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Budget MessageCity of Golden Valley, Minnesota 2017 - 2018 Adopted Biennial Budget Adopted December 6, 2016 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 John Crelly, Fire Chief Chantell Knauss, Assistant City Manager Marc Nevinski, Physical Development Director Jason Sturgis, Police Chief Sue Virnig, Finance Director Cheryl Weiler, Communications Manager city of golden!'- Organization Chart valvalley 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 Finance Park&Recreation Physical Police FireDevelopment Accounting Golf Maintenance Engineering Recycling Computer Services Golf Operations Inspections Elections Recreation Planning General Services Maintenance Motor Vehicle Licensing Park Street Utilities Vehicle Maintenance Maintenance Maintenance Maintenance Building ForestryOperations Date: December 31, 2016 To:Mayor and Council From: Tim Cruikshank, City Manager Re: 2017 -2018 Adopted Biennial Budget On December 6, 2016, the Golden Valley City Council adopted the biennial 2017-2018 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 approved by the City Council. The second year's budget was approved in concept and will be reviewed in detail in 2017. 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 2017 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, and 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 $10,688,064 as of December 31, 2017. This level will be adequate to finance the City's cash flow and contingency needs and is equal to approximately 58.5 percent of adopted expenditures. The concept budget for 2018 will need additional property tax revenue for it to be balanced and will be discussed with the upcoming biennial budget for 2018-2019. Continued work to finish the Pavement Management Program will require additional debt levies for payment of future bonds. In 2017, the replacement of the Community Center was financed with a lease revenue bond from the Housing and Redevelopment Authority. Discussion of financing future needs of assets and infrastructure were held. 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 2017, 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