05-02-2016 WS - Laserfiche WebLink

Home Browse Search

Item No. 4 Meeting Date: May 2, 2016 Type of Business: Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Five Year Financial Plan for 2017 thru 2021 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. Notice was published for the Council meeting on May 9, 2016 in the Sun Focus on April 22, 2016. Residents are welcome to comment on the plan at this meeting. 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. 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 includes Local Government Aid (LGA) at 90% of the anticipated amount for 2016 and beyond. The Council made a transfer to the Special Projects Fund in 2014 to begin to replenish the fund and budgeted for a transfer in 2016. The City is projected to receive $671,517 in LGA under current law for 2017 and certified aid is $666,795 for 2016. The plan reflects a 2.50% increase in expenditures for 2017/18 and 3% for the remaining years. A 3% levy increase is reflected for 2017 and 3.5% for all years after 2017. When possible staff used known amounts instead of projections. The 2014 and 2015 levies were increased by 2%, 2016 had a 1% increase. 2017 reflects a 3% increase but may be adjusted as we develop the 2017 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. City staff has declined from 52 in 2006 to 49.75 in 2016. 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 have no current funding source and are reflected as unfunded in the CIP.