Agenda Packets - 2009/06/09 - Laserfiche WebLink

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Item No. 8. Meeting Date: June 1, 2009 Type of Business: Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Discussion of Priorities for the 2010 Budget In the coming weeks, City staff will begin working on the details of the 2010 budget. This item is placed on the agenda to give the City Council and residents the opportunity to provide input to staff early in the process. Department Heads can then use this guidance as they work on the details of their proposed budgets. Key 20 10 Budget Issues: The Legislature has adjourned and the Governor has indicated that he will not call a special session. He will use the line-item veto, accounting shifts, and unallotment to balance the budget for the period beginning on July 1, 2009 and ending on June 30, 2011(biennium). For 2009, we anticipate a cut in Local Government Aid (LGA) of $225,000. For 2010, the amount is not as certain but based on the Governor’s initial budget we are projected to have LGA cut by $468,000. The Governor plans to make his cuts before the new biennium begins on July 1 so we should have more information soon. Inflation is nonexistent at present and the state levy cap will be .76% for 2010 compared with 3.9% for 2009. The state levy cap will be in effect thru 2011. Legislation was passed that will allow cities and counties to treat unalloted aid as a special levy and thus not subject to the state levy cap. (08 - $143,521, 09 – $225,000) This does not help us as the charter cap will take effect and only excludes debt service and capital project General Fund 2009 Budget by Type Personnel 60.0%3,654,769 Contractual services 21.0%1,281,517 Capital outlays 3.4%206,589 Supplies 4.7%287,686 Transfers 5.9%360,000 Fire debt service 2.5%151,328 Contingency 2.5%150,000 Total 100%6,091,889