08-27-2025 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Bryce Shearen, City Administrator Sam Magureanu, Finance Director DATE: September 10, 2025, City Council RE: 2026 Preliminary Budget and Levy REQUESTED ACTION: The Council is asked to consider motions to approve the 2026 preliminary levy, set a date and time for the budget hearing, and set the bonded debt tax levy at zero. BACKGROUND: The City of Little Canada is required to establish a preliminary levy by September 30th. The preliminary levy may be decreased before the final adoption in December, but it may not be increased. A preliminary levy and general fund budget in more detail was presented at City Council workshops on August 20th, August 27th, and September 10th. NOTE: The current presented budget does NOT include contracted services for Inspections for the City of St. Anthony. It is expected that the levy will be approximately the same with or without St. Anthony contract in place, since all the cost that will be incurred from this contract will be fully reimbursable to the City. 2026 Proposed Levy: The Proposed Levy increase for the 2026 Budget is at 10.14% or $499,938, and it includes the following budgetary changes/requests: A. Police Services Ramsey County Contract – 6.14% Levy Increase The City of Little Canada’s total share of the RCSO contract increased from 17.12% in 2025 to 17.21% in 2026. The total proposed is a net increase of 13.44% or $270,930 when considering the net contract (expenditures less projected refunded revenues). Historical data in the table below shows that the 2026 budget 13.44% increase is the highest increase the City has experienced in the last six years. The RCSO contract increase is expected to have an estimated 6.14% gross levy impact on the City’s 2026 budget. Approximately $44,125.18 equals a 1% gross levy increase for the City of Little Canada.