12-16-2020 Council Packet - Laserfiche WebLink

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In order to have lowest possible levy increase, contractual services were reviewed in detail. The decreases in contractual services are as follows: • LCFD request for contract decrease in 2021 ($13,460) • Reduction in crack-filling ($17,500) • Reduction in attorney services contract to 4-year average ($6,000) • Reduction of fire marshal contract ($11,000) • Restructure of recreation services contract. Move recreation services contract to Special Recreation Revenue Fund ($30,100) The Little Canada Fire Department has requested a decrease to their 2021 contract of 3.5% ($13,460). This was largely due to savings in training costs that were budgeted and included in the contract for 2020. With the completion of several recent street reconstruction projects, staff is recommending that we conduct crack-filling in alternating years, enabling us to reduce the budget for crack-filling by 50%. 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. This budget will move the recreation services contract to the Parks & Recreation Special Revenue Fund from the General Fund. Furthermore, the transfers out from the Parks & Recreation Special Revenue Fund to the General Fund has been removed in this budget. 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 2021-2025 Capital Improvement Plan (CIP) was approved by City Council on November 18th. The 2021 projects in the CIP are included in this budget. Enterprise Funds The City of Little Canada currently has two enterprise funds (Water Fund & Sewer Fund). A utility rate study was reviewed with Council in December. Based on this rate study, modest increases in the enterprise funds are included in the 2021 budget. Based on recent and ongoing needs for storm water improvements, it is proposed to establish a Storm Sewer Fund. Funds to establish this Storm Sewer Fund are not included in this budget but staff will continue to move forward with identifying next steps in establishing this fund. 10