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HomeMy WebLinkAboutWK - April 23, 2024NOVE: D 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, April 23, 2024 City Hall — Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Update/Discuss Boulevard Tree Maintenace — Public Works/Engineering 3. March 2024 Community Center Update - Administration 4. Discuss/Review City Strategic Plan Implementation/2025 Budget —Administration a. Discuss City Transportation System Funding 5. Discuss/Review 2025 Budget Development Guidelines -Administration 6. Other Topics 7. Adjournment q L W Z�Wisp Naw 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: CC: FROM: SUBJECT: DATE: Mayor and Council Members Jim Dickinson, City Administrat David D. Berkowitz, Director ofkb1i orks/City Engineer��� Jason Baumunk, Parks & Streets Operations Manager Update/Discuss Boulevard Tree Maintenance — Public Works/Engineering April 23, 2024 INTRODUCTION The City Council is requested to discuss the updates on the boulevard tree maintenance plan and procedures. DISCUSSION As discussed at the January 23d City Council workshop, staff is putting together plans and procedures on implementing the boulevard tree maintenance program for property owners. The following is an initial outline of the process. • Staff would identify areas to focus on for the year. • Letters would be sent to the affected residents informing them of the need for tree maintenance. (See attached letter) August 1St timeline for letters. • After the letter is set out, specific properties within the designated area that need work completed will be notified by door hanger or in person if they are home at the time. • August 1st - December 151. Work is expected to be completed. • Staff will be answering resident questions and giving direction as requested. • November 1" — Staff to inspect for completion and send 30 -day reminders for those who do not have work completed. • December 1" deadline for work. Staff to inspect for completion. • Violation notices sent out. Work gets contracted out and assessed to the property. With this implementation, a code amendment will need to be made to identify the abatement process in 8-2 Public Right -of -Way Management as it is in 4-3 Nuisance Tree Abatement. A seasonal/intern tree inspector position will be created as duties and timeline of employment to be determined. This year, staff will manage a trial on a few identified areas to determine the demands this places on staff time. ACTION REQUIRED The City Council is requested to discuss the boulevard tree maintenance plan and procedures and give staff direction on how to proceed. Respectfully submitted, Jason Baumutik Cc: Kameron Kytonen Attachment: Notice Letter, Outline of Process C I T Y O F ,ND OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV August 1, 2024 Re: Boulevard Trees/Brush Pruning and Removal Dear Property Owner: City staff is currently inspecting boulevards along City streets to identify tree/brush maintenance needs. These are areas overgrown with branches and brush extending well into the roadway and have been identified as needing some work for reasons including but not limited to the following: decrease the potential danger to pedestrians and motorists; improve visibility and sightlines; allow for easier snow plowing and snow storage; to improve general safety and to remove dead, insect and disease infested and invasive trees. Per City Code 8-1-1, "the owner of property abutting a public right-of-way shall be responsible for maintenance of the boulevard on their property. At a minimum, the grass shall be cut and any trees or shrubs shall be maintained." Your property has been identified as one needing some tree/brush maintenance within the boulevard. The City requires 15 feet of height clearance and clearing up to 10 feet from the back of the curb or edge of blacktop (see diagram on reverse side). Door hangers will also be left on all properties in your area needing work. Please have the work done to the specifications by December 1, 2024. Also, pruning practices shall be done per the US Forest Service Guide "How to Prune Trees." Which can be found under the Natural Resources tab at www.andovennn.gov If the work is not completed by this date, the City will proceed to contract the work and costs will be assessed to the property. Please contact me at 763-767-5137 or Jason Baumunk at 763-767-5178 if you should have any questions/concerns. Your cooperation is greatly appreciated. Sincerely, Kameron Kytonen Natural Resources Technician Cc: Jason Baumunk, Parks and Streets Operations Manager AERIAL VIEW GROUND VIEW 10 FT. ROAD i TREE 15 FT. 10 FT. ROAD -------. 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-6923 • WWW.ANDOVERMN.GOV Boulevard Tree Maintenance General Process • Staff will select area(s) that need maintenance. • Initial letter sent to applicable properties in early August o Deadline for completions is December I' o Staff will be on hand to field calls and/or meet with residents to help them determine the work needed to come into compliance • In early November, staff will check progress o Reminder letter will be sent to those not in compliance • In early December, staff will check progress o Violation letter sent to those not in compliance with one final deadline • In early January, staff will check progress o Notice of abatement letter sent and work contracted out for those not in compliance (2) 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: March 2024 Community Center Update DATE: April 23, 2024 INTRODUCTION: Attached for Council review is the Andover Community Center (ACC) Budget Summary Report for Budget Year 2023 and Budget Year 2024. The reports reflect activity through March 2024 with comparative data with March 2023. March 2024 Financials 2024 Revenues to date are on par with 2023, no surprises. 2024 revenues are expected to be comparable to 2023, a reduction in Miscellaneous Revenues is reflected in the 2024 budget as reimbursements from the YMCA for shared maintenance/construction will be less in 2024. The 2024 expenses are in line in with 2023, although you will see some payment timing impacts with operating expenses and a limited Capital Outlay budget in 2024. Salaries are expected to be consistent as ACC has been able to maintain full staffing. Looking ahead it is anticipated that 2024 activities will be comparable to the previous year as we proceed through the year. The 2023 Capital Outlay line item is for a high volume/output water heater replacement and dehumidification system replacement, this project started in 2023, but will be completed in 2024. APRILIMAY 2024 FACILITY UPDATE: Please refer to the attached ACC Facility Update for Major Events and monthly Walking Track activity through March. Major events are entering the Spring/Summer season, so it is not as busy as when the Winter season is in full swing. PROGRAMS/ACTIVITIES UPDATE - ACC has just completed the busiest time of the year now, every weekend through March ACC hosted events. Andover Athletic Basketball hosted league games, MN Premier Volleyball hosted volleyball tournaments on Sundays through January and February. The hockey playoffs were held throughout February. The turf in the Sports Complex will be coming out on April 23'd, then ACC has 9 days to get the rink floor cooled and ice in before a big tournament in early May. It was a slow turf season other than the groups that scheduled for all 6 weeks, not a lot of calls due to the mild weather. Looking ahead, I anticipate having ACC staff at the May 281h Council Workshop to discuss options related to lower-than-expected meeting room usage. PROGRAMS - Winter Learn to Skate Lessons had 120 + kids in the program. The Winter Soccer Program had 110 kids in the program. Tot -Time continues on court 4 of the Fieldhouse. Pickleball Lessons and Skills & Drills continue as well. CONCESSIONS: The Crooked Lake Creamery partnership has been successful. ACTION REQUESTED Informational. The Council is requested to review and receive a staff presentation on the attached reports. Attachments CITYOFANDOVER Community Center Budget Summary Totals Budget Year 2024 2023 1 2024 REVENUES Budget Mar YTD %Bud Audit Budget Mar YTD %Bud Charges for services Ice Rental $ 794,000 $ 199,090 25% $ 865,994 $ 809,000 $ 188,120 23% Turf Rental 25,000 2,364 n/a 19,971 22,000 3,360 15% Track 3,000 2,852 n/a 7,761 5,000 2,377 n/a Fieldhouse Rental 255,000 129,937 51% 332,579 265,000 118,504 45% Pmshop 13,000 5,639 43% 16,926 14,000 6,604 47% Vending 16,000 6,809 43% 17,782 18,000 5,701 32% Advertising 75,000 6,297 8% 115,053 80,000 3,667 5% Total Charges for services 1,181,000 352,988 30% 1,376,066 1,213,000 328,333 27% Miscellaneous 389,268 25,954 7% 309,954 188,068 23,286 12% Total revenues 1,570,268 378,942 24% 1,686,020 1,401,068 351,619 25% 2023 1 2024 EXPENDITURES Budget Mar YTD %Bud Audit Budget Mar YTD %Bud Current: Salaries & benefits 875,369 219,351 25% 861,874 892,245 233,523 26% Departmental 91,850 31,176 34% 105,378 92,350 37,650 41% Operating 679,647 96,616 14% 612,579 717,967 145,373 20% Professional services 248,725 41,529 17% 201,418 249,400 20,670 8% Capital outlay 374,601 0% 176,597 HDIV/0! Current 2,270,192 388,672 17% 1,957,846 1,951,962 437,216 22% Revenue over (under) expense (699,924) (9,730) 1% (271,826) (550,894) (85,597) 16% Other financing sources (uses) General Property Tax Levy 155,000 - 0% 154,097 155,000 - 0% Investment income 3,000 (3,894) n/a 57,713 3,000 (10,784) -359% Rental / Lease Pymt 638,000 504,211 79% 635,884 638,000 514,621 81% Transfers out (300,000) (300,000) 100% (300,000) (300,000) (300,000) 100% Total financing sources(uscs) 496,000 200,317 40% 547,694 496,000 203,837 41% increase (decrease) in 1 AND%VER COMMUNITY CENTER APRIL -MAY 2024 April 1-7 — Just Between Friends Kids Sale April 20 — Carousel Craft Spring Sale May 3-5—Midwest Hockey Youth Tournament May 23—June 9—Ice Arena Closed May 26-27—Memorial Weekend—ACC Closed Track check in is required, Monday—Friday, 6:30am-4:30pm. Numbers below reflect those checked in during these times. Jan — 2342 Feb — 1837 March — 1510 March 23 — 4 weeks — Spring Indoor Soccer March 24 — 5 weeks — Spring Learn to Skate NDOVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.AN DOVE RM N.GOV TO: FROM: SUBJECT: DATE: Mayor and Council Members Jim Dickinson, City Administrator Discuss/Review City Strategic Plan Implementation/Budget April 23, 2024 ACTION REQUESTED 0 The City Council is requested to review this staff report and the attached City of Andover Strategic Plan. The Council is asked to receive a brief presentation from staff and to then participate in an interactive review of the staff report and strategic plan. This staff report is intended to provide baseline material for some following workshop agenda items. INTRODUCTION As the 2024 Budget Development process concluded in November 2023, the Council shared concerns regarding future funding of City priorities, such as public safety related issues and roads. The Council wanted to start discussion early in 2024 regarding public safety and transportation with the goal of being able to prepare a 2025 budget to manage the potential funding needed as both are vital services the City provides. That process started at the January 2024 Workshop as the Council wanted to review the City financial proforma and strategic plan in detail before getting too far into the 2025 Budget Development process. Much the same as previous 2024 workshops reviews, City Administration/Finance will be at the workshop to guide the Council through the staff reports and answer questions of the Council, reviewing the 2025 Budget Development Guidelines will be done at the workshop as its own separate agenda item. DISCUSSION During the 2023 Budget Development process, the Council did contemplate a strategic planning process in 2023. Also, a strategic planning process was consistent with the following 2024 budget development guidelines: -Continued commitment to strategic planning targeted toward meeting immediate and long-term operational, staffing, infrastructure and facility needs. -A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns, and demands, and to do so in a cost-effective manner. On May 25, 2023, and June 8, 2023, the Andover City Council and Staff Leadership Team convened work sessions with Facilitator Phil Kernfor the purpose of updating its long-term vision, organizational values, external values, and short-term goals. The outcome of those sessions is summarized in the attached "City of Andover Strategic Plan. " Infrastructure/Transportation: During the 2024 Budget Development process, the Council used the following 2024 budget development guidelines: -A comprehensive review of the condition of capital equipment to ensure that the most cost-effective replacement schedule is followed. Equipment will be replaced based on a cost benefit analysis rather than a year -based replacement schedule. -The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. Also, the City of Andover Strategic Plan identifies the following as a major short-term initiative: "Review and update street capital improvement plan, including funding and implementation & Prioritize the timely replacement of equipment and commitment to necessary maintenance of equipment and municipal facilities." In response, throughout 2024 Budget Development process various city committees met, performed analysis, and made recommendations on equipment needs and other capital projects to the City Council as part of the 2024-2028 Capital Improvement Plan (CIP) development process. The 2024-2028 CIP was adopted after a public hearing at the September 19, 2023, City Council meeting. Looking ahead, detail analysis has already started relative to City streets and a review of conditions and needs of the city street system was presented by City Engineering and Public Works at the March 2024 workshop. At that March 2024 workshop, the City of Andover Road Ratings were reviewed and forecasted costs were provided. Also, covered at the March 2024 workshop was a review of transportation funding by Administration/Finance, this included potential revenue sources and corresponding tax impacts. Direction was provided for future workshop discussions to include analysis of assessment rates (urban and rural), utility franchise fees, bonding options, and property tax impacts. Administration/Finance will be continuing this discussion with the Council at this workshop meeting. Public Safety: The City of Andover Strategic Plan identifies the following as a major short-term initiative, "Evaluate staffing and level of service for Fire, EMS, and Sheriff's Office to provide effective fire and rescue response." In response, the City has initiated a Request For Proposal (RFP) process seeking an independent firm that specializes in reviewing Fire and EMS service. Proposals are due on May 17'. It is anticipated the Council will receive an update on RFP submissions at the May workshop and award a contract at a June regular City Council meeting. The RFP can be found here: https://www.andovermn.gov/531/Bids-Request-for-Proposals. Also related, at the February workshop, the Council met with the Andover Firefighters Relief Association where a presentation along with stories and personal impacts behind the numbers was provided by members of the Relief Board. Council direction from that meeting was for Administration to gather additional data and for the Council to discuss a Fire Relief contribution and Firefighter pay at a fixture workshop., it is anticipated that the research, conversations with other communities, and analysis will be presented and discussed at the May 2024 Council workshop. submitted, — City of Andover Strategic Plan City of Andover Strategic Plan Vision - Values - Goals Community Slogan "Andover: A Safe, Vibrant Community" Vision Statement Andover is a safe, healthy community that strives for excellence in quality of life for its citizens and businesses through recreational opportunity, quiet neighborhoods, civic involvement, strategic partnerships, fiscal responsibility, and environmental stewardship. Long -Term Organizational Values • Excellence and quality in the delivery of services. The City of Andover exists to provide quality services to the public in a professional and cost- effective manner. • Fiscal Responsibility The City of Andover believes that fiscal responsibility and prudent stewardship of public funds is essential if citizens and businesses are to have confidence in government. • Ethics and Integrity The City of Andover believes that ethics and integrity are the foundation blocks of public trust and confidence and that all relationships are built on these values. • Treating our citizens and businesses as our customer The City of Andover believes that its citizens and businesses are its customers and, as such, should be treated with courtesy, respect, and integrity. • Open and honest communication The City of Andover believes that open and honest communication with each other and the public we serve is the key to having an effective organization and informed citizens. • Prioritizing people The City of Andover believes that talented and well -supported officials and employees operating in a strong organizational culture provides stability, creativity, and excellence in delivery of service. • Maintaining organizational flexibility and adaptability The City of Andover believes that organizational flexibility and adaptability are key to meeting the changing and evolving needs of the community. Long -Term External Values • Establish and maintain a common community identity. • Provide city services that are accessible and lead to a healthy community. • Be a desirable place to live. • Enhance communication with the public and support processes that involve citizen engagement. • Develop and update the City's capital improvement program. • Broaden and preserve the City's tax base. • Balance and prioritize provision of city services with available resources. • Respect the environment. Top Priority Short -Term Goals • Develop and implement succession plans, identifying and establishing appropriate depth within each department and mentoring employees to gain organizational capacity. • Implement actions related to staff retention and attraction in order to keep the City market competitive (compensation, benefits, etc.). • Evaluate staffing and level of service for Fire, EMS, and Sheriff's Office to provide effective fire and rescue response. • Review and update street capital improvement plan, including funding and implementation. • Prioritize the timely replacement of equipment and commitment to necessary maintenance of equipment and municipal facilities. • Explore, identify gaps, and strengthen critical infrastructure. • Develop and implement additional youth activity programming at the Andover Community Center. • Continue to enter into collaborative agreements and partnerships when mutually beneficial. Secondary, Opportunity Short -Term Goals • Develop community activities to help strengthen a common community identity. • Accomplish the development of a Master Campus Plan. • Support activities to encourage business growth. • Encourage local resident entrepreneurship. • Evaluate the process of extending water within the MUSA. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Council Members FROM: Jim Dickinson, City Administrator SUBJECT: Discuss City Transportation System Funding DATE: April 23, 2024 ACTION REQUESTED LIS The City Council is requested to review this staff report, receive a brief presentation and provide directions to staff. DISCUSSION Consistent with the new strategic plan, the City is to `Review and update street capital improvement plan, including funding and implementation." Detail analysis has already started relative to City streets and a review of conditions and needs of the city street system was presented by City Engineering and Public Works at the March 2024 workshop. Also at that March 2024 workshop, the City of Andover Road Ratings were reviewed and forecasted costs were provided. Following that was a review of transportation funding by Administration/Finance, this included potential revenue sources and corresponding tax impacts. Direction was provided for future workshop discussions to include analysis of assessment rates (urban and rural), utility franchise fees, bonding options, and property tax impacts. Administration/Finance will be continuing this discussion with the Council at this workshop, Discussion - Franchise Fees: Administration/Finance research into franchise fees through gas and electric utilities and looking at a fixed fee franchise rate shows a franchise fee would yield around $280, 000 per year with a $1 franchise fee per utility per user per month and if that were increased to $4 per utility it would yield approximately $1,100, 000 per year. That revenue could be used as it comes in or the revenue could be pledged to a 10 year bond issuance between $9m to $11.3m depending on assessment involvement (See attached bond issuance examples). Franchise Fee Background Information: Many cities across the State of Minnesota charge franchise fees to utility service providers as an alternative means to raise revenues for the City's general fund or for a specific project. The franchise fees are usually a fixed amount charged per month in most communities, but in some cases are they are based on a percentage of gross revenues, at a rate per kilowatt hour or therm. The fees may also factor in usage tiers. Generally, fees will vary by type of customer — whether it be residential or commercial — and they may be capped per customer. In all instances the fees are billed on the premises and not per meter. The following outline is as a franchise fee could pertain to the City of Andover: Franchise Fees — Summary • Fee to utility providers (Gas & Electric) for use of public right of way o Typically passed through to utility customers • Used by many Minnesota cities to fund specific projects. • A common alternative to taxes for funding street reconstruction Franchise Fees - Benefits of • Reliable and stable source of revenue • Not subject to loss of revenue due to State budget issues • Growth in revenues is proportional to growth in business activity and population. • New entities immediately begin contributing. • Tax exempt properties contribute. • Opportunity to balance financial obligations between payer classes. Franchise Fees - Disadvantages of • May be viewed as another tax. • May be perceived as a means of generating revenues without annual notification. • May be unpopular with certain user classes. • May be opposed by non -profits. Franchise Fees - Implementation Process • The city adopts ordinance for each provider enacting the fee. o Contains terms of fees, and effective and expiration dates • CenterPoint Energy requests a certified copy of the action 90 days in advance of the first collection o Providers must provide 60 -day notice to the Public Utilities Commission (PUC) for change in fees. Connexus will require proper notification but is not subject to PUC requirements. Fees are collected monthly or quarterly and remitted to the City. Franchise Fees - Utility Classifications • Each utility provider has unique classifications (residential & commercial) o Classifications differ by both utilities and providers. o Residential, various Commercial, and Demand/Interruptible • Providers charge monthly fixed fees and usage rates. • Schools, churches and hospitals are classified as commercial. Franchise Fees - Miscellaneous • Most cities' fee structures are fixed but are initially developed from a percent of the utilities' gross revenues. • Fixed fees are preferable because they will not fluctuate monthly based on energy consumption. Discussion - Assessments: Administration/Finance intends to start the discussion off previous Council direction to "include analysis of assessment rates (urban and rural)," by providing some background on the Urban/Rural split of the community. Administration is proposing to start the discussion by breaking out properties by those inside the Metropolitan Urbans Service Area (MUSA) and those outside the MUSA. This is being done by using a data dump from the City's GIS mapping which shows 8,717 parcels with $3,504,821,200 of taxable market value inside the MUSA and 3,409 parcels with $1.412.668,716 outside the MUSA boundary. In summary, for residential properties with homes, Rural average (outside the MUSA) is currently approximately $468,000 and Urban average (inside the MUSA) is currently approximately $404,000. Administration will use the attached map and spreadsheets to nuide discussion at the workshop, submitted, 'PyAA Total Sources $9,050,000.00 Uses Of Funds Total Underwriters Discount (1.000%) 90,500.00 Costs of Issuance 89,000.00 Deposit to Capitalized Interest (CIF) Fund 273,529.17 Deposit to Project Fund 8,596,970.83 Total Uses $9,050,000.00 Series 2025 GO PIR eontls I SINGLE PURPOSE 1 312812024 1 11'.40 AM FREERS WVHIIC -1r:P Nit PpVI$VR) /PMO jg4 Fqr cnd� Fab olr t -C City of Andover, Minnesota $9,050,000 General Obligation PIR Bonds, Series 2025A Assumes Current Market BQ AA+ Rates plus 100bps 10 Years Sources & Uses Dated 04/01/20251 Delivered 04)0112025 Sources Of Funds Par Amount of Bonds $9,050,000.00 Total Sources $9,050,000.00 Uses Of Funds Total Underwriters Discount (1.000%) 90,500.00 Costs of Issuance 89,000.00 Deposit to Capitalized Interest (CIF) Fund 273,529.17 Deposit to Project Fund 8,596,970.83 Total Uses $9,050,000.00 Series 2025 GO PIR eontls I SINGLE PURPOSE 1 312812024 1 11'.40 AM FREERS WVHIIC -1r:P Nit PpVI$VR) of Andover, Minnesota $9,050,000 General Obligation PIR Bonds, Series 2025A Assumes Current Market BQ AA+ Rates plus 100bps 10 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 04/01/2025 - - - - - - - 02/01/2026 - - 273,529.17 273,529.17 (273,529.17) - - 08/01/2026 - - 164,117.50 164,117.50 - 164,117.50 - 02/01/2027 765,000.00 3.850% 164,117.50 929,117.50 - 929,117.50 1,093,235.00 08/012027 _._ ,55,5,5 ___.____.__149,391.25 149,391.25 - 149,391.25 - 02/01/2028 795,000.00 3.700% 149,39L25 944,391.25 - 944,39L25 1,093,782.50 08/012028 - - 134,683.75 134,683.75 - 134,683.75 - 02/012029 825,000.00 3.600% 134,683.75 959,683.75 - 959,683.75 1,094,367.50 08/012029 - - 119,833.75 119,833.75 - 119,833.75 - _02/012030 855,000.00 3.550% 119,833.75 974,833.75 - 974,833.75 1,094,667.50 08/012030 - - 104,657.50 104,657.50 - 104,657.50 - 02/01/2031 885,000.00 3.550% 104,657.50 989,657.50 - 989,657.50 1,094,315.00 08/012031 - - 88,948.75 88,948.75 - 88,948.75 - 02/012032 915,000.00 3.550% 88,948.75 1,003,948.75 - 1,003,948.75 1,092,897.50 08/01/2032 - - 72,707.50 72,707.50 - 72,707.50 - 02/012033 950,000.00 3.600% 72,707.50 1,022,707.50 - 1,022,707.50 1,095,415.00 08/012033 - - 55,607.50 55,607.50 - 55,607.50 - 02/012034 985,000.00 3.600% 55,607.50 1,040,607.50 - 1,040,607.50 1,096,215.00 08/012034 - - 37,877.50 37,877.50 - 37,877.50 - 02/012035 __—___ l 020,000.00 .._..__ 5555 3.600% _. 37,877 50 ____,5517 ........___._. 1,057,877.50 _ _— - 1 057,877.50 .. ................... .11 1,095,755.00 - 08/012035 - - 19,517.50 19,517.50 - (9,517.50 - 02/012036 1,055,000.00 3.700% 19,517.50 1,074,517.50 - 1,074,517.50 1,094,035.00 Total $9,050,000.00 - $2,168,214.17 $11,218,214.17 (273,529.17) $10,944,685.00 Significant Dates Yield Statistics Net Interest Cost (NIC).______.____.___ _.._.___.__.____._.___,---- _. 3.7666162% True lnterest Cost (TIC) . 5,5 5 5 . _ _ _ 3.7877239% Bond eld Yifor Arbitrage Purposes _ �.� 3.6122290% All Inclusive Cost (AIC)______.__.. _ _ ._.__._._ 3.9626536% IRS Form 8038 Net Interest Cost 3.6156990% Weighted Average Maturity _.._.__._._ _ _._ 6.626 Years Series 2025 GO PIR Bones I SINGLE PURPOSE 13128/2024 1 11:40 AM FREERS PJ3LIC FINANCE ADVISORS City of Andover, Minnesota $9,050,000 General Obligation PIR Bonds, Series 2025A Assumes Current Market BQ AA+ Rates plus 100bps 10 Years Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New DIS 105% of Total Franchise Fees Levy/ (Surplus) 02101/2026 - - 273,529.17 273,529.17 (273,529.17) - - - - 02/01/2027 765,000.00 3.850% 328,235.00 1,093,235.00 - 1,093,235.00 1,147,896.75 1,152,000.00 (4,103.25) 02/01/2028 795,000.00 3.700% 298,782.50 1,093,782.50 - 1,093,782.50 1,148,471.63 1,152,000.00 (3,528.38) 02/01/2029 825,000.00 3.600% 269,367.50 1,094,367.50 - 1,094,367.50 1,149,085.88 1,152,000.00 (2,914.13) 02/01/2030 _ 855,000.00 3.550% 239,667.50 1,094,667.50 - 1,094,667.50 1,149,400.88 1,152,000.00 (2,599.13) 02/01/2031 885,000.00 3.550% 209,315.00 1,094,315.00 - 1,094,315.00___ 1,149,030.75 1,152,000.00 (2,969.25) 02/01/2032 915,000.00 3.550% 177,897.50 1,092,897.50 - 1,092,897.50 1,147,542.38 1,152,000.00 (4,457.63) 02101/2033 950,000.00 3.600% 145,415.00 1,095,415.00 - 1,095,415.00 1,150,185.75 1,152,000.00 (1,814.25) 02/01/2034 985,000.00 3.600% 111,215.00 1,096,215.00 - 1,096,215.00 1,151,025.75 1,152,000.00 (974.25) 02101/2035 1,020,000.00 ._- 3.600% 75,755.00 1,095,755.00 - 1,095,755.00 1,150,542.75 1,152,000.00 (1,457.25) 02/01/2036 1,055,000.00 3.700% 39,035.00 1,094,035.00 - 1,094,035.00 _—___-- 1,148,736.75 1,152,000.00 (3,263.25) Total $9,050,000.00 - $2,168,214.17 $11,218,214.17 (273,529.17) $10,9449685.00 $11,4919919.25 $1195209000.00 (28,080.75) Significant Dates Dated __. 4/01/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars _ _ $59,966.67 Net Interest Cost All Sedes2025 GO PIR Bonds I SINGLEPURPOSE 1 32812024 1 11:40AM FREERS VVXLIC FII�ANCt Af)VI$(>HS 62% Citv of Andover. Minnesota $11,310,000 General Obligation PIR Bonds, Series 2025A Assumes Current Market Non-BQ AA+ Rates plus 100bps 10 Years Sources & Uses Dated 0410112025 1 Delivered 04101/2025 U/+ ZS/O /TISCSSMcti� w� G�fif55mvt� Sources Of Funds Par Amount of Bonds $11,310,000.00 Total Sources Uses Of Funds $11,310,000.00 Total Underwriters Discount (1.000%) 113,100.00 Costs of Issuance _ 98,000.00 Deposit to Capitalized Interest (CIF) Fund 352,345.83 Depositto Project Fund 10,746,554.17 Total Uses Series 2025 GG PIR Bands i SINGLE PURPOSE 1 32812020 1 12:10 PM ""EHLERS $11,310,000.00 City of Andover, Minnesota $11,310,000 General Obligation PIR Bonds, Series 2025A Assumes Current Market Non-BQ AA+ Rates plus 100bps 10 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 04/01/2025 Dated 4/01/2025 - - Yield Statistics 02/01/2026 - - 352,345.83 352,345.83 (352,345.83) - - 08/01/2026 - - 211,407.50 211,407.50 - 211,407.50 - 02/01/2027 950,000.00 4.000% 211,407.50 1,161,407.50 - 1,161,407.50 1,372,815.00 08/01/2027 192,407.50 192,407.50 192,407.50 02/01/2028 990,000.00 3.850% 192,407.50 1,182,407.50 - 1,182,407.50 1,374,815.00 08/01/2028 - - 173,350.00 173,350.00 - 173,350.00 - 02/01/2029 1,030,000.00 3.750% 173,350.00 1,203,350.00 - 1,203,350.00 1,376,700.00 08/01/2029 - - 154,037.50 154,037.50 - 154,037.50 - _02/Ol/2030_ _ 1,065,000.00 3.700% 154,03750 1,219037.50 __ 1,219,037.50 1,373,075.00 08/01/2030 - - 134,335.00 134335.00 - 134,335.00 - 02/01/2031 1,105,000.00 3.700% 134,335.00 1,239,335.00 - 1,239,335.00 1,373,670.00 08/01/2031 - - 113,892.50 113,892.50 - 113,892.50 - 02/01/2032 1,145,000.00 3.650% 113,892.50 1,258,892.50 - 1,258,892.50 1,372,785.00 08/01/2032 92,996.25 92,996.25 92,996.25 02/01/2033 1,190,000.00 3.650% 92,996.25 1,282,996.25 - 1,282,996.25 1,375,992.50 08/01/2033 - - 71,278.75 71,278.75 - 71,278.75 - 02/01/2034 1,230,000.00 3.700% 71,278.75 1,301,278.75 - 1,301,278.75 1,372,557.50 08/01/2034 - - 48,523.75 48,523.75 - 48,523.75 - 02/01/2035 ...__ _1/2035 _. _1,280,000_00_ 3.700% ______ ��� 48,523.75 ___ ________ _______..._....._. 1,328,523.75 - .__._..__- 1,328,523.75 1,377,047.50 08/01/2035 - 24,84375 24,843.75 - 24,843.75 - 02/01/2036 1,325,000.00 3.750% 24,843.75 1,349,843.75 - 1,349,843.75 1,374,687.50 Total $11,310,000.00 - $2,786,490.83 $14,096,490.83 (352,345.83) $13,744,145.00 - Significant Dates Dated 4/01/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars $75,040.00 Average Life____ 6.635 Years Average Coupon 3.7133407% Net Interest Cost_(NIC)._............. _. _ _ ____ -------- ----- 3.8640603% True Interest Cost TIC 3.8870028% Bond Yield for Arbitrage Poses 3.7109926% All Inclusive Cost (AIC) a nal ae3s i 8038 Net Interest Cost 3.7133407% W_i teAv_era a Matn ' _6.._63.5._.Years Sene52025WPIRBoads l SINGLEPURPOSE 13/28I2024I 12:10PM FREERS PUtlLIC FIN HHCE 4DVISVRS of Andover. Minnesota $11,310,000 General Obligation PIR Bonds, Series 2025A Assumes Current Market Non-BQ AA+ Rates plus 100bps 10 Years Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New DIS 105% of Total Assessments Franchise Fees Levy/(Surplus) 02/01/2026 - - 352,345.83 352,345.83 (352,345.83) - - - 02/01/2027 950,000.00 4.0000% 422,815.00 1,372,815.00 - 1,372,815.00 1,441,455.75 357,336.12 1,152,000.00 (67,880.37) 02/01/2028 990,000.00 3.850% 384,815.00 1,374,815.00 - 1,374,815.00 1,443,555.75 357,336.12 1,152,000.00 (65,780.37) 02/01/2029 1,030,000.00 3.750% 346,700.00 1,376,700.00 - 1,376,700.00 1,445,535.00 357,336.12 1,152,000.00 (63,801.12) _02/01/2030 1,065,000.00 3.700% 308,075.00 1,373,075.00 _ 1,373,075.00 1,441,728_75 357,336.11 1,152,000.00 (67,607.36) 02/01/2031 1,105,000.00 1.3 00% 268,670.00 1,373,670.00 - 1,373,670.00 1,442,353.50 357,336.12 1,152,000.00 (66,982.62) 02/01/2032 1,145,000.00 3.650% 227,785.00 1,372,785.00 - 1,372,785.00 1,441,424.25 357,336.12 1,152,000.00 (67,911.87) 02/01/2033 1,190,000.00 3.650% 185,992.50 1,375,992.50 - 1,375,992.50 1,444,792.13 357,336.11 1,152,000.00 (64,543.98) 02/01/2034 1,230,000.00 3.700% 142,557.50 1,372,557.50 - 1,372,557.50 1,441,185.38 357,336.13 1,152,000.00 (68,150.75) 02/01/2035 1280,000.0_0 3.700% 97,0_47.50 1,377,047.50 - 1,377,047.50 1,445,899.88 _ 357,336.13 1,152,000.00_____(0,436.2_5) 02/01/2036 1,325,000.00 3.750% 49,687.50 1,374,687.50 - 1,374,687.50 1,443,421.88 357,336.12 1,152,000.00 (65,914.25) Total $11,310,000.00 $2,786,490.83 $14,096,490.83 (352,345.83) $13,744,145.00 $14,431,352.25 $39573,361.20 $11,520,000.00 (662,008.95) Significant Dates First Coupon Date Yield Statistics 4/01/2025 - 2/01/2026 Bond Year Dollars ...., $75,040.00 Avenge Life __ _ 6.635 Years Series 2025 GO PIR Bonds I SINGLE PURPOSE 1 32/28/2024 1 12:10 PM EHLERS PUBLIC FINANCE ADVISORS City of Andover, Minnesota $2,827,500 General Obligation PIR Bonds, Series 2025A Assessments - 25% Assessed - 10 Years Fixed Rate - Equal P&I Assessments Date Principal Coupon Interest Total P+I 12/31/2026 230,098.62 4.500% 127,237.50 357,336.12 12/31/2027 240,453.06 4.500% 116,883.06 357,336.12 12/31/2028 251,273.44 4.500% 106,062.68 357,336.12 12/31/2029 262,580.75 4.500% 94,755.36 357,336.11 12/31/2030 274,396.88 4.500% 82,939.24 357,336.12 12/31/2031 286,744.74 4.500% 70,591.38 357,336.12 12/31/2032 299,648.25 4.500% 57,687.86 357,336.11 12/31/2033 313,132.43 4.500% 44,203.70 357,336.13 12/31/2034 327,223.39 4.500% 30,112.74 357,336.13 12/31/2035 341,948.44 4.500% 15,387.68 357,336.12 Total $2,827,500.00 - $745,861.20 $3,573,361.20 Significant Dates Filing Date _.__.__— ... 1/01/2026_ First Payment Dale .. ......_. _.._---—-----------.......... .____ .. ._— __..._..___ .. 12/31/2026 Series 2025 GO PIR Bonds I SINGLE PURPOSE 1 3/2812024 1 12:10 PM FREERS PUBLIC PrvANC[ ADVISORS Certificates of Indebtedness 2016A G.O. Equipment Certificates 2020A G.O. Equipment Certificates 2021A G.O. Equipment Certificates 2024 Equipment Certificate - 2026 Equipment Certificate - 2028 Equipment Certificate - 2030 Equipment Certificate - 2032 Equipment Certificate - 2034 Equipment Certificate - Subtotal Capital Improvement Bonds 2018A G.O. Cap Improv Plan Bonds Transfer from Water & Sewer EF 2031 G.O. CIP Bonds Subtotal Referendum Bonds Open Space Referendum Bonds Street Bonds 2021 A G.O. Street Recon Transfer from PIR Fund Special Assessments Subtotal Community Center Abatement Bonds 2012C (i.0. Abatement Bonds •Transfer from Operations 2019A GO Tax Abatement Bonds *Transfer from Park Dedication ($ Im) Subtotal DEBT SERVICE LEVY CITY OF ANDOVER Long Range Debt Levy & General Fund Impacts 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 143,373 350,000 406,224 374,850 376,740 170,000 170,000 174,773 174,825 176,715 450,000 450,000 450,000 450,000 - - - 200,000 200,000 200,000 200,000 - 525,000 525,000 525,000 225,000 2031 2032 2033 2034 2035 525,000 - - 225,000 225,000 225,000 184,199 151,078 - - Actual 1,001,003 1,003,863 1,001,658 999,138 1,001,553 1,003,548 999,086 998,844 600,000 600,000 600,000 600,000 (401,003) (200,000) (150,000) (150,000) (100,000) (100,000) (50,000) (50,000) 2028 2029 Moved to Road & Bridge Levy 2031 250,000 250,000 493,373 576,224 544,850 551,513 624,825 626,715 650,000 650,000 725,000 725,000 750,000 750,000 825,000 825,000 850,000 850,000 68,377,634 600,000 603,863 651,658 649,138 701,553 703,548 749,086 748,844 1,572,173 478,903 501,644 662,819 658,094 658,094 662,557 660,419 663,344 662,189 660,719 658,934 662,084 659,512 661,874 658,514 659,498 (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) (45,300) 189097274 18,640,192 19,199,398 19,775,380 1,276,780 1273,263 1274,628 1,269,745 1273,650 1,269,824 1,268,689 1,265,513 975,000 975,000 975,000 975,000 433,603 456,344 617,519 612,794 612,794 617,257 615,119 618,044 616,889 615,419 613,634 616,784 1,589,212 1,591,574 1,588,214 1,589,198 184,199 151,078 - - Dependent upon operational revenues exceeding operational expenditures Actual 1,001,003 1,003,863 1,001,658 999,138 1,001,553 1,003,548 999,086 998,844 (401,003) (200,000) (150,000) (150,000) (100,000) (100,000) (50,000) (50,000) 2028 2029 Moved to Road & Bridge Levy 2031 2032 2033 2034 2035 (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) 55,597274 57265,192 58,983,148 60,752,642 62,575222 64,452,478 66,386,053 68,377,634 600,000 603,863 651,658 649,138 701,553 703,548 749,086 748,844 1,572,173 - 1,667,918 - - - 1,877257 1,933,574 1,111,175 1,183,646 1,762,369 1,768,170 1,889,277 1,893,110 1,966,672 1,971,592 2,090,975 2,089,263 L363,634 1,366,784 2,414,212 2,416,574 2,438,214 2,439,198 3.00% 3.00% 3.00% 3.00% Gross Tax Levy 14,479,586 14,913,945 16,107254 17,073,084 189097274 18,640,192 19,199,398 19,775,380 1,276,780 1273,263 1274,628 1,269,745 1273,650 1,269,824 1,268,689 1,265,513 1,265,404 1,273,309 1,274,070 1,278,900 - - - - (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) - - - - 1,176236 1,179,570 1,177208 1,178,783 1,178,783 1,177208 1,179,308 1,174,320 1,178258 1,177,628 1,175,738 1,177,838 1,176,998 1,175,370 1,178205 1,174,845 (175,146) (202,604) (163,143) (150,000) (150,000) (159,107) - Revenues 12,686,944 - 13,4579704 13,836,917 1,977,870 1,950,229 1,988,693 1,998,528 2,002,433 1,987,925 2,147,997 2,139,833 2,143,662 2,150,937 2,149,808 2,156,738 1,176,998 1,175,370 1,178,205 1,174,845 3.089,045 3,133,875 3,751,062 3,766,698 3,891,710 3,881,035 4,114,669 4,111,425 4 234 637 4,240,200 3513,442 3523,522 3,591,210 3,591.944 3,616,419 3,614,043 13,119,831 44,830 617,187 15,636 125,012 (10,675) 233,634 (3244) 123,212 5,563 (726,758) 10,080 67,688 734 24,475 (2,376) 3.59% 1.45% 19.69% 0.42% 3.32% -0.27% 6.02% -0.08% 3.00% 0.13% -17.14% 0.29% 1.92% 0.02% 0.68% -0.07% Dependent upon operational revenues exceeding operational expenditures Actual Actual Actual Estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Tax Capacity Value 36,099,539 37,366,775 40210,548 50267,978 52,405,763 53,977,936 55,597274 57265,192 58,983,148 60,752,642 62,575222 64,452,478 66,386,053 68,377,634 70,428,963 72,541,832 1,267236 2,843,773 10,057,430 2,137,785 1,572,173 1,619,338 1,667,918 1,717,956 1,769,494 1,822,579 1,877257 1,933,574 1,991,582 2,051,329 2,112,869 3.51% 7.61% 25.01% 4.25% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Gross Tax Levy 14,479,586 14,913,945 16,107254 17,073,084 189097274 18,640,192 19,199,398 19,775,380 20,368,641 20,979,701 21,609,092 22,257,364 22,925,085 23,612,838 24,321223 25,050,860 434,359 1,193,309 965,830 1,024,190 542,918 559,206 575,982 593,261 611,059 6299391 648,273 667,721 687,753 708,385 729,637 3.00% 8.00% 6.00% 6.00% 3.00% 3.00% 3.00% 3,00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% General Fund Revenues 12,686,944 12,813,448 13,4579704 13,836,917 14,506,539 14,941,735 15,389,987 15,851,687 16,327,237 16,8179055 17,321,566 17,841213 18,376,450 18,927,743 19,495,575 20,080,443 1.00% 5.03% 2.82% 4.84% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expenditures 12,395,879 12,841,424 13,119,831 14,193,060 14,9759613 15,312,564 15,657,097 16,009,382 16,369,593 16,737,909 17,114,512 17,499,588 17,893,329 18295,929 18,707,587 19,128,508 3.59% 2.17% 8.18% 5.51% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% Fund Balance 9,654,518 9,626,466 9,964,339 9,608,196 9,139,122 8,768293 8,501,183 8,343,488 8,301,133 8,380279 8,587,334 8,928,959 9,412,080 10,043,894 10,831,882 11,783,817 Fund Balance% of Expenditures 77.88% 74.96% 75.95% 67.70% 61.03% 57.26% 54.30% 52.12% 50.71% 50.07% 50.18% 51.02% 52.60% 54.90% 57.90% 61.60% H USA° o PIN2* MKT_VALUE LAND -VALUE BLDG -VALUE CLS -VALUE USE -CODE SECTION TOWNSHIP RANGE QTR_QTR 8118 3,285,004,200 828,347,100 2,456,657,100 3,285,004,200 1 Total Residential Single Unit 21 97,541,200 6,942,800 90,598,400 97,541,200 2 Total Appartments 81 166,622,200 61,483,500 105,138,700 166,622,200 6 Total Commercial 12 23,681,500 7,318,100 16,363,400 23,681,500 7 Total Industrial 4 12,574,900 5,935,300 6,639,600 12,574,900 8 Total Public Utility 1 4,248,100 4,248,100 - 4,248,100 9 Total Railroads 231 16,278,800 16,278,800 16,278,800 21 Total Residential Bare Land 3 158,100 158,100 - 158,100 22 Total Apartment Bare Land 15 5,746,100 5,744,000 2,100 5,746,100 26 Total Commercial Bare Land 1 32,300 32,300 - 32,300 27 Total Industrial Bare Land 193 180,551,100 44,385,600 136,165,500 180,551,100 30 Total Exempt 1 1,191,000 463,700 588,800 1,191,000 31 Total Agriculture 2A- Land w/Buildings > 34.5 AC 6 3,569,000 1,275,000 1,723,500 3,569,000 36 Total Agriculture 2A - Land w/Buildings <34.5AC 7 2,469,100 2,469,100 - 2,469,100 37 Total Agriculture 2A -Bare Land <34.5AC 2 531,300 531,300 - 531,300 39 Total Rural Vacant 2B -Bare Land <34.5AC 1 1,509,500 1,480,000 29,500 1,509,500 47 Total Mixed 2A, 2B - Land w/Buildings >34.5AC 4 5,390,200 5,390,200 - 5,390,200 48 Total Mixed 2A, 2B - Bare Land > 34.5 AC 2 422,300 422,300 422,300 50 Total Mixed 2A, 2B - Bare Land < 34.5 AC 3 47,500 47,500 47,500 98 Total Tax Forfeit 11 - - - <Nutt> Total 8,717 3,807,568,400 992,952,800 2,813,906,600 3,807,568,400 Grand Total Parcels Inside MUSA 8,118 $ 3,285,004,200 $ 828,347,100 $ 2,456,657,100 $ 3,285,004,200 Residential Single Unit (l) AVG: $ 404,657 21 97,541,200 6,942,800 90,598,400 97,541,200 Apartments (2) 109 196,082,100 74,577,900 121,504,200 196,082,100 Industrial/Commercial (6,7,26,27) 5 16,823,000 10,183,400 6,639,600 16,823,000 Utilities(8,9) 193 180,551,100 44,385,600 136,165,500 180,551,100 Government, Church, Non -Profit (30) 8 6,269,500 3,218,700 2,341,800 6,269,500 Land w/ Buildings - Rural / Agriculture (31,36,47) 249 25,249,800 25,249,800 - 25,249,800 Bare Land - Rural / Agriculture (21,22,37,39,48,50) 3 47,500 47,500 47,500 Tax Forfeit (98) 11 - - - <Null> Total 8,717 $ 3,807,568,400.0 $ 992,952,800.0 $ 2,813,906,600.0 $ 3,807,568,400.0 PIN2* MKT_VALUE LAND -VALUE 2945 1,378,595,000 448,367,400 4 3,093,100 1,751,700 13 7,205,900 2,010,100 3 1,895,700 100,100 3 2,559,400 2,559,400 199 17,682,400 17,682,400 2 306,800 306,800 100 37,309,000 20,004,100 4 3,611,200 1,671,000 17 6,733,700 6,733,700 1 471,900 456,900 4 980,800 980,800 22 9,970,400 2,822,900 41 7,229,700 7,229,700 10 1,963,600 1,963,600 4 2,415,000 984,100 14 6,232,000 6,232,000 10 5,737,500 1,374,400 5 1,301,400 1,301,400 2 200 200 6 - <Null>Total 3,409 1,495,294,700 524,532,700 BLDG -VALUE CLS -VALUE USE _CODE SECTION TOWNSHIP RANGE QTR QTR 930,227,600 1,378,595,000 1Total Residential Single Unit 1,341,400 3,093,100 6 Total Commercial 5,195,800 7,205,900 7 Total Industrial 1,795,600 1,895,700 8 Total Public Utility - 2,559,400 9 Total Railroads 100 17,682,400 21 Total Residential Bare Land - 306,800 27 Total Industrial Bare Land 17,304,900 37,309,000 30 Total Exempt 1,652,200 3,611,200 31 Total Agriculture 2A - Land w/Buildings >34.5AC - 6,733,700 32 Total Agriculture 2A -Bare Land >34.5AC 15,000 471,900 33 Total Rural Vacant 2B - Land w/Buildings >34.5AC - 980,800 34 Total Rural Vacant 2B -Bare Land >34.5AC 4,626,600 9,970,400 36 Total Agriculture 2A- Land w/ Buildings <34.5 AC - 7,229,700 37 Total Agriculture 2A -Bare Land <34.5AC - 1,963,600 39 Total Rural Vacant 2B -Bare Land <34.5AC 854,900 2,415,000 47 Total Mixed 2A, 2B - Land w/ Buildings> 34.5 AC - 6,232,000 48 Total Mixed 2A, 2B - Bare Land > 34.5 AC 3,101,100 5,737,500 49 Total Mixed 2A, 2B- Land w/Buildings < 34.5 AC - 1,301,400 50 Total Mixed 2A, 2B - Bare Land < 34.5 AC 200 98 Total Tax Forfeit - - <Null>Total 966,115,100 1,495,294,700 Grand Total Parcels Outside MUSA 2,945 $ 1,378,595,000 $ 448,367,400 $ 930,227,600 $ 1,378,595,000 Residential Single unit (1) Avg: $ 468,114 19 10,605,800 4,068,600 6,537,200 10,605,800 Industrial / Commercial (6,7,27) 6 4,455,100 2,659,500 1,795,600 4,455,100 Utilities (8.9) 100 37,309,000 20,004,100 17,304,900 37,309,000 Government, Church, Non-Profit(30) 41 22,206,000 7,309,300 10,249,800 22,206,000 Land w/ Buildings - Rural / Agriculture (31,33,36,47,49) 290 42,123,600 42,123,600 - 42,123,600 Bare Land - Rural / Agriculture (21,32,34,37,39,48,50) 2 200 200 200 Tax Forfeit (98) 6 _ _ - <Null> Total 3,409 $ 1,495,294,700 $ 524,532,700 $ 966,115,100 $ 1,495,294,700 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2025 Budget Development Guidelines Discussion DATE: April 23, 2024 INTRODUCTION City Administration and Finance are starting to focus on the 2025 Annual Operating Budget Development process and are looking to the City Council to establish the Council's guidelines for the preparation of the 2025 Annual Operating Budget. DISCUSSION The following are suggested 2025 Budget Development guidelines (like 2024) for consideration and could be impacted by the Councils discussion: 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness using sustainable revenue sources and operational efficiencies. (attached is summary data from Anoka County regarding the 2024 assessment for pay 2025 property taxes, also see attached Homestead Market Value Exclusion changes for pay 2025 property taxes) 2) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2025 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management & information technology) through targeting revenue enhancements or expenditure limitations in the 2024 adopted General Fund budget. 3) A commitment to limit the 2025 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. 4) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced based on a cost benefit analysis rather than a year -based replacement schedule. 5) The use of long-term financial models that identify anticipated trends in community growth and financial resources that will help designate appropriate capital resources for future City needs. The financial models will be used in the budget planning process to ensure that key short-term fiscal targets are in line with long-term fiscal projections. 6) Continued commitment to strategic planning targeted toward meeting immediate and long- term operational, staffing, infrastructure and facility needs. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns, and demands, and to do so in a cost-effective manner. ACTION REQUESTED The Council is requested to review and discuss the proposed Budget Development guidelines, discuss whether they are appropriate for developing the 2025 Annual Operating Budget. submitted, -Median Estimated Market Value — 2024 Assessment -Anoka County EMV's — Assessments 2023 & 2024 -Homestead Market Value Exclusion changes (State of Mn) Median Estimated Market Value 2024 Assessment City/Township Median Value Median Change 0010:LINW00DTOWNSHIP $ 371,900 0.76% 0100:ANOKA CITY $ 290,400 -1.660/a 0200:13ETHELCITY $ 257,600 -0.080/0 0300:AN DOVER CITY $ 399,100 -0.20.5 0400:CENTERVILLECITY $ 360,900 0.98% 0500:COL HEIGHTS CITY $ 270,500 -0.55% 0600:CIRCLE PINES CITY $ 278,900 -2.74% 0700:NOWTHEN CITY $ 456,100 0.53% 0800: FRIDLEY CITY $ 289,600 1.44% 0900:LEXINGTON CITY $ 286,250 -0.87% 1000:COON RAPIDS CITY $ 297,800 2.02% 1200:RAMSEYCITY $ 351,900 0.96% 13001INO LAKES CITY $ 406,300 -0.67% 1400:EASTBETHELCITY $ 360,750 0.49% 1500:HILLTOPCITY $ 143,350 L 0.4 ° 1600:ST FRANCIS CITY $ 307,650 1.05% 1700:HAM LAKE CITY $ 458,100 N 2.69% 1800:OAK GROVE CITY $ 413,100 0.27% 1900:COLUMBUS CITY $ 436,250 0.80% 6200:13LAINE CITY $ 339,900 0.71% 8700:SPRING LK PK CITY $ 285,200 -0.83% Countywide $ 331,200 0.64% Values above reflect Estimated Market Values which do not factor I n va I ue reducti on attributed to Homestead Excl us ions Anoka County PROPERTY RECORDS A TAXATION DIVISION Last Updated: 3/13/2024 1t'�t Anoka County EMV's Asessments 2023 & 2024 0010:UNWOOD TOWNSHIP 2024 EMV 2024 NC 2024EMV 2023 EMV %Change Less N/C Agricultural $ 35,746,500 $ 461,500 $ 35,285,000 $ 33,657,000 4.84% Apartment/MHP $ 4,163,500 $ - $ 4,163,500 $ 3,712,000 12.16% Commercial/industrial $ 3,566,900 $ - $ 3,566,900 $ 3,406,200 4.72% Personal Property' $ 8,508,400 $ - $ 8,508,400 $ 8,511,100 .0.03% Resldential $ 825,2300 $ 5,808,600 $ 819,426,400$ 820,122,200 -0.08% Totals $ 877,220,3005,0 $ 6,270,100 $ 870,950,200 $ 869,408,500 0100:ANORA CITY 2024 EMV 204 NC 2024 EMV 2023 EMV %Change Less N/C Apartment/MHP $ 405,537,700 $ 17,060,000 $ 388,469,700 $ 412,015,600 -5.71% Commerclal/Industrial $ 477,015,200 $ 8,448,400 $ 468,566,800 $ 472,706,400 -0.88% Personal Property' $ 15,216,600 $ - $ 15,216,600 $ 15,207,200 0.06% Resldentlal 94,730,720 5 7,264,700 $ 1,487,465,500 $ 1,513,781,200 -1.74% 2,4289900$Toals 32,781,100 $ 2,359,718,600 $ 2,413,730Ap -2.24% 0200:BETHELC" 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 682,700 $ - $ 682,700 $ 657,800 3.79% Apartment/MHP $ 451,300 $ - $ 451,300 $ 425,700 6.01% Commercial/Industrial $ 8,156,800 $ - $ 8,156,800 $ 7,702,200 5.90% Personal Property' $ 1,655,300 $ - $ 1,655,300 $ 1,655,300 0.00% Residential $ 47,353,000 $ 954,700 $ 46,396,300 $ 46,243,300 0.33% Totals $ 58,297,100 $ 954,700 $ 57,342,400 $ 56,684,300 1.161A 0300:ANDOVER CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 63,288,300 $ 37,600 $ 63,250,700 $ 57,854,300 9.33% Apartment/MHP $ 98,439,400 $ 31,864,300 $ 66,575,100 $ 69,939,100 4.81% CommerclaVindustrial $ 213,525,000 $ 2,669,800 $ 210,855,200 $ 205,246,200 2.73% Personal Property $ 38,538,000 $ - $ 38,538,000 $ 38,535,300 0.D1% Residential $ 4,696,168,500 $ 34,780,900 $ 4,661,387,600 $ 4,659,005,400 0.05% Totals $ 51109,959,200 $ 69,%'ZW0 $ 5,040,606,600 S 5,030,580,300 020% sit 1,4°;,p 0400:0ENTERVILLECITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 1,588,300 $ - $ 1,588,300 $ 1,386,400 14.56% Apartment/MHP $ 9,495,500 $ - $ 9,495,500 $ 9,892,400 4.01% Commercial/Industrial $ 102,349,400 $ 23,760,500 $ 78,588,900 $ 73,537,900 6.07% Personal Property' $ 1,023,300 $ - $ 1,023,300 $ 1,023,300 0.00% Residential $ 590,741,100 $ 2,455,600 $ 588,285,500 $ 572,356,600 2.78% Totals —$ 705,197,600 $ 26,216,100 $ 678,981,500 $ 658,196,600 A Anoka County NOIIITY aa;O 209 aa1AXAT IOM OIVI910n a Last Updated: 3/13/2024 0500:COL HEIGHTS CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Apartment/MHP $ $ 312,012,500 $ 4,966,100 $ 307,046,400 $ 351,446,900 -12.63% Commercial/Industrial $ $ 168,183,900 $ 2,972,500 $ 165,211,400 $ 159,730,800 3,4391 Personal Property" $ $ 13,491,900 $ - $ 13,491,900 $ 13,491,900 0.00% Residential$ $ 1,796,894,200 $ 2,402,500 $ 1,794,491,700 $ 1,788,856,600 0.32% Residential Totals 10 $ 2,3,348,800 $ 4],527,100 $ 2,262,821,700 $ 2,313,526,200 _2,1951 0600:CIRCLE PINES CITY Totals $ 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Apartment/MHP $ 32,219,800 $ - $ 32,219,800 $ 34,365,000 _6,24% Commercial/Industrial $ 19,866,500 $ - $ 19,866,500 $ 19,189,000 3.53% Personal Property $ 607,300 $ - $ 607,300 $ 607,300 0.00% Residential $ 579,655,500 $ 863,700 $ 578,791,800 $ 585,724,000 -1.18% Totals $ 632,349,100 $ 863,700 $ 631,485,400 $ 639,885,300 -1.31% 0700:NOWTHEN CITY 2024EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 151,530,600 $ 95,700 $ 151,434,900 $ 143,734,000 5.36% Commercial/Industrial $ 46,196,500 $ 1,008,100 $ 45,188,400 $ 38,728,000 16.68% Personal Property- $ 16,536,300 $ - $ 16,536,300 $ 16,529,500 0.04% Residential $ 702,293,000 $ 5,178,000 $ 697,115,000 $ 697,698,600 _009% Totals $ 916,556,400 $ 6,281,800 $ 910,274,600 $ 896,690,100 1.51% 0900:FMDLEYCITY 2024EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Apartment/10HP $ 634,038,400 $ 1,961,000 $ 632,077,400 $ 663,594,900 -4.75% Commercial/Industrial $ 1,486,027,200 $ 1,674,600 $ 1,484,352,600 $ 1,309,026,000 13.39% Personal Property" $ 58,839,500 $ - $ 58,839,500 $ 58,824,300 0.03% Residential $ 2,362,859,900 $ 3,676,400 $ 2,359,183,500 $ 2,347,238,900 0.51% Totals $ 4,541,765,000 $ 7,312,000 $ 4,534,453,000 $ 4,378,684,100 3.56% 0900:1-MINGTON CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Apartment/MHP $ 156,011,300 $ 10,215,000 $ 145,796,300 $ 154,240,300 -5.47% Commercial/Industrial $ 25,334,300 $ 49,700 $ 25,284,600 $ 24,904,400 1.53% Personal Property $ 428,000 $ - $ 428,000 $ 428,000 0.00% Residential $ 157,417,100 2 455,800 $ 156,961,300 $ 158,216,700 -079% Totals $ 339.190.]00 S 10]20.500 S a2R Ain 2nn < xai asa nm ...,.., 1000:COON RAPIDS CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 3,734,300 $ 11,100 $ 3,723,200 $ 3,613,000 3.05% Apartment/MHP $ 773,879,800 $ 20,647,500 $ 753,232,300 $ 792,153,000 -4.91% Commercial/Industrial $ 1,344,453,500 $ 38,147,200 $ 1,306,306,300 $ 1,257,284,000 3,90% Personal Property" $ 62,439,500 $ - $ 62,439,500 $ 62,558,100 -0.19% Residential $ 6,265,289,800 $ 24,459,800 $ 6,240,830,000 $ 6,152,026,500 144% Totals $ 8,449,796,900 $ 83,265,600 $ 8,366,531,300 $ 8,267,634,600 1.20% A Anoka County :OOP12T Y' a' 6CO205 i1%ATIO N OI VI510H Last Updated: 3/13/2024 1200:RAMSEYCITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less WC Agricultural $ 48,824,400 $ - $ 48,824,400 $ 50,930,500 -4.14% Apartment/MHP $ 207,823,200 $ - $ 207,823,200 $ 230,003,700 -9.64% Commercial/Industrial $ 662,897,200 $ 29,729,700 $ 633,167,500 $ 641,845,200 -1.35% Personal Property- $ 36,902,600 $ - $ 36,902,600 $ 36,166,100 2.04% Residential $ 3,603,089,600 $ 53,739,200 $ 3,549,350,400 $ 3,540,443,400 0.25% Totals $ 4,559,537,000 $ 83,468,900 $ 4,476,068,100 $ 4,499,388,900 -0.52% 13001IN0 LAKES CITY 2024EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 69,169,900 $ 46,800 $ 69,123,100 $ 62,773,300 10.12% Apartment/MHP $ 86,908,200 $ 18,867,100 $ 68,041,100 $ 68,470,500 -0.63% Commercial/Industrial $ 324,511,400 $ 7,690,500 $ 316,820,900 $ 289,695,200 9.36% Personal Property" $ 19,849,800 $ - $ 19,849,800 $ 19,838,800 0.06% Residential $ 3,197,910,700 $ 54,369,900 $ 3,143,540,800 $ 3,172,723,000 -0.92% Totals $ 3,698,350,000 $ 80,974,300 $ 3,617,375,700 5 3,613,500,800 0.111/ 1400:EAST BETHEL CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 72,893,400 $ 1,209,700 $ 71,683,700 $ 63,958,900 12.08% Apartment/MHP $ 49,213,600 $ 58,400 $ 49,155,200 $ 41,734,700 17.78% Commercial/Industrial $ 128,043,000 $ 10,028,400 $ 118,014,600 $ 110,654,700 6.65% Personal Property" $ 9,927,000 $ - $ 9,927,000 $ 9,927,000 0.00% Residential $ 1,609,835,300 $ 6,688,500 $ 1,603,146,800 $ 1,595,789,900 0.46% Totals $ 1,969,912,300 $ 17,985,000 $ 1,851,927,300 $ 1,822,065,200 1.64% 1500:HILLTOP CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Apartment/MHP $ 19,547,300 $ - $ 19,547,300 $ 18,414,700 6.15% Commercial/Industrial $ 26,330,900 $ - $ 26,330,900 $ 25,648,000 2.66% Personal Property $ 164,500 $ - $ 164,500 $ 164,500 0.00% Residential $ 5,420,100 $ $ 5,420,100 $ 5,408,900 0.21% Totals $ 51,462,800 $ - $ 51,462,800 $ 49,636,100 3.68% 3600:51 FRANCIS CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Agricultural $ 59,902,000 $ 144,000 $ 59,758,000 $ 55,299,500 8.06% Apartment/MHP $ 41,155,100 $ - $ 41,155,100 $ 41,353,300 -0.48% Commercial/Industrial $ 59,146,800 $ 1,414,100 $ 57,732,700 $ 53,159,000 8.60% Personal Property' $ 5,359,100 $ - $ 5,359,100 $ 5,359,100 0.00% Residential $ 830,053,400 $ 7,913,700 $ 822,139,700 $ 820,718,600 0.17% Totals $ 995,616,400 $ 9,471,800 $ 986,144,600 $ 975,889,500 1.05% Anoka County PROpFRiY a cop 056 TA%ATION 01V1 SION Last Updated: 3/13/2024 t 6� �b 1700:HAM LAKE CITY 2024 EMV 2024 NC 2024EMV 2023 EMV %Change Less N/C Agricultural $ 64,185,500 $ 154,100 $ 64,031,400 $ 58,972,900 8.58% Apartment/MHP $ 28,389,300 $ 75,000 $ 28,314,300 $ 27,398,300 3 34% Commercial/Industrial $ 294,354,900 $ 6,520,000 $ 287,834,900 $ 266,503,]00 8.00% Personal Property- $ 17,565,000 $ - $ 17,565,000 $ 17,539,900 0.14% Residential$ 2,734,903,300 $ 31,662,600 $ 2,703,240,700 $ 2,666 239 900 1.39% Totals $ 3,139,398,000 $ 38,411,700 $ 3,100,986,300 $ 3,036,654,700 2,12% 1800:OAK GROVE CITY 2024 EMV 2024NC 2024EMV 2023 EMV %Change Less N/C Agricultural $ 58,381,800 $ - $ 58,381,800 $ 58,971,100 -7.00% Commercial/Industrial $ 45,556,400 $ 893,900 $ 44,662,500 $ 41,426,900 7.81% Personal Property" $ 14,439,200 $ - $. 14,439,200 $ 14,439,200 0.00% Residential $ 1,488,077,900 $ 18,995,100 $ 1,469,082,800 $ 1,459,101,100 0 68% Totals 11 1,606,455,300 $ 19,889,000 $ 1,586,566,300 $ 1,573,938,300 0.80% 1900:COLUMBUS CITY 2024EMV 2024 NC 2024 EMV 2023 EMV %Change Less WC Agricultural $ 65,186,000 $ 206,000 $ 64,980,000 $ 65,133,800 .0,24% Commercial/Industrial $ 168,130,300 $ 5,105,200 $ 163,025,100 $ 160,979,200 1,27% Personal Property $ 5,816,100 $ - $ 5,816,100 $ 5,816,100 0.00% Residential$ ]69,225,700 2 6,204,900 $ 763,020,800 $ 755,551,200 099% Totals $ 1,008,358,100 $ 11,516,100 $ 996,842,000 $ 987,480,300 0.95% 6200:BLAINE CITY 2024 EMV 2024 NC 2024EMV 2023 EMV %Change Less N/C Agricultural $ 15,501,900 $ - $ 15,501,900 $ 15,747,200 Apartment/MHP $ 635,992,400 $ 72,697,000 $ 563,295,400 $ 590,808,400 .56% -44.66% Commercial/Industrial $ 1,827,107,800 $ 45,040,400 $ 1,782,067,400 $ 1,726,811,100 3.20% Personal Property' $ 110,155,600 $ - $ 110,55,600 $ 106,287,900 Residential $ 8,819,589,900 $ 14,838,100 $ 8,804,]751,800 $ 8 650 317400 9% 1.79% 1 7g% Totals $ 11,408,347,600 $ 132,575,500 $ 11,275,772,100 $ 11,089,972,000 .7 1.687 8700:SPRING LK PK CITY 2024 EMV 2024 NC 2024 EMV 2023 EMV %Change Less N/C Apartment/MHP $ 135,050,700 $ - $ 135,050,700 $ 142,513,00 -5.245/o Commercial/Industrial $ 174,279,000 $ 948,200 $ 173,330,800 $ 168,989,6600 2.57% Personal Property $ 1,130,900 $ - $ 1,130,900 $ 1,130,900 0.00% Residential 2584,504,800 $ 1,232,500 $ 583,272,300 $ 583,712,800 008% Totals $ 894,965.400 5 2.190.71710 S Rao 7RA inn < Anoka County GRRORERT^ RECOPOSI T! TIOR.NISI.. Last Updated: 3/13/2024 9C�\b 02:Anoka County 2024 EMV 2024NC 2024 EMV 2023 EMV %Change Less NIC Agricultural $ 710,615,600 $ 2,366,500 $ 708,249,100 $ 672,689,700 5.29% Apartment/MHP $ 3,630,326,000 $ 178,419,400 $ 3,451,906,600 $ 3,652,482,300 -5.49% Commercial/Industrial $ 7,605,032,900 $ 186,101,200 $ 7,418,931,700 $ 7,057,173,700 5.13% Personal Property" $ 438,593,900 $ 284,800 $ 438,309,100 $ 434,040,800 0.98% Residential $ 43,163,235,000 $ 417,488,200 $ 42,745,746,800 $ 42,589,276,200 0.37% Totals $ 55,547,803,400 $ 784,660,100 $ 54,763,143,300 $ 5,405,662,700 *Personal Property includes Locally Assessed & State Assessed Property. State Assessed Proprty Values are not available until July so prior year State Assessed Values are included in the 2024 EMV Numbers above. A Anoka County R 0148 11 REcOROit rA%ATION 01VI51 On Last Updated: 3/13/2024 Agricultural % EMV change to existing properties 2024 Assessment ', Anoka County n RORRrITYl RROORORRTAIAIIOM OIVIRION uty 4yMnata Last Updated: 3/13/2024 ( Isant. +1.6% cnsgo SnPlbll,lp 0.0% Anoka vmyht +5.3% +.17% -0.2% Mememn Ramsey Washngtw +2.4% -2.8% Carver +9.5% Scott Dakota Sibley +2% +4.4% +2.8% Le Sue/1 Rke Residential % EMV change to existing properties 2024 Assessment Anoka County IM011211 41C0R06111;.TION DIVISION pn.v[:M Inmro�p FVC•1 ,1nn^nu0u Last Updated: 3/13/2024 ".'j 6�, \0 _1 +3.64% chm9 Sherhurne +2.0% --- —, Wright +0.40 -.85% +4.2% HennepinRamsey. Vl35Nfgt0{1 +0.4% -2.49 Calve, +1.2% Scott Dakota Sibley +3.7% -0.1% +4.9% Le Sueul Rice Multi -family ---1 % EMV change to existing properties 2024 Assessment Isanti -- Sherburne +8.7% C"L' +10% Amka Wright +8.96% -4% Hennepin i Rarrrsey WasMngtpn +0.3% Carver +0.9% —� Scott _ oar Sibley -3% -1.9% .- i Le Sueur +10% Anoka County Rice .n01 l12 TY nro .IvO iO YoT4YA eIOX XIV1910N - a - — Last Updated: 3/13/2024 - - Commercial % EMV change to existing properties 2024 Assessment Shabur e +12.5% want +6.97% Isanu +9.25% ch"go +2.5% Hem"n RaIrWWashngton -2.7% +0.2% Cater -- Scott — saer t +6% +7.5 Le Sueur Rke Anoka County 040r6011 e1p010s.r�AXS110x OIVIIIox Last Updated: 3/13/2024 Dakota +4.8% Industrial % EMV change to existing properties 2024 Assessment wngia +5.68% Sider Anoka County S1100601Y 55q OftD5 a T*XITION DIV1510M Last Updated: 3/13/2024 Ismti +9.07% 0.0% cant +6.3% Moka +5.8% -1.4% Hennepn Ramsey Wa&hirgcai +3.1% +0.8% Scott Dakota +7% +5.1% +6.4% Le Suelu Rice 3/15/24, 11:38 AM revenue.state.mn.us/mndor-pp/17741 ?type=html DEPARTMENT Published on Minnesota Department of Revenue (https://www.revenue.state.mn.us) M` �(� 11 OF REVENUE Last Updated March 05, 2024 l `d-- Homestead Market Value Exclusion The Market Value Exclusion reduces the taxable market value for property classified as homestead. By decreasing the taxable market value, net property taxes are also decreased. For more information about homestead, see Homestead Classification. Note: For taxes payable in 2024 the maximum exclusion amount is $30,400 for properties valued at $76,000, with no exclusion for properties valued over $413,800. For taxes payable In 2025 the maximum exclusion amount was increased to $38,000 for properties valued at $95,000, V with no exclusion for properties valued over $517,200. Manufactured homes may be eligible for the larger exclusion for taxes payable in 2024. How the Exclusion Works The exclusion reduces the taxable market value of qualifying homestead properties. By decreasing the taxable market value, net property taxes are also decreased. How the Exclusion is Calculated for Taxes Payable in 2024 For homesteads valued at $76,000 or less, the exclusion is 40% of the market value, creating a maximum exclusion of $30,400. The exclusion is reduced as property values increase, and phases out for homesteads valued at $413,800 or more. Properties that are partial homesteads (for example, when only one of two owners lives there) will have a reduced exclusion How the Exclusion is Calculated for Taxes Payable in 2025 and Beyond For taxes payable In 2025: For homesteads valued at $95,000 or less, the exclusion is 40% of the market value, creating a maximum exclusion of $38,000. The exclusion is reduced as property values increase and phases out for homesteads valued at $517,200 or more. Properties that are partial homesteads (for example, when only one of two owners lives there) will have a reduced exclusion httl)s://www.revenue.state.mn.uslmndor-pp/l7741?tvpe=html 112 3/15/24, 11:38AM revenue.state.mn. us/condor-pp/17741 ?type=html Examples Example 1: A residential homestead with an estimated market value of $280,000 Since this property has a value over $95,000 we need to determine the amount of value over $95,000. Next, we multiply that amount by 9% to determine the reduction from the maximum of $38,000. This example has an exclusion amount of $21,350. Homestead Market Value Exclusion Calculation: 1. Initial/Maximum Exclusion: $95,000 x 40%= $38,000 2. Value over $95,000: $280,000 - $95,000 = $185,000 3. Benefit Reduction Amount: $185,000 x 9%= $16,650 4. Final Exclusion Amount: $38,000 - $16,650 = $21,350 5. Taxable Market Value: $280,000 - $21,350 = $258,650 As you can see, this reduces the property's taxable value from $280,000 to $258,650. Example 2: Residential homestead with an estimated market value of $350,000. The value of the property has increased therefore the exclusion amount for this property will be reduced. Since this property has a value over $95,000, we need to determine the amount of value over $95,000. Next, we multiply that amount by 9% to determine the reduction from the maximum of $38,000. This example has an exclusion amount of $15,050. Homestead Market Value Exclusion Calculation 1. Initial/Maximum Exclusion: $95,000 x40%= $38,000 2. Value over $95,000: $350,000 - $95,000 = $255,000 3. Benefit Reduction Amount: $255,000 x 9%= $22,950 4. Final Exclusion Amount: $38,000 - $22,950 = $15,050 5. Taxable Market Value: $350,000 - $15,050 = $334,950 As you can see, this reduces the property's taxable value from $350,000 to $334,950. httos://www.revenue.state.mn.us/condor-oo/17741?tvoe=html 212