The cities of Blaine, Columbia Heights, Fridley and Spring Lake Park set their 2022 preliminary levies and budgets last month.
The final budgets and levies, payable in 2022, will be approved in December following a public Truth in Taxation meeting and public hearing. Final levies can’t be higher than preliminary levies, but they can be lower.
The Blaine City Council unanimously approved the preliminary tax levy and general fund budget Sept. 20.
According to Joe Huss, the city’s finance director and city manager, the combined city and Economic Development Authority property tax levy is set to increase 4.5% over 2021. The city levy is just under $35 million, and the EDA levy is $750,000, for a total property tax levy of $35.7 million.
The preliminary general fund expenditure budget totals $38.4 million. Huss said the preliminary revenue sources provide a safe margin of revenues over expenditures of $244,655.
Public hearings on the tax levy and budget will take place at 7 p.m. Monday, Dec. 13, and 7:30 p.m. Monday, Dec. 20, at City Hall, 10801 Town Square Drive NE. The final tax levy and budget will be approved following the Dec. 20 hearing.
The City Council unanimously approved the preliminary property tax levy and budget, as well as the final Housing and Redevelopment Authority property tax levy Sept. 27.
According to Finance Director Joseph Kloiber, the preliminary tax levy is up 8.5% over 2021, compared to the 4.8% increase proposed in August.
Kloiber said the change reflects an increase in the metro area fiscal disparities subsidy in 2022, which was determined after the initial required budget submission in August.
“As a result of this change, the average increase in the local taxpayer share of the 2022 tax levy will be 4.9% over 2021,” Kloiber said in a report. “In addition, this change provides the City with more flexibility to adapt to a likely reduction in the metro area fiscal disparities subsidy in 2023, allowing for ‘smoother’ annual changes in the local share of property taxes from 2021 through 2024.”
The council set the preliminary general fund levy at $12.8 million, the library levy at $1.1 million and the EDA levy at $255,500 for a total levy of $14.1 million.
Expenses for the preliminary general fund budget were set at $15.4 million, the library fund at $1.1 million, the capital projects funds at $2.8 million and the debt service funds at $1.5 million.
The City Council also approved the final 2022 HRA tax levy in the amount of $235,000.
The public Truth in Taxation hearing will be at 7 p.m. Monday, Dec. 13, at City Hall, 590 40th Ave. NE. The final 2022 property tax levy and budget will be approved after the public hearing.
The City Council unanimously approved the preliminary 2022 property tax levy and budget and approved the final HRA property tax levy Sept. 27.
The city’s preliminary property tax levy is up 2.97%, or about half a million dollars, over 2021, with a total preliminary levy of about $17.4 million. That doesn’t include the Housing and Redevelopment Authority Levy.
City staff estimates city property taxes for a median-value home assessed at $247,200 for 2022 (compared to $234,000 for 2021) will see city taxes increase by about $37, or 3.7%, to $1,025 for 2022, but many factors can affect individual tax bills.
The preliminary general fund budget was set at $19.6 million, an increase of about $1.1 million, or 5.8%, over 2021.
Daniel Tienter, the city’s director of finance and city treasurer, said general fund expenditures that are expected to increase in 2022 are personnel services, which are increasing by 7%, or almost $1 million; materials and supplies, which are up 0.4%, or $3,600; and other services and charges, which are increasing by 2%, or $67,900, over the 2021 budget.
The City Council also unanimously approved the city’s final HRA tax levy for 2022. Since 1996, the city’s HRA has levied a property tax to support its activities, specifically for various housing rehabilitation programs, Tienter said.
The HRA will levy $599,571 for 2022, the maximum allowed under state law and an increase of about $35,000 over 2021.
Tienter estimated a home valued at $247,200 would pay approximately $46 for the 2022 HRA property tax levy, and a commercial property valued at $1 million would pay approximately $185.
The city’s Truth in Taxation public hearing will be at 7 p.m. Monday, Dec. 13, at City Hall, 7071 University Ave. NE. The final property tax levy and budget will be approved Monday, Dec. 20.
Spring Lake Park
The City Council unanimously approved the preliminary 2022 property tax levy Sept. 7.
According to City Administrator and Treasurer Daniel Buchholtz, the preliminary property tax levy is set to increase 5.46% over 2021, for a total levy of approximately $3.8 million.
The total levy includes about $3.5 million for general revenue, $176,542 for the 2018A General Obligation Equipment Certificate and $80,000 for the 2014A General Obligation Improvement Bonds.
Buchholtz said the increase is due to several factors, including increases in employee salary and benefits, implementation of the compensation and classification study currently underway, mental health services for public safety employees and general inflationary increases.
The Truth in Taxation public hearing is set for 7 p.m. Monday, Dec. 6, at City Hall, 1301 81st Ave. NE. The final tax levy will be approved Monday, Dec. 20.