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Page 3 of 4 <br /> <br />franchise fee proposal of $375,000 per year and a property tax levy of $220,000 per year, an <br />increase of $50,000 over 2024, is being provided to show appropriate funding levels in order <br />to meet future project expenditures. <br />• The one-time Public Safety Aid of $433,084 was received in 2023 and is accounted for in the <br />fund balance. <br /> <br />Equipment & Building Replacement Fund <br />• The current plan includes replacing the City Hall roof in 2025, replacing the City Hall air <br />handlers in 2028, and updating the City Hall building in 2029-2030. <br />• The current $100,000 tax levy does not support the needs of this fund. A property tax levy of <br />$210,000 is being proposed for 2025, which is an increase of $110,000 per year from 2024. <br />This change will ensure there is appropriate funding to meet future expenditures. <br /> <br />Utility Funds <br />• Public Works staff continues to evaluate the condition of City utilities throughout the <br />community. The majority of street projects currently include a minimum amount for isolated <br />utility repairs but these amounts could increase as locations are identified where broader <br />water, sanitary sewer and drainage replacement is needed. <br />• For the Sewer Fund, no I&I grant funds have been included in the plan as the amounts are <br />unpredictable. <br />• Rate increase assumptions are as follows: <br /> Water – 2025-2033 (2%) <br /> Sewer – 2025-2033 (3%) <br /> Storm – 2025-2033 (3%) <br /> <br />Council Direction <br />Staff is seeking direction from the City Council regarding the following items: <br /> <br />2025 Projects <br />As we review the 2025 projects, does the Council have any questions, comments or concerns <br />about including them during budget preparation? <br /> <br />2025 Property Tax Levy <br />The levies for the Equipment/Building Replacement ($100,000) and Public Safety Capital <br />($170,000) funds are currently proposed to increase in this plan. What increases, if any, should <br />staff assume? <br /> <br />2025 Rate Increases - Enterprise Funds <br />A rate study was completed in 2018. Annually, staff performs a review to ensure rates are at an <br />appropriate level in order to meet future anticipated expenditures. Rate increase assumptions are <br />proposed in 2025 and in future years in order to maintain a positive fund balance across the three <br />funds. What changes, if any, should staff assume? <br /> <br />Local Government Aid (LGA) <br />The omnibus tax bill includes an $80 million annual increase in local government aid. Arden <br />Hills received $121,471 of LGA in 2024 and is expected to receive $122,592 in 2025. Staff <br />recommends that these funds are not used for general operations (the state has unallotted LGA in <br />the past) but instead direct them toward capital projects. They are included in the PIR Fund in