Agenda Packets - 2026/06/01 - Laserfiche WebLink

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Item 03 Page 2 of 3 The Mounds View Vision A Thriving Desirable Community Street Improvement Fund • The current property tax levy is $300,000. • We continue to have sufficient projects to utilize our MSA street construction aid each year. It is projected that the projects in the plan will exceed the funding available and we will be drawing into future years to cover our costs. The City can look at an advance of MSA funds. • There is a definite need to stay on top of street improvement projects to ensure streets reach their useful lives and don’t require costly premature full reconstructions. Utility Funds • For all three utility funds, we are assuming an increase in user charges and a 3.0% inflationary increase in costs each of the 10 years. The user charges will be analyzed more closely in the fall. • Water Fund – the debt is paid off in 2036. The cash balance should be positive after that point. • Sewer Fund – no I&I grant funds have been included in the plan as the amounts are unpredictable. • Surface Water Fund – the City may need to look at postponing projects to avoid a fund deficit. Vehicle & Equipment Replacement Fund • Based on information received from the various departments, this fund is able to cover the costs of the vehicles and equipment anticipated to be replaced over the next 10 years. • The breakdown of taxes/transfers into this fund ($470,000) to cover the costs is as follows: Tax Levy $280,000 Water Fund $ 90,000 Sewer Fund $ 60,000 Surface Water Fund $ 40,000 Conclusion Staff is seeking direction from the City Council regarding the following items: 2027 projects As we review the 2027 projects, does the Council have any questions, comments or concerns about including them during budget preparation? 2027 property tax levy The levies currently being proposed for 2027 are: Vehicle/Equipment Replacement ($280,000); Special Projects ($75,000); and Street Improvement ($300,000). What changes, if any, should staff assume? Are there any parameters the Council wants to put on the total 2027 property tax levy as we move forward with budget preparation? 2027 Local Government Aid (LGA) 90% of LGA funding is included in the General Fund with the other 10% going to the Special Projects Fund for 2026. LGA has been unalloted in the past and staff would recommend trying to reduce reliance on these funds for general operations and instead, direct them more toward capital projects. Does the Council want to look at moving more of the LGA revenue to the Special Projects Fund? Utility Funds Staff will continue to evaluate the funds annually and propose increases only when needed. It does appear that the Water and Surface Water Management Funds will require fairly significant rate increases. Does the Council have any direction for staff regarding utility rates?