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Item No. 2. <br />Meeting Date: June 6, 2016 <br />Type of Business: Work Session <br />City Administrator Review: ______ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Discussion of Priorities for the 2017 Budget <br /> <br />City staff has been busy working on the details of the 2017 budget. <br /> <br />This item is placed on the agenda to give the City Council and residents the opportunity to provide <br />input to staff early in the process. Department Heads can then use this guidance as they work <br />on the details of their proposed budgets. <br /> <br /> <br /> <br /> <br /> <br /> <br />Key 2017 Budget Issues: <br /> <br />Local Government Aid is projected to increase as long as state revenue projections hold. In our <br />case, the 2017 amount is estimated to be $735,514 compared with $666,795 in 2016. We won’t <br />have revenue forecasts until late fall reflecting the current legislative changes. The Council <br />budgeted for 90% of anticipated LGA for 2016 to guard against any legislative cuts due to <br />economic weakness. <br /> <br />Inflation is modest at present. (0% - 1%) The City’s charter cap would allow a levy increase of up <br />to (3%) based on the above inflation and excludes debt service levies and capital project levies <br />from inclusion in the cap calculation. A 1% levy increase would generate an additional $43,938 <br />in tax revenue. Property taxes account for 66% of General Fund revenues and operating transfers <br />in. <br />General Fund 2016 Budget by Type <br />Personnel 60.2%3,941,346 <br />Contractual services 23.6%1,543,871 <br />Capital outlays 1.5%96,059 <br />Supplies 5.3%344,449 <br />Transfers 6.8%445,000 <br />Fire debt service 2.2%146,780 <br />Capital lease 0.4%24,323 <br /> Total 100%6,541,828 <br />General Fund 2016 Budget by Function <br />Police 42.1%2,752,111 <br />Public Works 12.5%817,572 <br />Park and Recreation 8.1%526,902 <br />Fire (SBM)6.8%447,742 <br />Community Development 5.9%382,720 <br />Administration 5.3%343,582 <br />Finance 3.9%257,362 <br />Central Services 3.7%242,986 <br />Debt Service (Fire bonds)2.2%146,780 <br />Misc. Contracual Service 1.3%88,083 <br />Legislative 1.0%66,665 <br />Debt Service (Capital lease)0.4%24,323 <br />Transfers to other funds 6.8%445,000 <br />Total 100%6,541,828