Agenda Packets - 2011/08/22 - Laserfiche WebLink

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Item No. 11.B.2 Meeting Date: July 22, 2011 Type of Business: Reports City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: 2012 Draft General Fund Budget City staff has revised the draft budget presented at the August work session to reflect the Governmental Accounting Standards Board Statement 54 change. This affects fund balance, investment income, and transfers. Transfers were reduced by $250,000, interest income increased by $113,000 and use of fund balance increased by $137,000. Fund balance increased by $6,472,060 to reflect the GASB 54 change. This reflects a measured draw down of fund balance consistent with past use of the Levy Reduction fund. ($113,000 + $137,000 = $250,000) The change to elections is also reflected in this draft budget and the Community Development department increased $2,839 to reflect additional summer hours for code enforcement by the PSO. Outstanding 2012 Budget Issues: Inflation remains low at present time. The City Council’s direction was no levy increase for 2012. The City is presently negotiating with all four bargaining units. Health insurance cost increases are not known, we will receive our rate notice in mid to late September. The impact to the budget will depend on the labor contracts. Fire department capital costs have not been settled but should not adversely impact the budget. Conclusion The City needs to certify a preliminary levy and a draft General fund budget to the County by September 15th. Staff is looking for direction from the Council on whether they would like to discuss the draft budget and levy at your next work session or wait until the Council meeting on September 12, 2011. There will not be resolution to any of the outstanding items by the work session. Respectfully Submitted, Mark Beer