DEPARTMENT: Budget
FILE TYPE: Regular Information
TITLE
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Discussion Of 2023 Budget And Maximum Proposed Property Tax Levy
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PURPOSE/ACTION REQUESTED
Discuss 2023 budget development status and implications for 2023 maximum proposed tax levy.
SUMMARY
On August 23, 2022, staff presented information at a County Board budget workshop on 2023 budget planning. As part of the workshop, staff presented four budget and tax levy scenarios, ranging from 0.0% to a 3.9% increase in the levy.
Key parameters and assumptions for 2023 planning, as discussed on August 23, 2022 include:
* Inflationary cost pressures on the current base (2022) level of activity and services are projected to add approximately $11.21 million of additional pressure on property tax revenues for 2023. These pressures also include previously committed costs and unavoidable cost pressures above a 2.0% inflationary increase.
* Additional adjustments to planning base to reduce levy pressure:
o Adjustment to annual vacancy savings (1.5% increase)
o Reductions to mileage, office support costs and printing to account for changing work environment
o Recognition of new revenues ($2.8 million)
* For taxes payable in 2023, the County property tax base will be approximately 16.23 percent higher than for taxes payable in 2022. In general, if the tax levy grows at any rate lower than 16.23 percent for 2023, the County tax rate will decrease. The net change in the County portion of the 2023 tax bill for individual properties will depend on the combination of the County tax rate and the change in value for the given property.
As part of the 2023 budget process, the County Board is required by State Statute to adopt a resolution setting the maximum proposed property tax levy on or before September 30, 2022. The Board is scheduled to adopt the maximum tax levy resolution at the September 20, 2022 County Board meeting.
RECOMMENDATION
recommendation
Staff will present the County Manager's recommendation ...
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