2011 CAFR - Laserfiche WebLink

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During the current fiscal year, The City saw a decrease of $1.810 million in bonds and certificates as normal pay down of scheduled principle payments. The City issued two new bond series during the current fiscal year. The series 2011A bonds were issued to fund the Armstrong /Bunker road capital improvement project. The series 2011B bonds were issued as an improvement crossover refunding bond for the 2005B series bonds. The compensated absence liability increased $56,681 due to increased longevity of employees. Other Post - Employment Benefits (OPEB) increased $72,930 due to an increase in the annual required contribution as actuarially determined with the parameters of GASB Statement Nos. 43 and 45. State statutes limit the amount of general obligation debt a governmental entity may issue to three percent of its total assessed valuation. The current debt limitation for the City is $59,384,853. The City has sufficient funds on hand to make all required bond payments, and anticipates an ongoing stream of revenue to make future bond payments. Additional details of the long -term debt activity for the year can be found in Note 5 of the notes to basic financial statements. Economic Factors and Next Year's Budgets and Rates • The unemployment rate for the City of Ramsey is currently 6.7 %, which is a decrease from a rate of 7.3% a year ago. The state of Minnesota shows an average unemployment rate of 6.4 %, whereas, nationally the unemployment rate is 8.3 %. • The number of foreclosures in the City of Ramsey decreased from 200 units in 2010 to 109 in 2011. In comparison, the State of Minnesota saw an 17% decrease in foreclosures from 25,673 in 2010 to 21,298 in 2011. • Inflationary trends in the region compare favorably to national indices. • The city is expecting steady residential and commercial growth within the next three years, spurred by the impending construction of the Ramsey Station for the Minnesota Northstar commuter rail. All of these factors were considered in preparing the City of Ramsey's budget for the 2012 fiscal year. The water and storm water utility rates were increased for the 2012 budget year. The water utility, which has a tiered rate structure, will increase by an average of 2% for all customers. This rate increase is to help offset the construction costs of future capital improvements, most likely a water treatment plant. The storm water utilities will increase an average of 3 %. The increased rates are to not only offset current maintenance costs and depreciation, but to help finance 2012 storm utility projects. REQUESTS FOR INFORMATION Questions concerning any of the information provided in this report or requests for additional information should be addressed by writing to the City of Ramsey, 7550 Sunwood Drive Northwest, Ramsey, MN 55303 or by calling (763) 427 -1410. 33