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CAPITAL ASSETS AND LONG-TERM LIABILITIES (CONTINUED) 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 4.4%, which is an increase from a rate of 3.2% a year ago. The state of Minnesota shows an average unemployment rate of 4.9%, whereas, nationally the unemployment rate is 6.5%. • The number of foreclosures in the City of Ramsey decreased from 32 units in 2019 to 5 in 2020. Due to the Covid-19 pandemic, there has been a moratorium on foreclosures and evictions. • Inflationary trends in the region compare favorably to national indices. • The COVID-19 pandemic caused substantial volatility in the economy and changes to the City's operations in 2020, and is expected to continue to impact the City's finances and operations in fiscal 2021 and beyond. Significant uncertainty remains about the breadth and duration of the pandemic. At this time, the City is unable to determine what effect this may have on its future financial condition. All of these factors were considered in preparing the City of Ramsey's budget for the 2021 fiscal year. The water and recycling utility rates were increased for the 2021 budget year. The water utility, which has a tiered rate structure, will increase by an average of 2.5% for all customers. The recycling utility, which has a flat rate structure and charges residential accounts only, will see an increase of 35%. The city contracts with Ace to provide recycling service throughout the city. The recycling rate had not been increased since 2008. The increased rates are to not only offset current maintenance costs and depreciation, but to help finance future utility improvements that are documented in the City's ten-year Capital Improvement Plan. 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. 36