Agenda Packets - 2014/01/13 - Laserfiche WebLink

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Mounds View City Council November 25, 2013 Truth in T2xation Meeting Page 2 1 2 Finance Director Beer discussed the general hind operating expenditures by function. Ile 3 explained TIF District 1 would decertify in 2013. He corrmnented the City would receive 4 $597,000 in LGA Funds from the State in 2014. He reported the City would not be responsible 5 for paying sales tax in 2014. 6 7 Finance Director Beer reviewed the sample home tax impact with the Council noting across all 8 home valuations, there would be a property tax decrease. He then provided a summary of the last 9 five year's budgets and requested the Council approve the 2014 budget summary with a 3% levy 10 increase proposed for 2014. 11 12 Council Member Hull asked how the LGA funds would be used in 2014. Finance Director Beer 13 suggested the funds be placed in the Special Projects Fund, along with the Vehicle and 14 Equipment Fund. 15 16 Council Member Mueller stated 911 dispatch expenses were on the rise. She questioned if the 17 2014 budget had been adjusted. Finance Director Beer stated this expense was increased 18 $10,000 for 2014. 19 20 Council Member Meehlhause inquired when the 2004 Street Improvement Bonds would be paid 21 off. Finance Director Beer reported the last payment would be made February 1, 2015. 22 23 Mayor Flaherty proposed the LGA funds be earmarked for the Special Projects Fund and the 24 Vehicle and Equipment Fund as proposed by staff. He suggested that one-third be placed in the 25 Special Projects Fund, one-third be placed in the Vehicle and Equipment Fund with the 26 remaining one-third remaining in the General Fund. 27 28 Mayor Flaherty commented the health insurance expense came in $74,000 lower than anticipated 29 by staff. For this reason, he recommended the levy amount be reduced to 1.5%. 30 31 Council Member Gunn suggested the 3% levy increase remain in place to allow for any 32 unforeseen increases in the union contracts. 33 34 Mayor Flaherty reported the 2014 budget already included a 2% cost of living adjustment for 35 union employees. Finance Director Beer stated this was the case, and that anything over and 36 above this amount was not included in the budget. 37 38 Council Member Hull was in favor of a 0% tax levy increase given the fact the City has had a 39 surplus over the past two years. 40 41 Council Member Meehlhause did not want to see the City have to dip into reserves for any 42 reason. He encouraged the Council to consider the amount of working capital required to fiord 43 the proposed budget. 44 45 Council Member Mueller reported the City had a pending litigation matter regarding the data,