Laserfiche WebLink
City of Mounds View Staff Report <br />Item No. 2. <br />Meeting Date: June 4, 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: 2019 Draft General Fund Budget <br />There is no state levy limit for 2019. The charter will limit any levy increase to between 4 and 4.5 <br />percent based on estimated inflation. The Department of Labor Statistics will release inflation <br />data around August 12th. City departments have been refining their budgets and more <br />adjustments will occur as more accurate information becomes available. The state has concluded <br />the current legislative sessions with Local Government Aid (LGA) proposed to increase from <br />$736,429 to $739,462. 90% of LGA was included in the 2019 budget and there is a 4% levy <br />increase included at this time. <br />Ramsey County will hold their annual tax meeting at the end of August, they will release <br />preliminary valuation information at that time and staff will be able to more accurately calculate <br />the preliminary tax rate and the effect on properties. The City has agreements with all three <br />bargaining groups thru 2019. Health insurance premiums will be provided in October so will be <br />an estimate at this time. The City contribution for 2018 is up to $1,095 per employee per month. <br />General fund Assigned fund balance (levy reduction) will be approximately $5,311,031 at <br />December 31, 2018. The Council has been using a measured draw down of the levy reduction <br />fund balance by $250,000 per year. The preliminary imbalance is $310,935, after considering the <br />planned draw down of $250,000 from the levy reduction fund balance there is an imbalance of <br />$60,935. There are several options that can be used to close this imbalance. (Increase revenues, <br />reduce expenditures, use fund balance, or a combination of all three) <br />The City needs to certify a preliminary levy and General Fund budget to the County by September <br />30th. This can be done anytime over the next few months. Once set the levy can go down but <br />not up. The City will hold a truth in taxation meeting on Monday, December 31, 2017 at 6pm with <br />a continuation meeting on Monday, December 10th, 2017 at 6:30 pm if needed. Final levy and <br />budget approval may occur at the December 10th meeting. <br />Conclusion <br />Staff is looking for any additional direction from the Council on how they would like to proceed. <br />Respectfully Submitted, <br />Mark Beer <br />