Agenda Packets - 2016/11/14 - Laserfiche WebLink

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Item No. 11.B.1. Meeting Date: November 14, 2016 Type of Business: Staff Reports City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: 2017 Draft General Fund Budget and Property Tax Levy The September review of the draft budget had an imbalance of $189,405 this is before considering the planned draw down of $250,000 from assigned fund balance. The City Council set a preliminary General Fund levy increase of 3.4% this is the maximum allowed under the charter. The intention was to allow for the most flexibility in setting the budget with the likely reduction in the levy as more information became available. The EDA requested the City Council establish a levy of $60,000 on behalf of the EDA, this is a 1.23% levy increase. The EDA exercising HRA powers also established a levy of $100,000 or 2.28%. The intention is to have no more than $100,000 levied for the EDA under both levies so there will be a reduction of $60,000 in aggregate from both levies. There have been some minor adjustment to the budget and there will be additional adjustments before final adoption in December. The present imbalance is $175,659 before considering the planned draw down of assigned fund balance. The City Council may be able to reduce the General Fund levy from 3.4% increase to as low as 1.71% increase depending on final changes. There is an outside chance that the Governor and Legislature could agree to a special session before year-end and pass the tax bill which provided for an LGA increase. This would allow further reduction in the overall levy. The last significant issue outstanding are union negotiations and we are making progress, we may have some settled contracts by the time we adopt a final levy and budget. The Truth-In-Taxation meeting will be held at 6pm on December 5th and the complete municipal budget will be reviewed at the work session following the TNT meeting. Final adoption of the 2017 tax levy and municipal budgets may occur at the December 12, 2016 Council meeting. Conclusion Staff is looking for any additional direction from the Council on how they would like to proceed. Respectfully Submitted, Mark Beer, Finance Director