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<br />Item No: 7.A. <br />Meeting Date: December 5, 2016 <br />Type of Business: Truth in Taxation <br />Administrator Review: _____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Truth in Taxation Meeting <br /> <br /> <br />Attached is the Truth in Taxation presentation which covers those funds that receive tax <br />revenues from the City-wide tax levy. (General Fund, Street Improvement Fund, and EDA <br />Fund) The City Council adopted a 3.4% City levy increase, a 2.28% HRA levy, and a <br />1.37% EDA levy increase for 2017 back in September. The General Fund levy can be <br />reduced to an increase of 1.71% from 3.4%. The EDA/HRA levies can be reduced to an <br />increase of 2.28%. The total overall increase is 3.99% for the combined levies. <br /> <br />There have been some minor changes from the preliminary budget as more accurate <br />information has become available. The preliminary General Fund budget reflected <br />expenditures of $6,590,596. The current proposed budget reflects expenditures of <br />$6,584,264. The decrease ($6,332) was due primarily to changes to the Fire department <br />budget. The General fund will be in balance after considering use of $250,000 from <br />assigned fund balance. (Levy Reduction fund balance) <br /> <br />Looking forward to 2017, state budget projections show a surplus for the current budget <br />period. That means that there will probably not be any cuts to the late December LGA <br />payment or the 2017 certified amount. The 2017 LGA amount has been certified by the <br />Department of Revenue at $671,517. The 2017 General Fund budget was constructed <br />using 90% of certified LGA as a precaution from changes at the state level. The revenue <br />forecast will come out in early December and again in early February. The next legislative <br />session will be a two year budget session with a number of unfinished items from the <br />2016 session, indications are that infrastructure, tax cuts, and healthcare will be the <br />primary focus and how to finance it. Staff welcomes any comments or questions. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Mark Beer