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2020 Preliminary Budget

Revised: Nov. 25 2019

The City Council reviewed the proposed 2020 city budget at a workshop meeting at 4 p.m. on Sept. 10, 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 2020, as well as a variety of issues that impact the 2020 property tax levy.

As part of the 2020 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 2020 budget and were presented to Council at the workshop meeting.

The most significant consideration was given to increasing the water and sewer utility rates. The budget is proposing a $0.05 per 1,000 gallon increase to the water rate and a $1.08 per quarter city sanitary sewer flat rate increase. Other increases include the pass-through of wastewater treatment cost from the Metropolitan Council Environmental Services and a safe drinking water test fee assessed through the Minnesota Department of Health. The test fee was last increased by the State in 2005.

Irrigation rates are proposed to increase $0.21 per 1,000 gallons based on a five year plan approved by City Council in 2016. This will be the fourth step increase of the five year plan.

The quarterly storm water utility charges are also being proposed to increase $0.58 per quarter to continue to fund the storm water pond maintenance program and replacement of storm water infrastructure. 

Lastly, there are no proposed changes for EMS and 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 2020 Fee Ordinance.

The preliminary property tax levy for truth-in-taxation purposes was adopted at the Sept. 25 City Council meeting. Recently at the Nov. 20 City Council workshop, Council gave direction to move forward with the adopted preliminary property tax levy. Also, expenditure revisions were presented for several funds based on current estimates for project costs and services plus other reclassifications and adjustments. The charts and tables below have been updated from the Nov. 20 Council workshop meeting and the full proposed budget document, as presented at the Sept. 10 workshop, may be different than the information prepared below. The link to the proposed 2020 budget is available at the bottom of this page.

Property Tax Levy
The proposed 2020 total levy (including the HRA levy) is $37,914,972 or 6.04 percent above last year, which is above our 15-year historic average increase of 4.5 percent. Included is a proposed levy of $500,000 to fund the new Parks and Trails Replacement Fund using $255,745 from expiring debt levies with the balance of $244,255 being an addition to the property tax levy. Excluding the new Parks and Trails Replacement Fund tax levy, the increase would be 4.6 percent which is in-line with the 4.5 percent historic average. The chart below illustrates how the proposed 2020 property tax levy compares to previous years.

Preliminary Property Tax Levy Changes 2020

General Fund
The proposed budget reflects an increase of 5.5 percent in the General Fund, which is the primary operating budget of the city. For 2020, the General Fund budget is estimated to be $37,674,650. This compares to the $35,701,950 budget for 2019.

Property taxes at $26.4 million account for 70 percent of the General Fund revenues. This is an increase of $1,589,507 from the General Fund budget for 2019. 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.

2020 Expenditures - All Budgeted Funds
Total city expenditures for 2020 are estimated at $100,222,347. 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. New for 2020 is the proposed Parks and Trails Replacement Special Revenue Fund created for developing a program for parks and trail future asset replacement liabilities. Also, three capital project funds have been added: Municipal State Aid Roadway Construction, TIF District 13, and TIF District 15. These funds have been included to improve transparency and inter-departmental/fund financial planning processes. 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 2019 Preliminary 2020
General $35,701,950 $37,674,650
Public Safety Training Center $174,562 $208,715
Administration Fee $600,250 $620,250
Public Safety Activities $271,900 $276,800
Emergency Medical Services $3,546,300 $3,136,900
Fire Relief Pension $430,000 $440,000
Housing and Urban Development (HUD) $529,730 $553,011
Economic Development Authority (EDA) $78,100 $228,200
Housing and Redevelopment Authority (HRA) $670,500 $766,600
Park Dedication $1,267,300 $544,700   
Community Investment $150,000          -
Capital Improvement $4,741,800 $5,013,000
M.S.A. Roadway Construction         n/a $19,132,131
TIF District 13-Quarry Ridge Senior Housing         n/a $108,000
TIF District 15         n/a $1,500
Tax Abatement Plan I-94 Region           - $1,500
Street Reconstruction/Maintenance $14,929,100 $4,035,500
Water & Sewer Utility $14,019,150 $14,010,922
Storm Water Utility $3,318,280 $2,257,268
Street Lighting Utility $548,400 $559,800
HealthEast Sports Center Ice Arena / Field House $1,410,850 $1,780,300
Eagle Valley Golf Course $1,473,800 $1,464,900
Risk Management $1,895,100 $1,762,700
Debt Service Funds $7,015,000 $5,645,000
Total $92,772,072 $100,222,347


Levy and Taxes
City taxes on a residential parcel valued at $312,600 -- the median value for taxes payable in 2019 -- are estimated to increase $30 in 2020. This assumes the parcel experiences a 4.7 percent increase in estimated market value. 

Actual Taxes Payable 2019
  $238,800
Residential Value
Median 
Residential Value
$334,300 
Residential Value
$429,800 
Residential Value
Estimated market value $238,800 $312,600 $334,300 $429,800
Homestead value exclusion $(15,700) $(9,100) $(7,200)        -
Taxable market value $223,100 $303,500 $327,100 $429,800
Net city tax $760 $1,035 $1,114 $1,464

 

Estimated Taxes Payable 2020
  $250,000 
Residential Value
Median 
Residential Value
$350,000 
Residential Value
$450,000 
Residential Value
Estimated market value $250,000 $327,400 $350,000 $450,000
Homestead value exclusion $(14,700) $(7,800) $(5,700)        -
Taxable market value $235,300 $319,600 $344,300 $450,000
Net city tax $784 $1,065 $1,147 $1,499

 

Estimated Dollar Change
  $250,000 
Residential Value
Median 
Residential Value
$350,000 
Residential Value
$450,000 
Residential Value
Dollar Change                       $24 $30 $33 $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
A truth-in-taxation public meeting is scheduled for the Dec. 11 City Council meeting at 7:30 p.m. The City Council also will adopt the property tax levy and budget for 2020 at the same Dec. 11 meeting.

More Information

The full proposed budget document, as presented at the Sept. 10 workshop meeting, may be viewed below, in the Finance Department at City Hall, and at R.H. Stafford (Washington County) Library, 8595 Central Park Place, Woodbury. For more information, call the Finance Department at 651-714-3500 or send an email to: finance@woodburymn.gov.

2020 Budget Workshop PowerPoint Presentation - Sept. 10, 2019

2020 Proposed Annual City Budget