8.f)1) 2009 Budget Meeting Date: 4/21/2009
Agenda Item: �-
� , � /
- - �
City Counc�i Agenda Report
City of Scandia
14727 209`h St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Consider scheduling a City Council work session to discuss possible
reductions in the 2009 city budget.
Deadline/Timeline: N/A
Background: • In February, I reported on the Governor's budget proposal, and
how the proposed cuts to cities would likely eliminate Scandia's
entire MVHC (Market Value Homestead Credit) reimbursement
for 2009. In 2008, the City was to be reimbursed a total of
$47,379 in MVHC (before the Governor's December
"unallotments.") For 2009,the potential impact on Scandia was
estimated to be somewhere between $47,379 and the maximum
$93,975 (5.05%of revenue base.)
• The recent House budget proposal also includes LGA (Local
Governmerit Aid) and MVHC cuts to cities. Overall, the House
would cut cities less than proposed by the governor. However,
based on the formula in the House bill, (HF2020) Scandia would
still lose 100%of MVHC in 2009.
• The League of Cities has published some data comparing the
Governor's proposal with the House proposal. The report showed
an estimated 2009 MVHC loss to Scandia of$63,679.
• While these are still proposals, it is probably prudent for Scandia
to assume that the loss of MVHC will be in the ballpark of the
House Research estimate and to plan accordingly.
Recommendation: Some potential dates for a Council work session are: Monday, April
27; Tuesday, Apri128; Tuesday, May 5 (prior to the 7:00 p.m.
meeting); Wednesday, May 6; or, Thursday, May 7.
Attachments/ • None
Materials provided:
Contact(s):
Prepared by: Anne Hurlburt, Administrator
(2009 budget work session)
Page 1 of 1
04/16/09