Agenda Packets - 2013/10/07 - Laserfiche WebLink

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Item No. 3. Meeting Date: October 7, 2013 Type of Business, Work Session City Administrator Review City of Mounds ew Staffp! Honorable Mayor andCity,. From: Mark Beer, Finance Director Item Title/Subject: 2014 Draft General Fund Bd.e The City Council reviewed the draft General Fund budget at the July work session. The City Council set a preliminary levy with a 3% increase for 2014, once set the amount can only go down. This is within the state and charter established levy limits. City departments continue to refine their budgets and more adjustments will occur as more accurate information becomes available. The State certified Local Government Aid (LGA) at $597,024 for 2014, an increase from $232,078 in 2013. The City will be sales tax exempt on direct purchases this excludes motor vehicles as they fall under a different tax statute. The General Fund will save approximately $18,000 to $20,000 as a result and city-wide the savings will be $50,000 to $60,000 Ramsey County has held their annual tax meeting and home values, in general, declined by 3.2%. The tax impact on homes of a 3% and 0% levy increase are attached. With the decertification of TIF district 1 property taxes will go down City-wide for most. The City will be negotiating with the 3 city unions for 2014 and 2015. Another unknown is health insurance rates. The City contribution for 2013 is $960 per employee. Rates will be available in mid October. The Council will also have a market rate study for non-union personnel to consider. The City will hold a truth in taxation meeting on Monday, November 25`h 2013 at bpm with a continuation meeting on Monday, December 9t", 2013 at 7pm if needed. Final levy and budget approval may occur at the December 9`" meeting. Conclusion Staff is looking for any additional direction from the Council on how they would like to proceed. Respectfully Submitted, Mark Beer Beer ��