Agenda Packets - 2009/08/03 - Laserfiche WebLink

Home Browse Search

Item No: 9 Meeting Date: August 3, 2009 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: General Fund Budget Review Attached is the General Fund budget for your consideration. The State will release information on the amount of local government aid (LGA) the City will receive in 2010 on August 3rd. I have included a preliminary number based on projections from the state however this amount will change due to proposed unallotment of $340,000. The current budget draft includes a levy increase of 2 ½ percent and a transfer from the Levy Reduction Fund of $250,000, which is similar to the 2009 amount. The City will be subject to the State levy limit and the City Charter levy limit, each impacts the City differently as they have different exceptions. The State levy limit will be approximately .86% with adjustments for the change in population and increase in market value of commercial & industrial property. The State cap allows for additional levy increases for unalloted state aid. ($294,964) The overall levy under the State cap (General Fund & Street Debt Service Fund) could increase by $330,000 or 8.69%. The City Charter cap will allow the lower of 2% plus inflation or 5%. Inflation has been low so staff is using 2 ½ percent or $94,985 as an overall levy increase. The difference between the two amounts could be levied for the street program. ($330,000 – 94,985 = 235,015) Expenditures decreased by 3.17% over 2009 ($193,344). Salary increases were limited to step increases with COLA at 0%. The City contribution for healthcare premiums was not increased. The City’s cost of fuel and energy will stay at current levels. Information technology (IT) expenses will not increase. The Community Center transfer has been reduced by $10,000 and we may be able to further reduce this depending on use of the banquet facility ($175,000). As additional information becomes available, the budget will be adjusted accordingly, this may require the City Council to continue to evaluate and reconsider items that have been agreed upon. We presently have a deficit of $173,960 before considering any additional reductions in expenditures, use of fund balance, or additional transfers from the Levy Reduction fund. Staff welcomes any comments, questions, or suggestions from Citizens or the City Council. Respectfully Submitted, Mark Beer