Agenda Packets - 2014/05/05 - Laserfiche WebLink

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O S of Mounds View Staff Re Item No. 2. Meeting Date: May 5, 2014 Type of Business- Work Sessi City Administrator Review: To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Five Year Financial Plan for 2015 thru 2019 Introduction: The City Charter, Chapter 7.05, requires that a five year financial plan be prepared annually. It must be presented at a public hearing and adopted by motion or resolution. The components of the Five Year Financial Plan are attached for Council consideration. There are several components to the Five Year Financial Plan. These are the General Fund Multi-year Operating Budget, the Vehicle & Equipment Replacement Plan, the Capital Improvement Program, the Impact on Capital Projects Funds' Cash Balance, and Utility Rate Studies. Staff also included a summary of the financing plan for the Street and Utility Improvement Program and annual vehicle replacement costs. This five year plan should be considered a work -in -progress and a guide for Council and Staff to make longer range decisions. As new information becomes available and conditions change we can update the components to determine the longer range effect. General Fund Multi-year Operating Budget: The multi-year operating budget for the General Fund excludes consideration of Local Government Aid (LGA) for 2013 and beyond. There has been some discussion about using LGA to replenish the Special Projects Fund and the Vehicle and Equipment Fund as both have seen reductions in their respective fund balances. The City is projected to receive $597,024 in LGA for 2014 and current law projects approximately $611,886 for 2015 The plan reflects a 3.00% increase in expenditures for 2015 and for the remaining years. A 3.5% levy increase is reflected for 2015 and 4% for all years after 2015. The General Fund runs deficits for the five years under consideration. When possible staff used known amounts instead of projections. The 2014 levy was increased by 2%, 2015 reflects a 3.5% increase but may be adjusted as we develop the 2015 budget and better information becomes available. This version of the budget assumes that there will be no additions to personnel or other major changes in operating expenditures. Capital Improvement Program (CIP): The Capital Improvement Program has been updated to reflect changes in the project list and is presented for your consideration. There are a number of projects that were anticipated to be funded with unobligated tax increment, but will have to have another funding source and are reflected as unfunded in the CIP.