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The Minnesota State Legislature enacted Market Value Homestead Credit reductions to property owners in 2003-2004. This credit was not reimbursed to local governments, which in effect reduced tax revenues so local governments did not receive the full amount of their certified levies. In 2005 the legislature reinstated these credit reductions for 2005 and 2006. The credits were reinstated in 2007. However, due to the current economic conditions, the second half payment for 2008 and all of the 2009 and 2010 payments were unallotted by the Governor. All of the 2011 payments were unallotted. The 2011 legislature eliminated the program for 2012 and replaced it with the Market Value Exclusion program previously discussed, taking local governments out of the formula. The City began receiving its full levy in 2012, however, the full effect was seen in 2013 as Fiscal Disparities caught up with the change. Currently there is little land available for residential development and new home construction within the City except with the addition of the TCAAP property. Most development is commercial/industrial and as these areas are developed there will be a decline of permit revenues in the future. This is expected to increase in the future depending on the timing of how the TCAAP property develops. The City pools its cash reserves for investment purposes. One of the City's largest expenditure classifications is personnel services. Personnel services include salaries and fringe benefits for all employees. For 2023, the salaries have been budgeted with a 3.0% COLA increase for non -union employees and a 3.0% COLA increase union employees. The City is switching health insurance plans in 2023 because of the big increase being proposed by our current carrier. In addition to the increase in health insurance, dental will be increasing by 4.1% and there are no changes to Life, Short Term or Long Term Disability. Overall, the city cost for insurance benefits is increasing $43,460 or 15.2%. Finally, the population growth does not only affect the City's General fund, it also affects the City's Water, Sewer, and the Surface Water Management operating funds. As the population has increased, so has the number of utility customers. As the number of customers increase, so does the revenue, the demand for service and the cost of providing the service. The chart below shows the customer changes over the last five years.