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MOtnvns MEvv City of Mounds View Staff Report Item No. 8.13. Meeting Date: May 9, 2022 Type of Business: Council Business City Administrator Review: To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 9690 Adopting a Five Year Financial Plan for 2023 thru 2027 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 2022 and beyond. The City is projected to receive $857,240 in LGA under current law for 2023 and certified aid is $850,373 for 2022. The plan reflects a 4.5% increase in expenditures for 2023 and 4% for 2024, and 3.5% for the remaining years. A 5% levy increase is reflected for 2023 thru 2026 and 4.5% for 2027. When possible staff used known amounts instead of projections. 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 .5 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. Hiring of seasonal and part-time staff for the Community Center/Parks Programs has been the greatest challenge. 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.