12-01-2014 TNT - Laserfiche WebLink

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Item No: 7.A. Meeting Date: December 1, 2014 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 2% preliminary levy increase for 2015 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 $6,300,454. The current proposed budget reflects expenditures of $6,366,744. The increase was due to an increase of $90,014 for police records management and e-ticketing systems, carryover of the election equipment purchase of $36,000, Festival budget increase of $5,000, and transfer to Special Projects of $49,079. There were some reductions in fire ($52,358) and adjustments to personnel and health insurance costs ($71,073). The City Council will continue to use $250,000 from levy reduction “assigned” fund balance. Looking forward to 2015, state budget projections show a small surplus for the current budget period. That means that there will probably not be any cuts to the late December LGA payment. The 2015 LGA payment is certified by the Department of Revenue at $655,951. The 2015 General Fund budget was constructed using 90% of certified LGA 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 budget session with indications that infrastructure will be the primary focus and how to finance it. Staff welcomes any comments or questions. Respectfully Submitted, Mark Beer