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Item No. 1. <br />Meeting Date: July 7, 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: 2015 Draft General Fund Budget <br /> <br />There is no state levy limit for 2015. The charter will limit any levy increase to between 3 and 4 <br />percent. City departments have been refining their budgets and more adjustments will occur as <br />more accurate information becomes available. The state has concluded the current legislative <br />session with Local Government Aid (LGA) proposed to increase from $597,024 to $655,951. <br />LGA was included in the 2015 budget and there is no levy increase included at this time. <br /> <br />Ramsey County will hold their annual tax meeting at the end of August, they will release <br />preliminary valuation information at that time and staff will be able to calculate the preliminary <br />tax rate and the effect on properties. The Department of Labor Statistics will release inflation <br />data around August 12th. The City has concluded union negotiations with agreements in place <br />through 2016 providing for 2% cost-of-living adjustments. Another unknown is health insurance <br />rates, union contracts provide for up to a $40 increase in the City contribution depending on <br />premium increases. The City contribution for 2014 is $980 per employee. <br /> <br />General fund Assigned fund balance (levy reduction) will be approximately $5,737,000 at <br />December 31, 2014. The Council has been using a measured draw down of this amount by <br />$250,000 per year. For 2015, the make-up of this amount is approximately $59,000 interest <br />earnings and $191,000 in Assigned fund balance use. The preliminary imbalance is $396,213, <br />after considering the planned draw down of $250,000 there is an imbalance of $146,213. There <br />are a number of options that can be used to close this imbalance. (revenues, expenditures, fund <br />balance) <br /> <br />The City needs to certify a preliminary levy and General Fund budget to the County by <br />September 30th. (2014 law change) This can be done anytime over the next few months. Once <br />set the levy can go down but not up. The City will hold a truth in taxation meeting on Monday, <br />December 1st, 2014 at 6pm with a continuation meeting on Monday, December 8th, 2014 at 7pm <br />if needed. Final levy and budget approval may occur at the December 8th meeting. <br /> <br />Conclusion <br />Staff is looking for any additional direction from the Council on how they would like to proceed. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Mark Beer <br />1