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City Council Work Session Meeting , November 21, 2005 2 "1 City Administrator Wolfe said that a meeting will be scheduled in the near future for the City Council to review the proposed five year CIP. Finance Director Murtuza Siddiqui provided the City Council with a brief overview of the 2006 budget process. He mentioned that the projected expenditures for the 2006 preliminary budget is $8,180,661. This represents an overall reduction of 8.6% from the adopted 2005 budget. The general fund balance is proposed at $3,190,800. This is a reduction of 1.5% from the 2005 adopted budget. The proposed general fund includes a transfer of$73,755 to the Public Safety and Capital Fund budgets. Mr. Siddiqui noted that the market value for most homes in Arden Hills experienced an increase of approximately 15% per year. The following is a breakdown of the property taxes for the residents of Arden Hills: • City of Arden Hills-21% • School Districts-26% • Ramsey County-47% • Other Jurisdicaitons-6% Finance Director Siddiqui reported that the City experienced a reduction of$125,000 in revenue due to a decrease in the number of building permits that were granted in 2005. The reduction in building permits is due to a slow down in construction activity. In 2006, City staff is proposing a 4% levy increase for the City of Arden Hills. This equates to an increase of about $97,000 over the 2005 levy. The average property owner in Arden Hills will pay$45.83 per month for city services. Finance Director Murtuza Siddiqui provided the City Council with an overview of the following areas in the proposed 2006 budget: • A 4% Tax Levy was adopted by the City Council at the September 12`h regular city council meeting. A final levy must be certified and sent to Ramsey County in December 2005. • Overall,the proposed increases to the 2006 budget are inflationary in nature. • City staff is proposing 2.75% cost of living and employee step increases for 2006. • City staff has budgeted for a 10% increase in health care expenses for City staff. The proposed contribution toward health and dental insurance premiums is $586.00 a month for 2006. • $10,000 has been budgeted to hire a consultant or temporary staff for programming internal controls for automating financial reports and documentation. • The 2006 preliminary CIP budget numbers are as follows: 1. Ridgewood Neighborhood-$1,764,000; 2. Reconstruction of lift stations 1,11,12, and 13-$560,000; 3. Replacement of One Toro Groundsmaster-$30,000; 4. Tony Schmidt Park Underpass-$32,000;