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Item No. 4. <br />Meeting Date: June 2, 2014 <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 2015 Budget <br /> <br />City staff has been busy working on the details of the 2015 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 />Key 2015 Budget Issues: <br /> <br />Local Government Aid is projected to increase in 2015 as long as state revenue projections <br />hold. In our case, the 2015 amount is estimated to be $655,531 compared with $597,024 in <br />2014. We won’t have revenue forecasts until late fall reflecting the current legislative changes. <br />It has been the Council’s position to not budget for LGA so if there are further cuts it won’t be as <br />painful. The Council will have some flexibility for one-time purchases or replenishing the <br />Special Projects and Vehicle and Equipment funds. <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%) and excludes debt service levies and capital project levies from inclusion in the cap <br />calculation. A 1% levy increase would generate an additional $42,650 in tax revenue. Property <br />taxes account for 69.7% of General Fund revenues. <br />General Fund 2014 Budget by Type <br />Personnel 61.6%3,663,632 <br />Contractual services 24.0%1,427,630 <br />Capital outlays 1.5%87,600 <br />Supplies 5.8%346,220 <br />Transfers 4.5%270,000 <br />Fire debt service 2.5%148,903 <br />Contingency 0.0%- <br /> Total 100%5,943,985 <br />General Fund 2014 Budget by Function <br />Police 42.6%2,534,336 <br />Public Works 13.1%779,986 <br />Park and Recreation 9.4%558,873 <br />Community Development 6.4%378,693 <br />Fire 6.3%376,434 <br />Administration 5.0%296,190 <br />Finance 3.9%229,098 <br />Central Services 4.0%236,066 <br />Legislative 1.0%58,793 <br />Debt Service 2.5%148,903 <br />Contingency 0.0%- <br />Misc. Contracual Service 1.3%76,613 <br />Transfers to other funds 4.5%270,000 <br />Total 100%5,943,985