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TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator Brenda Malinowski, Finance Director DATE: August 31, 2020 RE: 2021 City Administrator Recommended Budget The annual budget process is guided by policies, ordinances, and the Strategic Plan which have been adopted by the City Council. The Little Canada City Council conducted a Strategic Planning process in 2019 which established a practical vision for the community and identified clear steps the City will take to achieve that vision. Program and budgetary requests from the leadership team are evaluated and prioritized and appropriations are included in the preliminary budget. The City Administrator incorporates feedback and direction from the City Council as part of the budget preparation process and considers the financial impacts of each program request. 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 2021 and beyond. The following descriptions and background information will serve to highlight the 2021 City Administrator Recommended Budget. Due to the COVID-19 pandemic, direction to the departments was to prepare a near zero budget increase for commodities and contractual services. The Gross Property Tax Levy is proposed to increase by 2.68% with this Budget. Outside of this budget proposal are items classified as Budget Additions. These are items for new initiatives or services. If Council would like to move forward with these Budget Additions, these items will need to be added to the property tax levy or identify another revenue source. 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 to December 31. Minnesota Statutes require the preliminary budget and the proposed tax levy be approved by the City Council before September 30th each year. This proposed levy must be certified to the Ramsey County Auditor by September 30th. The preliminary tax levy may be decreased before final adoption in December, but it may not be increased. State law also requires that the City must announce by September 30th, the time and place of a future meeting at which the budget and levy will be discussed and public input allowed, before DRAFT DOCUMENT -9/3/2020 1