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Mounds View City Council November 25, 2013 <br />Truth in Taxation Meeting Page 2 <br /> <br /> 1 <br />Finance Director Beer discussed the general fund operating expenditures by function. He 2 <br />explained TIF District 1 would decertify in 2013. He commented the City would receive 3 <br />$597,000 in LGA Funds from the State in 2014. He reported the City would not be responsible 4 <br />for paying sales tax in 2014. 5 <br /> 6 <br />Finance Director Beer reviewed the sample home tax impact with the Council noting across all 7 <br />home valuations, there would be a property tax decrease. He then provided a summary of the last 8 <br />five year’s budgets and requested the Council approve the 2014 budget summary with a 3% levy 9 <br />increase proposed for 2014. 10 <br /> 11 <br />Council Member Hull asked how the LGA funds would be used in 2014. Finance Director Beer 12 <br />suggested the funds be placed in the Special Projects Fund, along with the Vehicle and 13 <br />Equipment Fund. 14 <br /> 15 <br />Council Member Mueller stated 911 dispatch expenses were on the rise. She questioned if the 16 <br />2014 budget had been adjusted. Finance Director Beer stated this expense was increased 17 <br />$10,000 for 2014. 18 <br /> 19 <br />Council Member Meehlhause inquired when the 2004 Street Improvement Bonds would be paid 20 <br />off. Finance Director Beer reported the last payment would be made February 1, 2015. 21 <br /> 22 <br />Mayor Flaherty proposed the LGA funds be earmarked for the Special Projects Fund and the 23 <br />Vehicle and Equipment Fund as proposed by staff. He suggested that one-third be placed in the 24 <br />Special Projects Fund, one-third be placed in the Vehicle and Equipment Fund with the 25 <br />remaining one-third remaining in the General Fund. 26 <br /> 27 <br />Mayor Flaherty commented the health insurance expense came in $74,000 lower than anticipated 28 <br />by staff. For this reason, he recommended the levy amount be reduced to 1.5%. 29 <br /> 30 <br />Council Member Gunn suggested the 3% levy increase remain in place to allow for any 31 <br />unforeseen increases in the union contracts. 32 <br /> 33 <br />Mayor Flaherty reported the 2014 budget already included a 2% cost of living adjustment for 34 <br />union employees. Finance Director Beer stated this was the case, and that anything over and 35 <br />above this amount was not included in the budget. 36 <br /> 37 <br />Council Member Hull was in favor of a 0% tax levy increase given the fact the City has had a 38 <br />surplus over the past two years. 39 <br /> 40 <br />Council Member Meehlhause did not want to see the City have to dip into reserves for any 41 <br />reason. He encouraged the Council to consider the amount of working capital required to fund 42 <br />the proposed budget. 43 <br /> 44 <br />Council Member Mueller reported the City had a pending litigation matter regarding the data 45