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ARDEN HILLS CITY COUNCIL SPECIAL WORK SESSION — NOVEMBER 13, 2023 2 2. RESPONSE TO PUBLIC INQUIRIES None. 3. AGENDA ITEMS A. 2024 Budget Discussion City Administrator Perrault noted that the City Wide Budget Summary for 2024 includes the General Fund, Utility Fund and Special Revenue Funds. Council had seen the CIP previously in July, the Operating Budget in August, the General Fund Preliminary Levy was approved in September. There is $15.5 million in revenue coming into the City, and expenditures of $19.8 million. The large discrepancy is generally from CIP projects. City Administrator Perrault explained pie charts that showed the City Wide Summary by type. He reviewed Wages and Benefits for 2024, with total personnel costs increasing by $253,490 from 2023 to 2024. In the General Fund Revenues property taxes were increasing by 13.7%. He explained the other types of revenue included in the General Fund. City Administrator Perrault described the General Fund Expenditures, and the 2024-2028 CIP. He explained the dollars set aside for Economic Development in 2025 and 2027 were for gateway signs. He showed a chart of the 2024 Capital Projects, and noted that in the Utility Funds water would not increase, sewer will increase by 3% and surface water will increase by 5%. Based on a household of 9,000 gallons used there will be an increase from $221 to $225. City Administrator Perrault reviewed the Tax Impact of the 12.55% levy over 2023, the Tax Levy history, compared Arden Hills with 2023 Tax Rates for other cities in Ramsey County, and the Proposed Tax Levy for 2024. He explained the other funds that rely on Tax Levy dollars; EDA Fund, Public Safety Capital Fund, Equipment/Building Replacement Fund and the PIR Fund. City Administrator Perrault stated the current wage and benefit assumptions include a 3% COLA, insurance benefits are increasing by 10% for health and 4% for dental. Changes being made within the Lake Johanna Fire Department will require future additional levy increases. He wondered what levy the Council would like to consider for the Truth in Taxation meeting in December which is currently at 12.55%. The amount cannot be raised but can be lowered. Councilmember Holden said in the statewide budget summary for 2023 there was a negative $900,000 but yet at an earlier meeting it was said there would be about $200,000 carry over. Was that still true? City Administrator Perrault said they will come in under budget on the expenditure side, mostly due to salary savings. However, on the revenue side they are down on building permit revenue as there haven't been any large construction projects this year. Conservatively $200,000 is what he would predict. Councilmember Monson stated they had a shortfall in revenue, but staff vacancies that allowed cushion on expenditures. She asked if this was a common pattern?