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ARDEN HILLS CITY COUNCIL— SEPTEMBER 11, 2023 7 <br /> B. Set Preliminary Levy and Establish Truth-In-Taxation Public Hearing Date <br /> for Proposed Taxes Payable in 2024 <br /> • Resolution 2023-045—Preliminary Levy <br /> • Resolution 2023-046—Truth In Taxation Hearing Date <br /> City Administrator Perrault stated State law requires that cities certify their proposed property <br /> tax levies to the county auditor by September 30th. The proposed tax levy that is given <br /> preliminary approval may be lowered but cannot be increased. Therefore, it is important that the <br /> proposed tax levy provides adequate revenues to finance the 2024 Budget. The City Council needs <br /> to decide the maximum levy that it is willing to approve and then adopt the attached resolution. In <br /> December, the City will hold its Truth and Taxation Hearing and set the final tax levy. A budget <br /> workshop was held with the Council on August 21, 2023. Staff was directed to provide proposed <br /> maximum levy increase options from 0% to 16% (the amount needed to balance the General <br /> Fund). It was noted there will be another budget workshop in either October or November, prior <br /> to the final levy and budget adoption meeting in December. <br /> City Administrator Perrault explained the 2024 preliminary budget is currently being prepared <br /> assuming a 3.0% wage adjustment for all staff. It is important for the City to remain competitive <br /> in the marketplace. There is also a 10% increase assumed for health, a 4% increase for dental and <br /> a 0.0% increase for life insurance premiums. The number of positions included in the budget is <br /> increasing as the Communications Coordinator position was updated from part time to full time. It <br /> should be noted, Union negotiations are ongoing and will likely have an impact on final wage and <br /> benefit amounts. A tax levy history from 2014 through 2023 was reviewed with the Council. <br /> Staff commented further on the preliminary tax levy and budget for 2024 and recommended <br /> approval. <br /> Mayor Grant reported State Statute requires the Council to approve a preliminary budget and <br /> taxy levy by September 30 of each year. <br /> Councilmember Holden asked if the fire department has voted on their budget yet. <br /> City Administrator Perrault reported they have not voted on their budget. He understood they <br /> would be voting on this matter next week or the week after. <br /> Councilmember Holden stated she would have liked to have had information from the Fire <br /> Department before being asked to consider the preliminary budget and tax levy. <br /> Councilmember Rousseau questioned if the information presented by staff was the worst case <br /> scenario for the fire department. <br /> City Administrator Perrault indicated this was the case. <br /> Mayor Grant commented the numbers for the fire department may increase in 2025 because they <br /> were proposing three fire captains in 2024 and three more in 2025. <br /> Councilmember Monson stated this was the case noting the Fire Board would be discussing this <br /> matter further on whether or not six fire captains have to be added in one year. She anticipated the <br /> group would be adding three in 2024 and three in 2025. <br />