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Financial Impact: The proposed 2019 Budget includes a proposed total citywide tax levy of <br />$9,513,110 for taxes payable in 2019. The proposed 2019 tax levy is an increase of $851,940. <br />The property tax impact on residents will vary depending on the property’s value and change in <br />value relative to other properties in the city. A medium value home’s market value in New <br />Brighton is estimated to increase 9% in 2019. The impact of the proposed property tax levy to <br />the medium valued home is shown below: <br />Noteworthy items representing the levy change includes $346,900 for the 2019 street <br />reconstruction project, a $202,800 decrease in street debt payments as well as continued <br />allocation of $100,000 in LGA funding for future street reconstructions and provide internal loan <br />funding to become debt free by 2025 per Council’s directive. Other noteworthy items include <br />new personnel of $139,000, costs to retain and recruit personnel of $444,300 that include COLA, <br />health care insurance contributions, the legislative police and fire PERA increase, and <br />comparable salary study position adjustments. <br />A “Turnover Ratio” is once again included in the 2019 budget. The City has historically <br />budgeted for all positions assuming they are filled 100% of the time. Due to normal turnover, <br />some positions are vacant for a period every year. To recognize that fact and develop a tighter <br />budget, $109,900 was placed into the 2019 proposed budget as a negative expenditure. <br />It is worth noting the State of Minnesota provides a number of property tax relief programs that <br />are designed to offset local tax increases. Depending on household income, residents could <br />potentially receive a partial refund of their increased taxes. This would effectively reduce the tax <br />impacts noted above. <br />Explanation: The 2019 Budget outlines key issues and financing strategies for our operations <br />during the year. The 2019 Budget components reflect the City Council adopted priorities: <br />financial sustainability, community engagement, economic development, effective service <br />quality, and workforce engagement and development. <br />__________________________ <br />Brenda Davitt <br />Director of Finance <br />Attachment: Resolution <br />2018 2019 2018 2019 $ Increase <br />242,400$ 264,500$ 842$ 927$ 85$ <br />Value of Home Estimated Tax Impact