11.02 - 2010 Unallotments - Laserfiche WebLink

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City of Pequot Lakes= MEMORANDUM To: Pequot Lakes City Council From: Nancy Malecha, Finance Administrator Date: May 19, 2010 Subject: Local Government Aid and Market Value Homestead Credit Unallotments & Supplemental Cuts Recently, we were informed that the City of Pequot Lakes will lose $1.52,626 in local government aid and market value homestead credit unallotments and supplemental cuts. The LGA unallotment is $81,517 and the MVHC unallotment and supplemental cut is $71,109. In 2010, we did not budget for any LGA revenue; however, we did not anticipate losing as much MVHC as has been determined. At the end of 2009, the adjusted General Fund balance was $722,172. If I subtract the $71,109 in MVHC unallotment /supplemental cut and an average of $20,000 in revenue loss from levy settlements, the 2010 General Fund beginning balance is $631,063. The City will be at 38% fund designation. (In 2007 and 2008, the City was at 37% fund designation.) Our goal is to continue to increase and work towards a 50% fund designation. I have informed all department heads of the 2010 unallotments and supplemental cuts, and I have asked them to be cautious with their 2010 expenditures. I would also like to ask the City Council to be cautious as well. Thank you.