Agenda Packets - 2018/09/10 - Laserfiche WebLink

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To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9010 Authorizing Certification of the Preliminary General Fund Budget and Preliminary Property Tax Levy for Fiscal Year 2019 State law requires that the City certify a preliminary General Fund Budget and preliminary property tax levy to Ramsey County by September 30. The City Council reviewed the General Fund budget at the June work session and will review the budget again before final approval in December. The City Council is considering a preliminary levy increase of up to 4.4%. The Charter limits the levy increase to 4.4% which is inflation plus 2%. (Inflation is 2.4%) Each 1% levy increase is an additional $49,740. The state has certified Local Government Aid (LGA) for 2019 at $739,446. Staff recommends that we budget for 90% of that amount. ($665,501) LGA is included in the General Fund budget and use of Assigned Fund balance of $250,000 is also included. Unassigned fund balance was $3,710,891 at December 31, 2017 and represents 50.6% of draft 2019 budgeted expenditures and transfers in. The Assigned Levy Reduction fund balance is $5,478,848 at 12-31- 17 and will be approximately $5,311,031 at December 31, 2018. The base General Fund levy would be $4,244,285 and special levies for Fire Debt Service of $165,800, 2004 police personnel referendum of $210,000, 2017 police personnel referendum of $100,000, PERA rate increase special levy of $39,145 for a total General Fund levy of $4,759,230. A debt service levy for the 2017A PW Facility Debt Service is $418,446 an increase of $3,412 over 2018. A base levy for the Street Improvement fund of $150,000 will be established for 2019. The EDA would have a base levy of $100,000, no increase over 2018. The total of all base and special levies proposed is $5,427,676, a 9.12% or $453,691 increase over 2018. Once this amount is set, the levy cannot be increased but can be lowered. The final levy will be adopted on or about December 10, 2018 along with the General Fund budget and all other City funds budgets. The draft General Fund budget for preliminary approval is $7,346,454. This amount is subject to change as the Council gets additional information but should not change significantly before final adoption. Respectfully submitted, 1 Mark Beer, Finance for