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<br /> Infrastructure Street Fund 450 levy increase. <br /> <br /> <br />Significant Budget Items in the 2025 Budget and Levy: <br /> <br />1. Police Services Ramsey County Contract: The City of Little Canada’s total share of the RCSO <br />contract decreased from 17.68% in 2024 to 17.12% in 2025. Despite the minimal allocation <br />decrease for 2025, the City of Little Canada’s portion of the contract cities budget is increasing <br />by a net of 7.07% or $133,059 when considering the net contract (expenditures less revenues). <br />The 7.07% increase follows an all-time high increase of 10.34% in 2024. The RCSO contract <br />increase is expected to have an estimated 3% gross levy impact on the City’s 2025 budget. <br />Approximately $45,000 equals to a 1% gross levy increase for the City of Little Canada <br /> <br />Police Contract Historical Data <br />2021 2022 2023 2024 2025 <br />Expenditures 1,680,892.15 1,697,945.24 1,788,199.00 1,969,208.97 2,101,767.00 <br />Revenues 90,984.23 83,763.51 81,935.00 86,558.00 86,057.00 <br />Net 1,589,907.92 1,614,181.73 1,706,264.00 1,882,650.97 2,015,710.00 <br />$ Change 76,431.00$ 24,273.81$ 92,082.27$ 176,386.97$ 133,059.03$ <br />% Change 5.05%1.53%5.70%10.34%7.07% <br /> <br /> <br />2. Personnel Services: The net increase for all other staffing needs in the City of Little Canada <br />will have a $109,465 impact on the levy or 6.24% increase from 2024 budget. This includes a <br />cost-of-living (COLA) adjustment of 3.2% and annual step increases of 3.25% for all eligible <br />city employees. For 2025 there are five employees that are not eligible for a step increase. <br /> <br />How COLA is calculated <br />For the past five years, a predetermined formula was used to calculate a preliminary COLA: <br /> <br />a) 75% weighting of COLA’s average in survey of comparable Cities. The average noted <br />was 3.33% <br />b) 25% weighting of Consumer Price Index (CPI) for the MSP/Bloomington trade area <br />from May 2023 to May 2024 (Increase of 2.6%) <br /> <br />3. An additional 2.5% levy per City policy: The budget includes $113,642 in addition to the <br />budget needed to operate the City. Per the City’s Financial Policy, “the total sum appropriated <br />for the General Fund shall be less than the total revenue by a safe margin”. It is the policy of <br />the City that this “safe margin” will allow for property tax collections of 97.5% in any given <br />year”, however at its discretion City Council can adjust the safe margin. In 2024 City Council <br />used only a 1.5% additional levy rather than 2.5%. A decrease of 1% in policy will decrease the <br />levy by $46,149.