Agenda Packets - 2009/10/12 - Laserfiche WebLink

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Mounds View City Council September 14, 2009 Regular Meeting Page 2 1 7. COUNCIL BUSINESS 2 A. Resolution 7494, Authorizing Certification of the Proposed General Fund 3 Budget and Property Tax Levy for Fiscal Year 2010. 4 5 Finance Director Beer reviewed the impact of unallotted LGA and the State levy cap. In 6 addition, the City’s Charter cap formula allows for a 1% levy increase. Finance Director Beer 7 presented the totals for the general fund levy and special levies, resulting in an increase of 8 $337,994 or 8.9% over 2009. He explained that State law requires the City to certify a proposed 9 2010 General Fund Budget and proposed 2010 property tax levy to Ramsey County by 10 September 15, 2009. Once set by the City Council, it can be lowered but not increased. Finance 11 Director Beer reviewed a sample impact of estimated taxes for a median home value in Mounds 12 View, noting an increase of $124. 13 14 William Werner, 2765 Sherwood Road, suggested the tax reduction fund be used to reduce taxes. 15 Finance Director Beer stated that fund contains $6.5 million and the Council has directed to 16 transfer and use $250,000 from the tax reduction fund. 17 18 Naja Werner, 2765 Sherwood Road, suggested expenses be cut, possibly including reduced staff 19 or frozen salaries. She felt there would be a long-term impact and expressed concern about the 20 City’s high number of home foreclosures. 21 22 Finance Director Beer presented three scenarios for use of the tax levy reduction fund, noting the 23 dates by which the fund would be depleted depending on the extent of the levy increase 24 approved. 25 26 Mr. Werner asked what the increase would be today without the levy reduction fund. Finance 27 Director Beer stated $250,000 would have to be added to the live. 28 29 Brian Amundsen, 3048 Wooddale Drive, referenced the 2010 budget summary and asked if the 30 total revenue increase was $470,000 in 2009. Finance Director Beer stated the grand total of 31 LGA was $642,000. Mr. Amundsen stated that in 2008 the actual was $5.6 million spent and in 32 2009 it goes to $6.1 million, or an increase of about 10%. Finance Director Beer noted that in 33 2008, LGA of $148,000 was unalloted by the State. Clerk-Administrator Ericson advised that a 34 10% increase was not anticipated because of the unallotment by the State. 35 36 Mr. Amundsen stated he felt it was appropriate that the 2010 projected budget was back to the 37 2008 level. He stated that in 2008, he had suggested the LGA money be put aside as “rainy day 38 money” and not be used. However, the City used the funds and now the State has unalloted those 39 funds. Mr. Amundsen noted that all are seeing decreases in family income and salaries yet the 40 government is having more needs and wanting more tax dollars. He suggested that the economic 41 dilemma would continue, possibly for several years. He felt it was appropriate now to use the 42 levy reduction fund, possibly heavily for the next two to three years. He urged the Council to 43 keep expenses in check with the assumption there will be no additional revenues for several 44 years. 45