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Home My WebLink About08/28/2024 Special Meeting ... .... ..... •.. City of Apple Valley PUBLIC NOTICE CITY OF APPLE VALLEY August 22, 2024 NOTICE IS HEREBY GIVEN that the City Council of the City of Apple Valley will hold a special informal meeting, beginning at 5:30 p.m. on Wednesday, Aug. 28, 2024, at the Apple Valley Municipal Center, 7100 147th Street W., for the purpose of discussing the 2025 /2026 Proposed Budgets. BY ORDER of the Mayor and City Council of the City of Apple Valley. Christina M. Scipioni, City Clerk ••••• ••• Meeting Location: Municipal Center Apple 7100 147th Street West Valley Apple Valley, Minnesota 55124 August 28, 2024 CITY COUNCIL SPECIAL INFORMAL MEETING TENTATIVE DISCUSSION ITEMS 5:30 PM 1. Call to Order 2. Discussion Items A. Discuss 2025 / 2026 Proposed Budgets (Please bring your budget binder) 3. Other Items 4. Adjourn • ITEM: 2.A. ••••• • ••• COUNCIL MEETING DATE: August 28, 2024 Apple Valley SECTION: Discussion Items Description: Discuss 2025 /2026 Proposed Budgets Staff Contact: Department/ Division: Tom Lawell, CityAdministrator Administration Department ACTION REQUESTED: N/A SUMMARY: The City Council has set an informal City Council meeting for August 28 at 5:30 p.m. for further discussion of the proposed 2025/2026 proposed budget. BACKGROUND: The date for formally adopting the preliminary budget and levy is set for September 12 and is required to be adopted by the City Council and certified to the Dakota County Auditor by September 30. BUDGET IMPACT: The preliminary tax levy and budget that will be adopted on September 12 is intended to provide for the operating budget for 2025. ATTACHMENTS: Presentation 8/28/2024 CITY COUNCIL INFORMAL 2025/26 BUDGET 8/28/24 1 Questions Raised 8-22-24 • What are the financial benefits of the AAA bond rating • Historically how has Apple Valley increases compared to other cities • Consider a reduction to impacts to Median Valued home • Can a portion of the Gaslight site sale proceeds be used to lower'25 levy 2 1 8/28/2024 Current Status 2025 taxes of $1 ,486 vs $1 ,366 in 2024 Increase in taxes on MV home: $120 per year, or $10.02/month The $120 per year equates to 8.8% increase 3 Brief Agenda Benefit of AAA rating Multi Year levy increase comparison Comparison to prior tax impacts for the CIP & Park Bonds 4 2 8/28/2024 What is the financial benefit to AAA ratings? According to Tammy Omdal, our Financial Advisor with Northland, it is conservative to estimate a benefit of 7/10 of 1%. The benefit received in the latest bond issue is approximately $261,000 over the 20-year bond term. 5 MULTI-YEAR LEVY INCREASE COMPARISONS 6 3 8/28/2024 Multi-year Levy Increase Comparison Apple Valley has 3rdh lowest avg Metro Comparison Cities - past 20 years over past 20 years Median Annual Levy Increase 2006-2024(2005 is Base Year) MAPLE GROVE 3.02% EDEN PRAIRIE 3.03% APPLE VALLEY 3.91% WOODBURY 3.94% MINNETONKA 3.97% BURNSVILLE 4.43% COON RAPIDS 4.46% LAKEVILLE 4.73% BLOOMINGTON 4.76% EAGAN \ 4.76% PLYMOUTH 5.03% ST LOUIS PARK 5.20% Certified Annual Levy SHAKOPEE _ 5.35% Data provided by MN BROOKLYN PARK 5.53% Dept of Revenue EDINA 5.86% BLAINE 6.49% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.0063 7.00% 8 Multi-year Levy Increase Comparison Apple Valley has 3rd lowest avg over Metro Comparison Cities - past 10 years past 10 years Average Annual Levy Increase 2015-2024(2014 is Base Year) MAPLE GROVE 3.13% EDEN PRAIRIE 3.63% APPLE VALLEY 4.36% COON RAPIDS 4.53% SHAKOPEE 4.59% MINNETONKA 4.91% WOODBURY 5.12% EAGAN 5.33% BLOOMINGTON 5.33% BROOKLYN PARK 5.43% PLYMOUTH 5.54% BURNSVILLE 5.74% Certified Annual Levy ST LOUIS PARK 5.74% Data provided by MN LAKEVILLE 6.33% Dept of Revenue EDINA 7.05% BLAINE 8.14% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00'. 9 4 8/28/2024 Multi-year Levy Increase Comparison Apple Valley has 5th lowest avg Metro Comparison Cities — past 5 years past 5 years Average Annual Levy Increase 2020-2024(2019 is Base Year) MAPLE GROVE 3.75 EDEN PRAIRIE 4.25% COON RAPIDS 4.76% BLOOMINGTON 5.48% APPLE VALLEY 5.70% SNAKOPEE 5.79% EAGAN 5.86% MINNETONKA 5.97% ST LOUIS PARK 6.14% WOODBURY 6.39% BROOKLYN PARK -- -- 6.67% Certified Annual Levy PLYMOUTH 7.12% Data provided by MN BURNSVILLE 7.31% Dept of Revenue EDINA 7.78% LAKEVILLE 7.83% BLAINE 8.52% 0.00% 1.00% 200% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10 Apple Valley's ranking should be expected to fall in recent years because of the recent bond issues in '21 & '22 11 5 8/28/2024 Multi-year Levy Increase Comparison Apple Valley has 3rd lowest Larger Dakota County Cities - past 20 years past 20 years over Median Annual Levy Increase 2006-2024(2005 is Base Year) ROSEMOUNT 3.57% HASTINGS 3.90% APPLE VALLEY 3.91% FARMINGTON 4.06% BURNSVILLE 4.43% LAKEVILLE - I- 1 _ - 4.73% EAGAN 4.76% WEST ST PAUL 5.88% Certified Annual Levy SOUTH STPAUL 6.03% Data provided by MN MENDOTA HEIGHTS I - 1 1 I - 6.50% Dept of Revenue INVER GROVE HEIGHTS 7.10% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 12 Multi-year Levy Increase Comparison Apple Valley has 2nd lowest avg Larger Dakota County Cities - past 10 years over past 10 years Average Annual Levy Increase 2015-2024(2014 is Base Year) FARMINGTON 3.92% APPLE VALLEY 4.36% ROSEMOUNT 4.54% HASTINGS - - 4.86% EAGAN 5.33% BURNSVILLE 5.74% SOUTH ST PAUL 6.27% LAKEVILLE 6.33% MENDOTA HEIGHTS 6.93% Certified Annual Levy Data provided by MN WEST ST PAUL - - - 6.96% Dept of Revenue INVER GROVE HEIGHTS 8.11% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 13 6 8/28/2024 Multi-year Levy Increase Comparison Apple Valley has 4th lowest avg Larger Dakota County Cities — past 5 years past 5 years Average Annual Levy Increase 2020-2024(2019 is Base Year) FARMINGTON 4.37% SOUTH ST PAUL I I 5.37% HASTINGS I - 5.57% APPLE VALLEY 5.70% WESTSTPAUL \ 5.83% EAGAN 5.86% ROSEMOUNT 6.06% MENDOTA HEIGHTS i I 6.44% Certified Annual Levy INVER GROVE HEIGHTS 7.09% Data provided by MN BURNSVILLE 7.31% Dept of Revenue LAKEVILLE 7.83% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 14 MULTI-YEAR COMPARISONS OF TAXES PAID ON MEDIAN VALUED HOME 15 7 8/28/2024 Taxes on Median Valued Home 2015, 2020 & 2024 Sorted by 2024 Taxes 2,129 2,026 $2,000 • 1,696 1,735 1,762 1,508 1,527 1,547 1,596 1,606 1,628 1,655 $1,500 1,450 1,315 1,349 1,366 1,274 1,279 _ • 1,164 1,177 $1,000 $500 cJ ao ��e e� oo Oe c`f o0 •tie o� 005 \5 � ,a ,(Cs Ito�e<Cs o06 �ao��*e4.\ a\ `�`Jtcs`' \�Qa tc`t` g tag �K.?a�aycr4, �`'RI'ce'oo��q3 �4 a. 4\aQ Q° PQ �o0 0 t° fat , o0�r 4, \° �� eyw a°�a • 2015 Taxes • Add'I. '15 to'20 Taxes Addl.'20 to'24 FINAL taxes 16 Taxes on Median Valued Home 2015, 2020& 2024 Sorted by 2024 Taxes Apple Valley in bottom 1/3 2,129 $2,000 for taxes oayabl 024 2,026 1 696 1,735 1,762 1,596 1,606 1,628 1,655 , 1,450 1,508 1,527 1,547 $1,500 1,315 1,349 1,366 I � ' 1,274 1,279 $1,000 1,164 Lin $500 $- ''kl 4e �K• c� ,at` ��e e,A 0° ��e t o .t o �? Qp' � c *a J �5 tea J(Cs IOs) to,(Cs o°6 C• skew.\Ja��•`��w�tcs`' \�Qa�`�� tag ��Q�ay��r4��r •�`Qa e�o� �Qa e`�r a. �aQ ° PQ �o° et) to° fat ae ��`o to \P �� `er ao�a • 2015 Taxes • Add'I. '15 to'20 Taxes Addl.'20 to'24 FINAL taxes 17 8 8/28/2024 Taxes on Median Valued Home 2015, 2020 & 2024 Sorted by 2024 Taxes Apple Valley in bottom 1/3 Apple Valley in bottom half even 2,129 for taxes oayabl 024 with '25 proposed of$1.486 2,026 $2,000 1,596 1,606 1,628 1,655 1,696 1,735 1,762 1,450 1,508 1,527 1,547 $1,500 1,164 1,177 1,315 1,349 1,366 1,274 1,279 • UMI $1,000 $500 $- �r �e c‘. to a° •��e eJ 0° •��e t 0° •i\e �� g;' �a c �a J> �e • a �00 �0 �00 0a`Os �a, �¢4\ Jai\ • `�0'` C�4\ a ``.Qoc Q`D� `Qa yQC Z0r `Qa low �Qa e`4Or t<S ' Q\A Q\� 0�e �0 �a Q�e 00„ ��t 0\� a�„ ae� �a 0,e �OJ �, e's Q QQ \ 0 F F OJ 5 \ et `� 4\eoa • 2015 Taxes ■ Add'I. '15 to'20 Taxes Addl.'20 to'24 FINAL taxes 18 PREVIOUSLY PRESENTED INFORMATION ON TAX IMPACT OF THE CIP AND PARK REFERENDUM BONDS 19 9 8/28/2024 Facilities Capital Improvement Bonds • 2021 & 2022 Existing Bonds, $14M Impact to Median Valued Home Reaches • 2022 Add'I authority added $41 M $153/year $180 • Debt service added '24,'25,'26 $160 $140 $45-\ • $10M in 24 & 25 , $14 M in 2026 $Zoo $32-\ • 25 years, (2024 was shortened to 20 yr) $80 $32 $60 44 • Debt Service Levy adds $700,000/yr $zo I I • Graph at right assumes add'I $34m, $ y3 yh tit y0 o>. 33 ,,h �1 3� oti o?, ph P1 a0 total financed of $48M ti° ti° ti° ti° ti° ti° ti° ti° ti° ti° ti° ti° Current Impacts(w/'24a and prior issued): • Existing Bonds('21&22) 2024 Bonds-Non-BQ 2024A Prior Total CIP Bonds $29 $40 $69 vs.$76 at right 2025 Bonds-Non-BQ 2026 Bonds-Non-BQ at end of'26 the final year, impact to MV home$153/yr 20 Park Referendum- Debt Service Impacts Assumes 3 Issues totaling $73M Impact to Median Valued Home Reaches • 20 year bonds, int 3.3 to 4 $257/year $300• D/S — $770,000 per $10M issued $250 • Annual impact to MV home reaches $99 $zoo $257 with final issue $102 siso $100 $56 Current Impacts(w/'24a nd prior): $50 2024A Park Bonds $52 vs. $56 $- yh 'y1 '1, Sti lib Sh 'S1 Soi 0 03 0, 01 •PARK BONDS 2024 ❑PARK BONDS 2025 ❑PARK BONDS 2026 21 10 8/28/2024 Combined Debt Service Impacts (CIP & Park) CIP Bonds total issued = $48M Impact to Median Valued Home Reaches $500 $410/year Park Bonds total issued = $73M $400 Tax Capacity Bonds(excludes the MV Bonds) $300 ss vs original $200 $326 I projection $10o s'\� IIIII Prior '21 &'22 CIP $40 $44 $- \y1 �t M ll1 r, Of c-I M 111 I, 01 c-I M 111 I� 01 2024 CIP $29 $32 N N N N M M M M M Cr Cr Cr Cr Cr C C C C C C C C C C C C C N N N N N N eV eV N N N N N N 2024 Parks $52 $56 • Existing Bonds('21&22) 2024 Bonds-Non-BQ 2025 Bonds-Non-BQ 2026 Bonds-Non-BQ Total $121 $132 PARK BONDS 22 PROPERTY TAX LEVY 23 11 8/28/2024 1yo •ppe,a ey Property Tax levy Hist. 2021 2022 2023 2024 2025 2026 GENERAL LEVIES General Fund 23,359,336 24,179,439 25,514,435 27,575,713 30,232,151 32,967,106 Original Municipal Building Fund 198,000 204,000 65,000 150,000 150,000 225,000 Fire Facilities Fund 30,000 40,000 100,000 100,000 Park Facilities Fund 286,000 355,000 100,000 - Levy General Levy 23,557,336 24,383,439 25,895,435 28,120,713 30,582,151 33,292,106 Annual Street Maintenance Program 3,664,000 3,801,000 3,971,000 4,360,000 4,670,000 4,600,000 Ice Arena 21,000 121,000 121,000 Schedule DelinquencySupport 121,000 allowance 50,000 150000 21,000 151,700 21,000 150,000 100,000 100,000 TOTAL GENERAL LEVIES 27,392,336 28,355,439 30,039,135 32,651,713 35,473,151 38,113,106 DEBT LEVIES Equipment Certificates: (prior to Equip serf of2012-$900,000 128,000 Capital Improvement Bonds 2021 1. 395,091 396,113 393,803 396,585 396,480 2024a Capital Improvement Bonds 2022 498297 563,929 564,454 564,454 Capital Improvement Bonds 2024-Estimated 700,000 700,000 Capital Improvement Bonds 2025-Estimated 700,000 Issue) Capital Improvement Bonds 2026-Estimated Ss�Ae1 Capital Improvement Bonds 2027-Estimated Park Referendum Bonds 2024-Estimated 1,232,030 1,232,000 Park Referendum Bonds 2025-Estimated 2,233,000 Park Referendum Bonds 2026-Estimated 128,000 395,091 894,410 957,732 2,893,039 5,825,93.41 General Obligation Bonds(Market Value based) GO Bonds of 2013 A(refunded portions of 2007&: 347,150. 344,300 930,000' 1,020,000' 1,040,000 1,060,000 2015b-2007 Portion 273,420 289,170 - - - - 2015b-2008 Portion 307,440 322,560 64,260 - - - 20158-2011 Portion 120,435 118,440 111,195 114,555 117,810 120,960 Total G.O.MV Based 1,048,445 1,074,470 1,105,455 1,134,555 1,157,810 1,180,960 TOTAL DEBT LEVY 1,176,445 1,469,561 1,999,865 2,092,287 4,050,849 7,006,894 TOTAL LEVY 28,568,781 29,825,000 32,039,000 34,744,000 39,524,000 45,120,000 Increase in Net Levy ( 4.34% 440% 742% 8 44% 13 76% 14.16561 24 City of Apple Valley Property Tax levy History 2024 2025 2026 2027 2028 2029 2030 2031 2032 GENERAL LEVIES General Fund 27,575,713 30,232,151 32,967,106 34,615,462 36,346,422 38,163,743 40,071,930 42,075,527 44,179,303 Municipal Building Fund 150,000 150,000 225,000 400,000 400,000 400,000 400,000 400,000 400,000 Fire Facilities Fund 40,000 100,000 100,000 150,000 200,000 200,000 200,000 200,000 200,000 Park Facilities Fund 355,000 100,000 - 500,000 600,000 600,000 600,000 600,000 600,000 General Levy 28,120,713 30,582,151 33,292,106 35,665,462 37,546,422 39,363,743 41,271,930 43,275,527 45,379,303 Ong• Annual Street Maintenance Program 4,360,000 4,670,000 4,600,000 5,350,000 5,725,000 6,126,000 6,555,000 7,014,000 7,505,000 Ice Arena Support 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 Levy Delinquency allowance 50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 TOTAL GENERAL LEVIES 32,651,713 35,473,151 38,113,106 41,236,462 43,492,422 45,710,743 48,047,930 50,510,527 53,105,303 Sch, DEBT LEVIES Equipment Certificates: Equip cert of 2012-$900,000 Capital Improvement Bonds 2021 393,803 396,585 396,480 393,540 395,693 392,280 393,960 395,325 396,375 Capital Improvement Bonds 2022 563,929 564,454 564,454 563,929 573,379 571,279 563,404 560,516 559,886 (prior to Capital Improvement Bonds 2024-Estimated - 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 CapialFnprovementBonds2025-Estimated 700,000 700,000 700,000 700,000 700,000 Capital Improvement Bonds 2026-Estimated 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 2024a Capital Improvement Bonds 2027-Estimated 140,000 140,000 140,000 140,000 140,000 Park Referendum Bonds 2024-Estimated 32,000 1,232,000 1,232,000 1,232,000 1,232,000 1,232,000 1,232,000 Issue) Park Referendum Bonds 2025-Estimated 1,232,000 233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 Park Referendum Bonds 2026-Estimated 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 957,732 2,893,039 5,825,934 9,028,469 9,180,072 9,174,559 9,168,364 9,166,841 9,167,261 Future General Obligation Bonds(Market Value based) GO Bonds of2013 A(refunded portions of 2007&2 1,020,000' 1,040,000 1,060,000 1,075,000 1,100,000 1,120,000 1,130,000 1,145,000 - Levies 2015b-2007 Portion - - - - - - - - 2015b-2008 Portion - - - - - - - - 2015b-2011 Podion 114,555 117,810 120,960 102,729 105,381 107,888 - - Total G.O.MV Based 1,134,555 1,157,810 1,180,960 1,177,729 1,205,381 1,227,888 1,130,000 1,145,000' - TOTAL DEBT LEVY 2,092,287 4,050,849 7,006,894 10,206,198 10,385,453 10,402,447 10,298,364 10,311,841 9,167,261 TOTAL LEVY 34,744,000 39,524,000 45,120,000 51,442,660 53,877,875 56,113,190 58,346,294 60,822,368 62,272,564 Increase in Net Levy ( 8 44% 13.76%I 14.16% 14.01% 4.73% 4.15% 3.98% 4.24% 2.38% 25 12 8/28/2024 2024 A G.O. Bond Issue The 2024A bond issue included $2.55Million of premium (PAR = $26,495,000, proceeds were $29,045,392). The issue results in higher levy for 2025 and future years Portion of premium was applied to 2025 levy ($142,012 & $112,110) Options exist with premium received: Use premium in construction fund to lower future issuance e.g. the 2024 issue proceeds may eliminate need to issue again until CMF project starts 2. Apply proceeds to reduce future debt service levies 3. Use as additional project sources without exceeding the Referendum or Facilities CIP limits 26 City of Apple Valley Property Tax levy History Levy 2024 2025 2026 2027 2028 2029 2030 2031 2032 Sch. GENERAL LEVIES General Fund 27,575,713 30,232,151 32,967,106' 34,615,462 36,346,422 38,163,743 40,071,930 42,075,527 44,179,303 Municipal Building Fund 150,000 150,000 225,000 400,000 400,000 400,000 400,000 400,000 400,000 Ore Facilities Fund 40,000 100,000 100,000 150,000 200,000 200,000 200,000 200,000 200,000 After Perk Facilities Fund 355,000 100,000 500,000 600,000 600,000 600,000 600,000 600,000 General Levy 28,120,713 30,582,151 33,292,106 35,665,462 37,546,422 39,363,743 41,271,930 43,275,527 45,379,303 2024a IAce Arel Street rSupport Maintenance Program 4,360 000 4 620,000,000 4 620,000,000 5 3120,000 000 5,725,000 121,000 6,126,000 121,000 6,555,000 121,000 7 02�000 000 7,505,000 121,000 Delinquency allowance 50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 TOTAL GENERAL LEVIES 32,651,713 35,473,151 38,113,106 41,236,462 43,492,422 45,710,743 48,047,930 50,510,527 53,105,303 ISSUe DEBT LEVIES Equipment Certificates: Equip cert of 2012-$900,000 2014 equip cert 2015 Equip Cert 2015E Capital Improvement Bonds 2021 393,803 396,585 396,480 393,540 395,693 392,280 393,960 395,325 396,375 Capital Improvement Bonds 2022 563,929 564,454 564,454 563,929 573,379 571,279 563,404 560,516 559,886 Capital Improvement Bonds 2024-Estimated - I 700,000 841,523 839,948 842,835 839,423 840,473 840,473 839,423I Capital Improvement Bonds 2025-Estimated 700,000 700,000 700,000 700,000 700,000 700,000 700,000 Capital Improvement Bonds 2026-Estimated 1,050,000' 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 Capital Improvement Bonds 2027-Estimated 140,000' 140,000 140,000 140,000 140,000 Park Referendum Bonds 2024-Estimated I 1,232,0001 1,343,475 1,347,413 1,344,525 1,345,575 1,345,050 1,348,200 1,344263 I Park Referendum Bonds 2025-Estimated 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 Park Referendum Bonds 2026-Estimated 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 957,732 2,893,039 6,078,932 9,283,830 9,435,432 9,427,557 9,421,887 9,423,514 9,418,947 General Obligation Bonds(Market Value based) GO Bonds of2013 A(refunded portions of 2007&2 1,020,000' 1,040,000 1,060,000 1,075,000 1,100,000 1,120,000 1,130,000 1,145,000 - 2015b-2011 Portion 114,555 117,810 120,960 102,729 105,381 107,888 -Total GO.MV Based 1,134,555 1,157,810 1,180,960 1,177,729 1,205,381 1,227,888 1,130,000 1,145,000 r - TOTAL DEBT LEVY 2,092,287 4,050,849 7,259,892 10,461,559 10,640,813 10,655,445 10,551,887 10,568,514 9,418,947 TOTAL LEVY 34,744,000 39,524,000 45,372,998 51,698,021 54,133,235 56,366,188 58,599,817 61,079,041 62,524,250 Increase in Net Levy 844%-I 1376% 14.80% 13-94% 4.71% 4.12% 3.96% 423% 237% VS original Schedule 14.16% 14.01% 4.73% 4.15% 3.98% 4.24% 2.38% 27 13 8/28/2024 Adjustments made to future levies • The debt service levy amount for Facilities CIP portion for 2025/pay2026 was reduced using portion of premium • With existing delay in CMF portion likely need for issue delayed 1 yr 28 City of Apple Valley Property Tax levy History Levy 2024 2025 2026 2027 2028 2029 2030 2031 2032 GENERAL LEVIES General Fund 27,575,713 30,232,151 32,967,106' 34,615,462 36,346,422 38,163,743 40,071,930 42,075,527 44,179,303 Sch Municipal Building Fund 150,000 150,000 225,000 400,000 400,000 400,000 400,000 400,000 400,000 Fire Facilities Ford 40,000 100,000 100,000 150,000 200,000 200,000 200,000 200,000 200,000 Park Facilities Fund 355,000 100,000 - 500,000 600,000 600,000 600,000 600,000 600,000 After General Levy 28,120,713 30,582,151 33,292,106 35,665,462 37,546,422 39,363,743 41,271,930 43,275,527 45,379,303 Annual Street Maintenance Program 4,360,000 4,670,000 4,600,000 5,350,000 5,725,000 6,126,000 6,555,000 7,014,000 7,505,000 he Arena Support De allowance inquency 121,000 50, 1 121,000 100, 00 0 100, 121,000 100,000 2024a TOTALIGENERAL LEVIES 32,6511,07113 35,4773,11511 38,113,1106 41,236,462 43,492,422 45,710,743 48,047,930 505110,52 100,000 121,000 100,000 121,000 100,0077 53,105,303 DEBT LEVIES Issue Equipment Certificates: Equip cart of 2012-$900,000 2014 equip cert 2015 Equip Cert 2015B Capital Improvement Bonds 2021 393,803 396,585 396,480 393,540 395,693 392,280 393,960 395,325 396,375 and Capital Improvement Bonds 2022 563,929 564,454 564,454 563,929 573,379 571379 563,404 560,516 559,886 Capital Improvement Bonds 2024-Estimated 700,000' 841,523 839,948 842,835 839,423 840,473 840,473 839,423 Capital Improvement Bonds 2025-Estimated 150 000- 150,000 150.000 150,000 150000 150,000 150,000' Capital Improvement Bonds 2026-Estimated 980000. 980000 980000 980000 980000 980000 Capital Improvement Bonds 2027-Estimated 980.000' 980,000 980000 980 000 980.0004 Park Referendum Bonds 2024-Estmated 232,000 Adjust Park Referendum Bonds 2025-Estimated 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233, 0 Park Referendum Bonds 2026-Estimated 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 timing of 957,732 2,893,039 5,528,932 8,663,830 9,655,432 9,647,557 9,641,887 9,643,514 9,638,947 General Obligation Bonds(Market Value based) Next CIP GO Bonds of 2013 A 2015b 2011 Portion refunded portions of 20078'e 1,020,000'4,555 1,040,000117,810 1,0600,900670 1,075,000 102,729 105,3810 1,1220,000107,8800 1,130,000 1,145,000 - 8 Total G.O.MV Based 1,134,555 1,157,810 1,180,960 1,177,729 1,205,381 1,227,888 1,130,000 1,145,000' - Bond TOTAL DEBT LEVY 2,092,287 4,050,849 6,709,892 9,841,559 10,860,813 10,875,445 10,771,887 10,788,514 9,638,947 TOTAL LEVY 34,744,000 39,524,000 44,822,998 51,078,021 54,353,235 56,586,188 58,819,817 61,299,041 62,744,250 hcrease in Net Levy 8.44% 13.76% 13.41% 13.95% 6.41% 4.11% 3.95% 4.21% 2.36% VS original Schedule 14.16% 14.01% 4.73% 4.15% 3.98% 4.24% 2.38% 29 14 8/28/2024 Decisinn Point Is a reduction needed? If so, what is the "target" reduction • One target suggested was an impact to MV home of 7% • Requires reduction of $588,000 Results in $2/month reduction Possible strategies: Use proceeds from Gaslight transit site, likely cash not received until late 2025 or 2026 Use portion of premium to reduce 2025 d/s levy further 30 Adjustments made to future levies The Issue amount for Facilities CIP portion for 2025/pay2026 was reduced With the likely delay in CMF portion the need for next issue delayed 1 yr AND • Apply additional $588,000 of premium to 2025 levy • Will result in the 2026 % increase to appear larger 31 15 8/28/2024 City of Apple Valley Property Tax levy History 2024 2025 2026 2027 2028 2029 2030 2031 2032 LeW GENERAL LEVIES General Fund 27,575,713 30232,151 32,967,106' 34,615,462 36,346,422 38,163,743 40,071,930 42,075,527 44,179,303 Muricipal Building Find 150,000 150,000 225,000 400,000 400,000 400,000 400,000 400,000 400,000 Sch. Fire Facilities Fund 40,000 100,000 100,000 150,000 200,000 200,000 200,000 200,000 200,000 I I Park Facilities Fund 355,000 100,000 500,000 600,000 600,000 600,000 600,000 600,000 General Levy 28,120,713 30,582,151 33,292,106 35,665,462 37,546,422 39,363,743 41271,930 43275,527 45,379,303 After Annual Street Maintenance Program 4,360,000 4,670,000 4,600,000 5,350,000 5,725,000 6,126,000 6,555,000 7,014,000 7,505,000 Ice Arena Support 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 2024a Delinquency allowance 50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Issue GENERAL LEVIES 32,651,713 35,473,151 38,113,106 41,236,462 43,492,422 45,710,743 48,047,930 50,510,527 53,105,303 Issue DEBT LEVIES Equipment Certificates: Equip cert of 2012-$900,000 2014 equip cert 2015 Equip Cert 2015B and Capital Improvement Bonds 2021 393,803 396,585 396,480 393,540 395,693 392,280 393,960 395,325 396,375 Capital Improvement Bonds 2022 563,929 564,454 564,454 563,929 573,379 571,279 563,404 560,516 559,886 Capital Improvement Bonds 2024-Estimated - 474,000' 841,523 839,948 842,835 839,423 840,473 840,473 839,423 Capital Improvement Bonds 2025-Estimated 150,000' 150,000 150,000 150,000 150,000 150,000 150,000 Capital Improvement Bonds 2026-Estimated 980,000' 980,000 980,000 980,000 980,000 980,000 Capital Improvement Bonds 2027-Estimated 980,000' 980,000 980,000 980,000 980,000 Adjust Park Referendum Bonds 2024-Estimated 870,000' 1,343,475 1,347,413 1,344,525 1,345,575 1,345,050 1,348,200 1,344,263 Park Referendum Bonds 2025-Estimated 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 2,233,000 timing of Park Referendum Bonds 2026-Estimated 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 2,156,000 Next CIP 957,732 2,305,039 5,528,932 8,663,830 9,655,432 9,647,557 9,641,887 9,643,514 9,638,947 General Obligation Bonds(Market Value based) GO Bonds of2013 A(refunded portions of 2007& 1,020,000' 1,040,000 1,060,000 1,075,000 1,100,000 1,120,000 1,130,000 1,145,000 - Bond & Total G.O.11 Portion 114,555 117,810 120,960 102,729 105,381 107,888 Total G. MV Based 1,134,555 1,157,810 1,180,960 1,177,729 1,205,381 1,227,888 1,130,000 1,145,000' - CUt to /O/Q TOTAL DEBT LEVY 2,092,287 3,462,849 6,709,892 9,841,559 10,860,813 10,875,445 10,771,887 10,788,514 9,638,947 7 TOTAL LEVY 34,744,000 38,936,000 44,822,998 51,078,021 54,353,235 56,586,188 58,819,817 61,299,041 62,744,250 Increase in Net Levy 8.44% 12.07% 15.12% 13.95% 6.41% 4.11% 3.95% 4.21% 2.36% VS original Schedule 14.16% 14.01% 4.73% 4.15% 3.98% 4.24% 2.38% 32 TAX IMPACTS TO MEDIAN VALUED HOME 33 16 8/28/2024 Tax Impact Increase Breakdown Lev - 2024 Difference Percent Share of Change Increase General Operations $1,081.55 $1,119.89 $38.34 3.54% 2.81% Street Maintenance Program $191.24 $195.86 $4.62 2.42% 0.34% Facilities Capital Improvement Bonds $42.44 $69.66 $27.22 64.14% 1.99% Park Referendum Bonds $50.17 $100.23 $50.06 99.78% 3.67% Total $1,365.40 $1,485.64 $120.24 8.81% 8.81% 34 [Pay'24 Total Levy 34,744,000 Pay'24 taxes on MV Home 1,365.39 Reduction Market Value 358,700 Market Value-Exclusion MV (14,267) Taxable MV 344,433 needed to Target Tax Capacity(1%of 1st$500k) 3,444 PAY'25 Local Tax Base 82,116,874 82,116,874 7% Impact Fiscal Disprarity Distribution 4,146,013 4,146,013 City Levy Amount 34,220,177 r 33,632,177 MV Levy 1,157,810 1,157,810 Total 2025 Levy 39,524,000 38,936,000 Reduction in Levy (588,000) results Tax Capacity Rate 41.6725% 40.9565% Annual Taxes-pay'25 1,435.20 1,410.54 I2L1..66/year or MVBondTaxes 50.44 50.44 totalon taxes 1,485.64 1,460.98 /� Annual Increase in City Taxes $ 120.25 $ 95.59 2.OV/mo. Mo%in hly cease to $ 10.812 $ 7.07 %increase to MV Home 8.81% 7.00% Annual Increase NOT For DEBT $ 42.97 r$ 42 97 reduction levy increase% 13.76% 12.07% Levy%increase NOT For Debt 8.13% 8.13% 35 17 8/28/2024 Tax Impact Increase Breakdown with Reduction to 7% (588,000 reduction allocated to debt levy amts) I Levy Use 7 2024 2025 Difference Percent Share of Change Increase General Operations $1,081.55 $1,119.89 $38.34 3.54% 2.81% Street Maintenance Program $191.24 $195.86 $4.62 2.42% 0.34% Facilities Capital Improvement Bonds $42.44 $60.19 $17.75 41.82% 1.30% Park Referendum Bonds $50.17 $85.05 $34.88 69.52% 2.55% Total $1,365.40 $1,460.99 $95.59 7.00% 7.00% 36 IMF Council Discussion and Direction 37 18