08-20-18-WS - Laserfiche WebLink

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AGENDA ITEM – 1F MEMORANDUM DATE: August 20, 2018 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: Preliminary General Fund Budget Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Staff is requesting City Council to review and provide feedback to the attached preliminary General Fund budget for the 2019 fiscal year. Background Annually, City staff prepares and submits a preliminary budget to the City Council for review and feedback. Attached to this memo is the City’s preliminary General Fund budget for the 2019 fiscal year. Each department provided their respective forecasts for this budget. The proposed 2019 budget is $5,519,250, an increase of $342,494 or 6.6%. For the purpose of this discussion, there is no tax levy increase reflected in the budget. As presented, the General Fund Budget is underfunded by $368,130, with $237,225 of the shortfall being carried over from the 2018 budget and $130,905 from current year projections. This practice is not sustainable in the long term. A tax levy increase of 9.72% would be needed to balance the budget in 2019. According to information provided by Ramsey County, the median home value in Arden Hills will increase from $333,800 for 2018 taxes to $346,900 for 2019 taxes, an increase of 3.9%, which is less than the countywide average of 7.4%. The annual impact of different levels of the City levy increase to a median valued home is as follows: % LEVY $ LEVY $ % CHANGE CHANGE 2018 2019 2018 2019 CHANGE CHANGE 0% $0 $333,800 $346,900 $834 $831 ($3) ‐0.4% 1% $37,868 $840 $6 0.7% 2% $75,738 $849 $15 1.8% 3% $113,608 $858 $24 2.9% 4% $151,478 $867 $33 3.9% 9.72% $368,088 $919 $85 10.1% HOME VALUE CITY TAX