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Page 2 of 5 Total personnel costs increased by $253,490 from 2023 to 2024. The breakdown of this increase is as follows: 2024 Step increases/position changes $118,570 2024 COLA adjustments $77,280 Insurance benefits $36,640 Work Comp insurance $21,000 TOTAL $253,490 General Fund 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. • The police contract is expected to rise by 9.1%, or $131,960 for 2024. Major cost drivers include withdrawal by City of Falcon Heights from the county contract; labor contracts and increased costs related to employee health insurance; and increased costs related to county fees for insurance and administrative overhead/indirect costs. • Dispatch costs will be increasing by 2.4%, or $1,650. • The fire operating costs are expected to rise by 11.0%, or $82,750 for 2024. This is mainly due to the addition of 6 full time captains, a significant wage increase for the two deputy chiefs, an increase in supplies related to the 6 new positions and an increase in repairs and maintenance, all of which Arden Hills’ cost share portion is 24.4%. The levy increase needed to cover police and fire services is $216,360. Special Revenue Funds The City has five special revenue funds with activity in 2024 that finance various activities with restricted revenues. The allocation of property tax dollars is proposed to remain the same for the EDA General Fund ($100,000). The audio/video equipment was updated in the Council Chambers during 2019 so there are no major purchases budgeted in the Cable TV Fund for 2023. None of the three Tax Increment Financing Funds currently receives tax increment revenue. TIF #3 and TIF #4 have been decertified and have funds available for future eligible projects. TIF #5 was established at the end of 2019. Capital Project Funds The Council has previously reviewed the 2024-2028 CIP. Much of this information is reflected in the capital funds of the City. The allocation of property tax dollars is proposed to increase for the Equipment and Building Replacement Fund by $220,000 ($270,000), remain the same for the Capital Improvement (PIR) Fund ($250,000), and decrease by $180,000 for the Public Safety Capital Fund ($40,000).