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ARDEN HILLS CITY COUNCIL WORK SESSION — August 19, 2019 8 million, which is an increase of 1.4%. The building plan check fees budgeted for 2019 were a little high, so the charges for services budget is dropping in 2020. Finance Director Bauman showed a graph of General Fund expenditures for 2016-2020. Councilmember Holden requested the graph be revised to show budgeted versus actual dollars. Finance Director Bauman noted the biggest increase is in public safety costs which the City contracts for. Overall the Personnel Services Budget is going up only by a total of 1.8%, which includes a 3% COLA, 3% health and 3.5% dental. Finance Director Bauman said the Supplies and Materials Budget didn't change much between the two years, but the contractual services budget is changing. It is being proposed to move $50,000 from the Street Maintenance Budget for patching and overlay to the PIR Fund. The Ramsey County police contract will have a $95,870 increase, the Ramsey County dispatch contract is going down almost $23,000, and the Lake Johanna Fire Department budget is increasing $47,310. Finance Director Bauman discussed property values. All property type values are increasing in Ramsey County, but the biggest increase will be residential. County wide taxable market values on residential properties are going up 8.5%, commercial/industrial is going up 1.6% and apartments are going up 7.4%. Median home values in Arden Hills are going up from $346,900 to $372,400. City tax on $346,900 payable in 2019 was $871. That home at $372,400 with the proposed 5% tax levy would be $926, or a $55 increase. The median value home price has increased 24% since 2016 but the City tax on that home has gone up 20%. Based on current values, the proposed tax rate would be the lowest it's been since 2012. Finance Director Bauman explained the Proposed Tax Levy chart and list of tax levy assumptions. Other funds that rely on tax levy dollars include the EDA fund, Public Safety Capital Fund, Equipment/Building Replacement Fund and the PIR fund. Discussion ensued regarding street paving projects and related costs. Interim Public Works Director/City Engineer Blomstrom will do an analysis to see the exact cost savings from doing paving work with our City staff versus hiring a contractor. Councilmember Holden asked about the process for department heads setting their budgets. Finance Director Bauman replied that she sends detailed line items of the previous two years budgets to the department heads and asks for them to fill in the budget for the third year. She then goes through the items and asks questions as needed. After discussion regarding the tax levy, it was generally agreed that a 5% maximum would be brought forward for preliminary approval. Finance Director Bauman will bring the General Fund Budget to a Council meeting in September for Council to set a tax levy at that time.