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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 2022 revenue budget is projected to decrease by $22,750 over 2021 to $5,099,510. One of the reasons for this decrease is the inclusion of building permit revenue of $275,000 for three significant projects in 2021 and only $75,000 included in 2022. Expenditures are projected to increase by $12,150 over 2021 to $5,225,130. The increase is mainly due to public safety costs. • The police contract is expected to rise by 0.4%, or $5,890 for 2022. Major cost drivers include a 2.5% COLA, the addition of a Commander position for communications and records administration, and automotive repair increases due to County garage rates. • Dispatch costs will be increasing by 10.8%, or $6,010. This is mainly due to an error that was discovered last year 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 years 2021 - 2023. The impact of this shift will happen over a three-year period (2021-2023) 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 6.1%, or $40,270 for 2022. This is mainly due to increased wages for the chiefs and office manager ($58,610), an increase in coverage for family health insurance to 80% ($6,000) and the addition of a firefighter to the weekday shift ($39,470), all of which Arden Hills’ cost share portion is 25%. Special Revenue Funds The City has six special revenue funds with activity in 2022 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 2022. 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 established at the end of 2019. Capital Project Funds The Council has previously reviewed the 2022-2026 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 ($170,000). The property tax allocation for the Public Safety Capital Fund will continue to need to be increased in future years. There is also a transfer proposed from the Park Development Fund to the PIR Fund to help pay for the park improvement projects scheduled for 2022. This transfer represents the Park Dedication Fees the City has collected in recent years.