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Item No. 2. <br />Meeting Date: July 2, 2012 <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: 2013 Draft General Fund Budget <br /> <br /> <br />The City Council’s direction for the 2013 General Fund budget was no levy increase for 2013. <br />City departments have been refining their budgets and more adjustments will occur as more <br />accurate information becomes available. The state has concluded the current legislative <br />session with Local Government Aid (LGA) frozen at $232,078. <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 on August 13th. The City has signed union contracts thru 2013 and the only unknown is <br />health insurance rates. The City contribution is dependent upon the percentage increase in <br />premiums with a maximum increase of $32.67. Rates will be available in late August or early <br />September. <br /> <br />General fund Committed fund balance (levy reduction) will be approximately $6,131,000 at <br />December 31, 2012. The Council has been using a measured draw down of this amount by <br />$250,000 per year. For 2013, the make-up of this amount is approximately $86,000 interest <br />earnings and $164,000 in Committed fund balance use. <br /> <br />The City needs to certify a preliminary levy and General Fund budget to the County by <br />September 15th. This can be done anytime over the next few months. Once set the levy can go <br />down but not up. The City will hold a truth in taxation meeting on Monday, December 3rd, 2012 <br />at 6pm with a continuation meeting on Monday, December 10th, 2012 at 7pm if needed. Final <br />levy and budget approval may occur at the December 10th 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