Agenda Packets - 2013/05/06 - Laserfiche WebLink

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MOUNDS VIEW City of Mounds View Staff Item No. 2. Meeting Date: May 6, 2013 Type of Business: Work S_ps_s1i�on City Administrator Review:(NTS rt To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Five Year Financial Plan for 2014 thru 2018 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. 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 any consideration of Local Government Aid for 2014 and beyond. The plan reflects a 3.00% increase in expenditures for 2014 and a 3% increase in expenditures for the remaining years. A 4% levy increase is reflected for all years after 2013. The General Fund runs deficits for the five years under consideration. When possible staff used known amounts instead of projections. The levy amount for 2014 reflects a 4% increase but may be adjusted as we develop the 2014 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.