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As previously noted, the City recorded a change in accounting principle in the current year for reporting the City's participation in the PERA pension plan. Information needed to restate previous periods was not readily available; therefore, prior period amounts were not restated. State statutes limit the amount of general obligation debt a governmental entity may issue to three percent of its total assessed valuation. The current legal debt margin for the City is $40,470,861. 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 -tern 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 3.8%, which is a decrease from a rate of 5.3% a year ago. The state of Minnesota shows an average unemployment rate of 3.7%, whereas, nationally the unemployment rate is 4.9%. • The number of foreclosures in the City of Ramsey decreased from 35 units in 2014 to 27 in 2015. In comparison, the State of Minnesota saw a decrease in foreclosures from 8,309 in 2014 to 7,212 in 2015. • 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 access to the Ramsey Station for the Minnesota Northstar commuter rail and continued development with The COR. All of these factors were considered in preparing the City of Ramsey's budget for the 2016 fiscal year. The water, sewer and storm water utility rates were increased for the 2016 budget year. The water utility, which has a tiered rate structure, will increase by an average of 2% for all customers. Sewer utility rates will increase by 3% and storm water utilities will increase an average of 10%. 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 five-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