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<br />The City provides a full range of services: the construction and maintenance of streets and other
<br />infrastructure; recreational and cultural activities; water, sewer, surface water management, and recycling
<br />systems; community development, building inspection, and planning; and general government operations,
<br />including administration, finance/accounting, information systems, community information (newsletter),
<br />and general government buildings. The City contracts with Ramsey County for police services and
<br />Lake Johanna Fire Department for fire services.
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<br />The City Council is required to adopt a final budget by late December for the subsequent year. The budget
<br />is prepared by fund, function (e.g., public safety), and department (e.g., police). Transfers of appropriations
<br />between funds require the approval of the City Council. The legal level of budgetary control is the fund
<br />level. Budgeted amounts may be amended by the City Council.
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<br />The City’s capital improvement program (covering five years), the pavement management plan (covering
<br />five years), and the Twin Cities Army Ammunition Plant (TCAAP) development plan, along with the
<br />annual budget, serve as the foundation for the City’s financial planning, and the annual budget serves as
<br />the budget control.
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<br />LOCAL ECONOMY
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<br />A number of high-profile leaders in the medical, technology, and business sectors, including
<br />Boston Scientific, Land O’ Lakes, IntriCon, Gradient Financial, International Paper, Delkor, and
<br />Presbyterian Homes, are located within the City. These leaders of industry provide high-paying jobs to
<br />skilled employees, which in turn creates a strong base for economic diversity, quality housing, and an
<br />involved citizenry.
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<br />Because of its location in a region with a varied economic base, unemployment is relatively stable. During
<br />the past 10 years, the unemployment rate has fluctuated from a high of 7.6 percent in 2009 to the current
<br />low of 2.7 percent. Unemployment is expected to remain at or below the regional and national average.
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<br />During the past 10 years, property taxes have remained a stable and significant source of total General Fund
<br />and special revenue fund revenues. Intergovernmental revenues have declined over this same time period
<br />and now make up less than 3 percent of total revenues in the General Fund and special revenue funds for
<br />the current fiscal year.
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<br />LONG-TERM FINANCIAL PLANNING
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<br />The unassigned General Fund balance of $3,052,082 (60.3 percent of total subsequent year General Fund
<br />expenditures budgeted) meets the 50 percent target set by the City Council for budgetary and planning
<br />purposes. The total General Fund balance also includes $25,482 of nonspendable equity for prepaid items,
<br />$75,835 of assigned equity for compensated absences, and $186,970 assigned equity for subsequent year’s
<br />budget.
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<br />The City’s five-year capital improvement program and pavement management plan serve as the foundation
<br />for the City’s long-term financial planning. To ensure the timely replacement of infrastructure, the City
<br />prepares long-term cost projections for the replacement of all city assets. Funding needs for capital
<br />replacements are reflected in tax levies and special assessments for capital assets, and are reflected in user
<br />fees established for the Water, Sewer, Surface Water Management, and Recycling Funds.
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