09-23-2020 Workshop Packet - Laserfiche WebLink

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Special Revenue Funds The City of Little Canada currently operates Special Revenue Funds for its Economic Development Authority, Parks & Recreation, Cable TV, and Recycling & Disposal. It is proposed to move the recreation services contract to the Parks & Recreation Special Revenue Fund from the General Fund. Furthermore, it is proposed to remove the transfers out from Parks & Recreation Special Revenue Fund to the General Fund. Debt Service Funds The City of Little Canada holds a bond rating of AA+ from Standard & Poor’s. The City of Little Canada currently has two outstanding bond issues ($3,380,000 outstanding as of 12/31/2020) two note issues ($44,331 outstanding as of 12/31/2020), and one interfund loan (approximately $709,000 outstanding as of 07/31/2020) reflected in its Debt Service Funds. Capital Project Funds The City of Little Canada has many Capital Project Funds, including the General Capital Improvement Fund and the Infrastructure Capital Improvement Fund. Capital Project Funds are utilized for capital expenditures. The proposed 2021 street projects were discussed at the Council Meeting on August 26th. The revised 2021-2025 capital improvement projects will be reviewed by the Council on September 23rd. Enterprise Funds The City of Little Canada currently has two enterprise funds (Water Fund & Sewer Fund). A utility rate study is currently in progress, and it is anticipated that this study will be reviewed with the Council in October. Based on recent and ongoing needs for storm water improvements, staff is also exploring the possibility of establishing a Storm Sewer Fund. Conclusion Budgeting during a world-wide pandemic is challenging at best. With the many unknowns related to COVID-19, staff made significant efforts to minimize the increase to the 2021 budget. The preliminary proposed levy increase of 2.68% is well below the 15-year average increase of 3.34%. If all of the budget additions (transferring election duties to Ramsey County, zoning code update, and establishing a storm utility fund) are included, the 2021 preliminary levy would increase by 2.2% to 4.88%. Staff will be seeking further input from the City Council on these items at the upcoming City Council workshop. If the City Council would like to see the 2021 levy lower than the proposed 2.68% levy increase, additional cuts will be necessary. Some possible options to consider include deferring the hiring of the Code Enforcement Officer, delaying the increase in hours for the Recreation Coordinator position, delaying step increases, or eliminating the cost of living adjustment (COLA). Ramsey County has announced a zero percent levy increase for 2021. The zero levy was possible through adjustments to department operating budgets ($14.2 million), revenue reductions ($1 million), deferring technological investments ($2 million), and drawing from fund balance ($2.8 million) according the County’s website. DRAFT DOCUMENT -9/3/2020 11