09-22-14 Special WS - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORK SESSION— SEPTEMBER 22, 2014 8 Council the proposed 2015 budget and tax levy information for discussion. This was handed out to all Councilmembers at the September 15, 2014, work session. An additional handout was distributed at the meeting that detailed staff salaries. The Council indicated that this salary data did not need to be included in the budget document. Director of Finance and Administrative Services Iverson explained that a final levy is established and certified in December. She indicated that once a preliminary levy is established, the amount can be reduced, but it cannot be increased. In order to proceed with preliminary budget preparation, it would be helpful to have additional Council input. Councilmember McClung reported that the highest levy increase he could support in December would be 2%. He encouraged the Council to find reductions in the budget. City Administrator Klaers commented that the current budget proposed a 4.5% levy increase and $35,000 of reserves being used. He stated that the levy increase equaled $148,000 and covered the public safety increase, the EDA transfer and the increase to street maintenance materials. Councilmember Holmes did not support an expense of$30,000 to the EDA budget. She saw no justification for this expense. Mayor Grant believed that at some point the EDA would need funds to complete projects. The Council had to determine how these economic development projects would be funded. Director of Finance and Administrative Services Iverson stated that the transfer of these funds assist in covering staff time spent on economic development activities. Councilmember Holmes questioned why the City was putting money into employees' HSA accounts. Director of Finance and Administrative Services Iverson indicated that using HSA accounts was a Council policy decision made in 2007, becoming effective in 2008. Previously, the difference between single and family coverage was put into Employee's ICMA-RC 457 plan accounts. At that time, it was determined that a higher deductible plan would lower costs for the City. In 2009, as an incentive for making the transition to such an insurance plan, the difference between the premium and the City's contribution was put into their HSA accounts. Mayor Grant stated that the Council could also decide to change this policy. Councilmember Holden and Councilmember Holmes were in favor of changing this funding policy. Further discussion ensued regarding the amount spent on individual and family insurance policies. Councilmember Holden wanted to see the exact amounts that were being paid monthly for individual and family coverage.