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<br />Contributing Factors <br />• City Council directed staff to lower the “property tax safe margin” from 2.5% additional levy to <br />1% in anticipation of a 99% collection rate. Per the City’s Financial Policy, the total sum <br />appropriated for the General Fund shall be less than the total revenue by a safe margin. It is the <br />policy of the City that this safe margin will allow for property tax collections of 97.5% in any <br />given year”, however at its discretion, City Council can adjust the safe margin. This decision <br />was made based on historical collection rates for the last ten years. The average collection rate <br />for the past ten years is 99.01% (see table below). <br />• In November, the League of MN Cities Insurance Trust (LMCIT) announced a 6.5% reduction <br />in liability insurance rates for 2025. While the exact amount is not known, the City of Little <br />Canada’s liability insurance and worker’s compensation premiums are anticipated to go down <br />and the budget was decreased by $1,961 to match the prior year’s budget. <br />• Contracted services in the Administration Department were reduced by $1,380 due to one vendor <br />offering 25% off if the amount is prepaid. The city decided to take advantage of this opportunity. <br />• A payroll adjustment based on one employee's decision to opt out of the City’s health insurance <br />resulted in a $4,180 payroll reduction. <br /> <br />97.91% <br />98.58% <br />97.08%97.04% <br />96.55% <br />97.05% <br />97.54%97.88%97.73% <br />98.52%98.85% <br />98.71% <br />99.47% <br />98.44% <br />98.61%98.77%98.89%99.22% <br />99.52% <br />99.59% <br />95.00% <br />95.50% <br />96.00% <br />96.50% <br />97.00% <br />97.50% <br />98.00% <br />98.50% <br />99.00% <br />99.50% <br />100.00% <br />2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 <br />Historical Property Tax Collection Rate <br /> <br /> <br /> <br />2025 Proposed Final Levy 7.84% <br /> <br />Fund 2024 Certified Levy 2025 Levy $ Change % Change <br />General Fund - 101 $4,150,784 $4,469,216 $318,432 7.67% <br />General Capital Fund - 400 100,000 130,000 30,000 30.00% <br />Fire Equipment Fund - 457 160,000 130,000 (30,000)-18.75% <br />Infrastructure Fund - 450 160,000 200,000 40,000 25.00% <br />Total $4,570,784 $4,929,216 $358,432 7.84% <br />2025 Final Gross Levy Compared with 2024 <br /> <br /> <br />