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AGENDA ITEM lt ,-ARZEN HILLS MEMORANDUM DATE: September 9, 2024 Honorable Mayor and City Councilmembers TO: Jessica Jagoe, Interim City Administrator FROM: Joua Yang, Finance Director SUBJECT: Preliminary 2025 General Fund Budget Budgeted Amount: Actual Amount: N/A N/A Council Should Consider Funding Source: N/A Provide feedback on the Preliminary General Fund budget for the 2025 fiscal year. Background 3C A budget workshop was held with the Council on August 19, 2024. Staff was directed to provide proposed maximum levy increase options needed to balance the General Fund based upon proposed levy scenarios. Most of the budget information contained below remains the same, with the exception of updated information outlined here: Ramsey County Sheriff Office's contract increase of $35,990 based on the final 2025 approved budget EDA levy transfer of $100,000 to the General Fund, which is a net neutral levy impact Personnel changes based upon Option I of the David Drown and Associates (DDA) compensation and class study State law requires that cities certify their proposed property tax levies to the county auditor by September 30th of each year. At the September 23, 2024 City Council meeting, the City Council will need to decide the maximum levy that it is willing to approve and adopt. There will be another budget workshop in November, prior to the final levy and budget adoption meeting in December. The final levy will be set in December 2024. Discussion Wages and Benefits The 2025 preliminary budget currently being prepared assumes a 3.0% wage adjustment for all staff, reclassification changes (for non -union employees), and adjustments to the current wage schedule which is based upon the latest compensation study prepared by DDA. These changes maintain the City's competitiveness in the marketplace, putting the City at a 108% market value or 8% above market value. There is also a 10% increase assumed for health, a 4% increase for dental Page 1 of 6