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Budget Message City of Golden Valley, Minnesota 2016 - 2017 Adopted Biennial Budget Adopted December 1 , 2015 City officials Mayor Shep Harris Council Members (at-large) Joanie Clausen Larry Fonnest Steve Schmidgall Andy Snope Management Team Tim Cruikshank, City Manager Rick Birno, Director of Parks and Recreation Stacy Carlson, Police Chief John Crelly, Fire Chief Chantell Knauss, Assistant City Manager Marc Nevinski, Physical Development Director Sue Virnig, Finance Director Cheryl Weiler, Communications Manager 6 =" Organization ChartI C, Citizens of Golden Valley City Council/ HRA Board of Zoning Civil Service Appeals Commission Environmental Human Rights Commission Commission Human Services Open Space& Fund Recreation Commission Planning Teen Committee Commission City Manager FinancePhysical Park&Recreation Development Police Fire Accounting Golf Maintenance Engineering Computer Services Golf Operations Inspections Elections&Voter Recreation Planning Registration General Services Maintenance MotorVehicle Licensing Park Street Utilities Vehicle Maintenance Maintenance Maintenance Maintenance Building Forestry Recycling Operations Date: December 31, 2015 To: Mayor and Council From: Tim Cruikshank, City Manager Re: 2016 -2017 Adopted Biennial Budget On December 1, 2015, the Golden Valley City Council approved the proposed biennial 2016-2017 Budget. During the first year of the two-year process, both years' budgets are developed and reviewed. Only the first year's budget was adopted and the levy was approved by the City Council. The second year's budget was approved in concept and will be reviewed in detail in 2016. The two-year budget gives staff and City Council a future picture and the tool to examine impacts from the State Legislature and economic climate change from property values. The Budget represents the collective effort of City elected officials and staff, combined with input from many public meetings, for decisions on providing quality services in Golden Valley. The City remains on sound financial footing and continues to receive a bond rating of AA1 from Moody's Investors Services. The City takes pride in the services it offers its taxpayers. Levy limits were not in place for the 2016 budget process. This allowed the City to increase the transfer monies from the General Fund to fund the overlay program that would help maintain the street system in a long-term effective manner as presented with the Pavement Management Program, Additional monies will be transferred to the building and park improvement funds to maintain the city's buildings and park infrastructure. This Budget is a balanced budget and uses no source of fund balance (except for cash flow purposes, until the tax payments are received in July and December). The General Fund fund balance is projected to be $9,787,439 as of December 31, 2016. This level will be adequate to finance the City's cash flow and contingency needs and is equal to approximately 55% of adopted expenditures. The concept budget for 2017 will need additional property tax revenue in order for it to be balanced and will be discussed with the upcoming biennial budget for 2017-2018. Continued work to finish the Pavement Management Program will require additional debt levies for payment of future bonds. Replacement of the Community Center will be discussed along with future needs of assets and infrastructure. Maintenance of infrastructure and reinvesting in the City is a high priority of the Council along with the impact on the taxpayer. As we look forward to 2016, there are still many challenges ahead. I look forward to working with you in the coming year to execute this adopted budget. Sincerely, Tim Cruikshank City Manager 1