08-16-21-WS - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORK SESSION — AUGUST 16, 2021 3 Finance Director Bauman reviewed the overall General Fund budget summary, revenues by source, expenditures by department and by type. She discussed the tax levy history, the implications of the proposed tax levy and General Fund tax levy assumptions. She discussed budgeted amounts versus actual activity by year and other funds relying on tax levy dollars. Finance Director Bauman said the current assumption for wages and benefits is a 3% COLA, 8% health insurance increase and 3% dental increase. She asked if any of those assumptions should be changed. City Administrator Perrault commented that the health insurance increase was a preliminary number from the provider. Councilmember Holmes felt they shouldn't be budgeting for a hypothetical project when discussing building permit fee revenue. Councilmember Scott said a placeholder would be beneficial. Councilmember McClung agreed. Finance Director Bauman said it is anticipated that $200,000 of the $240,000 set for 2021 sealcoating and resurfacing would be used. She wondered if the Council wanted to keep it at $240,000 for 2022. After a brief discussion, direction from Council was to set it at $220,000. Finance Director Bauman said the placeholder for the TCAAP budget (legal and financial consultants) is $89,400 for 2022. Should this amount be reduced? After discussion, direction from Council was to leave it as is. Finance Director Bauman said if they would like to talk about the maximum levy at another work session they could but she needed to know the range where they were comfortable. Councilmember Scott felt they shouldn't underbudget and should move up a bit from 3%, to between 3 and 5%. Councilmember Holmes said 3-5%. Councilmember McClung was comfortable with 3%. Mayor Grant said he was probably on the lower side but staff should come back with a 3-5% range. D. City Diseased Tree Control Program Interim Public Works Director Swearingen stated they are specifically talking about he Emerald Ash Borer Management Plan. He reviewed the action steps in the current plan.