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The Mounds View Vision A Thriving Desirable Community Item No. 8.D. Meeting Date: May 13, 2019 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9109 Adopting a Five Year Financial Plan for 2020 thru 2024 Introduction: The City Charter, Chapter 7.05, requires that a five year financial plan be prepared annually. It must be presented at a public meeting and adopted by motion or resolution. Residents are welcome to comment on the plan at this meeting. The components of the Five Year Financial Plan are attached for Council consideration. There are several components to the Five Year Financial Plan. These are the General Fund Multi-year Operating Budget, the Vehicle & Equipment Replacement Plan, the Capital Improvement Program, the Impact on Capital Projects Funds’ Cash Balance, and Utility Rate Studies. This five year plan should be considered a work-in-progress and a guide for Council and Staff to make longer range decisions. As new information becomes available and conditions change we can update the components to determine the longer range effect. General Fund Multi-year Operating Budget: The multi-year operating budget for the General Fund includes Local Government Aid (LGA) at 90% of the anticipated amount for 2020 and beyond. The City is projected to receive $744,315 in LGA under current law for 2020 and certified aid is $739,446 for 2019. The plan reflects a 4% increase in expenditures for 2020, 2021, and 3.5% for the remaining years. A 3.8% levy increase is reflected for 2020 and 4.5% for all years after. When possible staff used known amounts instead of projections. Past levy increases were 2% - 2014 and 2015, 1% - 2016, 1.71% - 2017, 4.3% - 2018, and 4.4% - 2019. This version of the budget assumes that there will be no additions to personnel or other major changes in operating expenditures. City staff has varied by 1 or 2 positions over the last 20 years with an average of 49.675 FTE’s over that period. Public Works has added 1 FTE, Police have added 2 FTE’s, and Admin has added a .4 FTE, while Community Development and Finance have each lost a position over that period. We have had 9 to 11 seasonals over that same period. Capital Improvement Program (CIP): The Capital Improvement Program has been updated to reflect changes in the project list and is presented for your consideration. There are a number of projects that have no current funding source and are reflected as unfunded in the CIP.