12-15-2021 Council Packet - Laserfiche WebLink

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Due to the large difference in costs per capita, it is also proposed to continue to discuss changes to the current funding formula with the contract cities, in order to be more equitable and sustainable for all the contract cities. Other large changes in contractual services include an increase for crack-filling ($7,500). Due to a large crack-filling project in 2020, the program was reduced in 2021 due to a decreased need. These dollars will be needed in 2022 in order to address the needs in the city. In addition, travel/training and conferences ($7,700) were increased for the League of Minnesota Elected Officials Conference that will be held in Duluth in 2022, education reimbursement expenses for employees, and two national conferences. 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. It proposed to include $35,000 in the Economic Development Authority budget for a housing study, trade analysis study, and the RCP program. It is proposed to fund 6 hours per week for the Recreation Coordinator position from Parks & Recreation budget to recognize the time spent by this position in generating recreation program revenue. 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 ($3,100,000 outstanding as of 12/31/2021) one note issue ($25,196 outstanding as of 12/31/2021), and one interfund loan (approximately $385,000 outstanding as of 06/30/2021) reflected in its Debt Service Funds. There are sufficient funds for these debt service payments in 2022 and in the future without the use of levy dollars. 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 2022-2031 Capital Improvement Plan (CIP) was approved by Council in November. A Facility Condition Needs Analysis, a 15-Year Pavement Management Plan, and the Pioneer Park Master Plan were prepared in 2021 and are now incorporated in the CIP. In addition, emerald ash borer expenses are now included in the CIP. The 2022 Projects from the 2022-2031 CIP are included in the 2022 Operating Budget. Enterprise Funds The City of Little Canada currently has two enterprise funds (Water Fund & Sewer Fund). A utility rate study was prepared in 2020. The Study concluded that 3%-4% rate increases will be necessary in the future to fund current operations and capital needs in the funds. Based on recent and ongoing needs for storm water improvements, it is proposed to continue moving forward with the establishment of a Storm Sewer Fund. Funds for the establishment of this fund are included in the 2022 Operating Budget. 9