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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Fischer and Members of City Council <br /> <br />FROM: Bryce Shearen, City Administrator <br />Sam Magureanu, Finance Director <br /> <br />DATE: August 20, 2025, City Council Workshop <br /> <br />RE: Preliminary Review of the Proposed 2026 Budget and Levy <br /> <br />REQUESTED ACTION: <br />The purpose of this City Council workshop is to review the preliminary 2026 proposed General <br />Fund Operating Budget. The Council is asked to provide feedback at this time, and no additional <br />action is required. <br /> <br />BACKGROUND: <br />The budget document serves as a planning and management tool for implementing the <br />community's vision, as outlined in the Comprehensive Plan and the City Council's Strategic Plan, <br />to ensure the ongoing provision of consistent and cost-effective public services. <br /> <br />When it comes to budget planning, department heads start by updating their budgets based on the <br />previous year’s figures. Any new requests, such as new equipment, staffing, or program <br />expansions, are flagged separately. Before these requests are added to the proposed budget, they <br />are thoroughly discussed with both the Finance Director and the City Administrator to ensure <br />alignment with our city’s strategic goals. Priority is generally given to items that directly support <br />those long-term objectives. <br /> <br />Since Little Canada’s budget includes contracted service where we have little or no control such <br />as police services and fire services, it is challenging to begin the budgeting process with a fixed <br />“cut line” or predetermined levy target. Instead, our focus is on maintaining essential services and <br />operations and concentrate on what is truly necessary for our departments to function effectively. <br /> <br />New spending requests are presented to the City Council for review and discussion, along with an <br />analysis of how each request might impact the property tax levy. We also look at what neighboring <br />cities, both within Ramsey County and beyond are doing to ensure our levy remains competitive <br />and reasonable. <br /> <br />To explore opportunities for reducing the proposed levy, we compile a list of options that may <br />include: <br /> Use of fund balance <br /> Staffing adjustments <br /> Cost of living and benefit changes