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ARDEN HILLS CITY COUNCIL — SEPTEMBER 11, 2023 7 B. Set Preliminary Levy and Establish Truth -In -Taxation Public Hearing Date for Proposed Taxes Payable in 2024 • Resolution 2023-045 — Preliminary Levy • Resolution 2023-046 — Truth In Taxation Hearing Date City Administrator Perrault stated State law requires that cities certify their proposed property tax levies to the county auditor by September 30th. 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). It was noted there will be another budget workshop in either October or November, prior to the final levy and budget adoption meeting in December. City Administrator Perrault explained 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. It should be noted, Union negotiations are ongoing and will likely have an impact on final wage and benefit amounts. A tax levy history from 2014 through 2023 was reviewed with the Council. Staff commented further on the preliminary tax levy and budget for 2024 and recommended approval. Mayor Grant reported State Statute requires the Council to approve a preliminary budget and taxy levy by September 30 of each year. Councilmember Holden asked if the fire department has voted on their budget yet. City Administrator Perrault reported they have not voted on their budget. He understood they would be voting on this matter next week or the week after. Councilmember Holden stated she would have liked to have had information from the Fire Department before being asked to consider the preliminary budget and tax levy. Councilmember Rousseau questioned if the information presented by staff was the worst case scenario for the fire department. City Administrator Perrault indicated this was the case. Mayor Grant commented the numbers for the fire department may increase in 2025 because they were proposing three fire captains in 2024 and three more in 2025. Councilmember Monson stated this was the case noting the Fire Board would be discussing this matter further on whether or not six fire captains have to be added in one year. She anticipated the group would be adding three in 2024 and three in 2025.