09-22-2021 Council Packet - Laserfiche WebLink

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Staff has contacted other municipalities in Ramsey County to determine their estimated preliminary levy increase. The estimated average increase for these municipalities is 6.16% to 6.76%, or 5.23% to 5.87% when excluding White Bear Township. This Township had a larger increase, due to the addition of a debt levy for street and other improvements. The levy increases may increase or decrease when the preliminary levies are approved by each municipality. The largest increases to the 2022 levy for the City of Little Canada are as follows: • Increase in the police service contract $59,490 (1.8% of levy increase) • Market adjustments, merit step plan increases and changes in health insurance for personnel $51,250 (1.55% of levy increase) • Increase for public works salary reallocation between streets, parks, water, and sewer to more accurately reflect the duties performed by the public works staff. $16,600 (.50% of levy increase) • Increase fire services contract $16,310 (.49% of levy increase). It should be noted that the 2021 contract had been a reduction of 3% from the 2020 contract. If a lower levy is desired, the levy could be reduced to $3,707,680 (3.5% levy increase) or by $53,730. Budget reductions of $53,730 would need to be made. They can consist of any of the following: • Specific line-item reductions • Negotiated reductions in the Ramsey County Sheriff’s Deputy police budget • Reduction in the levy for the Fire Equipment Fund or Infrastructure Fund • Add Cell tower sale revenue at $72,700 (However, it is proposed that this amount be utilized in the General Capital Improvements Fund (400) for possible LGA reductions in the future) • Utilize existing fund balance • Reduce Council Contingency • Reduce market salary adjustment. For each market salary rate adjustment decrease of .50%, the savings is approximately $5,000 in the General Fund. If the market salary adjustment is reduced to 0%, the savings is $32,500 Based on different levy scenarios, the impact to the median home that increased in value by 3.75% from $293,000 in 2021 to $304,000 in 2022 are as follows: Levy Amount Tax Rate City Property Tax on Median Home Annual $ Increase on Median Home from 2021 $3,761,410 (5% Increase) 24.950 $733 $57 $3,747,810 (4.62% Increase) 24.847 $730 $54 $3,707,680 (3.5% Increase) 24.541 $722 $46