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<br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br />~~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />Agenda Item 6.B.l <br /> <br />August 23, 2002 <br /> <br />TO: <br /> <br />Joe Lynch, City Administrator <br /> <br />CC: <br /> <br />Aaron Parrish, Community Resources Director <br /> <br />Terrance Post - City Accountant@ <br />Proposed 2003 Budget Baseline (Levy Supported General Fund No. 101) <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br />As a discussion item for the regular City Council meeting of August 26, 2002, the following <br />items pertaining to the proposed 2003 General Fund Budget Baseline are enclosed: <br /> <br />1. <br />2. <br />3. <br /> <br />A "Summary Comparison Spreadsheet" (1998-2003) <br />A Detail General Fund Revenue Comparison (2000-2003) <br />Detail Departmental Expenditures (2000-2003) <br />(Note: Please ignore the "revenue" bottom portion of the expenditure schedules as a <br />linking bug needs to be worked out.) <br /> <br />Commentarv <br />1. Staff is currently forecasting a $36,427 operating deficit in 2002 (i.e., expenditures <br />exceeding revenues) in the General Fund. This level of shortfall primarily coincides with <br />an earlier Council decision to fund a City Hall backup generator out of the General Fund <br />balance. <br /> <br />2. The "Proposed 2003" includes the following key assumptions: <br /> <br />a. Property tax collections will remain at the 97.0% level in 2003. Note the <br />development of a new state aid - Mark Value Residential Credit Aid - in 2002. <br />This aid formerly was distributed to the counties and then passed through to the <br />cities. <br /> <br />b. In light of the State of Minnesota budget problems, certified state aids for LGA, <br />PERA, and Market Value Residential Credit Aid have been reduced by 50% - <br />impact is a $65,955 revenue reduction. <br /> <br />c. <br /> <br />Miscellaneous revenue will see a reduction of investment interest earnings and no <br />sale of equipment revenue as no vehicles are planned to be replaced in 2003. <br />