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of Mounds View Staff Item No: 9.C. Meeting Date: August 28, 2017 Type of Business: Council Business City Administrator Review: ort To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8813 Authorizing Certification of the Preliminary General Fund Budget and Preliminary Property Tax Levy for Fiscal Year 2018 State law requires that the City certify a preliminary General Fund Budget and preliminary property tax levy to Ramsey County by September 30. The City Council reviewed the General Fund budget at the June work session and will review the budget again before final approval in December. The City Council is considering a preliminary levy increase of up to 4.3% as limited by the Charter. (Inflation plus 2% or 5% whichever is less) Each 1% levy increase would provide an additional $45,689. The state has certified Local Government Aid (LGA) for 2018 at $736,425. Staff recommends that we budget for 90% of that amount. ($662,783) LGA is included in the General Fund budget and use of Assigned Fund balance of $250,000 is also included. Unassigned fund balance was $3,538,754 at December 31, 2016 and represents 51.9% of the draft 2018 budgeted expenditures and transfers in. The Assigned Levy Reduction fund balance is $5,656,709 at 12-31- 16 and will be approximately $5,466,709 at December 31, 2017. The City will hold a referendum vote November 7th to increase the levy to provide for one additional police officer. This will increase the overall levy by $85,200 or 1.865%, this amount should be included in the preliminary levy pending the outcome of the election. The base General Fund levy would be $4,025,429 and special levies for Fire Debt Service of $99,177, 2004 police personnel referendum of $210,000, 2017 police personnel referendum of $85,200, PERA rate increase special levy of $39,145 for a total General Fund levy of $4,458,951. A special levy for the 2017A PW Facility Debt Service payments of $415,034 will be added. The base levy for the Street Improvement fund of ($300,000) will be eliminated for 2018. The EDA would have a base levy of $100,000, no increase over 2017. The total of all base and special levies proposed is $4,973,985, an 8.87% or $405,038 increase over 2017. Once this amount is set, the levy cannot be increased but can be lowered. The final levy will be adopted on or about December 11, 2017 along with the General Fund budget and all other City funds budgets. The draft General Fund budget for preliminary approval is $6,815,474. This amount is subject to change as the Council gets additional information but should not change significantly before final adoption. TRspectfully submi dBeer, Finance Director