HomeMy WebLinkAbout09.03.24 Work Session Packet
AGENDA
Council Work Session
Meeting
5:30 PM - Tuesday, September 3, 2024
Farmington City Hall, Conf Room 170
Page
1. CALL TO ORDER
2. APPROVE AGENDA
3. DISCUSSION ITEMS
3.1. Proposed 2025 Preliminary Budget
Review the information on the proposed preliminary 2025 budget and
provide City Staff with guidance on any further amendments.
Agenda Item: Proposed 2025 Preliminary Budget - Pdf
2 - 4
4. CITY COUNCIL COMMITTEE UPDATE
5. CITY ADMINISTRATOR UPDATE
6. ADJOURN
Page 1 of 4
COUNCIL WORK SESSION AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kim Sommerland, Finance Director
Department: Finance
Subject: Proposed 2025 Preliminary Budget
Meeting: Council Work Session - Sep 03 2024
INTRODUCTION:
An update is being provided to the proposed 2025 preliminary budget and tax levy.
DISCUSSION:
Since the last work session in August, staff received updated information from Dakota County that
the City's fiscal disparities distribution is increasing by more than $317,000. While the increase
does not impact the gross levy, it does reduce the increase in the net levy, the amount actually paid
by taxpayers, from 8.6% to 6.3%. Below is a summary of the revised proposed general fund budget
and levy as a result of the change in fiscal disparities.
BUDGET IMPACT:
The update in fiscal disparities affects only the revenue source used to fund operations; it does not
impact the expense budget.
ACTION REQUESTED:
Review the information on the proposed preliminary 2025 budget and provide City Staff with
guidance on any further amendments.
Page 2 of 4
ATTACHMENTS:
Proposed 2025 Preliminary General Fund Budget Summary and Property Tax Levy
Page 3 of 4
2023
Budget
2024
Budget
2025
Proposed
Budget Change
%
Non-Property Tax Revenues
Licenses and Permits 915,470 779,050 843,765 8.31%
Intergovernmental Revenue 623,320 769,110 846,310 10.04%
Charge for Service 605,919 729,930 835,288 14.43%
Fines and Forfeitures 55,000 55,000 57,500 4.55%
Investment Income 51,000 10,000 74,300 643.00%
Miscellaneous 48,410 63,100 62,100 (1.58)%
Transfers In 1,497,734 2,284,510 1,792,306 (21.55)%
Total Revenues 3,796,853 4,690,700 4,511,569 (3.82)%
Expenditures
Administration 1,159,523 1,406,345 1,400,995 (0.38)%
Human Resource 401,235 439,839 458,930 4.34%
Dakota Broadband 45,500 0 0 0.00%
Finance and Risk Mgmt 848,407 968,120 1,100,969 13.72%
Police 5,664,569 6,203,145 6,344,195 2.10%
Fire 1,742,006 1,795,783 2,066,829 15.09%
Community Development 1,239,709 1,446,254 1,404,093 (2.92)%
Engineering 814,743 989,680 986,001 (0.37)%
Municipal Services 1,716,574 1,980,327 2,167,958 9.47%
Parks and Recreation 1,610,495 1,785,914 1,900,810 6.43%
Transfers Out/Unallocated 1,642,022 1,869,000 2,002,000 7.70%
Total Expenditures 16,884,783 18,884,407 19,832,780 5.02%
Revenues Over (Under) Expenditures (13,087,930) (14,193,707) (15,321,211) 7.94%
Operating Levy 13,087,930 14,193,707 15,321,211 7.94%
EDA Levy 0 150,000 250,000 66.67%
Debt Levy
Bonds 1,903,565 1,667,100 1,685,854 1.12%
2005C Loan Repay-Storm Water Tr Adv 166,000 96,000 49,000 (48.96)%
Total Debt Levy 2,069,565 1,763,100 1,734,854 (1.60)%
Gross Levy 15,157,495 16,106,807 17,306,065 7.45%
Fiscal Disparities 2,407,636 2,098,009 2,415,550 15.14%
Farmington Net Tax Levy 12,749,859 14,008,798 14,890,515 6.29%
Net Tax Capacity 29,697,452 31,083,139 31,052,398 -0.10%
Tax Rate on Tax Capacity 42.933%45.069%47.953%6.40%
Average Home Taxable Market Value 339,312 351,468 345,450 -1.71%
Estimated Annual City Taxes 1,457 1,584 1,657 4.58%
City of Farmington
Summary Budget and Tax Levy
2023 Budget, 2024 Budget and 2025 Proposed
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