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MOUNDS VWW
<br />City of Mounds View Staff Report
<br />Item No: 8.D.
<br />Meeting Date: September 8, 2025
<br />Type of Business: Council Business
<br />City Administrator Review:
<br />To: Honorable Mayor and City Council
<br />From: Gayle Bauman, Finance Director
<br />Item Title/Subject: Resolution 10150 Approving the Preliminary Property Tax Levy for
<br />Fiscal Year 2026 and Setting the Public Hearing Date
<br />State law requires that the City certify a preliminary property tax levy to Ramsey County by September 30.
<br />The City Council has had discussions on the General Fund budget, and will review the budget again before
<br />final approval in December.
<br />The Charter limits the levy increase to 6.5% with a simple majority or up to 9% with a 4/5ths super majority
<br />unless otherwise excluded (EDA, referendums and debt service/capital levies are excluded from the charter
<br />limit). Each 1 % levy increase is an additional $74,721. The state has certified Local Government Aid (LGA)
<br />for 2026 at $1,033,559.
<br />The Strategic Plan adopted by the City Council calls for less dependence on LGA. This goal is
<br />not being met, as LGA is included in the General Fund budget at 100% of the certified amount.
<br />The Strategic Plan also calls for reducing dependence on the Levy Reduction Assigned Fund
<br />balance. None of these funds were proposed to be used to balance the 2025 budget and they
<br />are not included in the 2026 budget.
<br />The Assigned Levy Reduction fund balance was $2,548,470 at December 31, 2024. If these funds are not
<br />used to balance the General Fund balance, council can direct them to be used in other areas of the City such
<br />as capital projects.
<br />Based on council discussion, the preliminary levy increase is set at 9.00% to provide flexibility for the Council
<br />in case there are unforeseen challenges between now and final adoption. The goal is to have the smallest
<br />levy increase needed. Once this amount is set, the levy cannot be increased but can be lowered. The final
<br />levy will be adopted on or about December 8, 2025, along with the General Fund budget and all other City
<br />budgets. The EDA levy will be set in a separate resolution.
<br />History of the total City levy is as follows:
<br />2019 2020 2021 2022 2023 2024 2025 2026
<br />General levy 4,283,430 4,511,393 4,706,004 4,961,188 5,303,635 5,744,565 6,084,172 6,848,989
<br />Referendum levy 310,000 330,000 330,000 385,000 385,000 385,000 420,000 420,000
<br />EDA I evy 100,000 100,000 100,000 100,000 100,000 100,000 160,000 160,000
<br />Fire Debt 165,800 171,190 166,291 165, 916 127,164 88,910 89,640 -
<br />GO Debt 418,446 416,294 413,984 416,766 413,983 416,293 418,288 415,600
<br />Debt/Capital (Streets) levy 150,000 150,000 150,000 150,000 150,000 150,000 300,000 300,000
<br />Total Levy S,427,676 5,678,877 5,866,279 6,178, 870 6,479,782 6,884,768 7,472,100 8,144, 589
<br />Change 9.12% 4.63% 3.30% 5.33% 4.87% 6.25% 8.53% 9.00%
<br />The draft General Fund budget is $9,367,319. This amount is subject to change as the Council gets additional
<br />information and provides additional direction to staff before final approval in December.
<br />The Mounds View Vision
<br />A Thriving Desirable Community
<br />
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