Budget Message City of Golden Valley, Minnesota
2018 - 2019 Adopted Biennial Budget
Adopted December 5, 2017
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
Marc Nevinski, Physical Development Director
Kirsten Santelices, Human Resources Director
Jason Sturgis, Police Chief
Sue Virnig, Finance Director
Cheryl Weiler, Communications Manager
Board of Zoning
Appeals
Environmental
Commission
Civil Service
Commission
Human Rights
Commission
Planning
Commission
Human Services
Fund Open Space &
Recreation Commission
Police FirePhysical
DevelopmentPark & RecreationFinance
Recycling
Street & Vehicle
Maintenance
Elections
General Services
Golf Operations
Utilities
Maintenance
Park
Maintenance
Accounting Golf Maintenance
Inspections
Engineering
Recreation
Computer Services
Motor Vehicle
Licensing
Planning
Maintenance
Building
Operations Forestry
Organization Chart
City Council/
HRA
Citizens of
Golden Valley
City Manager
Date: December 31, 2017
To: Mayor and Council
From: Tim Cruikshank, City Manager
Re: 2018 -2019 Adopted Biennial Budget
On December 5, 2017, the Golden Valley City Council adopted the biennial 2018-2019 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 2018. 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 2018 budget process. This allowed the City to increase the transfer
monies from the General Fund to fund the existing bonded debt payments for the City's Vehicle and
Equipment purchases. In the past, equipment certificates were sold to finance the purchases. The goal
is to reduce the debt burden on the city and build balances to pay for equipment and vehicle purchases
with reserves and positive performance from the General Fund. The General Fund also transfers
monies to 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, equipment,
and park improvement funds to maintain the City's buildings, parks, and future equipment and vehicle
purchases.
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 $11,152,669 as of December 31, 2018. This level will be adequate to finance the City's cash flow
and contingency needs and is equal to approximately 54.43 percent of adopted expenditures. The
concept budget for 2019 will need additional property tax revenue for it to be balanced and will be
discussed with the upcoming biennial budget for 2019-2020.
Continued work to finish the Pavement Management Program (PMP)will require additional debt levies
for payment of future bonds. Many meetings were held to plan and present the future Infrastructure
Renewal Program (IRP) that will begin once the PMP is completed. Infrastructure improvements are
costly, and a sound financial plan is required to use the IRP as a tool for communication to citizens and
businesses. Reinvesting in the City is a high priority of the Council, along with the impact on the
taxpayer.
As we look forward to 2018, 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
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