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   <br />  <br />  STAFF REPORT  <br /> <br /> <br /> <br />TO: Mayor Keis and Members of the City Council <br /> <br />FROM: Sam Magureanu, Finance Director <br /> <br />DATE: November 30, 2022 <br /> <br />RE: General Capital Fund 400 and Fire Equipment Capital Fund 457 – Financing Update <br /> <br /> <br />INTRODUCTION: <br />At the November 16th Council meeting, during the presentation of the 2023-2032 CIP, it was noted that <br />additional funding will be need for the General Capital Fund 400 and Fire Equipment Capital Fund 457 in <br />order to finance all of the identified projects/assets due to declining fund balances in these funds. <br /> <br />Additional funds may be secured from grants, donations, or intergovernmental revenues. In addition, <br />property taxes are a possible funding source. Future TIF district decertifications are estimated to occur at <br />the end of 2024 possibly 2023 (TIF 7-2 Bix Produce) and 2025 (TIF 5-1 St Jude/Abbott) that will present <br />an opportunity to increase the fire equipment levy or to implement a levy for the General Capital <br />Improvement Fund. Early estimates indicate that there will be an opportunity to increase the levy by <br />$60,000 without increasing the property tax rate when these two TIF districts are decertified. Currently, <br />Little Canada has the third lowest city tax rate in Ramsey County. Another possible funding solution is <br />the issuing of bonds/equipment certificates. <br /> <br />DISCUSSION: <br />General Capital Fund 400 <br /> <br /> <br />As presented at the November 16th meeting the General Capital Fund will be running a negative fund <br />balance of $430,097 beginning with 2026 and will reach a negative fund balance of $640,720 by 2032. <br /> <br /> <br /> <br />