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MOUN-DitSMEW <br />City of Mounds View Staff Report <br />Item No. 8.C. <br />Meeting Date: May 8, 2023 <br />Type of Business: Council Business <br />City Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 9750 Adopting a Five Year Financial Plan for 2024 <br />thru 2028 <br />Introduction: <br />The City Charter, Chapter 7.05, requires that a five year financial plan be prepared annually. It <br />must be presented at a public meeting and adopted by motion or resolution. Residents are <br />welcome to comment on the plan at this meeting. <br />The components of the Five Year Financial Plan are attached for Council consideration. There <br />are several components to the Five Year Financial Plan. These are the General Fund Multi -year <br />Operating Budget, the Vehicle & Equipment Replacement Plan, the Capital Improvement <br />Program, the Impact on Capital Projects Funds' Cash Balance, and Utility Rate Studies. <br />This five year plan should be considered a work -in -progress and a guide for Council and Staff to <br />make longer range decisions. As new information becomes available and conditions change we <br />can update the components to determine the longer range effect. <br />General Fund Multi -year Operating Budget: <br />The multi -year operating budget for the General Fund includes Local Government Aid (LGA) at <br />90% of the anticipated amount for 2022 and beyond. The City is projected to receive $857,240 <br />in LGA under current law for 2023 and certified aid is $850,373 for 2022. <br />The plan reflects a 5% increase in expenditures for 2024 and 2025 and 4.5% for 2026 thru 2028. <br />A 6% levy increase is reflected for 2024, 2025, 5.75% for 2026, and 5% for 2027 and 2028. When <br />possible staff used known amounts instead of projections. This version of the budget assumes <br />that there will be one addition to personnel in 2024 and no other major changes in operating <br />expenditures. We have had 9 to 11 seasonals in Public Works with 15 to 20 at the Community <br />Center. Hiring of seasonal and part-time staff for the Community Center/Parks Programs has <br />been the greatest challenge. <br />Capital Improvement Program (CIP): <br />The Capital Improvement Program has been updated to reflect changes in the project list and is <br />presented for your consideration. There are a number of projects that have no current funding <br />source and are reflected as unfunded in the CIP. <br />The Mounds View Vision <br />A Thriving Desirable Community <br />