HomeMy WebLinkAboutFinance department presentation to the Mounds view charterFINANCE DEPARTMENT
PRESENTATION FOR THE
MOUNDS VIEW CHARTER
COMMISSION
MARCH 23, 2021
VISION AND MISSION STATEMENT
VISION
A T HRIVING DESIRABLE COMMUNITY
MISSION
PROVIDE HIGH QUALITY PUBLIC SERVICES IN A FISCALLY
RESPONSIBLE MANOR
OVERVIEW OF CITY OF MOUNDS VIEW
FUND STRUCTURE
General Special Revenue Debt Service Capital Projects Enterprise
General Fund Cable 2017A Debt Service Park Dedication Water
Police Forfeiture Vehicle & Equipment Sewer
EDA Special Projects Street Light
Community Center Street Improvement Storm Water
Lakeside Park
Recycling
TIF District No. 5
TIF District No. 6 Bold –Tax Supported
GENERAL FUND
Departments
City Council
Advisory Commissions
City Administrator
Elections
Finance
Central Services
Community Development
Police
Fire
Park Maintenance
Forestry
Public Works Administration
Building and Grounds Maintenance
Vehicle and Equipment Maintenance
Street Pavement management
Snow and Ice Control
Street Sign Maintenance
Convention and Visitors Bureau
Miscellaneous
Debt Service
50%
11%
13%
7%
6%
10%
2%1%
Expenditure by Function
Public Safety Streets & Highways
General Government Park & Recreation
Community Development Transfers
Debt Service Other
GENERAL FUND
70%
13%
6%
5%3%3%
Revenue Budget by Source
Property Taxes Intergovernmental Other Revenues
Other Taxes Licenses & Permits Transfers
62%
22%
4%
2%
10%
Expenditure Budget by Type
Personnel Contractual Services
Supplies Debt Service
Transfers
HOW DID WE GET HERE?
THE RECESSION OF 2001/2002 CAUSED THE STATE TO SLASH
LOCAL GOVERNMENT AID TO CITIES STARTING IN 2003.
MOUNDS VIEW AID DECLINED FROM $790,000 IN 2002 TO $0 IN
2006, THIS REPRESENTED 16.5% OF THE 2002 BUDGET.
THE CITY COUNCIL WAS FORCED TO INCREASE PROPERTY TAXES
TO REPLACE SOME OF THE LOST AID (2004 –19%, 2005 –25%)
FUND BALANCE DECLINED BY 36% IN 2003 TO ABSORB THE AID
REDUCTION THAT WAS PASSED ON TO CITIES AFTER THEIR
BUDGETS WERE SET. (NOT THE LAST TIME THIS HAPPENED)
CHALLENGES
INFLATION AT THE CITY LEVEL IS NOT THE SAME AS WHAT WE
EXPERIENCE ON A PERSONAL LEVEL –LABOR, CONTRACTUAL
SERVICES, ENERGY, AND CONSTRUCTION COSTS ARE THE COST
DRIVERS AT THE CITY LEVEL. THESE COSTS TEND TO INCREASE
AT A HIGHER RATE THEN THE PUBLISHED RATE OF INFLATION.
CHALLENGES
THE CITY IS ASKED TO DO MORE BY THE FEDERAL GOVERNMENT, THESTATEGOVERNMENT, THE COUNTY GOVERNMENT, THEMETROPOLITANCOUNCIL, RESIDENTS, AND BUSINESSES.
CHANGING DEMOGRAPHICS AND AN INCREASING POPULATION ALSO
REQUIRE MORE SERVICES. (2010 –12,155, 2020 –13,513)
THIS HAS BEEN DONE WITH ESSENTIALLY THE SAME SIZED STAFF FOR
THE LAST 20 YEARS. WE HAVE AVERAGED ABOUT 50 FTE’S DURING
THAT PERIOD WITH 2021 BUDGETED AT 52.5. IT HAS BECOME MORE
DIFFICULT TO MAINTAIN THE SAME LEVEL OF SERVICES AND RESPOND
TO INCREASING GOVERNMENTAL REQUIREMENTS AND AN INCREASING
POPULATION.
CHALLENGES
FUND BALANCE WILL DECLINE AS A PERCENTAGE OF REVENUE,
WHICH WILL MAKE IT MORE DIFFICULT TO RESPOND TO FUTURE
CHALLENGES SHOULD THEY OCCUR.
FUND BALANCE
THE MINNESOTA STATE AUDITOR AND THE GOVERNMENT
FINANCE OFFICERS ASSOCIATION RECOMMEND
MAINTAINING A GENERAL FUND BALANCE OF BETWEEN
35% AND 50% OF FUND OPERATING REVENUES DUE TO
THE TIMING OF TAX COLLECTIONS (JULY AND DECEMBER)
(REVIEW MULTI -YEAR GENERAL FUND BUDGET)
City of Mounds View
Five Year Financial Plan
General Fund Multi-year Operating Budget 2022 thru 2026
4.00%4.00%3.50%3.50%3.50%3.50%3.50%3.50%3.50%3.50%
2018 2019 2020 2021 Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Actual Actual Actual Budget 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Interest 0.50%0.50%1.00%1.00%1.25%1.25%1.25%1.25%1.25%1.25%
Other revenues 2.25%2.25%2.25%2.25%2.25%2.25%2.25%2.25%2.25%2.25%
Revenues:Levy 3.50%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00%
Property taxes - Base levy 4,082,924$ 4,245,901$ 4,516,708$ 4,666,859$ 4,848,939$ 5,064,713$ 5,287,748$ 5,518,702$ 5,759,555$ 6,017,281$ 6,282,015$ 6,558,047$ 6,845,858$ 7,145,950$
Property taxes - Special levies (not subject to cap)244,145 349,145 369,145 369,145 374,145 379,145 394,311 410,083 426,487 443,546 461,288 479,739 498,929 518,886
Property taxes - debt levies (not subject to cap)90,835 165,800 171,190 166,291 171,268 132,014 91,778 92,534 257,131 157,500 157,500 157,500 157,500 157,500
Total taxes 4,417,904 4,760,846 5,057,043 5,202,295 5,394,352 5,575,873 5,773,838 6,021,319 6,443,173 6,618,328 6,900,802 7,195,286 7,502,287 7,822,336
Franchise tax 338,919 308,835 301,756 305,000 311,863 318,879 326,054 333,390 340,892 348,562 356,404 364,423 372,623 381,007
Other taxes 23,046 26,477 29,309 26,000 26,585 27,183 27,795 28,420 29,060 29,713 30,382 31,066 31,765 32,479
Hotel/motel tax 77,115 71,957 29,264 50,000 51,125 52,275 53,452 54,654 55,884 57,141 58,427 59,742 61,086 62,460
Licenses and permits 312,047 348,201 269,446 245,872 251,404 257,061 262,845 268,759 274,806 280,989 287,311 293,776 300,385 307,144
Intergovernmental 1,229,019 1,303,053 2,419,722 956,075 1,226,189 1,253,778 1,281,988 1,310,833 1,340,326 1,370,484 1,401,319 1,432,849 1,465,088 1,498,053
Charges for services 23,736 38,007 60,385 24,625 33,517 34,271 35,042 35,831 36,637 37,461 38,304 39,166 40,047 40,948
Fines & forfeitures 35,800 46,098 25,596 33,750 34,509 35,286 36,080 36,892 37,722 38,570 39,438 40,326 41,233 42,161
Interest 157,074 316,381 196,579 60,000 60,300 60,602 61,208 61,820 62,592 63,375 64,167 64,969 65,781 66,603
Miscellaneous 304,719 323,497 310,601 298,162 304,871 311,730 318,744 325,916 333,249 340,747 348,414 356,253 364,269 372,465
Transfers:3%3%3%3%3%3%3%3%3%3%3%3%3%3%
Water Fund (3%)78,103 80,446 82,859 85,345 87,905 90,542 93,259 96,056 98,938 101,906 104,963 108,112 111,356 114,696
Sewer Fund (3%)61,860 80,446 82,859 85,345 87,905 90,542 93,259 96,056 98,938 101,906 104,963 108,112 111,356 114,696
Street Light Fund (3%)2,771 2,854 2,940 3,028 3,119 3,213 3,309 3,408 3,511 3,616 3,724 3,836 3,951 4,070
Storm Water Fund (3%)8,067 8,309 8,558 8,815 9,079 9,352 9,632 9,921 10,219 10,525 10,841 11,166 11,501 11,846
Vehicle & Equipment Fund - - - 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000
Debt issued (bonds, certificates or leases)175,191 - - - - - - - - - - - - -
Total revenues 7,245,371 7,715,407 8,876,917 7,409,312 7,908,723 8,147,587 8,404,502 8,712,275 9,195,945 9,434,323 9,781,461 10,142,082 10,516,728 10,905,965
6.92%6.49%15.05%-16.53%6.74%3.02%3.15%3.66%5.55%2.59%3.68%3.69%3.69%3.70%
Operating Expenditures:
Legislative Services:
City Council 58,903 58,013 50,168 62,239 64,729 67,318 69,674 72,112 74,636 77,249 79,952 82,751 85,647 88,645
Advisory Commissions 15,352 39,379 3,900 26,000 27,040 28,122 29,106 30,125 31,179 32,270 33,400 34,569 35,779 37,031
Subtotal 74,255 97,392 54,068 88,239 91,769 95,439 98,780 102,237 105,815 109,519 113,352 117,319 121,425 125,675
Administrative Services:
City Administrator 286,882 305,115 307,051 310,722 323,151 336,077 347,840 360,014 372,614 385,656 399,154 413,124 427,584 442,549
Elections 33,460 26,954 27,023 36,265 37,716 39,224 40,597 42,018 43,489 45,011 46,586 48,217 49,904 51,651
Finance 268,325 274,866 282,535 294,777 306,568 318,831 329,990 341,540 353,493 365,866 378,671 391,924 405,642 419,839
Central Services 261,610 298,124 252,162 312,459 324,957 337,956 349,784 362,027 374,697 387,812 401,385 415,434 429,974 445,023
Subtotal 850,277 905,059 868,771 954,223 992,392 1,032,088 1,068,211 1,105,598 1,144,294 1,184,344 1,225,796 1,268,699 1,313,104 1,359,062
Community Development 435,152 441,676 417,362 477,040 496,122 515,966 534,025 552,716 572,061 592,083 612,806 634,255 656,453 679,429
Police 2,969,790 3,325,570 3,258,674 3,442,885 3,580,600 3,723,824 3,854,158 3,989,054 4,128,671 4,273,174 4,422,735 4,577,531 4,737,745 4,903,566
Fire 431,873 467,982 470,990 469,289 488,061 507,583 525,348 543,736 562,766 582,463 602,849 623,949 645,787 668,390
Public Works Administration 149,353 153,706 118,975 123,606 128,550 133,692 138,371 143,214 148,227 153,415 158,784 164,342 170,094 176,047
Operating Expenditures: (continued)
Parks, Recreation & Forestry:
Recreation 123,961 125,940 96,795 - - - - - - - - - - -
Parks 286,911 342,429 399,410 467,094 485,778 505,209 522,891 541,192 560,134 579,739 600,030 621,031 642,767 665,264
Forestry 36,836 44,185 64,092 54,213 56,382 58,637 60,689 62,813 65,012 67,287 69,642 72,080 74,602 77,213
Subtotal 447,708 512,554 560,297 521,307 542,159 563,846 583,580 604,006 625,146 647,026 669,672 693,110 717,369 742,477
Public Works
Building & Grounds Mtnce 144,415 143,343 171,070 153,709 159,857 166,252 172,070 178,093 184,326 190,778 197,455 204,366 211,519 218,922
Vehicle & Equipment Mtnce 124,811 113,381 136,104 132,526 137,827 143,340 148,357 153,550 158,924 164,486 170,243 176,202 182,369 188,752
Subtotal 269,226 256,724 307,174 286,235 297,684 309,592 320,427 331,642 343,250 355,264 367,698 380,567 393,887 407,673
Streets:
Pavement Management 205,269 234,368 218,180 226,268 235,319 244,731 253,297 262,162 271,338 280,835 290,664 300,837 311,367 322,265
Snow & Ice Control 168,529 177,992 161,346 154,884 161,079 167,523 173,386 179,454 185,735 192,236 198,964 205,928 213,135 220,595
Sign Maintenance 47,325 47,318 42,676 68,283 71,014 73,855 76,440 79,115 81,884 84,750 87,716 90,787 93,964 97,253
Subtotal 421,123 459,678 422,202 449,435 467,412 486,109 503,123 520,732 538,958 557,821 577,345 597,552 618,466 640,113
Other
Convention & Visitor's Bureau 73,260 65,455 29,314 47,500 48,569 49,662 50,779 51,921 53,090 54,284 55,506 56,754 58,031 59,337
Social Service Coordination 20,748 35,329 57,054 51,656 53,722 55,871 57,827 59,851 61,945 64,113 66,357 68,680 71,084 73,572
Miscellaneous/contingency 3,766 3,662 3,577 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500
Transfers to EDA 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Transfers to Comm Ctr fund 190,000 190,000 550,000 350,000 350,000 360,000 360,000 370,000 370,000 380,000 380,000 390,000 390,000 400,000
Transfers to Vehicle fund 300,000 325,000 299,000 299,000 325,000 325,000 325,000 350,000 350,000 350,000 350,000 375,000 375,000 375,000
Transfers to Special Projects fund 100,000 125,000 475,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 110,000 115,000 120,000 125,000
Debt service - Fire Bonds 130,123 166,112 163,036 158,372 163,112 125,728 87,408 88,128 244,887 150,000 150,000 150,000 150,000 150,000
Debt service - Lease (ESP)24,495 24,495 166,468 - - - - - - - - - - -
Subtotal 892,392 985,053 1,793,449 1,038,028 1,076,903 1,057,761 1,027,514 1,071,400 1,236,422 1,159,898 1,168,363 1,211,934 1,220,615 1,239,409
Total operating expenditures 6,941,149 7,605,394 8,271,962 7,850,287 8,161,652 8,425,900 8,653,538 8,964,335 9,405,610 9,615,007 9,919,401 10,269,259 10,594,946 10,941,841
Percent increase(decrease) over PY 6.25%9.57%8.76%-5.10%3.97%3.24%2.70%3.59%4.92%2.23%3.17%3.53%3.17%3.27%
Capital Expenditures:
Fire 240,227 59,761 51,194 7,560 150,000 125,000 200,000 175,000 87,750 75,160 162,500 162,500 162,500 162,500
Subtotal 240,227 59,761 51,194 7,560 150,000 125,000 200,000 175,000 87,750 75,160 162,500 162,500 162,500 162,500
Total expenditures 7,181,376 7,665,155 8,323,156 7,857,847 8,311,652 8,550,900 8,853,538 9,139,335 9,493,360 9,690,167 10,081,901 10,431,759 10,757,446 11,104,341
venue over (under) expenditures 63,995 50,252 553,761 (448,535) (402,930) (403,313) (449,036) (427,060) (297,415) (255,844) (300,440) (289,677) (240,718) (198,377)
ginning Fund Balance 9,476,539 9,540,534 9,590,786 10,144,547 9,696,012 9,293,082 8,889,769 8,440,733 8,013,673 7,716,258 7,460,414 7,159,974 6,870,297 6,629,579
ding Fund Balance 9,540,534$ 9,590,786$ 10,144,547$ 9,696,012$ 9,293,082$ 8,889,769$ 8,440,733$ 8,013,673$ 7,716,258$ 7,460,414$ 7,159,974$ 6,870,297$ 6,629,579$ 6,431,202$
246,000 242,000 238,000 234,000 230,000 226,000 222,000 218,000 214,000 210,000 206,000 202,000
signed for Levy Reduction by Council Res.5,337,607 5,217,724 4,971,724 4729724 4,515,372.62 4,303,949 4,116,989 3,932,159 3,759,310.85 3,588,302.24 3,419,156.02 3,251,895.47 3,086,544.16 2,923,125.96
signed for Balancing Subsequent Budget (50,252) (553,761) 448,535 402,930 403,313 449,036 427,060 297,415 255,844 300,440 289,677 240,718 198,377 142,455
assigned Fund Balance 4,253,179 4,926,823 4,724,288 4,563,358 4,374,396 4,136,784 3,896,684 3,784,099 3,701,103 3,571,672 3,451,141 3,377,683 3,344,658 3,365,621
Total Fund Balance 9,540,534 9,590,786 10,144,547 9,696,012 9,293,082 8,889,769 8,440,733 8,013,673 7,716,258 7,460,414 7,159,974 6,870,297 6,629,579 6,431,202
Unassigned Fund Balance % of
subsequent years revenues 55.13%55.50%63.76%57.70%53.69%49.22%44.73%41.15%39.23%36.51%34.03%32.12%30.67%29.76%
QUESTIONS AND DISCUSSION
THE CITY COUNCIL IS ASKING THE CHARTER COMMISSION TO CONSIDER MODIFYING THE
CHARTER CAP. THIS WILL PROVIDE NEEDED FLEXIBILITY TO ADDRESS THE STRUCTURAL
ISSUES THAT THE CITY WILL FACE . THE CITY IS PROPOSING THAT THE CAP BE MODIFIED TO
THE GREATER OF 8% OR INFLATION. (THE CHARTER COMMISSION HAD ORIGINALLY
PROPOSED 8% IN 2006 BUT WAS LOWERED TO 5% TO GET A UNANIMOUS VOTE FROM THE
CITY COUNCIL)
SECTION 7.02 SUBDIVISION 1. THE CITY'S ANNUAL RESOLUTION TO LEVY AD VALOREM TAXES (RAISING MONEY AGAINST REAL AND
PERSONAL PROPERTY) SHALL NOT EXCEED THE LESSER OF THE FOLLOWING FORMULAS; EITHER THE PRIOR YEAR TAX LEVY DOLLAR AMOUNT
INCREASED BY A MAXIMUM OF 5%, OR CPI (CONSUMER PRICE INDEX) PLUS 2%. THE CPI SHALL BE THE 12 MONTH AVERAGE OF THE
MOST RECENTLY PUBLISHED DATA FOR ALL URBAN CONSUMERS IN THE MINNEAPOLIS, ST. PAUL METROPOLITAN AREA, AS DEFINED BY THE
U.S. DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS.