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Memo - City Council <br />2018 Proposed Preliminary Budget and Tax Levy <br />4 <br /> <br /> <br />OPERATING BUDGET <br /> <br />Salary and Benefits <br /> <br />The 2018 preliminary budget is currently being prepared assuming a 2.5% wage adjustment for <br />non-union staff and 2.5% for union staff. Medical benefits are estimated to be increasing by <br />10.0%, which the City will split the increased cost with the employee by paying 40% of the <br />increase leaving the employee with 60% of the increase. <br /> <br />Of note, overall personnel costs do not show a significant increase due to that fact that some <br />increases are being offset by positions being filled by consultants achieving a cost savings over <br />having the position staffed by a full-time employee. <br /> <br />The following staffing changes have been made for the 2018 Budget <br /> <br />-Addition of a Communications Coordinator <br />-Addition of a Public Works Working Foreman <br />-Removal of the Finance Analyst <br /> <br />In surveying surrounding communities most have included a 2.0% - 3.0% COLA increase in <br />their preliminary estimates for their 2018 budgets. <br /> <br /> <br />General Fund <br /> <br />City Staff previously presented the City Council with a proposed budget. The budget did not <br />show an increase in the City’s tax levy, but did show a funding gap in the General Fund. The <br />table below illustrates the previous year’s budget and current year’s budget and their associated <br />changes. <br /> <br />Revenues/Expenditures 2017 2018 % Change <br />Budgeted Revenues 4,860,297 4,793,879 -1.37% <br />Budgeted Expenditures 5,056,253 5,180,572 2.46% <br />Amount Over (Under) (195,956)(386,693) <br />The 2018 budget is an approximate 2.5%, or $124,319, increase over the 2017 budget. The <br />increase in the budget can largely be attributed to: <br /> <br />-Increase estimated cost in the Policing Contract of 4.1% or $47,915 <br />-This increase reflects costs due to cost of living changes and anticipated capital <br />expenditures. However, these costs may change depending on if Ramsey County takes <br />on another city in their policing contract, which would lower the anticipated costs for <br />Arden Hills. <br /> <br />-Increase estimated cost in the Fire Protection Contract of 5.7% or $29,532 <br />-This cost increase reflects increases in the anticipating operating expenses for the Lake <br />Johanna Fire Department.