Laserfiche WebLink
AGENDA ITEM – 1D <br /> <br />MEMORANDUM <br /> DATE: August 19, 2019 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: Preliminary General Fund Budget <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br /> <br />Council Should Consider <br />Staff is requesting City Council to review and provide feedback to the attached preliminary General <br />Fund budget for the 2020 fiscal year. <br /> <br />Background <br />Annually, City staff prepares and submits a preliminary budget to the City Council for review and <br />feedback. Attached to this memo is the City’s preliminary General Fund budget for the 2020 fiscal <br />year. Each department provided their respective forecasts for this budget. <br /> <br />The proposed 2020 budget is $5,031,420, an increase of $40,030 or 0.8%. For the purpose of this <br />discussion, there is a 5% ($196,920) tax levy increase reflected in the budget. As presented, the <br />General Fund Budget is underfunded by $159,700, which is less than the budget shortfall projected <br />in the 2019 budget of $186,970. This practice is not sustainable in the long term. A tax levy <br />increase of 9.05% would be needed to balance the budget in 2020. <br /> <br />According to information provided by Ramsey County, the median home value in Arden Hills will <br />increase from $346,900 for 2019 taxes to $372,400 for 2020 taxes, an increase of 7.4%, which is <br />less than the countywide average of 8.3%. The annual impact of different levels of the City levy <br />increase to a median valued home is as follows: <br /> <br />CHANGE CHANGE 2018 2019 2018 2019 CHANGE CHANGE <br />0%$0 $346,900 $372,400 $871 $878 $7 0.8% <br />2%$78,770 $898 $26 3.0% <br />3%$118,150 $907 $36 4.1% <br />4%$157,540 $917 $46 5.2% <br />5%$196,920 $926 $55 6.3% <br />9.05%$356,620 $965 $94 10.8% <br />