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CAPITAL ASSETS AND LONG-TERM LIABILITIES (CONTINUED) 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 $82,652,170. 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 6 of the notes to basic financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES •The unemployment rate for the City is currently 2.2%, which is a decrease from a rate of 2.6% a year ago. The state of Minnesota shows an average unemployment rate of 2.6%, whereas, nationally the unemployment rate is 3.5%. •The housing market has increased the City’s estimated market value from $4.125 billion in 2022/taxes payable 2023 to $4.499 billion in 2023/taxes payable 2024 for a percentage increase of approximately 9%. •Inflationary trends in the region compare favorably to national indices. All of these factors were considered in preparing the City of Ramsey’s budget for the 2024 fiscal year. The water, sewer and storm utility rates were increased for the 2024 budget year. The water utility, which has a tiered rate structure, will increase by an average of 5% for all customers. The sewer utility, which has a flat rate structure for residential accounts only, will see an increase of 10%. Commercial sewer accounts, whose charges are based on their water usage, will also see a rate increase of 10%. Storm water utility will increase an average of 5%. The increased rates not only offset current maintenance costs and depreciation, but are being used to finance the construction of the water treatment plant and other 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