Agenda Packets - 2016/12/12 - Laserfiche WebLink

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Mounds View City Council December 5, 2016 Truth in Taxation Meeting Page 2 noted the 2017 budget did not have a lot of increases. He indicated the General Fund operating 1 budget would increase by 0.65% over 2016. He reviewed how the City received its revenues 2 noting 66% of revenues were received through property taxes. It was noted the City was 3 estimated to receive $671,517 in LGA for 2017. Staff provided further comment on the 4 proposed property tax levy of 3.4% with the Council and indicated that it could be reduced to 5 1.71%. Finance Director Beer described how the median valued home would be impacted by the 6 proposed levy. He was pleased to report the City’s tax levy per capita was on the low end when 7 compared to neighboring communities. 8 9 Council Member Mueller questioned when the City would receive its second LGA payment. 10 Finance Director Beer reported the City would receive this payment at the end of December. 11 12 Council Member Mueller asked if the presented financial report would be available to the public 13 on the City’s website. Finance Director Beer reported this information would be posted on the 14 City’s website and the Truth in Taxation meeting would be available for viewing as well. 15 16 Mayor Flaherty requested clarification from staff why a 3.4% tax levy was being approved when 17 the operating budget has only increased by 0.65%. Finance Director Beer explained the General 18 Fund had an increase of 0.65% while there was an overall increase in revenues of 1.71%. He 19 added that these percentages also don’t address the increases or decreases the City has in other 20 revenues for 2017. 21 22 Mayor Flaherty discussed the spending per capita ranking received by the City of Mounds View 23 and commended staff for their efforts. 24 25 Council Member Meehlhause stated that much of the increase in expenditures incurred by the 26 City were out of the City’s control. These costs were controlled by Roseville IT, Ramsey County 27 Dispatch, consulting staff members, Police and Fire staff, etc. 28 29 Council Member Gunn added that there were also state mandates that were handed down to the 30 City. 31 32 Mayor Flaherty recommended the Street Levy go away after the City completed the final portion 33 of the project. 34 35 Council Member Hull questioned how much the City would be spending on the new Public 36 Works Facility. Finance Director Beer reported the City should plan to spend $425,000 to 37 $450,000 in annual debt service which would be 10-12% of the City’s tax levy. He anticipated 38 this debt would begin in 2018. 39 40 Council Member Meehlhause recommended the tax levy be set at 1.75%. 41 42 Council Member Hull reported he supported a levy amount of 1.71%. 43 44 Council Member Gunn stated she could support either number. 45