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<br />Additional funds or expenditure reductions will be needed in the future for both the General Capital <br />Improvements Fund and the Fire Capital Fund due to declining fund balances in those funds. <br />Additional funds may be secured from grants, donations, or intergovernmental revenues. <br />In addition, property taxes are a possible funding source. Future TIF district decertifications are <br />estimated to occur at the end of 2024 (Bix) and 2025 (Abbott) that will present an opportunity to <br />increase the fire equipment levy or to implement a levy for the General Capital Improvement Fund. <br />Early estimates indicate that there will be an opportunity to increase the levy by $60,000 without <br />increasing the property tax rate when these two TIF districts are decertified. Currently, Little <br />Canada has the fourth lowest city tax rate in Ramsey County. <br /> <br />In addition, there are two funding sources that have not been included in the 2022-2031 CIP. There <br />is approximately $572,000 in the Owasso/Woodlyn Fund and approximately $500,000 in <br />unallocated ARPA funds. <br />Another possible funding solution is the issuing of bonds for the facility improvements identified <br />in the next three years for the City Center and Fire Station. These improvements total <br />approximately $1.7 million. Based on current interest rates and the City of Little Canada’s AA+ <br />credit rating, 10-year bonds would require an approximate $195,000 debt levy per year (all- <br />inclusive interest rate of 2.07%). 15-year bonds would require an approximate $140,000 debt levy <br />per year (all-inclusive interest rate cost of 2.18%). An early refunding of our 2014 bonds for the <br />public works facility may also be worth considering. Staff will work closely with representatives <br />from Ehlers if the City Council is interested in considering a future bond issuance. <br /> <br />STAFF RECOMMENDATION: <br />Approve the 2022-2031 Capital Improvement Plan.