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The Coon Rapids City Council unanimously approved the 2023 property tax levy and budget Dec. 6 following a Truth in Taxation public hearing at which no one spoke.
The citywide tax levy totaling $33.314 million is 7.5% higher than the 2022 amount of $30.099 million, but at an August work session it was reduced by the council from the original staff proposal of a 9.06% levy hike.
Finance Director Ashley Hansen said the city tax on an average value home in Coon Rapids increasing in value 19.1% from $244,500 to $291,200, will jump 11.8% from $882 to $986.
“Residential property values have gone up close to 20% citywide,” Hansen said.
And with the large property value increases, the amount of state homestead exclusion which lessens the tax impact, has gone down.
In the example Hansen gave the council, the homestead exclusion dipped 27.6% from $15,239 to $11,032.
According to the tax levy resolution, $26.391 million is allocated to the general fund, $2.030 million to capital projects and $4.893 million to debt service, which includes $1.184 million in debt payment for the $17.4 million park bond referendum approved by voters in November 2013.
Debt service costs have been reduced by using adequate fund balances and reserves to make a portion of principal and interest payments on three outstanding general obligation bond issues.
General fund expenditures are $37.782 million for 2023 with $4.690 million going to general government, $20.94 million to public health and safety, $2.185 million to community and recreation services, $2.302 million to community development and $7.663 million to maintenance services. This compares with $35.573 million in the amended 2022 budget.
In his presentation at the public hearing, City Manager Matt Stemwedel said the focus of the budget is core services: Police, fire, infrastructure and parks, while being fiscally responsible.
But it has been a challenging budget year because of the loss of $1.2 million in state Local Government Aid after the 2022 Legislature failed to pass a tax bill — plus the impact of inflation, Stemwedel said.
Fuel costs have increased $110,000 and utilities by $215,000, supply costs have gone up, while wage pressures have been very high, particularly in the police department where the city has strived to stay competitive, and state law changes have increased the city’s workers compensation costs, Stemwedel said. Overall staffing has been reduced and vacant positions will be left open to cut costs.
Budget highlights include: A full-time mental health professional in the police department to partner with officers responding to mental health issues; substance use and homelessness using funds received by the city from lawsuit settlements with opioid distributors. This had been a part-time position shared with Blaine Police Department in a pilot project, but both will now have full-time employees; completing construction and equipping new Fire Station 3, which will replace the existing fire station in a new location; proposed construction of a new water tower at Coon Rapids and Foley boulevards to replace the existing water tower on Foley near Northdale Boulevard. Seventy percent of the cost, $3.15 million, is included in the 2023 budget, Stemwedel said.
Funding totaling $100,000 to begin the design phase of a redevelopment project at Al Flynn Park, one of the oldest in the city; Capital equipment purchases that include $450,000 to replace six police vehicles, $340,000 for a new dump truck and $200,000 for a new sidewalk machine with plow; Reconstruct 4.5 miles of city streets and carry over a $1.6 million trail improvement project from 2022 to 2023 using park bond issue funds.
Council Member Brad Greskowiak said the budget was a “good bang for the buck.”
Council Member Brad Johnson said the budget document is excellent and easy to read, “well done.”
The council, sitting as the Housing and Redevelopment Authority, adopted a 2023 tax levy of $725,000. This is consistent with the amount levied in previous years.
SOURCE: Hometown Source
