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   <br />  <br />  STAFF REPORT  <br /> <br /> <br /> <br />TO: Mayor Fischer and Members of City Council <br /> <br />FROM: Chris Heineman, City Administrator <br />Sam Magureanu, Finance Director <br /> <br />DATE: August 23, 2023 City Council <br /> <br />RE: Proposed 2024 Budget and Levy not to exceed 10% <br /> <br />REQUESTED ACTION: <br />This is a discussion item only, and no action is required. The Council is asked to provide <br />additional feedback on the revised preliminary levy of 9.90% as presented below. <br /> <br />BACKGROUND: <br />The City Council reviewed the preliminary budget and operating levy for 2024 at the budget <br />workshop held on August 9th, 2023. At the workshop, staff presented a proposed increase to the <br />operating levy of $296,291 which represents an increase of 7.06% over the adopted 2023 budget. <br />The primary impacts for the proposed levy increase can be attributed to contracted police services <br />with the Ramsey County Sheriff’s Office (RCSO) and personnel services as noted below. <br /> Police Services: The City of Falcon Heights will be withdrawing from the RCSO contract <br />at the end of 2023, which creates an additional strain on the remaining six contract cities. <br />The City of Little Canada’s share of the RCSO contract will increase from 15.5% in 2023 <br />to 17.68% in 2024. The City of Little Canada’s portion of the contract is increasing a net <br />of 12.84% or $219,133.47 when considering the net contract (expenditures less revenues). <br />This 12.84% increase for contracted police services is the largest year-over-year increase <br />over the last several years. <br /> Personnel Services: The net increase for all other staffing needs in the City of Little Canada <br />will have a $254,079 impact on the levy. This includes approximately $106,000 for two <br />new positions that were hired in 2023 but not included in this year’s budget. For example, <br />70% of the Community Relations Manager position is allocated to the General Fund which <br />creates a budgetary impact of $89,471 for 2024. In addition, 25% of the Public Works <br />Apprentice position is funded through the General Fund which creates a budgetary impact <br />of $16,700. The net increase in Personnel Services also includes cost-of-living (COLA) <br />adjustments and annual step increases for all other city staff members. <br /> <br />All other budgetary increases for contracted services such as permitting software, audit services, <br />CDL training, communications and newsletter printing are relatively minor and total $56,000.