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Budget 2024
Each year, the City of Faribault embarks on a months-long journey of preparing its budget for the next fiscal year (which starts Jan. 1). The process begins with City staff, and then proceeds to the City Council and the residents of Faribault. Moving forward, you can stay up-to-date on the process by visiting this page, which highlights a timeline on the left, features documentation to the City Council throughout the process and explores a much deeper dive into the budgeting process below.
June 20 - Budget Work Session #1 - Goal Setting Session
July 5 - Budget Work Session #2 - Long-Term Financial Management Plan
- Council Work Session Memorandum
- Financial Management Plan - July 2023
- Long-Term Financial Management Plan presentation
July 18 - Budget Work Session #3 - Personnel, Fee Schedule, Franchise Fees, and General Overview
- Council Work Session Memorandum
- Property Tax Levy History 1999-2023
- Local Government Aid History 1999-2023
- Property Tax and LGA History 1999-2023
- Property Tax Rate History 1999-2023
- 2024 Organizational Chart
- 2020-2024 Personnel Comparisons
- 2023-2024 Debt Levy
- 2024 Tax Levy Calculation
- 2024 Fee Schedule
- 2024 Franchise Fees - Revenue and Allocations
- 2024 General Overview, Personnel, Fee Schedule, Franchise Fees Presentation
Aug. 15 - Budget Work Session #4 - General Fund, Levies, and Tax Impact
- Council Work Session Memorandum
- 2024 Proposed General Fund Budget by Functions
- 2024 Estimated Tax Levy and Tax Rate Calculations
- Tax Levy History
- Tax Rate History
- LGA History
- General Fund Departmental Summaries
- 2024 Budget Presentation #4 - General Fund, Levies and Tax Impact
Sept. 5 - Budget Work Session #5 - Special Revenue (Including HRA & EDA) & Enterprise Funds
- Council Work Session Memorandum
- 2024 Special Revenue Funds Revenue Summary
- 2024 Special Revenue Funds Expenditure Summary
- 2024 Airport (225) Long-Term Financial Management Plan
- 2024 CED (240) Long-Term Financial Management Plan
- 2022 TIF Districts & Tax Abatement Report - Final
- 2023 - 09 Preliminary Tax Levy for Fiscal Year 2024
- 2023 - 10 Establish the EDA Preliminary Tax Levy for Fiscal Year 2024
- Special Revenue Funds Departmental Summaries
- Enterprise Long-Term Financial Management Plan - August 2023
- Enterprise Funds Departmental Summaries
- 2024 Estimated Tax Levy
- 2024 Budget Presentation #5 Special Revenue & Enterprise Funds
Sept. 12 - 2024 Preliminary Property Tax Levies and Establish the Budget Meeting Date
Sept. 19 - Budget Work Session #6 - 2024-2028 Capital Improvement Plan & Debt Service
- Council Work Session Memorandum
- 2024 Capital Project Funds Budget Detail
- 2024 Enterprise Funds Budget Detail
- Capital Improvement Plan 2024-2028
- 2024 Debt Service Funds Budget Detail
- 2022 Debt Management Report
- 2024 Presentation Budget Work Session #6 - CIP Capital & Debt Service Funds
Nov. 21 - Budget Work Session #7 - Final Review All Funds/Levies/Fees
Council Work Session Memorandum
- 2024 Property Tax Levy
- Property Tax Levy History
- Property Tax Rate History
- 2024 Budget Book
- 2024 - 2028 Capital Improvement Plan
- 2024 Fee Schedule
- 2024 Fee Schedule - Red-Lined
- 2024 Franchise Fee Distribution
- 2024 Budget Work Session 7 - Presentation
What happens before the budget process begins?
Each year, in late March to early April, homeowners across Faribault receive an annual publication titled, "Notice of Valuation and Classification for Taxes Payable for 2024" from the Rice County Assessor's Office. This notice shows the property’s estimated market value as of Jan. 2, 2023 - determined by the County Assessor's office - which is then used to calculate the following year’s taxes for the property and the tax property’s classification.
Rice County’s assessors collect actual sales data on all types of properties in the county, and analyze information such as location, parcel size, improvements and amenities to estimate what a buyer would pay for each property. You can learn more about this process by visiting the Rice County Assessor's website https://www.ricecountymn.gov/149/Assessors-Office.
The notice also lists various meetings called "Board of Appeal or Equalization meeting," which allows the County Assessor to hear objections from property owners regarding the valuation of their property for tax purposes.
Find below a video created by the League of Minnesota Cities that further explains and breaks down property taxes.
Now that the notices have been mailed and the appeals hearings have been held, it signals the start of the budgeting process for the City, which will continue until early December.
City of Faribault to begin budget process at June 20 Council meeting
A preliminary budget must be approved in September, and the final budget in December. The City Council is responsible for review, revision and adoption of the budget and tax levy.
We encourage members of the public to get involved, whether it be by following this page, visiting the Council meetings to hear about the budget proposals, or by attending one of the two public hearings (Sept. 12 and Dec. 5) . We will continue to update content on this page as the process unfolds. In the meantime, find below more details about the City of Faribault budget, and what it all entails.
WHAT MAKES UP THE BUDGET
The budget in its entirety is made up of many funds, including the General Fund, Special Revenue Funds, Debt Service, Capital Projects, Enterprise Funds, Internal Services Funds, Library Donation Special Revenue Fund, and Agency Funds. See below for a deeper dive into the fund, in addition to how it's used.
- The General Fund is funded primarily from ad valorem taxes (property taxes in proportion to the value) and Local Government Aid (LGA). The General Fund accounts for all revenues and expenditures of a governmental unit which are not accounted for in other funds. It is usually the largest and most important accounting activity for state and local governments, normally receiving a greater variety and number of taxes and revenues than any other fund.
- Special Revenue Funds are established for specific revenues or sources that are designated for financing particular functions or activities as required by federal regulations, state statute, City Charter provisions, local ordinances, or specific grant agreements. These funds include City, Housing and Rehabilitation Authority (HRA), and Economic Development Authority (EDA) funds. City special revenue funds include Charitable Gambling, Public Safety Programs, Airport, City Rental Property, Community Development, Rental Housing Rehabilitation, and SCDP Revolving Loan funds. The HRA special revenue funds include the HRA, Public Housing, and CRV Rehabilitation Program funds. The EDA special revenue funds include Industrial Development Revolving Loan, Federal Investment Revolving Loan, Minnesota Investment Revolving Loan, Tax Increment Financing funds, EDA, and EDA Revolving Loan funds.
- Debt Service Funds are used to account for the accumulation of resources for and the payment of principal, interest, and related costs on long-term general obligation debt of governmental funds.
- Capital Project Funds include the Street Improvement Projects Fund, Park Improvement Fund, Capital Replacement Fund, and Facility Maintenance Fund. Preliminary budgeted expenditures for these funds are detailed and included in the five-year Capital Improvement Plan. Expenditures for the Capital Replacement Fund are financed by or funded with franchise tax, grants, and fund balance. Expenditures for the Public Facility Projects Fund are funded with franchise tax and transfers from the General Fund and fund balance. Capital Project Funds are used to report major capital acquisitions and construction separate from ongoing operating activities.
- Enterprise Funds include the Water, Sewer, and Storm Water funds. Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public are financed or recovered primarily through user charges. These improvement projects are detailed in the five-year Capital Improvement Plan.
- Internal Service Funds include Workers Compensation and Property Liability. The City became fully insured for workers compensation with the League of Minnesota Cities in 2014. The existing Internal Service Fund is maintained to offset future costs of a single outstanding claim that was opened under the self-insured plan. Internal Service Funds provide centralized services primarily to other funds, departments or agencies of the City of Faribault. These services are provided on a cost reimbursement basis and are recovered through fees and charges.
- Agency Funds are used to account for assets held by the City as an agent for private organizations and for the various funds of other governmental units, most notably the Elderly Housing Corporation and Robinwood Manor.