07-13-2016 Workshop Packet - Laserfiche WebLink

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(4) The City is in a strong financial position. Because of its strong mixed use tax base and conservative fiscal policies, the City continued in 2015 to have a tax capacity rate that is 8th lowest out of 19 municipal taxing jurisdictions in the county. The strength of the City’s financial condition is also reflected in its bond rating of Aa+ from Standard & Poors that was achieved in 2014. LONG-TERM FINANCIAL PLANNING The Metropolitan Council requires all cities in the seven-county metropolitan area to have a Comprehensive Plan. The Metropolitan Council and state statutes require cities to update their plans every 10 years. The Little Canada Comprehensive Plan serves as a guide for orderly and economic private and public improvement. The scope of the plan is intended to include almost every factor that influences investments or improvements in the City. The City of Little Canada’s most recent Comprehensive Plan was approved by the City Council in 2010. The City has long utilized Capital Improvement Planning (CIP) for facilities, equipment, and infrastructure to enable us to plan and fund needed capital expenditures. Typically, this is a five-year program that is updated and approved annually. It should be noted that staff does program expenditures beyond the five-year period to help ensure we do not overlook significant needs looming beyond the five-year period. Excess General Fund balances, balances available after meeting the General Fund, Fund Balance Policy, are annually allocated to the General Capital Improvement Fund. The City also levies a substantial amount for it Infrastructure Fund in addition to pledging electric franchise fee revenues to this fund. By funding a large portion of depreciation from our Water and Sewer funds, we have also provided a stable source of revenue to address infrastructure needs in these areas. DEVELOPMENT ACTIVITY Residential and commercial/industrial new construction increased during 2015 with 594 permits issued with a total valuation of $16,367,102 as compared to 259 permits with a total value $11,128,736 in 2014 (a 47% increase). This increase is attributed to three new commercial projects totaling $2,440,000. The City also issued 13 permits during 2015 for new single-family home construction valued at $4,289,664. Finally, the City issued 575 permits valued at $9,615,138 for additions/alterations led by a dramatic surge in residential remodeling associated with an improved economy and also related to re-roofing work caused by a May hail storm. The City expects construction activity for 2016 to be very good given the 120 Unit Senior Assisted Living project valued at $13.5 million that will commence. We also expect the construction of a new school (Capitol View) valued around $4.5 million. Finally, the City should have a few new homes constructed associated with Pine Tree Pond and Moore’s Whispering Pines developments. The City continues to review strategies regarding community development looking at how to best utilize sites in the City that would be candidates for new development and redevelopment projects. The City is also evaluating the creation of a housing rehabilitation program to help maintain housing stock.