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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 wage allocations. It should be noted, Union negotiations are ongoing and will likely have an impact on final wage and benefit amounts. Below is a table showing the recent history of approved COLA's. Year Non Union IUOE Union 2023 3.00% 3.00% 2022 3.00% 3.00% + addition of Fleet Lead 2021 2.00% 3.00% 2020 3.00% Market adjustment; minimum increase was 5.80% 2019 2.50% 2.50% 2018 2.10% 2.25% Public Safety 2024 budget information was received from Ramsey County and Lake Johanna Fire Department for public safety. POLICE The police contract is expected to rise by 9.8%, or $141,913 for 2024 (a decrease pf $13,567 from the last meeting). Information provided by Ramsey County on this increase is as follows: The major cost drivers include: • Withdrawal by City of Falcon Heights from county contract. • Labor contracts and increased costs related to employee health insurance. Increased costs related to county fees for insurance and administrative overhead/indirect costs. DISPATCH Dispatch costs will be increasing by 2.4%, or $1,650. An error was discovered in 2020 in the way report queries undercounted medical calls in previous years for cities served by Allina. This meant an increase in call counts and an increase in cost sharing for the years 2021 - 2023. The impact of this shift occurred 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. FIRE The fire operating costs are expected to rise by 7.9%, or $59,028 for 2024 (a decrease of $103,306 from the last meeting). Major drivers include a wage increase for the two deputy chiefs, an increase in supplies related to the 6 new positions and an increase in repairs and maintenance, all of which Arden Hills' cost share portion is 24.4%. While the grant received by the fire department will cover the cost of added staffing for three years, the city will need to plan for additional spending related to the staffing when the grant runs out at the end of 2026. In order to cover the future increase in costs and to avoid future levy spikes, staff is recommending putting additional money into the levy Page 2 of 6