Agenda Packets - 2016/09/12 - Laserfiche WebLink

Home Browse Search

Item No: 7.A. Meeting Date: September 12, 2016 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8622 Authorizing Certification of the Preliminary General Fund Budget and Preliminary Property Tax Levy for Fiscal Year 2017 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 July work session and will review the budget again before final approval in December there have not been significant changes since July. The City Council is considering a levy increase of 2.5% General Fund and 2.26% EDA levy. The Charter limits the levy increase to 3.4% which is inflation plus 2%. (Inflation is 1.4%) Each 1% levy increase is an additional $43,938. The state has certified Local Government Aid (LGA) for 2017 at $671,517. Staff recommends that we budget for 90% of that amount. ($604,365) LGA is included in the General Fund budget and use of Assigned Fund balance of $250,000 is also included. Unassigned fund balance was $3,448,111 at December 31, 2015 and represents 52.3% of draft 2017 budgeted expenditures and transfers in. The Assigned Levy Reduction fund balance is $5,826,995 at 12-31-15 and will be approximately $5,631,995 at December 31, 2016. The base General Fund levy would be $3,868,678 and special levies for Fire Debt Service of $90,835, police personnel referendum of $205,000, PERA rate increase special levy of $39,145 for a total General Fund levy of $4,203,658. The base levy for the Street Improvement fund would be $300,000. The total of all base and special levies proposed is $4,503,658, a 2.5% ($109,845) increase over 2016. The Council will also consider an EDA request to implement a $100,000 or 2.26% HRA levy. Once this amount is set, the levy cannot be increased but can be lowered. The final levy will be adopted on or about December 12, 2016 along with the General Fund budget and all other City funds budgets. The draft General Fund budget for preliminary approval is $6,595,757. This amount is subject to change as the Council gets additional information but should not change significantly before final adoption. Respectfully submitted, ___________________________ Mark Beer, Finance Director