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The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the City’s character in a fiscally responsible manner in partnership with our community. 3880 Laverne Ave N | Lake Elmo | MN 55042 | (651) 747-3900 | lakeelmo.gov 4 And new applications for building and development continue to come in. Some of which include: • Bridgewater – 3 Commercial lots and a future apartment site • Clear Lake – 22 Single-Family Homes • Prairie Sky – 30 Two-Family Homes • Lake Elmo Elementary School • Oakland Middle School Addition • Limerick Village - 67 single-family unattached homes, 221 townhomes, 271 apartment units, and 120 senior living unit. • Roers– 190-unit apartment building • Inwood 8th - 148 townhomes and a 123-unit apartment building • Highpointe Crossing – 65 Single-Family Homes Further, the following commercial building projects were fully completed in 2024: • Drake Development - Tesla, Dairy Queen • Milestones Daycare • DeMontreville Convent • Jesuit Retreat house The City’s highway infrastructure continues to make Lake Elmo a desirable residential location. Rapid growth is further reflected in 2023 population estimates of 14,033 or an increase of 24% since the 2020 census. New housing starts in 2024 numbered 84 with a total permit value of $36,946,000 and an average home value of $439,833. There was one apartment building with 146 units valued at $32,920,000. There were 5 new commercial construction projects in 2024, and a number of remodels and expansions. All these new starts have been built in 2024 or will be finished in 2025, which will greatly strengthen the existing tax base of the City. LONG TERM FINANCIAL PLANNING Total unassigned General Fund balance as of December 31, 2024 was 129% of the next year’s general fund expenditures and other financing uses. Although the State Auditor recommends maintaining a level of 35% - 50%, the City has consistently exceeded that rate, showing the City’s financial strength. In 2023, the City moved from a 5-year to a 10-year Capital Improvement Plan (“CIP”). The City’s 10-year CIP serves as the foundation for long-term financial planning. Funding needs for capital replacements are reflected in tax levies for the street renewal and general fund asset replacements. Funding needs for capital infrastructure in the enterprise funds are funded through user fees in those funds. During 2017, Moody’s Investors Service increased the City's long-term debt rating to Aa1, and reaffirmed this rating in 2022, 2023, and 2024. In their assessment of the City, Moody’s noted the following: • Very strong financial position • Full value per capita and resident income levels exceed the median for similarly rated peers nationally Projections for the next 5 years indicate that property tax contributions, user fees and investment income will continue to grow based on planned development and expansion within the City.