At its Sept. 3 meeting, the Maple Grove City Council adopted the 2020 proposed General Fund Budget, the proposed Road Reconstruction Fund Budget, the proposed General Obligation Capital Improvement Plan Budget, set a proposed tax levy for 2019 and set a budget hearing for Dec. 2, at 7:30 p.m.

In a staff report from Finance Director Steve Hauer, the council was presented with the proposed 2020 budget and tax levy. The council needs to adopt and certify the proposed tax levy for 2020 by Sept. 30.

The council has the ability to reduce, but not increase, the proposed levy when the final budget and tax levy is adopted in December.

Hauer’s report showed the proposed general fund budget totals $41,701,900 for 2020, which is an increase of 3.27% over the 2019 budget. The budget proposal is the result of a number of factors. The city continues to see a growth in population. Estimates put the city’s population at 68,185 in 2020. This is an increase of 0.90% percent from 2019 and a 1.92% increase from 2018.

The latest inflation estimate is 2.27% for the 12 months ending May 31.

The staff report showed growth for new commercial/industrial property is expected to be between .30% and .60% of the taxable market value. The property tax levy continues to be the main source of revenue for funding the daily operations of the city and provides about 84% of the expected revenues needed to operate the city in 2020.

The proposed tax levy for 2020 is $37,206,600, which is an increase of 1.68% over 2019.

The road reconstruction levy is needed to finance the city’s 50% portion of the road rehabilitation program.

The impact of the tax levy on residential homes is estimated every year by staff. Homes with market values of $323,800 will see a $3.82 decrease over 2019. This breaks down to a decrease of $0.32 a month for those homes with the average market value.

“Thank you Mr. Hauer for you and your staff’s on this budget,” Mayor Mark Steffenson said. “I know that you’ve worked hard, and we’ve worked hard.”

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