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Page 2 of 4 General Fund The General Fund is the primary operating fund of the City and its main source of revenue is property taxes. The 2021 revenue budget is projected to increase by $256,550 over 2020 to $5,153,270. One of the reasons for this increase is the proposed tax levy increase which increases the General Fund revenue by $125,750. Another reason is inclusion of building permit revenue of $275,000 for three significant projects expected to move forward next year. If any of these project do not move forward and no other projects develop during 2021, the budget for building permit fee revenues may be overstated. The budget for Municipal State Aid Maintenance had to be reduced by $22,240 from the amount presented to the Council back in August. COVID-19 has had an impact on these revenues and the City was notified of an approximate 15% decrease for 2021. Expenditures are projected to increase by $194,670 over 2020 to $5,212,980. Besides personnel costs, the increase is mainly due to public safety costs. • The police contract is expected to rise by 3.8%, or $51,120 for 2021. Major cost drivers include a 2.5% COLA, PERA rate increases, first aid supplies, training and a decrease in revenues. • Dispatch costs will be increasing by 22.4%, or $10,220. This is mainly due to an error in the way report queries undercounted medical calls in previous years for cities served by Allina. This means an increase in call counts and an increase in cost sharing for the next three years. The impact of this shift will happen over a three-year period as the use of a three-year rolling average of call counts smooths out variability in annual call fluctuations. • The fire costs are expected to rise by 5.7%, or $35,410 for 2021. This is mainly due to increased personnel costs ($51,690), the addition of family health insurance ($28,000) and an increase in routine maintenance repairs ($26,720), all of which Arden Hills’ cost share portion is 25%. Special Revenue Funds The City has five special revenue funds with activity in 2021 that finance various activities with restricted revenues. The allocation of property tax dollars is proposed to remain the same for the EDA General Fund ($100,000). The audio/video equipment was updated in the Council Chambers during 2019 so there are no major purchases budgeted in the Cable TV Fund for 2021. Only one of the three Tax Increment Financing Funds currently receives tax increment revenue (TIF #4). TIF #3 has been decertified and has funds available for future eligible projects. TIF #5 was recently established at the end of 2019. Capital Project Funds The Council has previously reviewed the 2021-2025 CIP. Much of this information is reflected in the capital funds of the City. The allocation of property tax dollars is proposed to remain the same for the Equipment and Building Replacement Fund ($50,000), remain the same for the Capital Improvement (PIR) Fund ($250,000), and increase by $50,000 for the Public Safety Capital Fund ($120,000). The property tax allocation for the Public Safety Capital Fund will need to be increased in future years. CIP 2021-2025 Projects included in the 2021 Proposed Budget and CIP are as follows: Project Fund Source Amount City Hall Maintenance Equip/Bldg Replacement $50,000 LJFD Road Costs Public Safety Capital $80,600 LJFD Capital Items Public Safety Capital $19,660 Lift Station Rehab Sewer $48,000 Sewer Lining/Rehab Sewer $220,000