05-26-2021 Council Packet - Laserfiche WebLink

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transportation system including major state highways and federal interstate highways which allows easy mobility in any direction. The location of Little Canada and access to transportation is a very positive factor in making the City an ideal location for commercial/industrial development and redevelopment. BIX Produce relocated to the City of Little Canada in 2019 and is now our fourth largest employer with approximately 330 employees. BIX partners with over 30 local farmers and producers to source quality fruits, vegetables and other products and delivers a wide selection of locally grown products. BIX works closely with local purveyors to ensure that crops are picked at the peak of freshness. The City is located in a region with a varied economic base which has resulted in an unemployment rate that has consistently remained near or below national and state averages. While the national unemployment rate stood at 8.1% at the end of 2020, the City has a regional unemployment rate of 6.5% according to the Minnesota Department of Economic Security. The City is in a strong financial position. Because of its strong mixed-use tax base and conservative fiscal policies, the City continued in 2020 to have a tax capacity rate that is 6th lowest out of 19 municipal taxing jurisdictions in the county. In 2021, the City moved to 4th lowest of the 19 municipalities. The strength of the City’s financial condition is also reflected in its bond rating of Aa+ from Standard & Poor’s that was achieved in 2014. LONG-TERM FINANCIAL PLANNING The Metropolitan Council requires all cities in the seven-county metropolitan area to have a Comprehensive Plan. The Metropolitan Council and state statutes require cities to update their plans every 10 years. The Little Canada Comprehensive Plan serves as a guide for orderly and economic private and public improvement. The scope of the plan is intended to include almost every factor that influences investments or improvements in the City. The City’s most recent Comprehensive Plan was approved in 2020. The City has long utilized Capital Improvement Planning (CIP) for facilities, equipment, and infrastructure to enable us to plan and fund needed capital expenditures. This is a five-year program that is updated and approved annually. Expenditures beyond the five-year period are included in the CIP to help ensure significant needs beyond the five-year period are planned for appropriately. The excess General Fund balance (balance available after complying with the General Fund Balance Policy) is annually allocated to the General Capital Improvement Fund (GCIF). 80% of Local Government Aid (LGA) received from the state of Minnesota also goes into the GCIF rather than the General Fund due to the potential volatility of this revenue source. The City also levies a substantial amount for the Infrastructure Fund in addition to pledging electric franchise fee revenues to help fund street and storm water system construction. By funding a large portion of depreciation from our Water and Sewer funds, we have also provided a stable source of revenue to address infrastructure needs in these areas. DEVELOPMENT ACTIVITY Residential and commercial/industrial new construction decreased in 2020 due to the pandemic and effects on the economy. During 2020, 242 permits were issued with a total valuation of $5,389,464. This compares to 304 permits issued with a total valuation of $31,847,055 in 2019 and 260 permits issued with a total valuation of $16,522,622 in 2018. The City continues to review strategies regarding community development, looking at how to best utilize sites in the City that would be candidates for new development and redevelopment projects. The City is currently updating the zoning code which will foster additional development and redevelopment activities. 5