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Item No. 5. <br />Meeting Date: May 1, 2017 <br />Type of Business: Work Session <br />City Administrator Review: ______ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Discussion of Priorities for the 2018 Budget <br /> <br />City staff has been busy working on the details of the 2018 budget. <br /> <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 /> <br /> <br /> <br /> <br /> <br />Key 2018 Budget Issues: <br /> <br />Local Government Aid is projected to increase as long as state revenue projections hold. In our case, the <br />2018 amount is estimated to be $679,093 under current law compared with $671,517 in 2017. 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 2017 to guard against any legislative cuts due to economic weakness. <br /> <br />Inflation is modest at present. (1.4% - 1.6%) The City’s charter cap would allow a levy increase of up to <br />(3.6%) 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 $45,689 in tax revenue. <br />Property taxes account for 66% of General Fund revenues and operating transfers in. <br /> <br /> <br />General Fund 2017 Budget by Type <br />Personnel 61.0%4,014,373 <br />Contractual services 24.0%1,578,226 <br />Capital outlays 0.7%46,655 <br />Supplies 4.9%319,636 <br />Transfers 7.2%475,000 <br />Fire debt service 1.9%125,878 <br />Capital lease 0.4%24,496 <br /> Total 100%6,584,264 <br />General Fund 2017 Budget by Function <br />Police 41.8%2,751,241 <br />Public Works 12.6%831,512 <br />Park and Recreation 7.9%522,397 <br />Fire (SBM)6.7%441,318 <br />Community Development 6.1%398,498 <br />Administration 5.1%333,084 <br />Finance 4.0%263,457 <br />Central Services 3.9%255,645 <br />Debt Service (Fire bonds)1.9%125,878 <br />Misc. Contracual Service 1.3%88,711 <br />Legislative 1.1%73,027 <br />Debt Service (Capital lease)0.4%24,496 <br />Transfers to other funds 7.2%475,000 <br />Total 100%6,584,264