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ARDEN HILLS CITY COUNCIL—DECEMBER 11. 2023 8 11. NEW BUSINESS A. Adoption Of The 2024 Budget And Tax Levy • Resolution 2023-062 Setting the Final Tax Levy for Taxes Payable in 2024 • Resolution 2023-063 Adopting the Proposed 2024 Budget City Administrator Perrault stated budget discussions were held with the Council in August and September. He reported the Council adopted a maximum tax levy increase of 12.55% on September 25, 2023. Another budget workshop was held with the Council on November 13, 2023. The General Fund is the primary operating fund of the City and its main source of revenue is property taxes. The 2024 revenue budget is projected to increase by $569,780 over 2023 to $5,939,200. The main reason for this increase is a proposed property tax increase of$592,270. Expenditures are projected to increase by $591,090 over 2023 to $6,121,270. The increase is mainly due to public safety and personnel costs. Staff reviewed the proposed budget and tax levy in further detail with the Council and recommended approval. Councilmember Rousseau stated the median value homeowner would be see a $100 increase for the year in overall taxes in 2024 from the proposed tax levy increase. City Administrator Perrault reported this was the case, noting this was for the City's portion of taxes only. Councilmember Holden explained for the past 15 years the City has underfunded its budget and there has always been a $100,000+ surplus at the end of the year. She stated the school district was looking to have a 4.56% increase, Met Council would have a 2% increase and she understood rent was going up $30 per month at the trailer park. She believed fully funding the budget would be nice, but she supported bringing the levy down because the middle class was being taxed out of Arden Hills. She reported she lived in a neighborhood near County Road D and New Brighton Road in a 1950's home with two bedrooms and a one-car garage. She commented on how young people were having trouble buying homes given the price of homes and the debt they are carrying from student loans. She stated school district and City taxes were further compounded by the numerous taxes from Ramsey County. She suggested the levy be decreased to 10%or 11%. Councilmember Fabel stated when the preliminary levy was considered it was understood a 16% levy increase would be required to fully fund the budget. He explained at this time the levy was proposed to be 12.55%which would be underfunding the budget. City Administrator Perrault explained this was the case, noting the budget would have a deficit of approximately$130,000. Councilmember Fabel reported Arden Hills has the lowest tax rate of any of the 18 municipalities in Ramsey County, with the exception of North Oaks. City Administrator Perrault stated this was the case, based on the preliminary estimate information staff had, with the exception of North Oaks.