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Memo
<br />City Council
<br />2012 Proposed Final Budget and Tax Levy
<br />6
<br />OPERATING BUDGET
<br />Salary and Benefits
<br />The 2012 preliminary budget was prepared assuming a 1.5% wage adjustment for non-union
<br />staff (1.0% Jan lst/1.0% Jul lst) and a 1.0% wage adjustment for union staff (1.0% Jan lst). As
<br />previously discussed with the City Council, in surveying surrounding communities, most have
<br />included a 2.0% COLA increase in their preliminary estimates. While staff is recommending a
<br />$17.21 per month increase in the City's contribution to health and dental insurance (this is
<br />calculated by taking 50% of the increase in the family HSA plan), there is no increase shown in
<br />the budget as this will be taken from reserves in the risk management fund (see note below). The
<br />increase for 2012 is 3.6% for medical and 3.5% for dental. In 2008, the City added a high-
<br />deductible HSA plan which has been helping to keep our costs low, in 2011 we saw a decrease
<br />of 13.1%, so there was no increase in the City contribution in 2011. In 2012 we are receiving the
<br />lowest increase allowable by State Statute for a small group plan (we actually would have seen
<br />another decrease had it not been for this law), so the Co-op has also given us another dividend
<br />based on our low utilization rates. We have started some wellness initiatives which has also
<br />contributed to this success and will use some of these dividend funds to continue working on a
<br />wellness program as directed by the Council goal setting process. Staff proposes to use part of
<br />this dividend reserve ($5,369) to fund the increase in the City Contribution for 2012.
<br />General Fund
<br />Revenues and expenditures are shown in the table below. We have highlighted items that impact
<br />the tax levy and proposed budget on the next page to give you a brief overview. More detailed
<br />commentary is found in the department and fund pages of the budget document.
<br />City of Arden Hills
<br />General Fund
<br />Actual Actual Budget Amended Actual Proposed Adopted % Change
<br />FY 2009 FY 2010 FY 2011 FY 2011 9/30l11 FY 2012 FY 2012 11 vs 12
<br />Revenues
<br />Taxes
<br />Licenses and Permits
<br />Other Intergo�ernmenhal
<br />Charges for Services
<br />Fines & Forfeits
<br />Special Assessmenfs
<br />Miscellaneous
<br />Transfers
<br />Total Revenues
<br />2,835,253 2,867,028 3,069,925 3,069,925 1,509,128 3,161,825 - 2.99%
<br />318,849 255,265 252,600 252,600 229,004 256,850 - 1.68%
<br />130,557 118,981 61,000 61,000 38,009 115,582 - 89.48%
<br />395,290 388,637 386,601 386,601 235,021 425,545 - 10.07°/a
<br />29,668 28,549 50,441 50,441 11,654 45,462 - -9.87%
<br />- - - - 219 210 - 0.00%
<br />42,945 53,054 76,650 76,650 229,320 73,922 - -3.56%
<br />0.00%
<br />$ 3 752 563 $ 3 711 515 $ 3 897 217 $ 3,897,217 $ 2 252 135 $ 4 079,396 $ - 4.67%
<br />Exnenditures bv Cateaory
<br />Personal Services $ 1,300,333 $ 1,358,488 $ 1,319,470 $ 1,319,470 $ 1,031,940 $ 1,336,195 $ - 1.27%
<br />Materials and Supplies 162,905 226,136 195,130 195,130 159,626 125,850 - -35.50%
<br />Other Services and Charges 1,935,629 1,914,592 2,129,806 2,129,806 1,569,896 2,377,351 - 11.62%
<br />CapitalOuUay - - - 1,020 - - 0.00%
<br />Transfers 378,696 270,266 252,600 252,600 - 240,000 - -4.99%
<br />Contingency/Reserves - 20 211 20 211 - - - -100.00%
<br />Total Expenditures $ 3 777 564 $ 3 769 482 $ 3 917 217 $ 3 917 217 $ 2 762 483 $ 4,079,396 $ - 4.14%
<br />Fund Balance- January 1 2,145,930 2,120,929 2,062,962 2,062,962 � 2,062,962 2,042,962
<br />Excess Re�enue O�er E�enditure (25 001) (57 967) (20 000) (20 000) (510 348) (a)
<br />Fund Balance- December 31 $ 2,120,929 $ 2,062,962 $ 2,042,962 $ 2,042,962 $ 1,552,613 $ 2,042,961
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