The Fridley City Council on Sept. 25 unanimously authorized certifying the preliminary property tax levy and general fund budget for the 2018 fiscal year.
The council reviewed the general fund budget during previous work sessions before taking a vote.
State law required the city to certify a preliminary general fund budget and property tax levy to Anoka County by Sept. 30.
The operational levy for the City of Fridley makes up over 75 percent of the total city levy.
Furthermore, the city’s charter was recently modified.
“It went from a levy not to exceed the change in the percent CPI from 2015 and 2016,” said Fridley Director of Finance Shelly Peterson. “I believe that change is about 1.6 percent. That change is now to a levy not to exceed 5 percent of the priors year levy but may increase an additional three percent with the vote of four members of the council.”
If the charter is not successfully amended, the levy would be lowered to that 1.6 percent CPI and the budget would be reduced.
City staff presented a five percent levy to the city council. This will allow a balanced general fund budget.
“We also carried that five percent levy to our information technology fund and our Springbrook Nature Center fund,” said Peterson.
They are all portions of the operational levy.
The county will establish the debt service levy based on the city’s debt schedules.
The total tax levy for 2017 is $14,807,913 which amounts to a 4.86 percent increase in the tax levy.
With those five percent levy increases for the operational levy and the debt levy of 4.3 percent over last year, it amounts to a total increase of 4.86 percent.
The estimated impact on a median value residential home in Fridley will increase by $95 or 12.74 percent from 2017.
The cities final levy cannot be higher than the proposed levy.
“This is still preliminary,” said Peterson. “We still don’t have all the figures from the county yet,”
2018 General Fund Budget
Currently, the levy represents 66 percent of the General Fund revenue budget needed to support operations.
The City of Fridley is expecting revenues in $16,824,500. This amounts to a four percent increase over the prior revenue budgets.
The general fund budget provides funding for the day to day operations of the city. Personnel costs make up over 80 percent of the general fund expenditures.
“Nearly half of those expenditures are public safety,” said Peterson.
The total expenditures in the 2017 budget is expected to be $16,824,500.. This amount is a four percent increase over prior years.
The proposed budget may change as more information becomes available on anticipated revenue and expenditures.
Anoka County will send parcel specific tax estimates the week of Nov. 13.
On Nov. 27 the final levy and budget will be presented to council at which time the public will be allowed to comment. During the Dec. 11 meeting the council will adopt the final levy and budget which is due to Anoka County by Dec. 28.
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