Laserfiche WebLink
Item No. 5 <br />Meeting Date: May 4, 2015 <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: Five Year Financial Plan for 2016 thru 2020 <br /> <br /> <br />Introduction: <br />The City Charter, Chapter 7.05, requires that a five year financial plan be prepared <br />annually. It must be presented at a public hearing and adopted by motion or resolution. <br />Notice was published for the Council meeting on May 11, 2015 in the Sun Focus and <br />residents are welcome to comment on the plan at this meeting. <br /> <br />The components of the Five Year Financial Plan are attached for Council consideration. <br />There are several components to the Five Year Financial Plan. These are the General <br />Fund Multi-year Operating Budget, the Vehicle & Equipment Replacement Plan, the <br />Capital Improvement Program, the Impact on Capital Projects Funds’ Cash Balance, and <br />Utility Rate Studies. <br /> <br />This five year plan should be considered a work-in-progress and a guide for Council and <br />Staff to make longer range decisions. As new information becomes available and <br />conditions change we can update the components to determine the longer range effect. <br /> <br />General Fund Multi-year Operating Budget: <br />The multi-year operating budget for the General Fund includes Local Government Aid <br />(LGA) at 90% of the anticipated amount for 2015 and beyond. The Council made a <br />transfer to the Special Projects Fund in 2014 to begin to replenish the fund and <br />budgeted for a small transfer in 2015. The City is projected to receive $655,531 in LGA <br />for 2015 and current law projects approximately $666,795 for 2016 <br /> <br />The plan reflects a 2.50% increase in expenditures for 2016/17 and 3% for the remaining <br />years. A 2% levy increase is reflected for 2016 and 4% for all years after 2016. When <br />possible staff used known amounts instead of projections. The 2014 and 2015 levies <br />were increased by 2%, 2016 reflects a 2% increase but may be adjusted as we develop <br />the 2016 budget and better information becomes available. This version of the budget <br />assumes that there will be no additions to personnel or other major changes in operating <br />expenditures. <br /> <br />Capital Improvement Program (CIP): <br />The Capital Improvement Program has been updated to reflect changes in the project <br />list and is presented for your consideration. There are a number of projects that were <br />anticipated to be funded with unobligated tax increment, but will have to have another <br />funding source and are reflected as unfunded in the CIP.