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2022 Preliminary Budget

Revised: Sept. 30, 2021 

The City Council reviewed the proposed 2022 city budget at a workshop meeting at 4 p.m. on Sept. 15, at the Public Safety facility's education and training conference rooms at 2100 Radio Drive.  At the workshop, the Council discussed city services and funding levels for 2022, as well as a variety of issues that impact the 2022 property tax levy.  

As part of the 2022 budget process, annual rate adjustments are considered to appropriately maintain funding levels for city services such as: emergency medical services (EMS), water and sewer utility, storm water utility, street lighting utility, and our city-run ice / field house arena and golf course. Since these public services are not funded by tax dollars, except for EMS which is partially funded by the tax levy, they are supported by rates and fees. Several rate increase considerations are included with the proposed 2022 budget and were presented to Council at the workshop meeting. 

The most significant rate consideration relates to increasing the water and sewer utility rates. The budget proposes a water administrative fixed fee increase of $1.00 per quarter and a $0.10 per 1,000 gallon increase to the water rate. A $1.20 per quarter city sanitary sewer flat rate increase is also proposed. The proposed increases are needed to fund the replacement and maintenance of water and sewer infrastructure based on the proposed capital improvement plan. Other increases include the pass-through of wastewater treatment cost from the Metropolitan Council Environmental Services.

Irrigation rates are proposed to increase $0.32 per 1,000 gallons. From 2017 through 2021, incremental irrigation rate increases were implemented to support the city's  of water conservation educational and incentive programs. This rate increase is a proposed continuation of those efforts.

The quarterly storm water utility charges are also proposed to increase $0.60 per quarter to support the funding of storm water pond maintenance programs and replacement of storm water infrastructure. 

 A four percent rate increase is proposed for Emergency Medical Services (EMS). Personnel costs, operational cost impacts due to the Coronavirus pandemic, and mandatory discounts from Medicare and Medicaid insurance programs factor into the proposed rate increase.

Lastly, no changes are proposed for street lighting utility rates.

These potential impacts were discussed in detail at the workshop meeting and any increases will be presented for approval at a Council meeting in December with the adoption of the 2022 Fee Ordinance.

Property Tax Levy
The preliminary 2022 total levy (including the HRA levy) is $41,979,773 and 5.5 percent above last year, which is above our 15-year historic average increase of 3.9 percent. With the growth in taxable market valuations and the derivative net tax capacity, the property tax levy impact to the median value home is 2.7 percent or $30 (see the Estimated Taxes Payable section below for more detail). The chart below illustrates how the preliminary 2022 property tax levy compares to previous years.

Preliminary Property Tax Levy Changes 2022

General Fund
The proposed budget reflects an increase of 13.4 percent in the General Fund, which is the primary operating budget of the city. For 2022, the General Fund budget is estimated to be $43,985,100. This compares to the $38,794,650 budget for 2021. A majority of the increase comes from the merging of the personnel and operational budgets for EMS with the General Fund Fire Division. EMS service costs, budgeted at $3,152,600 for 2021, were previously managed in a Special Revenue Fund. As proposed for 2022, the EMS Special Revenue Fund will continue to account for EMS specific revenue sources but will transfer funding to the General Fund to contribute to personnel and operational costs.

Property taxes at $30.8 million account for 70 percent of the General Fund revenues. This is an increase of $2,540,479 from the General Fund budget for 2021. Other sources of revenue include development and permit fees from new home and business construction, intergovernmental and miscellaneous revenues, charges for various services, and transfers from other funds.

2022 Expenditures - All Budgeted Funds
Total city expenditures for 2022 are estimated at $130,492,102. This includes the General Fund and all other city funds, such as the emergency medical services, water and sewer utility, storm water utility, Eagle Valley Golf Course, HealthEast Sports Center, and others. For more detail on any of the proposed budgeted funds, refer to the full budget document provided at the end of this narrative.

Fund Adopted 2021 Preliminary 2022
General $38,794,650 $43,985,100
Administration Fee $800,600 $801,300
Public Safety Training Center $138,664 $132,750
Public Safety Activities $168,000 $183,450
Emergency Medical Services $3,152,600 $2,439,000
Fire Relief Pension $460,000 $470,000
Housing and Urban Development (HUD) $828,668 $609,600
Economic Development Authority (EDA) $78,300 $78,700
Housing and Redevelopment Authority (HRA) $744,900 $1,313,900
Park Dedication $3,764,800 $798,100
Parks and Trails Replacement $1,185,000 $3,850,000
Capital Improvement $3,206,400 $6,436,000
M.S.A. Roadway Construction $10,730,000 $1,755,000
Street Reconstruction/Maintenance $6,053,350 $27,402,700
Tax Abatement Plan I-94 Region $1,500 $201,600
Water & Sewer Utility $12,969,514 $22,114,802
Storm Water Utility $2,129,961 $5,680,400
Street Lighting Utility $559,800 $559,800
HealthEast Sports Center Ice Arena / Field House $1,894,300 $2,895,800
Eagle Valley Golf Course $1,430,500 $1,485,900
Risk Management $1,896,200 $2,004,200
Debt Service Funds $9,815,000 $5,294,000
Total $100,802,707 $130,492,102


Levy and Taxes
City taxes on a residential parcel valued at $341,200 -- the median value for taxes payable in 2021 -- are estimated to increase $30 in 2022. This assumes the parcel experiences a 2.9 percent increase in estimated market value. 

Actual Taxes Payable 2021
  $291,500
Residential Value
Median 
Residential Value
$388,700 
Residential Value
$437,300 
Residential Value
Estimated market value $291,500 $341,200 $388,700 $437,300
Homestead value exclusion $(11,000) $(6,500) $(2,300)        -
Taxable market value $280,500 $334,700 $386,400 $437,300
Net city tax $929 $1,108 $1,279 $1,447

 

Estimated Taxes Payable 2022
  $300,000 
Residential Value
Median 
Residential Value
$400,000 
Residential Value
$450,000 
Residential Value
Estimated market value $300,000 $351,100 $400,000 $450,000
Homestead value exclusion $(10,200) $(5,600) $(1,200)        -
Taxable market value $289,800 $345,500 $398,800 $450,000
Net city tax $955 $1,138 $1,313 $1,482

 

Estimated Dollar Change
  $300,000 
Residential Value
Median 
Residential Value
$400,000 
Residential Value
$450,000 
Residential Value
Dollar Change                       $26 $30 $34 $35

City taxes constitute about 25 percent of the total property tax bill for Woodbury homeowners residing in the South Washington School District (amounts will vary somewhat for other school districts). It's important to note that market values, and thus taxes, do not increase or decrease the same for all properties. The net city tax may increase if a property has a market value increase due to improvements that add value, such as finishing a basement or adding a three-season porch.

Next Steps
An update will be provided on the preliminary budget and property tax levy at a Nov. 17 City Council workshop meeting. This allows Council the ability to ask additional questions and provide direction prior to the truth-in-taxation public meeting scheduled for the Dec. 8 City Council meeting at 7:30 p.m. The City Council also will adopt the property tax levy and budget for 2022 at the same Dec. 8 meeting.

More Information
The full proposed budget document will be available for view below, at City Hall (Finance Department front entrance assistance), and at the R.H. Stafford (Washington County) Library, 8595 Central Park Place, Woodbury. For more information, call the Finance Department at 651-714-3507 or send an email.

2022 Budget Workshop PowerPoint Presentation - Sept. 15, 2021

2022 Proposed Annual City Budget