Agenda Packets - 2012/12/03 (2) - Laserfiche WebLink

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Item No: 7.A Meeting Date: December 3, 2012 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 and All Funds Budgets for 2013 Attached is the Truth in Taxation presentation and the budgets for all funds (General, Special Revenue, Debt Service, Capital Projects, and Enterprise) for your consideration. The Council has had an opportunity to review all the funds at different times during the budget process. The City Council did not increase the tax levy for 2013. Most property owners’ will see a tax decrease as a result of shifts in value away from residential property towards business, apartments, and higher valued residential properties. There have been some minor changes from the preliminary budget as more accurate information became available. The preliminary General Fund budget reflected a drawdown of fund balance of ($428,146) with adjustments that amount is now ($375,914). The biggest reductions were for the accounts payable clerk salary and benefits (retirement) and fire department adjustments. $198,000 will come from levy reduction “assigned” fund balance with the balance $178,000 coming from “unassigned” fund balance. Looking forward to 2013, state budget projections show a surplus for the current budget period. That means that there will probably not be any cuts to the late December LGA payment. The 2013 LGA payment is established at the same level as 2012 ($232,078) but the legislature will have to address a one billion deficit for the upcoming biennium. The revenue forecast will come out in early December and again in early February which is what the legislature will use to construct the next biennial budget. (2014/2015) The 2013 General Fund budget was constructed with no LGA included. Staff welcomes any comments or questions. Respectfully Submitted, Mark Beer