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12-13-2022 TNT Council AgendaRICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS DECEMBER 13, 2022 6:00 PM Call to order PUBLIC HEARINGS 1.Conduct a truth in taxation public hearing regarding the 2023 property tax levy and 2022 Revised/2023 Proposed Budget and proposed 2023 utility rates. Staff Report No. 188 2. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. AGENDA SECTION:PUBLIC HEARINGS AGENDA ITEM #1. STAFF RE P ORT NO. 188 CIT Y COUNCIL ME E T ING 12/13/2022 RE P O RT P RE PA RE D B Y: K umud Verma, F inance Manager D E PA RTME NT D IRE C TO R RE V IE W: O THE R D E PA RTM E NT RE V IE W: C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager 12/7/2022 I T E M F O R C O UNC IL C O NS ID E RAT I O N: Conduct a truth in taxation public hearing regarding the 2023 property tax levy and 2022 Revised/2023 Proposed Budget and proposed 2023 utility rates. E X E C UT IV E S UM M ARY: At the September 13, 2022 City Council meeting the City Council adopted the 2023 preliminary property tax levy and announced December 13 at 6:00 p.m. as the date and time for the statutory truth in taxation public hearing. Hennepin County has mailed the proposed 2023 property tax statements to property owners in Richfield, which are based upon the proposed levy and announce the date of the public hearing. RE C O M M E ND E D AC T I O N: Conduct and close the truth in taxation public hearing and by motion: schedule final action on the 2023 property tax levy and 2022 Revised/2023 Proposed Budget and proposed 2023 utility rates, for the regular City Council meeting of December 13, 2022. B AS IS O F RE C O M M E ND AT I O N: A.H IS TOR IC AL C ON T E X T None B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): Counties, cities over 500 population, school districts, and metropolitan special taxing districts are required to hold a single meeting which the public is allowed to speak and the budget and levy is discussed. This meeting may be part of a regularly scheduled meeting but must occur after 6:00 p.m. Minnesota Statutes mandates that the truth in taxation public hearing must be conducted between November 25 and December 28, 2022. The City has chosen to conduct the truth in taxation meeting on December 13, 2022 at 6:00 p.m. The requirement to publish a notice of a Truth in Taxation hearing and proposed property tax levy is no longer required. C.C R IT IC AL T IMIN G IS S U E S: Schedule the final adoption action for the 2022 Revised/2023 Budget and tax levy and utility rates for December 13, 2022. The City must adopt their final payable 2023 property tax levies and their proposed 2023 budgets no later than December 28, 2022. D.F IN AN C IAL IMPAC T: The preliminary gross tax levy for taxes payable 2023 is $26,784,573. The gross tax levy represents a 6.60% increase from the 2022 gross levy. The City’s tax capacity rate is anticipated to decrease from 53.680% to 51.659%. I ncluded in the 2023 preliminary gross levy is a levy to fund the purchase of rolling stock and technology equipment of $868,400, a levy to fund the Economic Development Authority of $579,096, and a debt service levy of $4,100,600. E.L E GAL C ON S ID E R AT ION: The City has scheduled December 13, 2022 for the TNT hearing and for the official adoption of the final levy and budget. Final adoption of the payable 2023 property tax levies must be completed by December 28, 2022. ALTE R N AT IV E R E C O MME N D ATIO N(S): None P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: N/A