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-ii- The City provides a full range of services: the construction and maintenance of streets and other infrastructure; recreational and cultural activities; water, sewer, surface water management, and recycling systems; community development, building inspection, and planning; and general government operations, including administration, finance/accounting, information systems, community information (newsletter), and general government buildings. The City contracts with Ramsey County for police services and Lake Johanna Fire Department for fire services. The City Council is required to adopt a final budget by late December for the subsequent year. The budget is prepared by fund, function (e.g., public safety), and department (e.g., police). Transfers of appropriations between funds require the approval of the City Council. The legal level of budgetary control is the fund level. Budgeted amounts may be amended by the City Council. The City’s capital improvement program (covering five years), the pavement management plan (covering five years), and the Twin Cities Army Ammunition Plant (TCAAP) development plan , along with the annual budget, serve as the foundation for the City’s financial planning, and the annual budget serves as the budget control. LOCAL ECONOMY A number of high-profile leaders in the medical, technology, and business sectors, including Boston Scientific, Land O’ Lakes, IntriCon, Gradient Financial, International Paper, Delkor, and Presbyterian Homes are located within the City. These leaders of industry provide high -paying jobs to skilled employees, which in turn creates a strong base for economic diversity, quality housing, and an involved citizenry. Because of its location in a region with a varied economic base, unemployment is relatively stable . During the past 10 years, the unemployment rate has fluctuated from a high of 7.6 percent in 2009 to the current low of 3.3 percent. Unemployment is expected to remain at or below the regional and national average. During the past 10 years, property taxes have remained a stable and significant source of total General Fund and special revenue fund revenues. Intergovernmental revenues have declined over this same time period and now make up less than 3 percent of total revenues in the General Fund and special revenue funds for the current fiscal year. LONG-TERM FINANCIAL PLANNING The unassigned General Fund balance of $3,065,250 (64.4 percent of total subsequent year General Fund expenditures budgeted) meets the 50 percent target set by the City Council for budgetary and planning purposes. The total General Fund balance also includes $288,519 of nonspendable equity for prepaid items, $48,323 of assigned equity for compensated absences, and $237,225 assigned equity for subsequent year’s budget. The City’s five-year capital improvement program and pavement management plan serve as the foundation for the City’s long-term financial planning. To ensure the timely replacement of infrastructure, the City prepares long-term cost projections for the replacement of all city assets. Funding needs for capital replacements are reflected in tax levies and special assessments for capital assets, and are reflected in user fees established for the Water, Sewer, Surface Water Management, and Recycling Funds.