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Item No. 3. <br />Meeting Date: June 1, 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: Discussion of Priorities for the 2016 Budget <br /> <br />City staff has been busy working on the details of the 2016 budget. <br /> <br />This item is placed on the agenda to give the City Council and residents the opportunity to <br />provide input to staff early in the process. Department Heads can then use this guidance as <br />they work on the details of their proposed budgets. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Key 2016 Budget Issues: <br /> <br />Local Government Aid is projected to increase in 2016 as long as state revenue projections <br />hold. In our case, the 2016 amount is estimated to be $666,795 compared with $655,531 in <br />2015. We won’t have revenue forecasts until late fall reflecting the current legislative changes. <br />The Council budgeted for 90% of anticipated LGA for 2015 so if there are cuts it won’t be as <br />painful. <br /> <br />Inflation is modest at present. (1.5% - 2%) The City’s charter cap would allow a levy increase of <br />(3.5% – 4%) based on the above inflation and excludes debt service levies and capital project <br />levies from inclusion in the cap calculation. A 1% levy increase would generate an additional <br />$43,503 in tax revenue. Property taxes account for 66.5% of General Fund revenues and <br />operating transfers in. <br />General Fund 2015 Budget by Type <br />Personnel 59.6%3,791,983 <br />Contractual services 25.6%1,631,302 <br />Capital outlays 1.7%108,275 <br />Supplies 5.4%344,263 <br />Transfers 5.3%340,122 <br />Fire debt service 2.4%150,799 <br />Contingency 0.0%- <br /> Total 100%6,366,744 <br />General Fund 2015 Budget by Function <br />Police 43.4%2,761,401 <br />Public Works 13.2%841,669 <br />Park and Recreation 8.2%519,027 <br />Fire (SBM)6.5%414,819 <br />Community Development 5.9%373,133 <br />Administration 5.3%335,830 <br />Finance 3.9%245,969 <br />Central Services 3.7%235,844 <br />Debt Service (Fire bonds)2.4%150,799 <br />Misc. Contracual Service 1.3%79,878 <br />Legislative 1.1%68,253 <br />Contingency 0.0%- <br />Transfers to other funds 5.3%340,122 <br />Total 100%6,366,744