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