12-07-2015 TNT - Laserfiche WebLink

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Item No: 7.A. Meeting Date: December 7, 2015 Type of Business: Truth in Taxation Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Truth in Taxation Meeting Attached is the Truth in Taxation presentation which covers those funds that receive tax revenues from the City-wide tax levy. (General Fund and Street Improvement Fund) The City Council adopted a 1% preliminary levy increase for 2016 back in September. There have been some minor changes from the preliminary budget as more accurate information has become available. The preliminary General Fund budget reflected expenditures of $6,493,326. The current proposed budget reflects expenditures of $6,505,828. The increase ($12,502) was due to the lease payable for the Energy Savings Program ($24,323) with reductions for insurance costs in several departments. The City Council will continue to use $250,000 from levy reduction “assigned” fund balance. This will leave a deficit of $53,307 that will be taken from unassigned fund balance. Looking forward to 2016, state budget projections show a surplus for the current budget period. That means that there will probably not be any cuts to the late December LGA payment or the 2016 certified amount. The 2016 LGA amount has been certified by the Department of Revenue at $666,792. The 2016 General Fund budget was constructed using 90% of certified LGA the same as 2015 as a precaution from changes at the state level. The revenue forecast will come out in early December and again in early February. The next legislative session will be a bonding session with indications that infrastructure and tax cuts will be the primary focus and how to finance it. Staff welcomes any comments or questions. Respectfully Submitted, Mark Beer