CCP 08-11-2009 - Laserfiche WebLink

Home Browse Search

Of Report Number 11rWBRKAJT0N Agenda Section the c.•fly that works for you Council Meeting Date REQUEST FOR COUNCIL CONSIDERATION 09-193 VI -6 August 11, 2009 ITEM DESCRIPTION: Resolution Amending the 2009 Budgets as a Result of the Unallotment of LGA and MVHC Revenues from the State of Minnesota DEPARTMENT HEAD'S APPROVAL: CITY MANAGER'S APPROVAL: No comments to supplement this Recommendation: Comments attached To waive the reading and adopt the Resolution Amending the 2009 Budgets as a Result of the Unallotment of LGA and MVHC Revenues from the State of Minnesota. Legislative History: The final 2009 Budgets were approved in December, 2008, as required by the State. The final 2009 Budgets included $152,339 for Local Government Aid (LGA) revenues from the State as certified by the State on July 31, 2008. Taxpayers receive a credit or reduction of their property taxes from the State in the form of the Market Value Homestead Credit (MVHC). The City realizes a reduced amount from their City-wide tax levy as a result of the MVHC. The City receives the same amount as the total City's taxpayers' MVHC credits from the State, for 2009 this amount was to be $261,385, bringing the City back to "whole". The LGA for 2010 was projected to be $65,619 and the MVHC was projected to be $291,563. The Governor unallotted the 2009 payments to the City from the State's budget in the amounts of $152,339 for LGA and $97,851 for MVHC for a total of $250,190 and a total of $357,153 for 2010. The Minnesota Department of Revenue notified the City of these revenues cuts in July, 2009. Early in 2009, the City was aware of these potential revenue reductions and that there was a high probability they would be implemented (unallotted). The City prepared and implemented various alternative solutions to deal with the State revenue unallotments. Financial Impact: The total State Aid revenue cuts for 2009 and 2010, respectively, are $250,190 and $357,153. The total 2009 General Fund Budget amendment is in excess of the State Aid revenue cuts by $112,400. Explanation: The proposed solution for the 2009 and 2010 State Aid revenue cuts is a two year approach. The solutions for 2010 have been implemented already in 2009. The excess from 2009 will be carried over to 2010 as part of the two year solution. The detailed list of the budget amendments, as prepared by the Assistant to the City Manager, has a ady been sharedwith the City Council. Dan Maiers Finance Director 1:\COUNCIL\RF.PORTs\2009\FinanceWmend 2009 Bodgcts for Unallotments.doe