Rogers Approves $ 9.57 Million Preliminary Drawdown for 2022 | Government
On September 14, Rogers City Council passed and certified a proposed levy of $ 9.57 million for 2022. The city is required to certify a proposed preliminary levy to Hennepin County by September 30.
The final levy adopted on December 14 may be lower than the preliminary levy certified in September, but it cannot be higher. The proposed tax levy includes a general levy of $ 9.46 million and special debt levies of $ 100,901.
The city’s tax levy for 2022 is expected to be even lower before final adoption on Dec. 14, according to Bridget Bruska, Rogers’ chief financial officer.
“Balancing the shared conservative budget philosophies of council and staff, while meeting the demand for high quality services in a growing community can be difficult even in the best budget years,” Bruska said to city council. . “The 2022 budget is no exception.
The preliminary total levy will result in an estimated tax rate of 35% in 2022, compared to the rate of 33.4% in 2021, according to Bruska. The overall increase in levies is approximately 9.83% with an estimated tax rate of 35%, providing for an increase in taxes on a residential property with a median value of $ 354,000 from $ 130, including an average 6% increase in valuation, Bruska said.
“A major factor taken into account when preparing the 2022 budget is the significant growth of the city,” said Bruska. “The majority of the current growth is due to residential developments, but the city is also experiencing commercial / industrial growth. While staff expect commercial / industrial construction to slow due to reduced land availability, residential development is expected to continue.
In the August 24 city council budget work session, based on the current budget and drawdown recommendations, the council asked staff to draft a preliminary drawdown certification proposal that reflects operational and staffing needs. town, Bruska’s note said. “The preliminary drawdown maintains capital reserve funds for future needs and replacements, the Rogers Activity Center (RAC) drawdown, interfund loan drawdowns, and special debt and abatement drawdowns,” the memo said.
The proposed increase in the levy is mainly due to the following:
• Growth-oriented staff / operational increases
• Inflationary and tariff increases, contractual service agreements and increases in utilities, insurance and technology
• Union contracts and staff costs programmed in all departments
• Updated revenue projections
• Debt for the replacement of CIP equipment (Capital Improvement Plan) as well as the reimbursement of obligations using UMD funds (Underserved Municipalities Distribution)
• Uncertainty during the COVID-19 pandemic.
The city’s bond rating was confirmed during the surety process in 2021 at AA +, a notch below the highest rating of AAA. “The city is on a solid financial footing, as illustrated by the city’s financial management plan, the city’s annual financial report and the city’s bond rating,” Bruska’s memo said. “This is a significant achievement for a community the size and population of Rogers as growth and development continue. “
The main factors when considering the budget, according to the note, include:
• Increase in total fiscal capacity by 6.41%, including new growth and development, as well as increasing valuations and stabilizing market values due to economic health;
• Funding of street reconstruction through the City’s Pavement Management Plan / Franchise Fee;
• Use of the financial management plan and five-year planning objectives;
• Funding and use of CAP reserves for new and / or replacement buildings, equipment, unpaved streets, parks and trails to reduce future borrowing costs and take advantage of opportunities to leverage grants / external partnerships for these elements;
• Council and staff seeking partners to meet infrastructure needs through federal, state, county and school funding, or other grant funding opportunities;
• The board and staff try to find resources to reduce pressures through legislation and, if possible, other sources of income than taxation.
In 2019, a local option sales tax (LOST) of 0.25% was adopted in Rogers, with revenues going to fund parks, trails and community recreation infrastructure.
City council and staff will continue to refine the budget to identify any additional efficiencies in service delivery, cost reductions or revenue opportunities, Bruska said. “Hennepin County is also revising the final tax capacity information used for the calculation of the tax rate until the end of the year,” she said, adding that the tax rate estimates are subject to “slight variations”.
Council also approved a public hearing on Nov. 9 on modifying three open TIF (Tax Increase Funding) housing neighborhoods: Autumn Trails, Heritage Place and Wellstead. Debt obligations for the three districts will be fully paid in 2021, Bruska said.
Instead of removing the neighborhood certification, Ehlers, the city councilor, has determined that it is possible to use funds from existing residential neighborhoods to support the Duffy downtown development project for housing in low to moderate income.
Tax Increase Funding is a method of public funding used as a grant for redevelopment, infrastructure, and other community improvement projects.
Although the TIF housing districts’ current plans do not allow the purchase of property, Ehlers informed staff that the districts may be changed to allow the purchase of property. The city offers an interfund loan to buy the property and then repay itself with the TIF housing money once the neighborhood changes are complete, according to Bruska.
“If the Duffy downtown development project does not move forward and the property is not used for a low to moderate income housing project, the city should find another source of funding for the cost of the land. “said Bruska. .
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