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HomeMy WebLinkAbout2.b. 2022 Budget Preliminary Check In EXECUTIVE SUMMARY City Council Work Session: July 6, 2021 AGENDA ITEM: Preliminary Update on Draft 2022 Budget AGENDA SECTION: Discussion PREPARED BY: Logan Martin, City Administrator Teah Malecha, Finance Director AGENDA NO. 2.b. ATTACHMENTS: None APPROVED BY: LJM RECOMMENDED ACTION: Receive update on status of draft 2022 Budget and provide staff direction on needed modifications. BACKGROUND City Staff has been working to prepare the draft 2022 Budget over the last few months. All departments have submitted initial proposals, and staff has reviewed each proposal with departmental leadership. Retired Finance Director Jeff May was able to complete a majority of the budget prior to his departure, and incoming Finance Director Malecha is getting acquainted with the document now to support the next steps of the process. The unease created by the pandemic and economic impact it had was at the forefront while staff crafted budget requests. Fortunately, the local economy remains strong thanks to consistent housing growth and increasing property values. The City’s 2022 Tax Capacity Value is preliminarily increasing by 5.62%, and our median valued home is increasing by 4.36%. Rosemount’s Tax Capacity increase is the 3rd highest in the County for 2022. The City added over $93 million in new construction value last year, the 2nd highest amount in the County. The current draft of the Budget reflects a 5.61% levy increase, which equates to a $54 increase on a median valued home that sees a 4.36% value increase from 2021. A few key factors remain as additional drafts of the Budget are completed, and staff will continue to review and refine both revenues and expenditures in the weeks to come. At the July 6 work session, staff will provide a brief verbal overview of current status of the 2022 Budget. A full presentation of departmental information and response from the Council will occur at the August work session. RECOMMENDATION Staff requests the City Council receive an update on the 2022 Budget and provide direction on any needed modifications to the draft 2022 Budget.