06-10-2020 Council Packet - Laserfiche WebLink

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LOCAL ECONOMY As part of the Minneapolis/St. Paul metropolitan area, the City has experienced a strong and favorable economic environment for a number of years. The metropolitan region has a strong and diversified business base, including companies with headquarters or divisions located within City of Little Canada’s boundaries or in close proximity that include Abbott Laboratories (formerly St. Jude Medical), Slumberland, HOM Furniture, Frattalone Companies, and Q3 / Primoris Services Corporation. These businesses benefit from access to a highly educated work force; access to high technology; available capital and an excellent transportation system including major state highways and federal interstate highways which allows easy mobility in any direction. The location of Little Canada and access to transportation is a very positive factor in making the City an ideal location for commercial/industrial development and redevelopment. BIX Produce relocated to the City of Little Canada in 2019 and became our third largest employer with approximately 425 employees. BIX partners with over 30 local farmers and producers to source quality fruits, vegetables and other products and delivers a wide selection of locally grown products. BIX works closely with local purveyors to ensure that crops are picked at the peak of freshness. The City is located in a region with a varied economic base which has resulted in an unemployment rate that has consistently remained near or below national and state averages. While the national unemployment rate stood at 3.7% at the end of 2019, Minnesota’s unemployment rate was 3.2%, the City has a regional unemployment rate of 3.0% according to the Minnesota Department of Economic Security. The City is in a strong financial position. Because of its strong mixed-use tax base and conservative fiscal policies, the City continued in 2019 to have a tax capacity rate that is 6th 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 & Poor’s 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. 2008 marked the completion of the City’s most recent Comprehensive Plan. A new plan will be approved in 2020. The City has long utilized Capital Improvement Planning (CIP) for facilities, equipment, and infrastructure to enable us to plan and fund needed capital expenditures. This is a five-year program that is updated and approved annually. In 2019, the CIP process was updated in order to receive more input from the Council. Expenditures beyond the five-year period are included in the CIP to help ensure significant needs beyond the five-year period are not missed. The excess General Fund balance (balance available after complying with the General Fund Balance Policy) is annually allocated to the General Capital Improvement Fund (GCIF). 80% of Local Government Aid (LGA) received from the state of Minnesota also goes into the GCIF rather than the General Fund due to the potential volatility of this revenue source. The City also levies a substantial amount for the Infrastructure Fund in addition to pledging electric franchise fee revenues to help fund street and storm water system construction. 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. 5