2024 Budget Update: Truth-in-Taxation
On August 14 and on September 11, the City Council held work sessions to discuss the preliminary 2024 General Fund operating budget and property tax levy. The City Council adopted a 2024 preliminary budget and property tax levy at its September 25 meeting. The City then certified the 2024 property tax levy to Hennepin County in late September. In November, the County will send Truth-in-taxation notices to property owners, showing proposed 2024 property taxes.
As part of its regularly scheduled City Council meeting on Monday, December 11, the City Council will hold a truth-in-taxation public meeting on the proposed 2024 budget and property tax levy. The Council will adopt its final payable 2024 property tax levy and 2024 budget at the December 11 meeting and will certify the 2024 property tax levy to Hennepin County on or before December 28.
Overall proposed 2024 General Fund expenditures and transfers out are preliminarily budgeted at $6,485,291, or a 6.5% increase from the 2023 General Fund budget.
General Fund 2024 revenues and transfers in are also preliminarily budgeted at $6,485,291, or a 6.5% increase from the 2023 budget. The increase is due to the proposed General Fund taxes increasing in order to cover 2024 expenditure increases. Property taxes account for 88.9% of the 2024 General Fund revenue budget.
For the 2024 budget, no use of reserves has been included in the annual General Fund budget, resulting in a structurally balanced budget.
The City’s 2024 overall preliminary property tax levy of $7,115,274 is 9.3% higher than the 2023 total levy of $6,510,948. The General Fund portion of the property tax levy is proposed to increase by $372,996, or 6.9%, with all other non-General Fund tax levies (capital and debt levies) budgeted to increase $231,330, or 20.3%.
The City’s overall estimated market value increased by 9.2% from 2023 to 2024, including existing value increases and new construction.
Based on a property tax capacity increase of 10.0%, the City is proposing to decrease the estimated payable 2024 City tax rate by 0.4% from 22.416% in 2023 to 22.323% in 2024.
Property owners with no change in market values from payable 2023 to payable 2024 should experience an approximate 0.4% decrease in the City portion of their overall property tax bill. In the event of a market value decrease or increase from payable 2023 to payable 2024, City property taxes would change proportionately.
Meeting information, including 2024 budget documents, agenda packets, minutes, and link to attend virtually, can be found on the City’s website at ci.shorewood.mn.us/agendas
Additional information about the finance department can be found at ci.shorewood.mn.us/finance