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<br /> In the Water Fund, the cost of water was increased due to the rate increase of <br />7.21% that has been adopted by St Paul Regional Water Services. To offset a <br />portion of the increase, water rates were increased 6.5%. <br /> In the Sewer Fund, sewer rates were increased by 6.5% to offset the 17.62% rate <br />increase from the Municipal Wastewater Charge. <br /> <br />Additional Budgeted items: <br /> <br />Public Gathering Space Building - A large portion $100,000 (approximately 2.38% of the levy <br />increase) is currently allocated toward a new public gathering space. A new public gathering space <br />for the residents of Little Canada has been a topic that current and previous City Council have <br />explored for several years. The 2022 Strategic Plan includes a strategic goal of acquiring the <br />property at 2884 Centerville Road as a potential location for this facility, and staff has included <br />$2.5 million as the estimated construction cost for a new community building in the 2024 Capital <br />Improvement Plan. A dedicated source of funding will be needed if we are to continue to make <br />progress toward this potential project. <br /> <br />Based on the estimated project cost of $2.5 million, staff has obtained three debt service scenarios <br />for a future issuance of bonds. The table below represents three different bond terms with a debt <br />service levy as low as $200,114 for a 20-year repayment schedule and as high as $327,977 for a <br />10-year repayment schedule. Please note that total interest paid on the bonds differs based on <br />repayment terms. The longer the City takes to repay the loan, the more total interest will be paid. <br />Even though the $100,000 is not sufficient to fund a possible future debt service payment, it <br />estimated to be approximately 42% of a 15-year debt service levy for a 2.5 Million debt issuance. <br /> <br /> <br />The $100,000 currently included in the 2024 levy can be used to decrease the total project cost. <br />This would ultimately reduce the loan amount which will in turn reduce future annual debt levy <br />service payment and interest payments, as well as reducing the burden of implementing a debt levy <br />service payment all at once. The $100,000 represents a 2.38% levy increase. <br /> <br />