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