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MOUNDS VIEW of Mounds View Staff Item No: 7.A. Meeting Date: August 26, 2013 Type of Business: Council Business City Administrator Review: To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8141 Authorizing Certification of the Preliminary General Fund Budget and Property Tax Levy for Fiscal Year 2014 State law requires that the City certify a preliminary 2014 General Fund Budget and preliminary 2014 property tax levy to Ramsey County by September 15. The City Council reviewed the General Fund budget at the July work session and will be reviewing the budget additional times before final approval in December. The City Council is considering a levy increase of between 0% and 3%. The state has imposed levy limits of 3% on local governments. Each 1% levy increase is an additional $41,814. The state has certified LGA for 2014 at $597,024. The City Council has elected to not budget for LGA due to inconsistent payments by the state. Unassigned fund balance was $3,176,966 at December 31, 2012 and represents 53% of draft 2014 budgeted expenditures and transfers in. The Assigned Levy Reduction fund balance is $6,103,255 at 12-31-12 and will be approximately $5,914,288 at December 31, 2013. The base General Fund levy would be $3,441,532 and special levies for Fire Debt Service of $156,348, police personnel referendum of $178,000, PERA rate increase special levy of $39,145 for a total General Fund levy of $3,815,025. The base levy for the Street Improvement fund would be $300,000. The 2004 Improvement Bond Debt Service Fund has a special levy of $191,798. The total of all base and special levies proposed is $4,306,823, a 3% increase over 2013. Once this amount is set, the levy cannot be increased but can be lowered. The final levy will be adopted on or about December 9, 2013 along with the General Fund budget and the other City funds budgets. The draft General Fund budget for preliminary approval is $6,018,125. This amount is subject to change as the Council gets additional information. Re pectfully submitted, Mark Beer