Agenda Packets - 2015/12/07 (2) - Laserfiche WebLink

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Item No: 2 Meeting Date: December 7, 2015 Type of Business: Work Session Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: All Funds Budgets for 2016 Attached are budgets for all City Funds (General, Special Revenue, Debt Service, Capital Projects, and Enterprise). The City Council has had an opportunity to review all the funds at different times during the budget process. The City Council adopted a 1% preliminary tax levy for 2016 in September. Most residential property owners’ will see a decrease in the City portion of their tax bills. There have been some minor changes from the preliminary budgets as more accurate information has become available. The preliminary General Fund budget reflected expenditures of $6,493,326. The increase ($48,502) was due to the lease payable for the Energy Savings Program ($24,323) with reductions for insurance costs in several departments and carryover of the election equipment purchase of $36,000. The City Council will continue to use $250,000 from levy reduction “assigned” fund balance. This will leave a deficit of $89,307 that will be taken from unassigned fund balance. Looking forward to 2016, state budget projections show a 1.871 Billion surplus for the current budget period. That means that there will probably not be any cuts to the late December LGA payment. The 2016 LGA payment is certified by the Department of Revenue at $666,792. The 2016 General Fund budget was constructed using 90% of certified LGA as a precaution from changes at the state level. The next revenue forecast will come out in February prior to the start of the legislative session. The next legislative session will be a bonding session with indications that infrastructure and tax cuts will be the primary focus and how to finance it. Staff welcomes any comments or questions. Respectfully Submitted, Mark Beer