Minutes - 2009/09/14 - Laserfiche WebLink

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Mounds View City Council September 14, 2009 Regular Meeting Page 2 • 7. COUNCIL BUSINESS A. Resolution 7494, Authorizing Certification of the Proposed General Fund Budget and Property Tax Levy for Fiscal Year 2010. Finance Director Beer reviewed the impact of unallotted LGA and the State levy cap. In addition, the City's Charter cap formula allows fora 1 % levy increase. Finance Director Beer presented the totals for the general fund levy and special levies, resulting in an increase of $337,994 or 8.9% over 2009. He explained that State law requires the City to certify a proposed 2010 General Fund Budget and proposed 2010 property tax levy to Ramsey County by September 15, 2009. Once set by the City Council, it can be lowered but not increased. Finance Director Beer reviewed a sample impact of estimated taxes for a median home value in Mounds View, noting an increase of $124. William Werner, 2765 Sherwood Road, suggested the tax reduction fund be used to reduce taxes. Finance Director Beer stated that fund contains $6.5 million and the Council has directed to transfer and use $250,000 from the tax reduction fund. Naja Werner, 2765 Sherwood Road, suggested expenses be cut, possibly including reduced staff or frozen salaries. She felt there would be a long-term impact and expressed concern about the City's high number of home foreclosures. • Finance Director Beer presented three scenarios for use of the tax levy reduction fund, noting the dates by which the fund would be depleted depending on the extent of the levy increase approved. Mr. Werner asked what the increase would be today without the levy reduction fund. Finance Director Beer stated $250,000 would have to be added to the live. Brian Amundsen, 3048 Wooddale Drive, referenced the 2010 budget summary and asked if the total revenue increase was $470,000 in 2009. Finance Director Beer stated the grand total of LGA was $642,000. Mr. Amundsen stated that in 2008 the actual was $5.6 million spent and in 2009 it goes to $6.1 million, or an increase of about 10%. Finance Director Beer noted that in 2008, LGA of $148,000 was unalloted by the State. Clerk-Administrator Ericson advised that a 10% increase was not anticipated because of the unallotment by the State. Mr. Amundsen stated he felt it was appropriate that the 2010 projected budget was back to the 2008 level. He stated that in 2008, he had suggested the LGA money be put aside as "rainy day money" and not be used. However, the City used the funds and now the State has unalloted those funds. Mr. Amundsen noted that all are seeing decreases in family income and salaries yet the government is having more needs and wanting more tax dollars. He suggested that the economic dilemma would continue, possibly for several years. He felt it was appropriate now to use the levy reduction fund, possibly heavily for the next two to three years. He urged the Council to • keep expenses in check with the assumption there will be no additional revenues for several years.