City Council Special Meeting

CITY COUNCIL SPECIAL MEETING MINUTES Tuesday, August 30, 2022 at 6:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 7:00 p.m. ROLL CALL Mayor Darrel Olson and Council Members Connie Lyscio, Zach Tabatt, and Mark Cross were present. Council Member John Ward was absent. City Administrator Brad Chapulis, Community Development Director Josh Doty, Finance Director Jeremy Vacinek, Police Chief Jim Exsted, IT/GIS Director Todd DeBoer, Assistant Finance Director Brenda Brooks were present. PRESENTATIONS 1. 2023 Governmental Funds Budget Work Session Finance Director Vacinek presented the budget presentation. There are no levy limits for the 2023 budget. The total proposed property tax levy required to fund the initial draft budget is $8,654,500, a $915,500 increase from 2022 (11.8% overall increase). Of the total proposed levy, the debt service levy of $1,076,000 is unchanged from 2022. The operating levy of $7,578,500, $915,500 increase from 2022. Administration removed $775,000 from department requested budgets. The total estimated market value as reported on the 2022 Spring Mini-Abstract for pay in 2023 is $1,325,568,300 for existing property. The estimated change in total estimated market value is 21.82%, which is mainly residential. For 2023 the estimated market value increase for new construction is 68% residential and 29% commercial/industrial. The 2022 Spring Mini-Abstract for pay 2023 shows approximately $96,719 in new estimated tax capacity. Adjusting for TIF districts, the estimated net tax capacity is $88,661. Based on the current tax capacity rate, an additional $51,006 of revenue would be generated. Finance Director Vacinek summarized highlights of expenditures and revenues for the general fund, cemetery, community development, capital parks, economic development, lodging, tax increment financing, sales tax, capital equipment, collector street fund, street replacement fund, and trail construction and maintenance fund. Staff is continuing to work through the market wage study. Health insurance is increasing approximately 10% for next year. These two items account for about 75% of the proposed budget increase. The council discussed levy increase of around 5% or near inflation, postponing public works vehicle replacement purchases, and the relationship between valuations and the tax rate. Mayor Olson asked the council to bring some recommendations for budget reductions to the next council meeting. 8/30/2022 City Council Special Meeting Minutes Page 2 ADJOURN MOTION Council Member Tabatt, seconded by Council Member Lyscio to adjourn at 7:19 p.m. Motion unanimously carried. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator