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Page 1 of 4 <br /> <br />AGENDA ITEM – 1G <br /> <br />MEMORANDUM <br /> DATE: August 15, 2022 <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 /> Council Should Consider <br />Staff is requesting City Council to review and provide feedback to the attached preliminary General <br />Fund budget for the 2023 fiscal year. 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 2023 fiscal <br />year. Each department provided their respective forecasts for this budget. <br /> <br />The proposed 2023 budget is $5,509,580, an increase of $270,070 or 5.2%. For the purpose of this <br />discussion, there is a 5% ($223,630) tax levy increase reflected in the budget, $173,630 for the <br />General Fund and $50,000 for the Public Safety Capital Fund. There is currently no additional tax <br />levy included to fund any of the LJFD staffing models. As presented, the General Fund Budget is <br />underfunded by $161,330, which is more than the budget shortfall projected in the 2022 budget of <br />$140,000 (as noted later in the memo, the City generally budgets a deficit each year but then comes <br />in under budget). This practice is not sustainable in the long term. A tax levy increase of 8.6% <br />would be needed to balance the budget in 2023. The table below shows the amount the General <br />Fund Budget is underfunded at different tax levy increase amounts. <br /> <br />Tax Levy Increase Underfunded Amount <br />3% $250,780 <br />4% $206,050 <br />5% $161,330 <br />8.6% $0 <br /> <br />The preliminary 2023 property value data has not yet been provided by Ramsey County so no <br />projections can be made on our local tax rate. <br /> <br /> <br />