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Item No. 3. <br />Meeting Date: June 7, 2021 <br />Type of Business: Work Session <br />City Administrator Review: ______ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: 2022 Draft General Fund Budget <br /> <br />There is no state levy limit for 2022. The charter will limit any levy increase to between 4 and 5 <br />percent based on estimated inflation. The Department of Labor Statistics will release inflation <br />data around August 18th. City departments have been refining their budgets and more <br />adjustments will occur as more accurate information becomes available. The state has concluded <br />the current legislative session with a special session proposed for June 14th. Local Government <br />Aid (LGA) proposed to increase from $844,418 to $850,317. 90% of LGA was included in the <br />2022 budget. <br /> <br />Ramsey County will hold their annual tax meeting at the end of August, they will release <br />preliminary valuation information at that time and staff will be able to more accurately calculate <br />the preliminary tax rate and the effect on properties. The 2022 is the final year for the current <br />contracts for the three bargaining groups. Health insurance premiums will be provided in October <br />so will be an estimate at this time. The City contribution for 2021 is up to $1,170 per employee <br />per month. <br /> <br />General fund Assigned fund balance (levy reduction) will be approximately $4,816,748 at <br />December 31, 2021. The Council has been using a measured draw down of the levy reduction <br />fund balance. The Strategic Plan proposes that to drop to $238,000 for 2022. The preliminary <br />imbalance is $494,653, after considering the planned draw down of $238,000 from the levy <br />reduction fund balance there is an imbalance of $256,653. There are several options that can be <br />used to close this imbalance. (Increase revenues, reduce expenditures, use fund balance, or a <br />combination of all three) A 1% levy increase would generate an additional $58,663. <br /> <br />The City needs to certify a preliminary levy and General Fund budget to the County by September <br />30th. This can be done anytime over the next few months. Once set the levy can go down but <br />not up. The City will hold a truth in taxation meeting on Monday, December 6th, 2021 at 6:00pm <br />with a continuation meeting on Monday, December 13th, 2021 at 6:30 pm if needed. Final levy <br />and budget approval may occur at the December 13th meeting. <br /> <br />Conclusion <br />Staff is looking for any additional direction from the Council on how they would like to proceed. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Mark Beer