Agenda Packets - 2006/01/09 - Laserfiche WebLink

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Mounds View City Council December 5, 2005 Truth in Taxation Meeting Page 2 1 Finance Director Beer then displayed a bar graph showing the General Fund Expenditures for the 2 last three years, noting the General Government line has increased slightly each year. For 2006 3 the primary driver behind the increase will be the addition of a temporary building inspector that 4 will be paid by the permit fees from The Bridges redevelopment. Public Safety shows an 5 increase due to an increased costs for police protection of 4.34% and fire protection of 5.25% 6 over the previous year. Other expenditures have remained relatively flat. He explained that the 7 increase in streets and highways reflects the resumption of street projects and a small amount of 8 inflation. The debt service for the fire bonds reflects the construction of a new fire department. 9 10 Finance Director Beer presented a pie chart identifying General Fund Expenditures by Function, 11 explaining the functions within each category. He pointed out that the Public Safety function is 12 by far the largest expenditure in the General Fund budget. Finance Director Beer then presented 13 a bar graph showing a comparison of the per capita expenditures when compared to the State 14 average. He explained this shows 2003 data, which is the most current data available from the 15 State Auditor, noting Mounds View is below the average per capita in every category. He read a 16 listing of each category and advised where Mounds View ranked out of 215 cities over 2,500 in 17 population. He pointed out that for total expenditures Mounds View is ranked 205 out of 215, or 18 at the very bottom. 19 20 Finance Director Beer stated General Fund expenditures will increase in 2006 for the following 21 reasons: Capital Expenditures will increase $119,432 in conjunction with planned replacements, 22 the Fire Department debt service will increase $89,555, the temporary housing inspector and plan 23 review of The Bridges development will cost $141,348, and inflation and miscellaneous 24 operation changes will account for about $148,340, for a total increase in General Fund 25 expenditures of $498,673. 26 27 Finance Director Beer stated all this leads to a property tax levy being unchanged for 2006. He 28 displayed the data for the 2005 and 2006 levy, noting the base levy went down slightly to 29 accommodate a higher debt service levy. The overall effect with be a zero dollar and zero 30 percent increase in the City’s tax levy for 2006. 31 32 Finance Director Beer presented a three-year graph of revenues by source, noting general 33 property taxes makes up the biggest portion of revenues and shows property taxes as being stable 34 for the past two years. It also identifies the decrease in intergovernmental revenues, which 35 identifies the cuts in Local Government Aid over the last three years. He noted the graph shows 36 an increase in transfers from other funds, partly to off set the cost of capital equipment that will 37 be purchased as part of the planned replacement and reflects monies coming in from the levy 38 reduction fund to off set the cost of the temporary building inspector and supplement the general 39 fund levy. 40 41 Finance Director Beer reported that Mounds View is ranked 93 out of 215 cities for tax capacity 42 and 174 out of 215 for net tax capacity. Property taxes as a whole would equate to a rank of 143 43 out of 215 which again is on the bottom side of the State ranking. In 2003, the State-wide 44 average for taxes was $366 per capita. 45