|
<br />-ii-
<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. Governmental funds with annually adopted
<br />budgets include the General Fund and most special revenue funds. A budget was not legally adopted for
<br />the two special revenue funds established for specific short-term projects: Karth Lake Improvement District
<br />and American Rescue Plan Act funds.
<br />
<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.
<br />
<br />LOCAL ECONOMY
<br />
<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.
<br />
<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 6.5 percent in 2020, to a low of
<br />2.7 percent in 2018. The current rate is 4.0 percent.
<br />
<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 makes up approximately 2.7 percent of total revenues
<br />in the General Fund and special revenue funds for the current fiscal year.
<br />
<br />LONG-TERM FINANCIAL PLANNING
<br />
<br />The unassigned General Fund balance of $2,899,564 (55.3 percent of total subsequent year General Fund
<br />expenditures budgeted) meets the 50.0 percent target set by the City Council for budgetary and planning
<br />purposes. The total General Fund balance also includes $31,152 of nonspendable equity for prepaid items,
<br />$99,096 of assigned equity for compensated absences, and $140,000 assigned equity for the subsequent
<br />year’s budget.
<br />
<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.
<br />
<br />Projections for the next 10 years indicate that property tax contributions, user fees, and investment income
<br />will need to be reevaluated to support scheduled replacements. In 2012, the City entered into a Joint Powers
<br />Agreement with Ramsey County to form a Joint Development Authority (JDA) to acquire and develop a
<br />portion of the Army property, formerly known as TCAAP. The county officially acquired this property
<br />April 15, 2013, and has cleaned it to residential standards. The City completed the TCAAP Redevelopment
<br />Code (TRC) in late 2016, which guides the land use on the site. In 2019, the County brought litigation
<br />against the City; however, that litigation was resolved in 2021 in the City’s favor. The land remains
<br />shovel ready, pending future development agreements; any future development on the site is expected to
<br />add to the City’s tax base and could include commercial/industrial, residential, and civic uses. The site is
<br />approximately 430 acres.
|