2009-12-09 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 30 to 50% of current expenditures or a target between ($658,000 to $1,096,797). The below represents the last two 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 balanced budget for 2010, leaving the City with a fund balance of $1,122,274 at the end of 2010, which is 51% of 2010 budgeted expenditures. 2007 $1,435,164 2008 $1,157,516 2009 $1,122,274 2010 $1,122,274 Tax Rate / Tax Capacity The general tax rate has been relatively stable over the last three years —with 2007, 2008, 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 overall tax rate is projected to rise sharply —the general tax rate is expected to rise to 55.30% in 2010. 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 2010 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 representation of historic tax rates and a real world example of its effects on the City portion of property tax see appendix E. Acknowledgments 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 2010 Final budget. Respectfully Submitted, Mike Jeziorski Finance Director 30