08-09-2023 Workshop Packet - Laserfiche WebLink

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GENERAL FUND As the primary operating fund for the City, the General Fund records all revenues and expenditures that are not assigned to another fund and provides the resources to sustain the daily activities for administrative and operating expenses for general government including public safety, public works, recreation, and community development. The General Fund has more diverse revenue sources than other funds, including property taxes, licenses, permits, fines and forfeits, intergovernmental revenue (grants), service charges, and investment interest. The General Fund budget is a comprehensive decision-making document based on current city operations, services, and its policies and goals. The City Council is asked to provide feedback and direction regarding the proposed preliminary budget to ensure that it meets Council goals, maintains core services, and is sensitive to tax impacts for our businesses and local residents. OPERATING LEVY AND TAX RATE The preliminary operating levy for 2024 includes an increase of $296,291 which represents a proposed increase of 7.06% over the adopted 2023 budget. While there are several items in the budget that represent an increase over the 2023 budget, the primary impact can be attributed to personnel services and contracted police services. Additional information on each of these areas is included later in this memo. For your information, one percent (1%) of the General Fund budget is equal to approximately $42,000. PROPOSED BUDGET NEEDS FOR 2024 Communications: The City of Little Canada contracted with DDA Human Resources in 2022 to conduct an Organizational Study, and one of the primary findings by the management consultant was the need for a full-time communications position to perform duties related to communications and project management. As a result of this analysis, a Community Relations Manager position was hired in July of 2023 which will create a budgetary impact in 2024. Police Services: The City of Falcon Heights will be withdrawing from the RCSO contract at the end of 2023, which creates an additional strain on the remaining six contract cities. The City of Little Canada’s total share of the RCSO contract increased from 15.5% in 2023 to 17.68% in 2024. As part of this transition, the RCSO has requested two additional FTE positions to cover the remaining contract cities. In addition, Ramsey County has requested additional administrative fees to cover overhead cost for administering the Ramsey County Sheriff’s Office contracts. Emerald Ash Borer (EAB): The City of Little Canada has been significantly impacted by EAB in recent years, and the current budget of $20,000 per year has proven to be insufficient to keep up with removal of trees in public rights-of-way and staff is recommending $40,000 in 2024. This is in addition to grant funds that have been received for removal and replacement of impacted trees.