21%increase for 2023.
When looking at the proposed difference between the 2022 and 2023 there are some factors that are out of our control
and need to be paid:
- Police Contract is going up$40,000
- Public Works Contract$100,000 unaccounted for from 2022 and incorporated in 2023
- $68,000 in Bond Payments(#will be increasing yearly)
Out of the$330,485 increase, $208,000 is for contracts to Orono and Bond payments. The rest is regular operating cost
increases.
So all in all,the increase in expenditures is out of our control at this time. Staff are continuing to look at ways to increase
revenues for the General Fund as well as the Utility Funds. These discussions will continue as we move forward this fall.
In 2022 the City of Spring Park's Net Tax Capacity was$4,071,042. In 2023 the NTC will be just over$5,000,000. With
our proposed 21%levy increase,the Cities Net tax Capacity Rate is actually dropping from 30.1%down to 28%.
In 2022 the median household value was approximately$350,000. A resident's total taxes due would have been$3,500.
Of that, $1050 is City portion and the new increase for 2023 will be approximately$220.50.
(Resident Previous Years Taxes x NTC x 21%increase=2023 City Taxes)
Some of this pain will be absorbed by our enterprise funds,but we will also need to take a hard look at those.But with the
expecting and forecasting increases we are looking at an estimated(minimum)21%increase from 2022. As we continue
to work through budget season, it is Staff's goal to be able to drop this 21%down into the"teens".We look forward to
discussion on this matter and direction from the City Council.
$1,173,210—2022
$1,419,435—proposed for 2023
City of ny Park
4349 WARREN AVENUE, SPRING PARK, MINNESOTA 55384-9711 (952) 471-9051 FAX(952)471-9160
WWW.CI.SPRING-PARK.MN.US