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2023 Step increases/position changes $56,590 2023 COLA adjustments $74,290 Insurance benefits $48,820 Work Comp insurance $8,000 TOTAL $187,700 General Fund The General Fund is the primary operating fund of the City and its main source of revenue is property taxes. The 2023 revenue budget is projected to increase by $337,000 over 2022 to $5,436,510. The main reason for this increase is a proposed property tax increase of $263,090. Expenditures are projected to increase by $360,670 over 2022 to $5,600,180. The increase is mainly due to public safety and personnel costs. • The police contract is expected to rise by 4.0%, or $56,150 for 2023. Major cost drivers include personnel costs, including a one-time market adjustment for each job classification and a 2.25% cost of living adjustment; an increase in Information Services fees due to budget increases and an increase in the percentage charged to contract communities; increases in county fleet rates and gasoline prices; and $100,000 contingency funding which will be returned at year end if it is not needed. Our portion is about $12,790. • Dispatch costs will be increasing by 11.2%, or $6,930. This is mainly due to an error that was discovered in 2020 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 7.8%, or $54,510 for 2023. This is mainly due to increased wages for full time staff ($33,750), part time staff ($87,700), training ($38,250), clothing ($13,680), IT services ($16,650) and fuel/supplies ($19,100), all of which Arden Hills' cost share portion is 24.9%. Also, an allocation of $70,000 is being set aside for the proposed future staffing models. • Personnel costs are increasing by $134,930 over 2022. Special Revenue Funds The City has five special revenue funds with activity in 2023 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 2023. None of the three Tax Increment Financing Funds currently receives tax increment revenue. TIF #3 and TIF #4 have or will be decertified and have funds available for future eligible projects. TIF #5 was established at the end of 2019. Capital Proiect Funds The Council has previously reviewed the 2023-2027 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 ($220,000). The property tax allocation for the Public Safety Capital Fund will continue to need to be increased in future years. Page 2 of 5