12-16-2020 Council Packet - Laserfiche WebLink

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Levy Changes since the Preliminary Levy was adopted in September: A Council Workshop was held on December 2nd. At that workshop, the consensus was to make the following recommended changes to the levy: Levy Change Description $3,600,186 Preliminary Levy 1,290 Health, life, and short-term disability changes based on 2021 premiums 6,400 Decrease Municipal Street Aid Maintenance Revenue based on estimates from State (6,100) Allocate 5% of Parks & Recreation/Community Services Manager to Cable Fund to recognize time spent on cable and website services (19,000) Transfer from Debt Service HIA Fund (463) to General Fund for City funds accumulated in HIA Fund. (446) Effects of these items on the 97.5% collection rate in the General Fund $3,582,330 Final Proposed Levy Based on this proposed levy, the City’s tax rate is proposed to decrease 7.16 % from 25.773 to 23.928. The median home in Little Canada, as calculated by Ramsey County, increased 5.5 % in value from $277,800 in 2020 to $293,000 in 2021. Based on tax capacity amounts from the County, the impact on this median value home in Little Canada will realize a decrease in City taxes from $685 in 2020 to $675 in 2021 (decrease of $10 or -1.4%). The largest increases to the 2021 levy are as follows: • Increase in the police service contract $76,430 • Market adjustments, merit step plan increases and changes in health insurance for personnel $28,012 • Increase for transferring election services to County $27,000 • Increase for recreation department changes $13,480 • Increase for translating Le Petit Canadien newsletter in different languages $9,000 • Increase for public works incentive pay plan and city clerk reclassification $7,420 • Increase for storm water repairs $5,000 • Increase for workers compensation and property insurance premiums $4,550 • Increase for Northeast Youth Family Services contribution $1,585 • Decrease in revenues for investment income and rental licenses $40,200 In order to reduce the increases to the levy, savings were identified as follows: • Savings for non-election year $20,350 • Reduction in crack-filling costs $17,500 • Little Canada Fire Department proposal to reduce 2021 contract by 3% or $13,460 • Reduction in Fire Marshal contract $11,000 • Delay hiring of Code Enforcement position until April 1st $8,280 • Savings in city attorney contract $6,000 • Increase transfer in from Cable Fund $6,100 • Include transfer in from HIA Fund $19,000