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MOU-NDS VIEW <br />City of Mounds View Staff Report <br />Item No. 2. <br />Meeting Date: May 7, 2018 <br />Type of Business: Work Session <br />City Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Discussion of Priorities for the 2019 Budget <br />City staff has been busy working on the details of the 2019 budget. <br />This item is placed on the agenda to give the City Council and residents the opportunity to provide input <br />to staff early in the process. Department Heads can then use this guidance as they work on the details of <br />their proposed budgets. <br />General Fund 2018 Budget by Type <br />Personnel <br />60.9% <br />4,233,273 <br />Contractual services <br />23.9% <br />1,659,761 <br />Capital outlays <br />0.9% <br />65,036 <br />Supplies <br />4.5% <br />312,779 <br />Transfers <br />8.1% <br />565,000 <br />Fire debt service <br />1.4% <br />94,454 <br />Capital lease <br />0.4% <br />24,496 <br />Total 100% 6,954,799 <br />Key 2019 Budget Issues: <br />General Fund 2018 Budget by Function <br />Police <br />Public Works <br />Park and Recreation <br />Fire (SBM) <br />Community Development <br />Administration <br />Finance <br />Central Services <br />Debt Service (Fire bonds) <br />Misc. Contracual Service <br />Legislative <br />Debt Service (Capital lease) <br />Transfers to other funds <br />Total <br />42.7% 2,970,719 <br />12.1% 840,394 <br />7.2% 498,541 <br />7.3% 508,929 <br />6.1% 421,547 <br />4.5% 310,110 <br />3.9% 271,256 <br />4.1% 282,474 <br />1.4% 94,454 <br />1.3% 88,998 <br />1.1% 77,881 <br />0.4% 24,496 <br />8.1% 565,000 <br />100% 6,954,799 <br />Local Government Aid is projected to increase as long as state revenue projections hold. In our case, the <br />2019 amount is estimated to be $739,462 under current law compared with $736,426 in 2018. We won't <br />have revenue forecasts until late fall reflecting the current legislative changes. The Council budgeted for <br />90% of anticipated LGA for 2018 to guard against any legislative cuts due to economic weakness. <br />Inflation is modest at present. (2.1% - 2.5%) The City's charter cap would allow a levy increase of up to <br />(4.5%) based on the above inflation and excludes debt service levies and capital project levies from <br />inclusion in the cap calculation. A 1% levy increase would generate an additional $49,740 in tax revenue. <br />Property taxes account for 66% of General Fund revenues and operating transfers in. <br />