2010-12-08 CC Packet - Laserfiche WebLink

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Fund Balance General Fund: The City of Centerville has historically maintained a healthy fund balance, which contributes positively to the city's bond rating and mitigates the potential for needing short term borrowing. Council has a targeted fund balance reserve of 40 to 50% of current expenditures or a target befinreen ($821,880 to $1,027,350). The below represents the last three years of historic general fund balance and the next two years projected general fund balances based on budgeted data. Please note that the City is projecting a fund balance of $1,103,670 at the end of 2011, which is 54% of 2011 budgeted expenditures. 2007 $1,435,164 2008 $1,157,5'16 2009 $1,231,325 2010 $1,103, 670 2011 $1,103,670 Tax Rate / Tax Capacity The general tax rate has been relatively stable over the last three years—with 2007, 2008, and 2009 having city tax rates of 45.74%, 45.81 %, and 46.25%, respectively. Given overall ' market valuations in the City have fallen by roughly 7% (in tax capacity terms) the tax �ate rose to ' 54.35% in 2010. Market valuations again fell another 7% (in tax capacity terms) for 2011 so the I overall tax rate is projected to rise again to 58.63% in 2011. That being said, the tax rate is only one of the two variables one must consider before evaluating the true effect on their respective property taxes—the other is the 2011 tax capacity. Cities in Minnesota levy actual dollar amounts and the tax rate is merely the formula for allocating the share to each parcel. For a graphical I representation of historic tax rates see appendix E. Acknowledaments I would like to acknowledge and thank Mayor Capra, Council Member Love, Council Member Paar, Council Member Fehrenbacher, Council Member Broussard-Vickers, City Administrator Dallas Larson and all City staff for their assistance in completing this budget. With that, I present to you the 2011 proposed budget. Respectfully Submitted, Mike Jeziorski Finance Director