12-18-2019 Workshop & Council Packets

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TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator Brenda Malinowski, Finance Director DATE: December 18, 2019 RE: 2020 Annual Operating Budget As the last step in the annual budget process for 2020, the City is required to adopt the final property tax levy and certify the amount to Ramsey County on or before December 28th, 2019. A preliminary Gross Property Tax Levy increase of 4.99% was adopted on September 19th. The preliminary tax levy may be decreased before final adoption in December, but it may not be increased. Since the preliminary tax levy was adopted, staff has worked on several cost saving measures and is recommending a final Gross Property Tax Levy increase of 4.19%. The annual budget is more than a financial document, as it reflects the City of Little Canada’s plans, policies, procedures, and objectives regarding services to be provided in the fiscal year 2020 and beyond. The following budget process, strategic initiatives, and background information will serve to highlight the 2020 Annual Operating Budget. Budget process and timeline According to the municipal code, the City Administrator shall prepare an annual fiscal budget and capital improvement plan for the City Council. The budget follows the calendar year (January 1 - December 31). Minnesota Statutes require that the preliminary budget and the proposed tax levy be approved by the City Council and certified to the Ramsey County Auditor by September 30th each year. Minnesota Statutes also require that the City Council, by resolution, must approve the final property tax levy and certify a copy of the resolution to the Ramsey County Auditor on or before December 28th of each year. Truth-in-Taxation (TNT) legislation requires local municipalities to inform the public about local taxes. For cities over 500 in population, the law requires cities to allow public comment before adopting a final budget and certifying a final levy. All cities must adopt and certify a preliminary levy on or before September 30th of each year. By that same date, the City must provide the County with the time and place of a future meeting at which the budget and levy will be discussed and public input allowed, prior to the final budget adoption and levy determination. The City must also provide a phone number and address where comments and questions about the City’s budget may be directed. This public input meeting must occur after November 24th and must start at or after 6:00 pm. The City of Little Canada will conduct this meeting at 7:30 pm on December 18th, 2019. 1