12-02-2020 Workshop Packet - Laserfiche WebLink

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Recommended Changes (Additions and Reductions) to the Preliminary Budget: Since the preliminary budget was adopted, staff has continued to identify changes to the budget and levy impacts of these changes as final estimates were provided. One example of this is our 2021 health insurance premiums. When the final health insurance premiums were allocated, there was a slight increase to the General Fund of $1,470. In addition, staff has decided to switch from Unum Insurance to Ochs Insurance in order to realize premium reductions for life insurance, short term disability, and long-term disability for both the City and the employees. While the preliminary budget included a 10% reduction in the MSA State Aid Maintenance, the reduction is anticipated to be 15% or $6,400. It is proposed to reduce the budget revenue and increase the levy by this amount. When cable production services were transitioned from city staff to CTV North Suburbs, the Parks & Recreation/Community Services Manager has been responsible for some of the duties that had been performed by the previous city staff funded with the Cable Fund. Now that the budget implications for the transition are known, there are sufficient funds in the Cable Fund to allocate a percentage of the Parks & Recreation/Community Services Manager position duties to the Cable Fund. Staff is recommending that we allocate $6,100 (5%) to the Cable Fund. The final loan payment for the Fleur Royale improvements (Fund 463) was paid in 2020. The HIA was paid out any remaining funds in 2013, and the remaining funds are City funds. Due to timing of interest payments received in the fund for special assessments and interest paid out on the loan, there is cash remaining in the fund. It is proposed to transfer $19,000 from this fund to the General Fund in order to lower the final levy. General Fund Budget Changes Amount Increase health insurance, life insurance and short-term disability changes $1,290 Decrease Municipal Street Aid Maintenance Revenue 6,400 Allocate 5% of Parks & Recreation/Community Services Manager to Cable Fund (6,100) Transfer from Debt Service HIA Fund (463) (19,000) Total Changes ($17,410) Based on these recommended budget reductions, the City’s tax rate will decrease to 23.928. This represents a decrease of 7.16% from the 2020 tax rate. According to preliminary information from the County, this will move Little Canada into the third or fourth lowest tax rate in Ramsey County. The median home in Little Canada as calculated by Ramsey County increased 5.5% in value from $277,800 for property taxes payable in 2020 to $293,000 for property taxes payable in 2021. Based on preliminary taxable valuation amounts from the County, the impact on this median value home in Little Canada will actually see a reduction of the city portion of property taxes for 2021.