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Mounds View City Council December 7, 2009
<br />Truth in Taxation Meeting Page 2
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<br />expenditure chart identified: public safety at 46%, costs for streets and highways at 12%, park 1
<br />and recreation at 9%, debt service fire bonds at 3%, other at 3%, transfers at 4%, general 2
<br />government at 14% and economic development at 9%. Finance Director Beer described the 3
<br />General Fund expenditures as compared to the 2008 actual, 2009 budget, and 2010 proposed. He 4
<br />advised that 2010 General Fund operating expenditures will decrease by $180,210 or 3.35%, 5
<br />which includes personnel services, materials and supplies, contractual services, and contingency. 6
<br />In addition, 2010 General Fund capital expenditures, debt service, and transfers will decrease by 7
<br />$233,670, so the total 2010 General Fund expenditures will decrease by $413,880 or 6.79% over 8
<br />2009. 9
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<br />Finance Director Beer next addressed 2010 General Fund revenues indicating: general property 11
<br />taxes at 66%, other taxes at 7%, licenses and permits at 3%, intergovernmental at 10%, other 12
<br />revenues at 5%, and transfers from other funds at 9%. He advised it is anticipated that franchise 13
<br />fee revenues will be lower since most commodities (such as energy) are also lower in cost. The 14
<br />General Fund revenues were described as compared to 2008 actual, 2009 budget, and 2010 15
<br />proposed. 16
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<br />Finance Director Beer presented the budget summary, advising the City reduced General Fund 18
<br />spending in 2010 by $413,880, the State unalloted LGA over the last two years totaled $294,963 19
<br />and further reductions are projected in 2010 of $340,000, other non-property tax revenues are 20
<br />projected to decline $170,408 which will increase the pressure on the property tax, and the 2010 21
<br />General Fund budget will be balance, by using General Fund reserves of $132,790. 22
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<br />Finance Director Beer displayed a chart identifying the 2009 actual and 2010 property tax levy 24
<br />increases of $337,994, noting the majority is a result of the street improvement projects equaling 25
<br />$300,000. He indicated that City tax for a median valued home of $186,300 will be $772.18 and 26
<br />described how that amount is divided among police, public works, park and recreation, 27
<br />administration, community development, debt service, fire, and the street improvement levy. 28
<br />Finance Director Beer presented a sample home tax impact chart, noting the difference for a 29
<br />median valued home is $127.75 in 2010. Because of the shift in home values, there would have 30
<br />been a $40 tax increase even if the City’s levy had remained flat. He explained that out of every 31
<br />one dollar of taxes, the City of Mounds View receives 29.47 cents, Ramsey County 36.22 cents, 32
<br />the School District 30.41 cents, and other taxing districts 3.90 cents. It was noted that relative 33
<br />taxes per capita show Mounds View is the lowest at $310.84 when compared to Arden Hills, 34
<br />New Brighton, Shoreview, Blaine, Fridley, Roseville, and Spring Lake Park. On a spending per 35
<br />capita basis, Mounds View ranks very low at 211 out of 221 for cities over 2,500 in population. 36
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<br />Finance Director Beer described budget impacts over the last three years due to the loss of LGA 38
<br />and explained that transfers from the Levy Reduction Fund along with use of reserves, 39
<br />expenditure reductions and cutbacks in capital outlays had allowed the City to propose no levy 40
<br />increase for the last four years. It was noted the 2010 General Fund budget proposes a 1% levy 41
<br />increase. 42
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<br />Tom Winiecki, 2748 Sherwood Road, stated he has recreational bonfires in his yard during the 44
<br />summer months and asked if he would be charged should his neighbor call the Fire Department. 45
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