Rosemount City Council discussed the preliminary draft 2020 budget during the July 2 work session.
The preliminary budget shows a 4.86% increase to the city's operating budget and a potential 4.5% increase or $555,004 in the property tax levy.
Rosemount Finance Director Jeff May and City Administrator Logan Martin met with department leaders to review budget proposals and discuss the costs and benefits of each proposal.
Martin said the potential tax levy impact on a median-value home in Rosemount is about $39 per year.
The city's tax rate is projected to be reduced by 37.9% compared to 39.3% in 2017.
In 2020, the median-valued home in Rosemount is estimated to be $295,900. This reflects a 6.71% value growth compared to last year's median-valued home.
Martin said this is the fourth-highest value for a median-valued home in Dakota County.
Rosemount's tax base or tax capacity value on the preliminary budget is slated to increase by 7.91% for 2020 - a total increase of $2,510,001 to the city's taxable value. In 2019, the city's tax base increased by 7.32%.
From 2008 to 2020, Rosemount's tax capacity or value has grown by 27.48% or $7,582,306 - the second-largest value in Dakota County.
The non-tax levy revenues are projected to decrease by 2.65% in 2020 due to the large reduction in a one-time transfer of the enterprise funds in 2019 for the water tower reconditioning project.
May said that beyond that irregularity, revenues are projected to increase. Staff takes a conservative approach to projecting revenues in order to not rely on those too heavily because of uncontrollable factors.
The draft reports when large residential or commercial projects are completed within the city, revenues received will outpace the estimates that city staff anticipates.
The city's revenue forecast is based on a target goal of 250 new units of housing in 2020.
In the community development department, there is an increase in salaries and benefits of $45,000 due to the new economic development coordinator position that will soon be announced.
Rosemount Police Department called for a decrease or $10,500 for the annual fee for Dakota County Communications.
In public works, there are projected decreases in the long-term building maintenance program funding of about $35,000 when compared to the 2019 budget and this was to account for a future new public works facility. The decreased amount in savings can be tracked to contracted services for maintenance on the leased vehicles and on the fleet maintenance program, along with the decrease in funding for preventative maintenance needs.
Due to the implementation of a street light utility fund, there will be a potential cost savings in 2020 in the amount of $177,000 when compared to the 2019 public works budget.
City parks maintenance department requested an increase of $90,000 to hire one full-time position. There is decreased funding savings of $80,000 due to taking out the long-term parks maintenance plan.
There is a request for an additional $18,000 increase from the Rosemount Port Authority budget in 2020 to cover additional marketing opportunities.
This 2020 draft budget is preliminary and all the details will be negotiated by Rosemount City Council during future work sessions.
The final 2020 budget will be formally adopted in December.