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NEW BUSINESS ITEM —11B 'It ,-AI�EN HILLS MEMORANDUM DATE: September 11, 2023 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Consider Approval of Preliminary Tax Levy Payable in 2024 and Setting Budget Public Hearing Date Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motions to approve, table or deny the following: • Resolution 2023-045 setting the Preliminary Levy for Taxes Payable in 2024 • Resolution 2023-046 adopting Truth In Taxation Public Hearing Date for Proposed Taxes Payable in 2024 Background State law requires that cities certify their proposed property tax levies to the county auditor by September 30t'. The proposed tax levy that is given preliminary approval may be lowered but cannot be increased. Therefore, it is important that the proposed tax levy provides adequate revenues to finance the 2024 Budget. The City Council needs to decide the maximum levy that it is willing to approve and then adopt the attached resolution. In December, the City will hold its Truth and Taxation Hearing and set the final tax levy. A budget workshop was held with the Council on August 21, 2023. Staff was directed to provide proposed maximum levy increase options from 0% to 16% (the amount needed to balance the General Fund). There will be another budget workshop in either October or November, prior to the final levy and budget adoption meeting in December. Discussion Wages and Benefits The 2024 preliminary budget is currently being prepared assuming a 3.0% wage adjustment for all staff. It is important for the City to remain competitive in the marketplace. There is also a 10% increase assumed for health, a 4% increase for dental and a 0.0% increase for life insurance premiums. The number of positions included in the budget is increasing as the Communications Coordinator position was updated from part time to full time and there are changes to some of the Page 1 of 6