At its Sept. 8 meeting, the Maple Grove City Council adopted the 2021 proposed General Fund Budget, the proposed Road Reconstruction Fund Budget, the proposed General Obligation Capital Improvement Plan Budget, set a proposed tax levy for 2021 and set a budget hearing for Dec. 7, at 7:30 p.m.
In a staff report from Finance Director Steve Hauer, the council was presented with the proposed 2021 budget and tax levy. The council needs to adopt and certify the proposed tax levy for 2021 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 $42,898,000 for 2021, which is an increase of 2.87% over the 2020 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 69,264 in 2021. This is an increase of 0.69% percent from 2020 and a 1.71% increase from 2019.
The latest inflation estimate is 2% 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 2021.
The proposed tax levy for 2021 is $38,121,200 which is an increase of 2.64% over 2020.
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 $335,400 will see an increase or 3.10% over 2020. This breaks down to an increase of $0.52 a month for those homes with the average market value.
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