2022 City of Burnsville Budget
Just like any household or business utilizing smart financial planning, the City of Burnsville sets an annual budget to make sure we meet community needs for a vibrant, welcoming city. This includes a focus on important services such as police, fire/emergency response, streets and parks.
Within the planning process, the budget is divided into two categories: the Operating Budget and the Capital Budget. As a service organization, we place a high value on city services and the qualified staffing needed to create and maintain our high standards of service for a safe and thriving community. Personnel is the largest expenditure at 74% of our Operating Budget which is primarily funded through property taxes along with other sources of income.
The Capital Budget covers major city improvements such as roads, buildings and other infrastructure, and is primarily funded by state and federal grants.
A closer look at your tax dollars at work...
Working together to serve the needs of the community for a vibrant city, boldly leading and welcoming to all.
What is a Property Tax Levy?
A property tax levy increase does not directly equate to an increase in property taxes. Property taxes are impacted by multiple factors including changes in residential and commercial property values, the amount of new construction coming on the tax rolls, property class rates and taxes imposed by other entities.
The City receives approximately 34% of your property tax. Your school district, the county and other agencies receive the rest.
One of the key components of yearly budget planning is to establish a max property tax levy increase. This percentage is the most the city portion of your property taxes can increase by. As the budget process continues, that amount can be lowered but not raised.
A Strong Foundation Supports Healthy Growth
A projected tax levy increase of 9.7% is needed to maintain the current level of our people-first policy. This amount keeps the house standing but doesn't help fund new initiatives or address pressures of a growing community such inflation, elections, inclusion and belonging efforts, business support grants and community engagement initiatives.
This would equal to an investment of $3.52 per day from the median homeowner. The levy is essential for the City to continue to provide clean water and safety services for its citizens, as well as functioning roads and accessible trails for everyone to enjoy together.
To break down the increase in the budget, 7.4% is expected to fund current services, which is split between the wages and benefits of staff (4%) and the current operating expenses (.6%). The remaining 2.8% is to replenish the fund balance used for operations in 2021 due to challenges from the pandemic.
The additional 2.3% of the projected tax levy increase is dedicated to capital and debt service (similar to a home improvement loan taken to fund a large scale remodeling project or repair plumbing).
So now the challenge in front of City Council and Staff is how to balance those increased financial needs with minimal impact to taxpayers...
What does a property tax levy increase really look like?
Preliminary Scenario 1:
Median Home Value Monthly Increase with 9.7% Levy increase =
$5.26 due to levy increase | $11.59 due to levy increase plus change in market value
Preliminary Scenario 2:
Median Home Value Monthly Increase with 4.6% Levy increase =
$0 due to levy increase | $5.99 due to levy increase plus change in market value
Burnsville City Council and Staff are currently looking for ways to reduce that needed 9.7% levy increase by supplementing the budget with funds from the American Rescue Plan Act (ARPA) based on community feedback.
City Council Budget Discussions
The public is invited to attend any or all of the meetings where the Council discusses the budget. All meetings are held at Burnsville City Hall and will be shown live and replayed on BCTV Ch. 16/HD Ch. 859 and streamed online. City Council meetings begin at 5:30 p.m.
May 11 City Council Work Session: Budget Basics, Valuation & Tax Capacity Presentation
What's important to you?
In a public poll earlier this year, we asked our community members where they would like to see the City make investments through the funds provided by the American Rescue Plan Act (ARPA) based on the Council Strategic Priorities of Safety, Community Engagement, Community Development, Sustainability, Transportation & Infrastructure and Organizational Services.
Key Finding: These community survey results show that all priority areas need to work together to complete the Council's vision.
- Safety = 16.8%
- Community Engagement = 9.7%
- Community Development = 15.8%
- Sustainability = 22.7%
- Transportation & Infrastructure = 19.7%
- Organizational Services = 15.4%
A look at various budget scenarios...
The blue path shows the results of using $2M in ARPA Revenue Recovery Funds for one year. This results in a significantly higher levy increase in 2023 and causes extreme fluctuations in levy increases over five years.
The green path shows the results of using $2M in ARPA Revenue Recovery Funds annually for three years. This results in a lower levy increase in 2023 and evens out levy increases over 5 years. This option also leaves $2M available which could be used for business grants or other projects in the next five years.
The teal path shows the results of using $2M in ARPA Revenue Recovery Funds as well as Fund Balance annually for three years. This results in even levy increases over five years.
The lime path also shows the results of using $2M in ARPA Revenue Recovery Funds as well as Fund Balance annually for three years but with additional budget refinements. This results a slightly smaller levy increase for 2022 and even increases over the following four years.
The City’s budget reflects the priorities of the City Council and community. As we build community and organizational health, the value of the community’s investment in the services provided. We believe a healthy community and organization starts with our taxpayers understanding their investment, and more importantly the value of that investment in their daily lives.
Upcoming Discussions and Timeline:
- Tuesday, Sept. 21: Consider adoption of the maximum property tax levy
- Tuesday, Oct. 26: Department presentations at City Council Work Session
- Tuesday, Nov. 9: City Council Work Session on the 2022 Budget and Capital Improvements Plan
- Tuesday, Dec. 7: Council adopts final tax levies and budget
All City Council meetings begin at 5:30 p.m., are cablecast live and replayed on Burnsville Civic Television Channel 16/HD859 (for cable subscribers) and streamed online at www.burnsvillemn.gov/meetings.
Residents are invited to join our 2022 budget planning journey as we grow toward organizational and community health.