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2021 Preliminary Budget

Revised: Nov. 19, 2020 

The City Council reviewed the proposed 2021 city budget at a workshop meeting at 4 p.m. on Sept. 16, 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 2021, as well as a variety of issues that impact the 2021 property tax levy.  

As part of the 2021 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 2021 budget and were presented to Council at the workshop meeting. Due to the financial impact of COVID-19 on the Parks and Recreation enterprise funds for the city run ice / field house arena and golf course, the City Council will review these proposed budgets at the Nov. 18, 2020 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 $2.00 per quarter and a $0.20 per 1,000 gallon increase to the water rate. A $1.13 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. 

Irrigation rates are also proposed to increase $0.23 per 1,000 gallons based on a five year plan approved by City Council in 2016. This will be the final step increase of the five year plan intended to improve water conservation.

The quarterly storm water utility charges are also proposed to increase $0.62 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 2021 Fee Ordinance.

The preliminary property tax levy for truth-in-taxation purposes was adopted at the Sept. 30 City Council meeting. Recently at the Nov. 18 City Council workshop, Council gave direction to move forward with the adopted preliminary property tax levy. Also, expenditure and revenue 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. 18 Council workshop meeting and the full proposed budget document, as presented at the Sept. 16 workshop, may be different than the information prepared below. The link to the proposed 2021 budget is available at the bottom of this page.

Property Tax Levy
The preliminary 2021 total levy (including the HRA levy) is $39,785,454 or 4.9 percent above last year, which is slightly above our 15-year historic average increase of 4.2 percent. The chart below illustrates how the preliminary 2021 property tax levy compares to previous years.

Preliminary Property Tax Levy Changes 2021

General Fund
The proposed budget reflects an increase of three percent in the General Fund, which is the primary operating budget of the city. For 2021, the General Fund budget is estimated to be $38,794,650. This compares to the $37,674,650 budget for 2020.

Property taxes at $27.8 million account for 72 percent of the General Fund revenues. This is an increase of $1,477,500 from the General Fund budget for 2020. 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.

2021 Expenditures - All Budgeted Funds
Total city expenditures for 2021 are estimated at $100,860,507. 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 2020 Preliminary 2021
General $37,674,650 $38,794,650
Administration Fee $620,250 $800,600
Public Safety Training Center $208,715 $138,664
Public Safety Activities $276,800 $168,000
Emergency Medical Services $3,136,900 $3,152,600
Fire Relief Pension $440,000 $460,000
Housing and Urban Development (HUD) $553,011 $828,668
Economic Development Authority (EDA) $228,200 $78,300
Housing and Redevelopment Authority (HRA) $766,600 $744,900
Park Dedication $544,700 $3,764,800
Parks and Trails Replacement $       - $1,185,000
Capital Improvement $5,013,000 $3,206,400
M.S.A. Roadway Construction $19,132,131 $10,730,000
Street Reconstruction/Maintenance $4,035,500 $6,053,350
Tax Abatement Plan I-94 Region $1,500 $1,500
TIF District 13-Quarry Ridge Senior Housing $108,000 $125,300
TIF District 15-Valley Creek Redevelopment $1,500 $1,500
Water & Sewer Utility $14,010,922 $12,969,514
Storm Water Utility $2,257,268 $2,129,961
Street Lighting Utility $559,800 $559,800
HealthEast Sports Center Ice Arena / Field House $1,780,300 $1,894,300
Eagle Valley Golf Course $1,464,900 $1,430,500
Risk Management $1,762,700 $1,896,200
Debt Service Funds $5,645,000 $9,746,000
Total $100,222,347 $100,860,507


Levy and Taxes
City taxes on a residential parcel valued at $327,400 -- the median value for taxes payable in 2020 -- are estimated to increase $41 in 2021. This assumes the parcel experiences a 4.2 percent increase in estimated market value. 

Actual Taxes Payable 2020
  $240,000
Residential Value
Median 
Residential Value
$335,900 
Residential Value
$431,900 
Residential Value
Estimated market value $240,000 $327,400 $335,900 $431,900
Homestead value exclusion $(15,600) $(7,800) $(7,000)        -
Taxable market value $224,400 $319,600 $328,900 $431,900
Net city tax $749 $1,065 $1,097 $1,439

 

Estimated Taxes Payable 2021
  $250,000 
Residential Value
Median 
Residential Value
$350,000 
Residential Value
$450,000 
Residential Value
Estimated market value $250,000 $341,200 $350,000 $450,000
Homestead value exclusion $(14,700) $(6,500) $(5,700)        -
Taxable market value $235,300 $334,700 $344,300 $450,000
Net city tax $779 $1,106 $1,138 $1,487

 

Estimated Dollar Change
  $250,000 
Residential Value
Median 
Residential Value
$350,000 
Residential Value
$450,000 
Residential Value
Dollar Change                       $30 $41 $41 $48


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. 9 City Council meeting at 7:30 p.m. The City Council also will adopt the property tax levy and budget for 2021 at the same Dec. 9 meeting.

More Information
The full proposed budget document, as presented at the Sept. 16 workshop, may be viewed 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 651-714-3504 or send an email to: finance@woodburymn.gov.

2021 Budget Workshop PowerPoint Presentation - Sept. 16, 2020

2021 Proposed Annual City Budget